PROSPECTUS SUPPLEMENT DATED OCTOBER 16, 1998
SPECIAL FEATURES OF THE CHRYSLER CORPORATION PLAN
As described more fully in the accompanying May 1, 1998 prospectus
("Prospectus") for Prudential's Group Variable Universal Life ("GVUL") Contract,
the particular features of each group contract issued by Prudential may vary.
This is a supplement to the Prospectus to describe the unique features of the
GVUL Contract that Prudential ("we" or "us") has issued to Chrysler Corporation
("Chrysler Contract"). Many of the defined terms that are used in this
supplement are defined in the Prospectus. Retain this supplement with your GVUL
Prospectus and, if you elect coverage, your GVUL certificate.
ELIGIBILITY AND ENROLLMENT
WHO IS ELIGIBLE FOR COVERAGE?
All salaried employees of Chrysler Corporation and certain subsidiaries working
full-time on a regular basis or part-time employees officially classified by
Chrysler as "reduced hour" or "job share" employees.
All spouses of eligible active employees of Chrysler Corporation and certain
subsidiaries may enroll provided they are younger than 65 years old. Spouses who
are employees of Chrysler Corporation may not be covered both as an employee and
a spouse and must not be confined for medical care or treatment at home or
elsewhere. If, after the death of a spouse, we become aware that a spouse
enrolled as both an employee and a spouse, we will pay the benefit as an
employee and return the premiums paid as a spouse. We will retain any investment
gain or loss. Refer to page 28 of the Prospectus for further information on how
the spouse is an eligible applicant owner.
Children are eligible for Dependent Term Life coverage from 14 days old up to
age 19, or up to 25 years if unmarried, full-time students. The employee or the
spouse must be participating, and dependent children must not be confined for
medical care or treatment at home or elsewhere. Your children include your
legally adopted children and each of your stepchildren and foster children who
reside with you and depend wholly upon you for support and maintenance.
Unmarried children who reach the 19 or 25 year age limit, who are physically or
mentally incapable of self-support, may remain covered under the Chrysler
Contract, provided they otherwise meet the conditions for being eligible
dependent children. Proof of incapacity must be furnished within 31 days after
the coverage would otherwise end.
Eligible children cannot be covered as both employees of Chrysler Corporation
and as dependents. Additionally, if both parents are employees, children cannot
be covered by more than one parent.
IS THERE A LIMITED ENROLLMENT PERIOD?
No, you may enroll at any time during the year. However, to enroll without
providing evidence of insurability, you must apply within 31 days after the date
you become eligible. For the 1999 annual enrollment, current active plan
participants can increase coverage by up to one times annual base salary to a
total maximum of $1,500,000 without providing evidence of insurability provided
they have not been previously denied Group Universal Life Insurance (GULI).
Additionally, active non-participants can elect to enroll, without providing
evidence of insurability, for up to one times annual base salary to a total
maximum of $1,500,000.
COVERAGE INFORMATION
HOW MUCH COVERAGE MAY AN ELIGIBLE EMPLOYEE OBTAIN?
If you are an eligible employee, you can choose from one of eight plans, ranging
from a minimum of $10,000 to an equivalent of five times annual base salary,
with a maximum of $3,000,000. For chosen plans that are multiples of salary, the
amount of insurance will be rounded to the next higher multiple of $1,000 if it
is not already an even multiple of $1,000.
HOW MUCH COVERAGE MAY AN ELIGIBLE DEPENDENT OBTAIN?
Eligible spouses can elect one of four plans, $100,000, $75,000, $50,000, or
$25,000, subject to a maximum of three times the employee's annual base salary.
In addition, you may purchase term insurance of $1,000, $5,000, $10,000, $15,000
or $20,000 per dependent child.
1
GL.98.1056 Ed.10-98
<PAGE>
WHEN IS EVIDENCE OF INSURABILITY REQUIRED?
FOR EXISTING CURRENT EMPLOYEES: During the annual enrollment, if you enroll for
more than one times annual base salary for an amount over $1,500,000, or if you
wish to enroll for any coverage after the annual enrollment period ends, you
must furnish evidence of insurability.
FOR NEW HIRES: If you choose to enroll for an amount over $1,500,000 or wish to
enroll for any coverage amount after your 31-day initial enrollment period has
expired, you will have to furnish evidence of insurability.
FOR DEPENDENTS: Evidence of insurability is not required for new spouse
enrollments within 31 days of eligibility (date of marriage), or for new child
enrollments within 45 days of eligibility (date of birth, adoption, court
decree, etc.). Evidence of insurability will be required for spouses/children
who: (1) initially decline and later enroll or, (2) elect to increase coverage.
ARE INCREASES IN COVERAGE AVAILABLE?
You may increase the face amount of your GVUL coverage under the Chrysler
Contract at any time, but those amounts will be subject to evidence of
insurability. Evidence of insurability is not required if you increase your GVUL
coverage up to a total maximum of up to $1,500,000 during the annual enrollment
period.
WILL MY COVERAGE AMOUNT EVER DECREASE?
At age 70, your face amount of insurance will be reduced to 60% of your face
amount before age 70. At ages 75 and 80, your face amount of insurance will be
further reduced to 40% and 25% respectively of your face amount before age 70,
but will not be less than $10,000. If the amount of reduced insurance is not a
multiple of $1,000, it will be adjusted to the next higher multiple of $1,000.
For full details, please see page 33 of the Prospectus. For information on
possible tax implications, see page 41 of the Prospectus, however, you should
consult your own financial or tax advisor on such issues.
WILL MY INSURANCE COVERAGE LAPSE IF MY
SELECTED INVESTMENT OPTIONS PERFORM POORLY?
The insurance will remain in force as long as the balance in the Certificate
Fund is sufficient to pay the monthly charges under the Certificate. If the
balance in the Certificate Fund is not sufficient to pay any month's charges,
and you fail to make premium payments sufficient to bring the balance above this
minimum amount during the grace period, your insurance may lapse.
IS THERE AN ACCELERATED DEATH BENEFIT PROVISION?
Yes, the Chrysler Contract includes an accelerated death benefit provision
called the Living Benefit Option, if you are diagnosed with a terminal illness
and a life expectancy of 6 months or less. An employee can elect to accelerate
up to 50% of the death benefit, subject to a maximum of $250,000, and a spouse
can elect to accelerate up to 50% of the death benefit, subject to a maximum of
$50,000.
AM I ENTITLED TO ADDITIONAL BENEFITS?
Yes, you are eligible for the Accelerated Death Benefit and Dependent Life
Benefits described earlier in this Prospectus Supplement.
ARE THERE ANY EXCLUSIONS, LIMITATIONS OR COVERAGE AMOUNT REDUCTIONS ON MY PLAN?
At age 70, your face amount of insurance will be reduced to 60% of your face
amount before age 70. At ages 75 and 80, your face amount of insurance will be
further reduced to 40% and 25% respectively of your face amount before age 70
but will not be less than $10,000. If the amount of reduced insurance is not a
multiple of $1,000, it will be adjusted to the next higher multiple of $1,000.
For full details, please see page 33 of the Prospectus. For information on
possible tax implications, see page 41 of the Prospectus, however, you should
consult your own financial or tax advisor on such issues.
Additionally, if you commit suicide within the first two years of the effective
date of your coverage, the death benefit will be limited to a refund of premium,
plus any cash value (less any loans and loan interest). Similarly, if you commit
suicide within two years of the effective date of a subsequent increase in
coverage, the death benefit for that increase will be limited to a refund of
premium.
2
<PAGE>
DEATH BENEFIT
HOW IS THE GVUL DEATH BENEFIT CALCULATED?
The GVUL death benefit under the Chrysler Contract is your face amount of
coverage plus the value of your invested Certificate Fund (minus any loan, loan
interest and outstanding charges, if applicable) as of the date of your death.
More detail can be found in the "Death Benefits" section of the Prospectus. The
death benefit will in some cases exceed this amount in order to satisfy the
"cash value accumulation test" of the Internal Revenue Code. Consult the
Prospectus, page 31, for further details.
HOW IS THE DEATH BENEFIT PAID?
Under the Chrysler Contract, the benefit is paid in a lump sum or by deposit in
the Alliance Account (described on pages 31 and 32 of the Prospectus), an
interest bearing account upon which the beneficiary can write drafts. The
Alliance Account gives you access to additional settlement options from which
you may choose.
LOANS AND WITHDRAWALS
WHAT ARE THE TERMS OF A POLICY LOAN?
AMOUNT AVAILABLE FOR BORROWING: You may borrow from a minimum of $200 to a
maximum of 90% of the value of your Certificate Fund (investment options) less
any existing loans, accrued interest, outstanding charges, and the next month's
charges. If you take a loan, you may borrow money from the Certificate Fund
either in proportion to the fund balances at the time the loan is taken or you
may take a loan from specific investment options at amounts you request.
INTEREST RATE: The net cost of the loan is equal to an annual rate of 2%. For
further details, including loan repayment, consult page 37 of the Prospectus.
WHAT ARE THE TERMS OF PARTIAL CASH WITHDRAWALS AND FULL CASH SURRENDERS?
PARTIAL CASH WITHDRAWALS: You may make a partial withdrawal from a minimum of
$200 up to a maximum amount that would reduce the Certificate Fund (less any
existing loans, accrued interest, and outstanding charges) to an amount equal to
the next month's charges. Any partial withdrawal greater than that amount will
not be permitted because it would cause the Certificate to default. If you make
a partial withdrawal, you may withdraw the money from the Certificate Fund
either in proportion to the fund balances at the time the withdrawal is made or
you may make a withdrawal from specific investment options at amounts you
request.
FULL CASH SURRENDERS: You may also surrender your certificate for its full Cash
Surrender Value at any time. If you choose to do so, your GVUL coverage under
the Chrysler Contract ends.
PREMIUMS
HOW ARE PREMIUMS PAID?
Chrysler Corporation will remit regular premiums to Prudential via payroll
deductions on a monthly basis for active eligible employees and covered
dependents. Retirees, employees on an approved leave of absence, and employees
who elect portability will be billed directly and are responsible for remitting
their premiums to Prudential.
HOW MUCH MONEY CAN I CONTRIBUTE TO MY INVESTMENT OPTIONS?
You can select any dollar amount you wish to contribute, however, the minimum
investment option contribution is $10, subject to annual and lifetime
limitations set by the Internal Revenue Service. For further details and tax
implications, see page 41 of the Prospectus.
MAY I MAKE ADDITIONAL PREMIUM PAYMENTS?
In addition to regularly scheduled premium payments, you may make lump sum
premium payments at any time. The minimum lump sum premium payment is $100,
subject to annual and lifetime limitations set by the Internal Revenue Service.
For further details and tax implications, see page 41 of the Prospectus.
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<PAGE>
INVESTMENT OPTIONS
WHAT INVESTMENT OPTIONS ARE AVAILABLE?
The Chrysler Contract has the following investment options:
Prudential Series Fund Money Market Portfolio
Prudential Series Fund Diversified Bond Portfolio
Investors Fund Kemper Series High Yield Portfolio
Prudential Series Fund Flexible Managed Portfolio
Prudential Series Fund Equity Income Portfolio
Prudential Series Fund Stock Index Portfolio
Prudential Series Fund Equity Portfolio
Prudential Series Fund Jennison Portfolio
MFS Research Series
T. Rowe Price Mid-Cap Growth Portfolio
Alliance Capital Premier Growth Fund Portfolio
Dreyfus Disciplined Stock Portfolio
MFS Emerging Growth Series
T. Rowe Price New America Growth Portfolio
Prudential Series Fund Global Portfolio
Templeton International Fund Class 2
The investment objectives of these portfolios are described in the accompanying
Prospectus, which also describes their fees and expenses. Please refer to your
Enrollment Kit for further information on the funds' past performance. You may
also allocate funds to a Fixed Account, which earns interest at a rate
determined annually but guaranteed not to be less than 4%.
CHANGES IN COVERAGE STATUS
WHAT HAPPENS IF I BECOME DISABLED?
There is no disability benefit under the GVUL Chrysler Contract. However, you
may continue your GVUL Coverage while on approved Disability Leave of Absence.
In these situations, you will be billed by Prudential for premium payments plus
a direct bill charge of $3 per bill.
CAN I CONTINUE COVERAGE WHEN I RETIRE?
You may continue your GVUL coverage if you retire. Your rates for coverage will
follow the rate schedule for Chrysler Corporation active employees. You will be
billed by Prudential for premium payments plus a direct bill charge of $3 per
bill.
CAN I CONTINUE COVERAGE IF I LEAVE THE
COMPANY FOR REASONS OTHER THAN RETIREMENT?
You may continue coverage if you leave Chrysler Corporation for any reason. This
is referred to as portability. Your rates for coverage will be higher than your
active rates. You will be billed by Prudential for premium payments plus a
direct bill charge of $3 per bill. Spousal GVUL coverage is portable on the same
terms as the employee if the employee leaves the eligible group.
WHEN DOES COVERAGE END?
At age 100, your GVUL coverage ends and you will have the options described in
the section of the Prospectus entitled "ISSUANCE OF A CERTIFICATE", page 28.
WHAT HAPPENS IF THE GROUP CONTRACT IS TERMINATED?
Either Chrysler Corporation or Prudential may terminate the Group Contract,
although Prudential will only do so under certain limited conditions described
in the Prospectus on page 39. If the Contract is terminated, Chrysler
Corporation may replace it with another life insurance contract that, like the
GVUL contract, permits you to accumulate cash value. In that case, you will have
the option of (i) transferring the value of your investment options less any
loans, accrued interest, and outstanding charges to the new contract; or (ii)
receiving that same amount in a lump sum payment.
4
<PAGE>
If Chrysler Corporation does not replace the contract with a life insurance
contract that permits you to accumulate cash value, then you will have the
option of converting to a cash value individual life insurance policy, electing
a paid-up life insurance policy in which no future premiums would be paid, or
receiving a lump sum payment as previously described. For additional details,
see the Prospectus, page 39.
CHARGES AND EXPENSES
WHAT ARE THE CHARGES?
The current charges under the Chrysler Contract are as follows:
(1) FRONT-END CHARGES. A charge of 1.92% is deducted from each premium payment.
This charge is to compensate Prudential for incurring state and local
premium taxes (currently 1.57%) and for the impact of the federal deferred
acquisition cost tax (currently 0.35%).
(2) DAILY CHARGE AGAINST SUBACCOUNT ASSETS. A daily charge is deducted from the
assets of the subaccounts to compensate Prudential for assuming mortality
and expense risks. The subaccounts are separate from Prudential's general
account, holding all of the investments in the portfolios of outside fund
managers. For the Chrysler Contract, the current daily charge for mortality
and expense risks is equivalent to an effective annual rate of 0.45%. The
total mortality and expense risk charge is guaranteed not to exceed 0.90%.
In addition, each of the underlying mutual funds deduct investment
management fees and expenses, as described in the Prospectus for the
particular fund.
(3) MONTHLY CHARGES. There is a monthly charge for the cost of insurance
deducted from the value of your investment options and a monthly
administrative expense of $1 to pay for administrative services. The
calculation of this charge is described on page 34 of the Prospectus.
(4) IF APPLICABLE: OTHER CHARGES. There are currently no charges for loans,
partial withdrawals or additional statements.
Each certificate year, the first 12 transfers among investment options may
be made without a transaction charge. After the 12th transfer in each
certificate year, you will be charged a transaction fee of $20 per transfer.
In addition, while you will receive a statement detailing activity under
your certificate on a quarterly basis, such reports can be requested at any
time.
(5) HYPOTHETICAL ILLUSTRATION OF DEATH BENEFITS AND CASH SURRENDER VALUES. The
Prospectus contains two hypothetical illustrations of how the GVUL contract
works. See HYPOTHETICAL ILLUSTRATIONS OF DEATH BENEFITS AND CASH SURRENDER
Values, beginning on page 4. Because those illustrations are based on
generic GVUL charges and investment portfolios, (instead of the charges
negotiated for, and the funds selected by the Chrysler Contract), the
following two illustrations have been prepared to illustrate how the
Chrysler Contract works. The assumptions used in the following illustrations
are as stated on pages T1 and T2 of the Prospectus, except that the first
illustration uses the Chrysler Contract's current charges, the second uses
the Chrysler Contract's maximum charges, and both assume that the
Certificate Fund has been invested in equal amounts in each of the 16
variable funds available with the Chrysler Contract and that a premium of
$100 is paid at issuance and monthly thereafter.
Upon request, Prudential will provide you with comparable hypothetical
illustrations for a certificate based on the funds you are interested in and
the premium payments you plan to make.
5
<PAGE>
<TABLE>
<CAPTION>
ILLUSTRATIONS
GROUP VARIABLE UNIVERSAL LIFE INSURANCE CERTIFICATE
SPECIFIED FACE AMOUNT: $100,000
ISSUE AGE 40
ASSUME PAYMENT OF $100 MONTHLY PREMIUMS FOR ALL YEARS
USING CURRENT EXPENSE CHARGES AND CURRENT NON-SMOKER COST OF INSURANCE CHARGES
Death Benefit (1) Cash Surrender Value (1)
------------------------------------------------ --------------------------------------------------
Assuming Hypothetical Gross (and Net) Assuming Hypothetical Gross (and Net)
Annual Investment Return of Annual Investment Return of
End of Premiums ------------------------------------------------ --------------------------------------------------
Certificate Accumulated 0% Gross 4.5% Gross 9% Gross 0% Gross 4.5% Gross 9% Gross
Year at 4% per year (-1.17%) Net (3.33% Net) (7.83% Net) (-1.17%) Net (3.33% Net) (7.83% Net)
----------- -------------- ------------ ------------ -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $1,226 $101,064 $101,090 $101,116 $1,064 $1,090 $1,116
2 2,501 102,116 102,217 102,319 2,116 2,217 2,319
3 3,827 103,155 103,381 103,617 3,155 3,381 3,617
4 5,206 104,183 104,584 105,016 4,183 4,584 5,016
5 6,640 105,198 105,827 106,525 5,198 5,827 6,525
6 8,131 106,143 107,051 108,090 6,143 7,051 8,090
7 9,682 107,077 108,316 109,778 7,077 8,316 9,778
8 11,295 108,000 109,623 111,598 8,000 9,623 11,598
9 12,973 108,912 110,974 113,561 8,912 10,974 13,561
10 14,718 109,814 112,370 115,678 9,814 12,370 15,678
15 24,546 113,366 119,182 128,017 13,366 19,182 28,017
20 36,503 115,629 125,989 144,644 15,629 25,989 44,644
25 51,051 116,850 132,983 167,734 16,850 32,983 67,734
30 68,751 114,287 137,060 196,735 14,287 37,060 96,735
35 90,286 73,299 103,463 200,806 13,299 43,463 140,806
40 116,486 52,459 91,108 257,078 12,459 51,108 203,202(2)
<FN>
(1) Assumes no loan or partial withdrawal has been made.
(2) As illustrated, the certificate's Death Benefit has been increased in order to satisfy the Definition of Life Insurance.
</FN>
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT
BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND ON A NUMBER OF FACTORS INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN OWNER, PREVAILING INTEREST RATES, FEDERAL AND
STATE INCOME TAXES, AND RATES OF INFLATION. THE DEATH BENEFIT AND CASH SURRENDER VALUE FOR A CERTIFICATE WOULD BE DIFFERENT FROM
THOSE SHOWN IF THE ACTUAL RATE OF RETURN AVERAGED 0%, 4.5%, AND 9% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THOSE
AVERAGES FOR INDIVIDUAL CERTIFICATE YEARS. NO REPRESENTATIONS CAN BE MADE BY PRUDENTIAL OR THE FUNDS THAT THESE HYPOTHETICAL RATES
OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR OVER ANY PERIOD OF TIME.
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
ILLUSTRATIONS
GROUP VARIABLE UNIVERSAL LIFE INSURANCE CERTIFICATE
SPECIFIED FACE AMOUNT: $100,000
ISSUE AGE 40
ASSUME PAYMENT OF $100 MONTHLY PREMIUMS FOR ALL YEARS
USING MAXIMUM CONRACTUAL CHARGES
Death Benefit (1) Cash Surrender Value (1)
------------------------------------------------ -------------------------------------------------
Assuming Hypothetical Gross (and Net) Assuming Hypothetical Gross (and Net)
Annual Investment Return of Annual Investment Return of
End of Premiums ------------------------------------------------ ------------------------------------------------
Certificate Accumulated 0% Gross 4.5% Gross 9% Gross 0% Gross 4.5% Gross 9% Gross
Year at 4% per year (-1.62%) Net (2.88% Net) (7.38% Net) (-1.62%) Net (2.88% Net) (7.38% Net)
- ------------ -------------- ------------ ------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $1,226 $100,721 $100,739 $100,756 $706 $724 $741
2 2,501 101,404 101,472 101,540 1,384 1,452 1,520
3 3,827 102,046 102,195 102,351 2,026 2,175 2,331
4 5,206 102,647 102,908 103,190 2,627 2,888 3,170
5 6,640 103,205 103,607 104,055 3,185 3,587 4,035
6 8,131 103,717 104,289 104,946 3,697 4,269 4,926
7 9,682 104,182 104,951 105,862 4,162 4,931 5,842
8 11,295 104,600 105,591 106,804 4,580 5,571 6,784
9 12,973 104,967 106,204 107,769 4,947 6,184 7,749
10 14,718 105,280 106,786 108,756 5,260 6,766 8,736
15 24,546 0 (2) 108,924 113,773 0 (2) 8,904 13,753
20 36,503 0 108,875 118,140 0 8,855 18,120
25 51,051 0 104,962 120,095 0 4,942 20,075
30 68,751 0 0 (2) 115,933 0 0 (2) 15,913
35 90,286 0 0 70,970 0 0 10,950
40 116,486 0 0 42,737 0 0 2,717
<FN>
(1) Assumes no loan or partial withdrawal has been made.
(2) Based on the interest rate and charges illustrated, the premiums paid are
insufficient to keep the certificate in force. The certificate would lapse
under this scenario.
</FN>
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND ON A NUMBER OF FACTORS INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN OWNER, PREVAILING INTEREST RATES, FEDERAL AND
STATE INCOME TAXES, AND RATES OF INFLATION. THE DEATH BENEFIT AND CASH SURRENDER VALUE FOR A CERTIFICATE WOULD BE DIFFERENT FROM
THOSE SHOWN IF THE ACTUAL RATE OF RETURN AVERAGED 0%, 4.5%, AND 9% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THOSE
AVERAGES FOR INDIVIDUAL CERTIFICATE YEARS. NO REPRESENTATIONS CAN BE MADE BY PRUDENTIAL OR THE FUNDS THAT THESE HYPOTHETICAL RATES
OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR OVER ANY PERIOD OF TIME.
</TABLE>
7
<PAGE>
WHEN ARE CHARGES DEDUCTED?
Prudential calculates and deducts the charges monthly from your Certificate
Fund, depending upon whether you generally pay premiums by automatic payroll
deduction or directly to Prudential. Prudential deducts these charges pro-rata
from each Subaccount and the Fixed Account.
If you pay premiums by automatic payroll deduction, Prudential generally will
deduct the monthly Certificate Fund charges once per month, on the Monthly
Deduction Day. The Monthly Deduction Day will coincide with the day that
Prudential credits automatic payroll deduction premium payments it receives from
Chrysler Corporation. Chrysler Corporation has informed Prudential that it
intends to forward automatic payroll deduction premium payments by the beginning
of each month. Prudential accordingly anticipates that the Monthly Deduction Day
will fall around the beginning of each month, with the exact dates dependent
upon when Chrysler Corporation forwards the payment. If Chrysler Corporation has
not transferred the automatic payroll deduction premium payments by the 45th day
following the first day of a particular month, however, Prudential will deduct
the month's Certificate Fund charges on the next Business Day following that
45th day. If you do not generally pay premiums by automatic payroll deduction
(including, for example, persons who are no longer Eligible Group Members or
spouses of Eligible Group Members), Prudential will deduct the full monthly
Certificate Fund charges on the first Business Day of each Month.
WHEN MAY CHARGES CHANGE?
The Prospectus lists the maximum charges that Prudential may charge under the
contract on page 34. Under no circumstances will Prudential exceed these
charges. Within these maximums, Prudential may vary the amount or level of
charges. In general, Prudential will not change these amounts more often than
once a year, in which case you will receive information in the new Prospectus.
In some cases, Prudential may make changes more frequently, in which case you
will be notified.
WHAT ARE THE OTHER PRIMARY FEATURES OF THE PLAN?
The accompanying Prospectus contains considerable information about standard
features of GVUL applicable to the Chrysler Contract, including the free-look
period, transfers, dollar cost averaging, loans, premium allocations, the right
to exchange for paid-up insurance, lapses, reinstatements, contestability, and
tax treatment of the benefits. Please refer to the Prospectus for information on
these and other features of the Chrysler Contract. In addition, your Enrollment
Kit explains key features of your plan.
WHOM DO I CONTACT TO EFFECT A TRANSACTION?
You may contact the Prudential Customer Service Center at 1-800-354-6903 to
obtain the proper forms.
WHAT ARE MY CANCELLATION RIGHTS?
A certificate may be returned for a refund within 10 days after the date you
receive it. This is referred to as the free-look period on page 29 of the
Prospectus. Please read this section carefully for full details. During the
free-look period, your premium is deposited in the Fixed Account.
WHOM DO I CONTACT TO ANSWER MY OTHER QUESTIONS?
You may contact Prudential's Customer Service Center at 1-800-354-6903.
8