Post-Effective Amendment
Filing Table of Contents
Document/Exhibit Description Pages Size
1: 485BPOS Riversource Variable Life Separate Account 168 1.20M
2: EX-99 Exhibit Index 1 6K
3: EX-99.D(1) CONTRACTS Flexible Premium Variable Life Insurance 27 108K
Policy
4: EX-99.K LEGAL OPININ Consent and Opinion of Counsel 1 9K
5: EX-99.L ACTUARIAL OP Actuarial Consent and Opinion 1 8K
6: EX-99.M(1) CALCULAT Calculations of Illustrations 10 29K
7: EX-99.N OTH OPINIONS Consent of Independent Registered Public 1 7K
Accounting Firm
8: EX-99.R(1) POWER OF Power of Attorney 4 24K
EX-99.D(1) CONTRACTS — Flexible Premium Variable Life Insurance Policy
| EX-99.D(1) CONTRACTS | 1st Page of 27 | TOC | ↑Top | Previous | Next | ↓Bottom | Just 1st |
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RIVERSOURCE LIFE INSURANCE COMPANY RIVERSOURCE [LOGO]
(70100 Ameriprise Financial Center) Insurance
(Minneapolis, MN 55474)
FLEXIBLE PREMIUM VARIABLE
LIFE INSURANCE POLICY
- POLICY CONTINUES UNTIL DEATH OR SURRENDER.
- FLEXIBLE PREMIUMS PAYABLE AS PROVIDED HEREIN.
- NO-LAPSE GUARANTEE AS DESCRIBED HEREIN.
- THIS POLICY IS NONPARTICIPATING. DIVIDENDS ARE NOT PAYABLE.
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Insured: (John Doe) Policy Number: (9090-1234,456)
Initial Specified
Policy Date: (January 15, 1998) Amount: $(100,000)
This is a life insurance policy. It is a legal contract between you, as the
owner, and us, RiverSource Life Insurance Company, A Stock Company. PLEASE
READ YOUR POLICY CAREFULLY.
In consideration of your application and payment of the initial premium, we
issue this policy and we promise to pay the proceeds described in this policy
to the beneficiary if we receive proof satisfactory to us that the insured
died while this policy was in force.
The owner and beneficiary are as named in the application unless they are
changed as provided in this policy.
THE AMOUNT AND DURATION OF THE DEATH BENEFIT OF THIS POLICY MAY INCREASE OR
DECREASE AS DESCRIBED HEREIN DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
SUBACCOUNTS.
THE POLICY VALUE OF THIS POLICY MAY INCREASE OR DECREASE DAILY DEPENDING ON
THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS. THERE IS NO GUAR-ANTEED MINIMUM
POLICY VALUE.
NOTICE OF YOUR RIGHT TO EXAMINE THIS POLICY FOR 10 DAYS. If for any reason you
are not satisfied with this policy, return it to us or our representative
within 10 days after you receive it. We will then cancel this policy and
refund all premiums which you have paid. This policy will then be considered
void from its start.
Signed for and issued by RiverSource Life Insurance Company in Minneapolis,
Minnesota, as of the policy date shown above.
PRESIDENT:
Timothy V. Bechtold
SECRETARY:
Thomas R. Moore
30061 6/98
GUIDE TO POLICY PROVISIONS
RATE TABLE TABLES OF GUARANTEED MAXIMUM MONTHLY
COST OF INSURANCE RATES/ PAGE 4, 5
DEFINITIONS IMPORTANT WORDS AND MEANINGS/PAGE 6
INSURANCE CONTRACT ENTIRE CONTRACT; INCONTESTABILITY;
SUICIDE PROVISION; MISSTATEMENT OF
AGE OR SEX; TERMINATION/PAGE 7
OWNER AND BENEFICIARY OWNER'S RIGHTS; SUCCESSOR OWNER; CHANGE
OF OWNERSHIP; BENEFICIARY DESIGNATION;
CHANGE OF BENEFICIARY; ASSIGNMENT/PAGE 9
PREMIUMS PAYMENT OF PREMIUMS; PREMIUM ALLOCATIONS;
GRACE PERIOD; NO-LAPSE GUARANTEE;
REINSTATEMENT/PAGE 10
DEATH BENEFITS DEATH BENEFIT OPTIONS 1 AND 2/PAGE 12
POLICY CHANGE HOW TO INCREASE OR DECREASE
THE SPECIFIED AMOUNT OR TO CHANGE THE
DEATH BENEFIT OPTIONS/PAGE 13
POLICY VALUES THE POLICY'S VALUE AND HOW IT IS
DETERMINED; MONTHLY DEDUCTION; COST
OF INSURANCE; BASIS OF POLICY
VALUES/PAGE 14
POLICY LOANS HOW TO REQUEST A LOAN; INTEREST RATE;
AMOUNT OF LOAN; LOAN REPAYMENT/PAGE 17
POLICY SURRENDER CASH SURRENDER VALUE; FULL AND
PARTIAL POLICY SURRENDERS/PAGE 18
SUBACCOUNTS THE SUBACCOUNTS; NET INVESTMENT
FACTOR; DEDUCTIONS FROM THE SUBACCOUNTS;
TRANSFER OF VALUES/PAGE 19
PAYMENT OF POLICY PROCEEDS HOW THE PROCEEDS ARE PAID; PAYMENT OPTIONS/
PAGE 21
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POLICY DATA
Insured Issue Age Risk Classification
------- --------- -------------------
(John Doe) (35) (Male Standard Nontobacco)
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Policy Number: 9090-(1234,567) Policy Date: (July 15, 2002)
Type of Policy: Flexible Premium Monthly Date: (15)
Variable Life
(RiverSource VUL IV) Initial Specified Amount: $(100,000)
Minimum Specified Policy Year 1: $(100,000) Initial Death
Amount Allowed: years 2 - 5: $ (75,000) Benefit Option: Option (1)
years 6 - 10: $ (50,000)
years 11 - 15: $ (25,000)
thereafter: $ 1,000
================================================================================
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PREMIUM INFORMATION
Initial Premium: $(763.56) Scheduled Premium: $(763.56 per year
payable annually)
Minimum Initial No-Lapse Guarantee to
Premium: $(41.68) per month age 70 premium: $(63.63) per month
Minimum Initial No-Lapse Guarantee
Premium Period: 5 years to age 100 premium: $(111.49) per month
Coverage will expire when the policy values are insufficient to pay the
charges assessed on a monthly anniversary. Because the policy values may be
based on the investment results of the subaccounts, the payment of scheduled
premiums or unscheduled premiums in any amount or frequency will not guarantee
that the policy will remain in force unless the premiums needed to keep the
No-Lapse Guarantee to age 70 or the No-Lapse Guarantee to age 100 in effect
have been paid.
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INTEREST AND LOAN INFORMATION
Guaranteed Interest Current Loan
Rate: 3% per year Interest Rate: 5% per year
First 10 policy years: 3% per year
Guaranteed Interest All other policy years:
Rate Factor: 1.0032737
Guaranteed Loan
Interest Rate: 5% per year
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FEES AND DEDUCTIONS
Premium Expense Charge: Partial Surrender Fee: $25 or 2% of amount
All policy years: 5% per year surrendered, whichever
Current Mortality and is less
Expense Risk Charge:
Years 1 - 10: (.90)% per year Current Policy Fee: $(7.50) per month
11+: (.45)% per year
Guaranteed Policy Fee: $7.50 per month
Guaranteed Mortality and
Expense Risk Charge:
All policy years: .90% per year
PAGE 3
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TABLE OF SURRENDER CHARGES
Policy Year Beginning of year End of year
----------- ----------------- -----------
1-5 $ 901.00 $ 901.00
6 901.00 720.80
7 720.80 540.60
8 540.60 360.40
9 360.40 180.20
10 180.20 0.00
This table applies to the initial specified amount for the first 10 policy
years. After year 5, surrender charges decrease monthly. Additional charges
will apply to each increase in the specified amount for 10 years after the
effective date of the increase.
Page 3A
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INVESTMENT OPTIONS INITIAL PREMIUM ALLOCATIONS
------------------ ---------------------------
RiverSource Life Fixed Account 20.0%
RiverSource Life Variable Life Separate Account
SUBACCOUNTS INVESTING IN:
-------------------------
RVS VP Bal RiverSource VP Balanced Fund 0.0%
RVS VP Cash Mgmt RiverSource VP Cash Management Fund 10.0%
RVS VP Core Bond RiverSource VP Core Bond Fund 0.0%
RVS VP Div Bond RiverSource VP Diversified Bond Fund 10.0%
RVS VP Div Eq Inc RiverSource VP Diversified Equity Income Fund 10.0%
RVS VP Emer Mkts RiverSource VP Emerging Markets Fund 10.0%
RVS VP Global Bond RiverSource VP Global Bond Fund 0.0%
RVS VP Global Inflation Prot Sec RiverSource VP Global Inflation Protected Securities Fund 0.0%
RVS VP Gro RiverSource VP Growth Fund 0.0%
RVS VP Hi Yield Bond RiverSource VP High Yield Bond Fund 10.0%
RVS VP Inc Opp RiverSource VP Income Opportunities Fund 10.0%
RVS VP Intl Opp RiverSource VP International Opportunity Fund 0.0%
RVS VP Lg Cap Eq RiverSource VP Large Cap Equity Fund 10.0%
RVS VP Lg Cap Val RiverSource VP Large Cap Value Fund 0.0%
RVS VP Mid Cap Gro RiverSource VP Mid Cap Growth Fund 0.0%
RVS VP Mid Cap Val RiverSource VP Mid Cap Value Fund 0.0%
RVS VP S&P 500 RiverSource VP S&P 500 Index Fund 0.0%
RVS VP Select Val RiverSource VP Select Value Fund 0.0%
RVS VP Short Duration RiverSource VP Short Duration U.S. Government Fund 10.0%
RVS VP Sm Cap Adv RiverSource VP Small Cap Advantage Fund 0.0%
RVS VP Sm Cap Val RiverSource VP Small Cap Value Fund 0.0%
AIM VI Cap Appr, Ser II AIM V.I. Capital Appreciation Fund, Series II Shares 0.0%
AIM VI Cap Dev, Ser II AIM V.I. Capital Development Fund, Series II Shares 0.0%
AIM VI Dyn, Ser I AIM V.I. Dynamics Fund, Series I Shares 0.0%
AIM VI Fin Serv, Ser I AIM V.I. Financial Services Fun, Series I Shares 0.0%
AIM VI Tech, Ser I AIM V.I. Technology Fund, Series I Shares 0.0%
AB VPS Gro & Inc, Cl B AllianceBernstein VPS Growth and Income Portfolio (Class B) 0.0%
AB VPS Intl Val, Cl B AllianceBernstein VPS International Value Portfolio (Class B) 0.0%
AC VP Intl, Cl II American Century VP International, Class II 0.0%
AC VP Val, Cl II American Century VP Value, Class II 0.0%
Calvert VS Social Bal Calvert Variable Series Inc Social Balanced Portfolio 0.0%
Col Hi Yield, VS Cl B Columbia High Yield Fund, Variable Series, Class B 0.0%
EG VA Fundamental Lg Cap, Cl 2 Evergreen VA Fundamental Large Cap Fund - Class 2 0.0%
Fid VIP Gro & Inc, Serv Cl 2 Fidelity VIP Growth & Income Portfolio Service Class 2 0.0%
Fid VIP Mid Cap, Serv Cl 2 Fidelity VIP Mid Cap Portfolio Service Class 2 0.0%
Fid VIP Overseas, Serv Cl 2 Fidelity VIP Overseas Portfolio Service Class 2 0.0%
FTVIPT Frank Real Est, Cl 2 FTVIPT Franklin Real Estate Fund - Class 2 0.0%
FTVIPT Frank Sm Cap Val, Cl 2 FTVIPT Franklin Small Cap Value Securities Fund - Class 2 0.0%
FTVIPT Mutual Shares Sec, Cl 2 FTVIPT Mutual Shares Securities Fund - Class 2 0.0%
GS VIT Structd U.S. Eq Goldman Sachs VIT Structured U.S. Equity Fund 0.0%
GS VIT Mid Cap Val Goldman Sachs VIT Mid Cap Value Fund 0.0%
Janus Aspen Global Tech, Serv Janus Aspen Series Global Technology Portfolio: Service Shares 0.0%
Janus Aspen Intl Gro, Serv Janus Aspen Series International Growth Portfolio: Service Shares 0.0%
Lazard Retire Intl Eq Lazard Retirement International Equity Portfolio 0.0%
MFS Inv Gro Stock, Serv Cl MFS Investors Growth Stock Series - Service Class 0.0%
MFS New Dis, Serv Cl MFS New Discovery Series - Service Class 0.0%
MFS Utilities, Serv Cl MFS Utilites Series - Service Class 0.0%
Oppen Global Sec VA, Serv Oppenheimer Global Securities Fund/VA, Service Shares 0.0%
Oppen Main St Sm Cap VA, Serv Oppenheimer Main Street Small Cap Fund/VA, Service Shares 0.0%
Oppen Strategic Bond VA, Serv Oppenheimer Strategic Bond Fund/VA, Service Shares 0.0%
Pioneer Eq Inc VCT, Cl II Pioneer Equity Income VCT Portfolio - Class II Shares 0.0%
Pioneer Intl Val VCT, Cl II Pioneer International Value VCT Portfolio - Class II Shares 0.0%
Put VT Health Sciences, Cl IB Putnam VT Health Sciences Fund - Class IB Shares 0.0%
Put VT Intl Eq, Cl IB Putnam VT International Equity Fund - Class IB Shares 0.0%
Put VT Vista, Cl IB Putnam VT Vista Fund - Class IB Shares 0.0%
Wanger Intl Sm Cap Wanger International Small Cap 0.0%
Wanger U.S. Sm Co Wanger U.S. Smaller Companies 0.0%
WF Adv VT Asset Alloc Wells Fargo Advantage VT Asset Allocation Fund 0.0%
WF Adv VT Intl Core Wells Fargo Advantage VT International Core Fund 0.0%
WF Adv VT Opp Wells Fargo Advantage VT Opportunity Fund 0.0%
WF Adv VT Sm Cap Gro Wells Fargo Advantage VT Small Cap Growth Fund 0.0%
Page 3B
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Monthly
Effective Date Expiration Date Cost of Insurance
-------------- --------------- -----------------
Flexible Premium July 6, 2006 See policy form See policy form
Variable Life
Page 3C
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POLICY DATA SUPPLEMENTAL PAGE
BASE INSURED RIDER
Policy Number: (9090-12345678)
Insured: (John Doe)
Issue Age: (35)
Face Amount: $(100,000)
Minimum Face Amount: $(25,000)
Effective Date: (July 15, 2002)
Expiration Date: See rider form
Monthly Cost of Insurance: See rider form
Risk Classification: (Standard Non-Smoker)
Page 3D
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MALE RATE TABLE
GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE RATES PER $1,000
FOR INSUREDS WITH A STANDARD RISK CLASSIFICATION
STANDARD STANDARD
ATTAINED ATTAINED STANDARD NON- ATTAINED STANDARD NON-
AGE STANDARD AGE SMOKER SMOKER AGE SMOKER SMOKER
--- -------- --- ------ ------ --- ------ ------
0 $0.2175 35 $0.2250 $0.1425 70 $4.8525 $3.0875
1 0.0850 36 0.2425 0.1500 71 5.2850 3.4275
2 0.0825 37 0.2625 0.1600 72 5.7775 3.8250
3 0.0800 38 0.2875 0.1725 73 6.3250 4.2725
4 0.0775 39 0.3125 0.1825 74 6.9300 4.7700
5 0.0725 40 0.3450 0.1975 75 7.5800 5.3050
6 0.0675 41 0.3775 0.2125 76 8.2500 5.8725
7 0.0650 42 0.4150 0.2275 77 8.9250 6.4675
8 0.0625 43 0.4550 0.2450 78 9.6150 7.0975
9 0.0600 44 0.5000 0.2650 79 10.3425 7.7825
10 0.0625 45 0.5450 0.2875 80 11.1325 8.5450
11 0.0675 46 0.5950 0.3100 81 12.0075 9.4075
12 0.0750 47 0.6475 0.3350 82 12.9875 10.3900
13 0.0875 48 0.7050 0.3625 83 14.0600 11.4925
14 0.1025 49 0.7675 0.3925 84 15.1925 12.6975
15 0.1175 50 0.8350 0.4275 85 16.3450 13.9800
16 0.1325 51 0.9150 0.4675 86 17.4900 15.3250
17 0.1425 52 1.0025 0.5125 87 18.6825 16.7175
18 0.1500 53 1.0250 0.5650 88 19.9400 18.1500
19 0.1550 54 1.2125 0.6225 89 21.2100 19.6475
STANDARD 55 1.3300 0.6875 90 22.5100 21.2325
ATTAINED STANDARD NON- 56 1.4550 0.7575 91 23.8825 22.9475
AGE SMOKER SMOKER 57 1.5850 0.8325 92 25.5000 24.8700
--- ------ ------ 58 1.7250 0.9150 93 27.6200 27.2000
59 1.8725 1.0075 94 30.5957 30.4275
20 $0.1925 $0.1400
21 0.1925 0.1375 60 2.0400 1.1125 95 34.5957 34.5957
22 0.1900 0.1350 61 2.2275 1.2300 96 41.3950 41.3950
23 0.1850 0.1325 62 2.4375 1.3650 97 53.1975 53.1975
24 0.1800 0.1275 63 2.6750 1.5175 98 73.2725 73.2725
64 2.9375 1.6850 99 83.3325 83.3325
25 0.1750 0.1250
26 0.1725 0.1225 65 3.2125 1.8725
27 0.1700 0.1200 66 3.5050 2.0750
28 0.1700 0.1200 67 3.8050 2.2900
29 0.1725 0.1200 68 4.1225 2.5275
69 4.4700 2.7900
30 0.1775 0.1200
31 0.1825 0.1225
32 0.1900 0.1250
33 0.2000 0.1300
34 0.2125 0.1375
For insureds with a preferred risk classification, the above standard
non-smoker guaranteed monthly cost of insurance rates will apply. For insureds
with other than a preferred or standard risk classification, the guaranteed
monthly cost of insurance rates are calculated by multiplying the above
monthly rates by the Special Class Risk Factor shown under Policy Data.
30061 Page 4
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FEMALE RATE TABLE
GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE RATES PER $1,000
FOR INSUREDS WITH A STANDARD RISK CLASSIFICATION
STANDARD STANDARD
ATTAINED ATTAINED STANDARD NON- ATTAINED STANDARD NON-
AGE STANDARD AGE SMOKER SMOKER AGE SMOKER SMOKER
--- -------- --- ------ ------ --- ------ ------
0 $0.1550 35 $0.1675 $0.1250 70 $2.4625 $1.8725
1 0.0700 36 0.1800 0.1325 71 2.7025 2.0775
2 0.0650 37 0.1975 0.1425 72 2.9975 2.3275
3 0.0650 38 0.2175 0.1550 73 3.3500 2.6275
4 0.0625 39 0.2375 0.1650 74 3.7525 2.9750
5 0.0625 40 0.2625 0.1800 75 4.1950 3.3625
6 0.0600 41 0.2900 0.1950 76 4.6675 3.7875
7 0.0575 42 0.3150 0.2100 77 5.1650 4.2425
8 0.0575 43 0.3425 0.2250 78 5.6925 4.7375
9 0.0575 44 0.3700 0.2400 79 6.2700 5.2900
10 0.0550 45 0.3975 0.2575 80 6.9225 5.9225
11 0.0575 46 0.4275 0.2750 81 7.6675 6.6550
12 0.0600 47 0.4575 0.2925 82 8.5225 7.5050
13 0.0625 48 0.4900 0.3125 83 9.5175 8.4775
14 0.0675 49 0.5250 0.3350 84 10.6125 9.5575
15 0.0725 50 0.5650 0.3600 85 11.7875 10.7425
16 0.0750 51 0.6050 0.3900 86 13.0400 12.0275
17 0.0800 52 0.6525 0.4200 87 14.3600 13.4100
18 0.0825 53 0.7050 0.4550 88 15.7550 14.9025
19 0.0850 54 0.7575 0.4925 89 17.2300 16.5150
STANDARD 55 0.8125 0.5300 90 18.8925 18.2725
ATTAINED STANDARD NON- 56 0.8650 0.5700 91 20.7175 20.2225
AGE SMOKER SMOKER 57 0.9175 0.6075 92 22.7875 22.4525
--- ------ ------ 58 0.9675 0.6450 93 25.2800 25.1475
59 1.0200 0.6875 94 28.7350 28.7350
20 $0.0975 $0.0825
21 0.0975 0.0850 60 1.0825 0.7375 95 33.5325 33.5325
22 0.1000 0.0850 61 1.1625 0.8000 96 40.6975 40.6975
23 0.1025 0.0875 62 1.2650 0.8775 97 52.8275 52.8275
24 0.1050 0.0900 63 1.3875 0.9725 98 73.1550 73.1550
64 1.5275 1.0800 99 83.3325 83.3325
25 0.1075 0.0900
26 0.1125 0.0925 65 1.6750 1.1950
27 0.1150 0.0950 66 1.8225 1.3150
28 0.1200 0.0975 67 1.9675 1.4375
29 0.1250 0.1000 68 2.1150 1.5650
69 2.2750 1.7075
30 0.1300 0.1025
31 0.1350 0.1075
32 0.1425 0.1100
33 0.1500 0.1150
34 0.1575 0.1200
For insureds with a preferred risk classification, the above standard
non-smoker guaranteed monthly cost of insurance rates will apply. For insureds
with other than a preferred or standard risk classification, the guaranteed
monthly cost of insurance rates are calculated by multiplying the above
monthly rates by the Special Class Risk Factor shown under Policy Data.
30061 Page 5
DEFINITIONS
The following words are used often in this policy. When we use these words,
this is what we mean:
ACCUMULATION UNIT
An accounting unit used to calculate the variable account value. It is a
measure of the net investment results of each of the subaccounts.
AGE ANNIVERSARY
The policy anniversary on which the insured becomes a certain attained
insurance age.
CASH SURRENDER VALUE
The policy proceeds if the policy is surrendered, or the amount payable if the
insured's death occurs on or after the insured's age 100 anniversary. It is
the policy value minus indebtedness, minus surrender charges as shown under
Policy Data.
FIXED ACCOUNT
Our general account. It is made up of our assets other than those in the
subaccounts and those in any other segregated asset account.
FIXED ACCOUNT VALUE
The portion of the policy value that is allocated to the fixed account,
including indebtedness.
IN FORCE
The insured's life remains insured under the terms of this policy.
INDEBTEDNESS
All existing loans on this policy plus policy loan interest that has been
accrued or added to the policy loan.
INSURANCE AGE
The insurance age of the insured on the policy date is the issue age shown
under Policy Data. It is the age of the insured on the date of application.
Attained insurance ages are determined from the policy date.
INSURED
The person whose life is insured by this policy.
MONTHLY DATE
The same day each month as the policy date. If there is no monthly date in a
calendar month, the monthly date will be the first day of the next calendar
month.
NET PREMIUM
The portion of a premium paid that is credited to the policy as described in
the Policy Values section. It is the premium paid minus the premium expense
charge shown under Policy Data.
POLICY ANNIVERSARY
The same day and month as the policy date each year that the policy remains in
force.
POLICY DATE
The date from which policy anniversaries, policy years, and policy months are
determined. Your policy date is shown under Policy Data.
POLICY VALUE
The sum of the fixed account value and the variable account value.
PROCEEDS
The amount payable by this policy as follows:
1. upon death of the insured prior to the insured's age 100 anniversary,
proceeds will be the death benefit under the option in effect as of the
date of the insured's death, minus any indebtedness;
2. upon death of the insured on or after the insured's age 100 anniversary,
proceeds will be the cash surrender value;
3. on surrender of the policy, proceeds will be the cash surrender value.
PRO-RATA BASIS
Allocation to the fixed account and each of the subaccounts. It is
proportionate to the value (minus any indebtedness in the fixed account) that
each bears to the policy value, minus indebtedness.
SPECIFIED AMOUNT
An amount used to determine the death benefit and the proceeds payable upon
death prior to the insured's age 100 anniversary. The initial specified amount
is shown under Policy Data.
SUBACCOUNTS
The subaccounts named under Policy Data. Each is an investment division of the
variable account and invests in a particular portfolio.
TERMINATE
This policy is no longer in force. All insurance coverage under this policy
has stopped.
VALUATION DATE
Each day on which the New York Stock Exchange is open for trading, or any
other day on which there is a sufficient degree of trading in the investments
of the subaccounts such that the current value might be materially affected.
VALUATION PERIOD
The interval of time commencing at the close of business on each valuation
date and ending at the close of business on the next valuation date.
VARIABLE ACCOUNT VALUE
The sum of the values of the subaccounts under this policy.
WE, OUR, US
RiverSource Life Insurance Company.
WRITTEN REQUEST
A request in writing signed by you.
YOU, YOUR
The owner of this policy. The owner may be someone other than the insured. The
owner is shown in the application unless the owner has been changed as
provided in this policy.
30061 Page 6
THE INSURANCE CONTRACT
WHAT IS THE ENTIRE CONTRACT OF INSURANCE?
This policy and the copy of the application attached to it are the
entire contract between you and us.
No one except one of our corporate officers (President, Vice President,
Secretary, or Assistant Secretary) can change or waive any of our rights
or requirements under this policy. That person must do so in writing.
None of our representatives or other persons have the authority to
change or waive any of our rights or requirements under this policy.
In issuing this policy, we have relied upon the application. The
statements contained in the application are considered, in the absence
of fraud, representations and not warranties. No statement made in
connection with the application will be used by us to void the policy or
to deny a claim unless that statement is part of the application.
WHEN WILL THE POLICY BECOME INCONTESTABLE?
After this policy has been in force during the insured's lifetime for
two years from the policy date, we cannot contest the policy except for
nonpayment of premiums.
While this policy is contestable, we, on the basis of a misstatement or
misrepresentation made in the application, may rescind or reform this
policy and we may deny a claim.
Any additional specified amount, other than that resulting solely from a
change in death benefit option, issued after the policy date will be
incontestable only after such amount has been in force during the
insured's lifetime for two years from the effective date of such amount.
IS THERE A SUICIDE EXCLUSION?
Suicide by the insured, whether sane or insane, within two years from
the policy date is not covered by this policy. In this event, the only
amount payable by us to the beneficiary will be the premium that you
have paid, minus any indebtedness and partial surrenders.
If the insured commits suicide while sane or insane within the two years
after the effective date of:
1. any additional specified amount other than that resulting solely
from a change in death benefit option; or
2. any rider attached to this policy;
the amount payable by us will be limited to the monthly deductions for
such additional amount or rider.
CAN YOU EXCHANGE THIS POLICY?
Yes. Once during the first two policy years, you have the right to
exchange this policy for a flexible premium adjustable life policy that
provides for benefits that do not vary with the investment return of the
subaccounts. This is done by transferring, without charge, the entire
policy value to the fixed account.
DO YOU HAVE VOTING RIGHTS?
All policy owners with variable account values will have voting rights.
So long as federal law requires, you may have the right to vote at the
meetings of the Variable Policy Owners. If you have voting rights, we
will send you a notice of the time and place of any such meetings. The
notice will also explain matters to be voted upon and how many votes you
will have.
30061 Page 7
DO STATE LAWS APPLY?
Yes. This policy is governed by the law of the state in which it is
delivered. The values and benefits of this policy are at least equal to
those required by such state.
WHAT IF THE INSURED'S AGE OR SEX HAS BEEN MISSTATED?
If the insured's age or sex has been misstated, the proceeds payable
upon death will be:
1. the policy value on the date of death; plus
2. the amount of insurance that the cost of insurance on the insured,
which was deducted from the policy value for the policy month
during which such death occurred, would have purchased had the cost
of the insurance been calculated using the cost of insurance rates
for the correct age and sex; minus
3. any indebtedness on the date of death.
WHEN DOES THIS POLICY TERMINATE?
This policy will terminate on the earliest of the following:
1. the date you request that coverage ends; or
2. the date you surrender the policy in full; or
3. the end of the grace period; or
4. the date of death of the insured.
DOES THIS POLICY QUALIFY FOR FAVORABLE TAX TREATMENT?
This policy is intended to qualify for treatment as a life insurance
policy under Sections 72, 101, and 7702 of the Internal Revenue Code as
they now exist or may later be amended.
We reserve the right to endorse this policy to comply with:
1. future changes in the Internal Revenue Code;
2. any regulations or rulings issued under the Code; and
3. any other requirements imposed by the Internal Revenue Service;
with respect to remaining qualified for treatment as a life insurance policy
under these Code sections.
We will provide the owner with a copy of any such endorsement.
30061 Page 8
OWNER AND BENEFICIARY
WHAT ARE YOUR RIGHTS AS OWNER OF THIS POLICY?
As long as the insured is living and unless otherwise provided in this
policy, you may exercise all rights and privileges provided in this
policy or allowed by us.
HOW CAN YOU CHANGE OWNERSHIP OF THIS POLICY?
You can change the ownership of this policy by written request on a form
approved by us. The change must be made while the insured is living.
Once the change is recorded by us, it will take effect as of the date of
your request, subject to any action taken or payment made by us before
the recording.
TO WHOM ARE THE PROCEEDS PAID ON THE INSURED'S DEATH?
We will pay the proceeds to the beneficiary or beneficiaries whom you
have named in the application unless you have since changed the
beneficiary as provided below. If the beneficiary has been changed, we
will pay the proceeds in accordance with your last change of beneficiary
request.
IF ONE OR ALL OF THE BENEFICIARIES DIE BEFORE THE INSURED, TO WHOM ARE THE
PROCEEDS PAYABLE?
Only those beneficiaries who survive the insured's death may share in
the proceeds. If no beneficiary survives the insured, we will pay the
proceeds to you, if living; otherwise, to your estate.
HOW DO YOU CHANGE THE BENEFICIARY?
By making a satisfactory written request to us, you may change the
beneficiary anytime while the insured is living. Once we record the
change, it will take effect as of the date of your request, subject to
any action taken or payment made by us before the recording.
CAN YOU ASSIGN THIS POLICY AS COLLATERAL?
Yes. While the insured is living, you can assign this policy or any
interest in it. Your interest and the interest of any beneficiary are
subject to the interest of the assignee. An assignment is not a change
of ownership and an assignee is not an owner as these terms are used in
this policy. We will pay any policy proceeds payable to the assignee in
a single sum.
You must give us a copy of any assignment. Any assignment is subject to
any action taken or payment made by us before the assignment was
recorded at our home office. We are not responsible for the validity of
any assignment.
30061 Page 9
PREMIUMS
WHAT ARE THE PREMIUM PAYMENTS FOR THIS POLICY?
Three types of premium payments apply to this policy. We call these:
1. the initial premium;
2. scheduled premiums; and
3. unscheduled premiums.
WHAT IS THE INITIAL PREMIUM?
The initial premium is the premium due on the policy date of this
policy.
WHAT IS THE SCHEDULED PREMIUM? CAN IT BE CHANGED?
The scheduled premium is the premium shown under Policy Data. It is
payable at the stated interval that you selected in the application.
However, no scheduled premium may be paid on or after the insured's age
100 anniversary.
The scheduled premium will serve only as an indication of your intent as
to the frequency and amount of future premium payments. You may change
the amount or interval at any time by written request. You may also skip
scheduled premium payments. Any change in amount may be subject to
applicable tax laws and regulations.
Scheduled premiums may be paid annually, semiannually, or quarterly.
Payment at any other interval must be approved by us. Scheduled premium
payments must be at least $25. We reserve the right to limit the amount
of any increase in scheduled premiums.
CAN YOU MAKE UNSCHEDULED PREMIUM PAYMENTS?
Yes. You can make additional premium payments of at least $25 at any
time prior to the insured's age 100 anniversary. We reserve the right to
limit the number and amount of these unscheduled premiums. This includes
our right to refuse such premiums if there is indebtedness on this
policy.
HOW ARE PREMIUM PAYMENTS ALLOCATED?
Premium payments applied to the fixed account and the subaccounts will
be allocated as specified in your application for this policy. You may
choose any whole percentage for each account from 0% to 100%. By written
request, you may change this allocation. The change will be effective
for all premiums received after our receipt of the change. Premiums
received before the policy date will be allocated initially to the fixed
account. On the policy date, the policy value in the fixed account will
be transferred to the subaccounts or remain in the fixed account in
accordance with your premium allocation percentages. For any premium
received on or after the policy date, the premium will be allocated in
accordance with your premium allocation percentages.
CAN WE RESTRICT PREMIUM PAYMENTS?
We reserve the right to refuse premiums and to return premiums with
interest if such premiums would disqualify your policy from:
1. treatment as a life insurance policy under Code Sections 72, 101,
and 7702; or
2. favorable tax treatment under Code Sections 72 and 101.
IS THERE A GRACE PERIOD FOR PAYING PREMIUMS?
Yes. If, on a monthly date, the cash surrender value is less than the
monthly deduction for the policy month following such monthly date, a
grace period of 61 days will begin.
The grace period will give you time to pay a premium sufficient to
continue your coverage. We will mail, to your last known address, a
notice as to the premium needed so that the next three monthly
deductions can be taken. If such premium is not paid within the grace
period, all coverage under this policy will terminate without value at
the end of the 61-day grace period.
If a claim by death during the grace period becomes payable under the
policy, any overdue monthly deductions will be deducted from the
proceeds.
If the no-lapse guarantee is in effect as described in the provision
below, the policy will not enter the grace period.
30061 Page 10
WHAT IS THE NO-LAPSE GUARANTEE?
During the no-lapse guarantee period, as shown under Policy Data, this
policy will not terminate even if the cash surrender value is
insufficient to cover the monthly deduction on a monthly date if (a) -
(b) - (c) equals or exceeds (d) where:
(a) is the total of all premiums paid;
(b) is any partial surrenders;
(c) is any indebtedness;
(d) is the sum of the minimum monthly premiums required to keep the
no-lapse guarantee in effect since the policy date.
The initial minimum monthly premium is shown under Policy Data.
If, during the no-lapse guarantee period the specified amount is
increased or decreased, or, riders are added, changed, or terminated, a
new minimum monthly premium will be established for the remainder of the
no-lapse guarantee period.
For any month in which the monthly deduction is being paid by a Waiver
of Monthly Deduction Rider, if applicable and attached to this policy,
the minimum monthly premium for that month will be zero.
If on a monthly date, sufficient premiums have not been paid to maintain
the no-lapse guarantee, the no-lapse guarantee period will be
terminated.
The no-lapse guarantee period may be reinstated within 2 years of its
termination if the policy is in force. The amount needed to reinstate
the no- lapse guarantee period is an amount equal to (a) + (b) + (c) -
(d) where:
(a) is the sum of minimum monthly premiums to the date of
reinstatement assuming the no- lapse guarantee was always in
effect since the policy date;
(b) is any partial surrenders that have been taken to the date of
reinstatement;
(c) is any indebtedness on the date of reinstatement;
(d) is the total of all premiums paid to the date of reinstatement.
CAN YOU EVER REINSTATE THIS POLICY?
This policy may be reinstated within 5 years after the end of the grace
period unless it was surrendered for cash. To do this, we will require
all of the following:
1. your written request to reinstate the policy;
2. evidence of insurability of the insured satisfactory to us;
3. payment of the required reinstatement premium;
4. payment or reinstatement of any indebtedness.
The required premium to reinstate the policy is an amount equal to (a) +
(b) + (c) - (d) where:
(a) is the surrender charge which will be reinstated;
(b) is an amount equal to the monthly deductions not taken during the
grace period;
(c) is an amount equal to the next 3 monthly deductions that will be
taken after reinstatement;
(d) is the policy value which will be reinstated.
The effective date of a reinstated policy will be the monthly date on or
next following the date on which we approve the application for
reinstatement.
The suicide and incontestability periods will apply from the effective
date of reinstatement. We will have two years from the effective date of
reinstatement to contest the truth of statements or representations in
the reinstatement application.
30061 Page 11
DEATH BENEFITS
WHAT ARE THE PROCEEDS PAYABLE UPON DEATH OF THE INSURED BY THIS POLICY PRIOR
TO THE INSURED'S AGE 100 ANNIVERSARY?
The proceeds payable upon death will be the death benefit in effect on
the date of the insured's death, minus any indebtedness. The death
benefit will be calculated based on the death benefit option in effect
as of the date of the insured's death. One of two options will apply:
Option 1 or 2. Both options are described below.
WHAT IS OPTION 1?
The death benefit under this option will be the greater of:
1. the specified amount; or
2. the percentage of policy value for the insured's attained age
shown in the table below.
Under this option, the policy value of this policy is part of the
specified amount. The initial specified amount is shown under Policy
Data. Such amount may be changed as explained in the Policy Change
section. A partial surrender will reduce the specified amount.
WHAT IS OPTION 2?
The death benefit under this option will be the greater of:
1. the policy value of this policy, plus the specified amount; or
2. the percentage of policy value for the insured's attained age
shown in the table below.
Under this option, the policy value is not a part of the specified
amount. The initial specified amount is shown under Policy Data. Such
amount may be changed as explained in the Policy Change section.
[Download Table]
Insureds Applicable Insured's Applicable
Attained Age Percentage Attained Age Percentage
------------ ---------- ------------ ----------
40 or less 250 61 128
41 243 62 126
42 236 63 124
43 229 64 122
44 222 65 120
45 215 66 119
46 209 67 118
47 203 68 117
48 197 69 116
49 191 70 115
50 185 71 113
51 178 72 111
52 171 73 109
53 164 74 107
54 157 75-95 105
55 150 96 104
56 146 97 103
57 142 98 102
58 138 99 101
59 134 100 100
60 130
The percentage is designed to ensure that the policy meets the provisions of
Federal tax law which require a minimum death benefit in relation to policy
value for the policy to qualify as life insurance.
WHICH DEATH BENEFIT OPTION WILL APPLY?
You chose the death benefit option you wanted when you applied for this
policy. The initial death benefit option is shown under Policy Data.
While this policy is in force, you may change the option as explained in
Policy Change section.
WHAT ARE THE PROCEEDS PAYABLE UPON DEATH OF THE INSURED ON OR AFTER THE
INSURED'S AGE 100 ANNIVERSARY?
The proceeds payable upon death of the insured will be the cash
surrender value.
30061 Page 12
POLICY CHANGE
CAN YOU REQUEST TO CHANGE THE BENEFITS OF THIS POLICY?
Yes. While this policy is in force, you may request to decrease or
increase the specified amount. You may also change the death benefit
option from 1 to 2 or from 2 to 1. All such changes may be made only
prior to the insured's age 100 anniversary and will be subject to the
rules below.
WHAT ARE THE RULES FOR CHANGING THE SPECIFIED AMOUNT?
DECREASES OF THE SPECIFIED AMOUNT
You may decrease the specified amount once per policy year by written
request. A decrease may only be made after the first policy year and is
subject to the following rules.
1. Any decrease will be effective on the monthly date on or next
following our receipt of your written request. Any such decrease
will be applied in the following order:
(a) against the specified amount provided by the most recent
increase; then
(b) against the next most recent increases successively; then
(c) against the initial specified amount shown under Policy
Data.
2. The specified amount that remains in force after a requested
decrease may not be less than the minimum specified amount allowed
shown under Policy Data.
3. We reserve the right to decline to make any specified amount
decrease that we determine would cause this policy to fail to
qualify as life insurance under applicable tax laws.
INCREASES OF THE SPECIFIED AMOUNT
You may increase the specified amount at any time by written request.
The following rules apply to any increase in specified amount other than
that resulting solely from a change in death benefit option.
1. You must apply for an increase by written request on a form
satisfactory to us, and not later than the insured's age 85
anniversary.
2. You must furnish satisfactory evidence of insurability of the
insured.
3. Any increase will be subject to our issue rules and limits at the
time of increase.
4. The minimum increase in the specified amount is $10,000.
5. Any increase will be effective on the monthly date on or next
following the date your application is approved.
6. A new schedule of surrender charges will apply to the amount of
any increase in the specified amount.
HOW DO YOU CHANGE THE DEATH BENEFIT OPTION?
You may change the death benefit option once per policy year by written
request. The change in option will be effective on the monthly date on
or next following the date we approve your request.
If the death benefit is Option 2, it may be changed to Option 1. The new
specified amount will be the Option 2 death benefit as of the effective
date of change.
If the death benefit is Option 1, it may be changed to Option 2. The new
specified amount will be the Option 1 death benefit, minus the policy
value as of the effective date of change.
The death benefit after a change may not be less; than the minimum
specified amount allowed shown under Policy Data.
We reserve the right to decline to make any death benefit option change
that we determine would cause this policy to fail to qualify as life
insurance under applicable tax laws.
30061 Page 13
POLICY VALUES
WHAT IS THE POLICY'S VALUE?
On a given date, the policy value is equal to the fixed account value
plus the variable account value.
WHAT IS THE FIXED ACCOUNT VALUE?
On the policy date, the fixed account value equals:
1) the portion of the initial net premium allocated to the fixed
account, plus any interest credited on such portion before the policy
date; minus 2) the portion of the monthly deduction allocated to the
fixed account for the first policy month.
On any subsequent date, the fixed account value will be calculated as:
a + b + c - d - e - f
where:
(a) is the fixed account value on the preceding monthly date plus
interest thereon from the preceding monthly date to the date of
calculation;
(b) is the portion of net premiums allocated to the fixed account and
received since the preceding monthly date, plus interest on such
portions from the date such net premiums were received to the date
of calculation;
(c) is the amount of any transfers from the sub-accounts, including
loan transfers, to the fixed account since the preceding monthly
date, plus interest on such transferred amounts from the effective
dates of such transfers to the date of calculation;
(d) is the amount of any transfers from the fixed account, including
loan repayment transfers, to the subaccounts since the preceding
monthly date, plus interest on such transferred amounts from the
effective dates of such transfers to the date of calculation;
(e) is the amount of any partial surrenders and partial surrender fees
allocated to the fixed account since the preceding monthly date,
plus interest on such surrendered amounts from the effective date
of such partial surrenders to the date of calculation; and
(f) if the date of calculation is a monthly date, the portion of the
monthly deduction allocated to the fixed account for the policy
month following the monthly date.
WHAT IS THE VARIABLE ACCOUNT VALUE?
The variable account value is the sum of the values of the subaccounts
under this policy as shown under Policy Data.
On the policy date, the value of each subaccount equals: 1) the portion
of the initial net premium allocated to the subaccount, plus any
interest credited on such portion before the policy date; minus 2) the
portion of the monthly deduction allocated to the subaccount for the
first policy month.
On any subsequent date, the value of each subaccount will be calculated
as:
a + b + c - d - e - f
where:
(a) is the value of the subaccount on the preceding valuation date,
multiplied by the net investment factor for the current valuation
period;
(b) is the net premiums received and allocated to the subaccount
during the current valuation period;
(c) is the amount of any transfers from other subaccounts or the fixed
account, including loan repayment transfers, to the subaccount
during the current valuation period;
(d) is the amount of any transfers to other subaccounts or the fixed
account, including loan transfers, from the subaccount during the
current valuation period;
(e) is the amount of partial surrender and partial surrender fee
allocated to the subaccount during the current valuation period;
(f) is the portion of any monthly deduction during the current
valuation period allocated to the subaccount for the policy month
following the monthly date.
30061 Page 14
WHAT IS THE MONTHLY DEDUCTION?
A deduction will be made each monthly date prior to the insured's age
100 anniversary for the cost of insurance, policy fee, and the cost of
any riders, for the policy month following such monthly date. The
monthly deduction for a policy month will be calculated as:
(a) + (b) + (c) where:
(a) is the cost of insurance for the policy month;
(b) is the policy fee shown under Policy Data. We reserve the right to
change the policy fee, but it will never exceed the guaranteed
policy fee shown under Policy Data; and
(c) is the cost of any policy riders for the policy month.
The monthly deduction will be taken from the fixed account and the
subaccounts with value according to the monthly deduction allocation
percentages specified in your application for this policy. You may
choose any whole percentage for each account from 0% to 100%. By written
request, you may change the percentages. Any change will be effective
for monthly deductions taken thereafter.
The monthly deduction will be taken from the fixed account and the
subaccounts with value on a prorata basis if: 1) the value in the fixed
account or in any subaccount is insufficient to pay the portion of the
monthly deduction so allocated; or 2) you do not specify the account or
subaccounts from which the monthly deduction is to be taken.
HOW IS THE COST OF INSURANCE CALCULATED?
The cost of insurance for a policy month is calculated as:
a x (b - c) + d
-----------
1000
where:
(a) is the cost of insurance rate described below;
(b) is the death benefit on the monthly date divided by the guaranteed
interest rate factor shown under Policy Data;
(c) is the policy value at the beginning of the policy month. At this
point, the policy value has been reduced by the monthly deduction
except for the part of the monthly deduction that pays for the
cost of insurance; and
(d) is the amount of any flat extra insurance charges as shown under
Policy Data.
If the policy value is included in the specified amount and there have
been changes in the specified amount, the policy value is considered a
prorata part of each specified amount.
WHAT IS THE COST OF INSURANCE RATE?
The cost of insurance rate is the rate applied to the insurance under
this policy to determine the monthly deduction. It is based on the sex,
attained age, and risk classification of the insured. "Attained Age"
means age on the prior policy anniversary.
We may change monthly cost of insurance rates from time to time. Any
change in the cost of insurance rate will apply to all individuals of
the same risk class as the insured. Any change will be in accordance
with procedures and standards on file with the state insurance
department. Cost of insurance rates will be determined by us based on
our expectations as to future mortality experience.
The guaranteed maximum monthly cost of insurance rates shown in this
policy on pages 4 and 5, for ages 20 and over, are based on the 1980
Commissioners Standard Ordinary Smoker or Nonsmoker, Male or Female
Mortality Tables, Age Last Birthday.
The rates for ages under 20 do not distinguish between smokers and
nonsmokers and are based on the 1980 Standard Ordinary Mortality Table,
Male or Female, Age Last Birthday. Shortly before the Insured's becomes
age 20, we will send you a notice that we may begin charging smoker
rates upon the insured's age 20 policy anniversary. If you do not apply
for nonsmoker rates, or the insured does not qualify for nonsmoker
rates, the insured will be reclassified as a smoker, and smoker
guaranteed maximum monthly cost of insurance rates will apply to the
policy.
30061 Page 15
WHAT INTEREST RATE IS USED TO DETERMINE THE FIXED ACCOUNT VALUE?
The guaranteed interest rate applied in the calculation of the fixed
account value is shown under Policy Data. Interest in excess of the
guaranteed interest rate shown under Policy Data may be applied in the
calculation of the fixed account value at such increased rates and in
such manner as we may determine.
Interest in excess of the guaranteed interest rate as shown under Policy
Data however, will not be applied to the portion of the policy value
that equals any indebtedness due us.
FOR HOW LONG WILL THE POLICY VALUE CONTINUE YOUR INSURANCE?
If sufficient scheduled premium payments are not continued, insurance
coverage under this policy and any benefits provided by riders will be
continued until the cash surrender value is insufficient to cover the
monthly deduction, as provided in the Grace Period provision. This
provision will not continue any rider beyond the date for its
termination as provided in the rider.
WHAT IS THE BASIS USED FOR POLICY VALUES?
Values and reserves are equal to or greater than those required by law.
Where required, a detailed statement of the method of computation of
values and reserves has been filed with the insurance department of the
state where this policy was delivered.
WILL YOU RECEIVE INFORMATION ABOUT THE VALUES OF THIS POLICY?
Yes. At least once a year, we will send to your last known address, a
report that shows:
1. the current policy value;
2. premiums paid since the last report;
3. all charges since the last report;
4. indebtedness on this policy;
5. the current cash surrender value;
6. the current death benefit; and
7. partial surrenders since the last report.
At any time, upon written request by you, we will provide a projection
of future death benefits and policy values. The projection will be based
on (1) assumptions as to specified amount(s), type of coverage option
and future premium payments as are necessary and specified by us and/or
you.
30061 Page 16
POLICY LOANS
CAN YOU BORROW MONEY ON THIS POLICY? HOW?
By written request, you may obtain a loan from us whenever this policy
has a loan value. The loan value of this policy is the only security
required for your loan. A loan must be for at least $500. We will pay
interest on the loaned amount at an annual rate as stated under Policy
Data. Loans may affect the no-lapse guarantee as described in the
Premiums section of this policy.
If you do not specify the accounts from which the loan is to be made,
the loan will be made from the fixed account and the subaccounts with
value on a pro-rata basis.
The amount of any loan and any loan interest from the subaccounts will
be transferred from the sub-accounts to the fixed account.
CAN WE DELAY OR SUSPEND PAYMENT OF A LOAN?
We will normally pay the portion of any loan from the subaccounts within
7 days after we receive your written request in our home office. We have
the right, however, to suspend or delay the date of any loan from the
subaccounts for any period:
1. when the New York Stock Exchange is closed; or
2. when trading on the New York Stock Exchange is restricted; or
3. when an emergency exists, and as a result:
(a) disposal of securities held in the subaccounts is not
reasonably practicable; or
(b) it is not reasonably practicable to fairly determine the
value of the assets of the subaccounts; or
4. during any other period when the Securities and Exchange
Commission, by order, so permits for the protection of security
holders.
Rules and regulations of the Securities and Exchange Commission will
govern as to whether the conditions set forth in the above items 2 and 3
exist.
For any loans from the fixed account, we have the right to postpone the
loan for up to 6 months unless the loan is used to pay premiums on any
policies you have with us.
WHAT IS THE INTEREST RATE FOR A POLICY LOAN?
The current loan interest rate for policy loans is shown under Policy
Data. We reserve the right to increase the current loan interest rate
charge, but it will never exceed the guaranteed loan interest rate shown
under Policy Data.
Interest is charged daily and payable at the end of the policy year. If
interest is not paid when it is due, it will be added to your
indebtedness and charged the same interest rate as your loan. The
additional interest will be taken from the fixed account and the
subaccounts with value on a pro-rata basis.
WHAT IS THE MAXIMUM LOAN VALUE OF THIS POLICY?
You can borrow an amount up to 90% of the policy value minus surrender
charges. We calculate the policy value as of the date of the loan.
Interest to pay for the loan until the next policy anniversary will be
included in determining the maximum loan value.
WHEN CAN YOU REPAY YOUR LOAN?
Your loan can be repaid in full or in part at any time before the
insured's death and while this policy is in force. A loan that exists at
the end of the grace period may not be repaid unless this policy is
reinstated.
Repayments should be clearly marked as "loan repayments"; otherwise,
they will be credited to this policy as premiums. Loan repayments must
be in amounts of at least $25. Remaining loan amounts of less than $25
can be paid in full. Loan repayments will be allocated to the fixed
account and the subaccounts according to the premium allocation
percentages in effect unless you tell us otherwise.
WHAT IF YOUR LOAN IS NOT REPAID?
Failure to repay a loan or to pay loan interest will not terminate this
policy unless the cash surrender value is insufficient to cover the
monthly deduction, as provided in the Grace Period provision. This would
happen if indebtedness exceeded the policy value, minus surrender
charges.
30061 Page 17
POLICY SURRENDER
CAN YOU SURRENDER THIS POLICY?
Yes. You may surrender this policy for its cash surrender value at any
time. Your request must be in writing. Upon surrender for the cash
surrender value, this policy will terminate.
The cash surrender value of this policy is:
1. the policy value at the time of surrender; minus
2. any indebtedness on this policy; minus
3. any applicable surrender charges as shown under Policy Data.
Surrender charges are shown under Policy Data.
IS a PARTIAL SURRENDER POSSIBLE?
Yes. By written request or other requests acceptable to us, you may
partially surrender this policy for an amount less than the cash
surrender value. Partial surrenders are subject to the rules below and
payment of the Partial Surrender Fee shown under Policy Data. We reserve
the right to limit the frequency of partial surrenders you may request.
Partial surrenders may affect the no-lapse guarantee as described in the
Premiums section of this policy.
If death benefit Option 1 is in effect, both the specified amount and
the policy value will be reduced by the amount of surrender and partial
surrender fee. If death benefit Option 2 is in effect, the policy value
will be reduced by the amount of surrender and the partial surrender
fee.
WHAT ARC THE RULES FOR A PARTIAL SURRENDER?
The following rules will apply to any partial surrender:
1. partial surrenders may not be made in the first policy year;
2. the minimum amount that may be surrendered is $500;
3. the partial surrender amount cannot exceed 90% of the full cash
surrender value;
4. the death benefit that remains in force may not be less than the
minimum specified amount allowed shown under Policy Data;
5. the partial surrender fee is as stated under Policy Data. The
surrender amount and partial surrender fee will be deducted from
the policy value at the time of each partial surrender; and
6. we reserve the right to decline a request for a partial surrender
that we determine would cause this policy to fail to qualify as
life insurance under applicable tax laws.
If you do not specify the accounts from which the surrender is to be
made, the surrender will be made from the fixed account and the
subaccounts with value on a pro-rata basis.
CAN WE DELAY OR SUSPEND PAYMENT OF A SURRENDER?
We will normally pay the portion of any surrendered amount from the
subaccounts within 7 days after we receive your written request in our
home office. We have the right, however, to suspend or delay the date of
any surrender payment from the subaccounts for any period:
1. when the New York Stock Exchange is closed; or
2. when trading on the New York Stock Exchange is restricted, or
3. when an emergency exists, and as a result:
(a) disposal of securities held in the subaccounts is not
reasonably practicable; or
(b) it is not reasonably practicable to fairly determine the
value of the assets of the subaccounts; or
4. during any other period when the Securities and Exchange
Commission, by order, so permits for the protection of security
holders.
Rules and regulations of the Securities and Exchange Commission will
govern as to whether the conditions set forth in the above items 2 and 3
exist.
For any surrender request from the fixed account, we have the right to
postpone the payment for up to 6 months. If we postpone payment more
than 30 days, we will also pay you interest. The interest will be paid
at the rate of 3% per year based on the amount surrendered for the
period of postponement.
30061 Page 18
SUBACCOUNTS
WHAT ARE THE SUBACCOUNTS?
The subaccounts are separate investment accounts of ours. They are named
under Policy Data. We have allocated a part of our assets for this and
certain other policies to the subaccounts. Such assets remain our
property. They cannot be charged, however, with liabilities from any
other business in which we may take part.
WHAT ARE THE INVESTMENTS OF THE SUBACCOUNTS?
Net premiums and transfers will be allocated as you specify. Each
subaccount will buy the investment shown for that subaccount under
Policy Data or as later added or changed.
HOW DO WE VALUE THE SUBACCOUNTS?
The subaccount value is determined by multiplying the number of
accumulation units credited to the subaccount by the appropriate
accumulation unit values.
WHAT ARE SUBACCOUNT ACCUMULATION UNITS?
The number of accumulation units for each of the subaccounts is found by
dividing: (1) the amount allocated to the subaccount; by (2) the
subaccount's accumulation unit value for the valuation period in which
we received the premium payment, transfer request, or partial surrender
request.
WHAT IS THE SUBACCOUNT ACCUMULATION UNIT VALUE?
The value of an accumulation unit for each of the subaccounts was
arbitrarily set at $1 when the first investments were bought.
The value for any later valuation period is found as follows: The
accumulation unit value for a subaccount for the last prior valuation
period is multiplied by such subaccount's net investment factor for the
following valuation period. The result is the accumulation unit value.
The value of an accumulation unit may increase or decrease from one
valuation period to the next.
WHAT IS THE NET INVESTMENT FACTOR? HOW IS IT DETERMINED?
The net investment factor is an index applied to measure the investment
performance of a subaccount from one valuation period to the next. The
net investment factor may be greater or less than one; therefore, the
value of an accumulation unit may increase or decrease.
To find the net investment factor of any such sub-account for any
valuation period, we divide (1) by (2), and subtract (3) from the
result, where:
(1) is the net result of:
a. the net asset value per share of the portfolios or funds
held in the subaccount determined at the end of the current
valuation period; plus
b. the per-share amount of any dividend or capital gain
distributions made by the investment held in the subaccount,
if the "ex-dividend" date occurs during the current
valuation period; plus or minus
c. a per-share charge or credit for any taxes reserved for the
current valuation period that we determine to have resulted
from the investment operations of the subaccount;
(2) is the net result of:
a. the net asset value per share of the portfolios or funds
held in the subaccount, determined at the end of the last
prior valuation period; plus or minus
b. the per-share charge or credit for any taxes reserved for
the last prior valuation period; and
(3) is a factor representing the mortality and expense risk charge.
30061 Page 19
WHAT DEDUCTIONS ARE MADE FROM THE SUBACCOUNTS?
The mortality and expense risk charge compensates us for assuming the
mortality and expense risks under this policy. It is equal on an annual
basis to the percentage, as stated under Policy Data, of the daily value
of the subaccounts. The deduction will be (1) made from each subaccount
with value; and (2) computed on a daily basis.
CAN THE INVESTMENTS OF THE SUBACCOUNTS BE CHANGED?
This would happen if laws or regulations changed, the investment became
unavailable, or, in the judgement of RiverSource Life Insurance Company,
the investments were no longer suitable for the subaccounts. If any of
these situations occurred, we would have the right to substitute
investments other than those shown under Policy Data. We would first
seek the approval of the Securities and Exchange Commission and, where
required, the insurance regulator of the state where this policy is
delivered.
CAN TRANSFERS BE MADE AMONG YOUR SUBACCOUNTS AND FIXED ACCOUNT?
By written request or other requests acceptable to us, you may transfer
all or part of the value of a subaccount to one or more of the other
subaccounts or to the fixed account. The amount transferred, however,
must be at least: 1) $250; or 2) the total value in the subaccount, if
less. We reserve the right to limit such transfers to 5 per policy year.
We may suspend or modify this transfer privilege at any time with the
necessary approval of the Securities and Exchange Commission.
You may also transfer from the fixed account to the subaccounts once a
year, but only on the policy anniversary or within 30 days after such
policy anniversary. If you make this transfer, you cannot transfer from
the subaccounts back into the fixed account until the next policy
anniversary. If we receive your written request within 30 days before
the policy anniversary date, the transfer from the fixed account to the
subaccounts will be effective on the anniversary date. If we receive
your written request within 30 days after the policy anniversary date,
the transfer from the fixed account to the subaccounts will be effective
on the date we receive the request. The minimum transfer amount is $250
or the fixed account value minus indebtedness, if less. The maximum
transfer amount is the fixed account value, minus indebtedness. We may
suspend or modify this transfer privilege at any time.
30061 Page 20
PAYMENT OF POLICY PROCEEDS
HOW ARE THE PROCEEDS PAID?
We will pay the proceeds in a single sum unless a payment option has
been selected. The date on which the proceeds are paid in a lump sum or
first placed under a payment option is the settlement date. All proceeds
are payable at our home office. We will pay interest at a rate not less
than 4% per year on single sum death proceeds from the date of the
insured's death to the settlement date.
WHAT ARE THE PAYMENT OPTIONS OTHER THAN A SINGLE SUM?
During the insured's lifetime, you may request in writing that we pay
the proceeds under one or more of the payment options shown below, or
that we change a prior election. You may elect other payment options not
shown if we agree. Unless we agree otherwise, however, a payment option
may be selected only if the payments are to be made to a natural person
in that person's own right. Also, the amount of proceeds placed under a
payment option must be at least $5,000.
OPTION A - INTEREST PAYMENTS
We will pay interest on proceeds placed under this option at the rate of
3% per year compounded annually. We will make regular interest payments
at intervals and for a period that is agreeable to both you and us. At
the end of any payment interval, a withdrawal of proceeds may be made in
the amount of at least $100. At any time, all of the proceeds that
remain may be withdrawn or placed under a different payment option
approved by us.
OPTION B - PAYMENTS FOR A SPECIFIED PERIOD
We will make monthly payments for a specified number of years. The
amount of each monthly payment for each $1,000 placed under this option
is shown in the table below. Monthly payment amounts for years not shown
will be furnished upon request.
[Download Table]
OPTION B TABLE
NUMBER MONTHLY
OF YEARS PAYMENT/$1000
-------- -------------
10 9.61
15 6.87
20 5.51
25 4.71
30 4.18
OPTION C - LIFETIME INCOME
We will make monthly payments for the life of the person (the payee) who
is to receive the income. Payment will be guaranteed for either 10, 15,
or 20 years. The amount of each monthly payment for each $1,000 placed
under this option will be based on our Table of Settlement Rates in
effect at the time of the first payment. The amounts will not be less
than those shown in the table below for the sex and Adjusted Age of the
payee on the due date of the first payment. (See Adjusted Age Table.)
Monthly income amounts for any adjusted age not shown in the following
table will be furnished upon request.
30061 Page 21
OPTION C TABLE M = MALE F = FEMALE
[Enlarge/Download Table]
-----------------------------------------------------------------------------------------------------------------------------------
ADJUSTED AGE LIFE INCOME PER $1,000 WITH
PAYEE PAYMENTS GUARANTEED FOR
----- -----------------------
10 YEARS 15 YEARS 20 YEARS
-------- -------- --------
M F M F M F
-----------------------------------------------------------------------------------------------------------------------------------
50 4.22 3.89 4.17 3.86 4.08 3.82
55 4.62 4.22 4.53 4.18 4.39 4.11
60 5.14 4.66 4.96 4.57 4.71 4.44
65 5.81 5.22 5.46 5.05 5.02 4.79
70 6.61 5.96 5.96 5.60 5.27 5.12
75 7.49 6.89 6.38 6.14 5.42 5.35
ADJUSTED AGE TABLE
The adjusted age is the age on the payee's nearest birthday, minus an
"adjustment" based on the year of birth of the payee as follows:
[Download Table]
CALENDAR CALENDAR
YEAR OF YEAR OF
PAYEE'S BIRTH ADJUSTMENT PAYEE'S BIRTH ADJUSTMENT
------------- ---------- ------------- ----------
Prior to 1920 0 1945-1949 6
1920 - 1924 1 1950-1959 7
1925 - 1929 2 1960-1969 8
1930 - 1934 3 1970-1979 9
1935 - 1939 4 1980-1989 10
1940 - 1944 5 After 1989 11
WILL A SUPPLEMENTAL CONTRACT BE PREPARED IF PROCEEDS ARE PLACED UNDER A
PAYMENT OPTION?
If a payment option is requested, we will prepare an agreement stating
the terms under which payments will be made. The agreement will include
statements about withdrawal value, if any, and to whom remaining
proceeds will be paid if the payee dies.
CAN A BENEFICIARY REQUEST A PAYMENT OPTION?
After the insured's death but before any proceeds are paid, the
beneficiary may select a payment option by written request to us. You
may provide, however, that the beneficiary will not be permitted to
change the payment option you have selected.
ARE EXCESS INTEREST EARNINGS PAYABLE BY US?
On each anniversary of the settlement date, we will determine excess
interest, if any, on payment option deposits. Any such excess interest
will be paid under Option A or B.
30061 Page 22
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FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
- POLICY CONTINUES UNTIL DEATH OR SURRENDER.
- FLEXIBLE PREMIUMS PAYABLE AS DESCRIBED HEREIN.
- NO-LAPSE GUARANTEE AS DESCRIBED HEREIN.
- THIS POLICY IS NONPARTICIPATING. DIVIDENDS ARE NOT PAYABLE.
RIVERSOURCE LIFE INSURANCE COMPANY
(70100 Ameriprise Financial Center)
(Minneapolis, Minnesota 55474)
Dates Referenced Herein and Documents Incorporated by Reference
| Referenced-On Page |
|---|
| This ‘485BPOS’ Filing | | Date | | First | | Last | | | Other Filings |
|---|
| |  |
| Filed on / Effective on: | | 1/3/07 | | | | | | | 485BPOS |
| | 7/6/06 | | 6 |
| | 7/15/02 | | 3 | | 7 |
| | 1/15/98 | | 1 |
| List all Filings |
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