Common use of Account Charge Clause in Contracts

Account Charge. On the last business day of each Contract Year, LNL will deduct $25.00 from the Account Value. At surrender the Account Charge will be deducted from the Account Value. If the Owner has elected more than one sub-account, the deduction of the Account Charge shall be taken from each sub-account on a pro-rata basis. Each sub-account will be adjusted by an amount equal to a fraction of the charge. The fraction is equal to "a" divided by "b", where a is the Account Value of the sub-account and "b" is the value of all sub-accounts under the Contract. The fraction for each sub-account is applied to the deduction to determine each sub-account's deduction. For the purposes of this Section, the fixed portion of the Contract is considered a sub-account.