PROSPECTUS SUPPLEMENT DATED DECEMBER 15, 1998
SPECIAL FEATURES OF THE DAIMLERCHRYSLER 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 that describes the unique features of the
GVUL Contract that Prudential ("we" or "us") has issued to DaimlerChrysler
Corporation ("DaimlerChrysler Corporation 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 DaimlerChrysler Corporation and certain subsidiaries
working full-time on a regular basis or part-time employees officially
classified by DaimlerChrysler as "reduced hour" or "job share" employees.
All spouses of eligible active employees of DaimlerChrysler Corporation and
certain subsidiaries may enroll provided they are younger than 65 years old,
Spouses who are employees of DaimlerChrysler 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 DaimlerChrysler
Corporation 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 DaimlerChrysler
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.
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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 $l,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 DaimlerChrysler
Corporation 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 $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?
We will keep the insurance 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 DaimlerChrysler Corporation 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
$260,000, 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 AN 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.
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<PAGE>
DEATH BENEFIT
HOW IS THE GVUL DEATH BENEFIT CALCULATED?
The GVUL death benefit under the DaimlerChrysler Corporation 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 DaimlerChrysler Corporation 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 DaimlerChrysler Corporation Contract ends.
PREMIUMS
HOW ARE PREMIUMS PAID?
DaimlerChrysler 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 DaimlerChrysler Corporation 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 DaimlerChrysler Corporation Contract.
However, you may continue your GVUL Coverage while on approved Disability Leave
of Absence. In these situations, we will bill you 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 DaimlerChrysler Corporation active employees. We
will bill you 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 DaimlerChrysler Corporation for any
reason. This is referred to as portability, Your rates for coverage will be
higher than your active rates. We will bill you 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 DaimlerChrysler Corporation or Prudential may terminate the Group
Contract, although we will only do so under certain limited conditions described
in the Prospectus on page 39. If the Contract is terminated, DaimlerChrysler
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 DaimlerChrysler 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 DaimlerChrysler Corporation 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 DaimlerChrysler Corporation 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% annually, In addition, each of the underlying mutual
funds deducts 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 ILLUSTRATIONS 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 DaimlerChrysler Corporation
Contract), the following two illustrations have been prepared to illustrate
how the DaimlerChrysler Corporation Contract works. The assumptions used in
the following illustrations are as stated on pages Tl and T2 of the
Prospectus, except that the first illustration uses the DaimlerChrysler
Corporation Contract's current charges, the second uses the DaimlerChrysler
Corporation 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 DaimlerChrysler Corporation Contract and
that a premium of $100 is paid at issuance and monthly thereafter.
Upon request, we 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 Not)
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
a 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 66,751 114,287 137,060 196,735 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.
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.
</FN>
</TABLE>
<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 MINIMUM CONTRACTUAL 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 0 108,675 118,140 0 8,855 18,120
25 51,051 0 104,962 120,095 0 4,942 20,075
30 68,761 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.
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.
</FN>
</TABLE>
<PAGE>
WHEN ARE CHARGES DEDUCTED?
We calculate and deduct the charges monthly from your Certificate Fund,
depending upon whether you generally pay premiums by automatic payroll deduction
or directly to Prudential. We deduct these charges pro-rata from each Subaccount
and the Fixed Account.
if you pay premiums by automatic payroll deduction, we 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 we credit automatic
payroll deduction premium payments we receive from DaimlerChrysler Corporation.
DaimlerChrysler Corporation has informed us that it intends to forward automatic
payroll deduction premium payments by the beginning of each month. We
accordingly anticipate that the Monthly Deduction Day will fall around the
beginning of each month, with the exact dates dependent upon when
DaimlerChrysler Corporation forwards the payment. If DaimlerChrysler Corporation
has not transferred the automatic payroll deduction premium payments by the 45th
day following the first day of a particular month, however, we 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), we 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 we may charge under the contract
on pages 34-35. Under no circumstances will we exceed these charges. Within
these maximums, we may vary the amount or level of charges. In general, we 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, we 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 DaimlerChrysler Corporation 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
DaimlerChrysler Corporation 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 freelook 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.
GL.98.1056 Ed. 12-98
8
