Common use of Surrender Charge Clause in Contracts

Surrender Charge. A surrender charge may apply in the event You surrender part of or all of Your Contract Value. The Schedule of Surrender Charges for Your contract is shown under Contract Data. A surrender charge applies if You surrender purchase payments that are still in the surrender charge period. Refer to Waiver of Surrender Charges for situations when surrender charges are not deducted. We determine Your surrender charge by multiplying the amount of each purchase payment surrendered which could be subject to a surrender charge by the applicable surrender charge percentage. The amount that represents purchase payments surrendered is calculated using a prorated formula based on the percentage of Your Contract Value being surrendered. As a result, the amount that represents purchase payments surrendered may be greater than Your Contract Value surrendered. We determine the amount that represents purchase payments surrendered (PPS), purchase payments not subject to a surrender charge (PPF), and purchase payments which could be subject to a surrender charge (PPSC) by the following formula: PPS = PPSC + PPF PPSC = ( PS - FA CV - FA ) X (PP - PPF) PPF = FA - “contract earnings”, but not less than zero PP = Purchase payments not previously surrendered (total purchase payments – PPS) PS = Amount the Contract Value is reduced by the surrender FA = the “total free amount” CV = Contract Value prior to the surrender With respect to these surrender provisions, “contract earnings” is defined as the Contract Value, less purchase payments not previously surrendered, but not less than zero. With respect to these surrender provisions, “contract earnings” are surrendered first followed by purchase payments. After calculating the amount of purchase payments surrendered, We use the surrender order described below to determine the surrender charge. The “total free amount” is the amount You are allowed to surrender each contract year without incurring a surrender charge. The “total free amount” calculation is described below and is recalculated on each Contract Anniversary during the surrender charge period. Any unused portion does not carry over to future contract years. During the first contract year the “total free amount” is the greater of:

Surrender Charge. A surrender charge may apply in the event You surrender part of or all of Your Contract ValueValue during the surrender charge period. The Schedule of Surrender Charges for Your contract is shown under Contract Data. A surrender charge applies if You surrender purchase payments that are still in during the surrender charge period. Refer to Waiver of Surrender Charges for situations when surrender charges are not deducted. We determine Your surrender charge amount is determined by multiplying the amount of each purchase payment payments surrendered which could be subject to a surrender charge by the applicable surrender charge percentage. The amount that represents purchase payments surrendered is calculated using a prorated formula based on the percentage of Your Contract Value being surrendered. As a result, the amount that represents purchase payments surrendered may be greater than Your Contract Value surrendered. We determine the amount that represents purchase payments surrendered (PPS), purchase payments not subject to a surrender charge (PPF), and purchase payments which could be subject to a surrender charge (PPSC) by the following formula: PPS = PPSC + PPF PPSC = ( PS - FA CV - FA ) X (PP - PPF) PPF = FA - “contract earnings”, but not less than zero PP = Purchase payments not previously surrendered (total purchase payments – PPS) PS = Amount the Contract Value is reduced by the surrender FA = the “total free amount” CV = Contract Value prior to the surrender With respect to these surrender provisions, “contract earnings” is defined as the Contract Value, less purchase payments not previously surrendered, but not less than zero. With respect to these surrender provisions, “contract earnings” are surrendered first followed by purchase payments. After calculating the amount of purchase payments surrendered, We use the surrender order described below to determine the surrender charge. The “total free amount” is the amount You are allowed to surrender each contract year without incurring a surrender charge. The “total free amount” calculation is described below and is recalculated on each Contract Anniversary during the surrender charge period. Any unused portion does not carry over to future contract years. During the first contract year the “total free amount” is the greater of:surrender

Surrender Charge. A surrender charge may apply in the event You surrender part of or all of Your Contract Value. The Schedule of Surrender Charges for Your contract is shown under Contract Data. A surrender charge applies if You surrender purchase payments that are still in the surrender charge period. Refer to Waiver of Surrender Charges for situations when surrender charges are not deducted. We determine Your surrender charge by multiplying the amount of each purchase payment surrendered which could be subject to a surrender charge by the applicable surrender charge percentage. The amount that represents purchase payments surrendered is calculated using a prorated formula based on the percentage of Your Contract Value being surrendered. As a result, the amount that represents purchase payments surrendered may be greater than Your Contract Value surrendered. We determine the amount that represents purchase payments surrendered (PPS), purchase payments not subject to a surrender charge (PPF), and purchase payments which could be subject to a surrender charge (PPSC) by the following formula: PPS = PPSC + PPF PPSC = ( (PS - FA CV - FA FA) X (PP - PPF) CV - FA (but not less than zero) PPF = FA - “contract earnings”, but not less than zero PP = Purchase payments not previously surrendered (total purchase payments – PPS) PS = Amount the Contract Value is reduced by the surrender FA = the “total free amount” CV = Contract Value prior to the surrender With respect to these surrender provisions, “contract earnings” is defined as the Contract Value, less purchase payments not previously surrendered, but not less than zero. With respect to these surrender provisions, “contract earnings” are surrendered first followed by purchase payments. After calculating the amount of purchase payments surrendered, We use the surrender order described below to determine the surrender charge. The “total free amount” is the amount You are allowed to surrender each contract year without incurring a surrender charge. The “total free amount” calculation is described below and is recalculated on each Contract Anniversary during the surrender charge period. Any unused portion does not carry over to future contract years. During the first contract year the “total free amount” is the greater of: