EXHIBIT 1.A.(13)(h)
RIDER FOR LEVEL TERM INSURANCE BENEFIT
ON DEPENDENT CHILDREN
This benefit is a part of this contract only if it is included in the list
of supplementary benefits on the contract data pages.
BENEFIT
We will pay an amount under this benefit if we receive due proof that a
dependent child died: (1) before the term insurance provided by the benefit on
his or her life ends; and (2) while this contract is in force and not in default
past the last day of the grace period. But our payment is subject to all the
provisions of the benefit and of the rest of this contract.
The phrase dependent child means the Insured's child, stepchild or legally
adopted child who: (1) has reached the 15th day of life; and (2) has not reached
the first contract anniversary after his or her 25th birthday; and either (3)
just before the contract date of this contract was insured under the earlier
contract from which this contract was exchanged or changed; or (4) is acquired
by the Insured on or after the date of this contract but before the child's 18th
birthday.
We show the amount of term insurance under this benefit on the contract
data pages. The insurance on each dependent child's life will end on the earlier
of: (1) the end of the day before the first contract anniversary after the
child's 25th birthday; and (2) the end of the day before the first contract
anniversary after the Insured's 65th birthday.
PAID-UP INSURANCE
PAID-UP INSURANCE ON DEPENDENT CHILDREN
The Insured might die while this contract is in force and not in default
past the last day of the grace period. In this case, any term insurance provided
by this benefit on a dependent child's life will become paid-up term insurance.
While this paid-up insurance is in effect, the contract will remain in force.
The paid-up insurance will have cash values but no loan value.
If this benefit becomes paid-up, it may be surrendered for its net cash
value. This will be the net value on the date of surrender of the paid-up
insurance. But, within 30 days after a contract anniversary, the net cash value
will not be less than it was on that anniversary. To compute this net cash
value, we use the Commissioners 1980 Standard Ordinary Mortality Table. We use
continuous functions based on age last birthday. We use an effective interest
rate of 4% a year.
We will usually pay any cash value promptly. But we have the right to
postpone paying it for up to six months. If we do so for more than 10 days, we
will pay interest at the rate that then applies to the Interest Payment Option
(see page 20). If we are asked for the values which apply, we will furnish them.
CONVERSION OF INSURANCE ON DEPENDENT CHILDREN
RIGHT TO CONVERT
If the insurance on a dependent child ends as we state in the last
paragraph under benefit above, that child may be able to obtain a new contract
of life insurance on his or her life in either this company or The Prudential
Insurance Company of America. In any of these paragraphs, when we use the phrase
the company we mean whichever of these companies may issue the new contract. It
will not be necessary to prove that the child is insurable.
CONDITIONS
The right to obtain a new contract is subject to all these conditions: (1)
The insurance on the child must end while this contract is in force and not in
default past the last day of the grace period. (2) The amount of the new
contract must meet the minimum as we describe under Contract Specifications. (3)
We must have a written application for the new contract at our Home Office no
later than the date the insurance on the child ends.
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The new contract will not take effect unless the premium for it is paid
while the child is living and within 31 days after its contract date. If the
premium is paid as we state, it will be deemed that the insurance under the new
contract took effect on its contract date.
CONTRACT DATE
The date of the new contract will be the day after the date the insurance
on the dependent child ends.
CONTRACT SPECIFICATIONS
The new contract will be in the standard rating class. We will set the
issue age and the premiums for the new contract in accord with our regular rules
in use on its contract date.
We will endorse the new contract to show that the period we state in its
Incontestability provision will start on the date coverage of the child began
under this benefit or under a similar one in the earlier contract from which
this contract was exchanged or changed. But if this contract or the earlier
contract was reinstated after the date the coverage began but before the date of
the new contract, that period will start on the date of the most recent
reinstatement. We will have the right to use the statements that were made to us
as the basis for reinstatement to contest the new contract. The period during
which we will have that right will be the period we state in the
Incontestability provision of the new contract.
We will endorse the new contract to show that the period we state in its
Suicide Exclusion provision will start on the date coverage of the child began
under this benefit or under a similar one in the earlier contract.
The contract may be any one of the following:
1. A Life Paid Up at Age 85 plan (Life Paid Up at Age 65 plan if the issue age
for the new contract is less than 15 years). In this case the new contract
will be issued by The Prudential Insurance Company of America. Its face
amount will be the amount asked for in your request. But it cannot be less
than $5,000 or more than five times the amount of insurance on the child's
life under this Benefit.
2. A contract like the one to which this Benefit is attached, if Pruco Life
Insurance Company is regularly issuing such contracts at that time. Its
face amount will be the amount asked for in your request. But it cannot be
less than $50,000 or more than five times the amount of insurance on the
child's life under the Benefit.
3. A contract of life insurance of a kind regularly being issued by Pruco Life
Insurance Company at that time for $25,000 or more. Its face amount will be
the amount you ask for in your request. But it cannot be less than $25,000
or more than five times the amount of insurance on the child's life under
the Benefit.
The new contract will not have Supplementary Benefits other than as we
describe in this and in the next paragraph. If the company would include in
other contracts like the new contract a benefit for paying premiums in the event
of disability, here is what the company will do. Even though this contract does
not have such a benefit on the life of that child, the company will put it in
the new contract on his or her life. The benefit, if any, in the new contract
will be the same one, with the same provisions, that the company puts in other
contracts like it on its contract date. In this paragraph, when we use the
phrase other contracts like it, we mean contracts the company would regularly
issue on the same plan for the same rating class, amount, issue age and sex.
We will not pay any premium under a new contract unless the disability
started on or after its contract date. And we will not pay any premium under a
new contract unless it has a benefit for paying premiums in the event of
disability. This will be so even if we have paid premiums under this contract.
CHANGES
If the insurance on a dependent child ends as we state in the last
paragraph under benefit above, that child may be able to obtain a new contract
of life insurance other than in accord with the requirements we state in this
form. But this kind of change may be made only if we consent, and will be
subject to conditions and charges that are then determined.
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MISCELLANEOUS PROVISIONS
BENEFICIARY
The word beneficiary where we use it in this contract without qualification
means the beneficiary for insurance payable upon the death of the Insured.
Unless we endorse this contract to say otherwise, these two statements will
apply: (1) The beneficiary for insurance payable upon the death of a dependent
child will be the Insured if living, otherwise the beneficiary for insurance
payable upon the death of the Insured. (2) If no such beneficiary is living when
insurance under this benefit becomes payable, we will make the payment in one
sum to the estate of the later to die of the Insured and such beneficiary.
The beneficiary for insurance payable upon the death of a dependent child may be
changed. The request must be in writing and in a form that meets our needs. It
will take effect only when we file it at our Home Office; this will be after the
contract is sent to us to be endorsed, if we ask for it. Then any previous
beneficiary's interest in such insurance will end as of the date of the request.
It will end then even if the child is not living when we file the request. Any
beneficiary's interest is subject to the rights of any assignee of whom we know.
When a beneficiary is designated, any relationship shown is to the Insured,
unless otherwise stated.
REINSTATEMENT
If this contract is reinstated, it will not include the insurance that we
provide under this benefit on the dependent children unless you give us any
facts we need to satisfy us that each child who is to be insured on or within 15
days after the date of reinstatement is insurable for the benefit. If you do
not give us the facts we need for any child, the benefit may be reinstated if
all the other conditions are met to reinstate the contract. But you must send
the contract to us to be endorsed to show that the child is not insured under
the benefit.
CONTRACT VALUE OPTIONS
If this contract has a Contract Value Options provision, it will apply only
during the Insured's lifetime. Any extended or reduced paid-up insurance that
may be described there is on the life of the Insured only.
CONTRACT LOANS
If this contract has a Loans provision, we will not consider any contract
debt when we determine the amount payable, if any, at the death of a dependent
child.
INCONTESTABILITY
Except for non-payment of premium, we will not contest this benefit with
respect to the insurance on any dependent child's life after it has been in
force during the child's lifetime for two years from: (1) the date the level
term insurance benefit on dependent children began under the earliest contract;
or, if later, (2) the date of any rider that added the child for coverage under
any such earlier contract. But, in any case. if there was a later reinstatement
of any such earlier contract, then the two years will start on the date of the
most recent reinstatement.
BENEFIT PREMIUMS AND CHARGES
We show the premiums for this benefit in the contract data pages. From each
premium payment, we make the deductions shown on those pages and the balance is
the invested premium amount which is added to the contract fund.
The monthly charge for this benefit is deducted on each monthly date from
the contract fund. The amount of that charge is included in the contract data
pages.
Benefit premiums and monthly charges stop on the earlier of the death of
the Insured and the first contract anniversary after the Insured's 65th
birthday.
TERMINATION
This benefit will end on the earliest of:
1. the end of the last day of grace if the contract is in default; it will not
continue if a benefit takes effect under any contract value options
provision that may be in the contract;
2. the end of the day before the first contract anniversary after the
Insured's 65th birthday;
3. the date the contract is surrendered under its Cash Value Option, if it has
one, or the paid-up insurance, if any, under the benefit is surrendered;
and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, and we agree, we
will cancel the benefit as of the first monthly date on or after we receive your
request. Contract premiums and monthly charges due then and later will be
reduced accordingly.
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MAXIMUM TOTAL AMOUNT OF INSURANCE ALLOWED BY LAW
A dependent child might die when his or her age is less than 14 years and
six months. And there might be other life insurance, with us or other companies,
payable on the child's life under a contract(s) that was issued and dated before
the insurance for the child took effect under this benefit or under a similar
one in the earlier contract from which this contract was exchanged or changed.
If so, the most we could pay under this benefit for that death is the excess of:
(1) the maximum that is allowed to be paid in accord with the Table below, over
(2) the amount of the insurance on the child's life under (all) the other
contract(s). If the amount of insurance on the child's life under this benefit
is greater than that excess, we will reduce it by the difference, with
appropriate adjustment of the premium as filed with the Superintendent of
Insurance of New York.
If the insurance under this benefit is more than we would be allowed to pay
upon a dependent child's death, you may wish to have us reduce it to what we
could pay, with appropriate adjustment of the premium as filed with the
Superintendent of Insurance of New York. To do so, you must ask us in writing
and in a form that meets our needs. You must also send the contract to us to be
endorsed.
When we compute insurance under this or other contracts we will not
include: (1) return premium benefits; (2) dividend additions; or (3) benefits
that are paid only for death by accident.
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DEPENDENT CHILD'S AGE AT DEATH MAXIMUM AMOUNT ALLOWED
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Less than four years and $5,000 or, if more, 25% of the amount of
six months life insurance in force on the life of the
Insured on the date the insurance for the
child takes effect under this benefit or a
similar one in the earlier contract.
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Four years and six months or $10,000 or, if more, 50% of the amount of
more, but less than fourteen the life insurance in force on the life
years and six months of the Insured on the date the insurance
for the child takes effect under this
benefit or a similar one in the earlier
contract.
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This Supplementary Benefit rider attached to this contract on the Contract Date
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
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Secretary
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