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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
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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).
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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
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PAGE 1
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Table of Contents
<TABLE>
<CAPTION>
Section Page
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<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
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PAGE 2
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<TABLE>
<CAPTION>
Section Page
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<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>
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PAGE 2A
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1. Schedule of Payments and Charges
Flexible Payment Variable Annuity Contract BGP0000800
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Initial Purchase Payment
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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]
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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.
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PAGE 3
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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
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PAGE 3A
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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:
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<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>
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PAGE 4
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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:
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[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.
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PAGE 4A
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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)
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PAGE 5
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"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)
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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
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PAGE 6
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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.
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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.
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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.
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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.
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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 transfer request take effect?
Type 1 or Type 2 transfers will take effect on the Business Day that falls on,
or next follows, the date we receive the request at our Administrative Office.
Type 3 transfers requested within 30 days before the end of an Accumulation
Period will take effect at the end of the Accumulation Period. Type 3 transfers
requested at any other time will take effect on the Business Day that falls on,
or next follows, the date we receive the request at our
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Administrative Office. Type 4 transfers will take effect on the scheduled
monthly or quarterly anniversary as elected by you. See the Dollar Cost
Averaging Plus section.
What is the charge for a transfer and how does it work?
Each request for a transfer is considered one transaction even if more than one
type of transfer and several different accounts are involved. Transfers during
any contract year in excess of the number of guaranteed free transfers shown on
page 3 are subject to a transfer charge. The guaranteed maximum amount of that
charge is shown on page 3. But, we may charge less than that maximum, or waive
the charge entirely, in accordance with our procedure in effect at the time of
the request. There is no transfer charge applicable to transfers from the Dollar
Cost Averaging Plus Account.
If we change the amount of the charge we will send an endorsement to show the
change.
If a transfer charge is applicable, how is it allocated among the accounts?
The charge is allocated against the first of the Sub-accounts and/or the
Guaranteed Interest Account from which Fund Value is being transferred.
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