Aetna Life Insurance and Annuity Company
Endorsement
This Contract is endorsed as follows.
Add the following to Section I General Definitions:
Dollar Cost Averaging - A program that permits the Contract Holder to
systematically transfer amounts from any of the Funds and the one-year
AG Account Guaranteed Term to any of the Funds by completing the
appropriate section of the enrollment form or a Dollar Cost Averaging
election form.
Delete Section 1.19, Market Value Adjustment, and replace it with the following:
1.19 Market Value Adjustment - An adjustment that may apply to an
amount withdrawn or transferred from an AG Account Guaranteed
Term prior to the end of that Guaranteed Term. The adjustment
reflects the change in the value of the investment due to
changes in interest rates since the date of deposit and is
computed using the formula given in 3.05. The adjustment is
expressed as a percentage of each dollar withdrawn or
transferred.
Delete the first two paragraphs of Section 3.05, Market Value Adjustment, and
replace it with the following:
3.05 Market Value Adjustment - Except as noted below, there will be
an MVA for a withdrawal from the AG Account before the end of
a Guaranteed Term when the withdrawal is due to:
(a) A Transfer; except for Transfers from the one-year AG
Account Guaranteed Term under the Dollar Cost
Averaging program or, as specified in AG Account
Matured Term Value Transfer;
(b) A full or partial surrender (including a 10% free
withdrawal under 3.15), except for a partial
withdrawal under the Systematic Withdrawal Option
(see 3.10); or
(c) An election of Annuity option 2 (see 4.09).
Full and partial surrenders and Transfers made within six
months after the date of the Annuitant's death will be the
greater of:
(a) The aggregate MVA amount which is the sum of all
market value adjusted amounts calculated due to a
withdrawal of amounts. This total may be greater or
less than the Current Value of those amounts; or
IMPIREND(4/95)
(b) The applicable portion of the Current Value in the AG
Account.
Delete Section 3.06, Transfer of Current Value from the Funds or AG Account, and
replace it with the following:
3.06 Transfer of Current Value from the Funds or AG Account -
Before an Annuity option is elected, all or any portion of the
Adjusted Current Value of the Contract may be transferred from
any Fund or Guaranteed Term of the AG Account:
(a) To any other Fund; or
(b) To a Guaranteed Term of the AG Account available in the
current Deposit Period.
Transfer requests can be submitted as a percentage or as a
dollar amount. Aetna may establish a minimum transfer amount.
Within a Guaranteed Term Group, the amount to be surrendered
to transferred will be withdrawn first from the oldest Deposit
Period, then from the next oldest, and so on until the amount
requested is satisfied.
The Contract Holder may make an unlimited number of Transfers
during the Accumulation Period. The number of free Transfers
allowed by Aetna is shown on Contract Schedule I. Additional
Transfers may be subject to a Transfer fee as shown on
Contract Schedule I.
Amounts transferred from the AG Account under the Dollar Cost
Averaging program, or amounts transferred as a Matured Term
Value on or within one calendar month of the Term's Maturity
Date, do not count against the annual Transfer limit.
Amounts applied to Guaranteed Terms of the AG Account may not
be transferred to the Funds or to another Guaranteed Term
during the Deposit Period or for 90 days after the close of
the Deposit Period except for (1) a Matured Term Value(s)
during the calendar month following the Term's Maturity Date
and (2) amounts transferred from the one-year AG Account
Guaranteed Term under the Dollar Cost Averaging program.
Delete the first paragraph in Subsection 3.10(a), Estate Conservation Option
(ECO), and replace it with the following:
(a) Estate Conservation Option (ECO) - A distribution Option under
which a portion of the Current Value will be surrendered
automatically and distributed each year. ECO payments will be
calculated based on the Contract's full Current Value. The
distributed amount will be withdrawn pro rata from each
investment option used under the Contract. A Surrender Fee
will not be deducted from any portion of the Current Value
which is paid as a distribution under ECO. Contract Holders
should consult their tax advisor prior to requesting this
distribution option. Aetna will not be responsible for any
adverse tax consequences due to receiving ECO payments.
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Delete the first paragraph in Subsection 3.10(b), Systematic Withdrawal Option
(SWO), and replace it with the following:
(b) Systematic Withdrawal Option (SWO) - A distribution option
under which a portion of the Current Value will be surrendered
automatically and distributed each year. SWO payments will be
calculated based on the Contract's full Current Value. The
distributed amount will be withdrawn pro rata from each
investment option used under the Contract. A Surrender Fee
will not be deducted from any portion of the Current Value
which is paid as a distribution under SWO. Contract Holders
should consult their tax advisor prior to requesting this
distribution option. Aetna will not be responsible for any
adverse tax consequences due to receiving SWO payments.
Delete Section 3.11, Death Benefit Amount, and replace it with the following:
3.11 Death Benefit Amount - If the Contract Holder or Annuitant
dies before Annuity payments start, the Beneficiary is
entitled to a death benefit under the Contract. The claim date
is the date when proof of death and the Beneficiary's claim
are received in good order at Aetna's Home Office. The amount
of the death benefit is determined as follows:
(a) Death of Contract Xxxxxx/Annuitant less than 75 years
of age: The guaranteed death benefit is the greatest
of:
(1) The sum of all Net Purchase Payment(s) made
to the Contract (as of the date of death)
minus the sum of all amounts surrendered,
applied to an Annuity, or deducted from the
Contract;
(2) The highest step-up value as of the date of
death. A step-up value is determined on each
anniversary of the Effective Date. Each
step-up value is calculated as the
Contract's Current Value on the Effective
Date anniversary, increased by the amount of
any Purchase Payment(s) made, and decreased
by the sum of all amounts surrendered,
deducted, and/or applied to an Annuity
option since the Effective Date anniversary.
(3) The Contract's Current Value as of the date
of death.
The excess, if any, of the guaranteed death benefit
value over the Contract's Current Value is determined
as of the date of death. Any excess amount will be
deposited in the Contract and allocated to the Aetna
Variable Encore Fund as of the claim date. The
Current Value on the claim date, plus any excess
amount deposited, becomes the Contract's Current
Value.
(b) Death of Contract Holder/Annuitant age 75 or greater:
The death benefit amount is the greatest of:
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(1) The sum of all Net Purchase Payment(s) made
to the Contract (as of the date of death)
minus the sum of all amounts surrendered,
applied to an Annuity, or deducted from the
Contract;
(2) The highest step-up value prior to the
Contract Holder's 75th birthday. A step-up
value is determined on each anniversary of
the Effective Date. Each step-up value is
calculated as the Contract's Current Value
on the Effective Date anniversary, increased
by the amount of any Purchase Payment(s)
made, and decreased by the sum of all
amounts surrendered, deducted, and/or
applied to an Annuity option since the
Effective Date anniversary.
(3) The Contract's Current Value as of the date
of death.
The excess, if any, of the guaranteed death benefit
value over the Contract's Current Value is determined
as of the date of death. Any excess amount will be
deposited in the Contract and allocated to the Aetna
Variable Encore Fund as of the claim date. The
Current Value on the claim date, plus any excess
amount deposited, becomes the Contract's Current
Value.
(c) At the death of a surviving spouse Beneficiary who
continued the Contract in his or her own name, the
death benefit amount is equal to the Contract's
Current Value less any applicable Surrender Fee on
the amount of any Purchase Payment(s) made since the
death of the Contract Holder.
Delete Section 3.14, Liquidation of Surrender Value, and replace it with the
following:
3.14 Liquidation of Surrender Value - All or any portion of the
Contract's Current Value may be surrendered at any time.
Surrender requests can be submitted as a percentage of the
Current Value or as a specific dollar amount. Net Purchase
Payment amounts are withdrawn first, and then the excess
value, if any. For any partial surrender, amounts are
withdrawn on a pro rata basis from the Fund(s) and/or the
Guaranteed Term(s) Groups of the AG Account in which the
Current Value is invested. Within a Guaranteed Term Group, the
amount to be surrendered or transferred will be withdrawn
first from the oldest Deposit Period, then from the next
oldest, and so on until the amount requested is satisfied.
After deduction the Maintenance Fee, if applicable, the
surrendered amount shall be reduced by a Surrender Fee, if
applicable. An MVA may apply to amounts surrendered from the
AG Account.
Endorsed and made part of this Contract on the Effective Date of the Contract.
/s/ Xxx Xxxxxxx
President
AETNA LIFE INSURANCE AND ANNUITY COMPANY
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