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Aetna Life Insurance and Annuity Company
Home Office: ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇
Aetna Life Insurance and Annuity Company, herein
called Aetna, agrees to pay the benefits stated in
this Contract.
Specifications
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Plan
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Type of Plan
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Contract Holder
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Annuitant
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Contract No.
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Effective Date
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This Contract is Delivered in and is Subject to
the Laws of that Jurisdiction
THE VARIABLE FEATURES OF THE CONTRACT ARE DESCRIBED IN PARTS III AND IV.
Right to Cancel
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The Contract Holder may cancel this Contract within 10 days of receiving it by
returning this Contract along with a written notice to Aetna at the above
address or to the agent from whom it was purchased. Within 7 days after it
receives the notice of cancellation and this Contract at its Home Office, Aetna
will return the entire consideration paid plus any increase or minus any
decrease in the current value of any funds allocated to the Separate Account.
This page, the following pages, and the application make up the entire Contract.
Signed at the Home Office on the Effective Date.
/s/ ▇▇▇ ▇▇▇▇▇▇▇ /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
President Secretary
Individual Variable, Fixed, or Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA.
APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN INCREASE OR
DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT
APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
I-CDA-IC (NQ/MP)
Specifications
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Guaranteed Interest Rate There is a guaranteed interest rate for Purchase
Payment(s) held in the AG Account. (See Contract
Schedule I).
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Deductions from the There will be deductions for mortality and expense
Separate Account risks and administrative fees. (See Contract
Schedules I and II).
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Deduction from Purchase Payment(s) are subject to a deduction for
Purchase premium taxes, if any. (See 3.01.)
Payment(s)
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Surrender Fee A charge is deducted upon surrender.
(See Contract Schedule I).
This Contract is a legal contract and constitutes the entire legal relationship
between Aetna and the Contract Holder.
READ THIS CONTRACT CAREFULLY. This Contract sets forth, in detail, all of the
rights and obligations of both you and Aetna. IT IS THEREFORE IMPORTANT THAT YOU
READ THIS CONTRACT CAREFULLY.
2
Contract Schedule I
Accumulation Period
Separate Account
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Separate Account: Variable Annuity Account B
Charges to A daily charge is deducted from any portion of the
Separate Account: Current Value allocated to the Separate Account. The
deduction is the daily equivalent of the annual
effective percentage shown in the following chart:
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
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Total Separate Account
Charges 1.40%
ALIAC Guaranteed Account (AG Account)
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Minimum Guaranteed Interest Rate (effective annual
rate of return): 3.0%.
Separate Account and AG Account
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Transfers: An unlimited number of Transfers may be made during
the Accumulation Period. Aetna allows 12 free
Transfers in any calendar year. Thereafter, Aetna
reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee: The annual Maintenance Fee is $30. If the Current
Value is $50,000 or more on the date the Maintenance
Fee is to be deducted, the Maintenance Fee is $0.
3
Contract Schedule I (Continued)
Accumulation Period
Separate Account and AG Account
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Surrender Fee: For each surrender, the Surrender Fee for each Net
Purchase Payment will be determined as follows:
Surrender Fee
Length of Time from Deposit of (as percentage of
Net Purchase Payment (Years) Net Purchase Payment)
Less than 2 years 7%
2 or more but less than 4 years 6%
4 or more but less than 5 years 5%
5 or more but less than 6 years 4%
6 or more but less than 7 years 3%
7 years or more 0%
Systematic Withdrawal The specified payment or specified percentage may not
Option (SWO): be greater than 10% of the Current Value at time of
election.
See 1. GENERAL DEFINITIONS for explanations.
4
Contract Schedule II
Annuity Period
Separate Account
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Charges to Separate A daily charge at an annual effective rate of 1.25%
Account: for Annuity mortality and expense risks. The
administrative charge is established upon election of
an Annuity option. This charge will not exceed 0.25%.
Variable Annuity Assumed If a Variable Annuity is chosen, an assumed annual
Annual Net Return Rate: net return rate of 5.0% may be elected. If 5.0% is
not elected, Aetna will use an assumed annual net
return rate of 3.5%.
The assumed annual net return rate factor for 3.5%
per year is 0.9999058.
The assumed annual net return rate factor for 5.0%
per year is 0.9998663.
If the portion of a Variable Annuity payment for any
Fund is not to decrease, the Annuity return factor
under the Separate Account for that Fund must be:
(a) 4.75% on an annual basis plus an annual return of
up to 0.25% to offset the administrative charge
set at the time Annuity payments commence if an
assumed annual net return rate of 3.5% is chosen;
or
(b) 6.25% on an annual basis plus an annual return of
up to 0.25% to offset the administrative charge
set at the time Annuity payments commence, if an
assumed annual net return rate of 5% is chosen.
Fixed Annuity
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Minimum Guaranteed Interest Rate (effective annual
rate of return): 3.0%
See 1. GENERAL DEFINITIONS for explanations.
5
TABLE OF CONTENTS
I-CDA-IC(NQ/MP)
I. GENERAL DEFINITIONS
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Page
1.01 Accumulation Period..............................................8
1.02 Adjusted Current Value...........................................8
1.03 Annuitant........................................................8
1.04 Annuity..........................................................8
1.05 Beneficiary......................................................8
1.06 Code.............................................................8
1.07 Contract.........................................................8
1.08 Contract Holder..................................................8
1.09 Current Value....................................................8
1.10 Deposit Period...................................................8
1.11 Fixed Annuity....................................................8
1.12 Fund(s)..........................................................9
1.13 General Account..................................................9
1.14 Guaranteed Rate -- AG Account....................................9
1.15 Guaranteed Term..................................................9
1.16 Guaranteed Term(s) Groups........................................9
1.17 Maintenance Fee..................................................9
1.18 ALIAC Guaranteed Account (AG Account)...........................10
1.19 Market Value Adjustment (MVA)...................................10
1.20 Matured Term Value..............................................10
1.21 Matured Term Value Transfer.....................................10
1.22 Maturity Date...................................................10
1.23 Net Purchase Payment(s).........................................10
1.24 Nonunitized Separate Account....................................10
1.25 Purchase Payment(s).............................................10
1.26 Reinvestment....................................................11
1.27 Separate Account................................................11
1.28 Surrender Value.................................................11
1.29 Transfers.......................................................11
1.30 Valuation Period (Period).......................................11
1.31 Variable Annuity................................................11
II. GENERAL PROVISIONS
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2.01 Change of Contract..............................................12
2.02 Change of Fund(s)...............................................13
2.03 Nonparticipating Contract.......................................13
2.04 Payments and Elections..........................................13
6
Page
2.05 State Laws......................................................13
2.06 Control of Contract.............................................13
2.07 Designation of Beneficiary......................................14
2.08 Misstatements and Adjustments...................................14
2.09 Incontestability................................................14
2.10 Grace Period....................................................14
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
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3.01 Net Purchase Payment............................................14
3.02 Fund(s) Record Units - Separate Account.........................15
3.03 Net Return Factor(s) - Separate Account.........................15
3.04 Fund Record Unit Value - Separate Account......................16
3.05 Market Value Adjustment........................................16
3.06 Transfer of Current Value from the Funds or AG Account..........17
3.07 Notice to the Contract Holder...................................18
3.08 Loans...........................................................18
3.09 Systematic Withdrawal Option (SWO)..............................18
3.10 Death Benefit Amount............................................20
3.11 Death Benefit Options...........................................21
3.12 Liquidation of Surrender Value..................................22
3.13 Surrender Fee...................................................23
3.14 Payment of Surrender Value......................................24
3.15 Reinstatement...................................................24
3.16 Payment of Adjusted Current Value...............................24
IV. ANNUITY PROVISIONS
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4.01 Choices to be Made..............................................25
4.02 Terms of Annuity Options........................................25
4.03 Death of Annuitant/Beneficiary..................................26
4.04 Fund(s) Annuity Units -- Separate Account.......................28
4.05 Fund Annuity Unit Value -- Separate Account.....................28
4.06 Annuity Net Return Factor(s) -- Separate Account................28
4.07 Annuity Options.................................................29
7
I. GENERAL DEFINITIONS
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1.01 Accumulation The period during which the Net Purchase Payment(s)
Period: are applied to a Contract to provide future Annuity
payment(s).
1.02 Adjusted The Current Value of a Contract plus or minus any
Current Value aggregate AG Account MVA, if applicable. (See 1.19)
1.03 Annuitant: The person whose life is measured for purposes of the
Guaranteed Death Benefit and the duration of Annuity
payments under this Contract.
1.04 Annuity: Payment of an income:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.05 Beneficiary: The individual or estate entitled to receive any
payment from the Contract upon the death of the
Annuitant.
1.06 Code: The Internal Revenue Code of 1986, as it may be
amended from time to time.
1.07 Contract: This agreement between Aetna and the Contract Holder.
1.08 Contract Holder: A person who purchases this
Contract. A Contract Holder cannot be a nonnatural
person (i.e. a trustee for a trust, an executor or
administrator for an estate, or an incorporated or
unincorporated business). The Contract Holder has all
right, title and interest under the Contract.
1.09 Current Value: As of the most recent Valuation Period, the Net
Purchase Payment and any additional amount deposited
pursuant to 3.10 plus any interest added to the
portion allocated to the AG Account; and plus or
minus the investment experience of the portion
allocated to the Funds since deposit; less all
Maintenance Fees deducted, any amounts surrendered
and any amounts applied to an Annuity.
1.10 Deposit Period: A calendar week, a calendar month, a
calendar quarter, or any other period of time
specified by Aetna during which Net Purchase
Payment(s), Transfers and Reinvestments are accepted
into the AG Account for one or more Guaranteed Terms.
Aetna reserves the right to extend the Deposit
Period.
1.11 Fixed Annuity: An Annuity with payments that do not vary in amount.
8
1.12 Fund(s): The open-end management investment companies
(mutual funds) in which the Separate Account invests.
1.13 General Account: The Account holding the assets of Aetna, other than
those assets held in Aetna's separate accounts.
1.14 Guaranteed Rate -- Aetna will declare the interest rate(s) applicable to
AG Account: a specific Guaranteed Term at the start of the
Deposit Period for that Guaranteed Term. The rate(s)
are guaranteed by Aetna for that Deposit Period and
the ensuing Guaranteed Term. The Guaranteed Rates are
annual effective yields. That is, interest is
credited daily at a rate that will produce the
Guaranteed Rate over the period of a year. No
Guaranteed Rate will ever be less than the Minimum
Guaranteed Rate shown on Contract Schedule I.
For Guaranteed Terms of one year or less, one
Guaranteed Rate is credited for the full Guaranteed
Term. For longer Guaranteed Terms, an initial
Guaranteed Rate is credited from the date of deposit
to the end of a specified period within the
Guaranteed Term. There may be different Guaranteed
Rate(s) declared for subsequent specified time
intervals throughout the Guaranteed Term.
1.15 Guaranteed Term: The period of time for which AG Account Guaranteed
Rates are guaranteed on Net Purchase Payments,
Transfers and Reinvestments made into a current
Deposit Period for the AG Account. Such period begins
on the day following the close of the Deposit Period
and ends on the designated Maturity Date. Guaranteed
Terms are offered at Aetna's discretion for various
lengths of time ranging up to and including ten
years.
During a Deposit Period, Aetna may make available any
number of Guaranteed Terms. The Contract Holder may
allocate Net Purchase Payments and Transfers into any
or all of the available Guaranteed Terms.
1.16 Guaranteed Term(s) All AG Account Guaranteed Term(s) with the same
Groups: length of time from the close of the Deposit Period
until the designated Maturity Date.
1.17 Maintenance Fee: The Maintenance Fee (see Contract Schedule I) will be
deducted during the Accumulation Period from the
Current Value on each anniversary of the date the
Contract is established and upon surrender of the
entire Contract.
9
1.18 ALIAC Guaranteed An accumulation option where Aetna guarantees
Account (AG Account): stipulated rate(s) of interest for specified periods
of time. All assets of Aetna, including amounts in
the Nonunitized Separate Account, are available to
meet the guarantees under the AG Account.
1.19 Market Value An adjustment to the amount withdrawn or transferred
Adjustment from an AG Account Guaranteed Term prior to the end
(MVA): of that Guaranteed Term. The adjustment reflects the
change in the value of the investment due to changes
in interest rates since the date of deposit and is
computed using the formula given in 3.05. The
adjustment is expressed as a percentage of each
dollar being withdrawn.
1.20 Matured Term Value: The amount due on an AG Account Guaranteed Term's
Maturity Date.
1.21 Matured Term During the calendar month following an AG Account
Value Transfer: Maturity Date, the Contract Holder may notify Aetna's
Home Office in writing to Transfer or surrender all
or part of the Matured Term Value, plus interest at
the new Guaranteed Rate accrued thereon, from the AG
Account without an MVA. This provision only applies
to the first such written request received from the
Contract Holder during this period for any Matured
Term Value.
1.22 Maturity Date: The last day of an AG Account Guaranteed Term.
1.23 Net Purchase The Purchase Payment less premium taxes, if
Payment(s): applicable.
1.24 Nonunitized A separate account set up by Aetna under Title 38,
Separate Section 38a-433, of the Connecticut General Statutes,
Account: that holds assets for AG Account Terms. There are no
discrete units for this Account. The Contract Holder
does not participate in the investment gain or loss
from the assets held in the Nonunitized Separate
Account. Such gain or loss is borne entirely by
Aetna. These assets may be chargeable with
liabilities arising out of any other business of
Aetna.
1.25 Purchase Payment(s): Payment(s) accepted by Aetna at its Home Office.
Aetna reserves the right to refuse to accept any
Purchase Payment at any time for any reason. No
advance notice will be given to the Contract Holder.
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1.26 Reinvestment: Aetna will mail a notice to the Contract Holder at
least 18 calendar days before a Guaranteed Term's
Maturity Date. This notice will contain the Terms
available during current Deposit Periods with their
Guaranteed Rate(s), and projected Matured Term Value.
If no specific direction is given by the Contract
Holder prior to the Maturity Date, each Matured Term
Value will be reinvested in the current Deposit
Period for a Guaranteed Term of the same duration. If
a Guaranteed Term of the same duration is
unavailable, each Matured Term Value will
automatically be reinvested in the current Deposit
Period for the next shortest Guaranteed Term
available. If no shorter Guaranteed Term is
available, the next longer Guaranteed Term will be
used. Aetna will mail a confirmation statement to the
Contract Holder the next business day after the
Maturity Date. This notice will state the Guaranteed
Term and Guaranteed Rate(s) which will apply to the
reinvested Matured Term Value.
1.27 Separate Account: A separate account that buys and holds shares of the
Fund(s). Income, gains or losses, realized or
unrealized, are credited or charged to the Separate
Account without regard to other income, gains or
losses of Aetna. Aetna owns the assets held in the
Separate Account and is not a trustee as to such
amounts. This Separate Account generally is not
guaranteed and is held at market value. The assets of
the Separate Account, to the extent of reserves and
other contract liabilities of the Account, shall not
be charged with other Aetna liabilities.
1.28 Surrender Value: The amount payable by Aetna upon the surrender of any
portion of the Contract.
1.29 Transfers: The movement of invested amounts among the available
Fund(s) and the AG Account under this Contract during
the Accumulation Period.
1.30 Valuation Period The period of time for which a Fund determines its
(Period): net asset value, usually from 4:15 p.m. Eastern time
each day the New York Stock Exchange is open until
4:15 p.m. the next such day, or such other day that
one or more of the Funds determines its net asset
value.
1.31 Variable Annuity: An Annuity with payments that vary with the net
investment results of one or more Funds held under
the Separate Account.
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II. GENERAL PROVISIONS
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2.01 Change of Contract: Only an authorized officer of Aetna may change the
terms of this Contract. Aetna will notify the
Contract Holder in writing at least 30 days before
the effective date of any change. Any change will not
affect the amount or terms of any Annuity which
begins before the change.
Aetna reserves the right to refuse to accept any
Purchase Payment at any time for any reason. This
applies to subsequent Purchase Payments under the
Contract. No advance notice will be given to the
Contract Holder.
Aetna may make any change that affects the AG Account
Market Value Adjustment (3.05) with at least 30 days'
advance written notice to the Contract Holder. Any
such change shall become effective for any new Term.
Aetna reserves the right to change the terms of the
Systematic Withdrawal Option (3.09) for future
elections and discontinue the availability of this
option after proper notification.
The following will not be changed:
(a) Net Purchase Payment (1.23)
(b) AG Account Guaranteed Rate (1.14)
(c) Net Return Factor(s) -- Separate Account (3.03)
(d) Current Value (1.09)
(e) Surrender Value (1.28)
(f) Fund(s) Annuity Unit Value -- Separate Account
(4.05)
(g) Annuity options (4.07)
(h) Fixed Annuity Interest Rates (4.01)
(i) Transfers (1.29).
Any change that affects the Annuity Options and the
tables for the Options may be made:
(a) No earlier than 12 months after the effective
date of this Contract; and
(b) No earlier than 12 months after the effective
date of any prior change.
This Contract may be changed as deemed necessary by
Aetna to comply with federal or state law.
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2.02 Change of Fund(s): Aetna, or the Separate Account, may:
(a) Change the Fund(s) which may be invested in by
the Separate Account; and
(b) Replace the shares of any Fund(s) held in the
Separate Account with shares of any other
Fund(s).
Changes must be:
(a) Approved by a majority vote in the Separate
Account with respect to the Fund(s) whose shares
are to be replaced; or
(b) Deemed necessary by Aetna under the Investment
Company Act of 1940; or
(c) Deemed necessary by Aetna to accomplish the
purpose of the Separate Account.
Aetna will notify the Contract Holder of any change.
2.03 Nonparticipating The Contract Holder or Beneficiaries will not have a
Contract: right to share in the earnings of Aetna.
2.04 Payments and While the Contract Holder is living, Aetna will pay
Elections: the Contract Holder any Annuity payments as and when
due. After the Contract Holder's death, any Annuity
payments required to be made will be paid in
accordance with 4.03. Aetna will determine other
payments and/or elections as of the end of the
Valuation Period in which the request is received at
its Home Office. Such payments will be made within 7
calendar days of receipt at its Home Office of a
written claim for payment which is in good order,
except as provided in 3.14.
2.05 State Laws: The Contract complies with the laws of the state in
which it is delivered. Any surrender, death, or
Annuity payments are equal to or greater than the
minimum required by such laws. Annuity tables for
legal reserve valuation shall be as required by state
law. Such tables may be different from Annuity tables
used to determine Annuity payments.
2.06 Control of Contract: This is a Contract between the Contract Holder and
Aetna. The Contract Holder has all rights, title and
interest for amounts held in the Contract. Choices
made under this Contract must be in writing. Until
receipt of such choices at Aetna's Home Office, Aetna
may rely on any previous choices made.
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2.06 Control of Contract The Contract is not subject to the claims of any
(Cont'd): creditors of the Contract Holder, except to the
extent permitted by law. The Contract Holder may
assign or transfer his or her rights under the
Contract to one or more natural persons. Any
assignment or transfer made under the Contract must
be submitted to Aetna's Home Office in writing and
will not be effective until accepted by Aetna.
2.07 Designation of Each Contract Holder shall name his or her
Beneficiary: Beneficiary. The Beneficiary may be changed at any
time. Changes to a Beneficiary must be submitted to
Aetna's Home Office in writing and will not be
effective until accepted by Aetna.
2.08 Misstatements and If Aetna finds the age of any Annuitant to be
Adjustments: misstated, the correct facts will be used to adjust
payments.
2.09 Incontestability: Aetna cannot cancel this Contract because of any
error of fact on the application.
2.10 Grace Period: This Contract will remain in effect even if Purchase
Payments are not continued except as provided in the
Payment of Adjusted Current Value provision (see
3.16).
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
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3.01 Net Purchase This amount is the actual Purchase Payment less any
Payment: premium tax. Aetna will generally deduct the premium
tax when Annuity benefits are elected (see Part IV).
If Aetna determines that under applicable state law,
it must pay a premium tax when the Purchase Payment
is received or at any other time, it will deduct the
tax at that time.
The Net Purchase Payment will be credited among:
(a) The current Deposit Period(s) for Guaranteed
Terms under the AG Account; and
(b) The Fund(s) in which the Separate Account
invests.
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3.01 Net Purchase For each Net Purchase Payment, the Contract Holder
Payment (Cont'd): shall tell Aetna the allocation percentage to be
applied to the current Deposit Period for each of the
available Guaranteed Terms in the AG Account and/or
each Fund. If allocation instructions are not
received along with any subsequent Net Purchase
Payment, the allocation will be the same as that
indicated on the original application. If the same
Guaranteed Term is no longer available, the Net
Purchase Payment will be allocated to the next
shortest Guaranteed Term available in the current
Deposit Period. If no shorter Guaranteed Term is
available, the next longer Guaranteed Term will be
used.
Aetna will declare from time to time the
acceptability and the minimum amount for additional
Purchase Payments.
3.02 Fund(s) Record The portion of the Net Purchase Payment(s) applied to
Units -- Separate each Fund under the Separate Account will determine
Account: the number of Fund record units for that Fund. This
number is equal to the portion of the Net Purchase
Payment(s) applied to each Fund divided by the Fund
record unit value (see 3.04) for the Valuation Period
in which the Purchase Payment is received in good
order at Aetna's Home Office.
3.03 Net Return The net return factor(s) are used to compute all
Factor(s) -- Separate Account record units for any Fund.
Separate Account:
The net return factor for each Fund is equal to
1.0000000 plus the net return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by the
Separate Account at the end of the Valuation
Period; minus
(b) The value of the shares of the Fund held by the
Separate Account at the start of the Valuation
Period; plus or minus
(c) Taxes (or reserves for taxes) on the Separate
Account (if any); divided by
(d) The total value of the Fund record units and Fund
Annuity units of the Separate Account at the
start of the Valuation Period; minus
(e) A daily Separate Account charge at an annual rate
as shown on Contract Schedule I for mortality and
expense risks, which may include profit; and a
daily administrative charge.
A net return rate may be more or less than 0%. The
value of a share of the Fund is equal to the net
assets of the Fund divided by the number of shares
outstanding.
15
3.04 Fund Record Unit A Fund record unit value is computed by multiplying
Value - Separate the net return factors for the current Valuation
Account: Period by the Fund record unit value for the previous
Period. The dollar value of Fund record units,
Separate Account assets, and Variable Annuity
payments may go up or down due to investment gain or
loss.
3.05 Market Value There will be an MVA for a withdrawal from the AG
Adjustment: Account before the end of a Guaranteed Term when the
withdrawal is due to:
(a) A Transfer; except as specified in AG Account
Matured Term Value Transfer;
(b) A full or partial surrender, including a 10% free
withdrawal under 3.13; or
(c) An election of Annuity option 2 (see 4.07).
Full and partial surrenders and Transfers made within
six months after the date of the Annuitant's death
will be the greater of:
(a) The aggregate MVA amount which is the sum of all
market value adjusted amounts calculated due to a
withdrawal of amounts. This total may be greater
or less than the Current Value of those amounts;
or
(b) The applicable portion of the Current Value in
the AG Account.
After the six-month period, the surrender or Transfer
will be the aggregate MVA amount, which may be
greater or less than the Current Value of those
amounts.
The greater of the aggregate MVA amount or the
applicable portion of the Current Value applies to
amounts withdrawn from the AG Account on account of
an election of Annuity options 3 or 4 (see 4.07).
Market value adjusted amounts will be equal to the
amount withdrawn multiplied by the following ratio:
x
---
365
(1 + i)
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x
---
365
(1 + j)
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16
3.05 Market Value Where:
Adjustment
(Cont'd): i is the Deposit Period Yield
j is the Current Yield
x is the number of days remaining, (computed from
Wednesday of the week of withdrawal) in the
Guaranteed Term.
The Deposit Period Yield will be determined as
follows:
(a) At the close of the last business day of each
week of the Deposit Period, a yield will be
computed as the average of the yields on that day
of U.S. Treasury Notes which mature in the last
three months of the Guaranteed Term.
(b) The Deposit Period Yield is the average of those
yields for the Deposit Period. If withdrawal is
made before the close of the Deposit Period, it
is the average of those yields on each week
preceding withdrawal.
The Current Yield is the average of the yields on the
last business day of the week preceding withdrawal on
the same U.S. Treasury Notes included in the Deposit
Period Yield.
In the event that no U.S. Treasury Notes which mature
in the last three months of the Guaranteed Term
exist, Aetna reserves the right to use the U.S.
Treasury Notes that mature in the following quarter.
3.06 Transfer of Before an Annuity option is elected, all or any
Current Value portion of the Adjusted Current Value may be
from the Funds transferred from any Fund or Guaranteed Term of the
or AG Account: AG Account:
(a) To any other Fund; or
(b) To any Guaranteed Term of the AG Account
available in the current Deposit Period.
Transfer requests can be submitted as a percentage or
as a dollar amount. Aetna may establish a minimum
transfer amount. Within a Guaranteed Term Group, the
amount to be surrendered or transferred will be
withdrawn first from the oldest Deposit Period, then
from the next oldest, and so on until the amount
requested is satisfied.
17
3.06 Transfer of The Contract Holder may make an unlimited number of
Current Value Transfers during the Accumulation Period. The number
from the Funds of free Transfers allowed by Aetna is shown on
or AG Account Contract Schedule I. Additional Transfers may be
(Cont'd): subject to a Transfer fee as shown on Contract
Schedule I. Transfers from the AG Account of a
Matured Term Value on or within one calendar month
after a Term's Maturity Date do not count against the
annual Transfer limit.
Amounts applied to Guaranteed Terms of the AG Account
may not be transferred to the Funds or to another
Guaranteed Term during the Deposit Period or for 90
days after the close of the Deposit Period except for
Matured Term Value(s) during the calendar month
following the Term's Maturity Date.
Transfers from Guaranteed Terms of the AG Account are
subject to the MVA provisions in 3.05.
3.07 Notice to the The Contract Holder will receive quarterly statements
Contract Holder: from Aetna of:
(a) The value of any amounts held in:
(1) The AG Account; and
(2) The Fund(s) under the Separate Account.
(b) The number of any Fund(s) record units; and
(c) The Fund(s) record unit value.
Such number or values will be as of a specific date
no more than 60 days before the date of the notice.
3.08 Loans: Loans are not available under this Contract.
3.09 Systematic A distribution option under which a portion of the
Withdrawal Current Value will automatically be surrendered and
Option (SWO): distributed each year. SWO payments will be
calculated on the Contract's full Current Value. The
distributed amount is withdrawn pro rata from each
investment option used under the Contract. A
Surrender Fee will not be deducted from any portion
of the Adjusted Current Value which is paid as a
distribution under SWO. Contract Holders should
consult their tax advisers prior to requesting this
distribution option. Aetna will not be responsible
for any adverse tax consequences due to receiving SWO
payments.
(a) Amount of Distribution: The Contract Holder may
elect one of the three payment methods described
below.
18
3.09 Systematic (1) Specified Payment: Payments of a designated
Withdrawal dollar amount. The annual amount may not be
Option (SWO) greater than the percentage of the Current
(Cont'd): Value on the date of the SWO election as
shown on Contract Schedule I. This annual
dollar amount will remain constant. At its
discretion, Aetna may require a minimum
payment amount. If SWO payments are made more
frequently than annually, the designated
annual amount is divided by the number of
payments due each year; or
(2) Specified Period: Payments made over a
designated period of time of at least 10
years. The annual amount is calculated by
dividing the Current Value as of December 31
of the year prior to the payment year by the
number of payment years remaining; or
(3) Specified Percentage: Payments of a
designated percentage which cannot be greater
than the percentage of the Current Value at
the time of election as shown on Contract
Schedule I. The percentage may be changed by
written request. Aetna reserves the right to
limit the number of times the percentage may
be changed. The annual amount is calculated
by multiplying the Current Value as of
December 31 of the year prior to the payment
year by the designated percentage.
Payments upon the Contract Holder's death will
continue to the Beneficiary in the manner described
in 3.11.
(b) Minimum Initial Current Value: At its discretion,
Aetna may require a minimum initial Current Value
for election of this option. If after election of
this option the Current Value is insufficient to
make a scheduled SWO payment, Aetna will
distribute the entire balance.
(c) Date of Distribution: The Contract Holder shall
specify the first payment date. The earliest
allowable first payment date is the date on which
the Contract Holder attains age 59-1/2. As
elected by the Contract Holder, SWO payments will
be made on a monthly, quarterly, semi-annual or
annual basis. If SWO payments are made more
frequently than annually, the designated annual
amount is divided by the number of payments due
each year. Subsequent payments will be made on
the 15th of the appropriate months or on such
other date Aetna may designate or allow.
19
3.09 Systematic (d) Election and Revocation: SWO may be elected by
Withdrawal submitting a completed and signed election form
Option (SWO) to Aetna's Home Office. Once elected, this option
(Cont'd): may be revoked by the Contract Holder or spousal
Beneficiary, if elected after the Contract
Holder's death, by submitting a written request
to Aetna at its Home Office. Any revocation will
apply only to amounts not yet paid. SWO may be
elected only once by the Contract Holder or by
the spouse Beneficiary.
3.10 Death Benefit If the Contract Holder or Annuitant dies before
Amount: Annuity payments start, the Beneficiary is entitled
to a death benefit under the Contract. The claim date
is the date when proof of death and the Beneficiary's
claim are received in good order at Aetna's Home
Office. The amount of the death benefit is determined
as follows:
(a) Death of Annuitant less than 75 years of age: The
guaranteed death benefit is the greatest of:
(1) The gross sum of all Purchase Payment(s) made
to the Contract (as of the date of death)
minus the sum of all amounts surrendered,
applied to an Annuity, or deducted from the
Contract;
(2) The step up value as of the date of death
plus all Net Purchase Payments made to the
Contract, minus the total of all partial
surrenders, amounts applied to an Annuity and
deductions made from the Contract since
determination of the step up value. The step
up value is the Current Value on the most
recent seventh year anniversary of the date
the first Net Purchase Payment is applied to
the Contract;
(3) The Contract's Current Value as of the date
of death.
The excess, if any, of the guaranteed death
benefit value over the Contract's Current
Value is determined as of the date of death.
Any excess amount will be deposited to the
Contract and allocated to Aetna Variable
Encore Fund as of the claim date. The Current
Value on the claim date plus any excess
amount deposited becomes the Contract's
Current Value.
(b) Death of Annuitant age 75 or greater: The death
benefit amount is the Current Value on the claim
date.
20
3.10 Death Benefit (c) Death of the Contract Holder if the Contract
Amount (Cont'd): Holder is not the Annuitant: The death benefit
amount is the Adjusted Current Value on the Claim
Date. A Surrender Fee may apply to any full or
partial surrender (see 3.13 and Contract Schedule
I).
3.11 Death Benefit Prior to any election, or until amounts must be
Options available otherwise distributed under this section, the Current
to Beneficiary: Value will be retained in the Contract. The
Beneficiary has the right under the Contract to
allocate or reallocate any amount to any of the
available investment options (subject to an MVA, as
applicable). The following options are available to
the Beneficiary:
(a) When the Contract Holder is the Annuitant: If the
Contract Holder/Annuitant dies, and:
(1) If the Beneficiary is the Contract Holder's
surviving spouse, the Beneficiary will be the
successor Contract Holder on Aetna's records.
Such successor Contract Holder may exercise
all rights under the Contract and continue in
the Accumulation Period, or may elect (i),
(ii), or (iii) below. Under the Code,
distributions from the Contract are not
required until the successor Contract
Holder's death. The Beneficiary may elect to:
(i) Apply some or all of the Adjusted Current
Value to Annuity option 2, 3 or 4 (see
4.07);
(ii)Apply some or all of the Adjusted
Current Value to Annuity option 1 (see
4.07); or
(iii) Receive, at any time, a lump sum
payment equal to the Adjusted Current
Value.
(2) If the Beneficiary is other than the Contract
Holder's surviving spouse, then options (i),
(ii), or (iii) under (1) above apply. Any
portion of the Adjusted Current Value not
applied to Annuity option 2, 3 or 4 within
one year of the Contract Holder's death, must
be distributed within five years of the date
of death.
(3) If no Beneficiary exists, a lump sum payment
equal to the Adjusted Current Value will be
made to the Contract Holder's estate.
(b) When the Contract Holder is not the Annuitant and
the Contract Holder dies, and:
21
3.11 Death Benefit (1) If the Beneficiary is the Contract Holder's
Options available surviving spouse, the Beneficiary will be the
to Beneficiary successor Contract Holder on Aetna's records.
(Cont'd): Such successor Contract Holder may exercise
all rights under the Contract and continue in
the Accumulation Period, or may elect (i),
(ii), or (iii) below. Under the Code,
distributions from the Contract are not
required until the successor Contract
Holder's death. The Beneficiary may elect to:
(i) Apply some or all of the Adjusted
Current Value to Annuity option 2, 3 or
4 (see 4.07);
(ii) Apply some or all of the Surrender
Value to Annuity option 1 (see 4.07);
or
(iii) Receive, at any time, a lump sum
payment equal to the Surrender Value.
(2) If the Beneficiary is other than the Contract
Holder's surviving spouse, then options (i),
(ii), or (iii) under (1) above apply. Any
portion of the Adjusted Current Value not
applied to Annuity option 2, 3 or 4 within
one year of the Contract Holder's death, must
be distributed within five years of the date
of death.
(3) If no Beneficiary exists, a lump sum payment
equal to the Surrender Value will be made to
the Contract Holder's estate.
(c) When the Contract Holder is not the Annuitant and
the Annuitant dies: The Beneficiary must elect
Annuity option 2, 3 or 4 within 60 days of the
date of death or the gain, if any, will be
includible in the Beneficiary's income in the tax
year in which the Annuitant dies.
3.12 Liquidation of All or any portion of the Adjusted Current Value may
Surrender Value: be surrendered at any time. Surrender requests can be
submitted as a percentage of the Adjusted Current
Value or as a specific dollar amount. Net Purchase
Payment amounts are withdrawn first, and then the
excess value, if any. For any partial surrender,
amounts are withdrawn on a pro rata basis from the
Fund(s) and/or the Guaranteed Term(s) Groups of the
AG Account in which the Current Value is invested.
Within a Guaranteed Term Group, the amount to be
surrendered or transferred will be withdrawn first
from the oldest Deposit Period, then from the next
oldest, and so on until the amount requested is
satisfied.
22
3.12 Liquidation of After deduction of the Maintenance Fee, if
Surrender Value applicable, the surrendered amount shall be reduced
(Cont'd): by a Surrender Fee, if applicable.
3.13 Surrender Fee: The Surrender Fee only applies to the Net Purchase
Payment(s) portion surrendered and varies according
to the elapsed time since deposit (see Contract
Schedule I). Net Purchase Payment amounts are
withdrawn in the same order they were applied.
No Surrender Fee is deducted from any portion of the
Net Purchase Payment which is paid:
(a) To a Beneficiary due to the Annuitant's death
before Annuity payments start, up to a maximum of
the aggregate Net Purchase Payment(s) minus the
total of all partial surrenders, amounts applied
to an Annuity and deductions made prior to the
Annuitant's date of death;
(b) As a premium for an Annuity option 2, 3 or 4
under this Contract (see 4.07);
(c) As a distribution under the SWO provision (see
3.09);
(d) At least 12 months after the date of the first
Purchase Payment to the Contract, in an amount
equal to or less than 10% of the Current Value.
This applies to the first surrender request,
partial or full, in a calendar year. The Current
Value is calculated as of the date the surrender
request is received in good order at Aetna's Home
Office. This waiver is not available to the
Contract Holder while SWO is in effect;
(e) For a full surrender where the Contract's Current
Value is $2,500 or less and no surrenders have
been taken from the Contract within the prior 12
months;
(f) By Aetna under 3.16; or
(g) If the Annuitant has spent at least 45
consecutive days in a licensed nursing care
facility and each of the following conditions are
met:
(1) more than one calendar year has elapsed since
the date the Contract was issued; and
(2) the surrender is requested within 3 years of
admission to a licensed nursing care
facility.
This waiver does not apply if the Annuitant was in a
nursing care facility at the time the Contract was
issued.
23
3.14 Payment of Under certain emergency conditions, Aetna may defer
Surrender Value: payment:
(a) For a period of up to 6 months (unless not
allowed by state law); or
(b) As provided by federal law.
3.15 Reinstatement: All or a portion of the proceeds of a full surrender
may be reinvested within 30 days after the surrender.
Any Maintenance Fee and Surrender Fee charged at the
time of surrender on the amount being reinvested will
be included in the reinstatement. Any Market Value
Adjustment(s) deducted from surrenders will not be
included in the reinstatement.
Amounts will be reinstated among the AG Account and
the Fund(s) in the Separate Account in the same
proportion as they were at the time of surrender. Any
amounts reinstated to the AG Account will be credited
to the Guaranteed Terms available during the current
Deposit Period in the same proportion as they were at
the time of surrender. In the event that a Guaranteed
Term of the same duration is unavailable, amounts
will be reinvested in the next shortest Guaranteed
Term available in the current Deposit Period. If no
shorter Guaranteed Term is available, the next longer
Guaranteed Term will be used. The number of Fund(s)
Record Units reinstated will be based on the Record
Unit Value(s) next computed after receipt at Aetna's
Home Office of the reinstatement request and the
amount to be reinstated.
Any Maintenance Fee which falls due after the
surrender and before the reinstatement will be
deducted from the amount reinstated.
Any Contract surrendered because the Current Value
was less than $2,500 immediately following any
partial surrender may not be reinstated (see 3.16).
Reinstatement is permitted only once.
3.16 Payment of Upon 90 days' written notice to the Contract Holder,
Adjusted Aetna will terminate any Contract if the Current
Current Value: Value becomes less than $2,500 immediately following
any partial surrender. Aetna does not intend to
exercise this right in cases where the Current Value
is reduced to $2,500 or less solely due to investment
performance. A surrender fee will not be deducted
from the Adjusted Current Value. The terminated
Adjusted Current Value may not be reinstated.
24
IV. ANNUITY PROVISIONS
--------------------------------------------------------------------------------
4.01 Choices to The Contract Holder may tell Aetna to apply any
be Made: portion of the Adjusted Current Value (minus any
premium tax) for an Annuity under option 2, 3, or 4
(see 4.07). The first Annuity payment may not be
earlier than one calendar year after the initial
Purchase Payment nor later than the later of:
(a) The first day of the month following the
Annuitant's 85th birthday; or
(b) The tenth anniversary of the last Purchase
Payment. In lieu of the election of an Annuity,
the Contract Holder may tell Aetna to make a lump
sum payment.
When an Annuity option is chosen, Aetna must also be
told if payments are to be made other than monthly
and whether to pay:
(a) A Fixed Annuity using the General Account;
(b) A Variable Annuity using any of the Fund(s)
available under this Contract for Annuity
purposes; or
(c) A combination of (a) and (b).
If a Fixed Annuity is chosen, the Annuity purchase
rate for the option chosen reflects at least the
Minimum Guaranteed Interest Rate (see Contract
Schedule II), but may reflect a higher interest rate.
If a Variable Annuity is chosen, the initial Annuity
payment for the option chosen reflects the assumed
annual return rate elected. (see Contract Schedule
II).
4.02 Terms of (a) When payments start, the age of the Annuitant
Annuity Options: plus the number of years for which payments are
guaranteed must not exceed 95.
(b) An Annuity option may not be elected if the first
payment would be less than $50 or if the total
payments in a year would be less than $250 (less
if required by state law). Aetna reserves the
right to increase the minimum first Annuity
payment amount and the minimum annual Annuity
payment amount based upon increases reflected in
the Consumer Price Index-Urban, (CPI-U) since
July 1, 1993.
(c) If a Fixed Annuity under option 2, 3, or 4 is
chosen and a larger payment would result from
applying the Surrender Value to a current Aetna
single premium immediate Annuity, Aetna will make
the larger payment.
25
4.02 Terms of (d) For purposes of calculating the guaranteed first
Annuity Options payment of a Variable Annuity or the payments for
(Cont'd): a Fixed Annuity, the Annuitant's and second
Annuitant's adjusted age will be used. The
Annuitant's and second Annuitant's adjusted age
is his or her age as of the birthday closest to
the Annuity commencement date reduced by one year
for Annuity commencement dates occurring during
the period of time from July 1, 1993 through
December 31, 1999. The Annuitant's and second
Annuitant's age will be reduced by two years for
Annuity commencement dates occurring during the
period of time from January 1, 2000 through
December 31, 2009. The Annuitant's and second
Annuitant's age will be reduced by one additional
year for Annuity commencement dates occurring in
each succeeding decade.
The Annuity purchase rates for options 3 and 4
are based on mortality from 1983 Table a.
(e) Assumed Annual Net Return Rate is the interest
rate used to determine the amount of the first
Annuity payment under a Variable Annuity as shown
on Contract Schedule II. The Separate Account
must earn this rate plus enough to cover the
mortality and expense risks charges (which may
include profit) and administrative charges if
future Variable Annuity Payments are to remain
level, (see Annuity return factor under Variable
Annuity Assumed Annual Net Return Rate on
Contract Schedule II).
(f) Once elected, Annuity payments cannot be commuted
to a lump sum except for Variable Annuity
payments under option 2 (see 4.07). The life
expectancy of the Annuitant and second Annuitant
shall be irrevocable upon the election of an
Annuity option.
4.03 Death of (a) Contract Holder is Annuitant: When the Contract
Annuitant/ Holder is the Annuitant and the Annuitant dies
Beneficiary: under option 2 or 3, or both the Annuitant and
the second Annuitant die under option 4(d), the
present value of any remaining guaranteed
payments will be paid in one sum to the
Beneficiary, or upon election by the Beneficiary,
any remaining payments will continue to the
Beneficiary. If option 4 has been elected and the
Contract Holder dies, the remaining payments will
continue to the successor payee. If no successor
payee has been designated, the Beneficiary will
be treated as the successor payee.
26
4.03 Death of (b) Contract Holder is Not Annuitant: When the
Annuitant/ Contract Holder is not the Annuitant and the
Beneficiary Contract Holder dies, the remaining payments
(Cont'd): under options 2, 3, or 4 will continue to the
successor payee. If no successor payee has been
designated, the Beneficiary will be treated as
the successor payee.
If the Annuitant dies under option 2 or 3, or if
both the Annuitant and the second Annuitant die
under option 4(d), the present value of any
remaining guaranteed payments will be paid in one
sum to the Beneficiary, or upon the election by
the Beneficiary, any remaining payments will
continue to the Beneficiary. If option 4 has been
elected, and the Annuitant dies, the remaining
payments will continue to the Contract Holder.
(c) No Beneficiary Named/Surviving: If there is no
Beneficiary under option 2, 3, or 4, the present
value of any remaining payments will be paid in
one sum to the Contract Holder, or if the
Contract Holder is not living, then to the
Contract Holder's estate.
(d) If the Beneficiary designated under option 1
dies, the amount held plus accrued interest will
be paid in one sum to a successor Beneficiary, if
any, named by the designated Beneficiary. If
there is no successor Beneficiary, the lump sum
will be paid to the designated Beneficiary's
estate.
(e) If the Beneficiary or the successor payee dies
while receiving Annuity payments, the present
value of any remaining guaranteed payments will
be paid in one sum to the successor
Beneficiary/payee, or upon election by the
successor Beneficiary/payee, any remaining
payments will continue to the successor
Beneficiary/payee. If no successor
Beneficiary/payee has been designated, the
present value of any remaining guaranteed
payments will be paid in one sum to the
Beneficiary's/payee's estate.
(f) The present value will be determined as of the
Valuation Period in which proof of death
acceptable to Aetna and a request for payment is
received at Aetna's Home Office. The interest
rate used to determine the first payment will be
used to calculate the present value.
27
4.04 Fund(s) Annuity The number of each Fund's Annuity units is based on
Units -- Separate the amount of the first Variable Annuity payment
Account: which is equal to: (a) The portion of the Current
Value applied to pay a Variable Annuity (minus any
premium tax); divided by
(b) 1,000; multiplied by
(c) The payment rate for the option chosen.
Such amount, or portion, of the variable payment will
be divided by the appropriate Fund Annuity unit value
(see 4.05) on the tenth Valuation Period before the
due date of the first payment to determine the number
of each Fund Annuity units. The number of each Fund
Annuity units remains fixed. Each future payment is
equal to the sum of the products of each Fund Annuity
unit value multiplied by the appropriate number of
Units. The Fund Annuity unit value on the tenth
Valuation Period prior to the due date of the payment
is used.
4.05 Fund Annuity For any Valuation Period, a Fund Annuity unit value
Unit Value-- is equal to:
Separate Account:
(a) The value for the previous Period; multiplied by
(b) The Annuity net return factor(s) (see 4.06 below)
for the Period; multiplied by
(c) A factor to reflect the assumed annual net return
rate (see Contract Schedule II).
The dollar value of a Fund Annuity unit values and
Annuity payments may go up or down due to investment
gain or loss.
4.06 Annuity Net The Annuity net return factor(s) are used to compute
Return Factor(s) -- Annuity payments for any Fund.
Separate Account:
The Annuity net return factor for each Fund is equal
to 1.0000000 plus the net return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by the
Separate Account at the end of a Valuation
Period; minus
(b) The value of the shares of the Fund held by the
Separate Account at the start of the Valuation
Period; plus or minus
(c) Taxes (or reserves for taxes) on the Separate
Account (if any); divided by
28
4.06 Annuity Net Return (d) The total value of the Fund record units and Fund
Factor(s) -- Separate Annuity units of the Separate Account at the
Account (Cont'd): start of the Valuation Period; minus
(e) A daily charge for Annuity mortality and expense
risks, which may include profit, and a daily
administrative charge (at the annual rate as
shown on Contract Schedule II).
A net return rate may be more or less than 0%.
The value of a share of the Fund is equal to the net
assets of the Fund divided by the number of shares
outstanding.
Payments shall not be changed due to changes in the
mortality or expense results or administrative
charges.
4.07 Annuity Options: Option 1 -- Payment of Interest on Sum Left with
Aetna -- This option may be used only by the
Beneficiary when the Contract Holder dies before
Aetna has started paying an Annuity. A portion or all
of the sum paid upon death may be held under this
option and will be held in the General Account of
Aetna at interest (see 4.01). The Beneficiary may
later tell Aetna to:
(a) Pay a portion or all of the sum held by Aetna; or
(b) Apply a portion or all of the sum held by Aetna
to any Annuity Option below.
If a nonspouse Beneficiary elects that some or all of
the Current Value is to be held under this option,
the Beneficiary must tell Aetna to pay the full sum
held under this option within 5 years of the date of
death.
Option 2 -- Payments for a Stated Period of Time --
An Annuity will be paid for the number of years
chosen. The number of years must be at least 5 and
not more than 30.
If payments for this option are made under a Variable
Annuity, the present value of any remaining payments
may be withdrawn at any time. If a withdrawal is
requested within 3 years after the start of payments,
it will be treated as a surrender and any applicable
Surrender Fee will be applied (see 3.13).
If a nonspouse Beneficiary elects this option at the
death of the Contract Holder, the period selected may
not extend beyond the Beneficiary's life expectancy.
29
4.07 Annuity Options Option 3 -- Life Income -- An Annuity will be paid
(Cont'd): for the life of the Annuitant. If also chosen, Aetna
will guarantee payments for 60, 120, 180, or 240
months.
Option 4 -- Life Income Based upon the Lives of Two
Annuitants -- An Annuity will be paid during the
lives of the Annuitant and a second Annuitant.
Payments will continue until both Annuitants have
died. When this option is chosen, a choice must be
made of:
(a) 100% of the payment to continue after the first
death;
(b) 66-2/3% of the payment to continue after the
first death;
(c) 50% of the payment to continue after the first
death;
(d) Payments for a minimum of 120 months with 100% of
the payment to continue after the first death; or
(e) 100% of the payment to continue at the death of
the second Annuitant and 50% of the payment to
continue at the death of the Annuitant.
Other Options -- Aetna may make other options
available as allowed by the laws of the state in
which this Contract is delivered.
30
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
----------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
----------------------------------------------------------------------
3 3.00% $ 28.99 $ 86.76 $ 172.88 $ 343.23
4 3.00% 22.06 66.02 131.56 261.19
5 3.00% 17.91 53.59 106.78 211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
----------------------------------------------------------------------
31
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
----------------------------------------------------------------------
Adjusted Age of
Annuitant None 60 120 180 240
----------------------------------------------------------------------
50 $ 4.05 $ 4.50 $ 4.03 $ 3.99 $ 3.93
51 4.12 4.11 4.09 4.05 3.99
52 4.19 4.19 4.16 4.11 4.04
53 4.27 4.26 4.23 4.18 4.10
54 4.35 4.34 4.31 4.25 4.16
55 4.44 4.42 4.39 4.32 4.22
56 4.53 4.51 4.47 4.40 4.29
57 4.62 4.61 4.56 4.48 4.35
58 4.72 4.71 4.65 4.56 4.42
59 4.83 4.81 4.75 4.64 4.49
60 4.95 4.93 4.86 4.73 4.55
61 5.07 5.05 4.97 4.83 4.62
62 5.20 5.17 5.08 4.92 4.69
63 5.34 5.31 5.20 5.02 4.76
64 5.49 5.45 5.33 5.12 4.83
65 5.65 5.61 5.47 5.22 4.89
66 5.82 5.77 5.61 5.33 4.96
67 6.01 5.94 5.75 5.44 5.02
68 6.20 6.13 5.91 5.54 5.08
69 6.41 6.33 6.07 5.65 5.14
70 6.64 6.54 6.23 5.76 5.19
71 6.88 6.76 6.41 5.86 5.24
72 7.14 7.00 6.59 5.97 5.28
73 7.43 7.26 6.77 6.06 5.32
74 7.73 7.53 6.96 6.16 5.35
75 8.06 7.82 7.14 6.25 5.38
----------------------------------------------------------------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
32
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
--------------------------------------------------------------------------------
Adjusted Ages
-------------------
Second
Annuitant Annuitant Option 4a Option 4b Option 4c Option 4d Option 4e
--------------------------------------------------------------------------------
55 50 $ 3.69 $ 4.05 $ 4.27 $ 3.69 $ 4.03
55 55 3.88 4.25 4.47 3.87 4.14
55 60 3.99 4.44 4.71 3.98 4.42
60 55 3.99 4.44 4.71 3.98 4.42
60 60 4.24 4.71 4.99 4.23 4.57
60 65 4.38 4.97 5.32 4.38 4.93
65 60 4.38 4.97 5.32 4.38 4.93
65 65 4.72 5.33 5.70 4.71 5.14
65 70 4.93 5.68 6.15 4.91 5.66
70 65 4.93 5.68 6.15 4.91 5.66
70 70 5.40 6.21 6.70 5.36 5.96
70 75 5.69 6.68 7.32 5.62 6.67
75 70 5.69 6.68 7.32 5.62 6.67
75 75 6.37 7.45 8.15 6.23 7.12
75 80 6.78 8.11 8.99 6.54 8.13
--------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
33
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
--------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
--------------------------------------------------------------------
3 3.50% $ 29.19 $ 87.33 $ 173.91 $ 344.86
4 3.50% 22.27 66.61 132.65 263.04
5 3.50% 18.12 54.19 107.92 213.99
6 3.50% 15.35 45.92 91.44 181.32
7 3.50% 13.38 40.01 79.69 158.01
8 3.50% 11.90 35.59 70.88 140.56
9 3.50% 10.75 32.16 64.05 127.00
10 3.50% 9.83 29.42 58.59 116.18
11 3.50% 9.09 27.18 54.13 107.34
12 3.50% 8.46 25.32 50.42 99.98
13 3.50% 7.94 23.75 47.29 93.78
14 3.50% 7.49 22.40 44.62 88.47
15 3.50% 7.10 21.24 42.31 83.89
16 3.50% 6.76 20.23 40.29 79.89
17 3.50% 6.47 19.34 38.51 76.37
18 3.50% 6.20 18.55 36.94 73.25
19 3.50% 5.97 17.85 35.54 70.47
20 3.50% 5.75 17.22 34.28 67.98
21 3.50% 5.56 16.65 33.15 65.74
22 3.50% 5.39 16.13 32.13 63.70
23 3.50% 5.24 15.66 31.19 61.85
24 3.50% 5.09 15.24 30.34 60.17
25 3.50% 4.96 14.85 29.56 58.62
26 3.50% 4.84 14.49 28.85 57.20
27 3.50% 4.73 14.15 28.19 55.90
28 3.50% 4.63 13.85 27.58 54.69
29 3.50% 4.53 13.57 27.02 53.57
30 3.50% 4.45 13.30 26.49 52.53
--------------------------------------------------------------------
34
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
--------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
--------------------------------------------------------------------
3 5.00% $ 29.80 $ 89.04 $ 176.99 $ 349.72
4 5.00% 22.89 68.38 135.93 268.58
5 5.00% 18.74 56.00 111.33 219.98
6 5.00% 15.99 47.77 94.96 187.64
7 5.00% 14.02 41.90 83.30 164.59
8 5.00% 12.56 37.52 74.58 147.35
9 5.00% 11.42 34.11 67.81 133.99
10 5.00% 10.51 31.40 62.42 123.34
11 5.00% 9.77 29.19 58.03 114.66
12 5.00% 9.16 27.36 54.38 107.45
13 5.00% 8.64 25.81 51.31 101.39
14 5.00% 8.20 24.50 48.69 96.21
15 5.00% 7.82 23.36 46.44 91.75
16 5.00% 7.49 22.37 44.47 87.88
17 5.00% 7.20 21.51 42.75 84.48
18 5.00% 6.94 20.74 41.23 81.47
19 5.00% 6.71 20.06 39.88 78.80
20 5.00% 6.51 19.46 38.68 76.42
21 5.00% 6.33 18.91 37.59 74.28
22 5.00% 6.17 18.42 36.62 72.35
23 5.00% 6.02 17.98 35.73 70.61
24 5.00% 5.88 17.57 34.93 69.02
25 5.00% 5.76 17.20 34.20 67.57
26 5.00% 5.65 16.87 33.53 66.25
27 5.00% 5.54 16.56 32.92 65.04
28 5.00% 5.45 16.28 32.35 63.93
29 5.00% 5.36 16.01 31.83 62.90
30 5.00% 5.28 15.77 31.35 61.95
--------------------------------------------------------------------
35
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Months
----------------------------------------------------------------
Age of
Annuitant None 60 120 180 240
----------------------------------------------------------------
50 $ 4.34 $ 4.34 $ 4.31 $ 4.27 $ 4.22
51 4.41 4.40 4.38 4.33 4.27
52 4.48 4.47 4.45 4.40 4.32
53 4.56 4.55 4.52 4.46 4.38
54 4.64 4.63 4.59 4.53 4.44
55 4.72 4.71 4.67 4.60 4.50
56 4.81 4.80 4.75 4.67 4.56
57 4.91 4.89 4.84 4.75 4.62
58 5.01 4.99 4.93 4.83 4.69
59 5.12 5.10 5.03 4.92 4.75
60 5.23 5.21 5.13 5.00 4.82
61 5.36 5.33 5.24 5.09 4.88
62 5.49 5.45 5.35 5.19 4.95
63 5.63 5.59 5.47 5.28 5.02
64 5.78 5.73 5.60 5.38 5.08
65 5.94 5.89 5.73 5.48 5.15
66 6.11 6.05 5.87 5.58 5.21
67 6.29 6.22 6.02 5.69 5.27
68 6.49 6.41 6.17 5.79 5.33
69 6.70 6.60 6.33 5.90 5.38
70 6.92 6.81 6.49 6.00 5.43
71 7.17 7.04 6.66 6.10 5.48
72 7.43 7.27 6.84 6.20 5.52
73 7.71 7.53 7.02 6.30 5.55
74 8.02 7.80 7.20 6.39 5.59
75 8.35 8.08 7.38 6.48 5.62
----------------------------------------------------------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
36
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Payments Guaranteed for a Stated Period of Months
----------------------------------------------------------------
Age of
Annuitant None 60 120 180 240
----------------------------------------------------------------
50 $ 5.26 $ 5.25 $ 5.22 $ 5.17 $ 5.11
51 5.33 5.32 5.28 5.23 5.15
52 5.40 5.38 5.34 5.29 5.20
53 5.47 5.45 5.41 5.35 5.26
54 5.54 5.53 5.48 5.41 5.31
55 5.63 5.61 5.56 5.47 5.36
56 5.71 5.69 5.63 5.54 5.42
57 5.80 5.78 5.72 5.61 5.47
58 5.90 5.88 5.81 5.69 5.53
59 6.01 5.98 5.90 5.77 5.59
60 6.12 6.09 6.00 5.85 5.65
61 6.24 6.21 6.10 6.93 5.71
62 6.37 6.33 6.21 6.02 5.77
63 6.51 6.46 6.33 6.11 5.83
64 6.66 6.60 6.45 6.20 5.89
65 6.82 6.75 6.57 6.30 5.95
66 6.99 6.91 6.71 6.39 6.01
67 7.17 7.08 6.85 6.49 6.06
68 7.36 7.27 6.99 6.59 6.12
69 7.57 7.46 7.15 6.69 6.17
70 7.80 7.67 7.30 6.78 6.21
71 8.05 7.89 7.47 6.88 6.25
72 8.31 8.13 7.64 6.97 6.29
73 8.59 8.38 7.81 7.06 6.33
74 8.90 8.64 7.99 7.15 6.36
75 9.23 8.93 8.16 7.23 6.38
----------------------------------------------------------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
37
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
----------------------------------------------------------------------------
Adjusted Ages
--------------------
Second
Annuitant Annuitant Option 4a Option 4b Option 4c Option 4d Option 4e
----------------------------------------------------------------------------
55 50 $ 3.97 $ 4.35 $ 4.56 $ 3.97 $ 4.31
55 55 4.16 4.54 4.76 4.15 4.42
55 60 4.27 4.73 5.00 4.26 4.48
60 55 4.27 4.73 5.00 4.26 4.70
60 60 4.51 4.99 5.27 4.50 4.84
60 65 4.66 5.25 5.61 4.65 4.93
65 60 4.66 5.25 5.61 4.65 5.22
65 65 4.99 5.61 5.99 4.98 5.42
65 70 5.19 5.97 6.44 5.17 5.54
70 65 5.19 5.97 6.44 5.17 5.93
70 70 5.67 6.49 6.99 5.62 6.23
70 75 5.95 6.96 7.61 5.87 6.40
75 70 5.95 6.96 7.61 5.87 6.95
75 75 6.64 7.73 8.43 6.48 7.40
75 80 7.04 8.39 9.29 6.79 7.64
----------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
38
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
--------------------------------------------------------------------------------
Adjusted Ages
----------------------------------
Second
Annuitant Annuitant Option 4a Option 4b Option 4c Option 4d Option 4e
--------------------------------------------------------------------------------
55 50 $ 4.88 $ 5.26 $ 5.48 $ 4.88 $ 5.23
55 55 5.04 5.44 5.66 5.04 5.32
55 60 5.15 5.63 5.91 5.14 5.38
60 55 5.15 5.63 5.91 5.14 5.59
60 60 5.37 5.87 6.16 5.37 5.72
60 65 5.52 6.14 6.51 5.51 5.80
65 60 5.52 6.14 6.51 5.51 6.10
65 65 5.83 6.49 6.87 5.82 6.29
65 70 6.04 6.84 7.34 6.00 6.41
70 65 6.04 6.84 7.34 6.00 6.81
70 70 6.49 7.35 7.87 6.44 7.08
70 75 6.77 7.84 8.51 6.68 7.25
75 70 6.77 7.84 8.51 6.68 7.81
75 75 7.45 8.60 9.33 7.27 8.25
75 80 7.86 9.28 10.20 7.57 8.49
--------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
39
--------------------------------------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇
Individual Variable, Fixed, or Combination Annuity Contract
Nonparticipating
--------------------------------------------------------------------------------
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA.
APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN INCREASE OR
DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT
APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.