Document/Exhibit Description Pages Size
1: 485BPOS Registration Statement With Exhibits 6 32K
2: EX-99.A Exhibit A 2 18K
3: EX-99.B Exhibit B 2 13K
4: EX-99.C.(1) Exhibit C(1) 23 93K
5: EX-99.C.(2) Exhibit C(2) 23 92K
6: EX-99.C.(3) Exhibit C(3) 6 28K
13: EX-99.D(7) Exhibit D(7) 5 15K
7: EX-99.D.(1) Exhibit D(1) 7± 28K
8: EX-99.D.(2) Exhibit D(2) 4 24K
9: EX-99.D.(3) Exhibit D(3) 5 14K
10: EX-99.D.(4) Exhibit D(4) 3 12K
11: EX-99.D.(5) Exhibit D(5) 5 14K
12: EX-99.D.(6) Exhibit D(6) 2 10K
14: EX-99.E(1) Exhibit E(1) 6 27K
15: EX-99.E.(2) Exhibit E(2) 2 10K
16: EX-99.F Exhibit F 10± 36K
EXHIBIT C(2)
Form of Certificate of Group Variable Universal Life (2VUL1294NY-C)
American International Life Assurance
Company of New York
80 Pine Street
New York, New York 10270
A capital stock company
We agree to pay the Insurance Benefit of this Certificate and to provide its
other benefits and rights in accordance with its provisions.
Flexible Premium Variable Life Insurance Certificate
This is a flexible premium variable life insurance certificate. You can,
within limits: o increase or decrease the Face Amount; o pay Premium at
any time and in any amount; o change the Death Benefit Option; o change
the allocation of Net Premiums among Your investment options; and o
transfer amounts among Your investment options.
All of these rights and benefits are subject to the terms and conditions of this
Certificate. All requests for Certificate changes are subject to Our approval
and may require evidence of insurability.
We will put Your Net Premiums paid prior to the Allocation Date into the Money
Market Subaccount. On the Allocation Date all such Premiums will then be
allocated in accordance with directions contained in Your Certificate
application.
The portion of Your Certificate Account Value that is in a Subaccount will vary
up or down depending on the unit value of such Subaccount, which in turn depends
on the investment performance of the corresponding portfolio of a designated
investment company. There are no minimum guarantees as to such portion of Your
Certificate Account Value.
The portion of Your Certificate Account Value that is in Our Guaranteed Account
will accumulate, after deductions, at rates of interest We determine. Such rates
will not be less than 4% per year, compounded annually.
The amount and duration of the Death Benefit may be variable or fixed as
described in this Certificate.
Please Read This Certificate With Care. A Table Of Contents is on Page 2. A
Certificate summary is also on Page 2.
Right To Examine This Certificate. You may examine this Certificate and if for
any reason You are not satisfied with it You may cancel it by returning this
Certificate with a written request for cancellation to Our Administrative Office
no later than the later of (a) 10 days after You receive it; or (b) 45 days
after the application was signed. If You do this, We will refund the Premiums
that were paid on this Certificate.
Elizabeth M. Tuck R J O'Connell
/s/ Elizabeth M. Tuck /s/ R J O'Connell
Secretary President
CONTENTS
Certificate Summary 2
Certificate Information 3
Table Of Expense Charges 4
Table Of Maximum Surrender Charges 5
Table Of Guaranteed Maximum Cost Of Insurance Rates 6
Definitions 7
Certificate Owner And Beneficiary Provisions 9
The Benefits We Pay 9
Changing The Face Amount Or The Death Benefit Option 11
The Premiums You Pay 12
Your Certificate Account Value And How It Works 13
Your Investment Options 14
Your Certificate Account Value 15
The Cash Surrender Value Of This Certificate 16
How A Loan Can Be Made 18
Our Separate Account 19
Our Annual Report To You 19
How Benefits Are Paid 20
Other Important Information 20
A copy of the application for this Certificate and any additional benefit riders
are at the back of this Certificate.
CERTIFICATE SUMMARY
The Premiums You pay into this Flexible Premium Variable Life Insurance
Certificate, after deductions are made in accordance with the Table Of
Expense Charges in the Certificate Information section, are put into Your
Certificate Account Value. Amounts in Your Certificate Account Value are
allocated at Your direction to one or more Subaccounts and to Our
Guaranteed Account.
The Subaccounts invest in shares of registered investment companies whose
value is subject to market fluctuations and investment risk. There is no
guarantee of principal or investment experience.
The Guaranteed Account earns interest at rates We declare in advance. The
rates are guaranteed not to be less than 4% per year, compounded annually.
The principal, after deductions, is also guaranteed.
The duration of life insurance coverage depends upon the Net Cash Surrender
Value.
If Death Benefit Option I is in effect, the Death Benefit is the Face
Amount, and the amount of the Death Benefit is fixed except when it is a
percentage of Your Certificate Account Value. If Death Benefit Option II is
in effect, the Death Benefit is the Face Amount plus Your Certificate
Account Value. The amount of the Death Benefit under Death Benefit Option
II is variable.
We make monthly deductions from Your Certificate Account Value to cover the
cost of the benefits provided by this Certificate. If You give up this
Certificate for its Net Cash Surrender Value, make a Partial Surrender,
reduce the Face Amount, or if this Certificate ends without value at the
end of the Grace Period, We may deduct a surrender charge from Your
Certificate Account Value.
This is only a summary of what this Certificate provides. You should read
the entire Certificate carefully. Its terms govern Your rights and Our
obligations.
CERTIFICATE INFORMATION
GROUP POLICYHOLDER [Direct Consumer's Group Trust Dated April 8, 1996]
GROUP POLICY NUMBER 12345
CERTIFICATE OWNER [JOHN DOE]
CERTIFICATE NUMBER [54321]
CERTIFICATE DATE [JANUARY 1, 1998]
ISSUE DATE [JANUARY 1, 1998]
INSURED PERSON [JOHN DOE]
AGE [35] SEX [MALE] [N O N S M O K E R]
FACE AMOUNT [$100,000]
DEATH BENEFIT OPTION [I] (SEE PAGE 10)
BENEFICIARY [JANE DOE]
INSURED PERSON'S
STATE OF RESIDENCE [NEW YORK]
SEPARATE ACCOUNT [VARIABLE ACCOUNT B]
PARTIAL SURRENDER MINIMUM PARTIAL SURRENDER IS $500
CERTIFICATE LOAN MINIMUM LOAN IS $500
CERTIFICATE LOAN
INTEREST RATE 8%
TRANSFER MINIMUM TRANSFER AMOUNT IS $250
AN INITIAL PREMIUM OF [$800.00] IS DUE ON OR BEFORE DELIVERY OF THE CERTIFICATE.
[THE PLANNED PERIODIC PREMIUM OF [$800.00] IS PAYABLE [QUARTERLY]]. THE MINIMUM
PREMIUM WHICH WE WILL ACCEPT AT ANY TIME IS $50.
THE LOANED PORTION OF YOUR CERTIFICATE ACCOUNT VALUE IS ELIGIBLE FOR INTEREST AT
6%. HOWEVER, AT THE BEGINNING OF THE 11TH CERTIFICATE YEAR AND THEREAFTER, THE
PORTION OF THE LOAN WHICH IS CONSIDERED PREFERRED WILL BE ELIGIBLE FOR INTEREST
AT 8%. THIS IS DESCRIBED IN THE PROVISIONS ENTITLED YOUR VALUE IN OUR GUARANTEED
ACCOUNT ON PAGE 16 AND PREFERRED LOAN VALUE ON PAGE 18.
ANY ADDITIONAL BENEFIT ARE RIDERS LISTED BELOW.
THE PREMIUM SHOWN ABOVE MAY NOT BE SUFFICIENT TO CONTINUE THE CERTIFICATE AND
LIFE INSURANCE COVERAGE TO THE MATURITY DATE, WHICH IS THE CERTIFICATE
ANNIVERSARY FOLLOWING THE INSURED PERSON'S ATTAINED AGE 99. THE PERIOD FOR WHICH
THE CERTIFICATE AND COVERAGE WILL CONTINUE IN FORCE WILL DEPEND ON: (1) THE
TIMING, FREQUENCY, AND AMOUNT OF PREMIUM; (2) CHANGES IN THE FACE AMOUNT AND THE
DEATH BENEFIT OPTIONS; (3) CHANGES IN THE INTEREST RATES CREDITED TO OUR
GUARANTEED ACCOUNT AND IN THE INVESTMENT PERFORMANCE OF THE SUBACCOUNTS; (4)
CHANGES IN THE MONTHLY COST OF INSURANCE DEDUCTIONS FROM THE CERTIFICATE ACCOUNT
VALUE FOR THIS CERTIFICATE AND ANY BENEFITS PROVIDED BY RIDERS TO THIS
CERTIFICATE; AND (5) LOAN AND PARTIAL SURRENDER ACTIVITY.
CERTIFICATE INFORMATION CONTINUED
TABLE OF EXPENSE CHARGES
DEDUCTIONS FROM PREMIUMS:
CHARGE FOR APPLICABLE TAXES (OTHER THAN TAXES DISCUSSED ON PAGE 15):
2.00% OF EACH PREMIUM PAYMENT. THIS AMOUNT IS SUBTRACTED FROM EACH PREMIUM
PAYMENT. WE RESERVE THE RIGHT TO CHANGE THIS PERCENTAGE TO CONFORM TO
CHANGES IN THE LAW OR IF THE OWNER CHANGES PLACE OF RESIDENCE.
PREMIUM CHARGE.
5.00% OF EACH PREMIUM. WE RESERVE THE RIGHT TO CHANGE THIS CHARGE BUT IT
WILL NEVER BE MORE THAN 5.00%.
DEDUCTIONS FROM YOUR CERTIFICATE ACCOUNT VALUE:
ADDITIONAL FIRST YEAR ADMINISTRATIVE CHARGE:
$20.00 IS DEDUCTED AT THE BEGINNING OF EACH CERTIFICATE MONTH DURING THE
FIRST CERTIFICATE YEAR. WE RESERVE THE RIGHT TO CHANGE THIS CHARGE BUT IT
WILL NEVER BE MORE THAN $25.00 A MONTH.
ADMINISTRATIVE CHARGE:
$7.50 IS DEDUCTED AT THE BEGINNING OF EACH CERTIFICATE MONTH DURING EACH
CERTIFICATE YEAR. WE RESERVE THE RIGHT TO CHANGE THIS CHARGE BUT IT WILL
NEVER BE MORE THAN $15.00 A MONTH. CHANGES WILL BE AS DESCRIBED IN "CHANGES
IN CERTIFICATE COST FACTORS" ON PAGE 20.
PARTIAL SURRENDER;
$25.00 IS DEDUCTED WHENEVER THERE IS A PARTIAL SURRENDER. THERE ALSO MAY BE
A PARTIAL SURRENDER CHARGE AS DESCRIBED IN "PARTIAL SURRENDER" ON PAGE 17.
INCREASES IN FACE AMOUNT THAT YOU ASK FOR:
$20.00 A MONTH IS DEDUCTED FOR THE 12 MONTHS IMMEDIATELY FOLLOWING THE
EFFECTIVE DATE OF THE INCREASE. WE RESERVE THE RIGHT TO CHANGE THIS
CHARGE BUT IT WILL NEVER BE MORE THAN $25.00 A MONTH.
TRANSFERS:
WE RESERVE THE RIGHT TO DEDUCT UP TO $25.00 FOR EACH TRANSFER OF AMOUNTS
AMONG YOUR INVESTMENT OPTIONS. HOWEVER WE WILL NOT MAKE A CHARGE FOR THE
FIRST 6 TRANSFERS IN ANY CERTIFICATE YEAR.
CERTIFICATE INFORMATION CONTINUED
TABLE OF MAXIMUM SURRENDER CHARGES
CERTIFICATE MINIMUM CERTIFICATE MINIMUM
YEAR FACTOR CHARGE YEAR FACTOR CHARGE
1 100% $1,086.94 9 60% $652.16
2 100% $1,086.94 10 50% $543.47
3 100% $1,086.94 11 40% $434.78
4 100% $1,086.94 12 30% $326.08
5 100% $1,086.94 13 20% $217.39
6 90% $978.25 14 10% $108.69
7 80% $869.55 15 0% $0.00
8 70% $760.86
A SURRENDER CHARGE WILL BE SUBTRACTED FROM YOUR CERTIFICATE ACCOUNT VALUE IF
THIS CERTIFICATE IS SURRENDERED FOR ITS NET CASH SURRENDER VALUE OR IF THIS
CERTIFICATE TERMINATES WITHIN THE FIRST FOURTEEN CERTIFICATE YEARS. A PARTIAL
SURRENDER CHARGE WILL ALSO BE SUBTRACTED FROM YOUR CERTIFICATE ACCOUNT VALUE IF
YOU MAKE A PARTIAL SURRENDER OF THIS CERTIFICATE. THE MAXIMUM CHARGE AT ANY TIME
IN A CERTIFICATE YEAR IS EQUAL TO THE LESSER OF (1) THE CHARGE SHOWN IN THE
TABLE ABOVE FOR THAT YEAR; OR (2) AN AMOUNT EQUAL TO (A) TIMES (B) WHERE (A) IS
25% OF THE FIRST $1,025 IN PREMIUM RECEIVED DURING THE FIRST CERTIFICATE YEAR,
PLUS 4% OF ALL OTHER PREMIUM RECEIVED DURING THE FIRST CERTIFICATE YEAR; AND (B)
IS THE FACTOR IN THE TABLE ABOVE FOR THAT YEAR.
THIS TABLE ASSUMES NO FACE AMOUNT INCREASES. SEE PAGE 17 FOR A DESCRIPTION OF
SURRENDER CHARGES FOR FACE AMOUNT INCREASES.
IF THE FACE AMOUNT IS REDUCED WITHIN THE FIRST FOURTEEN CERTIFICATE YEARS, A PRO
RATA SHARE OF THE APPLICABLE SURRENDER CHARGE AT THAT TIME MAY BE DEDUCTED FROM
YOUR CERTIFICATE ACCOUNT VALUE. SEE PAGE 17 FOR A DESCRIPTION OF THE PRO RATA
SURRENDER CHARGE.
THE PREMIUM SHOWN ABOVE MAY NOT BE SUFFICIENT TO CONTINUE THE CERTIFICATE AND
LIFE INSURANCE COVERAGE TO THE MATURITY DATE, WHICH IS THE CERTIFICATE
ANNIVERSARY FOLLOWING THE INSURED PERSON'S ATTAINED AGE 99. THE PERIOD FOR WHICH
THE CERTIFICATE AND COVERAGE WILL CONTINUE IN FORCE WILL DEPEND ON: (1) THE
TIMING, FREQUENCY, AND AMOUNT OF PREMIUM; (2) CHANGES IN THE FACE AMOUNT AND THE
DEATH BENEFIT OPTIONS; (3) CHANGES IN THE INTEREST RATES CREDITED TO OUR
GUARANTEED ACCOUNT AND IN THE INVESTMENT PERFORMANCE OF THE SUBACCOUNTS; (4)
CHANGES IN THE MONTHLY COST OF INSURANCE DEDUCTIONS FROM THE CERTIFICATE ACCOUNT
VALUE FOR THIS CERTIFICATE AND ANY BENEFITS PROVIDED BY RIDERS TO THIS
CERTIFICATE; AND (5) LOAN AND PARTIAL SURRENDER ACTIVITY.
CERTIFICATE INFORMATION CONTINUED
TABLE OF GUARANTEED MAXIMUM COST OF INSURANCE RATES
GUARANTEED MAXIMUM MONTHLY RATES PER $1,000
OF NET AMOUNT AT RISK (SEE PAGE 13)
Attained Monthly Attained Monthly
Age Rate Age Rate
-------- -------- -------- --------
35 0.14419 68 2.49957
36 0.15169 69 2.75591
37 0.16169 70 3.04592
38 0.17253 71 3.37720
39 0.18420 72 3.75992
40 0.19837 73 4.19334
41 0.21338 74 4.67004
42 0.22922 75 5.18003
43 0.24673 76 5.71919
44 0.26590 77 6.28340
45 0.28758 78 6.87612
46 0.31093 79 7.51607
47 0.33595 80 8.22375
48 0.36347 81 9.01810
49 0.39349 82 9.91569
50 0.42768 83 10.91280
51 0.46688 84 11.99040
52 0.51193 85 13.12418
53 0.56365 86 14.29994
54 0.62122 87 15.49991
55 0.68547 88 16.71910
56 0.75557 89 17.97489
57 0.82985 90 19.28574
58 0.91250 91 20.68243
59 1.00518 92 22.21791
60 1.10873 93 24.04369
61 1.22400 94 26.50346
62 1.35684 95 30.20740
63 1.50727 96 36.35803
64 1.67447 97 47.21180
65 1.85761 98 66.20701
66 2.05588 99 90.90909
67 2.26847
DEFINITIONS
We, Our, Us. American International Life Assurance Company of New York.
Administrative Office. 80 Pine Street, New York, NY 10005.
Allocation Date. The first business day following the completion of the Right To
Examine This Certificate period.
Attained Age. The Insured Person's age on the Certificate Date plus the number
of full years since the Certificate Date.
Beneficiary. The person(s) who is entitled to the Insurance Benefit of this
Certificate.
Cash Surrender Value. Certificate Account Value less any applicable surrender
charge that would be deducted upon surrender. See page 5.
Certificate. This Flexible Premium Variable Life Insurance contract between
American International Life Assurance Company of New York and You.
Certificate Account Value. The total amounts in the accounts credited to a
Certificate. The Certificate Account Value is described on page 15.
Certificate Anniversary. An anniversary of the Certificate Date.
Certificate Date. The first date as of which We have received the initial
Premium and an application in good order. If a Certificate is issued, insurance
is effective as of the Certificate Date.
Certificate Loan Account. The portion of the Certificate Account Value held in
the Guaranteed Account as collateral for Certificate loans.
Certificate Month. The month commencing with the Certificate Date and ending on
the day before the first Monthly Anniversary, or any following month commencing
with a Monthly Anniversary and ending on the day before the next Monthly
Anniversary.
Certificate Year. The year commencing with the Certificate Date and ending on
the day before the first Certificate Anniversary, or any following year
commencing with a Certificate Anniversary and ending on the day before the next
Certificate Anniversary.
Death Benefit. The amount of money payable to the Beneficiary if the Insured
Person dies while the Certificate is in force. The Death Benefit is described on
page 10.
Face Amount. The amount of insurance You have specified and from which the death
benefit will be determined. The initial Face Amount is shown in the Certificate
Information section.
Grace Period. The period of time following a Monthly Anniversary during which
this Certificate will continue in force while the Net Cash Surrender Value is
not sufficient to cover the total monthly deduction then due.
Guaranteed Account. An account within the general account which consists of all
of Our assets other than the assets of the Separate Account and any of Our other
separate accounts.
Insured Person. The person whose life is covered by the Certificate.
Issue Date. The date the Certificate is issued. It may be a later date than the
Certificate Date if the initial Premium is received at Our Administrative Office
and invested before underwriting has been completed. Once issued, Certificate
coverage is retroactive to the Certificate Date. The Issue Date is used to
measure contestability periods. See page 20.
Maturity Date. The Certificate Anniversary following the Insured Person's
attained age 99.
Monthly Anniversary. The same day as the Certificate Date for each succeeding
month, except that, for those months not having such a day, it is the last day
of that month.
Net Cash Surrender Value. The Cash Surrender Value less any Outstanding Loan.
Net Premium. A Premium less any expense charges deducted from the Premium. See
page 4.
Outstanding Loan. The total amount of Certificate loans including both principal
and accrued interest.
Owner, You, Your. The person who purchased this Certificate as shown in the
application, unless later changed. The Owner may be someone other than the
Insured Person.
Planned Periodic Premium. The amount of Premium You have selected to pay at the
frequency shown in the Certificate Information section.
Premium. The total consideration paid by you in exchange for our obligations
under this Certificate. The initial Premium is due on or before delivery of this
Certificate.
Separate Account. Variable Account B, a separate investment account of American
International Life Assurance Company of New York.
Subaccount. A division of the Separate Account established to invest in a
particular fund and available for investment under the Certificate.
Valuation Date. Each day the New York Stock Exchange is open for business.
Valuation Period. A period commencing with the close of business on the New York
Stock Exchange on any particular day and ending at the close of business on the
New York Stock Exchange for the next succeeding Valuation Date.
CERTIFICATEOWNER AND BENEFICIARY PROVISIONS
Owner. The Owner of this Certificate is the Insured Person unless otherwise
stated in the application, or later changed.
As the Owner, You are entitled to exercise all the rights of this Certificate
while the Insured Person is living. To exercise a right, You do not need the
consent of anyone who has only a conditional or future ownership interest in
this Certificate.
Beneficiary. The Beneficiary is as stated in the application, unless later
changed. The Beneficiary is entitled to the Insurance Benefit of this
Certificate. One or more beneficiaries for the Insurance Benefit can be named in
the application. If more than one Beneficiary is named, they can be classed as
primary or contingent. If two or more persons are named in a class, their shares
in the benefit can be stated. The stated shares in the Insurance Benefit will be
paid to any primary beneficiaries who survive the Insured Person. If no primary
beneficiaries survive, payment will be made to any surviving contingent
beneficiaries. Beneficiaries who survive in the same class will share the
Insurance Benefit equally, unless You have made another arrangement with us.
If there is no designated Beneficiary living at the death of the Insured Person,
We will pay the Insurance Benefit to the Owner, if living, otherwise to the
Owner's estate.
Changing The Owner Or Beneficiary. While the Insured Person is living, You may
change the Owner or Beneficiary by written notice in a form satisfactory to us.
(You can get such a form from Our agent or by writing to Us at Our
Administrative Office.) The change will take effect on the date You sign the
notice. But, it will not apply to any payment We make or other action We take
before We receive the notice. If You change the Beneficiary, any previous
arrangement You made as to a payment option for benefits is canceled. You may
choose a payment option for the new Beneficiary in accordance with "How Benefits
Are Paid" on page 20.
Assignment. You may assign this Certificate, if We agree. In any event, We will
not be bound by an assignment unless We have received it in writing at Our
Administrative Office. Your rights and those of any other person referred to in
this Certificate will be subject to the assignment. We assume no responsibility
for the validity of an assignment. An absolute assignment will be considered as
a change of ownership to the assignee.
THE BENEFITS WE PAY
Insurance Benefit. We will pay the Insurance Benefit of this Certificate to the
Beneficiary when We receive at Our Administrative Office (1) proof satisfactory
to Us that the Insured Person died before the Maturity Date and while this
Certificate was in force; and (2) all other requirements We deem necessary
before such payment may be made. The Insurance Benefit includes the following
amounts, which We will determine as of the date of the Insured Person's death:
the Death Benefit described below;
plus any other benefits then due from riders to this Certificate;
minus any Outstanding Loan and accrued loan interest;
minus any overdue deductions from Your Certificate Account Value if the
Insured Person dies during a Grace Period.
We will add interest to the resulting amount for the period from the date of
death to the date of payment. We will compute the interest at a rate We
determine, but not less than the rate required by any applicable law. Payment of
the Insurance Benefit may also be affected by other provisions of this
Certificate. See Page 20 and 21, where We specify Our right to contest the
Certificate, the suicide exclusion, and what happens if age or sex has been
misstated. Special exclusions or limitations (if any) are listed in the
Certificate Information section.
Death Benefit. The Death Benefit will be determined under either Death Benefit
Option I or II below, whichever You have chosen and is in effect at such time.
Under either Death Benefit Option, the duration of insurance coverage depends
upon Your Net Cash Surrender Value.
Under Death Benefit Option I, the Death Benefit is the greater of the Face
Amount, or a percentage of the Certificate Account Value on the date of death
(see Table Of Applicable Percentages, below). Under this Option, the amount of
the Death Benefit is fixed, unless it is determined by such a percentage.
Under Death Benefit Option II, the Death Benefit is the greater of the Face
Amount plus the Certificate Account Value on the date of death, or a percentage
of the Certificate Account Value on the date of death (see Table Of Applicable
Percentages, below). Under this Option, the amount of the Death Benefit is
variable.
The following table is used in determining the Death Benefit under Death Benefit
Options I and II above. For Attained Ages not shown, the applicable percentages
shall decrease by a ratable portion for each full year.
Table Of Applicable Percentages
Attained Age Percentage
40 Or Less 250%
45 215%
50 185%
55 150%
60 130%
70 115%
75 through 90 105%
95 through 99 100%
Maturity Benefit. If the Insured Person is living on the Maturity Date defined
in the Certificate Information section, We will pay You Your Certificate Account
Value on that date minus any Outstanding Loan and accrued loan interest and this
Certificate will then end.
CHANGING THE FACE AMOUNT OR THE DEATH BENEFIT OPTION
At any time after the first Certificate Year while this Certificate is in force,
You may change the Death Benefit Option or the Face Amount by written request to
Us at Our Administrative Office, subject to Our approval and the following:
1. You may ask Us to increase the Face Amount if You provide evidence
satisfactory to Us of the insurability of the Insured Person. If the Face
Amount is increased, then the cost of insurance rate for the amount of the
increase will be based on the rating class of the Insured Person on the
date of the increase, and the Insured Person's sex and Attained Age. Any
increase You ask for must be at least $10,000. There is a charge for such
increase which is shown in the Certificate Information section. We will
deduct the charge from Your Certificate Account Value beginning with the
date the increase takes effect. Such deduction will be made in accordance
with the "Treatment Of Deductions" provision on Page 13. If You increase
the Face Amount, an additional fourteen year surrender charge may apply to
that increase if any or all of that increase is surrendered before the end
of the fourteenth year from the effective date of increase. We will not
allow You to increase the Face Amount more than once during any Certificate
Year, nor will We allow You to increase the Face Amount after the Insured
Person's 75th birthday.
2. You may ask Us to reduce the Face Amount but not to less than the minimum
Face Amount for which We would then issue this Certificate under Our rules.
Any such reduction in the Face Amount may not be less than $5,000 or,
during the first five Certificate Years, more than 10% of the original Face
Amount. If You do this before the end of the fourteenth year or before the
end of the fourteenth year following an increase in the Face Amount, We may
deduct from Your Certificate Account Value a pro rata share of the
applicable surrender charge (see Page 17). Reductions will first be applied
against the most recent increase in the Face Amount. They will then be
applied to prior increases in the Face Amount in the reverse order in which
such increases took place, and then to the original Face Amount. We will
not allow You to reduce the Face Amount in the first year immediately
following the effective date of an increase in the Face Amount or more than
once during any Certificate Year.
3. You can change Your Death Benefit Option. We may require that You submit
evidence, satisfactory to Us that the Insured Person is insurable. If You
ask Us to change from the Death Benefit Option I to Death Benefit Option
II, We will decrease the Face Amount by the amount in Your Certificate
Account Value on the date the change takes effect. However, We reserve the
right to decline to make such change if it would reduce the Face Amount
below the minimum Face Amount for which We would then issue this
Certificate under Our rules. If You ask Us to change from Death Benefit
Option II to Death Benefit Option I, We will increase the Face Amount by
the amount in Your Certificate Account Value on the date the change takes
effect. Such decreases and increases in the Face Amount are made so that
the Death Benefit remains the same on the date the change takes effect.
However, if Your Death Benefit is determined by a percentage multiple of
the Certificate Account Value, there may be an increase in the Death
Benefit.
4. The change will take effect at the beginning of the Certificate Month that
coincides with or next follows the date We approve Your request.
5. We reserve the right to decline to make any change that We determine would
cause this Certificate to fail to qualify as life insurance as defined in
Section 7702 of the Internal Revenue Code, as amended (see Page 20).
6. You may ask for a change by completing an Application For Change, which
You can get from Our agent or by writing to Us at Our Administrative
Office. A copy of Your Application For Change will be attached to the new
Certificate Information section that We will issue when the change is
made. The new section and the Application For Change will become a part of
this Certificate. We will require You to return this Certificate to Our
Administrative Office to make a Certificate change.
THE PREMIUMS YOU PAY
The initial Premium shown in the Certificate Information section is due on or
before delivery of this Certificate. No insurance will take effect before the
initial Premium is paid. Other Premiums may be paid at any time while this
Certificate is in force and before the Maturity Date at Our Administrative
Office.
We will send Premium notices to You for the Planned Periodic Premium shown in
the Certificate Information section. You may skip Planned Periodic Premiums.
However, this may adversely affect the duration of the Death Benefit and Your
Certificate's values.
Limits. Each Premium after the initial one must be at least the minimum Premium
amount shown in the Certificate Information section. We reserve the right to
limit the amount of any Premium which is in addition to the Planned Periodic
Premiums.
We also reserve the right not to accept Premium (in a Certificate Year) that We
determine would cause this Certificate to fail to qualify as a life insurance
contract as defined in Section 7702 of the Internal Revenue Code, as amended
(see Page 20).
Grace Period. The duration of insurance coverage depends upon the Net Cash
Surrender Value being sufficient to cover the total monthly deductions described
on Page 13. If the Net Cash Surrender Value at the beginning of any Certificate
Month is less than such deductions for that month, We will send a written notice
within 30 days to You and any assignee on Our records at last known addresses
stating that a Grace Period of 61 days has begun, starting with the beginning of
that Certificate Month. The notice will also state the amount of premium which
would increase the Net Cash Surrender Value sufficiently to cover total monthly
deductions for 3 months if no Certificate changes were made. If we do not
receive the requested premium amount before the end of the Grace Period, this
Certificate will end without value.
If the Insured Person dies during a Grace Period, We will pay the Insurance
Benefit as described on Page 9.
Reinstatement Of Your Certificate. If this Certificate has ended without value,
You may reinstate the Certificate while the Insured Person is alive if you:
1. Ask for reinstatement of the Certificate within 3 years from the end
of the Grace Period; and
2. Provide evidence of insurability satisfactory to us; and
3. Pay a Premium sufficient to cover (i) the total monthly administrative
charges from the beginning of the Grace Period to the effective date
of reinstatement; (ii) total monthly deductions for 3 months,
calculated from the effective date of reinstatement; and (iii) the
charge for applicable taxes, the Premium charge, and any increase in
surrender charges associated with this payment. We will determine the
required Premium as if no interest or investment performance were
credited to or charged against Your Certificate Account Value; and
4. Repay or reinstate any Certificate loan which existed on the date the
Certificate ended.
The effective date of the reinstatement of this Certificate will be the
beginning of the Certificate Month which coincides with or next follows the date
We approve Your request.
From the required Premium We will deduct the charge for applicable taxes and the
Premium charge. The Certificate Account Value, Certificate loan and surrender
charges applicable at the time of reinstatement will be those that were in
effect on the date this Certificate lapsed.
We will start to make monthly deductions again as of the effective date of
reinstatement. The monthly administrative charges from the beginning of the
Grace Period to the effective date of reinstatement will be deducted from the
Certificate Account Value as of the effective date of reinstatement.
YOUR CERTIFICATE ACCOUNT VALUE AND HOW IT WORKS
Premium. When We receive Your Premium, We subtract the expense charges shown in
the table in the Certificate Information section. We put the balance (the Net
Premium) into Your Certificate Account Value as of the date We receive the
Premium at Our Administrative Office, and before any deductions from Your
Certificate Account Value as of the Certificate Date if it is later than the
date of receipt. No Premiums will be applied to Your Certificate Account Value
until the full initial Premium, as shown on Your application, is received at Our
Administrative Office.
Monthly Deductions. At the beginning of each Certificate Month We make a
deduction from Your Certificate Account Value to cover monthly administrative
charges and to provide insurance coverage, subject to the Grace Period
provision. Such deduction for any Certificate Month is the sum of the following
amounts determined as of the beginning of that month:
the monthly administrative charges;
the monthly cost of insurance for the Insured Person;
the monthly cost of any benefits provided by riders to this Certificate.
The monthly cost of insurance is the sum of a) Our current monthly cost of
insurance rate times the net amount at risk at the beginning of the Certificate
Month divided by $1,000; plus b) any extra charge per $1,000 of Face Amount
shown in the Certificate Information section, times the Face Amount at the
beginning of the Certificate Month divided by $1,000. If the Death Benefit is
the Face Amount, then the net amount at risk is the Death Benefit divided by
1.0032737 minus the amount in Your Certificate Account Value at that time.
However, if the Death Benefit is a percentage of the Account Value of this
Certificate, then the net amount at risk is the Death Benefit minus the amount
in Your Certificate Account Value at that time. The cost of insurance rate is
based on the Face Amount and on the sex, Attained Age, rating class, and smoker
or non-smoker status of the Insured Person.
We will determine cost of insurance rates from time to time. Any change in the
cost of insurance rates We use will be as described in "Changes In Certificate
Cost Factors" on page 20. They will never be more than those shown in the Table
Of Guaranteed Maximum Cost Of Insurance Rates on page 6.
Other Deductions. We also make the following additional deductions from Your
Certificate Account Value as they occur:
We deduct a partial surrender charge if You make a partial surrender of
this Certificate (see page 17).
We deduct a surrender charge if, before the end of the fourteenth
Certificate Year, You give up this Certificate for its Net Cash Surrender
Value, You reduce the Face Amount, or if this Certificate terminates
without value at the end of a Grace Period (see page 17). A surrender
charge may also apply to such transactions for up to fourteen years
immediately following a Face Amount increase.
We deduct a charge if You increase the Face Amount (see page 11).
We deduct a charge for certain transfers (see page 14).
Treatment Of Deductions. We will make all deductions based on the proportion
that Your unloaned value in Our Guaranteed Account and Your values in the
Subaccounts bear to the total unloaned value in Your Certificate Account Value.
YOUR INVESTMENT OPTIONS
Allocations. This Certificate provides investment options for the amount in Your
Certificate Account Value. Amounts put into Your Certificate Account Value are
allocated to the Subaccounts and to the unloaned portion of Our Guaranteed
Account at Your direction. You specified Your initial Premium allocation
percentages in Your application for this Certificate, a copy of which is
attached to this Certificate. Unless You change them, such percentages shall
also apply to subsequent Premiums. However, any Premium which is put into Your
Certificate Account Value prior to the Allocation Date will initially be
allocated to the Money Market Subaccount. On the Allocation Date, any such
amounts then in the Money Market Subaccount will be allocated in accordance with
the directions contained in Your Certificate application.
No less than 5% of a Premium may be allocated to any one account. Allocation
percentages must be zero or a whole number not greater than 100. The sum of the
Premium allocation percentages must equal 100. You may change such allocation
percentages by written notice to Our Administrative Office. A change will take
effect on the date We receive it at Our Administrative Office except for changes
received on or prior to the Allocation Date which will take effect on the first
business day following the Allocation Date.
Transfers. At Your written request to Our Administrative Office, We will
transfer amounts from Your value in any Subaccounts to one or more other
Subaccounts or to Our Guaranteed Account. Any such transfer will take effect on
the date We receive Your written request for it at Our Administrative Office.
Once during each Certificate Year You may ask Us by written request to Our
Administrative Office to transfer an amount You specify from Your unloaned value
in Our Guaranteed Account to one or more Subaccounts. However, We will make such
a transfer only if (1) We receive Your written request at Our Administrative
Office within 30 days before or after a Certificate Anniversary; and (2) the
amount You specify is not more than the greater of 25% of Your unloaned value in
Our Guaranteed Account as of the date the transfer takes effect or the minimum
transfer amount shown on page 3. In no event will We transfer more than Your
unloaned value in Our Guaranteed Account. The transfer will take effect on the
date We receive Your written request for it at Our Administrative Office but not
before the Certificate Anniversary.
The minimum amount that We will transfer from the amount You have in a
Subaccount is the lesser of the minimum transfer amount shown on page 3 or the
amount You have in that Subaccount on that date, except as stated in the next
paragraph. The minimum amount that We will transfer from the amount You have in
Our Guaranteed Account is the lesser of the minimum transfer amount shown on
page 3 or Your unloaned value in Our Guaranteed Account as of the date the
transfer takes effect, except as stated in the next paragraph. If You do not
transfer the entire amount You have in a Subaccount or of the unloaned amount
You have in Our Guaranteed Account, the remaining value in either must be no
less than the minimum transfer amount shown on page 3.
We will waive the minimum amount limitations set forth in the immediately
preceding paragraph if the total amount being transferred on that date is at
least the minimum transfer amount shown on Page 3.
We reserve the right to make a transfer charge up to the amount shown on Page 4.
The transfer charge, if any, is deducted from the amounts transferred from the
Subaccounts and the Guaranteed Account based on the proportion that the amount
transferred from each Subaccount and the Guaranteed Account bears to the total
amount being transferred. A transfer from the Money Market Subaccount on the
Allocation Date (if applicable) will not incur a transfer charge.
YOUR CERTIFICATE ACCOUNT VALUE
The amount in Your Certificate Account Value at any time is equal to the sum of
the amounts You then have in Our Guaranteed Account and the Subaccounts under
this Certificate.
Your Value In The Subaccounts. The amount You have in a Subaccount under this
Certificate at any time is equal to the number of units this Certificate then
has in that Subaccount multiplied by the Subaccount's unit value at that time. A
Certificate transaction occurs when units of a Subaccount are either purchased
or redeemed. Amounts allocated, transferred or added to a Subaccount are used to
purchase units of that Subaccount; units are redeemed when amounts are deducted,
loaned, transferred, or fully or partially surrendered.
The number of units a Certificate has in a Subaccount at any time is equal to
the number of units purchased minus the number of units redeemed in that
Subaccount to that time. The number of units purchased or redeemed in a
Certificate transaction is equal to the dollar amount of the Certificate
transaction divided by the Subaccount's unit value on the date of the
Certificate transaction. Certificate transactions may be made on any day. The
unit value that applies to a transaction made on a business day will be the unit
value for that day. The unit value that applies to a transaction made on a
non-business day will be the unit value for the next business day.
We determine unit values for the Subaccounts at the end of each business day.
Generally, a business day is any day the New York Stock Exchange is open for
trading. A business day immediately preceded by one or more non-business
calendar days will include those non-business days as part of that business day.
For example, a business day which falls on a Monday will consist of that Monday
and the immediately preceding Saturday and Sunday.
The unit value of a Subaccount on any business day is equal to the unit value
for that Subaccount on the immediately preceding business day multiplied by the
net investment factor for that Subaccount on that business day.
The net investment factor for a Subaccount on any business day is (a) divided by
(b), minus (c), where:
(a) is the net asset value of the shares in designated investment companies that
belong to the Subaccount at the close of business on such business day before
any Certificate transaction are made on that day, plus the amount of any
dividend or capital gain distribution paid by the investment companies on that
day;
(b) is the value of the assets in that Subaccount at the close of business on
the immediately preceding business day after all transactions were made for that
day; and
(c) is a charge for each calendar day in that business day, as defined above,
corresponding to a charge not exceeding .90% yearly for mortality and expense
risks, plus any charge for that day for taxes or amounts set aside as a reserve
for taxes.
The net asset value of an investment company's shares held in each Subaccount
shall be the value reported to Us by that investment company.
Your Value In Our Guaranteed Account. The amount You have in Our Guaranteed
Account at any time is equal to the amounts allocated and transferred to it,
plus the interest credited to it, minus amounts deducted, transferred and
partially surrendered from it.
We will credit Our Guaranteed Account with interest rates We determine. An
interest rate equal to the loan interest rate will be applied to the loaned
portion in Our Guaranteed Account which is considered preferred Certificate
loan. An interest rate of not less than the Certificate loan rate minus 2% will
be credited to the loaned amount in Our Guaranteed Account which is considered
non-preferred Certificate loan. Any change in the interest rate We credit to the
unloaned amount in Our Guaranteed Account will be as described in "Changes In
Certificate Cost Factors" on Page 20. The interest rate applied to either the
loaned or unloaned amount in Our Guaranteed Account will not be less than 4% per
year, compounded annually.
At the end of each Certificate Month We will credit interest on unloaned amounts
in Our Guaranteed Account as follows:
o On amounts that remain in Our Guaranteed Account for the entire
Certificate Month from the beginning to the end of the Certificate
Month.
o On amounts allocated to Our Guaranteed Account during a Certificate
Month that are Net Premium payments or loan repayments, from the date
We receive them to the end of the Certificate Month.
o On amounts transferred to Our Guaranteed Account during a Certificate
Month from the date of the transfer to the end of the Certificate
Month.
o On amounts deducted or partially surrendered from Our Guaranteed
Account during a Certificate Month, from the beginning of the
Certificate Month, or the date such amount is allocated to the
Guaranteed Account, if later, to the date of the deduction or partial
surrender.
THE CASH SURRENDER VALUE OF THIS CERTIFICATE
Cash Surrender Value. The Cash Surrender Value on any date is equal to the
amount in Your Certificate Account Value on that date minus any surrender
charge.
Net Cash Surrender Value. The Net Cash Surrender Value is equal to the Cash
Surrender Value minus any Certificate loan and accrued loan interest. You may
give up this Certificate for its Net Cash Surrender Value at any time while the
Insured Person is living. You may do this by sending Us a written request for it
and this Certificate to Our Administrative Office. We will compute the Net Cash
Surrender Value as of the date We receive Your request for it and this
Certificate at Our Administrative Office. All insurance coverage under this
Certificate ends on such date.
Surrender Charges. If You give up this Certificate for its Net Cash Surrender
Value or if it ends without value at the end of a Grace Period before the end of
the fourteenth Certificate Year, We will subtract a surrender charge from Your
Certificate Account Value. A table of maximum surrender charges is in the
Certificate Information section.
An increase in the Face Amount will result in an additional fourteen year
surrender charge applicable to that increase. The additional surrender charge
period will begin on the effective date of the increase.
If the Face Amount is reduced before the end of the fourteenth Certificate Year
or within fourteen years immediately following a Face Amount increase, because
You asked for a reduction in the Face Amount, We will also deduct a pro rata
share of any applicable surrender charge from Your Certificate Account Value.
Reductions will first be applied against the most recent increase in the Face
Amount. They will then be applied to prior increases in the Face Amount in the
reverse order in which such increases took place, and then to the original Face
Amount.
The amount of any pro rata surrender charge will be determined by the formula
A/B x C, where:
A = the amount of the reduction in the Face Amount.
B = the Face Amount immediately prior to the reduction.
C = the total surrender charge applicable to this Certificate immediately
prior to the reduction.
If there is an increase or reduction in the surrender charge shown on page 5, We
will send You a new table showing the revised surrender charges. We have filed a
detailed statement of the method of computing surrender charges with the
insurance supervisory official of the jurisdiction in which this Certificate is
delivered.
Partial Surrender. A partial surrender will result in a reduction in the Cash
Surrender Value and in Your Certificate Account Value equal to the partial
surrender amount as well as a reduction in Your Death Benefit. If Death Benefit
Option I is in effect, the partial surrender may also result in a decrease in
the Face Amount. However, We will not allow such partial surrender if it would
reduce the Face Amount to less than the minimum amount for which We would then
issue this Certificate under Our rules. We will also not allow a partial
surrender during the first Certificate Year or during the first 12 Certificate
Months immediately following an increase in the Face Amount. After such periods
and while the Insured Person is living, You may ask for a partial surrender by
written request to Our Administrative Office no more than twice during a
Certificate Year. Your request will be subject to Our approval based on Our
rules in effect when We receive Your request, and to the minimum partial
surrender amount shown in the Certificate Information section. The partial
surrender amount deducted from the Certificate Account Value is equal to the
amount requested plus the expense charge shown in the Table Of Expense Charges
in the Certificate Information section, as well as a partial surrender charge.
We have the right to decline a request for a partial surrender.
You may tell Us how much of each partial surrender is to come from Your unloaned
value in Our Guaranteed Account and from Your values in each of the Subaccounts.
If You do not tell us, the partial surrender will be deducted from the
Certificate Account Value based on the proportion that Your unloaned value in
Our Guaranteed Account and Your values in the Subaccounts bear to the total
unloaned value in Your Certificate Account Value.
Such partial surrender and resulting reduction in the Death Benefit, in the Cash
Surrender Value and in Your Certificate Account Value will take effect on the
date We receive Your written request for it at Our Administrative Office. We
will send You the applicable new page in the Certificate Information section if
a partial surrender results in a reduction in the Face Amount. It will become a
part of this Certificate. We may require You to return this Certificate to Our
Administrative Office to make a change.
Partial Surrender Charge. The partial surrender charge is equal to the amount of
partial surrender plus the expense charge for a partial surrender divided by the
Net Cash Surrender Value immediately prior to the partial surrender and then
multiplied by the total surrender charge in effect at that time.
HOW A LOAN CAN BE MADE
Certificate Loans. After the first Certificate Year You can get a loan on this
Certificate while it has a loan value. This Certificate will be the only
security for the loan. The initial loan and each additional loan must be for at
least the minimum loan amount shown in the Certificate Information section. Any
amount on loan is part of Your Certificate Account Value (see page 16). We refer
to this as the loaned portion of Your Certificate Account Value.
Loan Value. The loan value on any date is 90% of the Net Cash Surrender Value on
that date. The amount of the loan may not be more than the loan value. If You
request an increase to an existing loan, the amount requested will be added to
the amount of the existing loan and accrued loan interest.
Your request for a Certificate loan must be in writing to Our Administrative
Office. You may tell Us how much of the requested loan is to be allocated to
Your unloaned value in Our Guaranteed Account and Your value in each Subaccount.
Such values will be determined as of the date We receive Your request. If You do
not tell Us We will allocate the loan based on the proportion that Your unloaned
value in Our Guaranteed Account and Your values in the Subaccounts bear to the
total unloaned value in Your Certificate Account Value.
The loaned portion of Your Certificate Account Value will be maintained as a
part of Our Guaranteed Account. Thus, when a loaned amount is allocated to an
Subaccount, We will redeem units of that Subaccount sufficient in value to cover
the amount of the loan so allocated and transfer that amount to Our Guaranteed
Account.
Preferred Loan Value. In Certificate Year 11 and thereafter, the loaned portion
of Your Certificate Account Value which is equal to or less than Your
Certificate Account Value minus the sum of the Premiums paid into this
Certificate will be considered preferred Certificate loan. The remaining loaned
portion of Your Certificate Account Value will be considered non-preferred
Certificate loan. These amounts will be recalculated on each Monthly
Anniversary.
Loan Interest. Interest on a loan accrues daily at the loan interest rate shown
in Certificate Information section. Loan interest is due on each Certificate
Anniversary. If the interest is not paid when due, it will be added to Your
Outstanding Loan and allocated based on the proportion that Your unloaned value
in Our Guaranteed Account and Your values in the Subaccounts bear to the total
unloaned value in Your Certificate Account Value. The unpaid interest will then
be treated as part of the loaned amount and will bear interest at the loan rate.
When unpaid loan interest is allocated to a Subaccount, We will redeem units of
that Subaccount sufficient in value to cover the amount of the interest so
allocated and transfer that amount to Our Guaranteed Account.
Loan Repayment. You may repay all or part of a Certificate loan at any time
while the Insured Person is alive and this Certificate is in force. We will
assume that any payment You make to Us while You have a loan and Your
Certificate is not in the Grace Period is a loan repayment, unless You tell Us
in writing that it is a Premium payment. A loan repayment will reduce the loaned
portion of Your Certificate Account and will then be allocated on the basis of
the Premium allocation percentages then in effect.
Failure to repay a Certificate loan or to pay loan interest will not terminate
this Certificate unless at the beginning of a Certificate Month the Net Cash
Surrender Value is less than the total monthly deduction then due. In that case,
the Grace Period provision will apply (see page 12).
A Certificate loan will have a permanent effect on Your benefits under this
Certificate even if it is repaid.
OUR SEPARATE ACCOUNT
The Separate Account is described on page 3. We established it and We maintain
it under the laws of the State of New York. Realized and unrealized gains and
losses from the assets of Our Separate Account are credited or charged against
it without regard to Our other income, gains, or losses. Assets are put in the
Separate Account to support this Certificate and other variable life insurance
policies.
The assets of the Separate Account are Our property. The portion of its assets
equal to the reserves and other Certificate liabilities with respect to the
Separate Account will not be chargeable with liabilities arising out of any
other business We conduct. We may transfer assets of the Separate Account in
excess of its reserves and other liabilities to another separate account or to
Our general account.
Subaccounts. Our Separate Account consists of Subaccounts. Each Subaccount
invests its assets in shares of a designated investment company or companies.
The Subaccounts that You chose for Your initial allocations are shown on the
application for this Certificate, a copy of which is attached to this
Certificate. We may from time to time make other Subaccounts available to you.
We will provide You with written notice of all material details including
investment objectives and all charges.
Subject to the prior approval of the insurance supervisory official of the
jurisdiction in which this Certificate was delivered, We have the right to:
1. change, add or delete designated investment companies;
2. add or remove Subaccounts; and
3. combine any two or more Subaccounts.
Consistent with state law, We have the right to:
1. register or deregister the Separate Account under the Investment Company Act
of 1940;
2. run the Separate Account under the direction of a committee, and discharge
such committee at any time;
3. restrict or eliminate any voting rights of Certificate Owners, or other
persons who have voting rights as to the Separate Account; and
4. operate the Separate Account or one or more of the Subaccounts by making
direct investments or in any other form. If We do so, We may invest the assets
of the Separate Account or one or more of the Subaccounts in any legal
investments. We will rely upon Our own or outside counsel for advice in this
regard. Also, unless otherwise required by law or regulation, an investment
advisor or any investment policy may not be changed without Our consent. If
required by law or regulation, the investment policy of a Subaccount will not be
changed by Us unless approved by the Superintendent of Insurance of the State of
New York or deemed approved in accordance with such law or regulation. If so
required, the process for getting such approval is on file with the insurance
supervisory official of the jurisdiction in which this Certificate is delivered.
If any of these changes result in a material change in the underlying
investments of a Subaccount, We will notify You of such change, as required by
law. If You have value in that Subaccount, We will transfer it at Your written
direction from that Subaccount (without charge) to another Subaccount or to Our
Guaranteed Account, and You may then change Your Premium allocation percentages.
OUR ANNUAL REPORT TO YOU
For each Certificate Year We will send You a report for this Certificate that
shows the current Death Benefit, the value You have in Our Guaranteed Account
and the value You have in each Subaccount of Our Separate Account, the Cash
Surrender Value and any Certificate loan with the current loan interest rate. It
will also show the Premiums paid and any other information as may be required by
the insurance supervisory official of the jurisdiction in which this Certificate
is delivered.
HOW BENEFITS ARE PAID
The Insurance Benefit, surrender value or Your Certificate Account Value payable
on the Maturity Date will be paid immediately in one sum.
OTHER IMPORTANT INFORMATION
Your Contract With Us. This Certificate is issued in consideration of the
payment of the initial Premium shown in the Certificate Information section.
This Certificate, and the attached copy of the initial application, supplemental
application and all subsequent applications to change this Certificate, and all
additional Certificate Information sections added to this Certificate, make up
the entire contract. The rights conferred by this Certificate are in addition to
those provided by applicable Federal and State laws and regulations.
Only Our executive officers can modify this contract or waive any of Our rights
or requirements under it. The person making these changes must put them in
writing and sign them.
Certificate Changes - Applicable Tax Law. For You and the Beneficiary to receive
the tax treatment accorded to life insurance under Federal law, this Certificate
must qualify initially and continue to qualify as life insurance under the
Internal Revenue Code or and successor law or regulation. Therefore, to assure
this qualification for You, We have reserved earlier in this Certificate the
right to decline to accept Premium, in whole or in part, to decline to change
Death Benefit Options, to decline to change the Face Amount or to decline to
make partial surrenders that would cause this Certificate to fail to qualify as
a life insurance contract as defined in Section 7702 of the Internal Revenue
Code, as amended. Further, We reserve the right to make changes in this
Certificate or its riders (for example, in the Table Of Applicable Percentages
on page 10) or to require additional Premium or to make distributions from this
Certificate to the extent We deem it necessary to continue to qualify this
Certificate as life insurance. Any such changes will apply uniformly to all
policies that are affected and will be subject to the prior approval of the
insurance supervisory official of the jurisdiction in which the certificate is
delivered. You will be given advance notice of such changes.
Changes In Certificate Cost Factors. Changes in Certificate cost factors
(interest rates We credit, cost of insurance deductions and expense charges)
will be by class and based upon changes in future expectations for such elements
as: investment earnings, mortality, persistency, expenses and taxes. Any change
in Certificate cost factors will be determined in accordance with procedures and
standards on file, if required, with the insurance supervisory official of the
jurisdiction in which this Certificate is delivered.
When The Certificate Is Incontestable. We have the right to contest the validity
of this Certificate based on material misstatements made in the initial
application for this Certificate. We also have the right to contest the validity
of any Certificate change or restoration based on material misstatements made in
any application for that change. However, We will not contest the validity of
this Certificate after it has been in effect during the lifetime of the Insured
Person for two years from the Issue Date shown in the Certificate Information
section. We will not contest any Certificate change that requires evidence of
insurability, or any restoration of this Certificate, after the change or
restoration has been in effect for two years during the Insured Person's
lifetime.
No statement shall be used to contest a claim unless contained in an
application.
All statements made in an application are representations and not warranties.
See any additional benefit riders for modifications of this provision that apply
to them.
What If Age Or Sex Has Been Misstated? If the Insured Person's age or sex has
been misstated on any application, the Death Benefit and any benefits provided
by riders to this Certificate shall be those which would be purchased by the
most recent deduction for the cost of insurance, and the cost of any benefits
provided by riders, at the correct age and sex.
How The Suicide Exclusion Affects Benefits. If the Insured Person commits
suicide within two years after the Issue Date shown in the Certificate
Information section, Our liability will be limited to the payment of a single
sum. This sum will be equal to the Premiums paid, minus any loan and accrued
loan interest and minus any partial surrender and minus the cost of any riders
attached to this Certificate. If the Insured Person commits suicide within two
years after the effective date of a change that You asked for that increases the
Death Benefit, then Our liability as to the increase in amount will be limited
to the payment of a single sum equal to the monthly cost of insurance deductions
made for such increase plus the expense charge deducted for the increase (see
page 11).
How We Measure Certificate Periods And Anniversaries. We measure Certificate
Years, Certificate Months, and Certificate Anniversaries from the Certificate
Date. Each Certificate Month begins on the same day as the Certificate Date for
each succeeding month, except that, for those months not having such a day, it
is the last day of that month.
How, When And What We May Defer. We may not be able to obtain the value of the
assets of the Subaccounts if: (1) the New York Stock Exchange is closed; or (2)
the Securities and Exchange Commission requires trading to be restricted or
declares an emergency. During such times, as to amounts allocated to the
Subaccounts, We may defer:
1. Determination and payment of partial surrenders;
2. Determination and payment of any Death Benefit in excess of the Face Amount;
3. Payments of loans;
4. Determination of the unit values of the Subaccounts; and
5. Any requested transfer or the transfer on the Allocation Date.
As to amounts allocated to Our Guaranteed Account, We may defer payment of any
surrender or loan amount for up to six months after We receive a request for it.
We will allow interest, at a rate of at least 4% a year, on any Net Cash
Surrender Value payment derived from Our Guaranteed Account that we defer for 10
days or more after We receive a request for it.
The Basis We Use For Computation. We provide Cash Surrender Values that are at
least equal to those required by law. If required to do so, We have filed with
the insurance supervisory official of the jurisdiction in which this Certificate
is delivered a detailed statement of Our method of computing such values. We
compute reserves under this Certificate by the Commissioners Reserve Valuation
Method.
We base minimum Cash Surrender Values and reserves on the Commissioners 1980
Standard Ordinary Male and Female, Smoker and Non-Smoker, Mortality Tables, Age
Last Birthday. We also use these tables as the basis for determining maximum
insurance costs, taking account of sex, Attained Age, rating class and Smoker or
Non-Smoker status of the Insured Person. We use an effective annual interest
rate of 4%.
Certificate Illustrations. Upon request We will give You an illustration of the
future benefits under this Certificate based upon both guaranteed and current
cost factor assumptions. However, if You ask Us to do this more than once in any
Certificate Year, We reserve the right to charge You a reasonable fee for this
service.
Certificate Changes. You may add additional benefit riders or make other
changes, subject to Our rules at the time of change.
Your Exchange Right. You may exchange this Certificate while it is in force for
a new flexible premium fixed benefit life insurance Certificate on the life of
the Insured Person, without evidence of insurability. This exchange may be made
either:
1. within 24 months after the Issue Date while this Certificate is in force; or
2. within 24 months after any increase in the Face Amount of this Certificate;
or
3. within 60 days of the effective date of a material change in the investment
policy of a Subaccount, or within 60 days of the notification of such change, if
later. In the event of such a change, the Company will notify You and give You
information on the options available.
When an exchange is requested, We accomplish this by transferring all monies to
the Guaranteed Account. There is no charge for this transfer. Once this option
is exercised, Your entire Certificate Account Value must remain in the
Guaranteed Account for the life of this Certificate. The Face Amount in effect
at the time of the exchange will remain unchanged. The Certificate Date, Issue
Date and issue age of the Insured Person will remain unchanged. The Owner and
Beneficiary will remain the same as were recorded immediately before the
exchange.
Continuation Of Certificate Coverage. If the Policy under which this Certificate
is issued should terminate, coverage may be continued under this Certificate by
the timely payment of premiums directly to our Administrative Office or to one
of our agents.
Dollar Cost Averaging. Using Our Dollar Cost Averaging Plan Request Form, You
may elect automatic monthly transfers from the Money Market Subaccount into
Subaccounts for a specified dollar amount or specified number of months, not in
excess of 24, in accordance with the following:
1. the allocation to the Subaccounts will be based on the premium allocation
that is in effect at the time of each transfer;
2. if you elect Dollar Cost Averaging in conjunction with Your application for
this Certificate, the automatic transfers will begin on the first Monthly
Anniversary following the end of the Free Look Period;
3. if you elect Dollar Cost Averaging after this Certificate has been issued,
the automatic transfers will begin on the second Monthly Anniversary
following Our receipt of Your election;
4. this option may be elected at any time provided there is a minimum balance
of $2,000 in the Money Market Subaccount; 5. all premiums received after
the date you elect Dollar Cost Averaging will be applied to the Money
Market Subaccount for the purpose of Dollar Cost Averaging.
If you elect to transfer a specific dollar amount each month, automatic
transfers will continue until Your Money Market Subaccount is depleted. If you
elect to transfer based on a specific number of months, each month We will
transfer a fraction of the balance in the Money Market Fund equal to one divided
by the number of months remaining in the period. For example, if You elect to
transfer over a 12 month period, the first transfer will be 1/12th of the
balance in the Money Market Fund, the second transfer will be 1/11th of the
balance, the third transfer will be 1/10th of the balance and so on until the
end of the requested period.
Automatic monthly transfers will continue until one of the following conditions
occur:
1. the balance in the Money Market Subaccount is depleted;
2. We receive Your written request to cancel future transfers;
3. We receive notification of the death of the Insured Person;
4. this Certificate lapses.
| EX-99.C.(2) | Last Page of 23 | TOC | 1st | Previous | Next | ↓Bottom | Just 23rd |
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AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK
80 PINE STREET
NEW YORK, NEW YORK 10005
Flexible Premium Variable Life Insurance Certificate. Insurance payable upon
death before the Maturity Date while this Certificate is in force. Certificate
Account Value payable on Maturity Date. Adjustable Death Benefit. Premiums may
be paid while Insured Person is living and before the Maturity Date. Net Cash
Surrender Value must be sufficient to keep the Certificate in force. Values
provided by this Certificate are based on declared interest rates, and on the
investment performance of the Subaccounts. Certificate values are not guaranteed
as to dollar amount. Investment options are described on page 14. This is a
non-participating Certificate.
Dates Referenced Herein
| Referenced-On Page |
|---|
| This ‘485BPOS’ Filing | | Date | | First | | Last | | | Other Filings |
|---|
| |  |
| Filed on / Effective on: | | 10/27/98 | | | | | | | None on these Dates |
| | 1/1/98 | | 4 |
| | 4/8/96 | | 4 |
| List all Filings |
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