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EXHIBIT B(4)(a)
The Northwestern Mutual Life Insurance Company agrees to pay the benefits
provided in this contract, subject to its terms and conditions.
Signed at Milwaukee, Wisconsin on the Issue Date.
(signed)
President and CEO Secretary
FLEXIBLE PAYMENT VARIABLE ANNUITY - ACCOUNT A
Net Purchase Payments accumulated in a Separate Account, assets of which are
invested in shares of one or more mutual funds, or Guaranteed Interest Fund.
Contract benefits payable in one sum or as variable
or guaranteed monthly income. Variable
Payment Plan benefits described in Section 11.
Participating.
AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DIVISIONS AND VARIABLE PAYMENTS
PROVIDED BY THIS CONTRACT ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT BUT ARE
VARIABLE AND MAY INCREASE OR DECREASE TO REFLECT THE INVESTMENT EXPERIENCE OF
THE SEPARATE ACCOUNT.
RIGHT TO RETURN CONTRACT. Please read this contract carefully. The Owner may
return the contract for any reason within ten days after receiving it. Return of
the contract is effective on the date written notice of the return is delivered,
mailed or sent by telegram to either The Northwestern Mutual Life Insurance
Company, 000 Xxxx Xxxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxx 00000 or the agent who
sold the contract. If returned, the contract will be cancelled and the Company
will refund the sum of (a) the difference between the Purchase Payments paid and
the amounts, if any, allocated to the Separate Account plus (b) the value of the
Accumulation Units of the Separate Account on the effective date of return.
CONTRACT NUMBER 12 345 678
PRIMARY ANNUITANT Xxxx X. Xxx
ISSUE DATE March 31, 2000 Sex Neutral
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TABLE OF CONTENTS
CONTRACT INFORMATION, INVESTMENT ACCOUNTS
CHARGES AND FEES
MINIMUM PURCHASE PAYMENTS, ACCUMULATION VALUE, PAYMENT PLANS
SECTION 1. GENERAL TERMS AND DEFINITIONS
SECTION 2. SEPARATE ACCOUNT
o Separate Account
o Accumulation Units
o Net Investment Factor
o Substitution and Change
SECTION 3. GUARANTEED INTEREST FUND
o Guaranteed Interest Fund
o Accumulation Value
o Transfer Restrictions
o Maximum Guaranteed Interest Fund Accumulation Value
o Table of Guaranteed Values
SECTION 4. PURCHASE PAYMENTS, TRANSFERS AND WITHDRAWALS
o Payment of Purchase Payments
o Application of Purchase Payments
o Selection of Investment Account for Purchase Payments
o Transfer of Accumulation Value
o Withdrawals and Full Surrender
o Effective Date
SECTION 5. BENEFITS
o Maturity Benefit
o Death Benefit if Annuitant is an Owner
o Death Benefit if Annuitant is not an Owner
SECTION 6. BENEFICIARIES AND CONTINGENT ANNUITANTS
o Naming and Changing of Beneficiaries
o Succession in Interest of Beneficiaries
o Trustee as Beneficiary
o General
o Naming and Changing a Contingent Annuitant
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SECTION 7. CHARGES AND FEES
o Sales Load and Premium Taxes
o Contract Fee
SECTION 8. OWNERSHIP
o The Owner
o Transfer of Ownership
o Naming and Changing a Successor Owner
o Collateral Assignment
o Voting Rights and Reports to Owners
SECTION 9. THE CONTRACT
o Guarantees
o Valuation of Separate Account Assets
o Determination of Separate Account Values
o Deferment of Benefit Payments
o Dividends
o Incontestability
o Misstatements
o Entire contract; Changes
o Termination of Contract.
SECTION 10. PAYMENT OF CONTRACT BENEFITS
o Payment of Benefits
o Death Benefit
o Effective Date for Payment Plan
o Payment Plan Elections
SECTION 11. PAYMENT PLANS
o Description of Payment Plans
o Allocation of Benefits
o Annuity Units under Variable Payment Plans
o Payments under Variable Payment Plans
o Transfers Involving Variable Payment Plans
o Withdrawal under Payment Plans
o Naming and Changing of Beneficiaries under Payment Plans
o Succession in Interest of Beneficiaries under Payment Plans
o Payment Plan Rates
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ADDITIONAL BENEFITS (IF ANY)
APPLICATION
ENDORSEMENTS
to be made only by the Company at the Home Office
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CONTRACT INFORMATION
CONTRACT NUMBER 12 345 678
PLAN Flexible Payment Variable Annuity
ADDITIONAL BENEFITS Enhanced Death Benefit
TAX REPORTING CATEGORY Pension Annuity
PRIMARY ANNUITANT Xxxx X. Xxx
AGE AND SEX 35 Male
OWNER Xxxx X. Xxx, the Annuitant
ISSUE DATE March 31,2000
CONTRACT ANNIVERSARY March 31, 2001 and each March 31
thereafter
MATURITY DATE March 31, 2050
DIRECT BENEFICIARY Xxxx X. Xxx, Wife of the Annuitant
INVESTMENT ACCOUNTS
On the Issue Date, Net Purchase Payments and contract values may be
allocated among the following Investment Accounts. Available Separate
Account Divisions are subject to change. See Section 2.1.
Divisions of Separate Account A:
Select Bond Division
International Equity Division
Money Market Division
Balanced Division
Index 500 Stock Division
Aggressive Growth Stock Division
High Yield Bond Division
Growth Stock Division
Growth and Income Stock Division
Index 400 Stock Division
Small Cap Growth Stock Division
Xxxxxxx Multi-Style Equity Division
Xxxxxxx Aggressive Equity Division
Xxxxxxx Non-US Division
Xxxxxxx Core Bond Division
Xxxxxxx Real Estate Securities Division
Guaranteed Accounts:
Guaranteed Interest Fund
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CONTRACT NUMBER 12 345 678
CHARGES AND FEES
DEDUCTION FROM PURCHASE PAYMENTS:
SALES LOAD (See Section 7.1)
Total Purchase Payments Amount Deducted
Paid Under the Contract From Purchase Payment
First $100,000 4.5%
Next $400,000 2.0%
Next $500,000 1.0%
Balance over $1,000,000 0.5%
PREMIUM TAX(See Section 7.1):
For the first Contract Year, Premium Taxes are not
deducted from Purchase Payments. After the first
Contract Year, the Company may deduct Premium Taxes
from Purchase Payments received or benefits paid.
ANNUAL MORTALITY AND EXPENSE RISK CHARGE (See Section 2.3):
0.50% at Issue; 0.75% Maximum
ANNUAL CONTRACT FEE (See Section 7.2):
$30 charged on the contract anniversary. The contract fee will
be waived if the Accumulation Value of the contract equals or
exceeds $25,000 on the contract anniversary.
ENHANCED DEATH BENEFIT CHARGE
0.10% of the Enhanced Death Benefit on each contract
anniversary.
TRANSFER FEE (See Sections 4.4 and 11.5):
$25 beginning with the thirteenth transfer in any Contract
Year.
MINIMUM PURCHASE PAYMENTS, ACCUMULATION VALUE, PAYMENT PLANS
MINIMUM PURCHASE PAYMENT (See Section 4.1): $25
MINIMUM ACCUMULATION VALUE (See Sections 5.2 and 9.9): $2,000
MINIMUM PAYMENT UNDER PAYMENT PLAN (See Sections 9.9 and 10.1): $50
Monthly Income.
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CONTRACT NUMBER 12 345 678
GUARANTEED INTEREST FUND - TABLE OF GUARANTEED VALUES
The table shows minimum guaranteed values and assumes a $10,000 Purchase Payment
made at the time of issue followed by subsequent $1,000 Purchase Payments made
annually thereafter on each contract anniversary. The values are based on the
assumption that 100% of all net Purchase Payments are allocated to, and remain
in, the Guaranteed Interest Fund.
End of
Contract Accumulation Cash
Year March 31 Value Value
1 2001 $ 9,836 $ 9,836
2 2002 11,084 11,084
3 2003 12,369 12,369
4 2004 13,693 13,693
5 2005 15,057 15,057
6 2006 16,461 16,461
7 2007 17,908 17,908
8 2008 19,398 19,398
Age 70 2035 82,877 82,877
This table is based on the guaranteed annual effective interest rate of 3%.
Higher declared rates of interest will increase values. Values shown at the end
of contract years do not reflect any Purchase Payments paid on that contract
anniversary. The actual guaranteed values may differ from those shown above,
depending on the amount and frequency of Purchase Payments.
Page 4A
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SECTION 1. GENERAL TERMS AND DEFINITIONS
ACCUMULATION UNIT A unit of measure used to determine the
value of the interest of this contract in
the Separate Account prior to the date on
which amounts are placed under a payment
plan.
ACCUMULATION VALUE The Accumulation Value of a Separate Account
Division is the total value of all
Accumulation Units in that Division. The
Accumulation Value of the Guaranteed
Interest Fund is the sum of amounts applied
to the fund, plus credited interest, less
amounts withdrawn or transferred from the
fund. The Accumulation Value of the contract
is the sum of the Accumulation Values of all
Investment Accounts.
ANNUITANT The Primary Annuitant and, upon the death of
the Primary Annuitant, the Contingent
Annuitant.
ANNUITY UNIT A unit of measure used to determine the
amount of variable payments under a variable
payment plan and the value of the interest
of a variable payment plan in the Separate
Account.
BENEFICIARIES The term "Beneficiaries" as used in this
contract includes direct beneficiaries,
contingent beneficiaries and further payees.
COMPANY The Northwestern Mutual Life Insurance
Company.
CONTINGENT ANNUITANT The person who becomes the Annuitant upon
the death of an Annuitant.
CONTRACT FEE An annual charge for administration expenses
made on each contract anniversary prior to
the Maturity Date.
CONTRACT YEAR The first Contract Year is the period of
time ending on the first contract
anniversary. Subsequent Contract Years are
the annual periods between contract
anniversaries.
DIVISION A component of the Separate Account to which
the Owner may allocate Net Purchase Payments
and contract values.
GUARANTEED INTEREST FUND The portion of the contract that is credited
with a guaranteed interest rate and which is
held as part of the general assets of the
Company.
HOME OFFICE The office of The Northwestern Mutual Life
Insurance Company located at 000 Xxxx
Xxxxxxxxx Xxxxxx, Xxxxxxxxx, XX 00000.
INVESTMENT ACCOUNT The Guaranteed Interest Fund and Separate
Account Divisions available for allocation
of Net Purchase Payments and contract
values. The available Investment Accounts
are listed on page 3.
ISSUE DATE The date this contract is issued and becomes
effective.
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MATURITY DATE The date upon which contract benefits will
become payable. If the contract is continued
in force under the Optional Maturity Date
provision, the Optional Maturity Date will
become the Maturity Date.
NET PURCHASE PAYMENT A Purchase Payment less all applicable
deductions. Deductions may include the Sales
Load and a Premium Tax.
OPTIONAL MATURITY DATE The contract anniversary nearest the
Annuitant's 90th birthday. Upon reaching the
Maturity Date shown on page 3, the Owner may
elect to continue the contract in force
until this Optional Maturity Date.
OWNER The person possessing the ownership rights
stated in this contract.
PORTFOLIOS Mutual funds or portfolios of mutual funds
in which the assets of the Separate Account
are invested.
PREMIUM TAX A tax imposed by a governmental entity when
Purchase Payments are received or benefits
are paid.
PRIMARY ANNUITANT The person upon whose life this contract is
initially issued.
PURCHASE PAYMENT A payment made by or on behalf of the Owner
with respect to this contract.
SALES LOAD A deduction made from Purchase Payments
received.
SEPARATE ACCOUNT NML Variable Annuity Account A. The Separate
Account consists of assets set aside by the
Company, the investment performance of which
is kept separate from that of the general
assets and all other separate account assets
of the Company.
SUCCESSOR OWNER The person designated to become the Owner
upon the death of the Owner, provided the
Owner was not the Annuitant at the time of
the Owner's death.
TRANSFER FEE A deduction that is made from the amount
transferred between Investment Accounts.
VALUATION DATE Any day on which the assets of the Separate
Account are valued. Assets are valued as of
the close of trading on the New York Stock
Exchange for each day the Exchange is open.
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SECTION 2. SEPARATE ACCOUNT
2.1 SEPARATE ACCOUNT
The Separate Account (NML Variable Annuity Account A) has been established by
the Company. The Separate Account consists of assets set aside by the Company,
the investment performance of which is kept separate from that of the general
assets and all other separate account assets of the Company. The assets of the
Separate Account will not be charged with liabilities arising out of any other
business the Company may conduct. Interests in the Separate Account are
represented by Accumulation Units and Annuity Units, described in Sections 2.2
and 11.3, respectively.
The Separate Account is comprised of the Divisions listed on page 3. The assets
allocated to these Divisions are invested in shares of the corresponding
Portfolios. Shares of the Portfolios are purchased for the Separate Account at
their net asset value.
The Company reserves the right to eliminate or add additional Divisions and
Portfolios.
2.2 ACCUMULATION UNITS
The interest of this contract in the Separate Account, prior to the date on
which amounts become payable under a payment plan, is represented by
Accumulation Units. The dollar value of Accumulation Units for each Division
will increase or decrease to reflect the investment experience of the Division.
The value of an Accumulation Unit on any Valuation Date is the product of:
o the value on the immediately preceding Valuation Date; and
o the Net Investment Factor for the period from the immediately
preceding Valuation Date up to and including the current Valuation
Date (the current period).
2.3 NET INVESTMENT FACTOR
For each Division of the Separate Account the Net Investment Factor for the
current period is one plus the net investment rate for that Division. The net
investment rate for the current period is equal to the gross investment rate for
the Division reduced on each Valuation Date by a Mortality and Expense Risk
Charge. The charge for these risks on the Issue Date is shown on page 4. The
Company may increase or decrease the charge after the Issue Date, but the
Company may not increase the charge to exceed the maximum charge shown on page
4.
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The gross investment rate for the current period for each Division is equal to
a. divided by b. where:
a. is:
o the investment income of the Division for the current period;
plus
o capital gains for the period, whether realized or unrealized, on
the assets of the Division; less
o capital losses for the period, whether realized or unrealized, on
the assets of the Division; less
o deduction for any tax liability paid or reserved for by the
Company resulting from the maintenance or operation of the
Division; and less
o any reasonable expenses paid or reserved for by the Company which
result from a substitution of other securities for shares of the
Portfolio(s) as set forth in Section 2.4; and
b. is the value of the assets in the Division on the immediately preceding
Valuation Date.
The gross investment rate may be positive or negative. The deduction for any tax
liability may be charged proportionately against those contracts to which the
liability is attributable by a reduction in the gross investment rate for those
contracts.
2.4 SUBSTITUTION AND CHANGE
Pursuant to the authority of the Board of Trustees of the Company:
o the assets of the Division may be invested in securities other than
shares of the Portfolio(s) as a substitute for those shares already
purchased or as the securities to be purchased in the future; and
o the provisions of the contracts may be modified to comply with any
other applicable federal or state laws.
In the event of a substitution or change, the Company may make appropriate
endorsement on this and other contracts having an interest in the Separate
Account and take other actions as may be necessary to effect the substitution or
change. Any such substitution or change will be subject to any required approval
of the Commissioner of Insurance for the state of Wisconsin, and filing with the
state in which this contract is issued.
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SECTION 3. GUARANTEED INTEREST FUND
3.1 GUARANTEED INTEREST FUND
Net Purchase Payments (see Section 4.2) and amounts transferred from other
Investment Accounts under this contract (see Section 4.4) may be applied to the
Guaranteed Interest Fund. Contract benefits placed under a variable payment plan
may not be applied to the Guaranteed Interest Fund. Amounts applied to the
Guaranteed Interest Fund become part of the general assets of the Company.
3.2 ACCUMULATION VALUE
The Accumulation Value of the Guaranteed Interest Fund is the sum of the amounts
applied to it, plus credited interest, less any amounts withdrawn or transferred
from the fund. Interest begins to accrue on the effective date of the Purchase
Payment or transfer (see Section 4.6).
Interest will be credited at an annual effective interest rate of not less than
3%. A higher rate may be declared by the Company from time to time for a period
set by the Company.
3.3 TRANSFER RESTRICTIONS
Transfers of Accumulation Value from the Guaranteed Interest Fund will not be
allowed for a period of 365 days following the most recent transfer of
Accumulation Value from the Guaranteed Interest Fund.
The maximum amount of the Accumulation Value that may be transferred from the
Guaranteed Interest Fund in one transfer is limited to the greater of:
o 25% of the Accumulation Value of the Guaranteed Interest Fund on the
last contract anniversary preceding the transfer; and
o the amount of the most recent transfer from the Guaranteed Interest
Fund.
However, in no event will this maximum transfer amount be less than $1,000 or
greater than $50,000.
Transfers of Accumulation Value into the Guaranteed Interest Fund will not be
allowed for a period of 90 days following the most recent transfer of
Accumulation Value from the Guaranteed Interest Fund.
3.4 MAXIMUM GUARANTEED INTEREST FUND ACCUMULATION VALUE
The Accumulation Value of the Guaranteed Interest Fund may not exceed $1,000,000
without prior consent of the Company, except when the maximum is exceeded
because of interest accruing to the Guaranteed Interest Fund.
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3.5 TABLE OF GUARANTEED VALUES
Accumulation and cash values are shown on page 4A. The values are based on the
assumptions stated on page 4A and are for the end of the contract years shown.
Values for contract years not shown are calculated on the same basis as those
shown on page 4A. Guaranteed values are at least as great as those required by
the state in which this contract is delivered.
SECTION 4. PURCHASE PAYMENTS, TRANSFERS, WITHDRAWALS
4.1 PAYMENT OF PURCHASE PAYMENTS
All Purchase Payments are payable at the Home Office or to an authorized agent.
A receipt signed by an officer of the Company will be furnished on request.
Purchase Payments may be made at any time prior to the death of an Owner and
prior to the Maturity Date. Purchase Payments may be made after the death of an
Owner only if the new Owner of the contract is the surviving spouse of the
deceased Owner. The Owner may vary the amount of Purchase Payments, but no
Purchase Payment may be less than the Minimum Purchase Payment shown on page 4.
Total Purchase Payments may not exceed $5,000,000 without the consent of the
Company.
The Company will not accept any Purchase Payment under Section 4 unless it is a
contribution under a pension or profit sharing plan which meets the requirements
of Section 401 of the Internal Revenue Code of 1954, as amended, or the
requirements for deduction of the employer's contribution under Section 404
(a)(2) of such code.
4.2 APPLICATION OF PURCHASE PAYMENTS
Each Purchase Payment, net of the Sales Load and Premium Taxes, will be applied
to one or more Investment Accounts. Net Purchase Payments applied to the
Guaranteed Interest Fund will accrue interest from the effective date of the
Purchase Payment. Net Purchase Payments applied to the Separate Account will
provide Accumulation Units in one or more Divisions. Accumulation Units are
credited as of the effective date of the Net Purchase Payment.
The number of Accumulation Units will be determined by dividing the Net Purchase
Payment by the value of an Accumulation Unit on the effective date. This number
of Accumulation Units will not be changed by any subsequent change in the dollar
value of Accumulation Units.
4.3 SELECTION OF INVESTMENT ACCOUNT FOR PURCHASE PAYMENTS
The Owner may change the allocation of Net Purchase Payments among the
Investment Accounts by written notice to the Company. Net Purchase Payments
received at the Home Office on or after the date on which notice is received
will be applied to the designated Investment Accounts on the basis of the new
allocation.
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4.4 TRANSFER OF ACCUMULATION VALUE
Before the Maturity Date the Owner may, on request satisfactory to the Company,
transfer amounts from one Investment Account to another, subject to the transfer
restrictions described in Section 3.3.
For transfers among the Separate Account Divisions, the number of Accumulation
Units to be applied or deducted will be adjusted to reflect the respective value
of the Accumulation Units in each of the Divisions on the date the transfer is
effective.
For transfers from the Guaranteed Interest Fund, amounts closest to expiration
of an interest rate guarantee will be removed first. In the event that two
amounts are equally close to expiration, the one which was applied to the
Guaranteed Interest Fund earlier will be removed first.
A Transfer Fee may be deducted from the amount transferred. The maximum amount
of the Transfer Fee is shown on page 4. The minimum amount which may be
transferred is the lesser of $100 or the entire Accumulation Value of the
Investment Account from which the transfer is being made.
4.5 WITHDRAWALS AND FULL SURRENDER
Before the Maturity Date the Owner may, on request satisfactory to the Company,
withdraw all or a portion of the Accumulation Value of the contract. The Company
may require that the Minimum Accumulation Value shown on page 4 remain after a
partial withdrawal. Withdrawal of the entire value of the contract constitutes a
full surrender, and receipt of the contract at the Home Office will terminate
this contract. Receipt of the contract may be waived by the Company.
The cash value of the amount withdrawn will be the Accumulation Value withdrawn
determined as of the date the withdrawal is effective.
The term "withdrawal amounts" as used in this contract includes amounts paid as
full surrenders and withdrawals of a portion of the Accumulation Value of the
contract.
For withdrawals from the Guaranteed Interest Fund, amounts closest to expiration
of an interest rate guarantee will be removed first. In the event that two
amounts are equally close to expiration, the one which was applied to the
Guaranteed Interest Fund earlier will be removed first.
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4.6 EFFECTIVE DATE
The effective date of a Purchase Payment, transfer, or withdrawal is the
Valuation Date on which the Purchase Payment or the request for transfer or
withdrawal is received at the Home Office. However, the Purchase Payment,
transfer, or withdrawal will be effective on the following Valuation Date if the
Purchase Payment, request for transfer or withdrawal is received at the Home
Office either:
o on a Valuation Date after the close of trading on the New York Stock
Exchange; or
o on a day on which the New York Stock Exchange is closed.
SECTION 5. BENEFITS
5.1 MATURITY BENEFIT
MATURITY OPTIONS. If the Annuitant is living on the Maturity Date shown on page
3, and that Maturity Date is earlier than the contract anniversary nearest the
Annuitant's 90th birthday, the Owner may elect between the following maturity
options:
o payment of a monthly income under a payment plan chosen by the Owner;
or
o deferral of the maturity benefit and continuation of this contract to
the Optional Maturity Date. The contract will continue under this
option if a written election for this purpose is received by the
Company or if on the Maturity Date shown on page 3, the Owner has not
chosen a payment plan.
If the Annuitant is living on the Maturity Date and that Maturity Date is on or
after the contract anniversary nearest the Annuitant's 90th birthday, the
Company will pay a monthly income under a payment form chosen by the Owner.
PAYMENT OF MATURITY BENEFIT. The amount of the monthly income paid as the
maturity benefit will depend on the payment plan chosen (see Section 11) and the
maturity value. The maturity value of this contract will be the Accumulation
Value of the contract on the effective date of the maturity benefit. The
maturity benefit will be effective on the Maturity Date. However, if the New
York Stock Exchange is closed on the Maturity Date, the effective date will be
the Valuation Date next preceding the Maturity Date.
If no payment form is chosen at the time a monthly income becomes payable,
payments will be made under the variable payment form of Life Income Plan
(Option C), with installments certain for ten years, as described in Section
11.1.
OPTIONAL MATURITY DATE. The Optional Maturity Date is the contract anniversary
nearest the Annuitant's 90th birthday. If the contract is continued to the
Optional Maturity Date, all contract rights of the Owner will continue in effect
to the Optional Maturity Date. The Optional Maturity Date will become the
Maturity Date for all other purposes of this contract.
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5.2 DEATH BENEFIT IF ANNUITANT IS AN OWNER
If the Annuitant is an Owner, the beneficiary becomes entitled to the Death
Benefit upon receipt at the Home Office of satisfactory proof of the death of
the Annuitant before the Maturity Date. The Death Benefit will be the
Accumulation Value of the contract determined on the effective date. The
effective date is the date on which proof of death is received at the Home
Office. However, the effective date will be the next following Valuation Date if
the proof of death is received at the Home Office either:
o on a Valuation Date after the close of trading on the New York Stock
Exchange; or
o on a day on which the New York Stock Exchange is closed.
If the beneficiary becomes entitled to the Death Benefit due to the death of the
Primary Annuitant prior to the Primary Annuitant's 75th birthday, the Death
Benefit will not be less than:
o total Net Purchase Payments paid under the contract; less
o any amounts withdrawn under Section 4.5.
As of the effective date, the Accumulation Value of the contract will be set at
an amount equal to the Death Benefit. Unless a payment plan was elected by the
Owner, the beneficiary automatically becomes the Owner and Annuitant of the
contract. However, if the beneficiary is not a natural person and no payment
plan was elected by the Owner, the beneficiary may select a natural person to be
the Annuitant. If a natural person is not selected to be the Annuitant within 60
days of the date on which proof of death of the Annuitant is received at the
Home Office, the Accumulation Value will be distributed to the beneficiary.
If a beneficiary becomes entitled to the Death Benefit in an amount less than
the Minimum Accumulation Value shown on page 4, the Accumulation Value will be
distributed to the beneficiary.
The cash value of any amount distributed will be the Accumulation Value
withdrawn as of the date of withdrawal as determined in Section 4.6.
5.3 DEATH BENEFIT IF ANNUITANT IS NOT AN OWNER
If the Annuitant is not an Owner, upon the death of the Annuitant the contract
continues with the Contingent Annuitant (Section 6.5) as the new Annuitant. The
Death Benefit will be the Accumulation Value of the contract determined on the
effective date. The effective date is the date on which proof of death is
received at the Home Office. However, the effective date will be the next
following Valuation Date if the proof of death is received at the Home Office
either:
o on a Valuation Date after the close of trading on the New York Stock
Exchange; or
o on a day on which the New York Stock Exchange is closed.
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If the Primary Annuitant dies prior to the Primary Annuitant's 75th birthday,
the Death Benefit will not be less than:
o total Net Purchase Payments paid under the contract; less
o any amounts withdrawn under Section 4.5.
As of the effective date the Accumulation Value of the contract will be set at
an amount equal to the Death Benefit.
SECTION 6. BENEFICIARIES AND CONTINGENT ANNUITANTS
6.1 NAMING AND CHANGING OF BENEFICIARIES
FOR MATURITY BENEFITS OR WITHDRAWALS BY OWNER. The Owner may name and change the
beneficiaries of maturity benefits or withdrawal amounts before the Maturity
Date. If no beneficiary is named by the Owner, the Owner will be the direct
beneficiary.
FOR DEATH BENEFITS BY OWNER. The Owner may name and change the beneficiaries of
the Death Benefits while the Annuitant is living. If no such beneficiary is
named by the Owner, the Owner or the Owner's estate will be the direct
beneficiary.
FOR MATURITY OR DEATH BENEFITS OR WITHDRAWAL AMOUNTS BY SPOUSE (MARITAL
DEDUCTION PROVISION).
o POWER TO APPOINT. The spouse of the Annuitant will have the power alone
and in all events to appoint all amounts payable to the spouse under
the contract if:
a. just before the Annuitant's death, the Annuitant was the Owner; and
b. the spouse is a direct beneficiary; and
c. the spouse survives the Annuitant.
o TO WHOM SPOUSE CAN APPOINT. Under this power, the spouse can appoint:
a. to the estate of the spouse; or
b. to any other person.
o EFFECT OF EXERCISE. As to the amounts appointed, the exercise of this
power will:
a. revoke any other designation of beneficiaries;
b. revoke any election of payment plan as it applies to them; and
c. cause any provision to the contrary in Section 6 or 10 of this
contract to be of no effect.
EFFECTIVE DATE. A naming or changing of a beneficiary will be effective on
receipt at the Home Office of a written request that is acceptable to the
Company. The request will then take effect as of the date that it was signed.
The Company is not responsible for any payment or other action that is taken by
it before the receipt of the request. The Company may require that the contract
be sent to it to be endorsed to show the naming or change.
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6.2 SUCCESSION IN INTEREST OF BENEFICIARIES
The rights and benefits that a beneficiary becomes entitled to under the
contract are shared equally among all surviving direct beneficiaries, if any,
otherwise equally among all surviving contingent beneficiaries, if any,
otherwise to the Owner or the Owner's Estate.
6.3 TRUSTEE AS BENEFICIARY
If a trustee is named as a beneficiary and no qualified trustee makes claim to
the proceeds, or to the present value of any unpaid payments under a payment
plan, within one year after payment becomes due to the trustee, or if
satisfactory evidence is furnished to the Company within that year showing that
no trustee can qualify to receive payment, payment will be made as though the
trustee had not been named.
The Company will be fully discharged of liability for any action taken by the
trustee and for all amounts paid to, or at the direction of, the trustee and
will have no obligation as to the use of the amounts. In all dealings with the
trustee the Company will be fully protected against the claims of every other
person. The Company will not be charged with notice of a change of trustee
unless written evidence of the change is received at the Home Office.
6.4 GENERAL
TRANSFER OF OWNERSHIP. A transfer of ownership of itself will not change the
interest of a beneficiary.
CLAIMS OF CREDITORS. So far as allowed by law, no amount payable under this
contract will be subject to the claims of creditors of a beneficiary.
6.5 NAMING AND CHANGING A CONTINGENT ANNUITANT
The Owner may name and change a Contingent Annuitant while the Annuitant is
living.
If the Annuitant was not the Owner immediately prior to the Annuitant's death,
the Owner may name and change a Contingent Annuitant during the first 60 days
after the date on which proof of death of the Annuitant is received at the Home
Office. A change made during this 60 days cannot be revoked. If no one is named
as Contingent Annuitant by the end of the 60 day time period, the Company will
pay the Accumulation Value to the Owner. The cash value of any amount
distributed will be the Accumulation Value withdrawn as of the date of
withdrawal as determined in Section 4.6.
A naming or changing of a Contingent Annuitant will be effective on receipt at
the Home Office of a written request that is acceptable to the Company.
19
SECTION 7. CHARGES AND FEES
7.1 SALES LOAD AND PREMIUM TAXES
The Company will deduct the Sales Load shown on page 4 from Purchase Payments
received. The Company may also deduct Premium Taxes incurred from Purchase
Payments received.
7.2 CONTRACT FEE
On each contract anniversary prior to the Maturity Date, a Contract Fee will be
charged for administrative expenses. The amount of the Contract Fee is shown on
page 4. The Contract Fee will be deducted from the Investment Accounts in
proportion to the Accumulation Value of the Investment Accounts.
The Contract Fee deducted from the Guaranteed Interest Fund will not exceed the
sum of:
o 10% of the gross purchase payments applied to the Guaranteed Interest Fund
during the contract year; and
o interest in excess of an annual effective interest rate of 3% credited to
the Guaranteed Interest Fund during the contract year.
The effective date of the Contract Fee will be the contract anniversary.
However, if the New York Stock Exchange is closed on the contract anniversary,
the effective date will be the next following Valuation Date.
20
SECTION 8. OWNERSHIP
8.1 THE OWNER
The Owner is named on page 3. All contract rights may be exercised by the Owner,
the Owner's successor, or the Owner's transferee without the consent of any
beneficiary.
If the contract has more than one Owner, contract rights may be exercised only
by authorization of all Owners. Upon the death of an Owner, ownership rights of
all Owners terminate if the deceased Owner was the Annuitant.
8.2 TRANSFER OF OWNERSHIP
The Owner may transfer the ownership of this contract. Written proof of transfer
satisfactory to the Company must be received at its Home Office. The transfer
will then take effect as of the date it was signed. The Company may require that
the contract be sent to it for endorsement to show the transfer. The Company
will not be responsible to a transferee Owner for any payment or other action
taken by the Company before receipt of the proof of transfer at its Home Office.
8.3 NAMING AND CHANGING A SUCCESSOR OWNER
An Owner may name and change a Successor Owner. Naming or changing a Successor
Owner will be effective on receipt at the Home Office of a written request for
such change that is acceptable to the Company. A Successor Owner succeeds to the
interests of an Owner only if the Owner was not the Annuitant at the time of the
Owner's death.
8.4 COLLATERAL ASSIGNMENT
The Owner may assign this contract as collateral security. The Company is not
responsible for the validity or effect of a collateral assignment. The Company
will not be responsible to an assignee for any payment or other action taken by
the Company before receipt of the assignment in writing at its Home Office.
The interest of any beneficiary will be subject to any collateral assignment
made either before or after the beneficiary is named.
A collateral assignee is not an Owner. A collateral assignment is not a transfer
of ownership. Ownership can be transferred only by complying with Section 8.2.
8.5 REPORTS TO OWNERS
At least once each Contract Year, the Company will send to the Owner or
beneficiary a statement of the Accumulation Values of the Investment Accounts,
the number of units credited to the contract, the dollar value of a unit as of a
date not more than two months previous to the date of mailing, and a statement
of the investments held by the Separate Account.
21
8.6 TRANSFERABILITY RESTRICTIONS
Notwithstanding any other provisions of this contract, the Owner may not:
o change the ownership of the contract; or
o sell the contract, or assign or pledge the contract as collateral for a
loan or as security for the performance of an obligation or for any other
purpose, to any person other than the Company.
These restrictions will not apply if the Owner is:
o the trustee of an employee trust that is qualified under the Internal
Revenue Code; or
o the custodian of a custodial account treated as an employee trust that is
qualified under the Internal Revenue Code.
The restrictions do not preclude the employer under a nontrusteed plan from
transferring ownership of this contract to the Annuitant or to the employer or
trustee under another plan or trust when required by the plan.
SECTION 9. THE CONTRACT
9.1 GUARANTEES
The Company guarantees that mortality and expense results will not adversely
affect the amount of variable payments.
9.2 VALUATION OF SEPARATE ACCOUNT ASSETS
The value of the shares of each Portfolio held in the Separate Account on each
Valuation Date will be the redemption value of the shares on that date. If the
right to redeem shares of a Portfolio has been suspended, or payment of the
redemption value has been postponed, the shares held in the Separate Account
(and Annuity Units) may be valued at fair value as determined in good faith by
the Board of Trustees of the Company for the sole purpose of computing annuity
payments.
9.3 DETERMINATION OF SEPARATE ACCOUNT VALUES
The method of determination by the Company of the Net Investment Factor, and the
number and value of Accumulation Units and Annuity Units, will be conclusive
upon the Owner, any assignee, the Annuitant, and any beneficiary.
22
9.4 DEFERMENT OF BENEFIT PAYMENTS
SEPARATE ACCOUNT DIVISIONS. The Company reserves the right to defer
determination of the contract values of the Separate Account portion of this
contract, or the payment of benefits under a variable payment plan, until after
the end of any period during which the right to redeem shares of a Portfolio is
suspended, or payment of the redemption value is postponed. Any deferment would
be in accordance with the provisions of the Investment Company Act of 1940 by
reason of closing of, or restriction of trading on, the New York Stock Exchange,
or other emergency, or as otherwise permitted by the Act. In addition, the
Company reserves the right to defer payment of contract values until seven days
after the end of any deferment in the determination of contract values.
GUARANTEED INTEREST FUND. The Company may defer paying contract values of the
Guaranteed Interest Fund for up to six months from the effective date of the
withdrawal or full surrender. If payment is deferred for 30 days or more,
interest will be paid on the withdrawal amounts at an annual effective rate of
3% from the effective date of the withdrawal or surrender to the date of the
payment.
9.5 DIVIDENDS
This contract will share in the divisible surplus of the Company, except while
payments are being made under a variable payment plan. This surplus will be
determined each year, and the dividend, if any, will be credited on the contract
anniversary. Any dividend credited prior to the Maturity Date will be applied on
the effective date as a Net Purchase Payment unless the Owner elects to have the
dividend paid in cash. The effective date of the dividend will be the contract
anniversary. However, if the New York Stock Exchange is closed on the contract
anniversary, the effective date will be the next following Valuation Date.
Since this policy is not expected to contribute to divisible surplus, it is not
expected that any dividends will be paid.
9.6 INCONTESTABILITY
The Company will not contest this contract after it has been in force during the
lifetime of the Annuitant for two years from the Issue Date. This Issue Date is
shown on page 3.
9.7 MISSTATEMENTS
If the age or sex of the Annuitant has been misstated, the amount payable will
be the amount which the Purchase Payments paid would have purchased at the
correct age and sex. If any amounts have been overpaid by the Company due to a
misstatement of age or sex, the amount of the overpayment may be deducted from
payments to be made by the Company. If any amounts have been underpaid by the
Company due to a misstatement of age or sex, the amount of the underpayment will
be paid.
9.8 ENTIRE CONTRACT; CHANGES
This contract with any amendments and additional benefits and the attached
application is the entire contract. Statements in the application are
representations and not warranties. A change in the contract is valid only if it
is approved by an officer of the Company. The Company may require that the
contract be sent to it for endorsement to show a change. No agent has the
authority to change the contract or to waive any of its terms.
All payments by the Company under this contract are payable at its Home Office.
23
Assets of the Separate Account are owned by the Company and the Company is not a
trustee with respect thereto. The company may from time to time adjust the
amount of assets contained in the Separate Account, by periodic withdrawals or
additions, to reflect the contract deductions and the Company's reserves for
this and other similar contracts.
This contract is subject to the laws of the state in which it is delivered. All
benefits are at least as great as those required by that state.
9.9 TERMINATION OF CONTRACT
The Company may terminate the contract and pay the Owner the Accumulation Value
of the contract and be released of any further obligation if:
o prior to the Maturity Date no Purchase Payments have been received
under the contract for a period of two full years and each of the
following is less than the Minimum Accumulation Value shown on page 4:
a. the Accumulation Value of the contract; and
b. total Purchase Payments paid under the contract, less any
amounts withdrawn under Section 4.5; or
o on the Maturity Date the Accumulation Value of the contract is less
than the Minimum Accumulation Value shown on page 4 or would provide
an initial monthly income which is less than the minimum payment
amount shown on page 4.
SECTION 10. PAYMENT OF CONTRACT BENEFITS
10.1 PAYMENT OF BENEFITS
All or part of the contract benefits may be paid under one or more of the
following:
o a variable payment plan;
o a fixed payment plan; or
o in cash.
The provisions and rates for variable and fixed payment plans are described in
Section 11. Contract benefits may not be placed under a payment plan unless the
plan would provide to each beneficiary an initial monthly income of at least the
minimum payment amount shown on page 4.
24
10.2 DEATH BENEFIT
A beneficiary entitled to the Death Benefit upon the death of an Annuitant may
elect to receive the Accumulation Value under a payment plan or in cash provided
no payment plan was elected by the Owner. The cash value of any amount
distributed will be the Accumulation Value withdrawn as of the date of
withdrawal as determined in Section 4.6.
10.3 EFFECTIVE DATE FOR PAYMENT PLAN
A payment plan that is elected for maturity benefits will take effect on the
Maturity Date.
If the Annuitant is an Owner , a payment plan that is elected by the Owner for
the Death Benefit will take effect on the date proof of death of the Annuitant
is received at the Home Office.
In all other cases, a payment plan that is elected will take effect:
o on the date the election is received at the Home Office; or
o on a later date, if requested.
10.4 PAYMENT PLAN ELECTIONS
FOR DEATH BENEFITS BY OWNER. The Owner may elect payment plans for death
benefits while the Annuitant is living.
FOR MATURITY BENEFITS OR WITHDRAWAL AMOUNTS. The Owner may elect payment plans
for maturity benefits or withdrawal amounts.
TRANSFER BETWEEN PAYMENT PLANS. A beneficiary who is receiving payment under a
payment plan which includes the right to withdraw may transfer the amount
withdrawable to any other payment plan that is available.
SECTION 11. PAYMENT PLANS
11.1 DESCRIPTION OF PAYMENT PLANS
INSTALLMENT INCOME FOR SPECIFIED PERIOD (OPTION B)
The Company will make monthly installment income payments providing for payment
of benefits over a specified period of 10 to 30 years during the first five
contract years and over a specified period of 5 to 30 years beginning with the
sixth contract year.
LIFE INCOME PLANS
o SINGLE LIFE INCOME (OPTION C). The Company will make monthly payments
for the selected certain period, if any, and thereafter during the
remaining lifetime of the individual upon whose life income payments
depend. The selections available are: (a) no certain period; or (b) a
certain period of 10 or 20 years.
o JOINT AND SURVIVOR LIFE INCOME (OPTION E). The Company will make
monthly payments for a 10-year certain period and thereafter during
the joint lifetime of the two individuals upon whose lives income
payments depend and continuing during the remaining lifetime of the
survivor.
o OTHER SELECTIONS. The Company may offer other selections under the
Life Income Plans.
25
o LIMITATIONS. A direct or contingent beneficiary who is a natural
person may be paid under a Life Income Plan only if the payments
depend on that beneficiary's life. A corporation may be paid under a
Life Income Plan only if the payments depend on the life of the
Annuitant or, after the death of the Annuitant, on the life of the
Annuitant's spouse or dependent.
These payment plans are available on either a fixed or variable basis. Under a
fixed payment plan the payment remains level. Under a variable payment plan the
payment will increase or decrease as described in Section 11.4.
11.2 ALLOCATION OF BENEFITS
Upon election of a variable payment plan, the Owner or direct or contingent
beneficiary may select the allocation of variable benefits among the Divisions.
If no selection is made, the allocation of benefits will be as follows:
o for amounts in the Separate Account Divisions, benefits will be
allocated in proportion to the Accumulation Value of each Division on
the effective date of the variable payment plan; and
o for amounts in the Guaranteed Interest Fund, benefits will be
allocated 100% to the Money Market Division.
11.3 ANNUITY UNITS UNDER VARIABLE PAYMENT PLANS
The interest of this contract in the Separate Account after the effective date
of a variable payment plan is represented by Annuity Units.
The dollar value of Annuity Units for each Division will increase or decrease to
reflect the investment experience of the Division. The value of an Annuity Unit
on any Valuation Date is the product of:
o the Annuity Unit value on the immediately preceding Valuation Date;
o the Net Investment Factor for the period from the immediately
preceding Valuation Date up to and including the current Valuation
Date (the current period); and
o the Daily Adjustment Factor of .99990575 raised to a power equal to
the number of days in the current period to reflect the Assumed
Investment Rate of 3 1/2% used in calculating the monthly payment
rate.
11.4 PAYMENTS UNDER VARIABLE PAYMENT PLANS
FIRST PAYMENT. The first payment under a variable payment plan will be due as of
the effective date of the payment plan.
The amount of the first payment is the sum of payments from each Division, each
determined by multiplying the benefits allocated to the Division under the
variable payment plan by the applicable monthly variable payment rate per $1,000
of benefits.
NUMBER OF ANNUITY UNITS. The number of Annuity Units in each Division under a
variable payment plan is determined by dividing the amount of the first payment
payable from the Division by the Annuity Unit value for the Division at the
close of business on the effective date of the variable payment plan. The number
of Annuity Units will not be changed by any subsequent change in the dollar
value of Annuity Units.
26
SUBSEQUENT VARIABLE PAYMENTS. The amount of each subsequent payment from each
Division under a variable payment plan will increase or decrease in accord with
the increase or decrease in the value of an Annuity Unit which reflects the
investment experience of that Division of the Separate Account.
The amount of subsequent variable payments is the sum of payments from each
Division, each determined by multiplying the fixed number of Annuity Units for
the Division by the value of an Annuity Unit for the Division on:
o the fifth Valuation Date prior to the payment due date if the payment
due date is a Valuation Date; or
o the sixth Valuation Date prior to the payment due date if the payment
due date is not a Valuation Date.
11.5 TRANSFERS INVOLVING VARIABLE PAYMENT PLANS
A beneficiary receiving payments under a variable payment plan may transfer
Annuity Units from one Division to another. The number of Annuity Units in each
Division will be adjusted to reflect the respective value of the Annuity Units
in the Divisions on the date the transfer is effective.
A Transfer Fee may be deducted from the amount transferred. The amount of the
Transfer Fee is shown on page 4. Transfers from the Money Market Division may be
made at any time. No transfer from the other Divisions may be made within 90
days of the effective date of a variable payment plan or within 90 days from the
effective date of the last transfer.
A payee or joint payees receiving payments under a variable payment plan may
transfer from an Installment Income Plan (Option B) to either form of the Life
Income Plan (Option C or E). Other transfers may be permitted subject to
conditions set by the Company.
A transfer will be effective on the Valuation Date on which a satisfactory
transfer request is received in the Home Office, or a later date if requested.
However, the transfer will be effective on the following Valuation Date if the
request is received at the Home Office either:
o on a Valuation Date after the close of trading on the New York Stock
Exchange; or
o on a day on which the New York Stock Exchange is closed.
11.6 WITHDRAWAL UNDER PAYMENT PLANS
Withdrawal of the present value of any unpaid income payments may be elected at
any time by the beneficiary, except that withdrawal may not be elected under a
Life Income Plan (Option C or E) until the death of all individuals upon whose
lives income payments depend.
The withdrawal value under the Installment Income Plan (Option B) will be the
present value of any unpaid payments. The withdrawal value under a Life Income
Plan (Option C or E) will be the present value of any unpaid payments for the
certain period.
For a fixed payment plan, the present value of any unpaid income payments will
be based on the rate of interest used to determine the amount of the payments.
For a variable payment plan, the present value of any unpaid income payments
will be based on interest at the Assumed Investment Rate used in calculating the
amount of the variable payments. The amount of variable payments used in
calculating the present value of unpaid payments will be determined by
multiplying the number of Annuity Units by the value of an Annuity Unit on the
effective date of withdrawal.
27
A withdrawal will be effective on the Valuation Date on which the request is
received in the Home Office. However, the withdrawal will be effective on the
following Valuation Date if the request is received at the Home Office either:
o on a Valuation Date after the close of trading on the New York Stock
Exchange; or
o on a day on which the New York Stock Exchange is closed.
11.7 NAMING AND CHANGING OF BENEFICIARIES UNDER PAYMENT PLANS
FOR PAYMENT PLANS ELECTED BY OWNER. If the Owner of the contract elected a
payment plan, a direct beneficiary may name and change the contingent
beneficiaries and further payees of the direct beneficiary's share of the
benefits only if:
o the direct beneficiary was the Owner of the contract; or
o no contingent beneficiary or further payee of that share is living.
FOR PAYMENT PLANS ELECTED BY DIRECT BENEFICIARY. If the direct beneficiary
elected the payment plan, the direct beneficiary may name and change the
contingent beneficiaries and further payees of the direct beneficiary's share of
the benefits.
11.8 SUCCESSION IN INTEREST OF BENEFICIARIES UNDER PAYMENT PLANS
DIRECT BENEFICIARY. Amounts payable under a payment plan will be payable to the
direct beneficiary.
CONTINGENT BENEFICIARIES. At the death of the direct beneficiary, the present
value of any unpaid payments under a payment plan, will be payable in equal
shares to the contingent beneficiaries who survive and receive payment. If a
contingent beneficiary dies before receiving all or part of the contingent
beneficiary's full share, the unpaid portion will be payable in equal shares to
the other contingent beneficiaries who survive and receive payment.
FURTHER PAYEES. At the death of all direct and contingent beneficiaries, the
present value of any unpaid payments under a payment plan, will be paid in one
sum:
o In equal shares to the further payees who survive and receive payment;
or
o If no further payees survive and receive payment, to the estate of the
last to die of all beneficiaries.
11.9 PAYMENT PLAN RATES
PAYMENT RATE TABLES. The guaranteed monthly payment rates for both a fixed
payment plan and the first payment under a variable payment plan are shown in
the Payment Rate Tables. The tables show rates for the Installment Income Plan
for a Specified Period (Option B) and Life Income Plans (Options C and E). Life
Income Plan (Option C or E) rates are based on the sex and adjusted age of any
individual upon whose life payments depend. The adjusted age is:
o the age on the birthday that is nearest to the date on which the
payment plan takes effect; plus
o the age adjustment shown below for the number of Contract Years that
have elapsed from the Issue Date to the date that the payment plan
takes effect. A part of a Contract Year is counted as a full year.
28
CONTRACT YEARS CONTRACT YEARS
ELAPSED AGE ADJUSTMENT ELAPSED AGE ADJUSTMENT
1 to 8 0 33 to 40 -4
9 to 16 -1 41 to 48 -5
17 to 24 -2 49 or more -6
25 to 32 -3
CURRENT FIXED PAYMENT PLAN RATES
o INSTALLMENT INCOME FOR SPECIFIED PERIOD (OPTION B). The Company may
offer fixed payment plan rates higher than those guaranteed in this
contract with conditions on withdrawal.
o LIFE INCOME PLANS (OPTION C OR E). Payments will be based on rates
declared by the Company that will not be less than the rates guaranteed
in this contract. The declared rates will provide at least as much
income as would the Company's rates, on the date that the payment plan
takes effect, for a single premium immediate annuity contract.
ALTERNATE VARIABLE RATE BASIS. The Company may from time to time publish higher
initial rates for variable payment plans under this contract. These higher rates
will not be available to increase payments under payment plans already in
effect.
When a variable payment plan is effective on an alternate rate basis, the Daily
Adjustment Factor described in Section 11.3 will be determined based on the
Assumed Investment Rate used in calculating the alternate payment rate.
29
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
INSTALLMENT INCOME PLANS (OPTION B)
-------------------------------------------------------------------------------------------------------------
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
------------------- ----------------- ----------------- ----------------- ----------------- ------------------
Years 1-4 11 $ 9.09 21 $ 5.56
Not Available 12 8.46 22 5.39
13 7.94 23 5.24
14 7.49 24 5.09
5 18.12 15 7.10 25 4.96
6 15.35 16 6.76 26 4.84
7 13.38 17 6.47 27 4.73
8 11.90 18 6.20 28 4.63
9 10.75 19 5.97 29 4.53
10 9.83 20 5.75 30 4.45
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
GUARANTEED FIXED PAYMENT PLANS
INSTALLMENT INCOME PLANS (OPTION B)
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Years 1-4 11 $ 8.42 21 $ 4.85
Not Available 12 7.80 22 4.67
13 7.26 23 4.51
14 6.81 24 4.36
5 17.49 15 6.42 25 4.22
6 14.72 16 6.07 26 4.10
7 12.74 17 5.77 27 3.98
8 11.25 18 5.50 28 3.87
9 10.10 19 5.26 29 3.77
10 9.18 20 5.04 30 3.68
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
30
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
GUARANTEED FIXED PAYMENT OR FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
LIFE INCOME PLAN (OPTION C)
----------------------------------------------------------------------------------
SINGLE LIFE MONTHLY PAYMENTS
----------------------------------------------------------------------------------
CHOSEN PERIOD (YEARS)
-------------------- ------------------- --------------------
ADJUSTED
AGE* ZERO 10 20
-------------------- ------------------- -------------------- --------------------
55 $ 4.11 $ 4.09 $ 4.01
56 4.18 4.15 4.07
57 4.25 4.22 4.13
58 4.33 4.29 4.18
59 4.40 4.36 4.24
60 4.49 4.45 4.30
61 4.58 4.53 4.37
62 4.68 4.61 4.43
63 4.77 4.71 4.50
64 4.89 4.81 4.57
65 5.01 4.92 4.64
66 5.13 5.03 4.72
67 5.26 5.15 4.78
68 5.41 5.27 4.85
69 5.57 5.40 4.93
70 5.74 5.55 5.00
71 5.92 5.69 5.07
72 6.12 5.84 5.13
73 6.33 6.00 5.20
74 6.55 6.17 5.26
75 6.79 6.35 5.32
76 7.06 6.53 5.37
77 7.34 6.72 5.41
78 7.65 6.90 5.46
79 7.98 7.10 5.50
80 8.34 7.30 5.53
81 8.73 7.49 5.56
82 9.15 7.68 5.59
83 9.60 7.88 5.61
84 10.09 8.07 5.62
85 and over 10.61 8.24 5.63
-------------------- -------------------- ------------------- --------------------
LIFE INCOME PLAN (OPTION E)
------------------ ----------------------------------------------------------------------------------------------
JOINT AND SURVIVOR MONTHLY PAYMENTS (with 10 years certain)
------------------ ----------------------------------------------------------------------------------------------
YOUNGER LIFE ADJUSTED AGE*
OLDER LIFE ----------------------------------------------------------------------------------------------
ADJUSTED AGE* 55 60 65 70 75 80 85 and over
------------------ ------------ ------------- ------------ ------------ ------------- ------------ --------------
55 $ 3.75
60 3.83 $ 4.02
65 3.90 4.13 $ 4.39
70 3.94 4.22 4.54 $ 4.89
75 3.98 4.28 4.65 5.10 $ 5.59
80 4.00 4.32 4.73 5.24 5.86 $ 6.51
85 and over 4.01 4.34 4.77 5.34 6.04 6.84 $ 7.58
------------------ ------------ ------------- ------------ ------------ ------------- ------------ --------------
*See Section 11.7
The amount of the payment for any other combination of ages will be furnished by
the Company on request. The maximum initial monthly income per $1,000 will be
$7.75.
Monthly payment rates are based on an Assumed Investment Rate of 3 1/2% and the
1983 Table a with Projection Scale G.
31
IT IS RECOMMENDED THAT YOU...
read your contract.
notify your Northwestern Mutual agent or the Company at 000 Xxxx Xxxxxxxxx
Xxxxxx, Xxxxxxxxx, XX 00000, of an address change.
call your Northwestern Mutual agent for information--particularly on a
suggestion to terminate or exchange this contract for another contract or plan.
ELECTION OF TRUSTEES
The members of The Northwestern Mutual Life Insurance Company are its
policyholders of insurance policies and deferred annuity contracts. The members
exercise control through a Board of Trustees. Elections to the Board are held
each year at the annual meeting of members. Members are entitled to vote in
person or by proxy.
FLEXIBLE PAYMENT VARIABLE ANNUITY - ACCOUNT A
AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DIVISIONS AND VARIABLE PAYMENTS
PROVIDED BY THIS CONTRACT ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT BUT ARE
VARIABLE AND MAY INCREASE OR DECREASE TO REFLECT THE INVESTMENT EXPERIENCE OF
THE SEPARATE ACCOUNT.
32
Exhibit B(4)(b)
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
GUARANTEED FIXED PAYMENT OR FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
LIFE INCOME PLAN (OPTION C)
------------------------------------------------------------------------------------------------------------------------
SINGLE LIFE MONTHLY PAYMENTS
------------------------------------------------------------------------------------------------------------------------
CHOSEN PERIOD (YEARS) CHOSEN PERIOD (YEARS)
------------------------------------------- FEMALE -------------------------------------------
MALE ADJUSTED AGE* ZERO 10 20 ADJUSTED AGE* ZERO 10 20
------------------ -------------- ------------- -------------- ------------- -------------- -------------- -------------
55 $ 4.41 $ 4.36 $ 4.23 55 $ 4.04 $ 4.02 $ 3.96
56 4.49 4.44 4.29 56 4.10 4.08 4.01
57 4.58 4.52 4.35 57 4.17 4.14 4.07
58 4.67 4.60 4.41 58 4.24 4.21 4.12
59 4.77 4.69 4.47 59 4.31 4.28 4.18
60 4.87 4.79 4.54 60 4.39 4.36 4.24
61 4.98 4.89 4.60 61 4.48 4.44 4.31
62 5.10 4.99 4.67 62 4.57 4.52 4.37
63 5.23 5.11 4.74 63 4.66 4.61 4.44
64 5.36 5.22 4.81 64 4.77 4.71 4.51
65 5.51 5.35 4.87 65 4.88 4.81 4.58
66 5.67 5.47 4.94 66 5.00 4.92 4.66
67 5.84 5.61 5.00 67 5.12 5.03 4.73
68 6.02 5.75 5.07 68 5.26 5.15 4.80
69 6.21 5.89 5.13 69 5.41 5.28 4.88
70 6.41 6.05 5.19 70 5.57 5.42 4.95
71 6.63 6.20 5.25 71 5.74 5.56 5.02
72 6.86 6.36 5.30 72 5.93 5.71 5.09
73 7.11 6.53 5.35 73 6.13 5.87 5.16
74 7.37 6.70 5.39 74 6.34 6.04 5.23
75 7.65 6.87 5.44 75 6.58 6.22 5.29
76 7.96 7.05 5.47 76 6.83 6.40 5.34
77 8.28 7.23 5.51 77 7.11 6.59 5.39
78 8.63 7.40 5.54 78 7.40 6.78 5.44
79 9.01 7.58 5.56 79 7.72 6.98 5.48
80 9.41 7.76 5.59 80 8.07 7.18 5.52
81 9.84 7.93 5.61 81 8.45 7.38 5.55
82 10.30 8.10 5.62 82 8.86 7.58 5.58
83 10.79 8.27 5.63 83 9.30 7.78 5.60
84 11.31 8.42 5.64 84 9.78 7.98 5.62
85 and over 11.87 8.57 5.65 85 and over 10.30 8.16 5.63
---------------- -------------- ------------- -------------- ------------- -------------- -------------- -------------
LIFE INCOME PLAN (OPTION E)
------------------ ----------------------------------------------------------------------------------------------
JOINT AND SURVIVOR MONTHLY PAYMENTS (with 10 years certain)
------------------ ----------------------------------------------------------------------------------------------
MALE FEMALE ADJUSTED AGE*
ADJUSTED AGE*
------------------ ----------------------------------------------------------------------------------------------
55 60 65 70 75 80 85 and over
------------------ ------------ ------------- ------------ ------------ ------------- ------------ --------------
55 $ 3.75 $ 3.89 $ 4.02 $ 4.14 $ 4.23 $ 4.29 $4.33
60 3.83 4.02 4.21 4.39 4.54 4.65 4.73
65 3.90 4.13 4.39 4.65 4.89 5.09 5.22
70 3.94 4.22 4.54 4.89 5.26 5.58 5.81
75 3.98 4.28 4.65 5.10 5.59 6.07 6.45
80 4.00 4.32 4.73 5.24 5.86 6.51 7.07
85 and over 4.01 4.34 4.77 5.34 6.04 6.84 7.58
------------------ ------------ ------------- ------------ ------------ ------------- ------------ --------------
*See Section 11.7
The amount of the payment for any other combination of ages will be furnished by
the Company on request. The maximum initial monthly income per $1,000 will be
$7.75.
Monthly payment rates are based on an Assumed Investment Rate of 3 1/2% and the
1983 Table a with Projection Scale G.
33
EXHIBIT B(4)(c)
ENHANCED DEATH BENEFIT
AS OF THE ISSUE DATE, THIS AMENDMENT IS MADE PART OF THIS ANNUITY CONTRACT
ISSUED BY THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY. IN THE CASE OF A
CONFLICT WITH ANY PROVISIONS IN THE CONTRACT, THE PROVISIONS OF THIS AMENDMENT
WILL CONTROL.
SECTION 5.2 AND SECTION 5.3 ARE AMENDED IN THEIR ENTIRETY TO READ AS FOLLOWS:
SECTION 5.2 DEATH BENEFIT IF PRIMARY ANNUITANT IS AN OWNER
IF THE PRIMARY ANNUITANT IS AN OWNER, THE BENEFICIARY BECOMES ENTITLED TO THE
DEATH BENEFIT UPON RECEIPT AT THE HOME OFFICE OF SATISFACTORY PROOF OF THE DEATH
OF THE PRIMARY ANNUITANT BEFORE THE MATURITY DATE. THE DEATH BENEFIT WILL BE THE
GREATER OF:
o THE ACCUMULATION VALUE OF THE CONTRACT ON THE EFFECTIVE DATE; OR
o THE ENHANCED DEATH BENEFIT.
AS OF THE EFFECTIVE DATE, THE ACCUMULATION VALUE OF THE CONTRACT WILL BE SET AT
AN AMOUNT EQUAL TO THE DEATH BENEFIT. UNLESS A PAYMENT PLAN WAS ELECTED BY THE
OWNER, THE BENEFICIARY BECOMES THE OWNER AND ANNUITANT OF THE CONTRACT. HOWEVER,
IF THE BENEFICIARY IS NOT A NATURAL PERSON AND NO PAYMENT PLAN WAS ELECTED BY
THE OWNER, THE BENEFICIARY MAY SELECT A NATURAL PERSON TO BE THE ANNUITANT. IF A
NATURAL PERSON IS NOT SELECTED TO BE THE ANNUITANT WITHIN 60 DAYS OF THE DATE ON
WHICH PROOF OF DEATH OF THE ANNUITANT IS RECEIVED AT THE HOME OFFICE, THE
ACCUMULATION VALUE WILL BE DISTRIBUTED TO THE BENEFICIARY.
IF A BENEFICIARY BECOMES ENTITLED TO THE DEATH BENEFIT IN AN AMOUNT LESS THAN
THE MINIMUM ACCUMULATION VALUE SHOWN ON PAGE 4, THE ACCUMULATION VALUE WILL BE
DISTRIBUTED TO THE BENEFICIARY.
THE CASH VALUE OF ANY AMOUNT DISTRIBUTED WILL BE THE ACCUMULATION VALUE
WITHDRAWN AS OF THE DATE OF WITHDRAWAL AS DETERMINED IN SECTION 4.6.
ENHANCED DEATH BENEFIT. PRIOR TO THE FIRST CONTRACT ANNIVERSARY, THE ENHANCED
DEATH BENEFIT WILL EQUAL THE TOTAL PURCHASE PAYMENTS PAID UNDER THE CONTRACT
LESS ANY AMOUNTS WITHDRAWN UNDER SECTION 4.5.
ON THE FIRST CONTRACT ANNIVERSARY AND ON EACH SUBSEQUENT CONTRACT ANNIVERSARY
PRIOR TO THE PRIMARY ANNUITANT'S 80TH BIRTHDAY, THE ENHANCED DEATH BENEFIT WILL
EQUAL THE GREATER OF:
o THE ACCUMULATION VALUE OF THE CONTRACT ON THAT CONTRACT ANNIVERSARY;
OR
o THE ENHANCED DEATH BENEFIT ON THE MOST RECENT VALUATION DATE PRIOR TO
THAT CONTRACT ANNIVERSARY.
On any other Valuation Date prior to the Primary Annuitant's 80th birthday,
the Enhanced Death Benefit will be equal to the Enhanced Death Benefit on
the most recent contract anniversary, increased by any Purchase Payments
paid since that contract anniversary and decreased by any amounts withdrawn
under Section 4.5 since that contract anniversary.
34
On any Valuation Date on or after the Primary Annuitant's 80th birthday,
the Enhanced Death Benefit will equal the Enhanced Death Benefit on the
contract anniversary immediately prior to the Primary Annuitant's 80th
birthday increased by any Purchase Payments paid since that contract
anniversary and decreased by any amounts withdrawn under Section 4.5 since
that contract anniversary.
ENHANCED DEATH BENEFIT CHARGE. ON EACH CONTRACT ANNIVERSARY WHILE THIS AMENDMENT
IS IN EFFECT, A CHARGE FOR THE ENHANCED DEATH BENEFIT WILL BE DEDUCTED FROM THE
INVESTMENT ACCOUNTS IN PROPORTION TO THE ACCUMULATION VALUE OF THE INVESTMENT
ACCOUNTS. THE CHARGE IS SHOWN ON PAGE 4.
EFFECTIVE DATE. THE EFFECTIVE DATE IS THE DATE ON WHICH PROOF OF DEATH IS
RECEIVED AT THE HOME OFFICE. HOWEVER, THE EFFECTIVE DATE WILL BE THE NEXT
FOLLOWING VALUATION DATE IF THE PROOF OF DEATH IS RECEIVED AT THE HOME OFFICE
EITHER:
o ON A VALUATION DATE AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK
EXCHANGE; OR
o ON A DAY ON WHICH THE NEW YORK STOCK EXCHANGE IS CLOSED.
TERMINATION OF ENHANCED DEATH BENEFIT. THIS AMENDMENT WILL REMAIN IN EFFECT
UNTIL MATURITY UNLESS THE OWNER REQUESTS THAT IT BE REMOVED, THE CONTRACT
TERMINATES, OR THE PRIMARY ANNUITANT DIES. ONCE THE AMENDMENT IS REMOVED, IT
CANNOT BE ADDED AGAIN. THE PROVISIONS OF SECTION 5.2 IN THE CONTRACT ARE
APPLICABLE IF THIS AMENDMENT TERMINATES.
SECTION 5.3 DEATH BENEFIT IF PRIMARY ANNUITANT IS NOT AN OWNER
IF THE PRIMARY ANNUITANT IS NOT AN OWNER, UPON THE DEATH OF THE PRIMARY
ANNUITANT, THE CONTRACT CONTINUES WITH THE CONTINGENT ANNUITANT (SECTION 6.5) AS
THE NEW ANNUITANT. THE DEATH BENEFIT WILL BE THE GREATER OF:
o THE ACCUMULATION VALUE OF THE CONTRACT ON THE EFFECTIVE DATE; OR
o THE ENHANCED DEATH BENEFIT.
AS OF THE EFFECTIVE DATE, THE ACCUMULATION VALUE OF THE CONTRACT WILL BE SET AT
AN AMOUNT EQUAL TO THE DEATH BENEFIT.
ENHANCED DEATH BENEFIT. PRIOR TO THE FIRST CONTRACT ANNIVERSARY, THE ENHANCED
DEATH BENEFIT WILL EQUAL THE TOTAL PURCHASE PAYMENTS PAID UNDER THE CONTRACT
LESS ANY AMOUNTS WITHDRAWN UNDER SECTION 4.5.
ON THE FIRST CONTRACT ANNIVERSARY AND ON EACH SUBSEQUENT CONTRACT ANNIVERSARY
PRIOR TO THE PRIMARY ANNUITANT'S 80TH BIRTHDAY, THE ENHANCED DEATH BENEFIT WILL
EQUAL THE GREATER OF:
o THE ACCUMULATION VALUE OF THE CONTRACT ON THAT CONTRACT ANNIVERSARY;
OR
o THE ENHANCED DEATH BENEFIT ON THE MOST RECENT VALUATION DATE PRIOR TO
THAT CONTRACT ANNIVERSARY.
On any other Valuation Date prior to the Primary Annuitant's 80th
birthday, the Enhanced Death Benefit will be equal to the Enhanced
Death Benefit on the most recent contract anniversary, increased by
any Purchase Payments paid since that contract anniversary and
35
decreased by any amounts withdrawn under Section 4.5 since that
contract anniversary.
On any Valuation Date on or after the Primary Annuitant's 80th
birthday, the Enhanced Death Benefit will equal the Enhanced Death
Benefit on the contract anniversary immediately prior to the Primary
Annuitant's 80th birthday increased by any Purchase Payments paid
since that contract anniversary and decreased by any amounts withdrawn
under Section 4.5 since that contract anniversary.
ENHANCED DEATH BENEFIT CHARGE. ON EACH CONTRACT ANNIVERSARY WHILE THIS AMENDMENT
IS IN EFFECT, A CHARGE FOR THE ENHANCED DEATH BENEFIT WILL BE DEDUCTED FROM THE
INVESTMENT ACCOUNTS IN PROPORTION TO THE ACCUMULATION VALUE OF THE INVESTMENT
ACCOUNTS. THE CHARGE IS SHOWN ON PAGE 4.
EFFECTIVE DATE. THE EFFECTIVE DATE IS THE DATE ON WHICH PROOF OF DEATH IS
RECEIVED AT THE HOME OFFICE. HOWEVER, THE EFFECTIVE DATE WILL BE THE NEXT
FOLLOWING VALUATION DATE IF THE PROOF OF DEATH IS RECEIVED AT THE HOME OFFICE
EITHER:
o ON A VALUATION DATE AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK
EXCHANGE; OR
o ON A DAY ON WHICH THE NEW YORK STOCK EXCHANGE IS CLOSED.
TERMINATION OF ENHANCED DEATH BENEFIT. THIS AMENDMENT WILL REMAIN IN EFFECT
UNTIL MATURITY UNLESS THE OWNER REQUESTS THAT IT BE REMOVED, THE CONTRACT
TERMINATES, OR THE PRIMARY ANNUITANT DIES. ONCE THE AMENDMENT IS REMOVED IT
CANNOT BE ADDED AGAIN. THE PROVISIONS OF SECTION 5.3 IN THE CONTRACT ARE
APPLICABLE IF THIS AMENDMENT TERMINATES.
(SIGNED)
SECRETARY
THE NORTHWESTERN MUTUAL LIFE
INSURANCE COMPANY
36
EXHIBIT B(5)
A APPLICATION FOR DEFERRED ANNUITY
THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
000 X. Xxxxxxxxx Xxxxxx Xxxxxxxxx, Xxxxxxxxx 00000
Contract Number
|
|
--------------------------------------------------------------------------------
1. OTHER POLICIES
--------------------------------------------------------------------------------
Has a Northwestern Mutual Policy ever been issued on the annuitant's life?
[ ] YES, THE LAST POLICY NUMBER IS: __________________ [ ] NO
--------------------------------------------------------------------------------
2. ANNUITANT
--------------------------------------------------------------------------------
Name: First, MI, Last Sex Birthdate: mm-dd-yyyy
| | |
|____________________________________________|_______|_____________________
Street Address City, State, Zip
| |
|____________________________________________|_____________________________
Country, if other than US Taxpayer ID Number E-mail Address
| | |
|_________________________________|____________________|___________________
--------------------------------------------------------------------------------
3. MARKET
--------------------------------------------------------------------------------
Select one:
[ ] NON-TAX QUALIFIED } Owner must be indicated.
[ ] 457 DEFERRED COMPENSATION PLAN } Go to section 4.
[ ] TRADITIONAL IRA
[ ] XXXX XXX } If the annuitant is a minor, go to section 4;
[ ] SIMPLE IRA } otherwise the annuitant is the
[ ] SIMPLIFIED EMPLOYEE PENSION PLAN IRA (SEP) } owner, go to section 5.
[ ] 403(b) TDA - EMPLOYEE SALARY REDUCTION ONLY
[ ] 403(b) TDA - EMPLOYER MATCHING OR NON-ELECTIVE CONTRIBUTIONS INCLUDED } The annuitant is the owner.
[ ] 401(g) NON-TRANSFERABLE ANNUITY } Go to section 5.
[ ] PENSION & PROFIT SHARING:
Trust Number Taxpayer ID Number
| |
|________________|________________________________ } The owner and beneficiary
} are the trustees of the plan.
Name of Owner - Trustees of } Go to section 6.
| |
|________________|________________________________
37
--------------------------------------------------------------------------------
4. OWNER
--------------------------------------------------------------------------------
A minor owner limits future contract actions.
Select one:
[ ] ANNUITANT } Go to section 5.
[ ] SEE ATTACHMENT
[ ] UGMA/UTMA - custodian is owner for the benefit of minor
[ ] CORPORATION OR TRUST } Enter information below.
[ ] OTHER
Name: First, MI, Last/Corporation/Trust Sex Birthdate: mm-dd-yyyy
| | |
|____________________________________________|______|_____________________
Street Address City, State, Zip
| |
|____________________________________________|____________________________
Relationship to Annuitant Taxpayer ID Number E-mail Address
| | |
|____________________________|______________________|_____________________
Date of Trust Name of Trustees
| |
|__________________|______________________________________________________
--------------------------------------------------------------------------------
5. BENEFICIARY
--------------------------------------------------------------------------------
Cannot be annuitant unless "Estate of Annuitant" named.
[ ] SEE ATTACHMENT - Go to section 6.
DIRECT BENEFICIARY: [ ] OWNER [ ] OTHER - Enter information below:
Name Taxpayer ID Number (Optional) Relationship %
| | | |
|________________|_______________________________|_________________|______
Name Taxpayer ID Number (Optional) Relationship %
| | | |
|________________|_______________________________|_________________|______
CONTINGENT BENEFICIARY:
Name Taxpayer ID Number (Optional) Relationship %
| | | |
|________________|_______________________________|_________________|______
Name Taxpayer ID Number (Optional) Relationship %
| | | |
|________________|_______________________________|_________________|______
[ ] And all (other) children of the Annuitant.
--------------------------------------------------------------------------------
6. REPLACEMENT
--------------------------------------------------------------------------------
As a result of this purchase, will the values or benefits of any other life
insurance policy or annuity contract, on any life, be affected in any way?
[ ] YES [ ] NO
Note to Agent: Values or benefits are affected if any question on the
Definition of Replacement Supplement could be answered "yes."
Will this annuity:
A. Replace Northwestern Mutual Life? [ ] YES [ ] NO
B. Replace other companies? [ ] YES [ ] NO
C. Result in 1035 exchange? [ ] YES [ ] NO
--------------------------------------------------------------------------------
7. PLAN
--------------------------------------------------------------------------------
Select one:
[ ] VARIABLE ANNUITY - Go to section V1.
[ ] FIXED ANNUITY - SINGLE PREMIUM RETIREMENT ANNUITY - Go to section F1.
38
VARIABLE ANNUITY SECTION
--------------------------------------------------------------------------------
V1. TYPE
--------------------------------------------------------------------------------
[ ] BACK-END DESIGN [ ] FRONT-END DESIGN - Minimum initial purchase payment
$10,000.
The front-end design may provide better long term financial value than the back
end design. Factors to consider in making a decision include the expected
holding period of the annuity as well as anticipated liquidity needs.
--------------------------------------------------------------------------------
V2. OPTIONAL ENHANCED DEATH BENEFIT
--------------------------------------------------------------------------------
[ ] I ELECT THE ENHANCED DEATH BENEFIT RIDER.
There is an additional charge. Available to age 65. If this rider is not
elected, the standard death benefit will apply.
See prospectus for more information.
--------------------------------------------------------------------------------
V3. PAYMENT ALLOCATION AND OPTIONS
--------------------------------------------------------------------------------
A. PAYMENT ALLOCATION
You must indicate payment allocations. Use whole percentages. Total must
equal 100%.
NORTHWESTERN MUTUAL SERIES FUND, INC.
%
|______ Select Bond
|______ International Equity
|______ Money Market
|______ Balanced
|______ Index 500 Stock
|______ Aggressive Growth Stock
|______ High Yield Bond
|______ Growth Stock
|______ Growth and Income Stock
|______ Index 400 Stock
|______ Small Cap Growth Stock
XXXXXXX INSURANCE FUNDS
%
|______ Multi-Style Equity
|______ Aggressive Equity
|______ Non-US
|______ Real Estate Securities
|______ Core Bond
FIXED FUND
%
|______ Guaranteed Interest
Fund availability subject to state approval.
B. OPTIONS
You may select one of the following options:
[ ] AUTOMATIC DOLLAR-COST AVERAGING
Amount
|
I authorize |$ ________________________ to be transferred from the
Money Market Fund:
[ ] MONTHLY [ ] QUARTERLY
to the following funds:
% Fund Name
| |
|______ |_________________________________________________
| |
|______ |_________________________________________________
| |
|______ |_________________________________________________
| |
|______ |_________________________________________________
| |
|______ |_________________________________________________
| |
|______ |_________________________________________________
[ ] PORTFOLIO RE-BALANCING
Minimum contract value $10,000. Re-balancing transfers are not
made to or from the Guaranteed Interest Fund.
I authorize re-balancing transfers to be made according to the
elected Payment Allocations:
[ ] MONTHLY [ ] QUARTERLY
[ ] SEMI-ANNUALLY [ ] ANNUALLY
39
--------------------------------------------------------------------------------
V4. INITIAL PAYMENT
--------------------------------------------------------------------------------
METHOD OF PAYMENT
Select one: Amount
|$
[ ] CHECK ATTACHED |___________________ Estimated Amount
|$
[ ] CHECK COMING FROM ANOTHER INSTITUTION |___________________
[ ] ELECTRONIC FUNDS TRANSFER (ISA/EFT) - Complete section V5.
[ ] MULTIPLE CONTRACT BILL (MCB) - Required for Simple IRAs. Complete
section V5.
IRA INFORMATION
This section must be completed if an IRA market was selected in Section 3.
CAUTION: ACCURATE SELECTION IS NEEDED TO ASSURE CORRECT TAX REPORTING. For
advice, consult your tax professional. Select all that apply:
[ ] NEW CONTRIBUTIONS - Specify tax year:
Current Tax Year | Amount
____________________________|$__________________________
Prior Tax Year | Amount
____________________________|$__________________________
[ ] DIRECT TRANSFER - Check Payable to Northwestern Mutual Life for the
benefit of the contract owner.
Indicate the market the money is coming from. Select one:
[ ] TDA
[ ] PENSION/PROFIT SHARING/401K/DEFINED BENEFIT
[ ] TRADITIONAL IRA
[ ] XXXX XXX
[ ] SEP
[ ] SIMPLE IRA - THE OWNER HAS BEEN A PARTICIPANT IN THE
EMPLOYER'S SIMPLE plan for: [ ] TWO YEARS OR LESS
[ ] MORE THAN TWO YEARS
[ ] 60-DAY ROLLOVER - Personal check from owner or check endorsed to
Northwestern Mutual Life.
Only if applicable, also select one:
[ ] TRADITIONAL IRA TO XXXX XXX
[ ] SIMPLE IRA TO TRADITIONAL IRA- THE OWNER HAS BEEN A PARTICIPANT
IN THE EMPLOYER'S SIMPLE plan for: [ ] TWO YEARS OR LESS
[ ] MORE THAN TWO YEARS
40
| |
| |
Attach Voided Check
--------------------------------------------------------------------------------
V5. SCHEDULED PAYMENTS
--------------------------------------------------------------------------------
You may select either ISA/EFT or MCB.
ISA Number
[ ]
[ ]
[ ]
[ ] ELECTRONIC FUNDS TRANSFER (ISA/EFT)
You must attach a voided check.
Select one:
[ ] MONTHLY [ ] QUARTERLY
[ ] SEMI-ANNUALLY [ ] ANNUALLY
Amount Date of First Draft
| |
|$ |
__________________________________________________________________
Bank Transit Number Checking/Savings Account Number
| |
| |
__________________________________________________________________
Bank Name
[ ] CHECKING |
[ ] SAVINGS |
_____________________________________________
BANK ACCOUNT OWNER - Select one:
[ ] ANNUITANT [ ] OTHER- Enter information below:
Name: First, MI, Last Sex Birthdate: mm-dd-yyyy
| | |
| | |
______________________________________________________________________________
Street Address City, State, Zip
| |
| |
______________________________________________________________________________
Taxpayer ID Number Daytime Telephone Number
| |
| |
______________________________________________________________________________
Signature below is authorization to the depository institution specified above
to pay and charge named account with electronic funds transfers, or other form
of pre-authorized check or withdrawal order transfers, initiated by the
Northwestern Mutual Life Insurance Company to its own order. This authorization
will remain in effect until revoked in writing.
X
__________________________________________________________
Signature of Bank Account Owner
[ ] MULTIPLE CONTRACT BILL (MCB)
Amount MCB Number MCB Payer Name
| | |
|$ | |
______________________________________________________________________________
41
--------------------------------------------------------------------------------
SIGNATURES - VARIABLE ANNUITY
--------------------------------------------------------------------------------
THE ANNUITANT CONSENTS TO THIS APPLICATION.
EACH PERSON SIGNING THIS APPLICATION DECLARES THAT THE ANSWERS AND STATEMENTS
MADE IN THIS APPLICATION ARE CORRECTLY RECORDED, COMPLETE AND TRUE TO THE BEST
OF HIS OR HER KNOWLEDGE AND BELIEF.
IT IS UNDERSTOOD AND AGREED THAT:
If the Owner is a Trustee or successor Trustee under a tax qualified plan or the
employer under a tax qualified non-trusteed plan, Northwestern Mutual Life will
be fully discharged of liability for any action taken by the Owner in the
exercise of any contract right and for all amounts paid to, or at the direction
of, the Owner and will have no obligation as to the use of the amounts. In all
dealings with the Owner, Northwestern Mutual Life will be fully protected
against the claims of every other person.
The first purchase payment will be credited the valuation date coincident with
or next following the date both the application and the purchase payment are
received at the Home Office.
Receipt of purchase payments at a payment facility designated by Northwestern
Mutual Life will be considered the same as receipt at the Home Office.
If a Tax Qualified Employee Plan, an IRA or TDA is applied for, the Applicant
and/or Annuitant have received and reviewed the appropriate ERISA, IRA or TDA
disclosure statements.
BACK-END DESIGN VARIABLE ANNUITY CONTRACTS HAVE PROVISIONS FOR THE ASSESSMENT OF
SURRENDER CHARGES ON CASH WITHDRAWAL.
No agent is authorized to make or alter contracts or to waive the rights or
requirements of Northwestern Mutual Life.
I acknowledge receipt of the Prospectus or Offering Circular and Report and I
understand that all payments and values provided by this contract, when based on
the investment experience of a separate account, are variable and are not
guaranteed as to amount.
x x
_________________________________________________________________ ________________________________________________
Signature of Applicant (Indicate relationship below if applicable) Signature of Annuitant (if other than Applicant)
[ ] Trustee [ ] Employer
x
________________________________________________
Signature of Licensed Agent
Date Signed at: City County State
| | | |
| | | |
____________ _______________________________________ __________________________ ________
42
FIXED ANNUITY - SINGLE PREMIUM RETIREMENT ANNUITY SECTION
--------------------------------------------------------------------------------
F1. GUARANTEED PERIOD
--------------------------------------------------------------------------------
[ ]ONE YEAR [ ]THREE YEAR
--------------------------------------------------------------------------------
F2. PAYMENT
--------------------------------------------------------------------------------
METHOD OF PAYMENT
Select all that apply:
Amount
|
[ ]CHECK ATTACHED |$ ________________
Estimated Amount
|
[ ]CHECK COMING FROM ANOTHER INSTITUTION |$ __________________
IRA INFORMATION
This section must be completed if an IRA market was selected in Section 3.
CAUTION: ACCURATE SELECTION IS NEEDED TO ASSURE CORRECT TAX REPORTING. For
advice, consult your tax professional. Select one:
[ ] DIRECT TRANSFER - Check Payable to Northwestern Mutual Life for the
benefit of the contract owner.
Indicate the market the money is coming from. Select one:
[ ] TDA
[ ] PENSION/PROFIT SHARING/401K/DEFINED BENEFIT
[ ] TRADITIONAL IRA
[ ] XXXX XXX
[ ] SEP
[ ] SIMPLE IRA - The owner has been a participant in the employer's
SIMPLE plan for: [ ]TWO YEARS OR LESS
[ ]MORE THAN TWO YEARS
[ ]60-DAY ROLLOVER - Personal check from owner or check endorsed to
Northwestern Mutual Life.
Only if applicable, also select one:
[ ] TRADITIONAL IRA TO XXXX XXX
[ ] SIMPLE IRA TO TRADITIONAL IRA - The owner has been a participant
in the employer's SIMPLE plan for: [ ] TWO YEARS OR LESS
[ ] MORE THAN TWO YEARS
43
--------------------------------------------------------------------------------
SIGNATURES - FIXED ANNUITY - SINGLE PREMIUM RETIREMENT ANNUITY
--------------------------------------------------------------------------------
THE ANNUITANT CONSENTS TO THIS APPLICATION.
EACH PERSON SIGNING THIS APPLICATION DECLARES THAT THE ANSWERS AND STATEMENTS
MADE IN THIS APPLICATION ARE CORRECTLY RECORDED, COMPLETE AND TRUE TO THE BEST
OF HIS OR HER KNOWLEDGE AND BELIEF.
IT IS UNDERSTOOD AND AGREED THAT:
If the Owner is a Trustee or successor Trustee under a tax qualified plan or the
employer under a tax qualified non-trusteed plan, Northwestern Mutual Life will
be fully discharged of liability for any action taken by the Owner in the
exercise of any contract right and for all amounts paid to, or at the direction
of, the Owner and will have no obligation as to the use of the amounts. In all
dealings with the Owner, Northwestern Mutual Life will be fully protected
against the claims of every other person.
The premium will be credited the date both the entire premium and the
application are received at the Home Office.
Receipt of the premium at a payment facility designated by Northwestern Mutual
Life will be considered the same as receipt at the Home Office.
If a Tax Qualified Employee Plan, an IRA or TDA is applied for, the Applicant
and/or Annuitant have received and reviewed the appropriate ERISA, IRA or TDA
disclosure statements.
FIXED ANNUITY - SINGLE PREMIUM RETIREMENT ANNUITY POLICIES HAVE PROVISIONS FOR
THE ASSESSMENT OF SURRENDER CHARGES ON CASH WITHDRAWAL.
No agent is authorized to make or alter contracts or to waive the rights or
requirements of Northwestern Mutual Life.
X__________________________________________________________________ X_______________________________________________
Signature of Applicant (Indicate relationship below if applicable) Signature of Annuitant (if other than Applicant)
[ ] Trustee [ ] Employer
X_______________________________________________
Signature of Licensed Agent
Date Signed at: City County State
| | | |
| | | |
___________________________________________________________________________________________________________________________
44
--------------------------------------------------------------------------------
AGENT'S CERTIFICATE
--------------------------------------------------------------------------------
Annuitant Name: First, MI, Last A
|
|_____________________________________________________________________
1. To the best of your knowledge will the annuity applied for replace any
life insurance or annuity contract in this company or elsewhere?
[ ] YES [ ] NO
Date of Delivery
|
2. On |__________ the following Prospectus or Offering Circular and Report
was delivered:
[ ] ACCOUNT A OFFERING CIRCULAR DATED______________AND REPORT DATED
_____________(CORPORATE PENSION PLANS)
[ ] ACCOUNT A PROSPECTUS DATED______________(PARTNERSHIP OR SOLE
PROPRIETORSHIP PENSION PLANS)
[ ] ACCOUNT B PROSPECTUS DATED______________(ALL OTHERS)
3. Was any part of this application translated?
[ ] YES, PLEASE EXPLAIN: [ ] NO
--------------------------------------------------------------------------------
CERTIFICATION
--------------------------------------------------------------------------------
I certify that to the best of my knowledge I have presented to the Company all
pertinent facts, have asked all questions and have completely and correctly
recorded the Applicant's and Xxxxxxxxx's answers in accordance with the
instructions. I know nothing unfavorable about the Annuitant that is not stated
in the application or accompanying letter. I further certify that I have
reasonable grounds for believing the purchase of the annuity applied for is
suitable as an investment for the Annuitant based on the information furnished
by the Applicant and Annuitant and contained herein.
If this application is for a Variable Annuity, I certify that a current
Prospectus or Offering Circular and Report was delivered and that no written
sales materials other than those furnished by the Home Office were used.
Agent Phone Number
|
x_____________________________________________________|________________________
Signature of Agent
General Agent's approval for VARIABLE ANNUITIES only (signature of GENERAL AGENT
or APPOINTED REGISTERED REPRESENTATIVE)
x________________________________ __________________________________________
Signature Print Name
or use stamp
|
|
|
|_________________________________________
45
--------------------------------------------------------------------------------
DEMOGRAPHICS
--------------------------------------------------------------------------------
ANNUITANT'S EDUCATION
[ ] Some Education [ ] High School [ ] Associate Degree [ ] Some College
[ ] Bachelors [ ] Masters [ ] Attorney at Law [ ] Doctorate
NUMBER OF CHILDREN
Number
| [ ] None
|
|_________
OCCUPATION INDUSTRY SOURCE OF APPLICANT
[ ] Business Owner [ ] Agriculture, Forestry &Fishing [ ] Agent's Own Policyowner
[ ] Clerical [ ] Construction [ ] Orphan Policyowner
[ ] Consultant [ ] Finance, Insurance &Real Estate [ ] Referred Lead
[ ] Craftsman [ ] Manufacturing [ ] Acquaintance
[ ] Homemaker [ ] Mining [ ] Newcomer Service
[ ] Legal [ ] Nonclassifiable Establishments [ ] Cold Canvass
[ ] Managerial/Executive [ ] Public Administration [ ] Lead Letter Reply
[ ] Medical [ ] Retail Trade [ ] Published Sources
[ ] Professional [ ] Services [ ] Walk-in
[ ] Sales [ ] Transportation, Communication [ ] Family member or yourself
& Utilities
[ ] Service Worker Other
[ ] Technical [ ] Wholesale Trade |
|______________________________
--------------------------------------------------------------------------------
CONTRACT DELIVERY INSTRUCTIONS
--------------------------------------------------------------------------------
Deliver contract package to the servicing agent at the: [ ] GA office
[ ] DA office
[ ] Agent's own office
--------------------------------------------------------------------------------
PRODUCTION AND COMMISSION CREDITS
--------------------------------------------------------------------------------
Primary or Secondary If secondary contract,
Agent Number Agents Full Name*: Last, First % Interest Contract (P or S) secondary Appt. Agt. No.
| | | | |
|__________________|__________________________________|___________________|________________________|_________________________
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|__________________|__________________________________|___________________|________________________|_________________________
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|__________________|__________________________________|___________________|________________________|_________________________
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|__________________|__________________________________|___________________|________________________|_________________________
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|__________________|__________________________________|___________________|________________________|_________________________
*Commissions are payable only to Registered Representatives of Northwestern
Mutual Investment Services, LLC.
General Agent's Number General Agent's Stamp
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|_______________________ |
|
|_________________
46
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A Annuitant Amount Plan
| | |
|_________________________________|$_________|_________________________________
RECEIPT
If the premium or purchase Received of___________________________________________________________________
payment is paid at the time
of application, this receipt the sum of $__________________________________________________________________
must be completed and given for the Annuity applied for in the application to The Northwestern Mutual LIfe
to the Applicant. No other Insurance Company, 000 Xxxx Xxxxxxxxx Xxx., Xxxxxxxxx, XX 00000.
receipt will be recognized by
the Company. Place and Date Agent
| |
|_________________________________|____________________________________________
ALL CHECKS SHOULD BE PAYABLE TO NORTHWESTERN MUTUAL LIFE. DO NOT MAKE THE CHECK
PAYABLE TO THE AGENT OR LEAVE THE PAYEE BLANK.
EFFECTIVE DATE: The Annuity will be effective on the date the application and
initial purchase payment are received at the Home Office. Receipt of purchase
payments at a payment facility designated by Northwestern Mutual Life will be
considered the same as receipt at the Home Office.
REFUND: If delivery of a Fixed Annuity-Single Premium Retirement Annuity is not
accepted, the Company will refund any premium paid. If delivery of a Variable
Annuity is not accepted, the Company will refund the sum of the difference
between the purchase payments paid and the amounts, if any, allocated to the
Separate Account plus the value of the Accumulation Units of the Separate
Account on the effective date of return, except where otherwise required by law.
No agent is authorized to make or alter contracts or to waive any of the
Company's rights or requirements.
