Endorsement
This Contract is endorsed as follows.
Add the following to Section I, General Definitions:
Dollar Cost Averaging - A program that permits the Certificate Holder to
systematically transfer amounts from any of the Funds and the one-year MG
Account Guaranteed Term to any of the Funds by completing the appropriate
section of the enrollment form or a Dollar Cost Averaging election form.
Delete Section 1.06, Beneficiary, and replace it with the following:
1.06 Beneficiary - The individual or estate entitled to receive any
payment from the Account upon the death of the Annuitant, or if
the Certificate Holder is different from the Annuitant, upon the
death of the Certificate Holder. If the Account is held by joint
Certificate Holders, the survivor will be deemed the designated
Beneficiary and any other Beneficiary on record will be treated as
the contingent Beneficiary.
Delete Section 1.07, Certificate Holder, and replace it with the following:
1.07 Certificate Holder - A person who purchases an interest in this
Contract as evidenced by a certificate. Aetna reserves the right
to limit ownership to natural persons. If more than one
Certificate Holder owns an Account, each Certificate Holder will
be a joint Certificate Holder. Any joint Certificate Holder must
be the spouse of the other joint Certificate Holder. Joint
Certificate Holders have joint ownership rights and both must
authorize exercising any ownership rights unless Aetna allows
otherwise. If the Account is owned by a nonnatural person, the
death benefit will be paid at the death of the Annuitant.
Delete Section 1.21, Market Value Adjustment, and replace it with the following.
1.21 Market Value Adjustment - An adjustment that may apply to an
amount withdrawn or transferred from an MG Account Guaranteed Term
prior to the end of that Guaranteed Term. The adjustment reflects
the change in the value of the investment due to changes in
interest rates since the date of deposit and is computed using the
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MP2IREND(4/95)
formula given in 3.06. The adjustment is expressed as a percentage
of each dollar withdrawn or transferred.
Delete Section 2.04, Payments and Elections, and replace it with the following:
2.04 Payments and Elections - While the Certificate Holder is living,
Aetna will pay the Certificate Holder any Annuity payments as and
when due. After the Certificate Xxxxxx's death, or at the death of
the first Certificate Holder if the Account is owned jointly, any
Annuity payments remaining to be made will be paid in accordance
with 4.03. Aetna will determine other payments and/or elections as
of the end of the Valuation Period in which the request is
received at its Home Office. Such payments will be made within
seven calendar days of receipt at its Home Office of a written
claim for payment which is in good order, except as provided in
3.15.
Delete Section 2.06, Control of Contract, and replace it with the following:
2.06 Control of Contract - This is a Contract between the Contract
Holder and Aetna. The Contract Holder has title to the Contract.
Contract Holder rights are limited to accepting or rejecting
Contract modifications. The Certificate Holder has all other
rights to amounts held in his or her Account.
Each Certificate Holder shall own all amounts held in his or her
Account. Each Certificate Holder may make any Certificate Holder
choices allowed under this Contract. Certificate Holder choices
made under this Contract must be in writing. If the Account is
owned jointly both joint Certificate Holders must authorize any
Certificate Holder change in writing. Until receipt of such
choices at Aetna's Home Office, Aetna may rely on any previous
choices made.
The Contract is not subject to the claims of any creditors of the
Contract Holder or Certificate Holder, except to the extent
permitted by law.
The Certificate Holder may assign or transfer his or her rights
under the Contract. Aetna reserves the right not to accept
assignment or transfer to a nonnatural person. Any assignment or
transfer made must be submitted to Aetna's Home Office in writing
and will not be effective until accepted by Aetna.
Delete Section 2.07, Designation of Beneficiary, and replace it with the
following:
2.07 Designation of Beneficiary - Each Certificate Holder shall name
his or her Beneficiary. If the Account is owned jointly, both
joint Certificate Holders must agree in writing to the Beneficiary
designated. The Beneficiary may be changed at
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any time. Changes to a Beneficiary must be submitted to Aetna's
Home Office in writing and will not be effective until accepted by
Aetna.
Delete the first two paragraphs of Section 3.06, Market Value Adjustment, and
replace them with the following:
3.06 Market Value Adjustment - Except as noted below, an MVA will apply
to a withdrawal from the MG Account before the end of a Guaranteed
Term when the withdrawal is:
(a) A Transfer; except for Transfers from the one-year MG Account
Guaranteed Term under the Dollar Cost Averaging program or, as
specified in 1.23, MG Account Matured Term Value Transfer;
(b) A full or partial surrender (including a 10% free withdrawal
under 3.14), except for a partial withdrawal under the
Systematic Withdrawal Option (see 3.10); or
(c) An election of Annuity option 2 (see 4.07).
Full and partial surrenders and Transfers made within six months
after the date of the Annuitant's death will be the greater of:
(a) The aggregate MVA amount which is the sum of all market value
adjusted amounts calculated due to a withdrawal of amounts.
This total may be greater or less than the Current Value of
those amounts; or
(b) The applicable portion of the Current Value in the MG Account.
Delete Section 3.07, Transfer of Current Value from the Funds or MG Account, and
replace them with the following:
3.07 Transfer of Current Value from the Funds or MG Account - Before an
Annuity option is elected, all or any portion of the Adjusted
Current Value of the Certificate Holder's Account may be
transferred from any Fund or Guaranteed Term of the MG Account:
(a) To any other Fund; or
(b) To a Guaranteed Term of the MG Account available in the
current Deposit Period.
Transfer requests can be submitted as a percentage or as a dollar
amount. Aetna may establish a minimum transfer amount. Within a
Guaranteed Term Group, the amount to be surrendered to transferred
will be withdrawn first from the oldest Deposit Period, then from
the next oldest, and so on until the amount requested is
satisfied.
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The Certificate Holder may make an unlimited number of Transfers
during the Accumulation Period. The number of free Transfers
allowed by Aetna is shown on Contract Schedule I. Additional
Transfers may be subject to a Transfer fee as shown on Contract
Schedule I.
Amounts transferred from the MG Account under the Dollar Cost
Averaging program, or amounts transferred as a Matured Term Value
on or within one calendar month of the Term's Maturity Date, do
not count against the annual Transfer limit.
Amounts applied to Guaranteed Terms of the MG Account may not be
transferred to the Funds or to another Guaranteed Term during the
Deposit Period or for 90 days after the close of the Deposit
Period except for (1) a Matured Term Value(s) during the calendar
month following the Term's Maturity Date and (2) amounts
transferred from the one-year MG Account Guaranteed Term under the
Dollar Cost Averaging program.
Delete the first paragraph in Section 3.10, Systematic Withdrawal Option (SWO),
and replace it with the following:
3.10 Systematic Withdrawal Option (SWO) - A distribution option under
which a portion of the Account's Current Value will be
automatically surrendered and distributed each year. SWO payments
will be calculated on the Account's full Current Value. The
distributed amount is withdrawn pro rata from each investment
option under the Account. A Surrender Fee will not be deducted
from any portion of the Current Value which is paid as a
distribution under SWO. Certificate Holders should consult their
tax advisor prior to requesting this distribution option. Aetna
will not be responsible for any adverse tax consequences due to
receiving SWO payments.
Delete Section 3.11, Death Benefit Amount, and replace it with the following:
3.11 Death Benefit Amount - If the Certificate Holder or Annuitant dies
before Annuity payments start, the Beneficiary is entitled to a
death benefit under the Account. If the Account is owned jointly,
the death benefit is paid at the death of the first joint
Certificate Holder to die. The claim date is the date when proof
of death and the Beneficiary's claim are received in good order at
Aetna's Home Office. The amount of the death benefit is determined
as follows:
(a) Death of Annuitant less than 75 years of age: The guaranteed
death benefit is the greatest of:
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(1) The sum of all Net Purchase Payment(s) made to the Account (as
of the date of death) minus the sum of all amounts
surrendered, applied to an Annuity, or deducted from the
Account;
(2) The highest step-up value as of the date of death. A step-up
value is determined on each anniversary of the Effective Date.
Each step-up value is calculated as the Account's Current
Value on the Effective Date anniversary, increased by the
amount of any Purchase Payment(s) made, and decreased by the
sum of all amounts surrendered, deducted, and/or applied to an
Annuity option since the Effective Date anniversary.
(3) The Account's Current Value as of the date of death.
The excess, if any, of the guaranteed death benefit value over the
Account's Current Value is determined as of the date of death. Any
excess amount will be deposited in the Account and allocated to
the Aetna Variable Encore Fund as of the claim date. The Current
Value on the claim date, plus any excess amount deposited, becomes
the Account's Current Value.
(b) Death of Annuitant age 75 or greater: The death benefit amount is
the greatest of:
(1) The sum of all Net Purchase Payment(s) made to the Account (as
of the date of death) minus the sum of all amounts
surrendered, applied to an Annuity, or deducted from the
Account;
(2) The highest step-up value prior to the Certificate Holder's
75th birthday. A step-up value is determined on each
anniversary of the Effective Date. Each step-up value is
calculated as the Account's Current Value on the Effective
Date anniversary, increased by the amount of any Purchase
Payment(s) made, and decreased by the sum of all amounts
surrendered, deducted, and/or applied to an Annuity option
since the Effective Date anniversary.
(3) The Account's Current Value as of the date of death.
The excess, if any, of the guaranteed death benefit value over the
Account's Current Value is determined as of the date of death. Any
excess amount will be deposited in the Account and allocated to
the Aetna Variable Encore Fund as of the claim date. The Current
Value on the claim date, plus any excess amount deposited, becomes
the Account's Current Value.
(c) Death of Certificate Holder if the Certificate Holder is not the
Annuitant: The death benefit amount is the Account's Adjusted
Current Value on the claim
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date. A Surrender Fee may apply to any full or partial surrender
(see 3.14 and Contract Schedule I).
(d) At the death of a surviving spouse Xxxxxxxxxxx who continued the
Account in his or her own name, the death benefit amount is equal
to the Account's Current Value less any applicable Surrender Fee
on the amount of any Purchase Payment(s) made since the death of
the Certificate Holder.
Delete Section 3.12, Death Benefit Options available to Beneficiary, and replace
it with the following:
3.12 Death Benefit Options available to Beneficiary - Prior to any
election, or until amounts must be otherwise distributed under
this section, the Account's Current Value will be retained in the
Account. The Beneficiary has the right to allocate or reallocate
any amount to any available investment option (subject to an MVA
if applicable). The following options are available to the
Beneficiary:
(a) When the Certificate Holder is the Annuitant: If the
Certificate Holder/Annuitant dies, and:
(1) If the Beneficiary is the Certificate Holder's surviving
spouse, the Beneficiary may exercise all Certificate
Holder rights under the Contract and continue in the
Accumulation Period, or may elect (i), (ii), or (iii)
below. Under the Code, distributions from the Account are
not required until the spousal Beneficiary's death. The
spousal Beneficiary may elect to:
(i) Apply some or all of the Adjusted Current Value to
Annuity option 2, 3 or 4 (see 4.07);
(ii) Apply some or all of the Adjusted Current Value to
Annuity option 1 (see 4.07); or
(iii) Receive, at any time, a lump sum payment equal to
the Account's Adjusted Current Value.
(2) If the Beneficiary is other than the Certificate Holder's
surviving spouse, then options (i), (ii), or (iii) under
(1) above apply. Any portion of the Adjusted Current Value
not applied to Annuity option 2, 3, or 4 within one year
of the Certificate Holder's death, must be distributed
within five years of the date of death.
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(3) If no Beneficiary exists, a lump sum payment equal to the
Adjusted Current Value will be made to the Certificate
Holder's estate.
(b) When the Certificate Holder is not the Annuitant and the
Certificate Holder dies, and:
(1) If the Beneficiary is the Certificate Holder's surviving
spouse, the Beneficiary may exercise all Certificate
Holder rights under the Contract and continue in the
Accumulation Period, or may elect (i), (ii), or (iii)
below. Under the Code, distributions from the Account are
not required until the spousal Beneficiary's death. The
spousal Beneficiary may elect to:
(i) Apply some or all of the Adjusted Current Value to
Annuity option 2, 3 or 4 (see 4.07);
(ii) Apply some or all of the Surrender Value to Annuity
option 1 (see 4.07); or
(iii) Receive, at any time, a lump sum payment equal to
the Account's Surrender Value.
(2) If the Beneficiary is other than the Certificate Holder's
surviving spouse, then options (i), (ii), or (iii) under
(1) above apply. Any portion of the Adjusted Current Value
not applied to Annuity Option 2, 3, or 4 within one year
of the Certificate Holder's death, must be distributed
within five years of the date of death.
(3) If no Beneficiary exists, a lump sum payment equal to the
Surrender Value will be made to the Certificate Holder's
estate.
(c) When the Certificate Holder is not the Annuitant and the
Annuitant dies: The Beneficiary must elect Annuity option 2,
3, or 4 within 60 days of the date of death or the gain, if
any, will be includable in the Beneficiary's income in the tax
year in which the Annuitant dies.
Delete Section 3.13, Liquidation of Surrender Value, and replace it with the
following:
3.13 Liquidation of Surrender Value - All or any portion of the
Account's Current Value may be surrendered at any time. Surrender
requests can be submitted as a percentage of the Account's Current
Value or as a specific dollar amount. Net Purchase Payment amounts
are withdrawn first, and then the excess value, if any. For any
partial surrender, amounts are withdrawn on a pro rata basis from
the Fund(s) and/or the
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Guaranteed Term(s) Groups of the MG Account in which the Current
Value is invested. Within a Guaranteed Term Group, the amount to
be surrendered or transferred will be withdrawn first from the
oldest Deposit Period, then from the next oldest, and so on until
the amount requested is satisfied.
After deduction of the Maintenance Fee, if applicable, the
surrendered amount shall be reduced by a Surrender Fee, if
applicable. An MVA may apply to amounts surrendered from the MG
Account.
Delete subsection (a) of Section 4.03, Death of Annuitant/Beneficiary, and
replace it with the following:
4.03 Death of Annuitant/Beneficiary: (a) Certificate Holder is
Annuitant: When the Certificate Holder is the Annuitant and the
Annuitant dies under option 2 or 3, or both the Annuitant and the
second Annuitant die under option 4(d), the present value of any
remaining guaranteed payments will be paid in one sum to the
Beneficiary, or upon election by the Beneficiary, any payments
remaining will continue to the Beneficiary. If option 4 has been
elected and the Certificate Holder dies, the remaining payments
will continue to the successor payee. If no successor payee has
been designated, the Beneficiary will be treated as the successor
payee. If the Account has joint Certificate Holders, the surviving
joint Certificate Holder will be deemed the successor payee.
Delete the first paragraph of subsection (b) of Section 4.03, Death of
Annuitant/Beneficiary, and replace it with the following:
(b) Certificate Holder is Not Annuitant: When the Certificate Holder
is not the Annuitant and the Certificate Holder dies, the
remaining payments under options 2, 3 or 4 will continue to the
successor payee. If no successor payees has been designated, the
Beneficiary will be treated as the successor payee. If the Account
has joint Certificate Holders, the surviving joint Certificate
Holder will be deemed the successor payee.
Endorsed and made part of the Certificate on the Effective Date of the Contract.
/s/ Xxx Xxxxxxx
President
Aetna Insurance Company of America
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