CORPORATE FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
CORPORATE
FLEXIBLE PREMIUM VARIABLE
UNIVERSAL
LIFE INSURANCE POLICY
PLEASE
READ YOUR POLICY CAREFULLY
This
policy is a legal contract between the Owner (you, your) and Nationwide Life
Insurance Company (we, our, us, the Company).
INSURING
AGREEMENT:
We
issue
this policy in consideration of your application and the payment of the Initial
Premium. We agree to pay the Death Proceeds to the Beneficiary upon
receiving proof that the Insured has died while this policy is in force and
before the Maturity Date. We agree to pay the Maturity Proceeds to
you if the Insured is living on the Maturity Date.
You
and
we are bound by the conditions and provisions of this policy.
The
Cash Surrender Value of this policy will vary from day to day. It may
increase or decrease depending on the investment experience of the
policy. Refer to the Nonforfeiture Provisions on page 12 for
details. There is no guaranteed Surrender
Value.
The
amount or duration of the death benefit will be variable and depend on the
investment experience of the policy. The death benefit will never be
less than the Specified Amount as long as your policy is in
force. Refer to the Death Benefit Provisions on page 10 for
details.
RIGHT
TO EXAMINE POLICY
You
may return this policy to us within (1) 10 days after you get it, or (2) 45
days
after you sign the application, or (3) 10 days after we mail or deliver the
Notice of Withdrawal Right, whichever is latest. The policy, with a
written request for cancellation, must be mailed or delivered to our Home Office
or to the agent who sold it to you. The returned policy will be
treated as if we never issued it, and we will pay you the amount specified
by
the laws of the state in which the policy was issued.
If
you
have any questions about your policy or need additional insurance service,
contact your agent or write to our Home Office.
Signed
at
our Home Office on the Policy Date.
Secretary President
·
Adjustable Death
Benefit · Flexible
premiums
payable during Insured's lifetime until the Maturity Date
·
Death Proceeds
payable at Insured's death prior to the Maturity Date
·
Maturity Proceeds
payable on the Maturity Date
·
Not eligible for
dividends · Investment
experience reflected in benefits
VLO-0758 Nationwide
Life Insurance Company
Home
Office: One Nationwide Plaza · Columbus,
Ohio 43215-2220
CONTENTS
Page
Annual
Report 8
Assignment 9
Beneficiary 8
Cash
Surrender Value 4
Cash
Value 13
Death
Benefit 10
Definitions 4
Error
in
Age or Gender 7
Exchange
of Policy Provisions 16
Fixed
Account 18
Grace
Period 9
Incontestability 6
Insured 5
Insuring
Agreement 1
Loan 16
Monthly
Cost of Insurance 15
Nonforfeiture 12
Optional
Modes of Settlement 19
Ownership 8
Partial
Surrender 12
Policy
Data Page 3
Premium 9
Reinstatement 9
Right
to
Transfer 18
Separate
Account Provisions 17
Suicide 7
Termination 8
Valuation
of Assets 17
DEFINITIONS
APPROVAL
DATE: The date we certify that the complete
application materials have been submitted by the Owner and the underwriting
conditions satisfied.
ATTAINED
AGE: Attained Age is the Issue Age plus the number of
full years since the Policy Date.
BENEFICIARY: The
Beneficiary is the person to whom the Death Proceeds are paid. The
Beneficiary is named in the application, unless changed.
CASH
SURRENDER
VALUE: The amount payable to you upon Complete
Surrender. The Cash Surrender Value of your policy on any date is the
Enhanced Cash Value minus any Indebtedness.
CASH
VALUE: Your policy's Cash Value is the sum of the
value in each Variable Subaccount, the Fixed Account, and the Policy Loan
Account. Refer to the Nonforfeiture Provision for
details.
COMPANY: The
Company is the Nationwide Life Insurance Company. “We,” “our,” and “us” refer to
the Company.
COMPLETE
SURRENDER: The termination of the life
insurance policy by you.
CONTINGENT
BENEFICIARY: The Contingent Beneficiary will become
the Beneficiary if the named Beneficiary dies prior to the date of the death
of
the Insured. The Contingent Beneficiary is named in the application,
unless changed.
DAILY
ASSET
CHARGE PERCENTAGE: The daily rate
used in the calculation of the Variable Subaccount Asset
Charge.
DEATH
PROCEEDS: The Death Proceeds are the amount payable
to the Beneficiary if the Insured dies while your policy is in force prior
to
the Maturity Date. Refer to the Death Benefit Provisions for
details.
DEFERRED
PERCENT
OF PREMIUM CHARGE: A charge assessed at the beginning
of the second and subsequent policy years, up to and including policy year
5,
based on the Premium paid during policy year 1.
ENHANCED
CASH
VALUE: The sum of the Cash Value and the Enhancement
Benefit, if any.
ENHANCEMENT
BENEFIT: An additional value payable upon
Complete Surrender, provided the qualifying conditions have been
satisfied. Refer to the Nonforfeiture Provisions.
FIXED
ACCOUNT: A Fixed Account is an investment option
which is funded by the General Account of the Company.
FUND: A
Fund is the underlying mutual fund in which Variable Subaccount assets are
invested. There is a Fund that corresponds to each Variable
Subaccount in a Separate Account. The initial Funds are listed on the
Policy Data Page with the corresponding Variable Subaccounts.
GENERAL
ACCOUNT: The General Account is made up of all of our
assets other than those held in any separate investment account.
HOME
OFFICE: The Home Office of the Company is located at
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇.
INDEBTEDNESS: Indebtedness
is any amount you owe us as a result of a policy loan. Indebtedness
consists of principal amount plus accrued interest.
INITIAL
INVESTMENT DATE: The Initial Investment Date is the
Valuation Day that falls on or next following the later of (1) the Approval
Date, (2) the Policy Date, and (3) the date the Initial Premium is received
in
the Home Office or payment is received from another carrier in conjunction
with
a policy issued pursuant to a Section 1035 Exchange.
INITIAL
PREMIUM: The Initial Premium is the premium required
for coverage to become effective. It is shown on the Policy Data
Page.
INSURED: The
Insured is the person whose life is covered by this insurance policy as named
in
the application and shown on the Policy Data Page.
ISSUE
AGE: Issue Age is the Insured's age on the last
birthday on or before the Policy Date. It is shown on the Policy Data
Page.
MATURITY
DATE: The Maturity Date is the Policy Anniversary on
or next following the Insured's 100th birthday.
MATURITY
PROCEEDS: Maturity Proceeds are the amount of money
payable to you on the Maturity Date if your policy is still in
force. The Maturity Proceeds will be equal to the amount of the Cash
Value, less any Indebtedness.
MINIMUM
REQUIRED
DEATH BENEFIT: The Minimum Required Death Benefit is
the least Death Benefit amount which will qualify the policy as life insurance
under Section 7702 of the Internal Revenue Code or any successive or similar
section thereto.
MINIMUM
SPECIFIED AMOUNT: The Minimum Specified
Amount is shown on the Policy Data Page. Changes to the policy which
result in a Specified Amount less than the Minimum Specified Amount will
not be
processed. Refer to Specified Amount Decreases and Partial Surrender
Provisions for details.
MONTHLY
ANNIVERSARY DAY: The Monthly Anniversary Day is the
same day as the Policy Date for each succeeding month. In any policy
month, where such day does not exist (e.g. 29th, 30th, and 31st), we will
consider the last day of the calendar month as the Monthly Anniversary
Day.
MONTHLY
DEDUCTION: The Policy Charges against the
Cash Value that occur on each Monthly Anniversary Day.
NET
AMOUNT AT
RISK: The Net Amount at Risk on any day is the Death
Benefit minus the Cash Value, where the Cash Value is the amount at the
beginning of the day prior to any Monthly Deductions for Policy
Charges.
NET
PREMIUM: The Net Premium is equal to the actual
premium minus the Percent of Premium Charge. The guaranteed maximum
Percent of Premium Charge is shown on the Policy Data Page.
OWNER: The
Owner has all rights under this policy and is named in the application unless
later changed and endorsed on this policy. “You” or “your”
refer to the Owner of this policy.
PARTIAL
SURRENDER: A partial distribution of
the Cash Surrender Value. Unless there is a Preferred Partial
Surrender, there will be a reduction in the amount of insurance coverage
provided by the policy.
PARTIAL
SURRENDER AMOUNT: This is the amount
requested by you as a Partial Surrender.
POLICY
ANNIVERSARY: The Policy Anniversary is the same day
and month as the Policy Date for each succeeding year.
POLICY
CHARGES: Fees paid to the Company for this
policy. These include Percent of Premium Charges and Monthly
Deductions.
POLICY
DATA
PAGE: The Policy Data Page contains more detailed
information about the policy, some of which is unique and particular to the
Owner, the Beneficiary, and the Insured.
POLICY
DATE: The date on which Policy Charges
begin. It is shown on the Policy Data Page. Monthly
Anniversary Days are measured from the Policy Date. This date will be
the date the Initial Premium is paid, unless you request, and we approve
another
date.
POLICY
LOAN
ACCOUNT: The Policy Loan Account is that portion of
the Cash Value which results from policy loans.
RIDER: A
Rider is an optional benefit or feature available for purchase with the
policy.
SEC: SEC
is the Securities and Exchange Commission.
SECTION
1035
EXCHANGE: A
policy surrender that qualifies as a tax-free exchange under Section 1035
of the
Internal Revenue Code or any successive or similar section thereto.
SEPARATE
ACCOUNT: A Separate Account is separate from the
General Account of the Company. A Separate Account funds specified,
non-guaranteed investment options available under the policy.
SPECIFIED
AMOUNT: The Specified Amount is the amount of Death
Benefit coverage on the Policy Date. Thereafter, the Death Benefit coverage
under your policy will equal or exceed this amount, provided you do not request
a Specified Amount decrease and provided a Partial Surrender has not
occurred. The Specified Amount is shown on the Policy Data
Page.
VALUATION
DAY: A Valuation Day is each day that the New York
Stock Exchange is open for trading except for customary holidays observed
by
us.
VALUATION
PERIOD: A Valuation Period is the interval of time
between a Valuation Day and the next Valuation Day.
VARIABLE
SUBACCOUNT: A Variable Subaccount is a part of the
Separate Account. The assets in each Variable Subaccount are invested
exclusively in a specified corresponding Fund. The Variable
Subaccounts are listed on the Policy Data Page.
VARIABLE
SUBACCOUNT ASSET CHARGE: A charge assessed on a
monthly basis and equal to a percentage of the assets in the Variable
Subaccounts attributable to the policy. The maximum percentage is shown on
the
Policy Data Pages.
GENERAL
POLICY PROVISIONS
ENTIRE
CONTRACT: The entire contract consists of this
policy, any attached Riders or endorsements, and the attached copy of any
written application, including any written supplemental applications and
other
related documents. No agent, registered representative, or other
person may change this policy or waive any of its provisions. Any
agreement to alter this policy must be in writing, signed by our President
or
Secretary and attached to or endorsed on your policy. We will not be
bound by any promise or representations made by any agent or other
persons.
APPLICATION: All
statements made in an application, application supplements, amendments and
other
related documents are considered representations and not
warranties. In issuing this policy, we have relied on the statements
made in any application to be true and complete. No such statement
will be used to void the policy or to deny a claim unless that statement
is a
material misrepresentation.
INCONTESTABILITY: We
will not contest payment of the Death Proceeds upon the Insured’s death based on
the initial Specified Amount after this policy has been in force during the
Insured's lifetime for two (2) years from the Policy Date. For any
increase in Specified Amount requiring evidence of insurability, we will
not
contest payment of the Proceeds based on such an increase after it has been
in
force during the Insured's lifetime for two (2) years from the effective
date of
the increase. Further, any reinstatement will be incontestable after
the reinstated policy has been in force during the Insured’s lifetime for two
(2) years from the effective date of the reinstatement.
SUICIDE: If
the Insured commits suicide, while sane or insane, within two (2) years from
(i)
the Policy Date or (ii) the reinstatement date, we will not pay the
Death Proceeds normally payable on the Insured's death. Instead, we
will pay the Beneficiary an amount equal to all premiums paid prior to the
Insured's death, less any Indebtedness, and less any Partial
Surrenders. For any increase in Specified Amount requiring evidence
of insurability, if the Insured commits suicide, while sane or insane, within
two (2) years from the effective date of any such increase, we will not pay
the
Death Proceeds associated with such an increase. Instead, our
liability with respect to such an increase will be limited to its cost of
insurance charges.
If
the
policy was issued pursuant to a Section 1035 Exchange, then we will pay a
portion of the Death Proceeds for a suicide within two (2) years from the
Policy
Date, provided the Beneficiary is the Owner, and provided the exchanged policy
was originally issued more than two (2) years prior to the new Policy
Date. The portion of Death Proceed we pay will be limited to the
lesser of (a) the amount of insurance under the exchanged policy on the Policy
Date, or (b) the new policy’s Specified Amount.
INTERNAL
REVENUE
CODE LIFE INSURANCE QUALIFICATION TEST: At time of
Policy issue, you must choose either the Guideline Premium/Cash Value Corridor
Test or the Cash Value Accumulation Test. You cannot change the test
once we issue the Policy. The two tests are defined in Section 7702
of the Internal Revenue Code and are used to define the Minimum Required
Death
Benefit and premium limitations.
ERROR
IN AGE OR
GENDER: If the age or gender (if not unisex
classified) of the Insured has been misstated, the Death Benefit and Cash
Value
will be adjusted. The adjusted Death Benefit will be (1) multiplied
by (2) and then the result added to (3) where:
1. is
the
Net Amount at Risk at the time of the Insured's death;
2. is
the
ratio of the Monthly Cost of Insurance applied in the policy month of death
and
the MonthlyCost of Insurance that should have been applied at the true age
in
the policy month of death; and
3. is
the
Cash Value at the time of the Insured's death.
The
Cash
Value will be adjusted to reflect the Cost of Insurance Charges based on
the
correct age and gender (if not unisex classified) from the Policy
Date.
PAYMENT
OF
PROCEEDS: The Death Proceeds will be paid in one sum
to the Beneficiary, unless the Beneficiary elects to leave the proceeds on
deposit. Any proceeds payable on the Maturity Date or upon surrender
of this policy will be paid in one sum to you, unless you elect to leave
the
proceeds on deposit.
POSTPONEMENT
OF
PAYMENTS: We will normally pay any amount payable on
maturity or policy loan within seven (7) days after we receive your written
request. We will normally pay any amount on a Complete or Partial
Surrender within thirty (30) days after we receive your written request.
We will
normally pay any Death Proceeds within seven (7) days after we receive proof
of
death and any other information we may reasonably require to pay a
claim. However, such payments may be postponed for up to six (6)
months if:
1. the
New
York Stock Exchange is closed (except for customary holiday closings);
or
2. the
SEC
requires trading be restricted or declares an emergency; or
3. the
SEC
lets us defer payments for the protection of our policy Owners; or
4. Policy
Values are being withdrawn from the Fixed Account.
EFFECTIVE
DATES
OF COVERAGE: Except if your Policy is issued pursuant
to a Section 1035 Exchange, the effective date of coverage under your policy
is
the later of:
1. the
Approval Date, or
2. the
Policy Date, or
3. the
date
the Initial Premium is received in the Home Office.
If
your
Policy is issued pursuant to a Section 1035 Exchange to us, the effective
date
of coverage is the later of (a) the date the insurance carrier for the exchanged
policy authorizes payment of the Cash Surrender Value to us, or (b) the Approval
Date, provided there is sufficient premium to fund the Policy Charges for
at
least 3 months.
With
respect to any reinstatement or increase in coverage, the effective date
of
coverage will be the Monthly Anniversary Day on or next following the date
we
approve the supplemental application. With respect to any decrease in
coverage, the effective date of coverage will be the Monthly Anniversary
Day
that falls on or next following the date we receive your request.
TERMINATION: All
coverage under your policy will terminate when any one of the following events
occurs:
1. you
request in writing that the coverage terminate;
2. the
Insured dies;
3. the
Insured is alive on the Maturity Date, and you elect not to extend the Maturity
Date;
4. the
Grace
Period ends; or
5. you
completely surrender the policy for its Cash Surrender Value.
ANNUAL
REPORT: We will send you a report at least once a
year which shows the current Cash Value, Cash Surrender Value, amount of
insurance, premiums paid, all charges since the last report and outstanding
policy Indebtedness. The report will also include any other
information required by laws and regulations, both federal and
state. We will mail this report to you at your address in the
application or another address you specify.
ILLUSTRATION
OF
BENEFITS AND VALUES: We will provide an illustrative
projection of future benefits and values under this policy at any
time. Your written request and payment of a service fee set by us at
the time of the request may be required.
NONPARTICIPATION: This
is a nonparticipating policy on which no dividends are payable. Your
policy will not share in our profits or surplus earnings.
CURRENCY: Any
money we pay, or that is paid to us, must be in currency of the United
States.
SIGNATURE
GUARANTEE: For your protection, a request for a
surrender, policy loan, or a change in ownership must be signed. The Company
may
require the signature to be guaranteed by a member firm of the New York,
American, Boston, Midwest, Philadelphia, or Pacific Stock Exchange, or by
a
commercial bank (not a savings bank), which is a member of the Federal Deposit
Insurance Corporation. In some cases, the Company may require additional
documentation of a customary nature.
WAIVER
AND
ESTOPPEL: Our failure to enforce any provision of
this policy in one or more instances shall not be deemed, and may not be
construed or relied upon, as a waiver of such
provision. Nor shall any waiver or relinquishment of any right or
power hereunder in any one or more instance be deemed, and may not be construed
or relied upon as, a continuing waiver or relinquishment of that right or
power
at any other time or times.
OWNER,
BENEFICIARY AND ASSIGNMENT PROVISIONS
OWNER: You
must be a corporation or an entity established by a corporation or an affiliate
of a corporation which fulfills certain corporate obligations. While
the Insured is living, all rights in your policy belong to you.
You
may
name a new Owner at any time while the Insured is living. If a new
Owner is named, any earlier designation is automatically revoked. Any
change must be in a written form satisfactory to us and recorded at our Home
Office. Once recorded, the change will take effect as of the date you
signed it. It will not affect any payment made or any action taken by
us before it was recorded. We may require that you send us your
policy for endorsement before making a change.
We
reserve the right to modify the Enhancement Benefit if a new Owner is
named.
BENEFICIARY: The
Beneficiary and Contingent Beneficiary on the Policy Date are named in the
application. More than one Beneficiary or Contingent Beneficiary may
be named. If more than one Beneficiary is alive when the Insured
dies, we will pay them in equal shares, unless you have specified
otherwise.
If
any
Beneficiary dies before the Insured, that Beneficiary's interest will be
paid to
any surviving Beneficiaries or Contingent Beneficiaries according to their
respective interests, unless you have specified otherwise. If no
Beneficiary is living at the Insured's death, we will consider you or your
estate to be the Beneficiary. While the Insured is living, you may change
any
Beneficiary or Contingent Beneficiary. Any change must be in a
written form satisfactory to us and recorded at our Home Office. Once
recorded, the change will take effect as of the date you signed
it. It will not affect any payment made or action taken by us before
it was recorded. We may require that you send us your policy for
endorsement before making a change.
ASSIGNMENT: While
the Insured is living, you may assign any or all rights under the
policy. We will not be bound by any assignment unless it is in a
written form acceptable to us and is recorded at our Home Office. An
assignment will not affect any payments made or actions taken by us before
we
record it. We will not be responsible for the sufficiency or validity
of any assignment.
The
assignment will be subject to any Indebtedness owed to us before it was
recorded. The interest of any Beneficiary will be subject to the
rights of any assignee of record at our Home Office. If the
assignment involves a Section 1035 Exchange, the Enhancement Benefit, if
any,
will cease to apply.
PREMIUM
PROVISIONS
PREMIUM
PAYMENTS: The Initial Premium is due on the Policy
Date. It will be credited on the Initial Investment
Date. Any due and unpaid Monthly Deductions will be subtracted from
the Cash Value at this time. Insurance will not be effective until
the Initial Premium is paid, even if the Policy Date precedes the date the
Initial Premium is paid. The required Minimum Initial Premium is
shown on the Policy Data Page.
Premiums
other than the Initial Premium may be paid at any time while your policy
is in
force subject to the limits described below. Planned Premium payment
reminder notices will be furnished upon request. We will send them
according to the premium mode shown on the Policy Data Page. You may
pay the premiums to us at our Home Office or to an authorized
agent. Premium receipts will be furnished.
LIMITS: Each
premium payment must be at least $25. Additional premium payments may
be made at any time while your policy is in force. However, we
reserve the right to require satisfactory evidence of insurability before
accepting any additional premium payment which results in any increase in
the
Net Amount at Risk. Also, we will refund any portion of any premium
payment which is determined to be in excess of the premium limit established
by
law to qualify your policy as a contract for life insurance. We may
also require that any existing policy Indebtedness is repaid prior to accepting
any additional premium payments.
GRACE
PERIOD PROVISIONS
GRACE
PERIOD: If the Cash Surrender Value on a Monthly
Anniversary Day is not sufficient to cover the current Monthly Deduction,
a
Grace Period will be allowed for the payment of a premium of at least 4 times
the current Monthly Deduction. We will send you a notice at the start
of the Grace Period, at your address in the application or another address
you
specify, stating the amount of premium required. The Grace Period
will end 61 days after the day we mail you the notice. If you do not
pay the required amount by the end of the Grace Period, this policy and any
Riders you have selected will terminate without value. If Death
Proceeds become payable during the Grace Period, we will pay them.
REINSTATEMENT: If
the Grace Period has ended and you have not paid the required premium and
have
not surrendered your policy for its Cash Surrender Value, you may reinstate
your
policy if you:
1. submit
a
written request at any time within 3 years after the end of the Grace Period
and
prior to
the
Maturity Date;
2. provide
evidence of insurability satisfactory to us;
3. pay
sufficient premium to cover all Monthly Deductions that were due and unpaid
during the
Grace
Period;
4. pay
sufficient premium to keep the policy in force for 3 months from the date of
reinstatement; and
5. pay
or
reinstate any Indebtedness against the policy which existed at the end of the
Grace Period.
The
effective date of a reinstated policy will be the Monthly Anniversary Day on
or
next following the date the application for reinstatement is approved by
us.
If
your
policy is reinstated, the Cash Value on the date of reinstatement, but prior
to
applying any premiums or loan repayments, will be set equal to the Cash Value
at
the end of the Grace Period.
Unless
you have specified otherwise, all amounts will be allocated based on the Fund
allocation factors in effect at the start of the Grace Period.
DEATH
BENEFIT PROVISIONS
DEATH
BENEFIT: If the Insured dies while the policy is in
force prior to the Maturity Date, your policy will provide a Death
Benefit. The Death Benefit will be determined in accordance with one
of the following options, whichever is in effect on the date of the Insured's
death. The current option in effect is shown on the Policy Data
Page.
Option
1
The
Death
Benefit will be the greater of:
1. the
Specified Amount on the date of death; or
2. the
applicable percentage of the Enhanced Cash Value on the date of
death.
Option
2
The
Death
Benefit will be the greater of:
1. the
Specified Amount plus the Enhanced Cash Value on the date of death;
or
2. the
applicable percentage of the Enhanced Cash Value on the date of
death.
Option
3
The
Death
Benefit will be the greater of:
1. (a)
plus
(b) where:
a. is
the Specified Amount
on the date of death; and
b. is
the greater of zero or
the lesser of (i) and (ii) where:
(i) is
the Option 3
maximum increase shown on the Policy Data Page; and
(ii)
is all
premium payments accumulated to the date of death at the Option 3 interest
rate shown on the Policy Data Page less any Partial Surrenders
accumulated to the date of death at the Option 3 interest rate shown
on the Policy Data Page; or
2. the
applicable percentage of the Enhanced Cash Value on the date of
death.
For
any
Death Benefit option, the applicable percentages of the Enhanced Cash Value
are
shown on the Policy Data Page.
DEATH
PROCEEDS: The actual amount of money payable to the
Beneficiary if the Insured dies while your policy is in force prior to the
Maturity Date is called the Death Proceeds. The Death Proceeds
equal:
1. the
Death
Benefit provided by your policy; plus
2. any
insurance on the Insured's life that may be provided by Riders to your policy;
minus
3. any
Indebtedness; and minus
4. any
due
and unpaid Monthly Deductions accruing during a Grace Period.
We
will
pay the Death Proceeds to the Beneficiary after we receive at our Home Office
proof of death satisfactory to us and such other information as we may
reasonably require. The Death Proceeds will be adjusted under certain
conditions. Refer to the Incontestability, Suicide, and Error in Age
or Gender Provisions.
MAXIMUM
DEATH
BENEFIT: After the Policy Date,
the
Minimum
Required Death Benefit may exceed the Specified Amount due to investment results
reflected in the Cash Value. We reserve the right to limit the Death
Benefit to the Maximum Death Benefit amount shown on the Policy Data
Page. The amount of the Death Benefit is calculated on each Valuation
Day. If the calculation results in an amount greater than the Maximum
Death Benefit, and we elect to exercise the above right, we will generate a
Partial Surrender of sufficient amount that after said Partial Surrender, the
Death Benefit is 90% of the Maximum Death Benefit.
We
will
notify the Owner in writing that a Partial Surrender has been
generated. Such notice shall be sent no later than thirty (30) days
after the event. The requirement that the Owner must submit a written request
is
not applicable to Partial Surrenders that result from this limit to the Death
Benefit. Taxes arising from the Partial Surrender, if any, are the
responsibility of the Owner.
If
the
calculation results in an amount greater than the maximum, and we elect not
to
exercise the above right, we will increase the Maximum Death Benefit by
endorsement or by reissuing the Policy Data Page.
If
the
Insured dies, the Death Benefit shall not exceed the Maximum Death
Benefit. If payment of the proceeds from a Partial Surrender is
pending on the date of death, our obligation to remit such proceeds shall be
in
addition to our obligation to pay Death Proceeds.
MATURITY
DATE
EXTENSION: Prior to the Maturity Date, we will send
you a notice and election form informing you of your option to extend the
Maturity Date of this policy. To invoke this option, you must return
the election form to our Home Office by the Maturity Date. If your
election is not received by the Maturity Date, the Maturity Proceeds will be
paid to you according to the Settlement Provisions.
If
extension of the Maturity Date is elected, the Maturity Date for this policy
will be extended to the date of death of the Insured. However, in no
event will the Maturity Date be extended beyond the point where the policy
would
fail to meet the definition of life insurance as defined by the Internal Revenue
Code as amended. The effective date of the extension will be the
Maturity Date stated in the Policy Data Pages.
In
addition, the following will apply:
|
1.
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No
premium payments will be allowed.
|
|
2.
|
Increases
and/or decreases to the Specified Amount will not be
permitted.
|
|
3.
|
Death
Benefit Option 2 and Death Benefit Option 3 policies (if applicable),
will
be changed to Death Benefit Option
1.
|
|
4.
|
The
amount of death benefit will be equal to the Cash
Value.
|
|
5.
|
100%
of the Cash Value from all the Sub-accounts will be transferred to
the
Fixed Account.
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6.
|
The
Variable Subaccount Asset Charge and monthly expense charges will
no
longer be deducted from the Cash Value. Since the death benefit
will be equal to the Cash Value, the monthly cost of insurance charges
will be zero.
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You
can
continue to take loans and make loan repayments after the original Maturity
Date. The loan amount is transferred from the Fixed Account to the
Policy Loan Account. The Policy Loan Account will continue to
function in the same manner as before the original Maturity Date.
DEATH
BENEFIT
OPTION CHANGES: After the first policy year, you may
change the Death Benefit option under your policy from Option 1 to Option 2,
Option 2 to Option 1, Option 3 to Option 1, or Option 3 to Option
2. We will adjust the Specified Amount such that the Net Amount at
Risk remains constant. The effective date of change will be the
Monthly Anniversary Day on or next following the date we approve the request
for
change.
Only
one
change of option is permitted in a policy year. We will refuse a
Death Benefit Option change which would reduce the Specified Amount to a level
where the total premiums already paid exceeds the premium limit established
by
law to qualify your policy as a contract for life insurance. In order
for a Death Benefit Option change to become effective, the Cash Surrender Value,
after the change, must be sufficient to keep the policy in force for at least
3
months.
SPECIFIED
AMOUNT
INCREASES: You may request an increase in Specified
Amount. Your request must be in writing to our Home Office on forms
we provide. Any increase shall be subject to the following
conditions:
1. you
must
provide evidence of insurability satisfactory to us;
2. the
increase must be for a minimum of $10,000;
3. the
Cash
Surrender Value is sufficient to keep this policy in force for at least 3
months; and
4. the
increased Specified Amount must not exceed the Maximum Death
Benefit.
An
approved increase will have an effective date of the Monthly Anniversary Day
on
or next following the date we approve the supplemental application unless you
request, and we approve a different date. We reserve the right to
limit the number of increases in Specified Amount to one each policy
year. The increase will be allocated among the policy components in
the same manner as the last increase or, in the absence thereof, the original
policy unless an alternative allocation is specifically requested and approved
by us.
SPECIFIED
AMOUNT
DECREASES: At any time after the first policy year,
you may request a decrease in the Specified Amount. Any decrease will
be effective on the Monthly Anniversary Day on or next following our receipt
of
your request unless you request a different date. Any such decrease
shall reduce insurance in the following order:
1. against
insurance provided by the most recent increase;
2. against
the next most recent increases successively; and
3. against
insurance provided under the original application.
We
reserve the right to limit the number of decreases in the Specified Amount
to
one each policy year.
The
decreases will be applied in the same allocation of policy components that
exists in the insurance being decreased unless an alternative allocation is
specifically requested and approved by us.
We
will
refuse a request for a decrease which would:
1. reduce
the Specified Amount to less than the Minimum Specified Amount shown on the
Policy
Data
Page; or
2. disqualify
this policy as a contract for life insurance.
NONFORFEITURE
PROVISIONS
Prior
to
the death of the Insured, this policy may be a valuable asset to
you. Depending on the amount of premiums paid, the investment results
of your allocations to the Variable Subaccounts, and any loans taken by you,
the
policy may have an accumulated value. This value is available to you
in cash upon a Complete or Partial Surrender of the policy.
MINIMUM
LEGAL
VALUES: The cash surrender, loan and other values in
your policy are at least as large as those set by law in the state where it
is
delivered. Where required, we have given the insurance regulator a
detailed statement of how we compute values and benefits.
COMPLETE
SURRENDER: Your policy may be surrendered for its
Cash Surrender Value at any time while it is in force. You must
submit a written request on a form acceptable to us. We may also
require the return of your policy. The date of surrender will be the
date we receive your written request at our Home Office. The Cash
Surrender Value will be determined as of the end of the Valuation Period during
which your request is received. Payment of the Cash Surrender Value
may be deferred up to a period of six (6) months. All coverage will
end on the date of Complete Surrender.
The
Enhancement Benefit is not payable upon a Complete Surrender which qualifies
as
a Section 1035 Exchange.
PARTIAL
SURRENDER: A Partial Surrender may be made at any
time after the first policy year while this policy is in force. You
must submit a written request. We may also require that this policy
be sent to us. We reserve the right to limit the number of Partial
Surrenders in a policy year to one. Payment of Partial Surrenders may
be deferred up to a period of six (6) months.
When
a
Partial Surrender is made, we will reduce the Cash Value by the Partial
Surrender Amount. Unless the Partial Surrender is a Preferred Partial
Surrender, as defined below, we will also reduce the Specified Amount by the
amount necessary to prevent an increase in the Net Amount at
Risk. Any such decrease will reduce Specified Amount in the following
order:
1. against
the Specified Amount provided by the most recent increase;
2. against
the Specified Amount provided by other increases in succession; and
3. against
the Specified Amount under the original application.
A
Preferred Partial Surrender is a Partial Surrender that meets these
conditions:
1. it
occurs
before the 15th Policy Anniversary; and
2. its
amount, plus the amount of any prior preferred policy surrenders in the same
policy year,
does
not exceed 10% of the Cash
Surrender Value as of the beginning of the policy year.
Unless
you specify otherwise, we will allocate Partial Surrenders among the Variable
Subaccounts in proportion to the Cash Value in each Variable Subaccount as
of
the Partial Surrender date. Partial Surrenders will be transferred
from the Fixed Account only when insufficient amounts are available in the
Variable Subaccounts. The amount of any Partial Surrender is subject
to the following conditions:
1. the
minimum Partial Surrender is $500;
2. the
maximum amount of a Partial Surrender is the Cash Value, less any Indebtedness,
and less the greater
of
$500 or three Monthly Deductions;
and
3. a
Partial Surrender may not reduce the Specified Amount to less than the Minimum
Specified
Amount
shown on the Policy Data
Page.
In
addition, the Partial Surrender will be allowed only if after the surrender,
this policy continues to qualify as a contract for life insurance.
CONTINUATION
OF
INSURANCE: If the premium payments are not made,
insurance coverage under this policy and any benefits provided by Rider will
continue to apply as long as the Monthly Deductions from the Cash Value are
sustainable. If the Cash Value is insufficient, coverage will be
continued as provided in the Grace Period Provision. That provision
will not continue the policy beyond the Maturity Date nor continue any Rider
beyond the date for its termination, as provided in the Rider.
CASH
VALUE: The Cash Value of your policy is the sum of
the Cash Value in each Variable Subaccount, the Fixed Account, and the Policy
Loan Account. The Cash Value in each Variable Subaccount on the
Initial Investment Date is equal to the portion of the Net Premium allocated
to
the Variable Subaccount minus the Monthly Deduction for the months following
the
Policy Date.
The
Cash
Value in each Variable Subaccount on each subsequent Valuation Day is equal
to
(1) plus (2) plus (3) minus (4) minus (5) minus (6) where:
1. is
the
Cash Value in the Variable Subaccount on the preceding Valuation Day multiplied
by its net
investment
factor for the current
Valuation Period;
2. is
any
Net Premiums or other amounts allocated to the Variable Subaccount during the
current
Valuation
Period;
3. is
any
amounts transferred to the Variable Subaccount during the current Valuation
Period;
4. is
any
amounts transferred from the Variable Subaccount during the current Valuation
Period;
5. is
the
portion of any Monthly Deductions which are due and charged to the Variable
Subaccount
during
the current Valuation Period;
and
6. is
any
Partial Surrender Amounts allocated to the Variable Subaccount during the
current Valuation
Period.
The
Cash
Value in the Policy Loan Account is zero, unless you take a policy
loan. If you take a policy loan, then the Cash Value in the Policy
Loan Account on the loan date is equal to the amount of the loan plus any prior
balance in the Policy Loan Account, including interest thereon. The
loan amount is transferred from a Separate Account in proportion to the Cash
Value in each Variable Subaccount on the date of the loan. Loan
amounts will be transferred from the Fixed Account only when insufficient
amounts are available in the Variable Subaccounts.
The
Cash
Value in the Policy Loan Account on each subsequent Valuation Day is equal
to
(1) plus (2) plus (3) minus (4) minus (5) where:
1. is
the
Cash Value in the Policy Loan Account on the preceding Valuation
Day;
2. is
any
interest credited during the current Valuation Period;
3. is
any
amounts transferred to the Policy Loan Account because of additional policy
loans
and
any due and unpaid loan interest
during the current Valuation Period;
4. is
the
amount of any loan repayments you make during the current Valuation Period;
and\
|
|
5.
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is
any amount of interest transferred from the Policy Loan Account
to a
Separate Account or the Fixed Account during the current Valuation
Period.
|
The
Cash
Value in the Fixed Account is zero unless some or all of the Cash Value
is
allocated to the Fixed Account. The Cash Value in the Fixed Account
on the Initial Investment Date is equal to the portion of the Net Premium
allocated to the Fixed Account minus a pro-rata Monthly Deduction for the
month
following the Policy Date. The Cash Value in the Fixed Account on
each subsequent Valuation Day is equal to (1) plus (2) plus (3) minus (4)
minus
(5) minus (6) where:
1. is
the
Cash Value in the Fixed Account on the preceding Valuation Day;
2. is
any
interest credited during the current Valuation Period;
3. is
any
Net Premiums or other amounts allocated to the Fixed Account during the
current
Valuation
Period;
4. is
any
amounts transferred from the Fixed Account during the current Valuation
Period;
5. is
the
portion of any Monthly Deductions which are due and charged to the Fixed
Account
during
the current Valuation Period;
and
6. is
any
Partial Surrender Amounts allocated to the Fixed Account during the
current
Valuation
Period.
ENHANCEMENT
BENEFIT: This feature, if applicable, will result in an
increased Cash Surrender Value. It is a general obligation of the
Company, and is payable only if the qualifying event
occurs. The Company does not make any deposits to the Fixed
Account or the Separate Account as a result of the Enhancement
Benefit. There are no investment results associated with the
Enhancement Benefit.
The
Enhancement Benefit is payable only upon a Complete Surrender during the
term of
the Enhancement Benefit, provided the surrender proceeds are paid to the
Owner. It is not payable upon a Complete Surrender which qualifies as
a Section 1035 Exchange. The Enhancement Benefit is not available as
a policy loan or as a Partial Surrender.
POLICY CHARGES
The
types
of Policy Charges are described below and the guaranteed maximum Policy
Charges
are listed on the Policy Data Pages. The actual Policy Charges
established by the Company for this policy may be less than the guaranteed
maximum amounts. The Policy Charges may change in the future, but
will not exceed the guaranteed maximum amounts on the Policy Date.
The
Policy Charges reflect the costs and risks associated with your
policy. For mortality purposes, each insured life is assigned to an
underwriting class based on their age, gender (if not unisex classified),
smoker
status, type of evidence of insurability, and insurability
status. The characteristics of each Owner’s purchase will be
evaluated and classified. The Policy Charges will reflect the amount
and timing of expenses, the amount and timing of premium payments, as well
as
the expected asset persistency based on the purpose for which the corporation
is
purchasing the policy.
PERCENTAGE
OF PREMIUM CHARGE: A Percent of Premium Charge is
assessed against each premium payment. The guaranteed maximum percentage
of
premium charge is shown on the Policy Data Page. This charge
reimburses the Company for certain actual expenses, including acquisition
costs
and state and federal taxes. It also provides revenue for risk
charges and profit.
Each
increase in the Specified Amount will constitute new coverage, and Percent
of
Premium Charges attributable to the increased Specified Amount will be
determined in the same manner as for a newly issued policy. For this
purpose, premium payments will be allocated to each segment of increased
Specified Amount in proportion to the amount of that segment’s increase to the
total Specified Amount after all increases.
DEFERRED
PERCENTAGE OF PREMIUM CHARGE: A Deferred Percent of Premium Charge may
apply. It is a charge calculated as a percentage of the premium paid
in the first policy year. It is charged at the beginning of the
second policy year and subsequent policy years, up to and including the
fifth
policy year. This charge is assessed in addition to any other Percent
of Premium Charges that may occur in those years based on the premiums
paid in
those years. In particular, it is assessed regardless of whether any
premiums are paid in those years. This charge reimburses the Company
for certain actual expenses, including acquisition costs and state and
federal
taxes. It also provides revenue for risk charges and
profit.
MONTHLY
DEDUCTION: The Monthly Deduction for each month, beginning
on the Policy Date, shall be calculated as:
1. the
monthly Variable Subaccount Asset Charge; plus
2. the
Monthly Charge Per Policy; plus
3. the
monthly per $1,000 of Specified Amount charge, plus
4. the
monthly cost of any additional benefits provided by any Riders;
plus
5. the
Monthly Cost of Insurance.
The
Monthly Deductions other than the Variable Subaccount Asset Charge will
be
charged proportionately to the Cash Values in each Variable Subaccount
and the
Fixed Account, unless otherwise elected.
MONTHLY
VARIABLE SUBACCOUNT ASSET CHARGE: This charge will be deducted from the
assets of the Separate Account attributable to the policy on a monthly
basis in
advance on the first business day of each policy month. It is equal
to the net assets of the Separate Account attributable to the policy, multiplied
by [(1 + current Daily Asset Charge Percentage) raised to the exponent
R] minus
1, where R = (number of days in the current policy month divided by the
number
of days in the current policy year). This charge reimburses the Company
for
certain actual expenses, including acquisition costs and state and federal
taxes. It also provides revenue for risk charges and
profit.
MONTHLY
CHARGE PER POLICY: The Company deducts a monthly administrative expense
charge. This charge is a dollar amount per policy. This charge
reimburses the Company for certain actual expenses related to maintenance
of the
policies including accounting and record keeping, and periodic reporting
to
policy owners. The Company does not expect to recover any amount in
excess of aggregate maintenance expenses from this charge. The
maximum guaranteed Monthly Charge Per Policy is shown on the Policy Data
Pages.
MONTHLY
PER $1,000 OF SPECIFIED AMOUNT CHARGE: The Company deducts a monthly
charge based on the Specified Amount. This charge reimburses the Company
for
certain actual expenses, including acquisition costs and state and federal
taxes. It also provides revenue for risk charges and
profit. This charge will not exceed the guarantees set forth in
the Policy Data Pages.
MONTHLY
COST OF INSURANCE: A deduction will be made on the Policy
Date and each Monthly Anniversary Day for the Monthly Cost of
Insurance. The Monthly Cost of Insurance for each policy month is
determined by multiplying the Monthly Cost of Insurance Rate by the Net
Amount
at Risk. The Monthly Cost of Insurance Rate is described in the Monthly
Cost of
Insurance Rates section below.
If
there
have been increases in the Specified Amount, then the Cash Value shall
be first
considered a part of the initial Specified Amount. If the Cash Value
exceeds the initial Specified Amount, it shall then be considered a part
of the
increases in Specified Amount in the order of the increases.
The
Monthly Cost of Insurance Charge reimburses the Company for expected mortality
benefits and certain actual expenses, including acquisition costs and state
and
federal taxes, and provides revenue for risk charges and profit.
MONTHLY
COST OF INSURANCE RATES: A separate Monthly Cost of
Insurance Rate is used to obtain the Monthly Cost of Insurance for the
Insured's
initial Specified Amount and each increase in Specified Amount. Each
rate is based on the Insured's Issue Age, policy duration, gender (if not
unisex
classified), smoking class, underwriting class, and any substandard rating
at
the time the initial Specified Amount or increase took effect and on the
duration since that time.
These
rates will never be greater than the guaranteed maximum Monthly Cost of
Insurance Rates shown on the Policy Data Page. The basis for the
guaranteed maximum Monthly Cost of Insurance Rates is shown in the Basis
of
Computation on the Policy Data Page.
INTEREST
CREDITING: Any Cash Value allocated to the Policy Loan Account will be
credited interest daily. The guaranteed minimum annual effective rate
is shown on the Policy Data Page. Interest in excess of the minimum
guaranteed rate may be credited.
Any
Cash
Value allocated to the Fixed Account will be credited interest
daily. The guaranteed minimum annual effective rate for the Fixed
Account is shown on the Policy Data Page. Interest in excess of the
minimum guaranteed rate may be credited. Where required, we have
filed our method for determining current interest rates with the Insurance
Department of the state in which this policy was delivered.
LOAN
PROVISIONS
POLICY
LOAN: You may request a loan at any time while your policy
is in force. The loan must be requested in writing on a form
acceptable to us. The sum of the loan and the Policy Loan Account
prior to the loan may not exceed 90% of the Cash Value as of the loan
date. The loan date is the date we process the
loan. The minimum loan amount is $500. The
loan will be made upon the sole security of the policy. Payment of
policy loans may be deferred up to a period of six (6) months.
LOAN
INTEREST: The Guaranteed Maximum Policy Loan Interest Rate
is shown on the Policy Data Page. Interest is charged daily and
payable at the earliest of: (i) the end of each policy year, (ii) the date
of
loan repayment, or (iii) concurrently with the execution of an additional
loan. Unpaid interest will be added to the existing Indebtedness as
of the due date and will be charged interest at the same rate as the rest
of the
loan. Interest at a rate less than the maximum guaranteed rate may be
charged.
LOAN
REPAYMENT: All or part of a loan may be repaid to us at any
time while your policy is in force during the Insured's lifetime. The
minimum repayment is $50. Any payment intended as a loan repayment,
rather than a premium payment, must be identified as such. Any
Indebtedness that exists at the end of the Grace Period may not be repaid
unless
this policy is reinstated.
EFFECT
OF LOAN: When you take a loan, we will transfer an amount
equal to the policy loan from a Separate Account or the Fixed Account to
the
Policy Loan Account. Any loan interest that becomes due and unpaid
will also be so transferred. Amounts transferred to the Policy Loan
Account will earn interest daily from the date of transfer. When you repay
part
or all of a loan, we will transfer an amount equal to the amount you repay
from
the Policy Loan Account to a Variable Subaccount or the Fixed
Account. We reserve the right to require that any loan repayments
resulting from loans transferred from the Fixed Account must be allocated
to the
Fixed Account.
Unless
you specify otherwise, we will allocate loans among the Variable Subaccounts
in
proportion to the Cash Value in each Variable Subaccount as of the loan
date. Loan Amounts will be transferred from the Fixed Account only
when insufficient amounts are available in the Variable
Subaccounts. Any loan interest which becomes due and is unpaid will
be transferred to the Policy Loan Account in proportion to the Cash Values
in
each Variable Subaccount and the Fixed Account. Unless specified,
loan repayments will be allocated among the Variable Subaccounts using
the Fund
allocation factors in effect on the date of the repayment subject to any
other
restrictions the Company may impose.
Since
the
amount you borrow is removed from a Variable Subaccount or the Fixed Account,
a
loan will have a permanent effect on any Death Proceeds and Cash Surrender
Value
of this policy. The effect may be favorable or
unfavorable. This is true whether you repay the loan or
not. If not repaid, Indebtedness will reduce the amount of any Death
Proceeds or Maturity Proceeds. If the total Indebtedness ever equals
or exceeds the Cash Value, your policy will terminate without value, as
described in the Grace Period Provision.
EXCHANGE
OF POLICY PROVISIONS
RIGHT
OF EXCHANGE: During the first 24 months from the Policy
Date, you have an unconditional right to move all of the Cash Value in
the
Separate Account to the Fixed Account. Once all of the Cash Value is
in the Fixed Account, the policy will not be affected by the investment
experience of any Separate Account.
EXCHANGE
AT OTHER TIMES: After 24 months from the Policy Date, you
may exchange this policy for a new policy, subject to our
approval. You must furnish any evidence of insurability we require
and pay all costs associated with the exchange.
VALUATION
OF ASSETS IN A SEPARATE ACCOUNT
DETERMINING
INVESTMENT RESULTS: The Cash Value will change with a change
in the investment results of the Variable Subaccounts. An index
called an accumulation unit value measures changes in a Variable
Subaccount's investment experience. Each Variable
Subaccount has its own accumulation unit value.
For
each
Variable Subaccount, the initial accumulation unit value is typically initially
set at $10.00. The accumulation unit value for a Variable Subaccount
in each subsequent Valuation Period is equal to (1), multiplied by (2),
where:
1. is
the
Variable Subaccount's accumulation unit value for the preceding Valuation
Period; and
2. is
the
Variable Subaccount's net investment factor for the subsequent Valuation
Period.
A
net
investment factor is defined below.
Because
the net investment factor may be greater than or less than one, the accumulation
unit value may increase or decrease from one Valuation Period to the next;
however, the accumulation unit value remains constant throughout a Valuation
Period.
NET
INVESTMENT FACTOR: The net investment factor for a Variable
Subaccount for a Valuation Period is obtained by dividing (1) by (2),
where:
1. is
the
net of:
(a) the
net asset value per share of the Fund held in the Variable Subaccount at
the end
of the
current
Valuation Period;
plus
(b) the
per share amount of any dividend and capital gains distributions made by
the
Fund
held in the Variable Subaccount if
the "ex-dividend" date occurs during the current
Valuation
Period; plus or
minus
(c) a
per share charge or credit for taxes reserved for, if any, which is determined
by the
Company
to have resulted from the
investment operations of the Variable Subaccount.
2. is
the
net of:
(a) the
net asset value per share of the Fund held in the Variable Subaccount determined
as of
the
end of the immediately preceding
Valuation Period; plus or minus
(b) the
per share charge or credit for taxes reserved for in the
immediately
preceding
Valuation
Period.
SEPARATE
ACCOUNT PROVISIONS
SEPARATE
ACCOUNT: A Separate Account is a separate investment account
of the Company. A Separate Account is subject to the laws of
Ohio. You will direct your Net Premiums to be invested in either a
Separate Account or the Fixed Account.
We
own
the assets of any Separate Account; we keep them separate from the assets
of our
General Account. We maintain assets which are at least equal to the
reserves and other liabilities of a Separate Account. Such assets
will not be charged with liabilities that arise from any other business
we
conduct. We may transfer to our General Account assets which exceed
the reserves and other liabilities of a Separate Account.
We
will
determine the value of the assets in a Separate Account at the end of each
Valuation Day.
VARIABLE
SUBACCOUNTS: The Separate Account may have several Variable
Subaccounts. We list them on the Policy Data Page. You
determine, using Fund allocation factors, how Net Premiums will be allocated
among the Variable Subaccounts. You may choose to allocate nothing to
a particular Variable Subaccount. The sum of the Fund allocation
factors must equal 100%.
In
states
that require a full refund of premiums during the Right to Examine Policy
period, Net Premiums will be allocated to a Variable Subaccount that invests
in
a money market Fund or to the Fixed Account. The day following the
end of this period, the Cash Value in that Variable Subaccount will be
transferred to the Variable Subaccounts according to your chosen Fund allocation
factors. Also, any subsequent Net Premiums will be allocated
according to your chosen factors. Fund allocation factors during and
immediately after the Right to Examine Policy period, are shown on the
Policy
Data Page. After the Right to Examine Policy period has expired, you
may transfer amounts among the Variable Subaccounts. Transfers will
take effect on the date your written request is received at our Home Office,
subject to any restrictions imposed by a Fund.
You
may
change the allocation for future Net Premiums at any time while your policy
is
in force. To do so, you must notify us in writing in a form that
meets our approval. The change will take effect on the date we
receive your written request at our Home Office.
Income
and realized and unrealized gains and losses from assets in each Variable
Subaccount are credited to, or charged against, the Variable
Subaccount. This is without regard to income, gains, or losses in our
other Variable Subaccounts, separate investment accounts, or our General
Account.
RIGHT
TO TRANSFER: Transfers may be made via any method deemed
acceptable by us. We reserve the right to refuse, limit, or otherwise
restrict any transfer request, or take any other reasonable action we deem
necessary with respect to transfers among specified Sub-accounts in order
to
protect Policy Owners and Beneficiaries from negative investment results
that
may arise from harmful investment practices employed by certain Owners
or their
representative. Our failure to exercise our rights under this section
shall not be construed as a waiver of our rights.
CHANGES
OF VARIABLE SUBACCOUNTS: A
Variable Subaccount might, in our judgment, become unsuitable for investment
by
a Separate Account. This might happen because of a change in
investment policy, a change in the laws or regulations, the shares are
no longer
available for investment, or for some other reason. If that occurs,
we have the right to substitute another Variable Subaccount. But we
would first notify you and seek approval from the SEC and the Superintendent
of
Insurance of the State of Ohio. We would also get any other required
approvals.
OTHER
CHANGES: To the extent permitted by applicable laws and
regulations (including any order of the SEC), we may make changes as
follows:
1. A
Separate Account may be operated as an investment company under the
Investment
Company
Act of 1940, or in any other
form permitted by law, if we deem it to be in the best
interest
of the policy
Owners.
2. A
Separate Account may be deregistered under the Investment Company Act of
1940
in
the
event registration is no longer
required.
3. A
Separate Account may be combined with other separate investment
accounts.
4. The
provisions of this and other policies may be modified to comply with any
other
applicable
federal or state
laws.
In
the
event of such changes, we may make appropriate endorsement on this and
other
policies having an interest in a Separate Account and take other actions
as may
be necessary to effect such a change.
FIXED
ACCOUNT PROVISIONS
FIXED
ACCOUNT: The Fixed Account is part of the General Account of
the Company. The Fixed Account is credited with interest as described
under the Nonforfeiture Provisions. In addition to allocating your
Net Premiums to one or more of the Variable Subaccounts described above,
you may
direct part of your Net Premiums into the Fixed Account. Except as
outlined in the Exchange of Policy Provisions, we reserve the right to
limit the
allocations to the Fixed Account to no more than 25% of the Cash
Value.
RIGHT
TO TRANSFER: You may transfer amounts between the Fixed
Account and the Variable Subaccounts, subject to the limits below, without
penalty or adjustment. We reserve the right to limit you to one
transfer from the Fixed Account to the Variable Subaccounts during any
ninety
(90) day period.
We
reserve the right to limit the amount transferred from the Fixed Account
to the
Variable Subaccounts during a policy year to the greater of (a) 15% of
that
portion of the Cash Value attributable to the Fixed Account at the end
of the
prior policy year and (b) 120% of the amount transferred from the Fixed
Account
during the preceding policy year.
Except
as
outlined in Exchange of Policy Provisions, we reserve the right to refuse
transfers to the Fixed Account if the Fixed Account is greater than or
equal to
25% of the Cash Value.
OPTIONAL
MODE OF SETTLEMENT PROVISION
Proceeds
are usually paid in a lump sum. Alternatively, you may elect to leave
the proceeds on deposit with us in an interest-bearing account. You
may not assign your account.
We
will
credit interest at a rate that we will declare quarterly. You
may withdraw some or all of the deposit at any time. Requests for
withdrawal must be in writing.
NATIONWIDE
LIFE INSURANCE COMPANY
ENDORSEMENTS
(Endorsements may be made only by the Company at the Home
Office)
CORPORATE
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE
·
Adjustable Death
Benefit · Flexible
premiums
payable during Insured's lifetime until the Maturity Date
·
Death Proceeds
payable at Insured's death prior to the Maturity Date
·
Maturity Proceeds
payable on the Maturity Date
·
Not eligible for
dividends · Investment
experience reflected in benefits
Nationwide
Life Insurance Company
Home
Office: One Nationwide Plaza · Columbus,
Ohio 43215-2220