Common use of PURCHASE PAYMENT ALLOCATION Clause in Contracts

PURCHASE PAYMENT ALLOCATION. The initial Purchase Payment will be allocated to the Guaranteed Interest Division and the Divisions of the Variable Account according to your most recent written instructions. In some states which require the return of Purchase Payments during the 10 Day Contract Examination Period, the initial Purchase Payments are allocated to the Fidelity Investments Money Market Division during the 10 Day Contract Examination Period. As of the end of the 10 Day Contract Examination Period, the initial Purchase Payments are then transferred to the Divisions as shown on the Allocation table in the Schedule. Any Purchase Payments thereafter will be allocated to each Division in the same proportion that the Accumulation Value in each Division bears to the total Accumulation Value as of the date we receive that additional Purchase Payment at our Customer Service Center, or as otherwise instructed by you. You may designate a different allocation with respect to any Purchase Payments by sending us a written notice with the Purchase Payment. VARIABLE ACCOUNT PROVISIONS THE VARIABLE ACCOUNT The Variable Account is an account established by us, pursuant to the laws of the State of Colorado, to separate the assets funding the variable benefits for the class of policies to which this Contract belongs from the other assets of Security Life of Denver. The Variable Account is registered as a unit investment trust under the Investment Company Act of 1940. All income, gains and losses, whether or not realized, from assets allocated to the Variable Account are credited to or charged against the Variable Account without regard to income, gains or losses of our General Account. The assets of the Variable Account are our property, but are separate from our General Account and our other Variable Accounts. That portion of the assets of the Variable Account which is equal to the reserves and other contract liabilities with respect to the Variable Account is not subject to creditor claims against us. VARIABLE ACCOUNT DIVISIONS The Variable Account is divided into Divisions, each of which invests in a series fund Portfolio designed to meet the objectives of the Division. The current eligible Divisions are shown in the Schedule. We may, from time to time, add additional Divisions. If we do, you may be permitted to select from these other Divisions subject to the terms and conditions we may impose on those allocations. Form 1198(VA) Page 12 We reserve the right to limit the number of Divisions in which you may invest. CHANGES WITHIN THE VARIABLE ACCOUNT When permitted by law, and subject to any required notice to you and approval of the Securities and Exchange Commission ("SEC"), state regulatory authorities or Contract Owners, we may from time to time make the following changes to the Variable Account: . Make additional Divisions available. These Divisions will invest in investment Portfolios we find suitable for the Contract. . Eliminate Divisions from the Variable Account, combine 2 or more Divisions, or substitute a new Portfolio for the Portfolio in which a Division invests. A substitution may become necessary if, in our judgment, a Portfolio no longer suits the purposes of the Contract. This may happen due to a change in laws or regulations, or a change in a Portfolio's investment objectives or restrictions. This may also happen if the Portfolio is no longer available for investment, or for some other reason, such as a declining asset base. . Transfer assets of the Variable Account, which we determine to be associated with the class of contracts to which your Contract belongs, to another Variable Account. . Withdraw the Variable Account from registration under the Investment Company Act of 1940. . Operate the Variable Account as a management investment company under the Investment Company Act of 1940. . Cause one or more Divisions to invest in a mutual fund other than or in addition to the Portfolios. . Discontinue the sale of Contracts and certificates. . Terminate any employer or plan trustee agreement with us pursuant to its terms. . Restrict or eliminate any voting rights as to the Variable Account. . Make any changes required by the Investment Company Act of 1940 or the rules or regulations thereunder. GENERAL ACCOUNT PROVISIONS THE GENERAL ACCOUNT The General Account holds all of our assets other than those held in the Variable Account or our other separate accounts. The Guaranteed Interest Division is a part of our General Account. GUARANTEED INTEREST DIVISION The Guaranteed Interest Division is another Division to which you may allocate Purchase Payments or make transfers. The Accumulation Value of the Guaranteed Interest Division is equal to the Net Purchase Payments allocated to this Division plus any earned interest minus deductions taken from this Division. Interest is credited at the guaranteed rate shown in the schedule or may be credited at a higher rate. Any higher rate is guaranteed to be in effect for at least 12 months. Form 1198(VA) Page 13 TRANSFER PROVISIONS After the Contract Examination Period, the Accumulation Value in each Division may be transferred, upon request, to any other Division subject to the limitations on transfers involving the Guaranteed Interest Division as detailed in the following section. Any transfers made due to the operation of Dollar Cost Averaging or Automatic Rebalancing will not count toward the limit on the number of transfers allowed free of charge. The minimum amount that may be transferred from each Division is the lesser of $100 or the balance of a Division. ------------------------------------ ------------------------------ Accumulation Period Annuity Period --------------------------------------------------------------------------------------------------------- Free Transfers 12 4 --------------------------------------------------------------------------------------------------------- Total Number of Transfers Permitted Unlimited 4 --------------------------------------------------------------------------------------------------------- Excess Transfer Charge $25 for each transfer in excess Not Applicable of 12 during any Contract Year. --------------------------------------------------------------------------------------------------------- We reserve the right to limit the number of transfers per Contract Year to 12 and to limit excessive trading activity.

PURCHASE PAYMENT ALLOCATION. The initial Purchase Payment will be allocated to the Guaranteed Interest Division and the Divisions of the Variable Account according to your most recent written instructions. In some states which require the return of Purchase Payments during the 10 Day Contract Examination Period, the initial Purchase Payments are allocated to the Fidelity Investments Money Market Division during the 10 Day Contract Examination Period. As of the end of the 10 Day Contract Examination Period, the initial Purchase Payments are then transferred to the Divisions as shown on the Allocation table you directed in the Scheduleapplication. Any Purchase Payments thereafter will be allocated to each Division in the same proportion that the Accumulation Value in each Division bears to the total Accumulation Value as of the date we receive that additional Purchase Payment at our Customer Service Center, or as otherwise instructed by you. You may designate a different allocation with respect to any Purchase Payments by sending us a written notice with the Purchase Payment. VARIABLE ACCOUNT PROVISIONS THE VARIABLE ACCOUNT The Variable Account is an account established by us, pursuant to the laws of the State of ColoradoNew York, to separate the assets funding the variable benefits for the class of policies to which this Contract belongs from the other assets of Security First ING Life of DenverNew York. The Variable Account is registered as a unit investment trust under the Investment Company Act of 1940. All income, gains and losses, whether or not realized, from assets allocated to the Variable Account are credited to or charged against the Variable Account without regard to income, gains or losses of our General Account. The assets of the Variable Account are our property, but are separate from our General Account and our other Variable Accounts. That portion of the assets of the Variable Account which is equal to the reserves and other contract liabilities with respect to the Variable Account is not subject to creditor claims against us. VARIABLE ACCOUNT DIVISIONS The Variable Account is divided into Divisions, each of which invests in a series fund Portfolio designed to meet the objectives of the Division. The current eligible Divisions are shown in the Schedule. We may, from time to time, add additional Divisions. If we do, you may be permitted to select from these other Divisions subject to the terms and conditions we may impose on those allocations. Form 1198(VA) Page 12 We reserve the right to limit the number of Divisions in which you may invest. CHANGES WITHIN THE VARIABLE ACCOUNT When permitted by law, and subject to any required notice to you and approval of the Securities and Exchange Commission ("SEC"), state regulatory authorities or Contract Owners, we may from time to time make the following changes to the Variable Account: . Make additional Divisions available. These Divisions will invest in investment Portfolios we find suitable for the Contract. . Eliminate Divisions from the Variable Account, combine 2 or more Divisions, or substitute a new Portfolio for the Portfolio in which a Division invests. A substitution may become necessary if, in our judgment, a Portfolio no longer suits the purposes of the Contract. This may happen due to a change in laws or regulations, or a change in a Portfolio's investment objectives or restrictions. This may also happen if the Portfolio is no longer available for investment, or for some other reason, such as a declining asset base. . Transfer assets of the Variable Account, which we determine to be associated with the class of contracts to which your Contract belongs, to another Variable Account. . Withdraw the Variable Account from registration under the Investment Company Act of 1940. . Operate the Variable Account as a management investment company under the Investment Company Act of 1940. . Cause one or more Divisions to invest in a mutual fund other than or in addition to the Portfolios. . Discontinue the sale of Contracts and certificates. . Terminate any employer or plan trustee agreement with us pursuant to its terms. . Restrict or eliminate any voting rights as to the Variable Account. . Make any changes required by the Investment Company Act of 1940 or the rules or regulations thereunder. GENERAL ACCOUNT PROVISIONS THE GENERAL ACCOUNT The General Account holds all of our assets other than those held in the Variable Account or our other separate accounts. The Guaranteed Interest Division is a part of our General Account. GUARANTEED INTEREST DIVISION The Guaranteed Interest Division is another Division to which you may allocate Purchase Payments or make transfers. The Accumulation Value of the Guaranteed Interest Division is equal to the Net Purchase Payments allocated to this Division plus any earned interest minus deductions taken from this Division. Interest is credited at the guaranteed rate shown in the schedule or may be credited at a higher rate. Any higher rate is guaranteed to be in effect for at least 12 months. Form 1198(VA) Page 13 TRANSFER PROVISIONS After the Contract Examination Period, the Accumulation Value in each Division may be transferred, upon request, to any other Division subject to the limitations on transfers involving the Guaranteed Interest Division as detailed in the following section. Any transfers made due to the operation of Dollar Cost Averaging or Automatic Rebalancing will not count toward the limit on the number of transfers allowed free of charge. The minimum amount that may be transferred from each Division is the lesser of $100 or the balance of a Division. ------------------------------------ ------------------------------ Accumulation Period Annuity Period --------------------------------------------------------------------------------------------------------- Free Transfers 12 4 --------------------------------------------------------------------------------------------------------- Total Number of Transfers Permitted Unlimited 4 --------------------------------------------------------------------------------------------------------- Excess Transfer Charge $25 for each transfer in excess Not Applicable of 12 during any Contract Year. --------------------------------------------------------------------------------------------------------- We reserve the right to limit the number of transfers per Contract Year to 12 and to limit excessive trading activity.