1
[METLIFE LOGO]
METROPOLITAN LIFE INSURANCE COMPANY
Xxx Xxxxxxx Xxxxxx, Xxx Xxxx, XX 00000 - 0000
INCOME PAYMENT CONTRACT
This is a legal contract between you and MetLife and contains your benefits and
rights and your beneficiary's rights in an easy to read Question and Answer
format. Please read this contract carefully.
CONTRACT NUMBER: [0000] ISSUE DATE: [September 15, 1999]
CONTRACT OWNER: [ABC Company] INITIAL PAYMENT DATE: [October 1, 2002]
ANNUITANT: [Xxxx Xxxxx] ASSUMED INVESTMENT [5%]
RETURN (AIR):
DATE OF BIRTH [AND SEX] [May 1, 1950] BENEFICIARY: [Xxxxx Xxxxx]
OF ANNUITANT: [Male]
JOINT ANNUITANT: [Xxxx Xxxxx] SEPARATE ACCOUNT [1.25%]
CHARGE:
DATE OF BIRTH [AND SEX] [March 3, 1948] [TYPE OF ANNUITY: See the specifications
OF JOINT ANNUITANT: [Female] page]
This contract is not eligible for dividends. There is no cash surrender benefit.
To determine if there is any death benefit payable, see the specifications page.
ALL VALUES PROVIDED BY THIS CONTRACT WHICH ARE BASED ON THE INVESTMENT
EXPERIENCE OF THE SEPARATE ACCOUNT ARE VARIABLE AND ARE NOT GUARANTEED AS TO
AMOUNT. THE INVESTMENT PERFORMANCE REFLECTS THE UPWARD OR DOWNWARD PERFORMANCE
OF THE ASSETS IN THE UNDERLYING PORTFOLIOS ADJUSTED FOR ANY DIVIDEND OR CAPITAL
GAIN DISTRIBUTION PAID BY THE PORTFOLIO AND DEDUCTIONS FOR CHARGES AND EXPENSES.
AVAILABLE SEPARATE ACCOUNT INVESTMENT DIVISIONS AS OF THE ISSUE DATE ARE: [STATE
STREET RESEARCH GROWTH, METLIFE STOCK INDEX, XXXXXX BROTHERS AGGREGATE BOND
INDEX, STATE STREET RESEARCH DIVERSIFIED, XXXXXX OAKMARK LARGE CAP VALUE AND X.
XXXX PRICE LARGE CAP GROWTH DIVISIONS]. A DESCRIPTION OF EACH OF THESE DIVISIONS
IS INCLUDED IN THE PROSPECTUS.
With the combined annual sub-account charge consisting of a minimum 1.25%
currently for any Investment Division, and the smallest rate of investment
return required to ensure that the dollar amount of the variable annuity
payments does not decrease is 6.25% for variable annuity options based on an
Assumed Investment Return of 5%.
10-DAY RIGHT TO EXAMINE -- You may return your contract to MetLife or the person
through whom you bought it within 10 days from the date you receive it. If you
return it within the 10-day period, your contract will be canceled from the
Issue Date. We will refund any purchase payment made.
/s/ Xxxxx X. Xxxxxx /s/ Xxxxxx X. Xxxxxxxxx
Xxxxx X. Xxxxxx Xxxxxx X. Xxxxxxxxx
Vice-President & Secretary Chairman of the Board
President and Chief Executive Officer
Cover Page
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SPECIFICATIONS PAGE
PAYMENT OF ANNUITY: METLIFE WILL MAKE PAYMENTS UNDER THIS CONTRACT AS FOLLOWS:
On and after the initial payment date, we will pay the following amounts to the
person(s) named by you.
[We will pay a fixed income of $X, monthly. In addition we will pay [schedule].
The amount of these payments is guaranteed by us regardless of investment
performance.]
We will [also] pay a variable income, the amount of which is not guaranteed but
will go up or down based on investment performance.
If the initial payment date is within 10 days of the issue date, the initial
amount[s] shown below will be a first payment, and later payments will be
calculated using the number of annuity units shown below as described in items 6
and 7 to reflect net investment performance. If the initial payment date is more
than 10 days after the issue date the initial amount[s] shown below [is] [are]
only an indication of what we would pay if actual net investment results are
exactly equal to the assumed investment return (AIR) and our first payment will
be calculated based on actual net investment results as of 10 days before the
payment due date.
Investment performance is determined separately for each investment division
that you have allocated money to, so each one is listed.
NUMBER OF
INVESTMENT DIVISIONS INITIAL AMOUNT[S] ANNUITY UNITS
[MetLife Stock Index] [$ 99.63] [ 9.19634]
[State Street Research Growth] [$100.83] [10.45732]
If the annuitant[s] [dies] [die] we will [only pay a death benefit as described
below.]
[If [the annuitant] [all annuitants] die[s] before [the 10th anniversary of the
initial payment date] we will continue payments to the beneficiary named by you
until that date.]
[If benefits are not guaranteed for a certain period of time, we will make no
payments after the annuitant [all annuitants] die[s].]
You may not cash in all or any part of this contract for a cash value.
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1. WHAT DO THE BASIC TERMS USED IN THIS CONTRACT MEAN?
"Annuitant" is the person or persons during whose lifetime an income
will be payable. If more than one annuitant is named and an annuitant
dies we will continue to make payments during the life of the surviving
annuitant(s), but possibly in a reduced amount (see specifications
page).
"Annuity Unit" is a unit of measurement used to determine the amount of
each variable income payment. The value of an annuity unit will vary
based on the investment experience of the investment division(s)
chosen.
"Assumed Investment Return" (AIR) is the hypothetical return used as a
benchmark to calculate variable income payments. The AIR, once
selected, will not change for the duration of the Contract. As
described in item 5, payments will increase if the actual net
investment return is greater than the AIR and will decrease if it is
less.
"Beneficiary" is the person or persons you name to whom the death
benefit, if any, is payable. You may name a contingent beneficiary to
become the beneficiary if all the beneficiaries die while the
annuitant(s) is (are) alive. If no beneficiary or contingent
beneficiary is named, or if none is alive when the annuitant(s) die(s)
we will pay the estate of the last annuitant to die. If more than one
beneficiary is alive when the annuitant(s) die(s), we will pay them in
equal shares unless you have chosen otherwise.
"Designated Office" is the administrative office for this contract. It
is now Investment Services Unit, Metropolitan Life Insurance Company,
000 Xxxx Xxxxxx, Xxx Xxxx, XX 00000-0000. If we change it, we will tell
you.
"Fund" refers to Metropolitan Series Fund, Inc. The Metropolitan Series
Fund is divided into portfolios each of which has its own investment
objectives.
"Investment Divisions" are part of the separate account as described in
item 4. The cover page shows the available divisions on the issue date.
"Net Investment Return" is the investment experience of an underlying
investment portfolio reduced by any separate account charges as
described in item 5.
"Specifications Page" is the first page after the Cover Page and
contains information about the scheduled payments under this contract,
and the death benefit, if any.
"We," "Us," "Our" and "MetLife" refer to Metropolitan Life Insurance
Company.
"You" and "Your" refer to the contract owner named on the cover page.
This is the person who has all the rights under this contract.
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2. HOW IS THE PURCHASE PAYMENT ALLOCATED UNDER THE CONTRACT?
You have chosen to allocate the purchase payment (after deduction of
any state premium tax and a $350 administrative fee) to the fixed
income option and the variable income option in any proportion, or
entirely to the variable income option. You have also chosen how much
of the variable income is based on each of the investment divisions of
the separate account. These allocations cannot be changed and no
transfer can be made between income options or investment divisions.
3. WHAT IS THE FIXED INCOME OPTION AND HOW WAS THE FIXED INCOME PAYMENT
(IF ANY) CALCULATED?
The fixed income option pays guaranteed amounts. It is calculated by
applying MetLife's fixed annuity purchase rates in effect on the issue
date to the amount of the purchase payment (after any applicable
deductions) allocated to the fixed income option.
4. WHAT IS THE SEPARATE ACCOUNT AND HOW DOES IT OPERATE?
It is our Separate Account E, an investment account we maintain
separate from our other assets.
We own the assets in the separate account. The separate account will
not be charged with liabilities that arise from any other business that
we conduct. We will add amounts to the separate account from other
contracts of ours.
The separate account is divided into investment divisions, each of
which buys shares in a corresponding portfolio of the fund. Thus, the
separate account does not invest directly in stocks, bonds, etc., but
leaves such investments to the fund to make. The shares of the fund are
also bought by other separate accounts of ours, our affiliates, and
other insurance companies. Thus, the investment experience of each
division will generally be the same as that of the corresponding
portfolio, reduced by charges under this certificate for services and
benefits we provide.
We keep track of each investment division of the separate account
separately using annuity units. An annuity unit is the measuring unit
used in calculating the amount of income payments. The number of
annuity units for each investment division is fixed and was determined
by dividing the initial amount(s) shown on the specifications page by
the annuity unit value as of the issue date. The value of an annuity
unit at the end of any valuation period is equal to the experience
factor for the current valuation period for the applicable division
(which reflects a separate account charge not to exceed [.000034035 per
day (an effective annual rate of 1.25%]) multiplied by the daily
equivalent factor of the AIR times the value of the annuity unit for
the immediately preceding valuation period.
A valuation period is the period between one calculation of an annuity
unit value and the next calculation. Normally, we calculate annuity
units once each day the New York Stock Exchange
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is open for trading, but we can delay this determination if the New
York Stock Exchange is closed for trading or if the Securities and
Exchange Commission has determined that an emergency exists making
valuation of assets in the separate account not reasonably practicable.
We may change when we calculate the annuity unit value by giving you 30
days notice, to the extent permitted by law.
We may make certain changes to the separate account if we think they
would best serve the interests of participants in or owners of
contracts that participate in Separate Account E or would be
appropriate in carrying out the purposes of such contracts. Any changes
will be made only to the extent and in the manner permitted by
applicable laws. Also, when required by law, we will obtain your
approval of the changes and approval from any appropriate regulatory
authority.
Examples of the changes to the separate account that we may make
include:
- To transfer any assets in an investment division to another
investment division, or to one or more other separate
accounts, or to our general account; or to add, combine, or
remove investment divisions in the separate account.
- To substitute, for the fund shares held in any investment
division, the shares of another class of the Metropolitan
Series Fund, Inc. or the shares of any other investment
permitted by law.
If any changes result in material change in the underlying investments
of an investment division to which an amount is allocated under this
certificate, we will notify you of the change. You may then make a new
choice of investment divisions.
5. HOW IS THE VARIABLE INCOME PAYMENT CALCULATED?
If you allocated some or all of the purchase payment to the variable
income option, then the initial variable income payment will be
calculated using purchase rates based on the AIR to compute the dollar
amounts shown on the specifications page. The dollar amounts specified
are converted into annuity units (as described in item 4) and all
subsequent payments are determined using these annuity units. Variable
income payments will vary up or down based on investment experience.
Income payments will increase if the net investment return since the
last payment is greater than the AIR on an annualized basis. Income
payments will decrease if the net investment return is less than the
AIR on an annualized basis. Therefore, the dollar amount of variable
income payments after the first will vary with the amount by which the
net investment return is greater or less than 5% per annum. For
example, if a division has a cumulative net investment return of 6%
over a one year period, the first variable income payment in the next
year will be approximately 1% greater than the payment on the same date
in the preceding year. If such net investment return is 4% over a
one-year period, the first variable income payment in the next year
will be approximately 1% less than the payment on the same date in the
preceding
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year. In either case subsequent payments will continue to vary with the
investment experience of that division.
Neither expenses actually incurred, other than taxes on the investment
returns, nor mortality actually experienced, shall adversely affect the
dollar amount of variable annuity payments to any annuitant for which
variable annuity payments have commenced.
6. WHEN ARE VARIABLE INCOME PAYMENT AMOUNTS DETERMINED AND HOW OFTEN WILL
THEY CHANGE?
Each variable income payment amount after the first will be determined
as of the [10th] day prior to the payment due date. Any such payment
may vary from the prior one. Payments other than the first are
determined by multiplying the number of annuity units provided on the
specifications page by the annuity unit value of the investment
division on the 10th day prior to the payment due date. The first
payment will be the initial amount(s) stated on the specifications page
if the payment is due within 10 days of the issue date. Otherwise, the
first payment will be determined as described above for all other
payments.
7. CAN TRANSFERS BE MADE WITHIN THIS CONTRACT?
No. Transfers to or from investment divisions or the fixed income
option are not permitted within this contract.
8. IS THERE A CASH SURRENDER VALUE UNDER THIS CONTRACT?
No. This contract may not be surrendered at any time. However, no
payee, annuitant or beneficiary may commute any payments unless it is
pursuant to a court order pursuant to Section 5036 or 5046 of the New
York Civil Practice Law and Regulation.
9. WHAT IF THE ANNUITANT'S AGE OR SEX ON THE ISSUE DATE IS NOT CORRECT AS
SHOWN ON THE COVER PAGE?
If the annuitant's age or sex on the issue date is not correct as shown
on the cover page, we will adjust the benefits under this contract. The
adjusted benefits will be those which the purchase payment would have
bought at the correct age and sex. If we have made an overpayment or
underpayment because of a misstatement, the amount of overpayment or
underpayment, with interest at 6%, will be, as appropriate, deducted
from or added to the payment or payments made after the adjustment.
10. WHAT IS THE DEATH BENEFIT IF THE ANNUITANT(S) DIES?
The Specifications Page indicates whether there is a death benefit and,
if so, what it is. Proof of death and a properly written claim form
must be received by us.
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11. WHAT ARE YOUR RIGHTS UNDER THIS CONTRACT?
You own the annuity described in this contract. You have the right at
any time to name or change the payee, including the beneficiary, to
whom benefits are payable under the annuity.
No change in payee will be effective until written notice of the change
is received by us. However, any change in a beneficiary designation
will take effect as of the date the request was signed but without
prejudice to us on account of any payment made by us before receipt of
the request or so soon thereafter that payment could not reasonably be
stopped. When contacting us you should mention the annuity contract
number and the name of the annuitant on the cover page.
12. CAN THIS CONTRACT AND THE PAYMENT PROVIDED UNDER IT BE ASSIGNED,
TRANSFERRED OR USED AS COLLATERAL FOR A LOAN
No. This contract and the payments provided under it are non-assignable
and will be exempt from the claims of creditors to the maximum extent
permitted by law.
13. WHAT INFORMATION MAY WE ASK FOR AFTER THE ISSUE DATE OF THIS CONTRACT?
We may require proof that the annuitant(s) is(are) alive on the due
date of a payment. If we have made a request, we may make no further
payments until proof is received. If the annuitant(s) is(are) not then
living, we will require proof of the authority of any person who makes
a claim to receive any amount payable on the annuitant's death.
14. DOES THIS CONTRACT CONTAIN ALL THE PROVISIONS AFFECTING IT?
Yes. This contract and any riders and endorsements included in it make
up the entire contract with us. We will never contest the validity of
this contract. Changes in its provisions may only be made in writing by
our President, a President of one of MetLife's business units,
Secretary or a Vice-President. No provision may be waived or changed by
any of our other employees, representatives or agents.
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INDEX
TOPIC QUESTION & ANSWER PAGE
Allocation of Purchase Payment 2 2
Assignment 12 5
Cash Surrender Value 8 4
Death of the Annuitant 10 4
Definitions 1 1
Entire Contract and Authority 14 5
Fixed Income Option 3 2
Information We May Ask For 13 5
Misstatement of Age or Sex 9 4
Owner's Rights 11 5
Separate Account 4 2
Transfers 7 4
Variable Income Payment 5, 6 3, 4
Please notify us promptly of any changes of address, beneficiary, etc. We will
write to you at your last known address. When you write to us, please mention
the annuity contract number and the name of the annuitant on the cover page.
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EXHIBIT A
Statement of Variations for Structured Settlement Income
Payment Contract RSC 99-02
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Question # Variable Wording
Entire contract The names, dates, time periods,
dollar amounts and percentages
throughout the contract will
vary to accommodate the
specific facts that apply to
each contract issued.
Specifications Page Bracketed paragraphs indicate
that specific amounts or
annuity units will be listed
for each contract. The death
benefit will vary depending on
the guaranteed period in the
contract.
Other bracketed areas in the
contract vary to conform to the
particular terms of the
contract as specified in the
questions itemized.
#4 Separate Account Charge The annual Separate Account
charge of 1.25% may be reduced
at a future date for
competitive reasons. It will
never be increased.
#5 AIR AIR will be 5% but may be
changed for future contracts to
a higher or lower percentage.
Such changes will not affect
existing contracts.
#9 Misstatement of Age or Sex The interest rate for
overpayments or underpay-ments
due to misstatements of age or
sex may vary as interest rates
change.
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[MetLife Logo]
METROPOLITAN LIFE INSURANCE COMPANY
Xxx Xxxxxxx Xxxxxx, Xxx Xxxx, XX 00000 - 0000
INCOME PAYMENT CONTRACT
This is a legal contract between you and MetLife and contains your benefits and
rights and your beneficiary's rights in an easy to read Question and Answer
format. Please read this contract carefully.
CONTRACT NUMBER: [0000] ISSUE DATE: [September 15, 1999]
CONTRACT OWNER: [ABC Company] INITIAL PAYMENT DATE: [October 1, 2002]
ANNUITANT: [Xxxx Xxxxx] ASSUMED INVESTMENT [5%]
RETURN (AIR):
DATE OF BIRTH [AND SEX] [May 1, 1950] BENEFICIARY: [Xxxxx Xxxxx]
OF ANNUITANT: [Male]
JOINT ANNUITANT: [Xxxx Xxxxx] SEPARATE ACCOUNT [1.25%]
CHARGE:
DATE OF BIRTH [AND SEX] [March 3, 1948] [TYPE OF ANNUITY: See the specifications
OF JOINT ANNUITANT: [Female] page]
This contract is not eligible for dividends. There is no cash surrender benefit.
To determine if there is any death benefit payable, see the specifications page.
ALL VALUES PROVIDED BY THIS CONTRACT WHICH ARE BASED ON THE INVESTMENT
EXPERIENCE OF THE SEPARATE ACCOUNT ARE VARIABLE AND ARE NOT GUARANTEED AS TO
AMOUNT. THE INVESTMENT PERFORMANCE REFLECTS THE UPWARD OR DOWNWARD PERFORMANCE
OF THE ASSETS IN THE UNDERLYING PORTFOLIOS ADJUSTED FOR ANY DIVIDEND OR CAPITAL
GAIN DISTRIBUTION PAID BY THE PORTFOLIO AND DEDUCTIONS FOR CHARGES AND EXPENSES.
AVAILABLE SEPARATE ACCOUNT INVESTMENT DIVISIONS AS OF THE ISSUE DATE ARE: [STATE
STREET RESEARCH GROWTH, METLIFE STOCK INDEX, XXXXXX BROTHERS AGGREGATE BOND
INDEX, STATE STREET RESEARCH DIVERSIFIED, XXXXXX OAKMARK LARGE CAP VALUE AND X.
XXXX PRICE LARGE CAP GROWTH DIVISIONS]. A DESCRIPTION OF EACH OF THESE DIVISIONS
IS INCLUDED IN THE PROSPECTUS.
With the combined annual sub-account charge consisting of a minimum 1.25%
currently for any Investment Division, and the smallest rate of investment
return required to ensure that the dollar amount of the variable annuity
payments does not decrease is 6.25% for variable annuity options based on an
Assumed Investment Return of 5%.
10-DAY RIGHT TO EXAMINE -- You may return your contract to MetLife or the person
through whom you bought it within 10 days from the date you receive it. If you
return it within the 10-day period, your contract will be canceled from the
Issue Date. We will refund any purchase payment made.
/s/ Xxxxx X. Xxxxxx /s/ Xxxxxx X. Xxxxxxxxx
Xxxxx X. Xxxxxx Xxxxxx X. Xxxxxxxxx
Vice-President & Secretary Chairman of the Board
President and Chief Executive Officer
Cover Page
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SPECIFICATIONS PAGE
PAYMENT OF ANNUITY: METLIFE WILL MAKE PAYMENTS UNDER THIS CONTRACT AS FOLLOWS:
On and after the initial payment date, we will pay the following amounts to the
person(s) named by you.
We will pay a variable income, the amount of which is not guaranteed but will go
up or down based on investment performance.
If the initial payment date is within 10 days of the issue date, the initial
amount[s] shown below will be a first payment, and later payments will be
calculated using the number of annuity units shown below as described in items 6
and 7 to reflect net investment performance. If the initial payment date is more
than 10 days after the issue date the initial amount[s] shown below [is] [are]
only an indication of what we would pay if actual net investment results are
exactly equal to the assumed investment return (AIR) and our first payment will
be calculated based on actual net investment results as of 10 days before the
payment due date.
Investment performance is determined separately for each investment division
that you have allocated money to, so each one is listed.
NUMBER OF
INVESTMENT DIVISIONS INITIAL AMOUNT[S] ANNUITY UNITS
[MetLife Stock Index] [$ 99.63] [ 9.19634]
[State Street Research Growth] [$100.83] [10.45732]
If the annuitant[s] [dies] [die] we will [only pay a death benefit as described
below.]
[If [the annuitant] [all annuitants] die[s] before [the 10th anniversary of the
initial payment date] we will continue payments to the beneficiary named by you
until that date.]
[If benefits are not guaranteed for a certain period of time, we will make no
payments after the annuitant [all annuitants] die[s].]
You may not cash in all or any part of this contract for a cash value.
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1. WHAT DO THE BASIC TERMS USED IN THIS CONTRACT MEAN?
"Annuitant" is the person or persons during whose lifetime an income
will be payable. If more than one annuitant is named and an annuitant
dies we will continue to make payments during the life of the surviving
annuitant(s), but possibly in a reduced amount (see specifications
page).
"Annuity Unit" is a unit of measurement used to determine the amount of
each variable income payment. The value of an annuity unit will vary
based on the investment experience of the investment division(s)
chosen.
"Assumed Investment Return" (AIR) is the hypothetical return used as a
benchmark to calculate variable income payments. The AIR, once
selected, will not change for the duration of the Contract. As
described in item 5, payments will increase if the actual net
investment return is greater than the AIR and will decrease if it is
less.
"Beneficiary" is the person or persons you name to whom the death
benefit, if any, is payable. You may name a contingent beneficiary to
become the beneficiary if all the beneficiaries die while the
annuitant(s) is (are) alive. If no beneficiary or contingent
beneficiary is named, or if none is alive when the annuitant(s) die(s)
we will pay the estate of the last annuitant to die. If more than one
beneficiary is alive when the annuitant(s) die(s), we will pay them in
equal shares unless you have chosen otherwise.
"Designated Office" is the administrative office for this contract. It
is now Investment Services Unit, Metropolitan Life Insurance Company,
000 Xxxx Xxxxxx, Xxx Xxxx, XX 00000-0000. If we change it, we will tell
you.
"Fund" refers to Metropolitan Series Fund, Inc. The Metropolitan Series
Fund is divided into portfolios each of which has its own investment
objectives.
"Investment Divisions" are part of the separate account as described in
item 4. The cover page shows the available divisions on the issue date.
"Net Investment Return" is the investment experience of an underlying
investment portfolio reduced by any separate account charges as
described in item 5.
"Specifications Page" is the first page after the Cover Page and
contains information about the scheduled payments under this contract,
and the death benefit, if any.
"We," "Us," "Our" and "MetLife" refer to Metropolitan Life Insurance
Company.
"You" and "Your" refer to the contract owner named on the cover page.
This is the person who has all the rights under this contract.
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2. HOW IS THE PURCHASE PAYMENT ALLOCATED UNDER THE CONTRACT?
You have chosen to allocate the purchase payment (after deduction of
any state premium tax and a $350 administrative fee) entirely to the
variable income option. You have also chosen how much of the variable
income is based on each of the investment divisions of the separate
account. These allocations cannot be changed and no transfer can be
made between investment divisions.
3. WHAT IS THE SEPARATE ACCOUNT AND HOW DOES IT OPERATE?
It is our Separate Account E, an investment account we maintain
separate from our other assets.
We own the assets in the separate account. The separate account will
not be charged with liabilities that arise from any other business that
we conduct. We will add amounts to the separate account from other
contracts of ours.
The separate account is divided into investment divisions, each of
which buys shares in a corresponding portfolio of the fund. Thus, the
separate account does not invest directly in stocks, bonds, etc., but
leaves such investments to the fund to make. The shares of the fund are
also bought by other separate accounts of ours, our affiliates, and
other insurance companies. Thus, the investment experience of each
division will generally be the same as that of the corresponding
portfolio, reduced by charges under this certificate for services and
benefits we provide.
We keep track of each investment division of the separate account
separately using annuity units. An annuity unit is the measuring unit
used in calculating the amount of income payments. The number of
annuity units for each investment division is fixed and was determined
by dividing the initial amount(s) shown on the specifications page by
the annuity unit value as of the issue date. The value of an annuity
unit at the end of any valuation period is equal to the experience
factor for the current valuation period for the applicable division
(which reflects a separate account charge not to exceed [.000034035 per
day (an effective annual rate of 1.25%]) multiplied by the daily
equivalent factor of the AIR times the value of the annuity unit for
the immediately preceding valuation period.
A valuation period is the period between one calculation of an annuity
unit value and the next calculation. Normally, we calculate annuity
units once each day the New York Stock Exchange is open for trading,
but we can delay this determination if the New York Stock Exchange is
closed for trading or if the Securities and Exchange Commission has
determined that an emergency exists making valuation of assets in the
separate account not reasonably practicable. We may change when we
calculate the annuity unit value by giving you 30 days notice, to the
extent permitted by law.
We may make certain changes to the separate account if we think they
would best serve the interests of participants in or owners of
contracts that participate in Separate Account E or
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would be appropriate in carrying out the purposes of such contracts.
Any changes will be made only to the extent and in the manner permitted
by applicable laws. Also, when required by law, we will obtain your
approval of the changes and approval from any appropriate regulatory
authority.
Examples of the changes to the separate account that we may make
include:
- To transfer any assets in an investment division to another
investment division, or to one or more other separate
accounts, or to our general account; or to add, combine, or
remove investment divisions in the separate account.
- To substitute, for the fund shares held in any investment
division, the shares of another class of the Metropolitan
Series Fund, Inc. or the shares of any other investment
permitted by law.
If any changes result in material change in the underlying investments
of an investment division to which an amount is allocated under this
certificate, we will notify you of the change. You may then make a new
choice of investment divisions.
4. HOW IS THE VARIABLE INCOME PAYMENT CALCULATED?
The initial variable income payment will be calculated using purchase
rates based on the AIR to compute the dollar amounts shown on the
specifications page. The dollar amounts specified are converted into
annuity units (as described in item 4) and all subsequent payments are
determined using these annuity units. Variable income payments will
vary up or down based on investment experience.
Income payments will increase if the net investment return since the
last payment is greater than the AIR on an annualized basis. Income
payments will decrease if the net investment return is less than the
AIR on an annualized basis. Therefore, the dollar amount of variable
income payments after the first will vary with the amount by which the
net investment return is greater or less than 5% per annum. For
example, if a division has a cumulative net investment return of 6%
over a one year period, the first variable income payment in the next
year will be approximately 1% greater than the payment on the same date
in the preceding year. If such net investment return is 4% over a
one-year period, the first variable income payment in the next year
will be approximately 1% less than the payment on the same date in the
preceding year. In either case subsequent payments will continue to
vary with the investment experience of that division.
Neither expenses actually incurred, other than taxes on the investment
returns, nor mortality actually experienced, shall adversely affect the
dollar amount of variable annuity payments to any annuitant for which
variable annuity payments have commenced.
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5. WHEN ARE VARIABLE INCOME PAYMENT AMOUNTS DETERMINED AND HOW OFTEN WILL
THEY CHANGE?
Each variable income payment amount after the first will be determined
as of the [10th] day prior to the payment due date. Any such payment
may vary from the prior one. Payments other than the first are
determined by multiplying the number of annuity units provided on the
specifications page by the annuity unit value of the investment
division on the 10th day prior to the payment due date. The first
payment will be the initial amount(s) stated on the specifications page
if the payment is due within 10 days of the issue date. Otherwise, the
first payment will be determined as described above for all other
payments.
6. CAN TRANSFERS BE MADE WITHIN THIS CONTRACT?
No. Transfers to or from investment divisions are not permitted within
this contract.
7. IS THERE A CASH SURRENDER VALUE UNDER THIS CONTRACT?
No. This contract may not be surrendered at any time. However, no
payee, annuitant or beneficiary may commute any payments unless it is
pursuant to a court order pursuant to Section 5036 or 5046 of the New
York Civil Practice Law and Regulation.
8. WHAT IF THE ANNUITANT'S AGE OR SEX ON THE ISSUE DATE IS NOT CORRECT AS
SHOWN ON THE COVER PAGE?
If the annuitant's age or sex on the issue date is not correct as shown
on the cover page, we will adjust the benefits under this contract. The
adjusted benefits will be those which the purchase payment would have
bought at the correct age and sex. If we have made an overpayment or
underpayment because of a misstatement, the amount of overpayment or
underpayment, with interest at 6%, will be, as appropriate, deducted
from or added to the payment or payments made after the adjustment.
9. WHAT IS THE DEATH BENEFIT IF THE ANNUITANT(S) DIES?
The Specifications Page indicates whether there is a death benefit and,
if so, what it is. Proof of death and a properly written claim form
must be received by us.
10. WHAT ARE YOUR RIGHTS UNDER THIS CONTRACT?
You own the annuity described in this contract. You have the right at
any time to name or change the payee, including the beneficiary, to
whom benefits are payable under the annuity.
No change in payee will be effective until written notice of the change
is received by us. However, any change in a beneficiary designation
will take effect as of the date the request was signed but without
prejudice to us on account of any payment made by us before receipt of
the request or so soon thereafter that payment could not reasonably be
stopped. When
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contacting us you should mention the annuity contract number and the
name of the annuitant on the cover page.
11. CAN THIS CONTRACT AND THE PAYMENT PROVIDED UNDER IT BE ASSIGNED,
TRANSFERRED OR USED AS COLLATERAL FOR A LOAN
No. This contract and the payments provided under it are non-assignable
and will be exempt from the claims of creditors to the maximum extent
permitted by law.
12. WHAT INFORMATION MAY WE ASK FOR AFTER THE ISSUE DATE OF THIS CONTRACT?
We may require proof that the annuitant(s) is(are) alive on the due
date of a payment. If we have made a request, we may make no further
payments until proof is received. If the annuitant(s) is(are) not then
living, we will require proof of the authority of any person who makes
a claim to receive any amount payable on the annuitant's death.
13. DOES THIS CONTRACT CONTAIN ALL THE PROVISIONS AFFECTING IT?
Yes. This contract and any riders and endorsements included in it make
up the entire contract with us. We will never contest the validity of
this contract. Changes in its provisions may only be made in writing by
our President, a President of one of MetLife's business units,
Secretary or a Vice-President. No provision may be waived or changed by
any of our other employees, representatives or agents.
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INDEX
TOPIC QUESTION & ANSWER PAGE
Allocation of Purchase Payment 2 2
Assignment 11 5
Cash Surrender Value 7 4
Death of the Annuitant 9 4
Definitions 1 1
Entire Contract and Authority 13 5
Information We May Ask For 12 5
Misstatement of Age or Sex 8 4
Owner's Rights 10 4
Separate Account 3 2
Transfers 6 4
Variable Income Payment 4, 5 3, 4
Please notify us promptly of any changes of address, beneficiary, etc. We will
write to you at your last known address. When you write to us, please mention
the annuity contract number and the name of the annuitant on the cover page.
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EXHIBIT A
Statement of Variations for Structured Settlement Income
Payment Contract RSC 99-01
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Question # Variable Wording
Entire contract The names, dates, time periods,
dollar amounts and percentages
throughout the contract will
vary to accommodate the
specific facts that apply to
each contract issued.
Specifications Page Bracketed paragraphs indicate
that specific amounts or
annuity units will be listed
for each contract. The death
benefit will vary depending on
the guaranteed period in the
contract.
Other bracketed areas in the
contract vary to conform to the
particular terms of the
contract as specified in the
questions itemized.
#4 Separate Account Charge The annual Separate Account
charge of 1.25% may be reduced
at a future date for
competitive reasons. It will
never be increased.
#5 AIR AIR will be 5% but may be
changed for future contracts to
a higher or lower percentage.
Such changes will not affect
existing contracts.
#9 Misstatement of Age or Sex The interest rate for
overpayments or underpayments
due to misstatements of age or
sex may vary as interest rates
change.
