CONTRACT NUMBER: VXX,XXX
CONTRACTHOLDER: ABC SCHOOL
DATE OF ISSUE: JANUARY 1, 1999
CONTRACT DATE: JANUARY 1, 1999
FIRST CONTRACT ANNIVERSARY: JANUARY 1, 2000
American United Life Insurance Company (AUL) issues this contract in
consideration of the Contractholder's application and its payment of
Contributions to AUL. When used in this contract, "we," "us" or "our" refer to
AUL and "you" or "your" refer to the Contractholder.
All provisions and conditions stated on this and subsequent pages are part of
this contract.
This contract is signed for AUL at its Home Office in Indianapolis, Indiana. Our
mailing address is P.O. Box 368, Indianapolis, Indiana 46206-0368.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. You may return the contract for any reason
within ten days after receiving it. If returned, the contract will be considered
void from the beginning and any Contributions will be refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
AUL American Series Contract
Guaranteed Benefit IRA Multiple-Fund Group Variable Annuity (NBR)
Current Interest Credited
Nonparticipating
ACCUMULATION UNITS IN AN INVESTMENT ACCOUNT UNDER THIS CONTRACT MAY INCREASE OR
DECREASE IN VALUE ACCORDING TO THE INVESTMENT PERFORMANCE OF THE UNDERLYING
INVESTMENTS HELD BY THE INVESTMENT ACCOUNT. THE VALUE OF SUCH ASSETS AND
ACCUMULATION UNITS IS NOT GUARANTEED. SECTION 4 OF THIS CONTRACT EXPLAINS THE
VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
If you have questions concerning your contract, or wish to register a complaint,
you may reach us by calling ▇-▇▇▇-▇▇▇-▇▇▇▇.
P-GB-K-IRAMFVA(NBR) (THIS CONTRACT IS A SIMPLE IRA)
ONTRACT NUMBER: VXX,XXX
CONTRACTHOLDER: ABC SCHOOL
DATE OF ISSUE: JANUARY 1, 1999
CONTRACT DATE: JANUARY 1, 1999
FIRST CONTRACT ANNIVERSARY: JANUARY 1, 2000
American United Life Insurance Company (AUL) issues this contract in
consideration of the Contractholder's application and its payment of
Contributions to AUL. When used in this contract, "we," "us" or "our" refer to
AUL and "you" or "your" refer to the Contractholder.
All provisions and conditions stated on this and subsequent pages are part of
this contract.
This contract is signed for AUL at its Home Office in Indianapolis, Indiana. Our
mailing address is P.O. Box 368, Indianapolis, Indiana 46206-0368.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. You may return the contract for any reason
within ten days after receiving it. If returned, the contract will be considered
void from the beginning and any Contributions will be refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
AUL American Series Contract
Guaranteed Benefit IRA Multiple-Fund Group Variable Annuity (NBR)
Current Interest Credited
Nonparticipating
ACCUMULATION UNITS IN AN INVESTMENT ACCOUNT UNDER THIS CONTRACT MAY INCREASE OR
DECREASE IN VALUE ACCORDING TO THE INVESTMENT PERFORMANCE OF THE UNDERLYING
INVESTMENTS HELD BY THE INVESTMENT ACCOUNT. THE VALUE OF SUCH ASSETS AND
ACCUMULATION UNITS IS NOT GUARANTEED. SECTION 4 OF THIS CONTRACT EXPLAINS THE
VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
If you have questions concerning your contract, or wish to register a complaint,
you may reach us by calling ▇-▇▇▇-▇▇▇-▇▇▇▇.
P-GB-K-IRAMFVA(NBR) (THIS CONTRACT IS A SEP IRA)
TABLE OF CONTENTS
Page
SECTION 1 - DEFINITIONS 3
SECTION 2 - ADMINISTRATION OF PARTICIPANT ACCOUNTS 6
2.1----- How Contributions Are Handled
2.2----- Amount of Contributions
2.3----- Excess Contributions
2.4----- Other Refunds
2.5----- Transfers from Other Contracts
SECTION 3 - OPERATION OF FIXED INTEREST ACCOUNT (FIA) 8
3.1----- Allocations to Participant Accounts
3.2----- Provision of Guaranteed Rates for Interest Pockets
3.3----- Renewal of Guaranteed Rates
3.4----- Minimum Rate Guarantee
3.5----- Allocation of Withdrawals
SECTION 4 - VALUATION OF INVESTMENT ACCOUNTS 9
4.1----- Operation of Investment Accounts
4.2----- Valuation of Mutual Funds
4.3----- Accumulation Units
4.4----- Value of Accumulation Units
4.5----- Determining the Net Investment Factor
4.6----- Valuing Participant Accounts
SECTION 5 - WITHDRAWALS, DEATH BENEFITS, AND TRANSFERS 10
5.1----- Withdrawals
5.2----- Death Benefits
5.3----- Transfers Between Investment Options
5.4----- Minimum Amounts
5.5----- Maximum Amounts
5.6----- Transfers to SIMPLE IRAs
SECTION 6 - ANNUITIES 13
6.1----- Annuity Purchases
6.2----- Annuity Options
6.3----- Determining Annuity Amount
6.4----- Proof of Age and Survival; Minimum Payments
6.5----- Annuity Certificates
P-GB-K-IRAMFVA(NBR).1
Page
SECTION 7 - MORTALITY AND EXPENSE RISK CHARGES
AND ADMINISTRATIVE CHARGES 14
7.1----- Investment Account Mortality and Expense Risk Charges
7.2----- Administrative Charge
7.3----- Mutual Fund or Portfolio Expense
7.4----- Taxes
7.5----- Reduction or Waiver of Charges
SECTION 8 - CONTRACT MODIFICATIONS 15
8.1----- Mutual Amendment
8.2----- Rates and Section 7 Charges
8.3----- Conformance with Law
8.4----- Our Right to Initiate Changes
8.5----- Prohibited Amendments
SECTION 9 - GENERAL PROVISIONS 16
9.1----- Ownership
9.2----- Entire Contract
9.3----- Benefit Determinations
9.4----- Representations and Warranties
9.5------Contractholder Representative; Misstatement of Data
9.6----- Requirement for Writing
9.7----- Quarterly Statement of Account Value
9.8----- Conformity with Law
9.9----- Sex and Number
9.10---- Facility of Payment
9.11---- Voting
9.12---- Acceptance of New Participants or Contributions
9.13-----Termination of Contract
9.14---- Nonforfeitability and Nontransferability
9.15---- AUL's Annual Statement
9.16---- AUL's Annual Meeting
TABLE OF GUARANTEED IMMEDIATE ANNUITIES 19
TABLE OF INVESTMENT ACCOUNTS 20
P-GB-K-IRAMFVA(NBR).2
SECTION 1 - DEFINITIONS
1.1 "Account Value" for a Participant Account as of a date is:
(a) that account's balance in the Fixed Interest Account (FIA) on that
date; plus
(b) the value of that account's Accumulation Units in each Investment
Account on that date.
1.2 "Accumulation Unit" is a valuation device used to measure increases in and
decreases to the value of any Investment Account.
1.3 "Annuity Commencement Date" is the first day of the month an annuity begins
under this contract. This date may not be later than the date a
Participant's periodic benefits are required to commence under the Code.
1.4 "Business Day" is any day both the New York Stock Exchange and our Home
Office are open for the general conduct of business.
1.5 "Code" means the Internal Revenue Code of 1986, as amended, and any
applicable regulations or rulings thereunder.
1.6 The "First Contract Anniversary" is listed on the contract face page.
Subsequent "Contract Anniversaries" are on the same day of each subsequent
year.
1.7 "Contract Quarter" is each of the four successive three-month periods in a
Contract Year.
1.8 The first "Contract Year" starts on the Contract Date and ends on the day
before the First Contract Anniversary. Each subsequent Contract Year starts
on a Contract Anniversary and ends on the day before the next Contract
Anniversary.
1.9 "Contributions" are amounts paid in cash to us by you or the Participant,
which we credit to a Participant Account. Contributions include amounts
transferred from another AUL group annuity contract. The legal title to,
and ownership of, these amounts is vested solely in the Participant.
Contributions include "Elective Deferrals," which means, with respect to
any taxable year, any Contribution made under a salary reduction agreement.
A Contribution made under a salary reduction agreement is not treated as an
Elective Deferral if, under the salary reduction agreement, the
Contribution is made pursuant to a one-time irrevocable election made by
the Participant at the time of initial eligibility to participate in the
agreement, or is made pursuant to a similar arrangement involving a
one-time irrevocable election specified in Regulations issued under the
Code. The Contractholder must identify any Elective Deferrals, which will
be allocated to an Elective Deferral subaccount within the applicable
Participant Account.
When this contract is a SIMPLE IRA, as defined in Code Section 408(p),
"Contributions" means, subject to the restrictions of the following
paragraph, amounts paid in cash to us by you or by the Participant,
including amounts transferred to this contract from another SIMPLE IRA
P-GB-K-IRAMFVA(NBR).3
of the Participant, which are credited to a Participant Account maintained
hereunder. The legal title to, and ownership of, such amounts is vested
solely in the Participant.
When this contract is a SIMPLE IRA, it will accept only cash Contributions
made on behalf of the Participant pursuant to the terms of a SIMPLE IRA
Plan described in Code Section 408(p). A rollover Contribution or a
transfer of assets from another SIMPLE IRA of the Participant will also be
accepted. No other Contributions will be accepted.
1.10 "Excess Contributions" are Contributions in excess of the applicable Code
limits.
1.11"Fixed Interest Account" or "FIA" is the portion of our general asset
account as described in Section 3, to which Contributions may be allocated
for accumulation at the Guaranteed Rates.
1.12 "Guaranteed Rates" are the guaranteed annual effective rates of interest we
credit to each Interest Pocket. A Guaranteed Rate may be modified only as
described in Section 3.3.
1.13 "Home Office" is our principal office in Indianapolis, Indiana. For
anything to be "received by AUL," it must be received at our Home Office.
1.14 "Interest Pocket" means a tracking method which associates funds deposited
into the FIA over a specific time period with a specific Guaranteed Rate,
as described in Section 3. After the guaranteed period provided in Section
3.3 has elapsed, we may consolidate two or more Interest Pockets in
conjunction with the announcement of new Guaranteed Rates.
1.15 "Investment Account" means each distinct portfolio established within our
Variable Account and identified in the Table of Investment Accounts in this
contract. Amounts allocated to any Investment Account are invested in the
shares of the corresponding Mutual Fund or Portfolio identified in the
Table of Investment Accounts. Our "Variable Account" is a separate account
we maintain under Indiana law which is called the AUL American Unit Trust
and which is registered under the Investment Company Act of 1940 as a unit
investment trust.
1.16 "Investment Option" is the FIA or any Investment Account. We reserve the
right to provide other Investment Options under this contract at any time.
1.17 "Mutual Fund" means any diversified, open-end, management investment
company made available by us, and listed in the Table of Investment
Accounts.
1.18 "Participant" is any person reported by you to us as eligible for, and as
participating in, this contract, and for whom a Participant Account is
established.
1.19 "Participant Account" is an account under this contract for each
Participant. Each Participant Account may have subaccounts for each type of
Contribution. We credit Contributions to Participant Accounts and
Contribution-type subaccounts as we are directed.
1.20 "Portfolio" is a portfolio established within a particular Mutual Fund, as
described in the Mutual Fund's current prospectus.
P-GB-K-IRAMFVA(NBR).4
1.21 "Valuation Periods" start at the close of each Business Day and end at the
close of the next Business Day.
1.22 The "Withdrawal Charge" is a percentage of the Account Value withdrawn
under this contract. The Withdrawal Charge will not apply to Account Values
withdrawn to provide an annuity as described in Section 6.1. The percentage
varies by the Participant Account Year in which the withdrawal is made. The
first Participant Account Year begins on the date when we establish a
Participant Account and credit the initial Contribution for the
Participant, and ends on the day immediately preceding the next anniversary
of such date. Each Participant Account Year thereafter begins on such an
anniversary date and ends on the day immediately preceding the next
succeeding anniversary date. The Withdrawal Charge percentage is as
follows:
During Withdrawal Charge
Participant Account Years Percentage
------------------------- -----------------
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
Thereafter 0%
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.23 "Withdrawal Value" is a Participant's Account Value, less any Withdrawal
Charge.
P-GB-K-IRAMFVA(NBR).5
SECTION 2 - ADMINISTRATION OF PARTICIPANT ACCOUNTS
2.1 How Contributions Are Handled:
(a) Contributions we receive are credited to the appropriate
Contribution-type subaccounts of each Participant Account, as we are
directed in allocation instructions. A Participant's initial
Contribution is allocated to the Participant Account by the second
Business Day after we (1) receive the initial Contribution or, if
later, (2) receive all data necessary to complete the allocation
(including data required to establish the Participant Account, the
amount of the Participant's Contribution, and Investment Option
elections. Subsequent Contributions are allocated to the Participant
Account on the Business Day we (1) receive that Contribution or, if
later, (2) receive all data necessary to complete the allocation.
(b) If we do not receive the data required to establish a Participant
Account and the amount of a Contribution for the Participant within 5
Business Days after we first receive that Contribution, we will return
that Contribution to the contributing party unless the contributing
party consents to us retaining that Contribution until the earlier of
(i) the date we receive such data and amount and, therefore, can
properly allocate that Contribution to the Participant Account or (ii)
25 days from the date we receive that Contribution.
(c) If we receive the data required to establish a Participant Account and
the amount of a Contribution for the Participant, but we do not
receive Investment Option elections for that Participant, the
Contribution is allocated to a suspense account. The suspense account
earns interest at the Guaranteed Rate for Contributions received on
the same date. When we receive all required data, amounts in the
suspense account, plus interest, are transferred to the appropriate
Investment Option for each designated Contribution-type.
(d) Participant Accounts may be allocated to Investment Options in any
increments acceptable to us. Investment Option elections remain in
effect until changed by the Participant. A change in Investment Option
elections is made by giving us new Investment Option elections.
2.2 Amount of Contributions: Except for amounts eligible for rollover treatment
under Code Sections 402(c), 403(a)(4), 403(b)(8), or 408(d)(3),
Contributions during a Participant's taxable year (which is presumed to be
a calendar year) may not exceed the amounts described below (as adjusted by
Code Section 408(a)):
(a) If this contract is a Simplified Employee Pension (SEP) IRA, as
described in Code Section 408(k):
(1) the lesser of $30,000 (or, if greater, 25% of the dollar
limitation in effect under Code Section 415(b)(1)(A)) or 15% of
compensation.
(2) No Contribution will be accepted under a SIMPLE plan established
by an employer pursuant to Code Section 408(p). No transfer or
rollover of funds attributable to contributions made by a
particular employer under its
P-GB-K-IRAMFVA(NBR).6
SIMPLE plan will be accepted from a SIMPLE IRA (an IRA used in
conjunction with a SIMPLE plan) prior to the expiration of the
2-year period beginning on the date the individual first
participated in that employer's SIMPLE plan.
(b) If this contract is a SIMPLE IRA:
(1) Except for amounts rolled over or transferred from another SIMPLE
IRA of the Participant, Contributions during a Participant's
taxable year (which is presumed to be a calendar year) may not
exceed the amounts allowed by Code Section 408(p) (as adjusted).
(2) If Contributions made on behalf of the Participant pursuant to a
SIMPLE IRA Plan maintained by the Participant's employer are
received directly by us from the employer, we will provide the
employer with the summary description required by Code Section
408(1)(2).
2.3 Excess Contributions: On receipt of instructions from the Participant, we
will withdraw Excess Contributions, plus gains and minus losses, from a
Participant Account and return them to the Participant. Such instructions
must state the amount to be returned and certify that such Contributions
are Excess Contributions and that such return is permitted by the Code.
2.4 Other Refunds: Other refunds of Contributions are applied before the close
of the calendar year following the year of refund toward the payment of
future Contributions or the purchase of additional benefits.
2.5 Transfers from Other Contracts: We may require amounts transferred to a
Participant Account from other AUL group annuity contracts to be deposited
in a suspense account. We will advise you if this limitation applies before
accepting such a transfer.
P-GB-K-IRAMFVA(NBR).7
SECTION 3 -- OPERATION OF FIXED INTEREST ACCOUNT (FIA)
3.1 Allocations to Participant Accounts: We allocate each Participant's
Contributions in the FIA based on the information we are provided.
3.2 Provision of Guaranteed Rates for Interest Pockets: At least 10 days in
advance of each calendar quarter, we will declare a Guaranteed Rate for the
Interest Pocket for that quarter. All Contributions or transfers hereunder
which are allocated to the FIA during that quarter will earn interest at
that Guaranteed Rate until that quarterly pocket matures on the second
January 1 following the quarter in which that pocket was established.
3.3 Renewal of Guaranteed Rates: Those quarterly Interest Pockets which mature
at the same time will be combined into an annual renewal Interest Pocket.
Funds associated with that annual renewal Interest Pocket will earn
interest for a full year at the Guaranteed Rate declared for that pocket. A
new Guaranteed Rate for each annual renewal Interest Pocket will be
declared at least 30 days prior to every January 1 for the 5 years
following the establishment of that pocket. An annual renewal Interest
Pocket will mature on January 1 of the sixth year following its
establishment, when it will be combined into one annual portfolio Interest
Pocket. Funds associated with that annual portfolio Interest Pocket will
earn interest for a full year at the Guaranteed Rate for that pocket, which
will be declared at least 30 days prior to every January 1.
3.4 Minimum Rate Guarantee: No Guaranteed Rate may be less than an annual
effective interest rate of 3.00%.
3.5 Allocation of Withdrawals: Withdrawals or transfers from the FIA are on a
first-in/first-out basis.
P-GB-K-IRAMFVA(NBR).8
SECTION 4 - VALUATION OF INVESTMENT ACCOUNTS
4.1 Operation of Investment Accounts: All income, gains, or losses, realized or
unrealized, from assets held in any Investment Account are credited to or
charged against the applicable Investment Account without regard to our
other income, gains, or losses. Investment Account assets are not
chargeable with liabilities arising out of any other business we may
conduct.
4.2 Valuation of Mutual Funds: The current prospectus for each Mutual Fund
describes how that Mutual Fund's assets are valued.
4.3 Accumulation Units: We credit amounts allocated to an Investment Account in
Accumulation Units. The Accumulation Unit value used is the one for the
Valuation Period when we allocate the amount to the Investment Account.
4.4 Value of Accumulation Units: We generally establish the Accumulation Unit
value for a new Investment Account at $1.00 on the date the first deposit
is made to the Investment Account. The value of an Accumulation Unit for
any later Valuation Period equals the value of an Accumulation Unit for the
immediately preceding Valuation Period times the Net Investment Factor for
the current Valuation Period. We determine the Accumulation Unit value
before giving effect to any additions, withdrawals, or transfers in the
current Valuation Period.
4.5 Determining the Net Investment Factor: We determine the Net Investment
Factor for each Investment Account by dividing (a) by (b), and then
subtracting (c), where:
(a) is:
(1) the net asset value of a Mutual Fund or Portfolio share at the
end of the current Valuation Period, plus
(2) any dividend or other distribution paid on each Mutual Fund or
Portfolio share during such Valuation Period, plus or minus
(3) any credit or charge for taxes paid or reserved by us during the
Valuation Period that we determine are attributable to the
Investment Account;
(b) is the net asset value of each Mutual Fund or Portfolio share held in
the Investment Account at the end of the prior Valuation Period; and
(c) is a daily charge factor we determine, as described in Section 7.1.
4.6 Valuing Participant Accounts: We determine the Account Value in an
Investment Account by multiplying the Accumulation Units in each
Participant Account by the Accumulation Unit value. The Accumulation Unit
value of an Investment Account changes only on a Business Day.
P-GB-K-IRAMFVA(NBR).9
SECTION 5 - WITHDRAWALS, DEATH BENEFITS, AND TRANSFERS
5.1 Withdrawals: A Participant may direct us to withdraw all or a portion of
his Participant Account, subject to the following provisions:
(a) If the entire Account Value is withdrawn, the amount paid equals the
Withdrawal Value, subject to any charges described in Section 7.4. In
all other instances, the Account Value is reduced by an amount
sufficient to make the payment requested and to cover the Withdrawal
Charge and any charges described in Section 7.4.
However, despite the previous paragraph, in the first Contract Year in
which a Participant Account is established, the Participant may
withdraw from his Participant Account up to 10% of the sum of his
Account Value (determined as of the later of the Contract Date or the
Contract Anniversary immediately preceding the request for the
withdrawal) plus Contributions made for him during that Contract Year,
without application of the Withdrawal Charge. The Participant may also
do this in the next succeeding Contract Year. In any subsequent
Contract Year, the Participant may withdraw up to 10% of his Account
Value (determined as of the Contract Anniversary immediately preceding
the request for the withdrawal) without application of the Withdrawal
Charge.
(b) A withdrawal request is effective, and the Account Value to be applied
pursuant to this Section is determined, on the Business Day that we
receive a proper withdrawal request.
(c) We will pay any cash lump-sum to the Participant within 7 days from
the appropriate Business Day as determined in Subsection (b) above,
except as we may be permitted to defer such payment of amounts
withdrawn from the Variable Account in accordance with appropriate
provisions of the federal securities laws. We reserve the right to
defer the payment of amounts withdrawn from the FIA for a period of up
to 6 months after we receive the withdrawal request.
(d) Withdrawals from a Participant Account's share of the FIA will be made
on a first-in/first- out basis under Section 3.5.
5.2 Death Benefits:
(a) Upon receipt of instructions from the Participant's beneficiary and of
due proof of the Participant's death prior to the date the Participant
Account is closed, we will apply the Account Value (subject to Section
7.4) of the Participant Account for the purpose of providing a death
benefit. The death benefit will be paid to the Participant's
beneficiary according to the method of payment elected by the
beneficiary (unless such method of payment was previously elected by
the Participant). The Participant's beneficiary may also designate a
beneficiary. This death benefit will be payable:
(1) in a single sum or other method not provided in (2) below;
provided, however, that the entire Account Value (subject to
Section 7.4) must be paid to the
P-GB-K-IRAMFVA(NBR).10
beneficiary on or before December 31 of the calendar year which
contains the fifth anniversary of the Participant's death, or
(2) as an annuity in accordance with the Annuity Options shown in
Section 6.2 over a period not to exceed the life or life
expectancy of the beneficiary.
If the beneficiary is not the Participant's surviving spouse, the
annuity must begin on or before December 31 of the calendar year
immediately following the calendar year in which the Participant
died.
If the beneficiary is the Participant's surviving spouse, the
spouse may elect to receive equal or substantially equal payments
over his or her life expectancy beginning on any date prior to
the later of (a) December 31 of the calendar year immediately
following the calendar year in which the Participant died or (b)
December 31 of the calendar year in which the Participant would
have attained age 70 1/2. This spousal election must be made no
later than the earlier of December 31 of the calendar year
containing the fifth anniversary of the Participant's death or
the date distributions are required to begin under the preceding
sentence. The surviving spouse may accelerate these payments at
any time by increasing the frequency or amount of payments.
If the beneficiary is the Participant's surviving spouse, the
spouse may treat the Participant Account as his or her own IRA.
This election is deemed to be made if the surviving spouse makes
a regular IRA Contribution under this contract, makes a rollover
to or from this contract, or fails to elect any of the above
three provisions.
(b) If a Participant dies on or after his Annuity Commencement Date, any
interest remaining under the Annuity Option selected will be paid at
least as rapidly as prior to the Participant's death.
(c) The Account Value to be applied pursuant to this Section is determined
on the Business Day that we receive a proper withdrawal request (or
due proof of death, if received later).
(d) We will pay any cash lump-sum death benefit to the Participant's
beneficiary within 7 days from the appropriate Business Day as
determined in Subsection (c) above, except as we may be permitted to
defer such payment of amounts withdrawn from the Variable Account in
accordance with appropriate provisions of the federal securities laws.
We reserve the right to defer the payment of amounts withdrawn from
the FIA for a period of up to 6 months after we receive the withdrawal
request.
5.3 Transfers between Investment Options: The Participant may direct us to
transfer amounts between Investment Options. Transfers are effective on the
Business Day we receive the transfer direction. Transfer directions for a
Participant Account may be made daily on any Business Day. We will make the
transfer as requested within 7 days from the date we receive the request,
P-GB-K-IRAMFVA(NBR).11
except as we may be permitted to defer the transfer of amounts withdrawn
from the Variable Account in accordance with appropriate provisions of the
federal securities laws. We reserve the right to defer a transfer of
amounts from the FIA for a period of up to 6 months after we receive the
transfer request.
However, despite the previous paragraph, once a transfer from the FIA has
been made for a Participant, a transfer to the FIA for that Participant is
permitted only after 90 days have elapsed since the date of the last
transfer from the FIA for that Participant. If you make available to
Participants the FIA and the Competing Investment Account marked with an
asterisk in the Table of Investment Accounts, the 90-day transfer
restriction discussed in the previous sentence does not apply, and Section
5.4 does apply.
5.4 Minimum Amounts: The minimum amount the Participant may withdraw or
transfer from an Investment Option is $500 or, if less, the Participant's
entire balance in that Investment Option. If a withdrawal or transfer
reduces the Participant balance in an Investment Option to less than $500,
the entire balance is withdrawn or transferred.
5.5 Maximum Amounts: If you make available to Participants the FIA and the
Competing Investment Account marked with an asterisk in the Table of
Investment Accounts, no more than 20% of a Participant's FIA Account Value
on the later of the Contract Date or the Contract Anniversary immediately
preceding the request for transfer may be transferred from the FIA during
any Contract Year. However, if the Participant's FIA Account Value is less
than $2,500 on the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer, the amount transferrable
from the FIA for that Participant for that Contract Year is the minimum
amount specified in Section 5.4.
5.6 Transfers to SIMPLE IRAs: If this is a SIMPLE IRA, prior to the expiration
of the 2-year period beginning on the date the Participant first
participated in any SIMPLE IRA Plan maintained by the Participant's
employer, any rollover or transfer by the Participant of funds from this
SIMPLE IRA must be made to another SIMPLE IRA of the Participant. Any
distribution of funds to the Participant during this 2-year period may be
subject to a 25- percent additional tax if the Participant does not roll
over the amount distributed into a SIMPLE IRA. After the expiration of this
2-year period, the Participant may roll over or transfer funds to any IRA
of the Participant that is qualified under Code Section 408(a) or (b).
P-GB-K-IRAMFVA(NBR).12
SECTION 6 - ANNUITIES
6.1 Annuity Purchases: The Participant may withdraw all or a portion of his
Account Value (subject to Section 7.4) to provide an annuity. Such a
withdrawal is not subject to a Withdrawal Charge. On receipt of an annuity
purchase request, we transfer the entire Participant Account to a suspense
account. Such amounts remain in the suspense account until the Annuity
Commencement Date, when the full balance (including interest) is applied to
purchase the annuity.
The Participant's annuity purchase request must specify the purpose for the
annuity, the election of an annuity option, Annuity Commencement Date, any
contingent annuitant or beneficiary, and any additional information we
require. If the Participant or any contingent annuitant dies before the
Annuity Commencement Date, the annuity election is cancelled.
The minimum amount which the Participant may apply to purchase an annuity
is $5,000.
6.2 Annuity Options: The Participant may elect any optional form of annuity we
offer at the time of purchase. Available annuity options always include:
(a) Life Annuity. A monthly annuity is payable as long as the annuitant
lives, and ends with the last payment before the annuitant's death.
(b) Survivorship Annuity. A monthly annuity is payable as long as the
annuitant lives. After the annuitant's death, all or a portion of the
monthly annuity is paid to the contingent annuitant as long as the
contingent annuitant lives.
No annuity may have a certain period extending beyond the life expectancy
of a Participant or the joint life expectancy of a Participant and any
contingent annuitant, as determined on the Annuity Commencement Date.
6.3 Determining Annuity Amount: We compute the annuity amount using the factors
reflected in the Table of Guaranteed Immediate Annuities attached to this
contract. However, if our current single premium, nonparticipating,
immediate annuity rates for this class of group annuity contracts produces
a higher monthly annuity than the Table of Guaranteed Immediate Annuities,
then that more favorable annuity rate is applied.
6.4 Proof of Age and Survival; Minimum Payments: We may require proof of any
annuitant's or contingent annuitant's date of birth before commencing
payments under any annuity. We may also require proof that an annuitant or
contingent annuitant is living before making any annuity payment. If a
monthly annuity is less than our current established minimum payment, we
may make payments on a less-frequent basis or in a single sum.
6.5 Annuity Certificates: We issue to each person for whom an annuity is
purchased a certificate setting forth the annuity's amount and terms.
P-GB-K-IRAMFVA(NBR).13
SECTION 7 - MORTALITY AND EXPENSE RISK CHARGES
AND ADMINISTRATIVE CHARGES
7.1 Investment Account Mortality and Expense Risk Charges: We deduct from the
average daily net assets of each Investment Account the daily equivalent of
an annual combined mortality risk charge and expense risk charge of 1.25%.
This charge is part of the Net Investment Factor, described in Section 4.5.
7.2 Administrative Charge: We deduct an administrative charge per Contract
Quarter equal to the lesser of $7.50 or 0.5% of the Account Value on the
last day of each Contract Quarter from each Participant Account in
existence on that day for as long as the Participant Account is in effect.
This charge is to be prorated among each subaccount of the Participant
Account which corresponds to each Investment Option utilized under this
contract by that Participant Account. If the entire balance of a
Participant Account is withdrawn pursuant to this contract, the
administrative charge attributable to the period of time which has elapsed
since the first day of the Contract Quarter in which the withdrawal of
funds is made is not deducted from the amount withdrawn.
There is no charge for a Participant for any Contract Quarter in which the
Participant's Account Value on the last day of that quarter is greater than
$25,000.
7.3 Mutual Fund or Portfolio Expense: A Mutual Fund or Portfolio deducts an
investment advisory fee and other expenses from its net asset value, as
described in its current prospectus. Amounts deducted may include
operational, organizational, and extraordinary expenses. Expenses vary from
year-to-year.
7.4 Taxes: We may deduct charges equal to any premium tax we incur from the
balance applied to purchase an annuity or at such other time as premium
taxes are incurred by us. We may also deduct from Investment Accounts
reasonable charges for federal, state, or local income taxes we incur that
are attributable to such Investment Accounts.
7.5 Reduction or Waiver of Charges: We may reduce or waive the Withdrawal
Charge or the charges discussed above if the appropriate expenses
associated with the sale or administration of any contract are reduced, or
if a contract is sold covering our employees or directors, those of the AUL
American Series Fund, Inc., or to either's affiliates.
P-GB-K-IRAMFVA(NBR).14
SECTION 8 - CONTRACT MODIFICATIONS
8.1 Mutual Amendment: You and we may agree to any change or amendment to this
Contract without the consent of any other person or entity. However, no
such change or amendment shall adversely affect the benefits to be provided
by Contributions made prior to the effective date of the change or
amendment unless the consent of all Participants is obtained. This contract
cannot be modified or amended, nor can any provision or condition be
waived, except by our written agreement, signed by a corporate officer.
Such authority may be delegated only by a written agreement signed by our
corporate officer.
8.2 Rates and Section 7 Charges: We may announce new Guaranteed Rates, as
described in Sections 3.2 and 3.3 (including the consolidation of existing
Interest Pockets). However, as provided in Sections 3.2 and 3.3, we may not
change the declared Guaranteed Rate applicable to an established Interest
Pocket during the guaranteed period. We may also modify the charge levels
in Section 7, using the procedures of Section 8.4.
8.3 Conformance with Law: We may amend this contract at any time, without your
consent, or that of any other person or entity, if the amendment is
reasonably needed to comply with, or give you or Participants the benefit
of, any provisions of federal or state laws. Any such amendment will be
delivered to you prior to its effective date.
8.4 Our Right to Initiate Changes: In addition to those amendments permitted by
Sections 8.2 and 8.3, we may initiate an additional provision or
modification of any other provision of this contract (including the
addition of a charge for transfers between Investment Options) by giving
you 60 days notice of such modification. Any such modification is effective
without your affirmative assent.
8.5 Prohibited Amendments:
(a) Despite our right to initiate changes under Section 8.4, we may not
initiate changes to the minimum Guaranteed Rate specified in Section
3.4, our obligation to set Guaranteed Rates for the period of time
specified in Sections 3.2 and 3.3, or the Table of Guaranteed
Immediate Annuities.
(b) No modification to this contract may change the terms of a previously
purchased annuity or reduce any interest guarantee applicable to
Participant Account FIA balances on the modification's effective date.
P-GB-K-IRAMFVA(NBR).15
SECTION 9 - GENERAL PROVISIONS
9.1 Ownership: You own this contract. All amounts received or credited under
this contract become our property. We are obligated to make only the
payments or distributions specified in this contract.
9.2 Entire Contract: This contract is for the exclusive benefit of the
Participants and their beneficiaries. This contract and your application is
the entire agreement between you and us. We are not a party to, nor bound
by, a plan, trust, custodial agreement, or other agreement, or any
amendment or modification to any of the same. We are not a fiduciary under
this contract or under any such plan, trust, custodial agreement, or other
agreement.
9.3 Benefit Determinations: The Participant will furnish us whatever
information is necessary to establish the eligibility for and amount of
annuity or other benefit due. We rely solely on his instructions and
certifications with respect to his benefits. The Participant is fully
responsible for determining the existence or amount of Excess Contributions
(plus gains or minus losses thereon), or that returns of Excess
Contributions are permitted by the Code.
We may rely on the Participant's statements or representations in honoring
any benefit payment request.
9.4 Representations and Warranties: You and we mutually represent and warrant,
each to the other, that each is fully authorized to enter into this
contract and that this contract is a valid and binding obligation and that
the execution of this contract does not violate any law, regulation,
judgment, or order by which the representing party is bound. In addition,
you represent and warrant to us that:
(a) your plan is a SEP IRA plan or a SIMPLE IRA plan under the Code;
(b) the execution of this contract has been authorized by the plan
fiduciary responsible for plan investment decisions; and
(c) the execution or performance of this contract does not violate any
plan provision or any law, regulation, judgment, or order by which the
plan is bound.
We do not make any representation or warranty regarding the federal, state,
or local tax status of this contract, any Participant Account, or any
transaction involving this contract.
9.5 Contractholder Representative; Misstatement of Data: You may designate a
representative to act on your behalf under the contract. We may rely on any
information you, your designee, or a Participant furnish. We need not
inquire as to the accuracy or completeness of such information. If any
essential data pertaining to any person has been omitted or misstated,
including, but not limited to, a misstatement of an annuitant's or
contingent annuitant's age, we will make an equitable adjustment to provide
the annuity or other benefit determined using correct data.
P-GB-K-IRAMFVA(NBR).16
9.6 Requirement for Writing: When reference is made to you, your designee, or a
Participant making a request or giving notice, instruction, or direction,
such request, notice, instruction, or direction must be in writing, or in a
form otherwise acceptable to us, and is effective when we receive it.
9.7 Quarterly Statement of Account Value: Reasonably promptly after the end of
each Contract Quarter, we will prepare a statement of the Account Value for
each Participant Account.
9.8 Conformity with Law: Any benefit payable under this contract shall not be
less than the minimum benefit required by the insurance laws of the state
in which the contract is delivered. Language in this contract referring to
state or federal tax, securities, or other statutes or rules do not
incorporate within this contract any such statutes or rules.
9.9 Sex and Number: Whenever the context so requires, the plural includes the
singular, the singular the plural, and the masculine the feminine.
9.10 Facility of Payment: If any Participant, contingent annuitant, or
beneficiary is legally incapable of giving a valid receipt for any payment,
and no guardian has been appointed, we may pay the person or persons who
have assumed the care and principal support of such Participant, contingent
annuitant, or beneficiary. We may also pay the Participant's designee. Any
such payment fully discharges us to the extent of such payment.
9.11 Voting: We own all Mutual Fund or Portfolio shares held in an Investment
Account. We exercise the voting rights of such shares at all shareholder
meetings on all matters requiring shareholder voting under the Investment
Company Act of 1940 or other applicable laws. Our vote reflects
instructions received from persons having the voting interest in the
shares, as follows:
(a) Participants have the voting interest under this contract. Unless
otherwise required by applicable law, the number of Mutual Fund or
Portfolio shares for which we may receive voting instructions is
determined by dividing the aggregate Account Values in the affected
Investment Account by the net asset value of the Mutual Fund or
Portfolio shares. Fractional votes are counted. Our determination is
made as of the date used by the Mutual Fund or Portfolio to determine
shareholders eligible to vote.
(b) We vote shares proportionally, to reflect the voting instructions we
receive in a timely manner from Participants and from all other
contractholders. If no timely voting instructions are received from
Participants, we vote shares proportionally, to reflect the voting
instructions we received in a timely manner for all other contracts.
To the extent permitted by applicable law, we may vote shares in our own
right or may modify the above procedures to reflect changes in the law or
its interpretation.
We will provide prospectuses and other reports as required by applicable
federal law.
9.12 Acceptance of New Participants or Contributions: We may refuse to accept
new Participants or new Contributions at any time.
P-GB-K-IRAMFVA(NBR).17
9.13 Termination of Contract: This contract terminates automatically if no
amounts remain in either the FIA or any Investment Account. However, upon
written notice to us, you may stop making Contributions at any time.
9.14 Nonforfeitability and Nontransferability: The entire Withdrawal Value of a
Participant Account under this contract is nonforfeitable at all times. No
sum payable under this contract with respect to a Participant may be sold,
assigned, discounted, or pledged as collateral for a loan or as security
for the performance of an obligation or for any other purpose to any person
or entity other than AUL. In addition, to the extent permitted by law, no
such sum shall in any way be subject to legal process requiring the payment
of any claim against the payee.
9.15 AUL's Annual Statement: No provision of this contract controls, determines,
or modifies any AUL annual statement made to any insurance department,
contractholder, regulatory body, or other person. Nor does anything in such
annual statement control, determine, or modify the provisions of this
contract.
9.16 AUL's Annual Meeting: Unless otherwise notified, our regular annual meeting
is held at our Home Office on the third Thursday in February at 10 a.m.
Elections for directors are held at such annual meeting.
P-GB-K-IRAMFVA(NBR).18
TABLE OF GUARANTEED IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
10-YEAR CERTAIN
ADJUSTED AGE LIFE ANNUITY AND LIFE ANNUITY
45 2.9690 2.9632
46 3.0190 3.0124
47 3.0715 3.0641
48 3.1269 3.1185
49 3.1852 3.1756
50 3.2466 3.2357
51 3.3115 3.2988
52 3.3800 3.3653
53 3.4525 3.4352
54 3.5291 3.5088
55 3.6104 3.5863
56 3.6966 3.6678
57 3.7881 3.7536
58 3.8850 3.8437
59 3.9877 3.9382
60 4.0964 4.0374
61 4.2115 4.1414
62 4.3334 4.2505
63 4.4626 4.3650
64 4.5994 4.4850
65 4.7442 4.6108
66 4.8977 4.7425
67 5.0608 4.8804
68 5.2347 5.0250
69 5.4213 5.1766
70 5.6229 5.3356
71 5.8412 5.5020
72 6.0778 5.6755
73 6.3336 5.8552
74 6.6097 6.0404
75 6.9084 6.2302
Adjusted Age = Actual Age at Settlement (in years and completed months) less the
following number of months: [.6 times (Birth Year - 1915)] rounded to the
nearest integer.
Guaranteed purchase rates are 96% of the net single premium for the benefit
provided based on the unprojected 1994 Group Annuity Reserving Table for females
with interest at 2%.
P-GB-K-IRAMFVA(NBR).19
TABLE OF INVESTMENT ACCOUNTS
The following Investment Accounts are made available to you under this contract.
By completing a form we require, you may restrict the Investment Accounts you
make available to your Participants. Amounts allocated to any Investment Account
identified below are invested in the shares of the corresponding Mutual Fund or
Portfolio listed below. The Competing Investment Account marked with an asterisk
(*) is not available if you use the FIA and if you do not want the FIA 20%
annual transfer restriction provided in Section 5.5 to apply.
Investment Account Mutual Fund or Portfolio
------------------------------------------ ------------------------------------------
AUL American Aggressive Investor Portfolio AUL American Aggressive Investor Portfolio
AUL American Bond AUL American Bond
AUL American Conservative Investor AUL American Conservative Investor
Portfolio Portfolio
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Moderate Investor Portfolio AUL American Moderate Investor Portfolio
AUL American Money Market * AUL American Money Market
AUL American Tactical Asset Allocation AUL American Tactical Asset Allocation
Portfolio Portfolio
▇▇▇▇▇ American Growth ▇▇▇▇▇ American Growth
American Century VP Capital Appreciation American Century VP Capital Appreciation
▇▇▇▇▇▇▇ Social Mid-Cap Growth ▇▇▇▇▇▇▇ Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Janus Aspen Series Worldwide Growth
Portfolio Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity SAFECO Resource Series Trust Equity
Portfolio Portfolio
SAFECO Resource Series Trust Growth SAFECO Resource Series Trust Growth
Portfolio Portfolio
▇. ▇▇▇▇ Price Equity-Income Portfolio ▇. ▇▇▇▇ Price Equity-Income Portfolio
P-GB-K-IRAMFVA(NBR).20
CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC SCHOOL
PARTICIPANT'S NAME ▇▇▇▇ ▇▇▇
SOCIAL SECURITY NUMBER ▇▇▇-▇▇-▇▇▇▇
American United Life Insurance Company hereby certifies that the Contractholder
and AUL have entered into a Multiple-Fund Group Variable Annuity Contract (the
Contract) in connection with the Contractholder's SIMPLE IRA plan and that AUL
has created an account in your name to receive Contributions from the
Contractholder for your benefit pursuant to the Contract. When used in this
certificate, "we," "us," or "our" refer to AUL.
The only parties to the Contract are the Contractholder and AUL. All rights and
benefits are determined in accordance with the provisions of the Contract.
Benefits under the Contract will be paid at your direction.
Any amendments to, or changes in, the Contract will be binding and conclusive on
you and your beneficiary.
This certificate is not itself the Contract, but is a certificate of
participation in the Contract.
AMERICAN UNITED LIFE INSURANCE COMPANY
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
CERTIFICATE FOR
GUARANTEED BENEFIT IRA
MULTIPLE-FUND GROUP VARIABLE ANNUITY (NBR)
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT UNDER THE CONTRACT MAY INCREASE OR
DECREASE IN VALUE ACCORDING TO THE INVESTMENT PERFORMANCE OF THE UNDERLYING
INVESTMENTS HELD BY THE INVESTMENT ACCOUNT. THE VALUE OF SUCH ASSETS AND
ACCUMULATION UNITS IS NOT GUARANTEED. SECTION 4 OF THIS CERTIFICATE EXPLAINS THE
VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
If you have questions concerning the Contract, or wish to register a complaint,
you may reach us by calling ▇-▇▇▇-▇▇▇-▇▇▇▇.
P-GB-C-IRAMFVA(NBR) (THE CONTRACT IS A SIMPLE IRA)
ONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC SCHOOL
PARTICIPANT'S NAME ▇▇▇▇ ▇▇▇
SOCIAL SECURITY NUMBER ▇▇▇-▇▇-▇▇▇▇
American United Life Insurance Company hereby certifies that the Contractholder
and AUL have entered into a Multiple-Fund Group Variable Annuity Contract (the
Contract) in connection with the Contractholder's SEP IRA plan and that AUL has
created an account in your name to receive Contributions from the Contractholder
for your benefit pursuant to the Contract. When used in this certificate, "we,"
"us," or "our" refer to AUL.
The only parties to the Contract are the Contractholder and AUL. All rights and
benefits are determined in accordance with the provisions of the Contract.
Benefits under the Contract will be paid at your direction.
Any amendments to, or changes in, the Contract will be binding and conclusive on
you and your beneficiary.
This certificate is not itself the Contract, but is a certificate of
participation in the Contract.
AMERICAN UNITED LIFE INSURANCE COMPANY
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
CERTIFICATE FOR
GUARANTEED BENEFIT IRA
MULTIPLE-FUND GROUP VARIABLE ANNUITY (NBR)
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT UNDER THE CONTRACT MAY INCREASE OR
DECREASE IN VALUE ACCORDING TO THE INVESTMENT PERFORMANCE OF THE UNDERLYING
INVESTMENTS HELD BY THE INVESTMENT ACCOUNT. THE VALUE OF SUCH ASSETS AND
ACCUMULATION UNITS IS NOT GUARANTEED. SECTION 4 OF THIS CERTIFICATE EXPLAINS THE
VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
If you have questions concerning the Contract, or wish to register a complaint,
you may reach us by calling ▇-▇▇▇-▇▇▇-▇▇▇▇.
P-GB-C-IRAMFVA(NBR) (THE CONTRACT IS A SEP IRA)
IMPORTANT NOTICE
To obtain information or make a complaint:
You may contact your Texas AUL office at:
▇-▇▇▇-▇▇▇-▇▇▇▇
You may call AUL's toll-free telephone number for information or to make a
complaint at: ▇-▇▇▇-▇▇▇-▇▇▇▇
You may also write to AUL at:
P O Box 368
Indianapolis, IN ▇▇▇▇▇-▇▇▇▇
You may contact the Texas Department of Insurance to obtain information on
companies, coverages, rights, or complaints at: 1-800-252-3439
You may write the Texas Department of Insurance at:
P O Box 149104
Austin, TX ▇▇▇▇▇-▇▇▇▇
FAX# (▇▇▇) ▇▇▇-▇▇▇▇
ATTACH THIS NOTICE TO YOUR POLICY: This notice is for information only and does
not become a part or condition of the attached document.
AVISO IMPORTANTE
Para obtener informacion o para someter una ▇▇▇▇▇:
Puede comunicarse con su Texas AUL al:
▇-▇▇▇-▇▇▇-▇▇▇▇
Usted puede llamar al numero de telefono gratis ▇▇ ▇▇▇ para informacion o para
someter una ▇▇▇▇▇ al: ▇-▇▇▇-▇▇▇-▇▇▇▇
Usted tambien puede escribir a AUL:
P O Box 368
Indianapolis, IN 46206-0368
Puede comunicarse con el Departamento de ▇▇ ▇▇▇▇▇ de Texas para obtener
informacion acercu de companias, coberturas, derechos o quejas al:
1-800-252-3439
Puede escribir al Departamento de Seguros de
Texas:
P O Box 149104
Austin, TX ▇▇▇▇▇-▇▇▇▇
FAX# (▇▇▇) ▇▇▇-▇▇▇▇
UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de informacion y
no se conveerte en parte o condicion del documento adjunto.
P-GB-C-IRAMFVA(NBR)(TXNOTICE)
TABLE OF CONTENTS
Page
SECTION 1 - DEFINITIONS 3
SECTION 2 - ADMINISTRATION OF YOUR PARTICIPANT ACCOUNT 6
2.1----- How Contributions Are Handled
2.2----- Amount of Contributions
2.3----- Excess Contributions
2.4----- Other Refunds
2.5----- Transfers from Other Contracts
SECTION 3 - OPERATION OF FIXED INTEREST ACCOUNT (FIA) 8
3.1----- Allocations to Your Participant Account
3.2----- Provision of Guaranteed Rates for Interest Pockets
3.3----- Renewal of Guaranteed Rates
3.4----- Minimum Rate Guarantee
3.5----- Allocation of Withdrawals
SECTION 4 - VALUATION OF INVESTMENT ACCOUNTS 9
4.1----- Operation of Investment Accounts
4.2----- Valuation of Mutual Funds
4.3----- Accumulation Units
4.4----- Value of Accumulation Units
4.5----- Determining the Net Investment Factor
4.6----- Valuing Your Participant Account
SECTION 5 - WITHDRAWALS, DEATH BENEFITS, AND TRANSFERS 10
5.1----- Withdrawals
5.2----- Death Benefits
5.3----- Transfers Between Investment Options
5.4----- Minimum Amounts
5.5----- Maximum Amounts
5.6----- Transfers to SIMPLE IRAs
SECTION 6 - ANNUITIES 13
6.1----- Annuity Purchases
6.2----- Annuity Options
6.3----- Determining Annuity Amount
6.4----- Proof of Age and Survival; Minimum Payments
6.5----- Annuity Certificates
P-GB-C-IRAMFVA(NBR).1
Page
SECTION 7 - MORTALITY AND EXPENSE RISK CHARGES
AND ADMINISTRATIVE CHARGES 14
7.1----- Investment Account Mortality and Expense Risk Charges
7.2----- Administrative Charge
7.3----- Mutual Fund or Portfolio Expense
7.4----- Taxes
SECTION 8 - CONTRACT MODIFICATIONS 15
8.1----- Mutual Amendment
8.2----- Rates and Section 7 Charges
8.3----- Conformance with Law
8.4----- Our Right to Initiate Changes
8.5----- Prohibited Amendments
SECTION 9 - GENERAL PROVISIONS 16
9.1----- Ownership
9.2----- Entire Contract
9.3----- Benefit Determinations
9.4----- Representations and Warranties
9.5------Contractholder Representative; Misstatement of Data
9.6----- Requirement for Writing
9.7----- Quarterly Statement of Account Value
9.8----- Conformity with Law
9.9----- Sex and Number
9.10---- Facility of Payment
9.11---- Voting
9.12---- Acceptance of New Contributions
9.13-----Termination of Contract
9.14---- Nonforfeitability and Nontransferability
9.15---- AUL's Annual Statement
9.16---- AUL's Annual Meeting
TABLE OF GUARANTEED IMMEDIATE ANNUITIES 19
P-GB-C-IRAMFVA(NBR).2
SECTION 1 - DEFINITIONS
1.1 "Account Value" for your Participant Account as of a date is:
(a) your account's balance in the Fixed Interest Account (FIA) on that
date; plus
(b) the value of your account's Accumulation Units in each Investment
Account on that date.
1.2 "Accumulation Unit" is a valuation device used to measure increases in and
decreases to the value of any Investment Account.
1.3 "Annuity Commencement Date" is the first day of the month an annuity begins
under the Contract. This date may not be later than the date your periodic
benefits are required to commence under the Code.
1.4 "Business Day" is any day both the New York Stock Exchange and our Home
Office are open for the general conduct of business.
1.5 "Code" means the Internal Revenue Code of 1986, as amended, and any
applicable regulations or rulings thereunder.
1.6 The "First Contract Anniversary" is listed on the Contract face page.
Subsequent "Contract Anniversaries" are on the same day of each subsequent
year.
1.7 "Contract Quarter" is each of the four successive three-month periods in a
Contract Year.
1.8 The first "Contract Year" starts on the Contract Date and ends on the day
before the First Contract Anniversary. Each subsequent Contract Year starts
on a Contract Anniversary and ends on the day before the next Contract
Anniversary.
1.9 "Contributions" are amounts paid in cash to us by the Participant or the
Contractholder, which we credit to a Participant Account. Contributions
include amounts transferred from another AUL group annuity contract. The
legal title to, and ownership of, these amounts is vested solely in the
Participant.
Contributions include "Elective Deferrals," which means, with respect to
any taxable year, any Contribution made under a salary reduction agreement.
A Contribution made under a salary reduction agreement is not treated as an
Elective Deferral if, under the salary reduction agreement, the
Contribution is made pursuant to your one-time irrevocable election at the
time of initial eligibility to participate in the agreement, or is made
pursuant to a similar arrangement involving a one-time irrevocable election
specified in Regulations issued under the Code. The Contractholder must
identify any Elective Deferrals, which will be allocated to an Elective
Deferral subaccount within your Participant Account.
When the Contract is a SIMPLE IRA, as defined in Code Section 408(p),
"Contributions" means, subject to the restrictions of the following
paragraph, amounts paid in cash to us by a Participant or by the
Contractholder, including amounts transferred to the Contract from another
SIMPLE IRA of the Participant, which are credited to a Participant Account
maintained hereunder. The legal title to, and ownership of, such amounts is
vested solely in the Participant.
P-GB-C-IRAMFVA(NBR).3
When the Contract is a SIMPLE IRA, it will accept only cash Contributions
made on behalf of the Participant pursuant to the terms of a SIMPLE IRA
Plan described in Code Section 408(p). A rollover Contribution or a
transfer of assets from another SIMPLE IRA of the Participant will also be
accepted. No other Contributions will be accepted.
1.10 "Excess Contributions" are Contributions in excess of the applicable Code
limits.
1.11 "Fixed Interest Account" or "FIA" is the portion of our general asset
account as described in Section 3, to which Contributions may be allocated
for accumulation at the Guaranteed Rates.
1.12 "Guaranteed Rates" are the guaranteed annual effective rates of interest we
credit to each Interest Pocket. A Guaranteed Rate may be modified only as
described in Section 3.3.
1.13 "Home Office" is our principal office in Indianapolis, Indiana. For
anything to be "received by AUL," it must be received at our Home Office.
1.14 "Interest Pocket" means a tracking method which associates funds deposited
into the FIA over a specific time period with a specific Guaranteed Rate,
as described in Section 3. After the guaranteed period provided in Section
3.3 has elapsed, we may consolidate two or more Interest Pockets in
conjunction with the announcement of new Guaranteed Rates.
1.15 "Investment Account" means each distinct portfolio established within our
Variable Account and identified in the Table of Investment Accounts in the
Contract. Amounts allocated to any Investment Account are invested in the
shares of the corresponding Mutual Fund or Portfolio identified in the
Table of Investment Accounts. Our "Variable Account" is a separate account
we maintain under Indiana law which is called the AUL American Unit Trust
and which is registered under the Investment Company Act of 1940 as a unit
investment trust.
1.16 "Investment Option" is the FIA or any Investment Account. We reserve the
right to provide other Investment Options under the Contract at any time.
1.17 "Mutual Fund" means any diversified, open-end, management investment
company made available by us, and listed in the Table of Investment
Accounts in the Contract.
1.18 "Participant" is any person reported by the Contractholder to us as
eligible for, and as participating in, the Contract, and for whom a
Participant Account is established.
1.19 "Participant Account" is an account under the Contract for each
Participant. Each Participant Account may have subaccounts for each type of
Contribution. We credit Contributions to Participant Accounts and
Contribution-type subaccounts as we are directed.
1.20 "Portfolio" is a portfolio established within a particular Mutual Fund, as
described in the Mutual Fund's current prospectus.
1.21 "Valuation Periods" start at the close of each Business Day and end at the
close of the next Business Day.
1.22 The "Withdrawal Charge" is a percentage of the Account Value withdrawn
under the Contract. The Withdrawal Charge will not apply to Account Values
withdrawn to provide an annuity as described in Section 6.1. The percentage
varies by the Participant Account Year in which the
P-GB-C-IRAMFVA(NBR).4
withdrawal is made. The first Participant Account Year begins on the date
when we establish a Participant Account and credit the initial Contribution
for you, and ends on the day immediately preceding the next anniversary of
such date. Each Participant Account Year thereafter begins on such an
anniversary date and ends on the day immediately preceding the next
succeeding anniversary date. The Withdrawal Charge percentage is as
follows:
During Withdrawal Charge
Participant Account Years Percentage
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
Thereafter 0%
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from your
Participant Account, exceed 9% of total Contributions allocated to your
Participant Account.
1.23 "Withdrawal Value" is your Account Value, less any Withdrawal Charge.
P-GB-C-IRAMFVA(NBR).5
SECTION 2 - ADMINISTRATION OF YOUR PARTICIPANT ACCOUNT
2.1 How Contributions Are Handled:
(a) Contributions we receive are credited to the appropriate
Contribution-type subaccounts of your Participant Account, as we are
directed in allocation instructions. The initial Contribution for you
is allocated to your Participant Account by the second Business Day
after we (1) receive the initial Contribution or, if later, (2)
receive all data necessary to complete the allocation (including data
required to establish your Participant Account, the amount of the
Contribution for you, and Investment Option elections. Subsequent
Contributions are allocated to your Participant Account on the
Business Day we (1) receive that Contribution or, if later, (2)
receive all data necessary to complete the allocation.
(b) If we do not receive the data required to establish your Participant
Account and the amount of a Contribution for you within 5 Business
Days after we first receive that Contribution, we will return that
Contribution to the contributing party unless the contributing party
consents to us retaining that Contribution until the earlier of (i)
the date we receive such data and amount and, therefore, can properly
allocate that Contribution to your Participant Account or (ii) 25 days
from the date we receive that Contribution.
(c) If we receive the data required to establish your Participant Account
and the amount of a Contribution for you, but we do not receive
Investment Option elections for you, the Contribution is allocated to
a suspense account. The suspense account earns interest at the
Guaranteed Rate for Contributions received on the same date. When we
receive all required data, amounts in the suspense account, plus
interest, are transferred to the appropriate Investment Option for
each designated Contribution- type.
(d) Your Participant Account may be allocated to Investment Options in any
increments acceptable to us. Investment Option elections remain in
effect until changed by you. A change in Investment Option elections
is made by giving us new Investment Option elections.
2.2 Amount of Contributions: Except for amounts eligible for rollover treatment
under Code Sections 402(c), 403(a)(4), 403(b)(8), or 408(d)(3),
Contributions during your taxable year (which is presumed to be a calendar
year) may not exceed the amounts described below (as adjusted by Code
Section 408(a)):
(a) If the Contract is a Simplified Employee Pension (SEP) IRA, as
described in Code Section 408(k):
(1) the lesser of $30,000 (or, if greater, 25% of the dollar
limitation in effect under Code Section 415(b)(1)(A)) or 15% of
compensation.
(2) No Contribution will be accepted under a SIMPLE plan established
by an employer pursuant to Code Section 408(p). No transfer or
rollover of funds attributable to contributions made by a
particular employer under its SIMPLE plan will be accepted from a
SIMPLE IRA (an IRA used in conjunction with a SIMPLE plan) prior
to the expiration of the 2-year period
P-GB-C-IRAMFVA(NBR).6
beginning on the date the individual first participated in that
employer's SIMPLE plan.
(b) If the Contract is a SIMPLE IRA:
(1) Except for amounts rolled over or transferred from another SIMPLE
IRA of yours, Contributions during your taxable year (which is
presumed to be a calendar year) may not exceed the amounts
allowed by Code Section 408(p) (as adjusted).
(2) If Contributions made on your behalf pursuant to a SIMPLE IRA
Plan maintained by your employer are received directly by us from
the employer, we will provide the employer with the summary
description required by Code Section 408(1)(2).
2.3 Excess Contributions: On receipt of your instructions, we will withdraw
Excess Contributions, plus gains and minus losses, from your Participant
Account and return them to you. Such instructions must state the amount to
be returned and certify that such Contributions are Excess Contributions
and that their return is permitted by the Code.
2.4 Other Refunds: Other refunds of Contributions are applied before the close
of the calendar year following the year of refund toward the payment of
future Contributions or the purchase of additional benefits.
2.5 Transfers from Other Contracts: We may require amounts transferred to a
Participant Account from other AUL group annuity contracts to be deposited
in a suspense account. We will advise the Contractholder if this limitation
applies before accepting such a transfer.
P-GB-C-IRAMFVA(NBR).7
SECTION 3 -- OPERATION OF FIXED INTEREST ACCOUNT (FIA)
3.1 Allocations to Your Participant Account: We allocate your Contributions in
the FIA based on the information we are provided.
3.2 Provision of Guaranteed Rates for Interest Pockets: At least 10 days in
advance of each calendar quarter, we will declare a Guaranteed Rate for the
Interest Pocket for that quarter. All Contributions or transfers hereunder
which are allocated to the FIA during that quarter will earn interest at
that Guaranteed Rate until that quarterly pocket matures on the second
January 1 following the quarter in which that pocket was established.
3.3 Renewal of Guaranteed Rates: Those quarterly Interest Pockets which mature
at the same time will be combined into an annual renewal Interest Pocket.
Funds associated with that annual renewal Interest Pocket will earn
interest for a full year at the Guaranteed Rate declared for that pocket. A
new Guaranteed Rate for each annual renewal Interest Pocket will be
declared at least 30 days prior to every January 1 for the 5 years
following the establishment of that pocket. An annual renewal Interest
Pocket will mature on January 1 of the sixth year following its
establishment, when it will be combined into one annual portfolio Interest
Pocket. Funds associated with that annual portfolio Interest Pocket will
earn interest for a full year at the Guaranteed Rate for that pocket, which
will be declared at least 30 days prior to every January 1.
3.4 Minimum Rate Guarantee: No Guaranteed Rate may be less than an annual
effective interest rate of 3.00%.
3.5 Allocation of Withdrawals: Withdrawals or transfers from the FIA are on a
first-in/first-out basis.
P-GB-C-IRAMFVA(NBR).8
SECTION 4 - VALUATION OF INVESTMENT ACCOUNTS
4.1 Operation of Investment Accounts: All income, gains, or losses, realized or
unrealized, from assets held in any Investment Account are credited to or
charged against the applicable Investment Account without regard to our
other income, gains, or losses. Investment Account assets are not
chargeable with liabilities arising out of any other business we may
conduct.
4.2 Valuation of Mutual Funds: The current prospectus for each Mutual Fund
describes how that Mutual Fund's assets are valued.
4.3 Accumulation Units: We credit amounts allocated to an Investment Account in
Accumulation Units. The Accumulation Unit value used is the one for the
Valuation Period when we allocate the amount to the Investment Account.
4.4 Value of Accumulation Units: We generally establish the Accumulation Unit
value for a new Investment Account at $1.00 on the date the first deposit
is made to the Investment Account. The value of an Accumulation Unit for
any later Valuation Period equals the value of an Accumulation Unit for the
immediately preceding Valuation Period times the Net Investment Factor for
the current Valuation Period. We determine the Accumulation Unit value
before giving effect to any additions, withdrawals, or transfers in the
current Valuation Period.
4.5 Determining the Net Investment Factor: We determine the Net Investment
Factor for each Investment Account by dividing (a) by (b), and then
subtracting (c), where:
(a) is:
(1) the net asset value of a Mutual Fund or Portfolio share at the
end of the current Valuation Period, plus
(2) any dividend or other distribution paid on each Mutual Fund or
Portfolio share during such Valuation Period, plus or minus
(3) any credit or charge for taxes paid or reserved by us during the
Valuation Period that we determine are attributable to the
Investment Account;
(b) is the net asset value of each Mutual Fund or Portfolio share held in
the Investment Account at the end of the prior Valuation Period; and
(c) is a daily charge factor we determine, as described in Section 7.1.
4.6 Valuing Your Participant Account: We determine your Account Value in an
Investment Account by multiplying your Accumulation Units by the
Accumulation Unit value. The Accumulation Unit value of an Investment
Account changes only on a Business Day.
P-GB-C-IRAMFVA(NBR).9
SECTION 5 - WITHDRAWALS, DEATH BENEFITS, AND TRANSFERS
5.1 Withdrawals: You may direct us to withdraw all or a portion of your
Participant Account, subject to the following provisions:
(a) If your entire Account Value is withdrawn, the amount paid equals your
Withdrawal Value, subject to any charges described in Section 7.4. In
all other instances, your Account Value is reduced by an amount
sufficient to make the payment requested and to cover the Withdrawal
Charge and any charges described in Section 7.4.
However, despite the previous paragraph, in the first Contract Year in
which your Participant Account is established, you may withdraw from
your Account up to 10% of the sum of your Account Value (determined as
of the later of the Contract Date or the Contract Anniversary
immediately preceding the request for the withdrawal) plus
Contributions made for you during that Contract Year, without
application of the Withdrawal Charge. You may also do this in the next
succeeding Contract Year. In any subsequent Contract Year, you may
withdraw up to 10% of your Account Value (determined as of the
Contract Anniversary immediately preceding the request for the
withdrawal) without application of the Withdrawal Charge.
(b) A withdrawal request is effective, and the Account Value to be applied
pursuant to this Section is determined, on the Business Day that we
receive a proper withdrawal request.
(c) We will pay any cash lump-sum to you within 7 days from the
appropriate Business Day as determined in Subsection (b) above, except
as we may be permitted to defer such payment of amounts withdrawn from
the Variable Account in accordance with appropriate provisions of the
federal securities laws. We reserve the right to defer the payment of
amounts withdrawn from the FIA for a period of up to 6 months after we
receive the withdrawal request.
(d) Withdrawals from your share of the FIA will be made on a
first-in/first-out basis under Section 3.5.
5.2 Death Benefits:
(a) Upon receipt of your beneficiary's instructions and of due proof of
your death prior to the date your Participant Account is closed, we
will apply your Account Value (subject to Section 7.4) for the purpose
of providing a death benefit. The death benefit will be paid to your
beneficiary according to the method of payment elected by your
beneficiary (unless you previously elected the method of payment).
Your beneficiary may also designate a beneficiary. This death benefit
will be payable:
(1) in a single sum or other method not provided in (2) below;
provided, however, that your entire Account Value (subject to
Section 7.4) must be paid to your beneficiary on or before
December 31 of the calendar year which contains the fifth
anniversary of your death, or
(2) as an annuity in accordance with the Annuity Options shown in
Section 6.2 over a period not to exceed your beneficiary's life
or life expectancy.
P-GB-C-IRAMFVA(NBR).10
If your beneficiary is not your surviving spouse, the annuity
must begin on or before December 31 of the calendar year
immediately following the calendar year in which you die.
If your beneficiary is your surviving spouse, your spouse may
elect to receive equal or substantially equal payments over his
or her life expectancy beginning on any date prior to the later
of (a) December 31 of the calendar year immediately following the
calendar year in which you die or (b) December 31 of the calendar
year in which you would have attained age 70 1/2. Your spouse's
election must be made no later than the earlier of December 31 of
the calendar year containing the fifth anniversary of your death
or the date distributions are required to begin under the
preceding sentence. Your surviving spouse may accelerate these
payments at any time by increasing the frequency or amount of
payments.
If your beneficiary is your surviving spouse, your spouse may
treat your Participant Account as his or her own IRA. This
election is deemed to be made if your surviving spouse makes a
regular IRA Contribution under the Contract, makes a rollover to
or from the Contract, or fails to elect any of the above three
provisions.
(b) If you die on or after your Annuity Commencement Date, any interest
remaining under the Annuity Option selected will be paid at least as
rapidly as prior to your death.
(c) The Account Value to be applied pursuant to this Section is determined
on the Business Day that we receive a proper withdrawal request (or
due proof of death, if received later).
(d) We will pay any cash lump-sum death benefit to your beneficiary within
7 days from the appropriate Business Day as determined in Subsection
(c) above, except as we may be permitted to defer such payment of
amounts withdrawn from the Variable Account in accordance with
appropriate provisions of the federal securities laws. We reserve the
right to defer the payment of amounts withdrawn from the FIA for a
period of up to 6 months after we receive the withdrawal request.
5.3 Transfers between Investment Options: You may direct us to transfer amounts
between Investment Options. Transfers are effective on the Business Day we
receive the transfer direction. Your transfer directions may be made daily
on any Business Day. We will make the transfer as requested within 7 days
from the date we receive the request, except as we may be permitted to
defer the transfer of amounts withdrawn from the Variable Account in
accordance with appropriate provisions of the federal securities laws. We
reserve the right to defer a transfer of amounts from the FIA for a period
of up to 6 months after we receive the transfer request.
However, despite the previous paragraph, once a transfer from the FIA has
been made for you, a transfer to the FIA for you is permitted only after 90
days have elapsed since the date of the last transfer from the FIA for you.
If the Contractholder makes available to Participants the FIA and the
Competing Investment Account identified in the Table of Investment Accounts
in the Contract, the 90-day transfer restriction discussed in the previous
sentence does not apply, and Section 5.4 does apply.
P-GB-C-IRAMFVA(NBR).11
5.4 Minimum Amounts: The minimum amount you may withdraw or transfer from an
Investment Option is $500 or, if less, your entire balance in that
Investment Option. If a withdrawal or transfer reduces your balance in an
Investment Option to less than $500, the entire balance is withdrawn or
transferred.
5.5 Maximum Amounts: If the Contractholder makes available to Participants the
FIA and the Competing Investment Account identified in the Table of
Investment Accounts in the Contract, no more than 20% of your FIA Account
Value on the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer may be transferred from the
FIA during any Contract Year. However, if your FIA Account Value is less
than $2,500 on the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer, the amount transferrable
from the FIA for you for that Contract Year is the minimum amount specified
in Section 5.4.
5.6 Transfers to SIMPLE IRAs: If this is a SIMPLE IRA, prior to the expiration
of the 2-year period beginning on the date you first participated in any
SIMPLE IRA Plan maintained by your employer, any rollover or transfer by
you of funds from this SIMPLE IRA must be made to another SIMPLE IRA of
yours. Any distribution of funds to you during this 2-year period may be
subject to a 25-percent additional tax if you do not roll over the amount
distributed into a SIMPLE IRA. After the expiration of this 2-year period,
you may roll over or transfer funds to any IRA of yours that is qualified
under Code Section 408(a) or (b).
P-GB-C-IRAMFVA(NBR).12
SECTION 6 - ANNUITIES
6.1 Annuity Purchases: You may withdraw all or a portion of your Account Value
(subject to Section 7.4) to provide an annuity. Such a withdrawal is not
subject to a Withdrawal Charge. On receipt of an annuity purchase request,
we transfer your entire Participant Account to a suspense account. Such
amounts remain in the suspense account until the Annuity Commencement Date,
when the full balance (including interest) is applied to purchase the
annuity.
Your annuity purchase request must specify the purpose for the annuity, the
election of an annuity option, Annuity Commencement Date, any contingent
annuitant or beneficiary, and any additional information we require. If you
or your contingent annuitant dies before the Annuity Commencement Date, the
annuity election is cancelled.
The minimum amount which you may apply to purchase an annuity is $5,000.
6.2 Annuity Options: You may elect any optional form of annuity we offer at the
time of purchase. Available annuity options always include:
(a) Life Annuity. A monthly annuity is payable as long as the annuitant
lives, and ends with the last payment before the annuitant's death.
(b) Survivorship Annuity. A monthly annuity is payable as long as the
annuitant lives. After the annuitant's death, all or a portion of the
monthly annuity is paid to the contingent annuitant as long as the
contingent annuitant lives.
No annuity may have a certain period extending beyond your life expectancy
or the joint life expectancy of you and your contingent annuitant, as
determined on your Annuity Commencement Date.
6.3 Determining Annuity Amount: We compute the annuity amount using the factors
reflected in the Table of Guaranteed Immediate Annuities attached to the
Contract. However, if our current single premium, nonparticipating,
immediate annuity rates for this class of group annuity contracts produces
a higher monthly annuity than the Table of Guaranteed Immediate Annuities,
then that more favorable annuity rate is applied.
6.4 Proof of Age and Survival; Minimum Payments: We may require proof of any
annuitant's or contingent annuitant's date of birth before commencing
payments under any annuity. We may also require proof that an annuitant or
contingent annuitant is living before making any annuity payment. If a
monthly annuity is less than our current established minimum payment, we
may make payments on a less-frequent basis or in a single sum.
6.5 Annuity Certificates: We issue to each person for whom an annuity is
purchased a certificate setting forth the annuity's amount and terms.
P-GB-C-IRAMFVA(NBR).13
SECTION 7 - MORTALITY AND EXPENSE RISK CHARGES
AND ADMINISTRATIVE CHARGES
7.1 Investment Account Mortality and Expense Risk Charges: We deduct from the
average daily net assets of each Investment Account the daily equivalent of
an annual combined mortality risk charge and expense risk charge of 1.25%.
This charge is part of the Net Investment Factor, described in Section 4.5.
7.2 Administrative Charge: We deduct an administrative charge per Contract
Quarter equal to the lesser of $7.50 or 0.5% of your Account Value on the
last day of each Contract Quarter from your Participant Account if it
exists on that day for as long as your Participant Account is in effect.
This charge is to be prorated among each subaccount of your Participant
Account which corresponds to each Investment Option utilized by you under
the Contract. If your entire balance is withdrawn pursuant to the Contract,
the administrative charge attributable to the period of time which has
elapsed since the first day of the Contract Quarter in which the withdrawal
of funds is made is not deducted from the amount withdrawn.
There is no charge for you for any Contract Quarter in which your Account
Value on the last day of that quarter is greater than $25,000.
7.3 Mutual Fund or Portfolio Expense: A Mutual Fund or Portfolio deducts an
investment advisory fee and other expenses from its net asset value, as
described in its current prospectus. Amounts deducted may include
operational, organizational, and extraordinary expenses. Expenses vary from
year-to-year.
7.4 Taxes: We may deduct charges equal to any premium tax we incur from the
balance applied to purchase an annuity or at such other time as we incur
premium taxes. We may also deduct from Investment Accounts reasonable
charges for federal, state, or local income taxes we incur that are
attributable to such Investment Accounts.
P-GB-C-IRAMFVA(NBR).14
SECTION 8 - CONTRACT MODIFICATIONS
8.1 Mutual Amendment: The Contractholder and we may agree to any change or
amendment to the Contract without the consent of any other person or
entity. However, no such change or amendment shall adversely affect the
benefits to be provided by Contributions made prior to the effective date
of the change or amendment unless the consent of all Participants is
obtained. The Contract cannot be modified or amended, nor can any provision
or condition be waived, except by our written agreement, signed by a
corporate officer. Such authority may be delegated only by a written
agreement signed by our corporate officer.
8.2 Rates and Section 7 Charges: We may announce new Guaranteed Rates, as
described in Sections 3.2 and 3.3 (including the consolidation of existing
Interest Pockets). However, as provided in Sections 3.2 and 3.3, we may not
change the declared Guaranteed Rate applicable to an established Interest
Pocket during the guaranteed period. We may also modify the charge levels
in Section 7, using the procedures of Section 8.4.
8.3 Conformance with Law: We may amend the Contract at any time, without the
Contractholder's consent, or that of any other person or entity, if the
amendment is reasonably needed to comply with, or give the Contractholder
or you the benefit of, any provisions of federal or state laws. Any such
amendment will be delivered to the Contractholder prior to its effective
date.
8.4 Our Right to Initiate Changes: In addition to those amendments permitted by
Sections 8.2 and 8.3, we may initiate an additional provision or
modification of any other provision of the Contract (including the addition
of a charge for transfers between Investment Options) by giving the
Contractholder 60 days notice of such modification. Any such modification
is effective without the Contractholder's affirmative assent.
8.5 Prohibited Amendments:
(a) Despite our right to initiate changes under Section 8.4, we may not
initiate changes to the minimum Guaranteed Rate specified in Section
3.4, our obligation to set Guaranteed Rates for the period of time
specified in Sections 3.2 and 3.3, or the Table of Guaranteed
Immediate Annuities.
(b) No modification to the Contract may change the terms of a previously
purchased annuity or reduce any interest guarantee applicable to your
FIA balances on the modification's effective date.
P-GB-C-IRAMFVA(NBR).15
SECTION 9 - GENERAL PROVISIONS
9.1 Ownership: The Contractholder owns the Contract. All amounts received or
credited under the Contract become our property. We are obligated to make
only the payments or distributions specified in the Contract.
9.2 Entire Contract: The Contract is for the exclusive benefit of the
Participants and their beneficiaries. The Contract and the Contractholder's
application is the entire agreement between the Contractholder and us. We
are not a party to, nor bound by, a plan, trust, custodial agreement, or
other agreement, or any amendment or modification to any of the same. We
are not a fiduciary under the Contract or under any such plan, trust,
custodial agreement, or other agreement.
9.3 Benefit Determinations: You must furnish us whatever information is
necessary to establish the eligibility for and amount of annuity or other
benefit due. We rely solely on your instructions and certifications with
respect to your benefits. You are fully responsible for determining the
existence or amount of Excess Contributions (plus gains or minus losses
thereon), or that returns of Excess Contributions are permitted by the
Code.
We may rely on your statements or representations in honoring any benefit
payment request.
9.4 Representations and Warranties: The Contractholder and we mutually
represent and warrant, each to the other, that each is fully authorized to
enter into the Contract and that the Contract is a valid and binding
obligation and that the execution of the Contract does not violate any law,
regulation, judgment, or order by which the representing party is bound. In
addition, the Contractholder represents and warrants to us that:
(a) its plan is a SEP IRA plan or a SIMPLE IRA plan under the Code;
(b) the execution of the Contract has been authorized by the plan
fiduciary responsible for plan investment decisions; and
(c) the execution or performance of the Contract does not violate any plan
provision or any law, regulation, judgment, or order by which the plan
is bound.
We do not make any representation or warranty regarding the federal, state,
or local tax status of the Contract, any Participant Account, or any
transaction involving the Contract.
9.5 Contractholder Representative; Misstatement of Data: The Contractholder may
designate a representative to act on its behalf under the Contract. We may
rely on any information the Contractholder, its designee, or you furnish.
We need not inquire as to the accuracy or completeness of such information.
If any essential data pertaining to any person has been omitted or
misstated, including, but not limited to, a misstatement of an annuitant's
or contingent annuitant's age, we will make an equitable adjustment to
provide the annuity or other benefit determined using correct data.
9.6 Requirement for Writing: When reference is made to you, the Contractholder,
or its designee making a request or giving notice, instruction, or
direction, such request, notice, instruction, or direction must be in
writing, or in a form otherwise acceptable to us, and is effective when we
receive it.
P-GB-C-IRAMFVA(NBR).16
9.7 Quarterly Statement of Account Value: Reasonably promptly after the end of
each Contract Quarter, we will prepare a statement of your Account Value.
9.8 Conformity with Law: Any benefit payable under the Contract will not be
less than the minimum benefit required by the insurance laws of the state
in which the Contract is delivered. Language in the Contract referring to
state or federal tax, securities, or other statutes or rules do not
incorporate within the Contract any such statutes or rules.
9.9 Sex and Number: Whenever the context so requires, the plural includes the
singular, the singular the plural, and the masculine the feminine.
9.10 Facility of Payment: If you, your contingent annuitant, or your beneficiary
are legally incapable of giving a valid receipt for any payment, and no
guardian has been appointed, we may pay the person or persons who have
assumed the care and principal support of you, your contingent annuitant,
or your beneficiary. We may also pay your designee. Any such payment fully
discharges us to the extent of such payment.
9.11 Voting: We own all Mutual Fund or Portfolio shares held in an Investment
Account. We exercise the voting rights of such shares at all shareholder
meetings on all matters requiring shareholder voting under the Investment
Company Act of 1940 or other applicable laws. Our vote reflects
instructions received from persons having the voting interest in the
shares, as follows:
(a) Participants have the voting interest under the Contract. Unless
otherwise required by applicable law, the number of Mutual Fund or
Portfolio shares for which we may receive voting instructions is
determined by dividing the aggregate Account Values in the affected
Investment Account by the net asset value of the Mutual Fund or
Portfolio shares. Fractional votes are counted. Our determination is
made as of the date used by the Mutual Fund or Portfolio to determine
shareholders eligible to vote.
(b) We vote shares proportionally, to reflect the voting instructions we
receive in a timely manner from Participants and from all other
contractholders. If no timely voting instructions are received from
Participants, we vote shares proportionally, to reflect the voting
instructions we received in a timely manner for all other contracts.
To the extent permitted by applicable law, we may vote shares in our own
right or may modify the above procedures to reflect changes in the law or
its interpretation.
We will provide prospectuses and other reports as required by applicable
federal law.
9.12 Acceptance of New Contributions: We may refuse to accept new Contributions
at any time.
9.13 Termination of Contract: The Contract terminates automatically if no
amounts remain in either the FIA or any Investment Account. However, upon
written notice to us, the Contractholder may stop making Contributions at
any time.
9.14 Nonforfeitability and Nontransferability: Your entire Withdrawal Value is
nonforfeitable at all times. No sum payable under the Contract with respect
to you may be sold, assigned, discounted, or pledged as collateral for a
loan or as security for the performance of an obligation or for any other
purpose to any person or entity other than AUL. In addition, to
P-GB-C-IRAMFVA(NBR).17
the extent permitted by law, no such sum will in any way be subject to
legal process requiring the payment of any claim against the payee.
9.15 AUL's Annual Statement: No provision of the Contract controls, determines,
or modifies any AUL annual statement made to any insurance department,
contractholder, regulatory body, or other person. Nor does anything in such
annual statement control, determine, or modify the provisions of the
Contract.
9.16 AUL's Annual Meeting: Unless otherwise notified, our regular annual meeting
is held at our Home Office on the third Thursday in February at 10 a.m.
Elections for directors are held at such annual meeting.
P-GB-C-IRAMFVA(NBR).18
TABLE OF GUARANTEED IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
10-YEAR CERTAIN
ADJUSTED AGE LIFE ANNUITY AND LIFE ANNUITY
45 2.9690 2.9632
46 3.0190 3.0124
47 3.0715 3.0641
48 3.1269 3.1185
49 3.1852 3.1756
50 3.2466 3.2357
51 3.3115 3.2988
52 3.3800 3.3653
53 3.4525 3.4352
54 3.5291 3.5088
55 3.6104 3.5863
56 3.6966 3.6678
57 3.7881 3.7536
58 3.8850 3.8437
59 3.9877 3.9382
60 4.0964 4.0374
61 4.2115 4.1414
62 4.3334 4.2505
63 4.4626 4.3650
64 4.5994 4.4850
65 4.7442 4.6108
66 4.8977 4.7425
67 5.0608 4.8804
68 5.2347 5.0250
69 5.4213 5.1766
70 5.6229 5.3356
71 5.8412 5.5020
72 6.0778 5.6755
73 6.3336 5.8552
74 6.6097 6.0404
75 6.9084 6.2302
Adjusted Age = Actual Age at Settlement (in years and completed months) less the
following number of months: [.6 times (Birth Year - 1915)] rounded to the
nearest integer.
Guaranteed purchase rates are 96% of the net single premium for the benefit
provided based on the unprojected 1994 Group Annuity Reserving Table for females
with interest at 2%.
P-GB-C-IRAMFVA(NBR).19