<PAGE>
EXHIBIT (4)(a)
MONY Life Insurance Company of America
Signed for MONY Life Insurance Company of
America on the
Date of Issue.
Administrative Office
1740 Broadway,
New York, NY 10019
Operations Center
One MONY Plaza, PO Box 4830,
Syracuse, NY 13221,
1(800)487-6669
Home Office
2999 North 44th Street, Suite 250,
Phoenix, AZ 85018
/s/ Michael I. Roth
-------------------------
MICHAEL I. ROTH, Chairman
/s/ Samuel J. Foti
--------------------------
SAMUEL J. FOTI, President
/s/ David S. Waldman
----------------------------
DAVID S. WALDMAN, Secretary
If you have a complaint about this
Contract, see Page 2. See page 3 for
information regarding any taxes applicable
to Purchase Payments.
MONY Life Insurance Company of America will
pay the benefits provided in this
Contract, subject to all the contract
provisions.
Annuitant:
John Doe
Age of Annuitant at 35
Issue:
Contract Number:
BGP0000800
Effective Date:
01/01/2003
Date of Issue:
01/01/2003
Annuity Starting Date: 01/01/2063
--------------------------------------------------------------------------------
Important Notice(s)
This Contract is a legal contract between
the Owner and the Company. READ YOUR
CONTRACT CAREFULLY.
ALL ANNUITY PAYMENTS AND VALUES PROVIDED BY
THIS CONTRACT, WHERE BASED ON THE
INVESTMENT EXPERIENCE OF THE VARIABLE
ACCOUNT, ARE VARIABLE AND ARE NOT
GUARANTEED AS TO DOLLAR AMOUNT. PAYMENTS
AND VALUES MAY INCREASE OR DECREASE
ACCORDING TO THE EXPERIENCE OF THE VARIABLE
ACCOUNT. SEE THE VARIABLE ACCOUNT
AND FUND VALUE SECTIONS.
THIS IS A LONG TERM CONTRACT; A SURRENDER
CHARGE MAY BE APPLIED TO ANY SURRENDER
MADE WITHIN THE FIRST 8 YEARS. A POSITIVE
OR NEGATIVE MARKET VALUE ADJUSTMENT
MAY ALSO BE APPLIED TO SURRENDERS OR
TRANSFERS FROM THE GUARANTEED INTEREST
ACCOUNT.
Right to Return Contract - This Contract
may be returned to us within ten days
from the date you receive it by delivering
or mailing it to our Administrative
Office, a local office of ours, or to any
Agent of ours. We will then refund the
Fund Value of the Contract (before
deduction of any surrender charge) plus any
taxes applicable to annuity purchase
payments. The Contract will be considered
never to have been issued. If you return by
mail, the cancellation will be
effective on the date it is postmarked (if
properly addressed with postage
prepaid).
--------------------------------------------------------------------------------
Brief Description
This is a FLEXIBLE PAYMENT VARIABLE ANNUITY
CONTRACT. Payments to the Payee
begin on the Annuity Starting Date. If the
Annuitant dies before that Date a
Death Benefit is payable. No dividends are
payable.
FLEXIBLE PAYMENT VARIABLE ANNUITY
--------------------------------------------------------------------------------
PAGE 1
<PAGE>
================================================================================
Table of Contents
<TABLE>
<CAPTION>
Section
Page
-------
----
<S>
<C>
1. SCHEDULE OF PAYMENTS AND
CHARGES.....................................................
3
Contract Description
And Specifications.
2. VARIABLE ACCOUNT, THE FUNDS AND
SUB-ACCOUNTS......................................... 4
Listing Of
Sub-Accounts And Funds.
3. ABOUT THIS
CONTRACT..................................................................
5
An Overview Of Basic
Contract Provisions.
4. WE WILL
PAY..........................................................................
6
Annuity Payments;
Changing The Date Annuity Payments Start; Death Benefit;
Interest On Death
Proceeds.
5. PURCHASE PAYMENTS YOU
MAKE...........................................................
7
Initial Purchase
Payment; Limits On Payments; Automatic And Non-Automatic
Payments; Net Purchase
Payment; Purchase Payment Allocations.
6. FUND
VALUE...........................................................................
8
How Fund Value Is
Determined.
7.
TRANSFERS............................................................................
9
Types Of Transfers;
Allocation Rules.
8. FULL OR PARTIAL
SURRENDERS...........................................................
10
Full And Partial
Surrenders; Allocation Rules; Surrender Charge; Free Partial
Surrender Amount.
9. RIGHTS OF
OWNER......................................................................
12
Owner Of The Contract;
Owner's Rights; Successor Owner.
10. DEATH OF
OWNER.......................................................................
12
Death Of Owner Before
The Annuity Starting Date.
11.
BENEFICIARY..........................................................................
12
Beneficiary Of The
Contract; Changing The Beneficiary; Successor Beneficiary.
12. SECONDARY
ANNUITANT..................................................................
13
Secondary Annuitant;
Naming Or Deleting A Secondary Annuitant.
13. THE VARIABLE
ACCOUNT.................................................................
14
Variable Account;
Sub-Accounts; Changes To The Variable Account.
14. SUB-ACCOUNT UNIT
VALUE...............................................................
15
Unit Value
Determination.
</TABLE>
FOR INFORMATION OR TO MAKE A COMPLAINT
CALL 1-800-487-MONY (1-800-487-6669)
OR WRITE TO US AT OUR OPERATIONS CENTER AT:
ONE MONY PLAZA, PO BOX 4830, SYRACUSE, NEW YORK 13221
--------------------------------------------------------------------------------
PAGE 2
<PAGE>
================================================================================
<TABLE>
<CAPTION>
Section
Page
-------
----
<C>
<C>
15. THE GUARANTEED INTEREST
ACCOUNT......................................................
15
Guaranteed Interest
Account; Interest Rate Applied To The guaranteed Interest
Account, Accumulation
Period, Market Value Adjustment.
16. THE DOLLAR COST AVERAGING PLUS
ACCOUNT............................................... 17
DCA Plus Periods; DCA
Plus Interest; DCA Plus Accounts.
17. ANNUAL CONTRACT
CHARGE...............................................................
18
Annual Contract
Charge.
18. DATES AND CONTRACT
PERIODS...........................................................
18
How Dates Are
Determined; How Periods Are Measured.
19. GENERAL
PROVISIONS...................................................................
18
The Contract;
Statements In Application; Incontestability; Misstatement Of Age
Or
Gender; Assignment;
Postponement Of Payments Or Transfers; Authority;
Relationships;
Reports.
20. SETTLEMENT
OPTIONS...................................................................
20
Election Of Settlement
Options; Settlement (Payout) Options Available; Minimum
Monthly Income
Tables.
ENDORSEMENTS, IF
ANY
RIDERS, IF ANY
APPLICATION
</TABLE>
--------------------------------------------------------------------------------
PAGE 2A
<PAGE>
================================================================================
1. Schedule of Payments and Charges
Flexible Payment Variable Annuity Contract
BGP0000800
--------------------------------------------------------------------------------
Initial Purchase Payment
--------------------------------------------------------------------------------
Guaranteed Interest Account Accumulation
Periods available at issue: [3, 5, 7
and 10yr]
(subject to change, see Guaranteed Interest
Account section)
<TABLE>
<CAPTION>
Accumulation Period(s) Selected at Issue
Guaranteed Rate
for Accumulation Period
----------------------------------------
---------------------------------------
<S>
<C>
1 Year
[1.5%]
</TABLE>
Guaranteed Minimum Interest Rate
[1.5%]
Minimum DCA Plus Account Allocation
[$5,000]
--------------------------------------------------------------------------------
Number of guaranteed free transfers during
a contract year
12
Charge on excess transfers:
Current
[$0]
(subject to change; see
Transfers section)
Guaranteed Maximum
$25
Daily Mortality/Expense Risk Charge* (see
Sub-Account Unit Value section)
Current
[0.003288% (equal to 1.20% annually)]
Guaranteed Maximum
0.003836% (equal to 1.40% annually)
* Will be reduced by 0.20% annually if the
Purchase Payment(s) made during the
first contract year total $750,000 or more
and either (a) or (b) are applicable
on any contract anniversary:
(a) the Fund Value is $750,000 or
more, or
(b) Fund Value is less than $750,000
and the total withdrawals made during the
prior contract
year do not exceed the greater of: (i) the Free Partial
Surrender Amount
for that year; and (ii) the a amount of any required
minimum
distributions under the Internal Revenue Code of 1986 (Code)
for
that year, if
applicable.
Annual Contract Charge (to be waived on any
contract anniversary on which the
Fund Value is $50,000 or more):
Current
[$30]
Guaranteed Maximum if
Initial Purchase Payment is less than $2,500 $40
Guaranteed Maximum if
Initial Purchase Payment is at least $2,500
$50
Tax Charge - 0% of each payment received
subject to change based upon change in
applicable federal or state tax laws or
cost to the Company.
--------------------------------------------------------------------------------
PAGE 3
<PAGE>
================================================================================
1. Schedule of Payments and Charges
Surrender charge (see Full and Partial Surrenders section)
SURRENDER CHARGE PERCENTAGE TABLE
# of Contract
Anniversaries since Surrender Charge
Effective Date
Percentage
------------------- ----------------
0
8%
1
8
2
7
3
7
4
6
5
5
6
4
7
3
8(or more)
0
--------------------------------------------------------------------------------
PAGE 3A
<PAGE>
================================================================================
2. Variable Account, The Funds and
Sub-Accounts
See Variable Account section for further
information
The Variable Account is MONY America
Variable Account A and includes the
Sub-accounts listed below.
The Sub-accounts available for investment
purposes, and the corresponding
portfolios of the applicable funds are:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Sub-Accounts
Applicable Fund
------------
---------------
<S>
<C>
[AIM V.I. Basic Value
AIM Variable Insurance Funds
AIM V.I. Mid Cap Core Equity
AIM Variable Insurance Funds
Alger American Balanced
The Alger American Fund
Alger American MidCap Growth
The Alger American Fund
Dreyfus I. P. Small Cap Stock Index
Dreyfus Investment Portfolio
Enterprise Deep Value
Enterprise Accumulation Trust
Enterprise Equity Income
Enterprise Accumulation Trust
Enterprise Growth
Enterprise Accumulation Trust
Enterprise Growth and Income
Enterprise Accumulation Trust
Enterprise Global Socially Responsive
Enterprise Accumulation Trust
Enterprise Managed
Enterprise Accumulation Trust
Enterprise Mergers and Acquisitions
Enterprise Accumulation Trust
Enterprise Multi-Cap Growth
Enterprise Accumulation Trust
Enterprise Short Duration Bond
Enterprise Accumulation Trust
Enterprise Small Company Growth
Enterprise Accumulation Trust
Enterprise Small Company Value
Enterprise Accumulation Trust
Enterprise Total Return
Enterprise Accumulation Trust
Franklin Income Securities
Franklin Templeton Variable Insurance Product Trust
Franklin Rising Dividends Securities
Franklin
Templeton Variable Insurance Product Trust
Franklin Zero Coupon 2010
Franklin Templeton Variable Insurance Product Trust
INVESCO VIF - Financial Services
INVESCO Variable Investment Funds, Inc
INVESCO VIF - Health Sciences
INVESCO Variable Investment Funds, Inc
INVESCO VIF - Telecommunications
INVESCO Variable Investment Funds, Inc
Janus Aspen Series Capital Appreciation
Janus Aspen
Series
Janus Aspen Series Flexible Income
Janus Aspen Series
Janus Aspen Series International Growth
Janus Aspen
Series
Lord Abbett Bond-Debenture
Lord Abbett Series Fund
Lord Abbett Growth and Income
Lord Abbett Series Fund
Lord Abbett Mid-Cap Value
Lord Abbett Series Fund
MFS Mid Cap Growth
MFS. Variable Insurance Trust(SM)
MFS New Discovery
MFS. Variable Insurance Trust(SM)
MFS Total Return
MFS. Variable Insurance Trust(SM)
MFS Utilities
MFS. Variable Insurance Trust(SM)
MONY Government Securities
MONY Series Fund, Inc.
MONY Long Term Bond
MONY Series Fund, Inc.
MONY Money Market
MONY Series Fund, Inc.
Oppenheimer Main Street
Oppenheimer Variable Account Funds
Oppenheimer Global Securities
Oppenheimer Variable Account Funds
PBHG Mid-Cap
PBHG Insurance Series Fund
PBHG Select Value
PBHG Insurance Series Fund
PIMCO Global Bond
PIMCO Variable Insurance Trust
PIMCO Real Return
PIMCO Variable Insurance Trust
PIMCO StocksPLUS Growth and Income
PIMCO Variable Insurance Trust
ProFund VP Bear
The ProFunds VP
ProFund VP UltraBull
The ProFunds VP
ProFund VP Rising Rates Opportunity
The
ProFunds VP
Van Kampen UIF Emerging Markets Equity
The
Universal Institutional Funds, Inc
Van Kampen UIF Global Value Equity
The Universal Institutional Funds, Inc
Van Kampen UIF U.S. Real Estate
The Universal Institutional Funds, Inc ]
</TABLE>
--------------------------------------------------------------------------------
PAGE 4
<PAGE>
================================================================================
2. Variable Account, The Funds and
Sub-Accounts
See Variable Account section for further
information
The Variable Account is MONY America
Variable Account A and includes the
Sub-accounts listed below.
The Sub-accounts available for investment
purposes, and the corresponding
portfolios of the applicable funds are:
--------------------------------------------------------------------------------
[AIM Variable Insurance Funds, Janus Aspen
Series, PBHG Insurance Series Fund,
PIMCO Variable Insurance Trust and The
ProFunds VP are organized under the laws
of Delaware. INVESCO Variable Investment
Funds, Inc., Lord Abbett Series Fund,
MONY Series Fund, Inc., and The Universal
Institutional Funds, Inc. are
organized under the laws of Maryland. The
Alger American Fund, Dreyfus
Investment Portfolio, Enterprise
Accumulation Trust, Franklin Templeton Variable
Insurance Product Trust, MFS Variable
Insurance Trust and Oppenheimer Variable
Account Funds are organized under the laws
of Massachusetts. The Alger American
Fund, Enterprise Accumulation Trust,
Franklin Templeton Variable Insurance
Product Trust, Janus Aspen Series, INVESCO
Variable Investment Funds, Inc., Lord
Abbett Series Fund, MFS Variable Insurance
Trust, MONY Series Fund, Inc.,
Oppenheimer Variable Account Funds, PBHG
Insurance Series Fund, and PIMCO
Variable Insurance Trust are registered
with the Securities and Exchange
Commission under the 1940 Investment
Company Act as open-end, diversified
investment management companies. AIM
Variable Insurance Funds, Dreyfus
Investment Portfolios, The ProFunds VP and
Universal Institutional Funds, Inc.]
are registered with the Securities and
Exchange Commission under the 1940
Investment Company Act as open-end
management investment companies.
--------------------------------------------------------------------------------
PAGE 4A
<PAGE>
================================================================================
3. About This Contract
The following is an overview of some basic
contract provisions to aid your
understanding. The specific provisions of
the Contract are found in the pages
following this overview. In the event of a
discrepancy between this overview and
any specific provisions of this Contract,
the specific Contract provisions will
control.
This is a Flexible Payment Variable Annuity
Contract. This Contract goes into
effect on the Effective Date. This Contract
is a "promise to pay" Annuity
Payments which start on a date chosen by
you called the Annuity Starting Date
(or maturity date). Those payments are made
to a person chosen by you as the
Payee. The Annuitant is the person on whose
life the Contract is based (the
measuring life).
If the Annuitant (or Secondary Annuitant)
is living on the Annuity Starting
Date, we begin to make Annuity Payments. If
the Annuitant dies before the
Annuity Starting Date, the Secondary
Annuitant (if you designated one) takes
over as Annuitant. If the Annuitant and the
Secondary Annuitant both die before
the Annuity Starting Date, the Contract
ends and a death benefit is payable to
the Beneficiary (person who receives the
Death Benefit) chosen by you. The death
benefit is equal to the Fund Value or, if
greater, the Purchase Payments paid by
you less any partial surrenders, plus or
minus any Market Value Adjustment and
less any surrender charge. The Beneficiary
does not have to be the Payee. If the
Owner (and Successor Owner under certain
circumstances) dies before the Annuity
Starting Date, while the Annuitant is
living, the proceeds in this Contract must
be distributed within 5 years after the
date of death (see Death of Owner
section).
Purchase Payments are payments you make to
us. The sum of Purchase Payments made
(less partial surrenders, charges, etc.)
determine the value of the Contract.
There may be a positive or negative Market
Value Adjustment and a surrender
charge on partial surrenders you make or,
if you surrender (cash in) the
Contract in full. The Market Value
Adjustment depends on which Accumulation
Period(s) you selected, how many years are
left in the applicable Period(s) and
how interest rates have changed since those
Periods began. The surrender charge
depends on how long ago you purchased the
Contract.
The value of this Contract is based on
Purchase Payments which you allocate to
either the Variable Account, the Guaranteed
Interest Account or the Dollar Cost
Averaging Plus Account. The Fund Value is
the combined value of the Variable
Account, the Guaranteed Interest Account
and the Dollar Cost Averaging Plus
Account BEFORE any Market Value Adjustment
is applied, any surrender charge and
any Annual Contract Charge, as applicable,
are deducted. The Cash Value, if any,
is the value AFTER any Market Value
Adjustment is applied, any surrender charge
and any Annual Contract Charge, as
applicable are deducted. The Guaranteed
Interest Account and Dollar Cost Averaging
Plus Account are "fixed" accounts and
are part of our General Account. We may
offer one or more choices of Guaranteed
Interest Account Accumulation Periods and
interest rates to apply during those
Periods. The Variable Account is an account
that is separate from our General
Account. The value of the Variable Account
can increase or decrease depending on
investment experience. The Variable Account
is made up of several Sub-accounts
(subdivisions) with different investment
objectives. Each Sub-account invests
only in the shares of its own portfolio of
its fund. The measure of value in a
Sub-account is called a Unit.
The value of Units in a Sub-account can
only change on a Business Day. A
Business Day is any day the New York Stock
Exchange is open for trading or any
other day on which there is enough trading
to change the Unit value of a
Sub-account. Trading refers to the purchase
and sale of securities held by the
portfolio.
When we refer to "I" or "my" in a question,
or to "you" or "your" in an answer,
we mean the Owner. The Owner is the person
who holds the Contract and who has
the rights of ownership. The Owner chooses
any options the Contract offers. When
we refer to "we", "us" and "our" we mean
MONY Life Insurance Company of America.
"Administrative Office" means our office at
1740 Broadway, New York, NY 10019
and also includes our Operations Center at
One MONY Plaza, P.O. Box 4830,
Syracuse, NY 13221.
You can read more about the terms used in
the summary on the following pages.
"Annuity Payments"
(see Section 4)
"Annuity Starting Date"
shown on page 1.
"Beneficiary"
(see Section 11)
--------------------------------------------------------------------------------
PAGE 5
<PAGE>
================================================================================
"Business Day"
(see Section 3)
"Cash Value"
(see Section 8)
"Effective Date"
shown on page 1.
"Fund Value"
(see Section 6)
"Guaranteed Interest Account" (see Section 15)
"Owner"
(see Section 9)
"Payee"
(see Section 4)
"Purchase Payments"
(see Section 5)
"Secondary Annuitant"
(see Section 12)
"Sub-account"
(see Section 2)
"Variable Account"
(see Section 13)
================================================================================
4. We Will Pay
What will the Company pay and when will
they pay it?
1. We will pay the Annuity Payments
starting on the Annuity Starting Date to a
person named by you as Payee. You can name
a Payee either in the application or
later (if later, we will send an
endorsement to show the change).
2. We will pay the Death Benefit to the
Beneficiary if the Annuitant dies before
the Annuity Starting Date. But we must
first receive proof that the Annuitant
died before the Annuity Starting Date.
Payment in any case will only be made in
accordance with all the provisions of this
Contract. "Annuitant" includes a
"Secondary Annuitant" if you designated
one.
What are Annuity Payments?
Annuity Payments are Income Payments made
periodically (monthly, quarterly,
semi-annually or annually) over the
lifetime of the Payee or for a selected
period. The income will be purchased by the
Cash Value on the Annuity Starting
Date. The amount of the Cash Value and the
Settlement (payout) Option chosen
will determine the amount of income
payments.
But, if you elect Settlement Option 3 or
3A, the income will be purchased by the
Fund Value on the Annuity Starting Date.
That benefit will be based on the
Payee's lifetime, as explained in the
Settlement Options section.
If no other election is made before that
Date, the Fund Value will be settled
under Settlement Option 3 with 10 years
certain, based on the Annuitant's life,
as provided by and subject to the
provisions in the Settlement Options section.
Can I change the date Annuity Payments
start?
Yes, you may advance or defer the Annuity
Starting Date, but only while the
Annuitant is living. We must receive your
request before the Annuity Starting
Date. The Date may not be advanced to a
date earlier than the 10th anniversary.
It may not be deferred to a date later than
the anniversary following the
Annuitant's 95th birthday. The change will
be effective as of the date we
receive your written request at our
Administrative Office. You do not need to
return the Contract for us to make the
change unless we ask for it.
If the Annuitant dies, what does the
Company pay?
If the Annuitant dies before the Annuity
Starting Date, we will pay to the
Beneficiary, the greater of:
(a) the Fund Value on the date we
receive due proof of death and election of a
settlement
option; or
(b) the Purchase Payments paid by you,
reduced proportionately by each partial
surrender
(reflecting any Market Value Adjustment and any surrender
charge).
But we must first receive proof that the
Annuitant died before the Annuity
Starting Date.
Any Death Benefit payable under this
Contract is not less than the minimum
benefit required by the law of the state in
which the Contract is delivered.
If the proceeds are not paid by the end of
30 days from the date we receive due
proof of death of the Annuitant, we will
pay interest on the proceeds if
required by the state in which the Contract
is
--------------------------------------------------------------------------------
PAGE 6
<PAGE>
================================================================================
delivered at the rate specified by that
state. If interest is payable, it will
be paid from date of the death to date of
payment of proceeds.
How are proportionate reductions
calculated?
For each partial surrender, the
proportionate reduction is equal to the amount
of the partial surrender divided by the
Fund Value immediately before that
partial surrender, multiplied by the
Purchase Payments paid before that partial
surrender.
================================================================================
5. Purchase Payments You Make
What Payments can I make to the
Company?
The Initial Purchase Payment is shown on
Page 3. You can send additional
Purchase Payments to our Administrative
Office. On request, we will give a
receipt signed by our Treasurer. We will
accept Purchase Payments any time
before the Annuity Starting Date as long as
the Annuitant is living.
Is there a limit on Payments I can make to
the Company?
Yes, we may limit the sum of Purchase
Payments you make. That limit is
$1,500,000 (less any partial surrenders,
any Market Value Adjustment and any
surrender charge).We may return any
Purchase Payment that would exceed the
$1,500,000 limit.
Can I make Payments to the Company
automatically?
Yes, you can make automatic Purchase
Payments to us through an automatic payment
plan. It could be payroll deductions by a
central remitter with whom we make an
agreement or, authorized government
allotments if we receive official military
verification. It could also be automatic
bank drafts or any other automatic plan
we agree to.
Can I make Payments to the Company other
than automatic Payments?
Yes, whether you are on an automatic
payment plan or not, you can make
non-automatic Purchase Payments.
What is a Net Purchase Payment?
When we refer to net Purchase Payments, we
mean the Purchase Payment amount
after deduction of any applicable taxes
(see Page 3 for the amount of tax, if
any). We may waive any deduction of taxes
on Purchase Payments. But if we do, we
can stop waiving them on future Payments if
we give you at least 30 days written
notice.
When will net Purchase Payments be
allocated to the Sub-accounts, Guaranteed
Interest Account or Dollar Cost Averaging
Plus Account as I have chosen?
Any portion of a net Purchase Payment
allocated to the Sub-accounts, the
Guaranteed Interest Account or the Dollar
Cost Averaging Plus Account (if
available), will be placed in that Account
as chosen on the later of the
Effective Date and the Business Day that
falls on, or next follows the date we
receive the Purchase Payment at our
Administrative Office.
When we do this, we use the most recent
valid allocation choice and Accumulation
Period choice (if applicable) we have from
you. If we have no valid allocation
choice and Allocation Period choice (if
applicable) from you, we will allocate
the net Purchase Payments to the Money
Market Sub-account.
When will interest be credited on Purchase
Payments I allocate to the Guaranteed
Interest Account or Dollar Cost Averaging
Plus Account?
Interest will be credited on Purchase
Payments allocated to the Guaranteed
Interest Account or Dollar Cost Averaging
Plus Account (if available), at an
annual rate not less than the Guaranteed
Minimum Interest Rate shown in Section
1 (see also Guaranteed Interest Account and
Dollar Cost Averaging Plus Account
sections). Such interest will be credited
from the later of the Effective Date
and the Business Day that falls on or next
follows the date we receive the
Purchase Payment at our Administrative
Office.
--------------------------------------------------------------------------------
PAGE 7
<PAGE>
================================================================================
Are there any rules for allocation
choices?
Yes, allocations must be made in whole
percentages. If a Sub-account, the
Guaranteed Interest Account or the Dollar
Cost Averaging Plus Account (if
available), is to receive any allocation,
the allocation must be at least 1%
and, the total must equal 100% of the net
Purchase Payment. We use the most
recent valid allocation choice and
Accumulation Period choice (if applicable) we
have from you. If we have no valid
allocation choice and Accumulation Period
choice from you, we will allocate the net
Purchase Payments to the Money Market
Sub-account. You may change your allocation
choice by writing to us at our
Administrative Office. A change will take
effect within 7 days after we receive
that notice.
Allocations to the Guaranteed Interest
Account may be limited as follows. We
reserve the right to limit the Fund Value
in the Guaranteed Interest Account to
a percentage of the total Fund Value held
under the Contract. That percentage
will never be less than 10%. If we impose
this limit, we will reject any
allocation to the Guaranteed Interest
Account if the Fund Value in that Account
exceeds the limit or, if that allocation
would cause the Fund Value in the
Guaranteed interest Account to exceed that
limit.
Can I earmark a non-automatic net Purchase
Payment for an allocation different
from my regular allocation choice?
Yes, you can choose a specific allocation
for a non-automatic Purchase Payment
and it will not change your allocation
choice and/or Accumulation Period choice
for future Purchase Payments. Allocations
must be by amount or percentage in
whole numbers only. If a Sub-account, the
Guaranteed Interest Account or the
Dollar Cost Averaging Plus Account (if
available), is to receive any allocation,
the allocation must be at least 1% and the
total must equal 100% of the net
Purchase Payment.
If you do not give us a specific allocation
for the non-automatic Purchase
Payment, or if your allocation choice is
not valid, we will use the most recent
valid allocation choice and/or Accumulation
Period choice we have from you.
6. Fund Value
What is the Fund Value on the Effective
Date?
The Fund Value on the Effective Date is the
net Purchase Payments received by us
on or before the Effective Date and any
interest credited to those Payments.
When are Fund Value calculations made?
After the Effective Date, Fund Value
calculations are made on Business Days. If
a Fund Value calculation has to be made for
a day that is not a Business Day,
then we will use the next Business Day.
How is the Fund Value determined on a
Business Day?
The Fund Value on a Business Day is
determined as follows:
(a) Determine the Fund Value in each
Sub-account on that Day (see below for
details).
(b) Total the Fund Value in each
Sub-account on that Day.
(c) Add the Fund Value in the
Guaranteed Interest Account on that Day (see
below for
details).
(d) Add the Fund Value in the Dollar
Cost Averaging Plus Account on that Day
(see below for
details).
(e) Add any net Purchase Payments
received on that Day.
(f) Deduct any transfer charges on
that Day.
(g) Deduct any partial surrender,
(reflecting any Market Value Adjustment and
any surrender
charge) made on that Day.
(h) Deduct any Annual Contract Charge
made on that Day.
Regarding (a) above, how is the Fund Value
for each Sub-account determined on
that Business Day?
For each Sub-account we multiply the number
of Units credited to that
Sub-account by its Unit value on that Day.
The multiplication is done BEFORE the
purchase or redemption of any Units on that
Day.
--------------------------------------------------------------------------------
PAGE 8
<PAGE>
================================================================================
Regarding (c) above, what makes up the Fund
Value in the Guaranteed Interest
Account on that Business Day?
The Fund Value in the Guaranteed Interest
Account on that Day is the accumulated
value at the applicable interest rate(s) of
net Purchase Payments allocated to
the Guaranteed Interest Account BEFORE that
Day, decreased by allocations
against the Guaranteed Interest Account
BEFORE that Day for:
(i) any partial surrender, any Market
Value Adjustment and any surrender
charge;
(ii) any amount
transferred from the Guaranteed Interest Account, any
Market Value Adjustment, and any transfer charge;
(iii) any Annual
Contract Charge.
Regarding (d) above, what makes up the Fund
Value in the Dollar Cost Averaging
Plus Account on that Business Day?
The Fund Value in the Dollar Cost Averaging
Plus Account on that Day is the
accumulated value at the applicable
interest rate(s) of net Purchase Payments
allocated to the Dollar Cost Averaging Plus
Account BEFORE that Day, decreased
by allocations against the Dollar Cost
Averaging Plus Account BEFORE that Day
for:
(i) any partial surrender and any
surrender charge;
(ii) any amount
transferred from the Dollar Cost Averaging Plus Account;
(iii) any Annual
Contract Charge.
================================================================================
7. Transfers
When can I make transfers?
Transfers may be made only after the "Right
to Return Contract" period has
ended.
What transfers can I make?
There are 4 types of transfers you can
make. Each type is explained (along with
any rules and limitations) below:
Type 1. Transfers AMONG Sub-accounts (that
do not involve the Guaranteed
Interest Account or Dollar Cost Averaging
Plus Account). There are no
restrictions on this type of transfer.
Type 2. Transfers INTO the Guaranteed
Interest Account. Transfers into the
Guaranteed Interest Account are subject to
the availability of one or more
Accumulation Period(s).
If one or more Accumulation Periods are
available, transfers INTO the Guaranteed
Interest Account may be limited as follows.
We reserve the right to limit the
Fund Value in the Guaranteed Interest
Account to a percentage of the total Fund
Value held under the Contract. That
percentage will never be less than 10%. If
we impose this limit, we will reject any
transfer INTO the Guaranteed Interest
Account if the Fund Value in that Account
exceeds the limit or, if that transfer
would cause the Fund Value in the
Guaranteed Interest Account to exceed that
limit.
Type 3. Transfers FROM the Guaranteed
Interest Account. This type of transfer
can be requested at any time. A Market
Value Adjustment will apply unless your
request is received at our Administrative
Office, WITHIN 30 DAYS BEFORE the end
of the applicable Accumulation Period. If
multiple Accumulation Period accounts
are in effect, your transfer request must
specify which Accumulation Period
account(s) funds are to be transferred
from.
Type 4. Transfers FROM the Dollar Cost
Averaging Plus Account. This type of
transfer can only be made to one or more
Sub-accounts in accordance with the
Dollar Cost Averaging Plus Account section.
Fund Value may not be transferred
from the Dollar Cost Averaging Plus Account
to the Guaranteed Interest Account.
Transfers INTO the Dollar Cost Averaging
Plus Account are not permitted.
When will a tran