OWNER: [XXXX XXX]
[APPLICABLE FOR JOINT OWNER NON-QUALIFIED CONTRACTS ONLY]
JOINT OWNER:
CONTRACT NUMBER: [00000]
CONTRACT DATE: [January 1, 2010]
FLEXIBLE PREMIUM DEFERRED FIXED AND VARIABLE ANNUITY CONTRACT
Processing Office: [AXA Equitable Life Insurance Company, P.O. Box 1547,
Secaucus, New Jersey 07096-1547
Telephone: (000)-000-0000
xxx.xxx-xxxxxxxxx.xxx]
This is the entire Contract. This Contract is issued in return for the
Contributions to be made to us under this Contract. This Contract becomes
effective on the Contract Date. The Annuitant and the Owner must be living on
the Contract Date.
In this Contract, "we", "our" and "us" mean AXA Equitable Life Insurance
Company. "You" and "your" mean the Owner.
We will provide the benefits and other rights pursuant to the terms of this
Contract.
TEN DAYS TO EXAMINE CONTRACT - Not later than ten days after you receive this
Contract, you may return it to us. We will cancel it and refund any Contribution
you made to us, plus or minus any investment gain or loss which applies to the
Variable Investment Options from the date such Contribution was allocated to
such Option to the date of cancellation.
AXA EQUITABLE LIFE INSURANCE COMPANY, A STOCK LIFE INSURANCE COMPANY.
Home Office address: [0000 Xxxxxx xx xxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000]
[ [
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Xxxxxxxxxxx X. Xxxxxxx Xxxxx Xxxxx Xxxxx, Vice President,
Chairman and Chief Executive Officer] Secretary and Associate General Counsel]
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE VARIABLE SEPARATE ACCOUNT MAY
INCREASE OR DECREASE IN VALUE. THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL
TO THE SUM OF ANY FIXED ANNUITY BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE
AMOUNT OF ANY VARIABLE ANNUITY BENEFIT MAY INCREASE OR DECREASE DEPENDING ON THE
INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT.
NON-PARTICIPATING
ICC10BASE1
This Contract consists of the cover page, the succeeding Contract pages, the
Data Pages, an Endorsement containing provisions applicable to the federal
income tax qualification of your Contract or the provisions specific to
Non-Qualified Contracts, any other Endorsements, and the optional benefit Riders
attached and listed in the Data Pages, which describe any optional benefits you
elected. This is the entire Contract.
TABLE OF CONTENTS
Page
DATA
Part I - DEFINITIONS 3
Part II - INVESTMENT OPTIONS 6
Part III - CONTRIBUTIONS AND ALLOCATIONS 10
Part IV - TRANSFERS AMONG INVESTMENT OPTIONS 11
Part V - WITHDRAWALS AND TERMINATION 12
Part VI - PAYMENT UPON DEATH 13
Part VII - ANNUITY BENEFITS 15
Part VIII - CHARGES 18
Part IX - GENERAL PROVISIONS 20
TABLE OF GUARANTEED ANNUITY PAYMENTS 23
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PART I - DEFINITIONS
SECTION 1.01 ANNUITANT
"Annuitant" means the individual shown as such in the Data Pages, or any
successor Xxxxxxxxx.
SECTION 1.02 ANNUITY ACCOUNT VALUE
"Annuity Account Value" means the sum of the amounts held for you in the
Investment Options.
SECTION 1.03 ANNUITY BENEFIT
"Annuity Benefit" means a benefit payable by us as described in Part VII.
SECTION 1.04 BUSINESS DAY
"Business Day" means generally any day on which the New York Stock Exchange is
open for trading and generally ends at 4:00 pm Eastern Time or such other time
as we state in writing to the Owner.
SECTION 1.05 CASH VALUE
"Cash Value" means an amount equal to the Annuity Account Value, less any
charges that apply as described in Part VIII and any charges that may apply as
described in any applicable Endorsement(s) or Rider(s).
SECTION 1.06 CODE
"Code" means the Internal Revenue Code of 1986, as amended at any time, or any
corresponding provisions of prior or subsequent United States revenue laws.
References to the "Code" in this Contract include references to applicable
Federal income tax regulations.
SECTION 1.07 CONTRACT
"Contract" means this Contract including the Data Pages, an Endorsement
containing provisions applicable to the federal income tax qualification of your
Contract or the provisions specific to Non-Qualified Contracts, any other
Endorsement(s), and the optional benefit Rider(s) attached hereto, which
describe any optional benefits you elected. This is the entire Contract.
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SECTION 1.08 CONTRACT DATE
"Contract Date" means the earlier of: (a) the date on which the Owner is
enrolled under the Contract according to our enrollment procedures, or (b) in
conjunction with certain exchanges, the date of enrollment under a prior
Contract. The Contract Date is shown in the Data Pages.
SECTION 1.09 CONTRACT DATE ANNIVERSARY
A Contract Date Anniversary is the last day of the Contract Year unless
otherwise stated in the Data Pages.
SECTION 1.10 CONTRACT YEAR
"Contract Year" means the twelve-month period starting on (i) the Contract Date
and (ii) the same date each subsequent year, unless we agree to another period.
SECTION 1.11 CONTRIBUTION
"Contribution" means a payment made to us under the Contract. See Section 3.01.
SECTION 1.12 EMPLOYER
"Employer" means, if applicable, an employer as defined in an Endorsement
attached hereto.
SECTION 1.13 INVESTMENT FUND
"Investment Fund" means a trust or other investment company or a separate class
(or series) of shares of a specified trust or investment company where each
class (or series) represents a separate portfolio in the specified trust or
investment company.
SECTION 1.14 INVESTMENT OPTION
"Investment Option" means the Guaranteed Interest Option, a Separate Account, or
a Variable Investment Option of a Separate Account.
SECTION 1.15 MATURITY DATE
"Maturity Date" means the date on which the annuity payments described in Part
VII are to commence. The Maturity Date is shown in the Data Pages and is based
on the original Annuitant's date of birth.
SECTION 1.16 NON-NATURAL OWNER
"Non-Natural Owner" means an Owner who is not an individual. Benefits
thereunder, are determined by the age of the Annuitant. If there is an ownership
change under a Contract owned by a Non-Natural Owner to an individual, the
original Annuitant or Joint Annuitant, if applicable, continues to determine the
benefits under the Contract.
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SECTION 1.17 OWNER
"Owner" means the person or entity shown as such on the cover page, in the Data
Pages, or in any Endorsement and includes any successor owner.
SECTION 1.18 PLAN
"Plan" means a retirement savings plan adopted by an Employer that is intended
to meet the requirements for qualification under either Section 401(a) of the
Code or 403(b) of the Code.
SECTION 1.19 PRIOR CONTRACT
"Prior Contract" means another contract or certificate issued by us, or one of
our affiliates, from which the Owner and we have agreed to transfer amounts to
this Contract.
SECTION 1.20 PROCESSING DATE
"Processing Date" is each Contract Date Anniversary. If the Contract Date
Anniversary is not a Business Day, then the Processing Date is the first
Business Day thereafter.
SECTION 1.21 PROCESSING OFFICE
"Processing Office" means the AXA Equitable Processing office shown on the cover
page of this Contract, or such other location we may state upon written notice
to you.
SECTION 1.22 SEPARATE ACCOUNT
"Separate Account" means any of the Separate Accounts described or referred to
in Sections 2.02 and 2.05 and the Data Pages of this Contract.
SECTION 1.23 TRANSACTION DATE
The Transaction Date is the Business Day we receive at the Processing Office a
Contribution or a transaction request providing the information we need.
Transaction requests must be in a form acceptable to us.
SECTION 1.24 VARIABLE INVESTMENT OPTION
"Variable Investment Option" means a separate account or a subdivision of a
Separate Account available under this Contract. A Variable Investment Option may
invest its assets in an Investment Fund.
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PART II - INVESTMENT OPTIONS
SECTION 2.01 GUARANTEED INTEREST OPTION
Any amount held in the Guaranteed Interest Option becomes part of the assets in
our general account, which supports the guarantees of the Contract and other
contracts.
The amount the Guaranteed Interest Option at any time is equal to:
o all amounts that have been allocated or transferred to the Guaranteed
Interest Option, plus
o the amount of any interest credited, less
o all amounts that have been withdrawn (including charges) or
transferred from such Option.
We will credit the amount held in the Guaranteed Interest Option with interest
at effective rates that we set periodically. We will set an annual guaranteed
interest rate that will remain in effect for a stated twelve-month period or a
calendar year. We will also set a minimum guaranteed interest rate that will be
effective for the duration of the Contract. The Data Pages show the initial
rate(s) that apply.
We guarantee that any rate so set after your Contract Date will never be less
than the lifetime minimum guaranteed interest rate shown in the Data Pages.
SECTION 2.02 SEPARATE ACCOUNT
We have established the Separate Account(s) and maintain such Account(s) in
accordance with the laws of New York State. Xxxxxx, realized and unrealized
gains and losses from the assets of the Separate Account(s) are credited to or
charged against it without regard to our other income, gains or losses. Assets
are placed in the Separate Account(s) to support this Contract and other
variable annuity contracts and certificates. Assets may be placed in the
Separate Account(s) for other purposes, but not to support contracts or policies
other than variable annuities and variable life insurance.
The Data Pages set forth the Separate Account(s). A Separate Account may be
subdivided into Variable Investment Options.
The assets of a Separate Account are our property. The portion of such assets
equal to the reserves and other contract liabilities will not be chargeable with
liabilities which arise out of any other business we conduct. We may transfer
assets of a Separate Account in excess of the reserves and other liabilities
with respect to such Account to another Separate Account or to our general
account.
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We may, at our discretion, invest Separate Account assets in any investment
permitted by applicable law. We may rely conclusively on the opinion of counsel
(including counsel in our employ) as to what investments we may make as law
permits.
SECTION 2.03 SEPARATE ACCOUNT ACCUMULATION UNITS AND UNIT VALUES
The amount you have in a Variable Investment Option at any time is equal to the
number of Accumulation Units you have in that Variable Investment Option
multiplied by the Variable Investment Option's Accumulation Unit Value at that
time. "Accumulation Unit" means a unit which is purchased in a Separate Account.
"Accumulation Unit Value" means the dollar value of each Accumulation unit in a
Separate Account on a given date. (If Variable Investment Options apply as
described in Section 2.02, then the terms of this Section 2.03 apply separately
to each Variable Investment Option, unless otherwise stated.)
Amounts allocated or transferred to a Separate Account are used to purchase
Accumulation Units of that Account. Units are redeemed when amounts are
deducted, transferred or withdrawn.
The number of Accumulation Units you have in a Separate Account at any time is
equal to the number of Accumulation Units purchased minus the number of Units
redeemed in that Account up to that time. The number of Accumulation Units
purchased or redeemed in a transaction is equal to the dollar amount of the
transaction divided by the Account's Accumulation Unit Value for that
Transaction Date.
We determine Accumulation Unit Values for each Separate Account for each
Valuation Period. A "Valuation Period" is each Business Day together with any
consecutive preceding non-business days. For example, for each Monday which is a
Business Day, the preceding Saturday and Sunday will be included to equal a
three-day Valuation Period.
Unless the following paragraph applies, the Accumulation Unit Value for a
Separate Account for any Valuation Period is equal to the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the ratio of
values: "(i) " and "(ii) ". Value "(i) " is the value of the Separate Account at
the close of business at the end of the current Valuation Period, before any
amounts are allocated to or withdrawn from the Separate Account in that Period.
Value "(ii)" is the value of the Separate Account at the close of business at
the end of the preceding Valuation Period, after all allocations and withdrawals
were made for that Period. For this purpose, "value of the Separate Account"
means the market value or, where there is no readily available market, the fair
value of the assets allocated to the Separate Account, as determined in
accordance with our rules, accepted accounting practices, and applicable laws
and regulations.
To the extent the Separate Account invests in Investment Funds, and the assets
of the Investment Funds are invested in a class or series of shares of a
specified trust or investment company, the Accumulation Unit Value of a Variable
Investment Option for any Valuation Period is equal to the Accumulation Unit
Value for that Fund on the immediately preceding Valuation Period multiplied by
the Net Investment Factor for that Fund for the current Valuation Period. The
Net Investment Factor for a Valuation Period is (a) divided by (b) minus (c),
where:
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(a) is the value of the Variable Investment Option's shares of the related
Investment Fund at the end of the Valuation Period (before taking into
account any amounts allocated to or withdrawn from the Variable
Investment Option for the Valuation Period and after deduction of
investment advisory fees and direct operating expenses of the
specified trust or investment company; for this purpose, we use the
share value reported to us by the specified trust or investment
company);
(b) is the value of the Variable Investment Option's shares of the related
Investment Fund at the end of the preceding Valuation Period (taking
into account any amounts allocated or withdrawn for that Valuation
Period);
(c) is the Contract Fee (see Section 8.04) for the expenses and risks of
the Contract, times the number of calendar days in the Valuation
Period, plus any charge for taxes or amounts set aside as a reserve
for taxes.
SECTION 2.04 AVAILABILITY OF INVESTMENT OPTIONS
Section 3.01 describes how Contributions are allocated among Investment Options
based on your election among the available Variable Investment Options. Your
election is subject to the following:
(a) If the Contributions are made pursuant to the terms of a Plan, then
Investment Options available may be subject to the terms of such Plan,
as reported to us by the Owner.
(b) The available Investment Options on the Contract Date are shown in the
Data Pages. We have the right to add Investment Options, to limit the
number of Investment Options which you may elect, and to limit or
terminate new allocations to an Investment Option. We will not limit
or terminate allocations to the Guaranteed Interest Option unless so
provided in the Data Pages.
SECTION 2.05 CHANGES WITH RESPECT TO SEPARATE ACCOUNT
In addition to the rights reserved pursuant to subsection (b) of Section 2.04,
and Sections 9.01 and 9.02, we have the right, subject to compliance with
applicable law, including approval of Contract owners if required:
(a) to add Variable Investment Options (or sub-funds of Variable
Investment Options) to, or to remove Variable Investment Options (or
sub-funds) from, the Separate Account, or to add other separate
accounts;
(b) to combine any two or more Variable Investment Options or sub-funds
thereof;
(c) to transfer the assets we determine to be the share of the class of
contracts to which this Contract belongs from any Variable Investment
Option to another Variable Investment Option;
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(d) to operate the Separate Account or any Variable Investment Option as a
management investment company under the Investment Company Act of
1940, in which case charges and expenses that otherwise would be
assessed against an underlying mutual fund would be assessed against
the Separate Account;
(e) to operate the Separate Account or any Variable Investment Option as a
unit investment trust under the Investment Company Act of 1940;
(f) to deregister the Separate Account under the Investment Company Act of
1940;
(g) to restrict or eliminate any voting rights as to the Separate Account;
(h) to cause one or more Variable Investment Options to invest some or all
of their assets in one or more other trusts or investment companies.
If the exercise of these rights results in a material change in the underlying
investment of a Separate Account, you will be notified of such exercise, as
required by law.
A Separate Account or Variable Investment Option which may be added by us as
described above may be one with respect to which: (i) there may be periods
during which Contributions may be restricted pursuant to the maturity terms of
such Separate Account or Investment Fund, (ii) amounts therein may be
automatically liquidated pursuant to the investment policy of the Separate
Account, and (iii) investments therein may mature. We will have the right to
reallocate amounts arising from liquidation or maturity according to your
allocation instructions then in effect unless you specify other instructions
with respect to such amounts. If no such allocation instructions have been made,
the reallocation will be made to a designated Investment Option, or to the next
established Separate Account or Investment Fund of the same type as described in
this paragraph, if applicable, as specified in the Data Pages.
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PART III - CONTRIBUTIONS AND ALLOCATIONS
SECTION 3.01 CONTRIBUTIONS, ALLOCATIONS
You may allocate Contributions to, or transfer among the Investment Options
available under this Contract. You need not allocate Contributions to each
available Investment Option. You may change the allocation election at any time
by sending us the proper form. Allocation percentages must be in whole numbers
(no fractions) and must total 100%.
Each Contribution is allocated (after deduction of any charges that may apply)
in accordance with the allocation election in effect on the Transaction Date.
Contributions made to a Separate Account purchase Accumulation Units in that
Account, using the Accumulation Unit Value for that Transaction Date.
SECTION 3.02 LIMITS ON CONTRIBUTIONS
We have the right not to accept any Contribution which is less than the minimum
amount shown in the Data Pages. The Data Pages indicate other Contribution
limitations and requirements which may apply. We also have the right, in
addition to any such limitations and requirements, upon advance notice to you,
to:
(a) change such limitations and requirements to apply to Contributions
made after the date of such change, and
(b) discontinue acceptance of Contributions under this Contract with
respect to all Contracts or with respect to all Contracts of the same
class.
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PART IV - TRANSFERS AMONG INVESTMENT OPTIONS
SECTION 4.01 TRANSFER REQUESTS
You may request to transfer all or part of the amount held in an Investment
Option to one or more of the other Options. The request must be in a form we
accept. All transfers will be made on the Transaction Date. Transfers are
subject to the terms of Sections 2.04, 4.02 and our rules in effect at the time
of transfer. With respect to a Separate Account, the transfers will be made at
the Accumulation Unit Value for that Transaction Date.
SECTION 4.02 TRANSFER RULES
The transfer rules which apply are described in the Data Pages. A transfer
request will not be accepted if it involves less than the minimum amount, if
any, stated in the Data Pages (unless the Annuity Account Value is less than
such amount). We have the right to change our transfer rules. Any change will be
made upon advance notice to you.
Transfers to a Variable Investment Option will also be subject to the rules of
the Investment Fund in which it invests, and in accordance with Sections 5.01,
8.02 and 8.03.
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PART V - WITHDRAWALS AND TERMINATION
SECTION 5.01 WITHDRAWALS
Unless otherwise stated in the Data Pages, you may request, pursuant to our
procedures then in effect, a withdrawal from the Investment Options before the
Maturity Date. The request must be in a form we accept.
On the Transaction Date, we will pay the amount of the withdrawal requested or,
if less, the Cash Value. The amount to be paid will be withdrawn on a pro-rata
basis from the amounts held for you in the Investment Options, unless you elect
otherwise and unless otherwise stated in the Data Pages.
We will not accept a withdrawal request if it involves less than the minimum
amount, if any, stated in the Data Pages. Further conditions or restrictions may
apply if stated in the Data Pages or in an Endorsement or Rider attached hereto.
We will withdraw any redemption fee or other charge that an Investment Fund
requires us to deduct from your Account Value. Such amounts, less any applicable
processing fee, will be remitted to the Investment Fund. Such withdrawals may
cause Contract termination as provided in Section 5.02.
SECTION 5.02 CONTRACT TERMINATION
Payment of the Death Benefit terminates the Contract. In addition, we reserve
the right to terminate this Contract if one or more of the following events
occurs, unless otherwise specified in any Endorsement, Rider or Data Pages
attached hereto:
(a) A withdrawal is made under Section 5.01 that would result in an Annuity
Account Value of an amount less than the minimum amount stated in the Data
Pages.
(b) If, before the Maturity Date, no Contributions are made during the last
three completed Contract Years and the Annuity Account Value is less than
the amount described in (a) above.
(c) If as a result of the deduction of a charge or fee, or you make a
withdrawal that reduces the Annuity Account Value to zero.
(d) Payment of the Death Benefit terminates the Contract.
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PART VI - PAYMENT UPON DEATH
SECTION 6.01 BENEFICIARY
You give us the name of the beneficiary ("Beneficiary") who is to receive any
death benefit ("Death Benefit") payable because of your death. Any such change
must be made in writing. A change will take effect as of the date the written
change is executed, whether or not you are living on the date of receipt at our
Processing Office. However, we will not be liable as to any payments we make or
actions we take before we receive any such change at our Processing Office.
You may name one or more persons to be primary Beneficiary and one or more other
persons to be successor Beneficiary if the primary Beneficiary dies before the
Owner. Unless you direct otherwise, if you have named two or more persons as
Beneficiary, the Beneficiary will be the named person or persons who survive you
and payments will be made to such persons in equal shares or to the survivor.
Any part of a Death Benefit for which there is no named Beneficiary living at
your death will be payable in a single sum to the Owner's surviving spouse, if
any; if there is no surviving spouse, then to the surviving children in equal
shares; if there are no surviving children, then to your estate.
You may change the Beneficiary during your lifetime and while coverage under the
Contract is in force. If the Contract is owned by a Non-Natural Owner, any
applicable Death Benefit will be based on the death of the Annuitant or Joint
Annuitant, if applicable. For purpose of this Section, "you" or "your" refer to
the Annuitant when describing the Death Benefit under a Non-Natural Owner
Contract.
SECTION 6.02 PAYMENT UPON DEATH
Upon receipt of due proof of your death before the Maturity Date, we will pay a
Death Benefit to the Beneficiary named under Section 6.01. Payment is subject to
the terms of Section 6.01 and any special rules which may apply as described in
the Data Pages and any Endorsement or Rider attached hereto.
For the portion of the Death Benefit payable to a Beneficiary, the date on which
we received the Beneficiary requirements is the "Payment Transaction Date".
Payment of a Death Benefit will be made upon our receipt of the following
"Beneficiary Requirements":
(i) a properly completed written request;
(ii) due proof of death (as evidenced by a certified copy of the death
certificate);
(iii) proof satisfactory to us that the person claiming the Death Benefit is the
person entitled to receive it;
(iv) tax information required by the Code; and (v) any other forms we require.
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Upon receipt of notification of your death, if we have not received the
Beneficiary Requirements described above, your Contract will continue to remain
invested in the Investment Options and no transactions will be permitted.
Unless otherwise specified in an optional Rider or the Data Pages attached
hereto, the Death Benefit is equal to the Annuity Account Value on the Payment
Transaction Date.
If an optional Guaranteed Minimum Death Benefit Rider is elected, the provisions
of such Rider supersede the previous paragraph. The Guaranteed Minimum Death
Benefit is determined according to the terms and conditions of the Guaranteed
Minimum Death Benefit Rider. However, if the Death Benefit described in the
previous paragraph is greater than the benefit provided under an optional
Guaranteed Minimum Death Benefit Rider, the Death Benefit will equal such
greater amount.
SECTION 6.03 MANNER OF PAYMENT
The Death Benefit will be paid to the Beneficiary in a single sum unless you
elect a different form of Death Benefit payout (such as a life annuity) and
provided that we offer such at the time the Death Benefit is payable. The
Beneficiary will have no right to change the election; however, (i) we will
apply a predetermined Death Benefit annuity payout election only if payment of
the Death Benefit begins within one year following the date of death; (ii) we
will not apply a predetermined Death Benefit payout election if doing so would
violate any Federal income tax rules or guidelines or any other applicable law.
Subject to the foregoing, a Beneficiary who becomes a successor owner or who
continues the Contract under a Beneficiary Continuation Option, if available,
will not have the right to change your election.
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PART VII - ANNUITY BENEFITS
SECTION 7.01 ELECTION OF ANNUITY BENEFITS
As of the Maturity Date the Annuity Account Value will be applied to provide for
the Normal Form of Annuity Benefit (described below). However, you may instead
elect (i) to have the Cash Value paid in a single sum that will not be less than
the minimum benefits required by the applicable Interstate Insurance Product
Regulation Commission Uniform Standard, (ii) to apply the Annuity Account Value
or Cash Value, whichever applies pursuant to the first paragraph of Section
7.05, to provide an Annuity Benefit of any form offered by us or one of our
affiliated life insurance companies, or (iii) to apply the Cash Value to provide
any other form of benefit payment we offer and applicable laws and regulations.
At the time an Annuity Benefit is purchased, we will issue a supplementary
contract which reflects the Annuity Benefit terms. We will grant a paid-up
annuity benefit that complies with the applicable Interstate Insurance Product
Regulation Commission Uniform Standard.
We will provide notice and election forms to you not more than six months before
the Maturity Date.
We will have the right to require you to furnish any information we need to
provide an Annuity Benefit. We will be fully protected in relying on such
information and need not inquire as to its accuracy or completeness.
SECTION 7.02 MATURITY DATE
The Maturity Date is shown in the Data Pages, but may be changed by us in
conformance with applicable law. The Maturity Date may not be earlier than
thirteen months following the Contract Date.
SECTION 7.03 ANNUITY BENEFIT
Payments under an Annuity Benefit will be made monthly. You may elect instead to
have the Annuity Benefit paid at other intervals, such as every three months,
six months, or twelve months, instead of monthly, subject to our rules at the
time of your election or as otherwise stated in the Data Pages or any
Endorsement attached hereto. This election may be made at the time the Annuity
Benefit form as described in Section 7.04 is elected. In that event, all
references in this Contract to monthly payments, with respect to the Annuity
Benefit to which the election applies, will be deemed to mean payments at the
frequency elected.
SECTION 7.04 ANNUITY BENEFIT FORMS
The "Normal Form" of Annuity Benefit is the Life-Period Certain Annuity Form
described below, unless another form of annuity is determined to be the Normal
Form of Annuity pursuant to the terms of the Plan, if applicable, and/or the
requirements of the Employee Retirement Income Security Act of 1974 (ERISA), as
amended, or any other law that applies.
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The Life-Period Certain Annuity is an annuity that is payable during the
lifetime of the person upon whose life the payments depend, but with a maximum
of 10 years of payments guaranteed (10 years certain period). That is, if the
original payee dies before the certain period has ended, payments will continue
to the Beneficiary named to receive such payments for the balance of the certain
period.
We may offer other annuity forms as available from us or from one of our
affiliated life insurance companies. Such a form may, for example, include the
Joint and Survivor Life Annuity Form which provides monthly payments while
either of two persons upon whose lives such payments depend is living. The
monthly amount to be continued when only one of the persons is living will be
equal to a percentage, as elected, of the monthly amount that was paid while
both were living.
SECTION 7.05 AMOUNT OF ANNUITY BENEFITS
If you elect pursuant to Section 7.01 to have an Annuity Benefit paid in lieu of
the Cash Value, then the amount applied to provide the Annuity Benefit will,
unless otherwise stated in the Data Pages or required by applicable laws or
regulations, be (i) the Annuity Account Value if the annuity form elected
provides payments for a person's remaining lifetime or (ii) the Cash Value if
the annuity form elected does not provide such lifetime payments.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any taxes which apply on annuity purchase payments. If we have previously
deducted charges for taxes from Contributions, we will not again deduct charges
for the same taxes before an Annuity Benefit is provided. The balance will be
used to purchase the Annuity Benefit on the basis of either (i) the Tables of
Guaranteed Annuity Payments or (ii) our then current individual annuity rates,
whichever rates would provide a larger benefit with respect to the payee.
The Annuity Benefit at the time of commencement will not be less than that which
would be provided by the application of an amount to purchase any single
consideration immediate annuity contract of the same form of annuity offered by
us at the time to the same class of annuitants. The amount applied to provide a
life contingent annuity payout option will be the Annuity Account Value.
SECTION 7.06 CONDITIONS FOR PAYMENT
We may require proof acceptable to us that the person on whose life a benefit
payment is based is alive when each payment is due. We will require proof of the
age of any such person on whose life an Xxxxxxx Xxxxxxx is based.
If a benefit was based on information that is later found not to be correct,
such benefit will be adjusted on the basis of the correct information. The
adjustment will be made in the number or amount of the benefit payments, or any
amount used to provide the benefit, or any combination. Overpayments by us will
be charged against future payments. Underpayments will be added to future
payments. Our liability is limited to the correct information and the actual
amounts used to provide the benefits.
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If the age (or sex, if applicable as stated in the Tables of Guaranteed Annuity
Payments) of any person upon whose life an Annuity Benefit depends has been
misstated, any benefits will be those which would have been purchased at the
correct age (or sex). Any overpayments or underpayments made by us will be
charged or credited with interest at 6% or the then current Guaranteed Interest
Rate; we will choose which rate will apply on a uniform basis for like
Contracts. Such interest will be deducted from or added to future payments.
If we receive acceptable proof that (i) a payee entitled to receive any payment
under the terms of this Contract is physically or mentally incompetent to
receive such payment or a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments to such other person or institution. In the case of a minor, the
payments will not exceed $200, or such other amount as may be shown in the Data
Pages. We will have no further liability with respect to the payments so made.
If the amount to be applied hereunder is less than the minimum amount stated in
the Data Pages, we may pay the amount to the payee in a single sum instead of
applying it under the annuity form elected.
SECTION 7.07 CHANGES
We have the right, upon advance notice to you, to change at any time after the
fifth anniversary of the Contract Date and at intervals of not less than five
years, the actuarial basis used in the Tables of Guaranteed Annuity Payments for
new Contributions. The effective date that applies to each set of purchase rates
will be indicated. However, no such change will apply to (a) any Annuity Benefit
provided before the change or (b) Contributions made before such change which
are applied to provide an Annuity Benefit.
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PART VIII - CHARGES
SECTION 8.01 ADMINISTRATIVE AND OTHER CHARGES DEDUCTED FROM
ANNUITY ACCOUNT VALUE
As of each Processing Date, we will deduct Administrative Charges or other
Charges related to the administration and/or distribution of this Contract from
the Annuity Account Value. Such Charges are shown in the Data Pages.
If specified in the Data Pages, the Charges will be deducted in full or prorated
for the Contract Year, or portion thereof, in which the Contract Date occurs or
in which the Annuity Account Value is withdrawn or applied to provide an Annuity
Benefit or Death Benefit. If so, the Charges will be deducted when withdrawn or
so applied.
The amount of any such Charge will in no event exceed any maximum amount shown
in the Data Pages, subject to any maximum amount permitted under any applicable
law.
We have the right to change the amount of the Charges with respect to future
Contributions. We will give you advance notice of any such change.
SECTION 8.02 TRANSFER CHARGES
We have the right to impose a charge with respect to any transfer among
Investment Options after the number of free transfers shown in the Data Pages.
The amount of such charge will be set forth in a notice from us to you and will
in no event exceed any maximum amount stated in the Data Pages.
SECTION 8.03 INVESTMENT FUND REDEMPTION FEE
We reserve the right to charge your Annuity Account Value for any redemption fee
or other transfer charge imposed by an Investment Fund. Such amounts will be
withdrawn from your Annuity Account Value as described in Section 5.01.
SECTION 8.04 CONTRACT FEE
The assets of the Variable Investment Options of the Separate Account will be
subject to a daily asset charge. The Contract Fee is a daily separate account
charge. and is for, operations, administration and distribution expenses and
mortality and expense risk that we assume. The fee will be made pursuant to item
(c) of "Net Investment Factor" as defined in Section 2.03. Such fee will be
applied after any deductions to provide for taxes. It will be at a rate not to
exceed the maximum annual rate stated in the Data Pages. We have the right to
charge less on a current basis; the actual fee to apply, for at least the first
Contract Year, is also stated in the Data Pages.
We may charge a Variable Investment Option Facilitation Charge in order to make
certain funds available as Variable Investment Options under this Contract. This
charge, if applicable, is assessed daily based on the net asset value of the
Variable Investment Options that we specify.
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The Variable Investment Option Facilitation Charge is equivalent to an annual
rate of as shown in the Data Pages.
SECTION 8.05 CHARGE FOR TAXES
We reserve the right to deduct from the amount applied to provide an Annuity
Benefit a charge that we determine which is designed to approximate certain
taxes that may be imposed on us, including but not limited to premium taxes
which may apply in your state. If the tax to which this charge relates is
imposed on us at a time other than when amounts are applied to an Annuity
Benefit or if required by your state, we reserve the right to deduct this charge
for taxes from Contributions. The balance will be used to purchase the Annuity
Benefit on the basis of either (i) the Tables of Guaranteed Annuity Payments or
(ii) our then current annuity rates, whichever rates would provide a larger
benefit with respect to the payee.
SECTION 8.06 CHANGES
In addition to our right to reduce or waive charges as described in this Part
VIII, we have the right, upon advance notice to you, to increase the amount of
any charge stated in the Data Pages, subject to (a) any maximum amount provided
in this Part VIII or the Data Pages and (b) with respect to Administrative or
Other Charges deducted from the Annuity Account Value, the application of any
increase only to Contributions made after the date of the change.
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PART IX - GENERAL PROVISIONS
SECTION 9.01 CONTRACT
This Contract is the entire Contract as defined in Part I between the parties.
It will govern with respect to our rights and obligations.
This Contract may not be changed, nor may any of our rights or rules be waived,
except in writing and by our authorized officer.
SECTION 9.02 STATUTORY COMPLIANCE
We have the right to change this Contract without the consent of any other
person in order to comply with any laws and regulations that apply. Such right
will include, but not be limited to, the right to conform this Contract to
reflect requirements of the Code and Treasury regulations or published rulings
of the Internal Revenue Service, the Employee Retirement Income Security Act of
1974 and regulations thereunder, and federal securities laws.
Any paid-up annuity, cash surrender value or death benefits available under this
Contract are not less than the minimum benefits required by the applicable
Interstate Insurance Product Regulation Commission Uniform Standards.
These benefits will be adjusted as follows:
a) increased by any amounts credited to this Contract by us;
b) decreased by any indebtedness to us; and
c) it will be reduced by any prior withdrawals from this Contract.
This Contract is approved under the authority of the Interstate Insurance
Product Regulation Commission ("ICC") and issued under the Commission standards.
Any provision of this Contract that on the provision's effective date is in
conflict with ICC standards for this product type is hereby amended to conform
to the ICC standards for this product type as of the provision's effective date.
SECTION 9.03 DEFERMENT
The use of proceeds to provide a payment of a Death Benefit and payment of any
portion of the Annuity Account Value (less any Withdrawal Charge that applies)
will be made within seven days after the Transaction Date of the request.
Payments or proceeds from the Variable Investment Options can be deferred for
any period during which (1) the New York Stock Exchange is closed or trading is
restricted, (2) sales of securities or determination of the fair value of a
Variable Investment Option's assets is not reasonably practicable because of an
emergency, or (3) when the Securities and Exchange Commission has determined
that a state of emergency exists that may make determination and payment
impractical. We can defer payment or transfer of any portion of the Annuity
Account Value in the Guaranteed Interest Option for up
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to six months while you are living, subject to any required written approval
from the Insurance Supervisory Official in your jurisdiction. We will provide
you with the specific date on which the transfer will be effective, the reason
for the delay, and the value of the transfer as of the date we receive your
request.
SECTION 9.04 REPORTS AND NOTICES
At least once each year until the Maturity Date, we will send you a report
showing on the start and end dates for the current period for:
(a) the amount of Contributions, withdrawals, charges and cost of any
Riders to the Annuity Account Value;
(b) the dollar amount in the Guaranteed Interest Option, including any
interest credits;
(c) the total number of Accumulation Units in each Separate Account or
Variable Investment Option;
(d) the Accumulation Unit Values;
(e) the dollar amount in each Separate Account or Variable Investment
Option;
(f) the Cash Value; and
(g) the amount of the Death Benefit.
A report as described above or any written notice as described in any other
Section will be satisfied by our mailing any such report or notice to your last
known address as shown in our records. The information provided will be as of a
date not more than four months prior to the date of mailing. We will make copies
of the reports available to you upon request at no additional cost.
Notices sent to us will not be effective until received at the Processing
Office. Your Contract Number should be included in all correspondence.
SECTION 9.05 CHANGE IN OWNER
Any changes in Owner designation, unless otherwise specified by the Owner, shall
take effect on the date the notice of change is signed by the Owner, subject to
any payments made or actions taken by us prior to receipt of this notice.
SECTION 9.06 ASSIGNMENTS AND TRANSFERABILITY
You may assign this Contract before the Maturity Date but we will not be bound
by an assignment unless we have received it in writing at our Processing Office.
The assignment shall take effect on the date the notice of assignment is signed
subject to any payments made or actions taken by us prior to receipt of this
notice. Your rights and those of any other person referred to in
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this Contract will be subject to the assignment. We assume no responsibility for
the validity of an assignment or for any rights or obligations between you and
the Assignee.
SECTION 9.07 PAYMENTS
All amounts payable by you must be paid by check drawn on a bank that is subject
to regulation by the United States or an agency or instrumentality thereof or a
State, and payable to us (in United States dollars) or by any other method
acceptable to us.
We will pay all amounts hereunder by check (drawn on a United States bank in
United States dollars) or, if so agreed by you and us, by wire transfer.
Any requirement for distribution or withdrawal of interest in the Contract shall
be fully discharged by payment of the Death Benefit, Annuity Account Value or
Cash Value, whichever is applicable, to the Owner or the Beneficiary, as the
case may be and mailed to the address as shown in our records by United States
mail unless we agree to transmit the funds to another person or in another form
in accordance with the terms and conditions of the Contract.
SECTION 9.08 HOW TO COMMUNICATE WITH US
All transaction requests and other notices to us must be in writing in a form
satisfactory to us, and delivered by U.S. mail to our Processing Office, except
to the extent we agree, by advance written notification to you, to receive such
requests or notices in another manner. We may choose to change a previously
accepted manner of communication at our discretion. Transaction requests or
other communications sent to us will not be effective until received at the
Processing Office. Your Contract Number should be included in all
correspondence.
SECTION 9.09 MISSTATEMENT OF AGE
If the age of any person upon whose life or age a benefit provided under an
optional Benefit Rider, depends ("Covered Person") has been misstated, any such
benefits will be that which would have been purchased on the basis of the
correct age. If the Covered Person would not have been eligible for that Rider
at the correct age, (i) the Rider will be rescinded; (ii) any charges that were
deducted for the benefit will be refunded and applied to the Annuity Account
Value of the Contract, and (iii) only the Death Benefit provided under Section
6.02 will apply.
SECTION 9.10 INCONTESTABILITY
This Contract will be incontestable from its date of issue.
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TABLE OF GUARANTEED ANNUITY PAYMENTS
AMOUNT OF ANNUITY BENEFIT PAYABLE MONTHLY ON THE LIFE ANNUITY FORM
WITH TEN* YEARS CERTAIN PROVIDED BY APPLICATION OF $1,000.
Monthly Income Monthly Income
Ages Male Female Ages Male Female
---- ---- ------ ---- ---- ------
60 2.97 2.74 78 4.39 3.99
61 3.03 2.78 79 4.50 4.10
62 3.08 2.83 80 4.62 4.20
63 3.14 2.88 81 4.78 4.34
64 3.21 2.94 82 4.95 4.48
65 3.27 2.99 83 5.13 4.64
66 3.34 3.05 84 5.33 4.80
67 3.41 3.11 85 5.53 4.97
68 3.48 3.17 86 5.74 5.16
69 3.56 3.24 87 5.97 5.35
70 3.64 3.31 88 6.20 5.54
71 3.72 3.38 89 6.43 5.75
72 3.81 3.46 90 6.67 5.96
73 3.90 3.54 91 6.91 6.17
74 3.99 3.62 92 7.17. 6.40
75 4.08 3.71 93 7.44 6.64
76 4.18 3.80 94 7.74 6.89
77 4.29 3.89 95 8.05 7.16
* At age 80 and over the rates are adjusted so that the certain period does not
exceed life expectancy. See Data Pages for Period Certain tables for ages 80 and
older.
The amount of income provided under an Annuity Benefit payable on the Life
Annuity Form with Ten Years Certain is based on 1.5% interest and mortality
equal to 61% for males and 57% for females of the Annuity 2000 Mortality Table
projected at 1.15% for males and 1.35% for females for a number of years equal
to attained age minus 20, but not less than 30.
Amounts required for ages or for annuity forms not shown in the above Table or
for other annuity forms will be calculated by us on the same actuarial basis.
If a variable annuity form is available from us and elected pursuant to Section
7.01, then the amounts required will be calculated by us based on the 1983
Individual Annuity Mortality Table "a" projected with modified Scale "G" and a
modified two year age setback and on an Assumed Base Rate of Net Investment
Return of 5.0%.
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