As filed with the Securities and Exchange Registration No. 33-34370*
Commission on December 16, 1997 Registration No. 811-2512
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
- -------------------------------------------------------------------------------
POST-EFFECTIVE AMENDMENT NO. 32 TO
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
and Amendment to
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
- --------------------------------------------------------------------------------
Variable Annuity Account B of Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, RE4A, Hartford, Connecticut 06156
Depositor's Telephone Number, including Area Code: (860) 273-4686
Julie E. Rockmore, Counsel
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, RE4A, Hartford, Connecticut 06156
(Name and Address of Agent for Service)
- --------------------------------------------------------------------------------
It is proposed that this filing will become effective:
[X] 60 days after filing pursuant to paragraph (a)(1) of Rule 485
[ ] on _______________________ pursuant to paragraph (a)(1) of Rule 485
*Pursuant to Rule 429(a) under the Securities Act of 1933, Registrant has
included a combined prospectus under this Registration Statement which includes
all the information which would currently be required in a prospectus relating
to the following earlier Registration Statement: 33-87932.
<PAGE>
VARIABLE ANNUITY ACCOUNT B
CROSS REFERENCE SHEET
LOCATION -
FORM N-4 PROSPECTUS DATED NOVEMBER 28, 1997,
ITEM NO. PART A (PROSPECTUS) AND AS AMENDED FEBRUARY 16, 1998
1 Cover Page............................. Cover Page, and as amended
2 Definitions............................ Definitions, and as amended
3 Synopsis............................... Prospectus Summary, and as
amended; Fee Table, and as
amended
4 Condensed Financial Information........ Condensed Financial Information
5 General Description of Registrant, The Company; Variable Annuity
Depositor, and Portfolio Companies..... Account B; The Funds, and as
amended
6 Deductions and Expenses................ Charges and Deductions, and as
amended; Distribution
7 General Description of Variable
Annuity Contracts...................... Purchase, and as amended;
Miscellaneous
8 Annuity Period......................... Annuity Period, and as amended
9 Death Benefit.......................... Death Benefit During
Accumulation Period; Death
Benefit Payable During the
Annuity Period
10 Purchases and Contract Value........... Purchase, and as amended;
Contract Valuation, and as
amended
11 Redemptions............................ Right to Cancel; Withdrawals,
and as amended
12 Taxes.................................. Tax Status, and as amended
13 Legal Proceedings...................... Miscellaneous - Legal Matters
and Proceedings
14 Table of Contents of the Statement Contents of the Statement of
of Additional Information.............. Additional Information
<PAGE>
LOCATION -
FORM N-4 PART B (STATEMENT OF STATEMENT OF ADDITIONAL INFORMATION
ITEM NO. ADDITIONAL INFORMATION) DATED FEBRUARY 16, 1998
15 Cover Page.............................. Cover Page
16 Table of Contents....................... Table of Contents
17 General Information and History......... General Information and
History
18 Services................................ General Information and
History; Independent Auditors
19 Purchase of Securities Being Offered.... Offering and Purchase of
Contracts
20 Underwriters............................ Offering and Purchase of
Contracts
21 Calculation of Performance Data......... Performance Data Average
Annual Total Return Quotations
22 Annuity Payments........................ Annuity Payments
23 Financial Statements.................... Financial Statements
Part C (Other Information)
Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C to this Registration Statement.
<PAGE>
PARTS A AND B
The Prospectus is incorporated into Part A of this Post-Effective Amendment No.
32 by reference to Post-Effective Amendment No. 31 to the Registration Statement
on Form N-4 (File No. 33-34370), as filed electronically on November 26, 1997
(Accession No. 0000950146-97-001802). A Supplement dated February 16, 1998 to
the Prospectus is included in this Post-Effective Amendment No. 32. The
Statement of Additional Information is included in Part B of this Post-Effective
Amendment No. 32.
<PAGE>
Supplement dated February 16, 1998
to Prospectus Dated November 28, 1997
Aetna Life Insurance and Annuity Company
Variable Annuity Account B
Aetna Marathon Plus
The prospectus dated May 1, 1997 and amended on November 28, 1997, is amended as
follows:
1. The cover page is amended to:
a. Add references to "Roth IRAs" and Section 408A of the Internal Revenue Code,
subject to approval by state regulatory agencies, in (2) of the opening
paragraph.
b. Add "In most states," to the beginning of the second paragraph. Add the
following sentence after the first sentence: "In certain states, Purchase
Payments may be allocated to the Fixed Account when the Guaranteed Account
is not available."
c. Add the following sentence in the paragraph following the list of
investment options: "The Fixed Account is described in a separate Appendix
to this Prospectus."
d. The name of Calvert Responsibly Invested Balanced Portfolio is changed
to Calvert Social Balanced Portfolio.
2. The definitions listed below are added or amended to describe a Contract
offered as a Roth IRA or to describe a Fixed Account.
Contract Year: The number of completed years since the date of the first
payment under an individual Contract or to an Account under a group
Contract.
Fixed Account: A fixed interest option available in certain states which is
described in an Appendix to this Prospectus. Amounts allocated to the Fixed
Account are included in the Account Value.
Individual Retirement Annuity: An individual or group variable deferred
annuity intended to qualify under Code Section 408(b) or 408A.
Qualified Contracts: Contracts available for use with plans entitled to
special federal income tax treatment under Code Sections 401(a), 403(b),
408(b), 408A or 457.
Roth IRA: An Individual Retirement Annuity intended to qualify under Code
Section 408A.
3. The Prospectus Summary is amended as follows:
a. Contracts Offered is amended to add "including Roth IRAs" after
"("IRAs")" in (2) of paragraph one:
b. Free Look Period is amended to add the following sentence at the end of
the paragraph:
If the Purchase Payment to a Roth IRA is a rollover from a contract
issued by the Company or an affiliate where the deferred sales charge
was eliminated or reduced to facilitate the rollover to this Contract,
the Purchase Payment will be restored to the contract from which it
came.
c. Investment Options is amended to add "or Fixed Account" after "Guaranteed
Account" in the first paragraph. A third paragraph is added to read: "The
Fixed Account is an option available under the Contract which allows you
to earn a fixed rate of interest. (See the Appendix to this Prospectus.)"
d. Transfers is amended to add "or Fixed Account" after "Guaranteed Account"
in the first sentence. In the second paragraph, the following sentence is
added after the second sentence: "In a Contract with a Fixed Account, the
Fixed Account is only available for dollar cost averaging from the Fixed
Account to the other investment options over a period not to exceed 12
months."
e. Taxes is amended to read as follows:
Earnings are not generally taxed until you or your Beneficiary(ies)
actually receive a distribution from the Contract. A 10% federal tax
penalty may be imposed on certain withdrawals. Special rules apply to
distributions from a Roth IRA. (See "Tax Status.")
<PAGE>
4. The section entitled "Fee Table" is amended to add the following information
applicable to Roth IRAs:
CONTRACT HOLDER TRANSACTION EXPENSES
Deferred Sales Charge for withdrawals under each Contract (as a percentage
of each Purchase Payment withdrawn). If the Purchase Payment is a rollover
from another contract issued by the Company or an affiliate where the
deferred sales charge has been waived, the deferred sales charge is based on
the number of completed Contract Years since the date of the initial payment
to the predecessor contract. The Company reserves the right to not accept
any rollover contribution to an existing Contract.
Completed Contract Years
<TABLE>
<S> <C>
Less than 1 5%
1 or more but less than 2 4%
2 or more but less than 3 3%
3 or more but less than 4 2%
4 or more but less than 5 1%
5 or more 0%
Annual Maintenance Fee(1) $30.00
Transfer Charge(2) $ 0.00
</TABLE>
SEPARATE ACCOUNT ANNUAL EXPENSES
(Daily deductions, equal to the percentage shown on an annual basis, made
from amounts allocated to the variable options under each Contract)
<TABLE>
<S> <C>
During the Accumulation Period
Mortality and Expense Risk Charge ...... 1.10%(3)
Administrative Charge .................. 0.15%
Total Subaccount Annual Expenses ...... 1.25%
During the Annuity Period
Mortality and Expense Risk Charge ...... 1.25%
Administrative Charge .................. 0.00%(4)
Total Subaccount Annual Expenses ...... 1.25%
</TABLE>
- ----------
1) The maintenance fee, if applicable, will generally be deducted from each
Account annually and if the full Account Value is withdrawn. The maintenance
fee is waived when the Account Value is $50,000 or more on the date the
maintenance fee is due. The amount shown is the maximum maintenance fee that
can be deducted under the Contract.
2) During the Accumulation Period we currently allow an unlimited number of
transfers without charge. However, we reserve the right to impose a fee of
$10 for each transfer in excess of 12 per year.
3) Under certain Contracts the mortality and expense risk charge during the
Accumulation Period may be reduced. See "Charges and Deductions" in the
prospectus.
4) We currently do not impose an Administrative Charge during the Annuity
Period. However, we reserve the right to deduct a daily charge of not more
than 0.25% per year from the Subaccounts.
ANNUAL EXPENSES OF THE FUNDS--Please refer to Fee Table--2 of the
Prospectus.
HYPOTHETICAL ILLUSTRATION (EXAMPLE)
THIS EXAMPLE IS PURELY HYPOTHETICAL. IT SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES OR EXPECTED RETURN. ACTUAL
EXPENSES AND/OR RETURN MAYBE MORE OR LESS THAN THOSE SHOWN BELOW.
The following Examples illustrate the expenses that would have been paid
assuming a $1,000 investment in the Contract and a 5% return on assets. For
the purposes of these Examples, the maximum maintenance fee of $30.00 that
can be deducted under the Contract has been converted to a percentage of
assets equal to 0.005%.
<PAGE>
<TABLE>
<CAPTION>
EXAMPLE A EXAMPLE B
If you withdraw the entire Account If you do not withdraw the
Value at the end of the periods shown, Account Value, or if you annuitize at
you would pay the following expenses, the end of the periods shown, you would
including any applicable deferred pay the following expenses (no
sales charge: deferred sales charge is reflected)(1):
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Variable Fund
Aetna Income Shares
Aetna Income Variable Encore Fund
Aetna Investment Advisers Fund, Inc.
Aetna Ascent Variable Portfolio
Aetna Crossroads Variable Portfolio
Aetna Legacy Variable Portfolio
Aetna Variable Capital Appreciation
Portfolio
Aetna Variable Growth Portfolio
Aetna Variable Index Plus Portfolio
Aetna Variable Small Company Portfolio
Calvert Social Balanced Portfolio
(formerly Calvert Responsibly Invested
Balanced Portfolio)
Fidelity VIP Equity-Income Portfolio
Fidelity VIP Growth Portfolio
Fidelity VIP High Income Portfolio
Fidelity VIP Overseas Portfolio
Fidelity VIP II Asset Manager Portfolio
Fidelity VIP Contrafund Portfolio
Fidelity VIP II Index 500 Portfolio
Janus Aspen Aggressive Growth Portfolio
Janus Aspen Balanced Portfolio
Janus Aspen Flexible Income Portfolio
Janus Aspen Growth Portfolio
Janus Aspen Worldwide Growth Portfolio
MFS Total Return Series
MFS World Governments Series
Oppenheimer Capital Appreciation Fund
Oppenheimer Global Securities Fund
Oppenheimer Growth & Income Fund
Oppenheimer Strategic Bond Fund
Portfolio Partners MFS Emerging Equities
Portfolio
Portfolio Partners MFS Research Growth
Portfolio
Portfolio Partners MFS Value Equity
Portfolio
Portfolio Partners Scudder International
Growth Portfolio
Portfolio Partners T. Rowe Price Growth
Equity Portfolio
</TABLE>
- ----------
(1)This example would not apply if a nonlifetime variable annuity option is
selected, and a lump sum settlement is requested within three years after
annuity payments start, since the lump sum payment will be treated as a
withdrawal during the Accumulation Period and will be subject to any deferred
sales charge that would then apply. (Refer to Example A)
<PAGE>
5. The Funds section of Investment Options on page 1 of the Prospectus is
amended to add ", or an investment in the Fixed Account in Contracts where
the Guaranteed Account is not available," after the word "duration" in the
last sentence of the first paragraph.
6. A new section "Fixed Account" is added after Credited Interest Option on
page 5 of the Prospectus. It reads:
"Fixed Account
In certain states, Purchase Payments may be allocated to the Fixed Account.
Through the Fixed Account we guarantee to pay the minimum interest rate
specified in the Contract. (See the Appendix)."
7. The Purchase section of the Prospectus on page 5 is amended to add
"including Roth IRAs" after "Annuities" in the first sentence and to add the
following to the end of the first paragraph:
A Roth IRA Contract is a special form of IRA which can accept nondeductible
annual contributions. Contributions to a Simplified Employee Pension Plan
("SEP") are not permitted in a Roth IRA Contract. The Roth IRA Contract can
also accept transfers and rollovers, but only from an Individual Retirement
Annuity/Individual Retirement Account, subject to ordinary income tax, or
from another Roth IRA. If the Purchase Payment to a Roth IRA is a rollover
from a contract issued by the Company or an affiliate where the deferred
sales charge was eliminated or reduced and the Contract is canceled during
the free look period, the Purchase Payment will be restored to the
predecessor contract.
8. Add the following sentence to the end of Individual Contracts on page 5:
"However, if the Purchase Payment to a Roth IRA is a rollover from a
contract issued by the Company or an affiliate where the deferred sales
charge was eliminated or reduced and the Contract is canceled during the
free look period, the Purchase Payment will be restored to the predecessor
contract."
9. Add "or Fixed Account" after "Guaranteed Account" in Allocation of Purchase
Payments on page 6.
10. In Mortality and Expense Risk Charge on page 6, add the following sentence
after the second sentence:
"If the Contract is issued as a Roth IRA, the mortality and expense risk
charge is equal, on an annual basis, to 1.10% of the daily net assets of the
Subaccounts."
11. The first two paragraphs under Deferred Sales Charge on page 8 are replaced
with the following:
Withdrawals of all or a portion of the Account Value may be subject to a
deferred sales charge. The deferred sales charge is a percentage of Purchase
Payments withdrawn from the Subaccounts and the Guaranteed Account or Fixed
Account and, except for Roth IRAs, is based on the number of years which
have elapsed since the Purchase Payment was made. The deferred sales charge
on withdrawals from a Roth IRA is based on the number of years which have
elapsed from the Account effective date. The deferred sales charge for each
Purchase Payment is determined by multiplying the Purchase Payment withdrawn
by the appropriate percentage, in accordance with the schedule set forth in
the tables below. If the Purchase Payment is a rollover from another
contract issued by the Company or an affiliate where the deferred sales
charge has been waived, the deferred sales charge is based on the number of
completed Contract Years since the date of the initial payment to the
predecessor contract. The Company reserves the right to not accept any
rollover contribution to an existing Contract.
Withdrawals are taken first against Purchase Payments, then against any
increase in value. However, the deferred sales charge only applies to the
Purchase Payment (not to any associated changes in value). To satisfy a
partial withdrawal, the deferred sales charge is calculated as if the
Purchase Payments are withdrawn from the Subaccounts in the same order they
were applied to the Account. Partial withdrawals from the Guaranteed Account
or the Fixed Account will be treated as described in the Appendices attached
to this Prospectus and the prospectus for the Guaranteed Account. The total
charge will be the sum of the charges applicable for all of the Purchase
Payments withdrawn.
<PAGE>
The following table applies to Roth IRA Contracts, including those issued in
New York.
<TABLE>
<CAPTION>
Deferred Sales
Completed Contract Years Charge Deduction
<S> <C>
Less than 1 5%
1 or more but less than 2 4%
2 or more but less than 3 3%
3 or more but less than 4 2%
4 or more but less than 5 1%
5 or more 0%
</TABLE>
12. Deferred Sales Charge, page 8. In addition to the list of circumstances
where a deferred sales charge will not be deducted, a deferred sales charge
will not be deducted if the withdrawal is applied as a rollover to certain
Roth Individual Retirement Annuities issued by the Company or an affiliate.
13. In Account Value on page 9, add "or the Fixed Account" to the end of the
paragraph.
14. In Transfers on page 10 add as the third sentence to the first paragraph:
"Transfers may be made from the Fixed Account to any of the investment
options available subject to certain restrictions. Amounts may not be
transferred into the Fixed Account from any of the investment options."
15. In Dollar Cost Averaging on page 10, add "or Fixed Account" after
"Guaranteed Term" in the third sentence. Add as the next to the last
sentence in the first paragraph: "If Dollar Cost Averaging is stopped with
regard to amounts in the Fixed Account, the remaining balance in the Fixed
Account will be transferred to the Aetna Variable Encore Fund Subaccount (a
money market fund)."
16. Add the following to the end of the first paragraph under Withdrawals on
page 10:
Roth IRAs provide for a tax-free withdrawal of all assets in the Contract,
both contributions and earnings, provided the withdrawal is not made within
the 5-taxable year period beginning with the first tax year for which a
contribution was made, and the distribution is made after attainment of age
59-1/2, or on account of death or disability, or for a qualified first-time
home purchase.
Also add "or Fixed Account" after "Guaranteed Account" in the third
paragraph.
17. Under Systematic Distribution Option add the following:
"ECO" is not available under the Roth IRA Contract."
18. Under Annuity Period on page 14, add the following:
For Roth IRAs, the minimum distribution rules do not apply prior to your
death. You are not required to begin taking minimum annual distributions by
April 1 of the calendar year following the calendar year in which you attain
age 70-1/2. The general rule that annuity payments may not extend beyond
your life/life expectancy or beyond the joint lives/joint life expectancies
of you and your beneficiaries does not apply to a Roth IRA. The minimum
distribution rules which apply to the beneficiary at your death and which
are described in the Prospectus continue to apply. The rules differ
depending on whether you die after distributions have begun.
19. Under Individual Retirement Annuities and Simplified Employee Pension Plans
on page 22, add the following:
Section 408A of the Code permits eligible individuals to contribute to a
Roth IRA on an after-tax (nondeductible) basis.
Distributions from other types of qualified plans are not permitted to be
transferred or rolled over to a Roth IRA. A Roth IRA can accept
transfers/rollovers only from an IRA, subject to ordinary income tax, or
from another Roth IRA.
20. Under Withdrawals on page 19, add the following:
Any "qualified" distribution from a Roth IRA is not includible in gross
income. A "qualified" distribution is any distribution made after you have
attained age 59-1/2, or on account of your death or disability, or for a
qualified first-time home purchase. A distribution will not be treated as
"qualified" if it is made within the 5-taxable year period beginning with
the first taxable year for which a contribution was made. If a distribution
is not "qualified",
<PAGE>
the accumulated earnings are includible in income. The 10% premature
distribution penalty will apply to the taxable portion of the distribution
unless one of the exceptions under the Code applies. (See Section 21 of this
Supplement.) A partial distribution will first be treated as a return of
cost basis (i.e. aggregate amount of contributions.)
For Roth IRAs the minimum distribution rules do not apply prior to your
death. (See "Annuity Period" above.)
21. Under Penalty Tax on page 19, replace the language in the fourth paragraph
with the following:
In general, except for (d), the same exceptions described in the preceding
paragraph will apply to distributions made from an Individual Retirement
Annuity, including a distribution from a Roth IRA that is not a "qualified
distribution" or a rollover to a Roth IRA that is not a "qualified rollover"
contribution. Beginning January 1, 1997, the penalty tax is also waived on
distributions made from an IRA to pay for health insurance premiums for
certain unemployed individuals. Beginning January 1, 1998, the penalty tax
is waived if the amounts withdrawn are used for a qualified first-time home
purchase or for higher education expenses.
<PAGE>
APPENDIX
FIXED ACCOUNT
The Fixed Account is an investment option available during the Accumulation
Period under the Contracts. The following summarizes material information
concerning the Fixed Account that is offered as an option under the Contract.
Additional information may be found in your Contract. Amounts allocated to the
Fixed Account are held in the Company's general account that supports insurance
and annuity obligations. Interests in the Fixed Account have not been registered
with the SEC in reliance on exemptions under the Securities Act of 1933, as
amended. Disclosure in this prospectus regarding the Fixed Account, however, may
be subject to certain generally applicable provisions of the federal securities
laws relating to the accuracy and completeness of the statements. Disclosure in
this Appendix regarding the Fixed Account has not been reviewed by the SEC.
Fixed Account
Amounts allocated to this option will earn the minimum guaranteed interest rate
specified in the Contract. The Company may credit a higher interest rate from
time to time. The Company's determination of interest rates reflects the
investment income earned on invested assets and the amortization of any capital
gains and/or losses realized on the sale of invested assets. Under this option,
the Company assumes the risk of investment gain or loss by guaranteeing Net
Purchase Payment values and promising a minimum interest rate and Annuity
payment.
Amounts applied to the Fixed Account will earn the interest rate declared on the
date the Purchase Payment is received in good order at the Company's Home
Office. The Fixed Account is only available in certain states. If a withdrawal
is made from the Fixed Account, a deferred sales charge may apply. Amounts
allocated to the Fixed Account will count as an option for purposes of the 18
investment option limit. (See the Contract Prospectus).
Dollar Cost Averaging
Amounts invested in the Fixed Account must be transferred into the other
investment options available under the Contract over a period not to exceed 12
months under the Dollar Cost Averaging Program. In the event a Certificate
Holder discontinues dollar cost averaging, the remaining balance in the Fixed
Account will be transferred into the Aetna Variable Encore Fund Subaccount (a
money market fund) unless directed otherwise.
Mortality and Expense Risk Charges
The Fixed Account will reflect a compound interest rate credited by the Company.
The interest rate quoted is an annual effective yield. The Company makes no
deductions from the credited interest rate for mortality and expense risks;
these risks are considered in determining the credited rate.
Transfers Among Investment Options
Transfers from the Fixed Account to any other available investment option under
the Contract are allowed in each calendar year during the Accumulation Period.
The amount which may be transferred may vary at the Company's discretion;
however, it will never be less than 10% of the amount held under the Fixed
Account.
By giving notice to the Company at its Home Office at least 30 days before
Annuity payments begin, the Certificate Holder may elect to have amounts which
have accumulated under the Fixed Account transferred to one or more of the
investment options available during the Annuity Period to provide Annuity
payments.
Under certain emergency conditions, we may defer payment of a Fixed Account
withdrawal value (a) for a period of up to six months, or (b) as allowed by
federal law.
Condensed Financial Information--Page AUV History--1 through AUV History--4
The following information supplements the Condensed Financial Information Table
to reflect condensed financial information for investment options available as
of September 30, 1997. Not all investment options shown here are currently
available.
[Actual condensed financial information to be provided in a 485(b) filing]
<PAGE>
- --------------------------------------------------------------------------------
VARIABLE ANNUITY ACCOUNT B
OF
AETNA LIFE INSURANCE AND ANNUITY COMPANY
- --------------------------------------------------------------------------------
Statement of Additional Information dated February 16, 1998
Marathon Plus
New York Growth Plus
This Statement of Additional Information is not a prospectus and should be read
in conjunction with the current prospectus for Variable Annuity Account B (the
"Separate Account") dated November 28, 1997 and as supplemented on February 16,
1998.
A free prospectus is available upon request from the local Aetna Life Insurance
and Annuity Company office or by writing to or calling:
Aetna Life Insurance and Annuity Company
Customer Service
151 Farmington Avenue
Hartford, Connecticut 06156
1-800-531-4547
Read the prospectus before you invest. Terms used in this Statement of
Additional Information shall have the same meaning as in the prospectus.
TABLE OF CONTENTS
Page
----
General Information and History.......................................... 2
Variable Annuity Account B............................................... 2
Offering and Purchase of Contracts....................................... 3
Performance Data......................................................... 3
General............................................................ 3
Average Annual Total Return Quotations............................. 4
Annuity Payments......................................................... 9
Sales Material and Advertising........................................... 10
Independent Auditors..................................................... 10
Financial Statements of the Separate Account............................. S-1
Financial Statements of the Company...................................... F-1
<PAGE>
GENERAL INFORMATION AND HISTORY
Aetna Life Insurance and Annuity Company (the "Company") is a stock life
insurance company which was organized under the insurance laws of the State of
Connecticut in 1976. Through a merger, it succeeded to the business of Aetna
Variable Annuity Life Insurance Company (formerly Participating Annuity Life
Insurance Company organized in 1954). As of December 31, 1996, the Company had
$30.1 billion invested through its products, including $15.0 billion in its
separate accounts (of which the Company oversees the management of $10.5
billion) and $1.1 billion in its mutual funds offered outside of its separate
accounts. As of December 31, 1995, it ranked among the top 2% of all U.S. life
insurance companies based on assets. The Company is a wholly owned subsidiary of
Aetna Retirement Holdings, Inc., which is in turn a wholly owned subsidiary of
Aetna Retirement Services, Inc., and an indirect wholly owned subsidiary of
Aetna Inc. The Company is engaged in the business of issuing life insurance
policies and annuity contracts in all states of the United States. The Company's
Home Office is located at 151 Farmington Avenue, Hartford, Connecticut 06156.
In addition to serving as the principal underwriter and the depositor for the
Separate Account, the Company is also a registered investment adviser under the
Investment Advisers Act of 1940, and a registered broker-dealer under the
Securities Exchange Act of 1934. The Company provides investment advice to
several of the registered management investment companies offered as variable
investment options under the Contracts funded by the Separate Account (see
"Variable Annuity Account B" below).
Other than the mortality and expense risk charges and administrative charge
described in the prospectus, all expenses incurred in the operations of the
Separate Account are borne by the Company. See "Charges and Deductions" in the
prospectus. The Company receives reimbursement for certain administrative costs
from some unaffiliated sponsors of the Funds used as funding options under the
Contract. These fees generally range up to 0.25%.
The assets of the Separate Account are held by the Company. The Separate Account
has no custodian. However, the Funds in whose shares the assets of the Separate
Account are invested each have custodians, as discussed in their respective
prospectuses.
VARIABLE ANNUITY ACCOUNT B
Variable Annuity Account B (the "Separate Account") is a separate account
established by the Company for the purpose of funding variable annuity contracts
issued by the Company. The Separate Account is registered with the Securities
and Exchange Commission as a unit investment trust under the Investment Company
Act of 1940, as amended. Purchase Payments made under the Contract may be
allocated to one or more of the Subaccounts. Each Subaccount invests in the
shares of only one of the Funds listed below. The Company may make additions to,
deletions from or substitution of available investment options as permitted by
law and subject to the conditions of the Contract. The availability of the Funds
is subject to applicable regulatory authorization. Not all Funds are available
in all jurisdictions or under all Contracts.
-2-
<PAGE>
The Funds currently available under the Marathon Plus Contract are as follows:
<TABLE>
<S> <C>
Aetna Variable Fund Fidelity VIP II Index 500 Portfolio
Aetna Income Shares Janus Aspen Aggressive Growth Portfolio
Aetna Variable Encore Fund Janus Aspen Balanced Portfolio
Aetna Investment Advisers Fund, Inc. Janus Aspen Flexible Income Portfolio
Aetna Ascent Variable Portfolio Janus Aspen Growth Portfolio
Aetna Crossroads Variable Portfolio Janus Aspen Worldwide Growth Portfolio
Aetna Legacy Variable Portfolio MFS Total Return Series
Aetna Variable Capital Appreciation Portfolio MFS World Governments Series
Aetna Variable Growth Portfolio Oppenheimer Capital Appreciation Fund
Aetna Variable Index Plus Portfolio Oppenheimer Global Securities Fund
Aetna Variable Small Company Portfolio Oppenheimer Growth & Income Fund
Calvert Social Balanced Portfolio Oppenheimer Strategic Bond Fund
(formerly Calvert Responsibily Portfolio Partners MFS Emerging Equities Portfolio
Invested Balanced Fund) Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP Equity-Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Growth Portfolio Portfolio Partners Scudder International
Fidelity VIP High Income Portfolio Growth Portfolio
Fidelity VIP Overseas Portfolio Portfolio Partners T. Rowe Price Growth
Fidelity VIP II Asset Manager Portfolio Equity Portfolio
Fidelity VIP II Contrafund Portfolio
</TABLE>
The Funds currently available under the New York Growth Plus Contract are as
follows:
<TABLE>
<S> <C>
Federated American Leaders Fund II Federated High Income Bond Fund II
Federated Equity Income Fund II Federated International Equity Fund II
Federated Fund for U.S. Government Securities II Federated Prime Money Fund II
Federated Growth Strategies Fund II Federated Utility Fund II
</TABLE>
Complete descriptions of each of the Funds, including their investment
objectives, policies, risks and fees and expenses, are contained in the
prospectuses and statements of additional information for each of the Funds.
OFFERING AND PURCHASE OF CONTRACTS
The Company is both the depositor and the principal underwriter for the
securities sold by the prospectus. The Company offers the Contracts through life
insurance agents licensed to sell variable annuities who are Registered
Representatives as defined in the prospectus. The offering of the Contracts is
continuous. A description of the manner in which Contracts are purchased may be
found in the prospectus under the sections titled "Purchase" and "Contract
Valuation."
PERFORMANCE DATA
GENERAL
From time to time, the Company may advertise different types of historical
performance for the Subaccounts of the Separate Account available under the
Contracts. The Company may advertise the "standardized average annual total
returns," calculated in a manner prescribed by the Securities and
-3-
<PAGE>
Exchange Commission (the "standardized return"), as well as "non-standardized
returns," both of which are described below.
The standardized and non-standardized total return figures are computed
according to a formula in which a hypothetical initial Purchase Payment of
$1,000 is applied to the various Subaccounts under the Contract, and then
related to the ending redeemable values over one, five and ten year periods (or
fractional periods thereof). The redeemable value is then divided by the initial
investment and this quotient is taken to the Nth root (N represents the number
of years in the period) and 1 is subtracted from the result which is then
expressed as a percentage, carried to at least the nearest hundredth of a
percent. The standardized figures use the actual returns of the Fund since the
date the Fund was first available under the Separate Account and then adjust
them to reflect the deduction of all recurring charges under the Contracts
during each period (e.g., mortality and expense risk charges, maintenance fees,
administrative charges, and deferred sales charges). These charges will be
deducted on a pro rata basis in the case of fractional periods. The maintenance
fee is converted to a percentage of assets based on the average account size
under the Contracts described in the prospectus. The total return figures shown
below may be different from the actual historical total return under your
Contract because for periods prior to 1994, the Subaccount's investment
performance reflected the investment performance of the underlying Fund plus any
cash held by the Subaccount.
The non-standardized figures will be calculated in a similar manner, except that
they will not reflect the deduction of any applicable deferred sales charge
(which would decrease the level of performance shown if reflected in these
calculations). The non-standardized figures may also include monthly, quarterly,
year-to-date and three-year periods and may include returns calculated from the
Fund's inception date and/or the date the Fund was added to the Separate
Account.
Investment results of the Subaccounts will fluctuate over time, and any
presentation of the Subaccounts' total return quotations for any prior period
should not be considered as a representation of how the Subaccounts will perform
in any future period. Additionally, the Account Value upon redemption may be
more or less than your original cost.
AVERAGE ANNUAL TOTAL RETURN QUOTATIONS - Standardized and Non-Standardized
The tables shown below reflect the average annual standardized and
non-standardized total return quotation figures for the periods ended September
30, 1997 for the Subaccounts available under the Separate Account as of
September 30, 1997 (not all such Funds are currently available). Table A
reflects the total return quotations for Contracts issued nationwide (other than
Contracts or Certificates issued in New York). Table B reflects the total return
quotations for Marathon Plus and Growth Plus Contracts or Certificates issued in
the state of New York. For those Subaccounts where results are not available for
the full calendar period indicated, the percentage shown is an average annual
return since the date the Fund was first added to the Separate Account (in the
case of standardized performance) or the Fund's inception date (in the case of
nonstandardized performance). (Percentages reflecting partial periods are
denoted with an asterisk.)
-4-
<PAGE>
<TABLE>
<CAPTION>
TABLE A
-------------------------------------------------------------------------------------------
DATE
FUND
ADDED TO FUND
SEPARATE INCEPTION
($30 MAINTENANCE FEE) STANDARDIZED ACCOUNT NON-STANDARDIZED DATE
- ------------------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT 1 Year 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Variable Fund 05/01/75
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Income Shares 05/15/73
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Encore Fund 08/01/75
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Advisers Fund, Inc. 04/03/89
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Ascent Variable Portfolio 07/05/95
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Crossroads Variable Portfolio 07/05/95
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Legacy Variable Portfolio 07/05/95
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Index Plus Portfolio 09/16/96
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Balanced Portfolio 09/05/89
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Growth Portfolio 01/09/89
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Income and Growth
Portfolio 11/15/88
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Leveraged AllCap
Portfolio 01/25/95
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American MidCap Growth Portfolio 05/03/93
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Small Capitalization
Portfolio 09/21/88
- ------------------------------------------------------------------------------------------------------------------------------------
American Century VP Balanced 05/01/91
- ------------------------------------------------------------------------------------------------------------------------------------
American Century VP Capital
Appreciation 11/20/87
- ------------------------------------------------------------------------------------------------------------------------------------
American Century VP International 05/01/94
- ------------------------------------------------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio 09/02/86
- ------------------------------------------------------------------------------------------------------------------------------------
Federated American Leaders Fund II 02/10/94
- ------------------------------------------------------------------------------------------------------------------------------------
Federated Fund for U.S. Government
Securities II 03/28/94
- ------------------------------------------------------------------------------------------------------------------------------------
Federated High Income Bond Fund II 03/01/94
- ------------------------------------------------------------------------------------------------------------------------------------
Federated Utility Fund II 02/10/94
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio 10/09/86
- ------------------------------------------------------------------------------------------------------------------------------------
-5-
<PAGE>
-------------------------------------------------------------------------------------------
DATE
FUND
ADDED TO FUND
SEPARATE INCEPTION
($30 MAINTENANCE FEE) STANDARDIZED ACCOUNT NON-STANDARDIZED DATE
- ------------------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT 1 Year 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth Portfolio 10/09/86
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP High Income Portfolio 09/19/85
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio 02/13/87
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Asset Manager 09/06/89
Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Contrafund Portfolio 01/03/95
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Index 500 Portfolio 08/27/92
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Investment Grade
Bond Portfolio 12/05/88
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Aggressive Growth 09/13/93
Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Balanced Portfolio 09/13/93
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Flexible Income Portfolio 09/13/93
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Growth Portfolio 09/13/93
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Short-Term Bond Portfolio 09/13/93
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth Portfolio 09/13/93
- ------------------------------------------------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund, Inc. 03/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust 10/14/91
- ------------------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Series 07/24/95
- ------------------------------------------------------------------------------------------------------------------------------------
MFS Research Series 07/26/95
- ------------------------------------------------------------------------------------------------------------------------------------
MFS Total Return Series 01/03/95
- ------------------------------------------------------------------------------------------------------------------------------------
MFS Value Series 08/14/96
- ------------------------------------------------------------------------------------------------------------------------------------
MFS World Governments Series 06/14/94
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Capital Appreciation Fund 08/15/86
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Global Securities Fund 11/12/90
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Growth & Income Fund 07/06/95
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Strategic Bond Fund 05/03/93
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Please refer to the discussion preceding the Tables for an explanation of the
charges included in the Standardized and Non-Standardized figures. These figures
represent historical performance and should not be considered a projection of
future performance.
-6-
<PAGE>
<TABLE>
<CAPTION>
TABLE B
CONTRACTS OR CERTIFICATES ISSUED IN NEW YORK
-------------------------------------------------------------------------------------------
DATE
FUND
ADDED TO FUND
SEPARATE INCEPTION
($30 MAINTENANCE FEE) STANDARDIZED ACCOUNT NON-STANDARDIZED DATE
- ------------------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT 1 Year 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Variable Fund 05/01/75
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Income Shares 05/15/73
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Encore Fund 08/01/75
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Advisers Fund, Inc. 04/03/89
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Ascent Variable Portfolio 07/05/95
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Crossroads Variable Portfolio 07/05/95
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Legacy Variable Portfolio 07/05/95
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Index Plus Portfolio 09/16/96
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Balanced Portfolio 09/05/89
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Growth Portfolio 01/09/89
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Income and Growth
Portfolio 11/15/88
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Leveraged AllCap
Portfolio 01/25/95
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American MidCap Growth 05/03/93
Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Small Capitalization
Portfolio 09/21/88
- ------------------------------------------------------------------------------------------------------------------------------------
American Century VP Balanced 05/01/91
- ------------------------------------------------------------------------------------------------------------------------------------
American Century VP Capital
Appreciation 11/20/87
- ------------------------------------------------------------------------------------------------------------------------------------
American Century VP International 05/01/94
- ------------------------------------------------------------------------------------------------------------------------------------
Federated American Leaders Fund II 02/10/94
- ------------------------------------------------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio 09/02/86
- ------------------------------------------------------------------------------------------------------------------------------------
Federated Fund for U.S. Government
Securities II 03/28/94
- ------------------------------------------------------------------------------------------------------------------------------------
Federated Growth Strategies Fund II 10/02/95
- ------------------------------------------------------------------------------------------------------------------------------------
Federated High Income Bond Fund II 03/01/94
- ------------------------------------------------------------------------------------------------------------------------------------
Federated International Equity Fund II 05/08/95
-----------------------------------------------------------------------------------------------------------------------------------
Federated Prime Money Fund II 11/18/94
- ------------------------------------------------------------------------------------------------------------------------------------
Federated Utility Fund II 02/10/94
- ------------------------------------------------------------------------------------------------------------------------------------
-7-
<PAGE>
- ------------------------------------------------------------------------------------------------------------------------------------
DATE
FUND
ADDED TO FUND
SEPARATE INCEPTION
($30 MAINTENANCE FEE) STANDARDIZED ACCOUNT NON-STANDARDIZED DATE
- ------------------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT 1 Year 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Equity-Income Portfolio 10/09/86
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth Portfolio 10/09/86
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP High Income Portfolio 09/19/85
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio 02/13/87
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Asset Manager 09/06/89
Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Contrafund Portfolio 01/03/95
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Index 500 Portfolio 08/27/92
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Investment Grade
Bond Portfolio 12/05/88
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Aggressive Growth 09/13/93
Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Balanced Portfolio 09/13/93
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Flexible Income Portfolio 09/13/93
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Growth Portfolio 09/13/93
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Short-Term Bond Portfolio 09/13/93
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth 09/13/93
Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund, Inc. 03/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust 10/14/91
- ------------------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Series 07/24/95
- ------------------------------------------------------------------------------------------------------------------------------------
MFS Research Series 07/26/95
- ------------------------------------------------------------------------------------------------------------------------------------
MFS Total Return Series 01/03/95
- ------------------------------------------------------------------------------------------------------------------------------------
MFS Value Series 08/14/96
- ------------------------------------------------------------------------------------------------------------------------------------
MFS World Governments Series 06/14/94
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Capital Appreciation Fund 08/15/86
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Global Securities Fund 11/12/90
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Growth & Income Fund 07/06/95
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Strategic Bond Fund 05/03/93
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Please refer to the discussion preceding the Tables for an explanation of the
charges included in the Standardized and Non-Standardized figures. These figures
represent historical performance and should not be considered a projection of
future performance.
-8-
<PAGE>
ANNUITY PAYMENTS
When Annuity payments are to begin, the value of the Account is determined using
Accumulation Unit values as of the tenth Valuation Date before the first Annuity
payment is due. Such value (less any applicable premium tax) is applied to
provide an Annuity in accordance with the Annuity and investment options
elected.
The Annuity option tables found in the Contract show, for each form of Annuity,
the amount of the first Annuity payment for each $1,000 of value applied.
Thereafter, variable Annuity payments fluctuate as the Annuity Unit value(s)
fluctuates with the investment experience of the selected investment option(s).
The first payment and subsequent payments also vary depending on the assumed net
investment rate selected (3.5% or 5% per annum). Selection of a 5% rate causes a
higher first payment, but Annuity payments will increase thereafter only to the
extent that the net investment rate increases by more than 5% on an annual
basis. Annuity payments would decline if the rate failed to increase by 5%. Use
of the 3.5% assumed rate causes a lower first payment, but subsequent payments
would increase more rapidly or decline more slowly as changes occur in the net
investment rate.
When the Annuity Period begins, the Annuitant is credited with a fixed number of
Annuity Units (which does not change thereafter) in each of the designated
investment options. This number is calculated by dividing (a) by (b), where (a)
is the amount of the first Annuity payment based on a particular investment
option, and (b) is the then current Annuity Unit value for that investment
option. As noted, Annuity Unit values fluctuate from one Valuation Date to the
next; such fluctuations reflect changes in the net investment factor for the
appropriate Subaccount(s) (with a ten Valuation Date lag which gives the Company
time to process Annuity payments) and a mathematical adjustment which offsets
the assumed net investment rate of 3.5% or 5% per annum.
The operation of all these factors can be illustrated by the following
hypothetical example. These procedures will be performed separately for the
investment options selected during the Annuity Period.
EXAMPLE:
- --------
Assume that, at the date Annuity payments are to begin, there are 3,000
Accumulation Units credited under a particular Account and that the value of an
Accumulation Unit for the tenth Valuation Date prior to retirement was
$13.650000. This produces a total value of $40,950.
Assume also that no premium tax is payable and that the Annuity table in the
Contract provides, for the option elected, a first monthly variable Annuity
payment of $6.68 per $1000 of value applied; the Annuitant's first monthly
payment would thus be 40.950 multiplied by $6.68, or $273.55.
Assume then that the value of an Annuity Unit for the Valuation Date on which
the first payment was due was $13.400000. When this value is divided into the
first monthly payment, the number of Annuity Units is determined to be 20.414.
The value of this number of Annuity Units will be paid in each subsequent month.
If the net investment factor with respect to the appropriate Subaccount is
1.0015000 as of the tenth Valuation Date preceding the due date of the second
monthly payment, multiplying this factor by .9999058* (to neutralize the assumed
net investment rate of 3.5% per annum built into the number of Annuity Units
determined above) produces a result of 1.0014057. This is then multiplied by the
Annuity Unit value for the prior Valuation Date (assume such value to be
$13.504376) to produce an Annuity Unit value of $13.523359 for the Valuation
Date on which the second payment is due.
-9-
<PAGE>
The second monthly payment is then determined by multiplying the number of
Annuity Units by the current Annuity Unit value, or 20.414 times $13.523359,
which produces a payment of $276.07.
*If an assumed net investment rate of 5% is elected, the appropriate factor to
neutralize such assumed rate would be .9998663.
SALES MATERIAL AND ADVERTISING
The Company may include hypothetical illustrations in its sales literature that
explain the mathematical principles of dollar cost averaging, compounded
interest, tax deferred accumulation, and the mechanics of variable annuity
contracts. The Company may also discuss the difference between variable annuity
contracts and other types of savings or investment products, including, but not
limited to, personal savings accounts and certificates of deposit.
We may distribute sales literature that compares the percentage change in
Accumulation Unit values for any of the Subaccounts to established market
indices such as the Standard & Poor's 500 Stock Index and the Dow Jones
Industrial Average or to the percentage change in values of other management
investment companies that have investment objectives similar to the Subaccount
being compared.
We may publish in advertisements and reports, the ratings and other information
assigned to us by one or more independent rating organizations such as A.M. Best
Company, Duff & Phelps, Standard & Poor's Corporation and Moody's Investors
Services, Inc. The purpose of the ratings is to reflect our financial strength
and/or claims-paying ability. We may also quote ranking services such as
Morningstar's Variable Annuity/Life Performance Report and Lipper's Variable
Insurance Products Performance Analysis Service (VIPPAS), which rank variable
annuity or life Subaccounts or their underlying funds by performance and/or
investment objective. We may illustrate in advertisements the performance of the
underlying funds, if accompanied by performance which also shows the performance
of such funds, reduced by applicable charges under the Separate Account. We may
also show in advertisements the portfolio holdings of the underlying funds,
updated at various intervals. From time to time, we will quote articles from
newspapers and magazines or other publications or reports, including, but not
limited to The Wall Street Journal, Money magazine, USA Today and The VARDS
Report.
The Company may provide in advertising, sales literature, periodic publications
or other materials information on various topics of interest to current and
prospective Certificate Holders. These topics may include the relationship
between sectors of the economy and the economy as a whole and its effect on
various securities markets, investment strategies and techniques (such as value
investing, market timing, dollar cost averaging, asset allocation, constant
ratio transfer and account rebalancing), the advantages and disadvantages of
investing in tax-deferred and taxable investments, customer profiles and
hypothetical purchase and investment scenarios, financial management and tax and
retirement planning, and investment alternatives to certificates of deposit and
other financial instruments, including comparison between the Contracts and the
characteristics of and market for such financial instruments.
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP, CityPlace II, Hartford, Connecticut 06103-4103, are the
independent auditors for the Separate Account and for the Company. The services
provided to the Separate Account include primarily the examination of the
Separate Account's financial statements and the review of filings made with the
SEC.
-10-
<PAGE>
FINANCIAL STATEMENTS
VARIABLE ANNUITY ACCOUNT B
AETNA LIFE INSURANCE AND ANNUITY COMPANY
To Be Filed By Amendment
<PAGE>
VARIABLE ANNUITY ACCOUNT B
PART C - OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
(1) Included in Part A:
Condensed Financial Information
(2) Included in Part B:
Financial Statements of Variable Annuity Account B: *
- Independent Auditors' Report
- Statement of Assets and Liabilities as of December 31, 1996
- Statements of Operations and Changes in Net Assets for the
years ended December 31, 1996 and 1995
- Notes to Financial Statements
- Unaudited Statement of Assets and Liabilities as of
September 30, 1997
- Unaudited Statements of Operations for the nine-month
periods ended September 30, 1997 and 1996
- Unaudited Statement of Changes in Net Assets for the nine-
month period ended September 30, 1997
Financial Statements of the Depositor: *
- Independent Auditors' Report
- Consolidated Statements of Income for the years ended
December 31, 1996, 1995 and 1994
- Consolidated Balance Sheets as of December 31, 1996 and 1995
- Consolidated Statements of Changes in Shareholder's Equity
for the years ended December 31, 1996, 1995 and 1994
- Consolidated Statements of Cash Flows for the years ended
December 31, 1996, 1995 and 1994
- Notes to Consolidated Financial Statements
- Unaudited Consolidated Balance Sheets as of September 30,
1997
- Unaudited Consolidated Statements of Income for the three-
and nine-month periods ended September 30, 1997 and 1996
- Unaudited Consolidated Statements of changes in
Shareholder's Equity for the nine-month periods ended
September 30, 1997 and 1996
- Unaudited Consolidated Statements of Cash Flows for the
nine-month periods ended September 30, 1997 and 1996
- Condensed Notes to Consolidated Financial Statements
*To be filed by Amendment
(b) Exhibits
(1) Resolution of the Board of Directors of Aetna Life Insurance and
Annuity Company establishing Variable Annuity Account B(1)
<PAGE>
(2) Not applicable
(3.1) Selling Agreement(2)
(3.2) Alternative Form of Wholesaling Agreement and Related Selling
Agreement(3)
(3.3) Federated Broker Dealer Agreement (9/2/94)(4)
(4.1) Variable Annuity Contract G-CDA-97(NY)
(4.2) Variable Annuity Contract Certificate GMCC-97(NY) to Contract
G-CDA-97(NY)
(4.3) Variable Annuity Contract G-MP1(5/97)(5)
(4.4) Variable Annuity Contract Certificate MP1CERT(5/97)(5)
(4.5) Variable Annuity Contract I-MP1(5/97)(5)
(4.6) Variable Annuity Contract G-MP1(5/96)(6)
(4.7) Variable Annuity Contract Certificate MP1CERT(5/96)(6)
(4.8) Variable Annuity Contract I-MP1(5/96)(6)
(4.9) Variable Annuity Contract G-CDA-96(NY)(6)
(4.10) Variable Annuity Contract Certificate GMCC-96(NY)(6)
(4.11) Variable Annuity Contracts and Certificates G-CDA-IC(NQ),
G-CDA-IC(IR), I-CDA-IC(NQ/MP), I-CDA-IC(IR/MP), GMCC-IC(NQ)(7)
(4.12) Variable Annuity Contracts and Certificates G-CDA-IC(IR/NY),
GMCC-IC(IR/NY), G-CDA-IC(NQ/NY), and GMCC-IC(NQ/NY)(8)
(4.13) Endorsements MP1IRA(5/97) and I-MP1IRA(5/97) to Contract G-MP1(5/96)
and Certificate MP1CERT(5/96)(6)
(4.14) Endorsements MP1QP(5/97) and I-MP1QP(5/97) to Contract G-MP1(5/96)
and Certificate MP1CERT(5/96)(6)
(4.15) Endorsements MP1TDA(5/97) and I-MP1TDA(5/97) to Contract G-MP1(5/96)
and Certificate MP1CERT(5/96)(6)
(4.16) Endorsements MP1DC(5/97) and I-MP1DC(5/97) to Contract G-MP1(5/96)
and Certificate MP1CERT(5/96)(6)
(4.17) Endorsement G-MP1IRA(11/96) to Contract G-CDA-96(NY) and Certificate
GMCC-96(NY)(6)
(4.18) Endorsements MP1END(5/97) and I-MP1END (5/97) to Contract GMP1(5/96)
and Certificate MP1CERT(5/96)(6)
(4.19) Endorsement MP1END(9/97) to Contract G-MP1(5/96) and Certificate
MP1CERT(5/96)(5)
(4.20) Endorsement I-MP1END(9/97) to Contract I-MP1(5/96)(5)
(4.21) Endorsement E1-MPROTH-97 to Contract G-MP1 (5/97)
(4.22) Endorsement EI1MPROTH-97 to Contract I-MP1 (5/97)
(4.23) Endorsement MP1IRA (11/97) to Contract G-MP1 (5/97)
(4.24) Endorsement I-MP1IRA (11/97) to Contract I-MP1 (5/97)
(4.25) Contract Schedule I Accumulation Period (G-MP1 (11/97)-5) to Group
Contract (G-MP1 (5/97))
(4.26) Contract Schedule I Accumulation Period (I-MP1 (11/97)-5) to
Individual Contract (I-MP1 (5/97))
(5.1) Variable Annuity Contract Application (300-MAR-IB)(9)
(5.2) Variable Annuity Contract Application (710.6.13)(9)
(5.3) Variable Annuity Contract Application MPAPPNY (1/96)
(6.1) Certificate of Incorporation of Aetna Life Insurance and Annuity
Company(10)
(6.2) Amendment of Certificate of Incorporation of Aetna Life Insurance
and Annuity Company(11)
(6.3) By-Laws, as amended September 17, 1997, of Aetna Life Insurance and
Annuity Company((2)
<PAGE>
(7) Not applicable
(8.1) Fund Participation Agreement (Amended and Restated) between Aetna
Life Insurance and Annuity Company, Alger American Fund and Fred
Alger Management, Inc. dated as of March 31, 1995(3)
(8.2) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Calvert Asset Management Company Inc. (Calvert
Responsibly Invested Balanced Portfolio, formerly Calvert Socially
Responsible Series) dated March 13, 1989 and amended December 27,
1993(3)
(8.3) Second Amendment dated January 1, 1996 to Fund Participation
Agreement between Aetna Life Insurance and Annuity Company and
Calvert Asset Management Company Inc. (Calvert Responsibly Invested
Balanced Portfolio, formerly Calvert Socially Responsible Series)
dated March 13, 1989 and amended December 27, 1993(13)
(8.4) Third Amendment dated February 11, 1997 to Fund Participation
Agreement between Aetna Life Insurance and Annuity Company and
Calvert Asset Management Company Inc. (Calvert Responsibly Invested
Balanced Portfolio, formerly Calvert Socially Responsible Series)
dated March 13, 1989 and amended December 27, 1993 and January 1,
1996(14)
(8.5) Fourth Amendment dated February 28, 1997 to Fund Participation
Agreement between Aetna Life Insurance and Annuity Company and
Calvert Asset Management Company Inc. (Calvert Responsibly Invested
Balanced Portfolio, formerly Calvert Socially Responsible Series)
dated March 13, 1989 and amended December 27, 1993, January 1, 1996,
and February 11, 1997(15)
(8.6) Fund Participation Agreement by and among Aetna Life Insurance and
Annuity Company, Insurance Management Series and Federated Advisors
dated July 1, 1994(16)
(8.7) Fund Participation Agreements between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1, 1996
and March 1, 1996(11)
(8.8) Fifth Amendment, dated as of May 1, 1997, to the Fund Participation
Agreement between Aetna Life Insurance and Annuity Company, Variable
Insurance Products Fund and Fidelity Distributors Corporation dated
February 1, 1994 and amended on December 15, 1994, February 1, 1995,
May 1, 1995, January 1, 1996 and March 1, 1996(5)
(8.9) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1, 1996
and March 1, 1996(1))
(8.10) Fifth Amendment, dated as of May 1, 1997, to the Fund Participation
Agreement between Aetna Life Insurance and Annuity Company, Variable
Insurance Products Fund II and Fidelity Distributors Corporation
dated February 1, 1994 and amended on December 15, 1994, February 1,
1995, May 1, 1995, January 1, 1996 and March 1, 1996(5)
<PAGE>
(8.11) Service Agreement between Aetna Life Insurance and Annuity Company
and Fidelity Investments Institutional Operations Company dated as
of November 1, 1995(13)
(8.12) Amendment dated January 1, 1997 to Service Agreement between Aetna
Life Insurance and Annuity Company and Fidelity Investments
Institutional Operations Company dated as of November 1, 1995(5)
(8.13) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Janus Aspen Series dated April 19, 1994, and
amended June 15, 1994, July 31, 1995 and March 1, 1996(5)
(8.14) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Lexington Management Corporation regarding
Natural Resources Trust dated December 1, 1988 and amended February
11, 1991(3)
(8.15) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Lexington Emerging Markets Fund, Inc. and Lexington
Management Corporation (its investment advisor) dated April 28,
1994(2)
(8.16) Fund Participation Agreement among MFS Variable Insurance Trust,
Aetna Life Insurance and Annuity Company and Massachusetts Financial
Services Company dated April 30, 1996(6)
(8.17) First Amendment dated September 3,1996 to Fund Participation
Agreement among MFS Variable Insurance Trust, Aetna Life Insurance
and Annuity Company and Massachusetts Financial Services Company
dated April 30, 1996(17)
(8.18) Second Amendment dated March 14, 1997 to Fund Participation
Agreement among MFS Variable Insurance Trust, Aetna Life Insurance
and Annuity Company and Massachusetts Financial Services Company
dated April 30, 1996(16)
(8.19) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Oppenheimer Variable Annuity Account Funds and
Oppenheimer Funds, Inc. dated March 11, 1997(16)
(8.20) Service Agreement between Oppenheimer Funds, Inc. and Aetna Life
Insurance and Annuity Company dated March 11, 1997(16)
(8.21) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Investors Research Corporation and TCI Portfolios,
Inc. dated July 29, 1992 and amended December 22, 1992 and June 1,
1994(3)
(8.22) Administrative Service Agreement between Aetna Life Insurance and
Annuity Company and Agency, Inc.(2)
(9) Opinion and Consent of Counsel
(10) Consent of Independent Auditors*
(11) Not applicable
(12) Not applicable
(13) Schedule for Computation of Performance Data(17)
<PAGE>
(14) Not applicable
(15.1) Powers of Attorney(18)
(15.2) Authorization for Signatures(3)
(27) Financial Data Schedule*
*To be filed by Amendment
1. Incorporated by reference to Post-Effective Amendment No. 6 to Registration
Statement on Form N-4 (File No. 33-75986), as filed electronically on April
22, 1996 (Accession No. 0000950146-96-000563).
2. Incorporated by reference to Post-Effective Amendment No. 22 to
Registration Statement on Form N-4 (File No. 33-34370), as filed
electronically on April 22, 1996 (Accession No. 0000912057-96-006805).
3. Incorporated by reference to Post-Effective Amendment No. 5 to Registration
Statement on Form N-4 (File No. 33-75986), as filed electronically on April
12, 1996 (Accession No. 0000912057-96-006383).
4. Incorporated by reference to Post-Effective Amendment No. 3 to Registration
Statement on Form N-4 (File No. 33-79122), as filed electronically on
August 16, 1995 (Accession No. 0000950109-95-003265).
5. Incorporated by reference to Post-Effective Amendment No. 30 to
Registration Statement on Form N-4 (File No. 33-34370), as filed
electronically on September 29, 1997 (Accession No. 0000950146-97-001485).
6. Incorporated by reference to Post-Effective Amendment No. 26 to
Registration Statement on Form N-4 (File No. 33-34370), as filed
electronically on February 21, 1997 (Accession No. 0000950146-97-000226).
7. Incorporated by reference to Post-Effective Amendment No. 15 to
Registration Statement on Form N-4 (File No. 33-34370), as filed on April
19, 1994.
8. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form N-4 (File No. 33-87932), as filed electronically on
September 19, 1995 (Accession No. 0000950109-95-003821).
9. Incorporated by reference to Post-Effective Amendment No. 29 to
Registration Statement on Form N-4 (File No. 33-34370), as filed
electronically on August 18, 1997 (Accession No. 0000950146-97-001290).
10. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form S-1 (File No. 33-60477), as filed electronically on April
15, 1996 (Accession No. 0000950146-96-000534).
11. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-75964), as filed
electronically on February 11, 1997 (Accession No. 0000950146-97-000159).
12. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-91846), as filed
electronically on October 30, 1997 (Accession No. 0000950146-97-001589).
<PAGE>
13. Incorporated by reference to Post-Effective Amendment No. 3 to Registration
Statement on Form N-4 (File No. 33-88720), as filed electronically on June
28, 1996 (Accession No. 0000928389-96-000136).
14. Incorporated by reference to Post-Effective Amendment No. 4 to Registration
Statement on Form N-4 (File No. 333-01107), as filed electronically on
February 26, 1997 (Accession No. 0000950146-97-000241).
15. Incorporated by reference to Post-Effective Amendment No. 14 to
Registration Statement on Form N-4 (File No. 33-75964), as filed
electronically on July 29, 1997 (Accession No. 0000950146-97-001101).
16. Incorporated by reference to Post-Effective Amendment No. 27 to
Registration Statement on Form N-4 (File No. 33-34370), as filed
electronically on April 16, 1997 (Accession No. 0000950146-97-000617).
17. Incorporated by reference to Post-Effective Amendment No. 24 to
Registration Statement on Form N-4 (File No. 33-34370), as filed
electronically on September 16, 1996 (Accession No. 0000912057-96-020393).
18. Incorporated by reference to Pre-Effective Amendment No. 1 to Registration
Statement on Form S-6 (File No. 333-27337), as filed electronically on
December 9, 1997 (Accession No. 0000950146-97-001872).
<PAGE>
Item 25. Directors and Officers of the Depositor
Name and Principal
Business Address* Positions and Offices with Depositor
- ----------------- ------------------------------------
Thomas J. McInerney Director and President
Timothy A. Holt Director, Senior Vice President and Chief Financial
Officer
Christopher J. Burns Director and Senior Vice President
J. Scott Fox Director and Senior Vice President
John Y. Kim Director and Senior Vice President
Shaun P. Mathews Director and Senior Vice President
Thomas P. Waldron Director
Deborah Koltenuk Vice President and Treasurer, Corporate Controller
Frederick D. Kelsven Vice President and Chief Compliance Officer
Kirk P. Wickman Vice President, General Counsel and Corporate Secretary
* The principal business address of all directors and officers listed is
151 Farmington Avenue, Hartford, Connecticut 06156.
Item 26. Persons Controlled by or Under Common Control with the Depositor or
Registrant
Incorporated herein by reference to Item 26 of Post-Effective Amendment No.
31 to the Registration Statement on Form N-4 (File No. 33-34370), as filed
electronically on November 26, 1997 (Accession No. 0000950146-97-001802).
Item 27. Number of Contract Owners
As of November 30, 1997, there were 60,086 individuals holding interests
in variable annuity contracts funded through Variable Annuity Account B.
Item 28. Indemnification
Reference is hereby made to Section 33-771(f) of the Connecticut General
Statutes ("C.G.S.") regarding indemnification of directors and Section 33-776(4)
regarding indemnification of
<PAGE>
officers, employees and agents of Connecticut corporations. These statutes
provide in general that Connecticut corporations incorporated prior to January
1, 1997 shall indemnify their officers, directors, employees and agents against
"liability" (defined as the obligation to pay a judgment, settlement, penalty,
fine, excise tax in the case of an employee benefit plan or reasonable expenses
incurred with respect to a proceeding). In the case of a proceeding by or in the
right of the corporation, indemnification is limited to reasonable expenses
incurred in connection with the proceeding against the corporation to which the
individual was named a party. The corporation's obligation to provide such
indemnification does not apply unless (1) the individual has met the standard of
conduct set forth in Section 33-771; and (2) a determination is made (by
majority vote of a quorum of the board of directors who were not parties to the
proceeding, or if a quorum cannot be obtained, by a committee of the board
selected as described in Section 33-775(b)(2); by special legal counsel selected
by the board of directors or members thereof as described in Section
33-775(b)(3); by shareholders) that the individual met the standard set forth in
Section 33-771; or (3) the court, upon application by the individual, determines
in view of all the circumstances that such person is reasonably entitled to be
indemnified. Also, unless limited by its Certificate of Incorporation, a
corporation must indemnify an individual who was wholly successful on the merits
or otherwise against reasonable expenses incurred by him in connection with a
proceeding to which he was a party because of his relationship as director,
officer, employee or agent of the corporation.
The statute does specifically authorize a corporation to procure indemnification
insurance on behalf of an individual who is or was a director, officer, employer
or agent of the corporation. Consistent with the statute, Aetna Inc. has
procured insurance from Lloyd's of London and several major United States excess
insurers for its directors and officers and the directors and officers of its
subsidiaries, including the Depositor.
Item 29. Principal Underwriter
(a) In addition to serving as the principal underwriter and depositor for
the Registrant, Aetna Life Insurance and Annuity Company (Aetna) also
acts as the investment adviser, only, for Aetna Series Fund, Inc., and
the principal underwriter and investment adviser for Portfolio
Partners, Inc., Aetna Variable Encore Fund, Aetna Variable Fund, Aetna
Generation Portfolios, Inc., Aetna Income Shares, Aetna Investment
Advisers Fund, Inc., Aetna GET Fund, and Aetna Variable Portfolios,
Inc. (all management investment companies registered under the
Investment Company Act of 1940 (1940 Act)). Additionally, Aetna acts as
the principal underwriter and depositor for Variable Life Account B of
Aetna, Variable Annuity Account C of Aetna and Variable Annuity Account
G of Aetna (separate accounts of Aetna registered as unit investment
trusts under the 1940 Act). Aetna is also the principal underwriter for
Variable Annuity Account I of Aetna Insurance Company of America (AICA)
(a separate account of AICA registered as a unit investment trust under
the 1940 Act).
(b) See Item 25 regarding the Depositor.
<PAGE>
(c) Compensation as of December 31, 1996:
(1) (2) (3) (4) (5)
Name of Net Underwriting Compensation on
Principal Discounts and Redemption or Brokerage
Underwriter Commissions Annuitization Commissions Compensation*
- ----------- ---------------- --------------- ----------- -------------
Aetna Life $288,029 $17,661,810
Insurance and
Annuity Company
* Compensation shown in column 5 includes deductions for mortality and
expense risk guarantees and contract charges assessed to cover costs
incurred in the sales and administration of the contracts issued under
Variable Annuity Account B.
Item 30. Location of Accounts and Records
All accounts, books and other documents required to be maintained by
Section 31(a) of the 1940 Act and the rules under it relating to the securities
described in and issued under this Registration Statement are located at the
home office of the Depositor as follows:
Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, Connecticut 06156
Item 31. Management Services
Not applicable
Item 32. Undertakings
Registrant hereby undertakes:
(a) to file a post-effective amendment to this registration statement on
Form N-4 as frequently as is necessary to ensure that the audited
financial statements in the registration statement are never more than
sixteen months old for as long as payments under the variable annuity
contracts may be accepted;
(b) to include as part of any application to purchase a contract offered by
a prospectus which is part of this registration statement on Form N-4,
a space that an applicant can check to request a Statement of
Additional Information; and
<PAGE>
(c) to deliver any Statement of Additional Information and any financial
statements required to be made available under this Form N-4 promptly
upon written or oral request.
(d) The Company hereby represents that it is relying upon and will comply
with the provisions of Paragraphs (1) through (4) of the SEC Staff's
No-Action Letter dated November 22, 1988 with respect to language
concerning withdrawal restrictions applicable to plans established
pursuant to Section 403(b) of the Internal Revenue Code. See American
Counsel of Life Insurance; SEC No-Action Letter, [1989 Transfer Binder]
Fed. SEC. L. Rep. (CCH) P. 78,904 at 78,523 (November 22, 1988).
(e) Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or
otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or paid
by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the Registrant will, unless in the opinion
of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question of whether
such indemnification by it is against public policy as expressed in the
Act and will be governed by the final adjudication of such issue.
(f) Aetna Life Insurance and Annuity Company represents that the fees and
charges deducted under the contracts covered by this registration
statement, in the aggregate, are reasonable in relation to the services
rendered, the expenses expected to be incurred, and the risks assumed
by the insurance company.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant, Variable Annuity Account B of Aetna Life Insurance and
Annuity Company has duly caused this Post-Effective Amendment to its
Registration Statement on Form N-4 (File No. 33-34370) to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Hartford,
State of Connecticut, on the 16th day of December, 1997.
VARIABLE ANNUITY ACCOUNT B OF
AETNA LIFE INSURANCE AND ANNUITY COMPANY
(Registrant)
By: AETNA LIFE INSURANCE AND ANNUITY COMPANY
(Depositor)
By: Thomas J. McInerney*
-----------------------------------------
Thomas J. McInerney
President
As required by the Securities Act of 1933, this Post-Effective Amendment
No. 32 to the Registration Statement has been signed by the following persons in
the capacities and on the dates indicated.
Signature Title Date
- --------- ----- ----
Thomas J. McInerney* Director and President )
- ------------------------- (principal executive officer) )
Thomas J. McInerney )
)
Timothy A. Holt* Director, Senior Vice President )
- ------------------------- and Chief Financial Officer )
Timothy A. Holt )
)
Christopher J. Burns* Director ) December
- ------------------------- )
Christopher J. Burns ) 16, 1997
)
J. Scott Fox* Director )
- ------------------------- )
J. Scott Fox )
)
John Y. Kim* Director )
- ------------------------- )
John Y. Kim )
<PAGE>
Shaun P. Mathews* Director )
- ------------------------- )
Shaun P. Mathews )
)
Thomas P. Waldron* Director )
- ------------------------- )
Thomas P. Waldron )
)
Deborah Koltenuk* Vice President and Treasurer, )
- ------------------------- Corporate Controller )
Deborah Koltenuk )
By: /s/ Julie E. Rockmore
-----------------------------
Julie E. Rockmore
*Attorney-in-Fact
<PAGE>
VARIABLE ANNUITY ACCOUNT B
EXHIBIT INDEX
Exhibit No. Exhibit Page
99-B.1 Resolution of the Board of Directors of Aetna Life *
Insurance and Annuity Company establishing Variable
Annuity Account B
99-B.3.1 Selling Agreement *
99-B.3.2 Alternative Form of Wholesaling Agreement and Related *
Selling Agreement
99-B.3.3 Federated Broker Dealer Agreement (9/2/94) *
99-B.4.1 Variable Annuity Contract G-CDA-97(NY) ______
99-B.4.2 Variable Annuity Contract Certificate GMCC-97(NY) to ______
Contract G-CDA-97(NY)
99-B.4.3 Variable Annuity Contract G-MP1(5/97) *
99-B.4.4 Variable Annuity Contract Certificate MP1CERT(5/97) *
99-B.4.5 Variable Annuity Contract I-MP1(5/97) *
99-B.4.6 Variable Annuity Contract G-MP1(5/96) *
99-B.4.7 Variable Annuity Contract Certificate MP1CERT(5/96) *
99-B.4.8 Variable Annuity Contract I-MP1(5/96) *
99-B.4.9 Variable Annuity Contract G-CDA-96(NY) *
99-B.4.10 Variable Annuity Contract Certificate GMCC-96(NY) *
99-B.4.11 Variable Annuity Contracts and Certificates *
G-CDA-IC(NQ), G-CDA-IC(IR), I-CDA-IC(NQ/MP),
I-CDA-IC(IR/MP), GMCC-IC(NQ)
99-B.4.12 Variable Annuity Contracts and Certificates *
G-CDA-IC(IR/NY), GMCC-IC(IR/NY), G-CDA-IC(NQ/NY),
and GMCC-IC(NQ/NY)
*Incorporated by reference
<PAGE>
Exhibit No. Exhibit Page
99-B.4.13 Endorsements MP1IRA(5/97) and I-MP1IRA(5/97) to Contract *
G-MP1(5/96) and Certificate MP1CERT(5/96)
99-B.4.14 Endorsements MP1QP(5/97) and I-MP1QP(5/97) to Contract *
G-MP1(5/96) and Certificate MP1CERT(5/96)
99-B.4.15 Endorsements MP1TDA(5/97) and I-MP1TDA(5/97) to Contract *
G-MP1(5/96) and Certificate MP1CERT(5/96)
99-B.4.16 Endorsements MP1DC(5/97) and I-MP1DC(5/97) to Contract *
G-MP1(5/96) and Certificate MP1CERT(5/96)
99-B.4.17 Endorsement G-MP1IRA(11/96)) to Contract G-CDA-96(NY) *
and Certificate GMCC-96(NY)
99-B.4.18 Endorsements MP1END(5/97) and I-MP1END(5/97) to Contract *
GMP1(5/96) and Certificate MP1CERT(5/96)
99-B.4.19 Endorsement MP1END(9/97) to Contract G-MP1(5/96) and *
Certificate MP1CERT(5/96)
99-B.4.20 Endorsement I-MP1END(9/97) to Contract I-MP1(5/96) *
99-B.4.21 Endorsement E1-MPROTH-97 to Contract G-MP1 (5/97) ___
99-B.4.22 Endorsement EI1MPROTH-97 to Contract I-MP1 (5/97) ___
99-B.4.23 Endorsement MP1IRA (11/97) to Contract G-MP1 (5/97) ___
99-B.4.24 Endorsement I-MP1IRA (11/97) to Contract I-MP1 (5/97) ___
99-B.4.25 Contract Schedule I Accumulation Period (G-MP1 (11/97)-5) ___
to Group Contract (G-MP1 (5/97))
99-B.4.26 Contract Schedule I Accumulation Period (I-MP1 (11/97)-5) ___
to Individual Contract (I-MP1 (5/97))
99-B.5.1 Variable Annuity Contract Application (300-MAR-IB) *
99-B.5.2 Variable Annuity Contract Application (710.6.13) *
99-B.5.3 Variable Annuity Contract Application MPAPPNY (1/96) ___
99-B.6.1 Certificate of Incorporation of Aetna Life Insurance and *
Annuity Company
99-B.6.2 Amendment of Certificate of Incorporation of Aetna Life *
Insurance and Annuity Company
99-B.6.3 By-Laws, as amended September 17, 1997, of Aetna Life *
Insurance and Annuity Company
99-B.8.1 Fund Participation Agreement (Amended and Restated) *
between Aetna Life Insurance and Annuity Company, Alger
American Fund and Fred Alger Management, Inc. dated
March 31, 1995
*Incorporated by reference
<PAGE>
Exhibit No. Exhibit Page
99-B.8.2 Fund Participation Agreement between Aetna Life *
Insurance and Annuity Company and Calvert Asset
Management Company, Inc. (Calvert Responsibly Invested
Balanced Portfolio, formerly Calvert Socially
Responsible Series) dated March 13, 1989 and amended
December 27, 1993
99-B.8.3 Second Amendment dated January 1, 1996 to Fund *
Participation Agreement between Aetna Life Insurance and
Annuity Company and Calvert Asset Management Company, Inc.
(Calvert Responsibly Invested Balanced Portfolio,
formerly Calvert Socially Responsible Series) dated
March 13, 1989 and amended December 27, 1993
99-B.8.4 Third Amendment dated February 11, 1997 to Fund *
Participation Agreement between Aetna Life Insurance and
Annuity Company and Calvert Asset Management Company, Inc.
(Calvert Responsibly Invested Balanced Portfolio,
formerly Calvert Socially Responsible Series) dated
March 13, 1989 and amended December 27, 1993 and January
1, 1996
99-B.8.5 Fourth Amendment dated February 28, 1997 to Fund *
Participation Agreement between Aetna Life Insurance and
Annuity Company and Calvert Asset Management Company, Inc.
(Calvert Responsibly Invested Balanced Portfolio,
formerly Calvert Socially Responsible Series) dated
March 13, 1989 and amended December 27, 1993, January 1,
1996, and February 11, 1997
99-B.8.6 Fund Participation Agreement by and among Aetna Life *
Insurance and Annuity Company, Insurance Management
Series and Federated Advisors dated July 1, 1994
99-B.8.7 Fund Participation Agreements between Aetna Life *
Insurance and Annuity Company, Variable Insurance
Products Fund and Fidelity Distributors Corporation
dated February 1, 1994 and amended on December 15, 1994,
February 1, 1995, May 1, 1995, January 1, 1996 and March
1, 1996
*Incorporated by reference
<PAGE>
Exhibit No. Exhibit Page
99-B.8.8 Fifth Amendment, dated as of May 1, 1997, to the Fund *
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May
1, 1995, January 1, 1996 and March 1, 1996
99-B.8.9 Fund Participation Agreement between Aetna Life *
Insurance and Annuity * Company, Variable Insurance
Products Fund II and Fidelity Distributors Corporation
dated February 1, 1994 and amended on December 15, 1994,
February 1, 1995, May 1, 1995, January 1, 1996 and
March 1, 1996
99-B.8.10 Fifth Amendment, dated as of May 1, 1997, to the Fund *
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995,
May 1, 1995, January 1, 1996 and March 1, 1996
99-B.8.11 Service Agreement between Aetna Life Insurance and *
Annuity Company and Fidelity Investments Institutional
Operations Company dated as of November 1, 1995
99-B.8.12 Amendment dated January 1, 1997 to Service Agreement *
between Aetna Life Insurance and Annuity Company and
Fidelity Investments Institutional Operations Company
dated as of November 1, 1995
99-B.8.13 Fund Participation Agreement between Aetna Life *
Insurance and Annuity * Company and Janus Aspen Series
dated April 19, 1994, and amended June 15, 1994, July
31, 1995 and March 1, 1996
99-B.8.14 Fund Participation Agreement between Aetna Life *
Insurance and Annuity Company and Lexington Management
Corporation regarding Natural Resources Trust dated
December 1, 1988 and amended February 11, 1991
*Incorporated by reference
<PAGE>
Exhibit No. Exhibit Page
99-B.8.15 Fund Participation Agreement between Aetna Life *
Insurance and Annuity Company, Lexington Emerging
Markets Fund, Inc. and Lexington Management Corporation
(its investment advisor) dated April 28, 1994
99-B.8.16 Fund Participation Agreement among MFS Variable *
Insurance Trust, Aetna Life Insurance and Annuity
Company and Massachusetts Financial Services Company
dated April 30, 1996
99-B.8.17 First Amendment dated September 3,1996 to Fund *
Participation Agreement among MFS Variable Insurance
Trust, Aetna Life Insurance and Annuity Company and
Massachusetts Financial Services Company dated April 30,
1996
99-B.8.18 Second Amendment dated March 14, 1997 to Fund *
Participation Agreement among MFS Variable Insurance
Trust, Aetna Life Insurance and Annuity Company and
Massachusetts Financial Services Company dated April 30,
1996
99-B.8.19 Fund Participation Agreement between Aetna Life *
Insurance and Annuity Company and Oppenheimer Variable
Annuity Account Funds and Oppenheimer Funds, Inc. dated
March 11, 1997
99-B.8.20 Service Agreement between Oppenheimer Funds, Inc. and *
Aetna Life Insurance and Annuity Company dated March 11,
1997
99-B.8.21 Fund Participation Agreement between Aetna Life *
Insurance and Annuity Company, Investors Research
Corporation and TCI Portfolios, Inc. dated July 29, 1992
and amended December 22, 1992 and June 1, 1994
99-B.8.22 Administrative Service Agreement between Aetna Life *
Insurance and Annuity Company and Agency, Inc.
99-B.9 Opinion and Consent of Counsel ______
99-B.10 Consent of Independent Auditors **
99-B.13 Schedule for Computation of Performance Data *
*Incorporated by reference
**To be filed by amendment
<PAGE>
Exhibit No. Exhibit Page
99-B.15.1 Powers of Attorney *
99-B.15.2 Authorization for Signatures *
27 Financial Data Schedule **
*Incorporated by reference
**To be filed by Amendment
-------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
Hartford, Connecticut 06156
(800) 531-4547
Aetna Life Insurance and Annuity Company, herein
called Aetna, agrees to pay the benefits stated
in this Contract.
Specifications
- --------------------------------------------------------------------------------
Plan
SPECIMEN
- --------------------------------------------------------------------------------
Type of Plan
SPECIMEN
- --------------------------------------------------------------------------------
Contract Holder
SPECIMEN
- --------------------------------------------------------------------------------
Annuitant
SPECIMEN
- --------------------------------------------------------------------------------
Contract No.
SPECIMEN
- --------------------------------------------------------------------------------
Effective Date
SPECIMEN
- --------------------------------------------------------------------------------
This Contract is Delivered in NEW YORK and is Subject to the Laws of that
Jurisdiction
THE VARIABLE FEATURES OF THE CONTRACT ARE DESCRIBED IN PARTS III AND IV.
Right to Cancel
- --------------------------------------------------------------------------------
The Contract Holder may cancel this Contract within 10 days of receiving it by
returning this Contract along with a written notice to Aetna at the above
address or to the agent from whom it was purchased. Within 7 days after it
receives the notice of cancellation and this Contract at its Home Office, Aetna
will return the entire consideration paid.
This page, the following pages, and the application make up the entire Contract.
Signed at the Home Office on the Effective Date.
/s/ Dan Kearney /s/ Kirk Wickman
President Secretary
Group Variable, Fixed, or Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA.
APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN INCREASE OR
DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT
APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
G-CDA-97(NY)
<PAGE>
Specifications
- --------------------------------------------------------------------------------
Guaranteed There is a guaranteed interest rate
Interest Rate for Purchase Payment(s) held in the ALIAC
Guaranteed Account (see Contract Schedule I).
- --------------------------------------------------------------------------------
Deductions from There will be deductions for mortality and
the Separate expense risks and administrative fees (see
Account Contract Schedule I and II).
- --------------------------------------------------------------------------------
Deduction from Purchase Payment(s) are subject to a deduction
Purchase for premium taxes, if any (see 3.01.)
Payment(s)
- --------------------------------------------------------------------------------
Surrender Fee There will be a charge deducted upon surrender
(see Contract Schedule I).
This Contract is a legal contract and constitutes the entire legal relationship
between Aetna and the Contract Holder.
READ THIS CONTRACT CAREFULLY. This Contract sets forth, in detail, all of the
rights and obligations of both you and Aetna. IT IS THEREFORE IMPORTANT THAT YOU
READ THIS CONTRACT CAREFULLY.
2
<PAGE>
Contract Schedule I
Accumulation Period
Separate Account
- --------------------------------------------------------------------------------
Separate Account: Variable Annuity Account B
Charges to Separate A daily charge isdeducted from any portion of the
Account: Current Value allocated to the Separate Account.
The deduction is the daily equivalent of the
annual effective percentage shown in the following
chart:
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
Total Separate Account -----
Charges 1.40%
ALIAC Guaranteed Account (AG Account)
- --------------------------------------------------------------------------------
Minimum Guaranteed 3.0%.
Interest Rate
(effective
annual rate
of return):
Separate Account and AG Account
- --------------------------------------------------------------------------------
Minimum Initial Purchase $5,000 ($1,500 for a qualified plan)
Payment:
Maximum Initial Purchase $1,000,000
Payment Without Home
Office Approval:
Transfers: An unlimited number of Transfers may be made
during the Accumulation Period. Aetna allows 12
free Transfers in any calendar year. Thereafter,
Aetna reserves the right to charge $10 for each
subsequent Transfer.
Minimum Transfer Amount: $500
Maintenance Fee: The annual Maintenance Fee is $30. If the Current
Value is $50,000 or more on the date the
Maintenance Fee is to be deducted, the Maintenance
Fee is $0.
3
<PAGE>
Contract Schedule I (Cont'd)
Accumulation Period
Separate Account and AG Account (Cont'd)
- --------------------------------------------------------------------------------
Surrender Fee: For each surrender, the Surrender Fee will
be determined as follows:
Surrender Fee
as percentage
Length of Time from Deposit (of Net
of Net Purchase Payment (Years) Purchase Payment)
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
Systematic Withdrawal The specified payment or specified percentage may
Option (SWO) Percentage: not be greater than 10% of the Current Value at
time of election.
SWO Minimum Initial $20,000
Current Value:
SWO Minimum Payment Amount: $100
See 1. GENERAL DEFINITIONS for explanations.
4
<PAGE>
Contract Schedule II
Annuity Period
Separate Account
- --------------------------------------------------------------------------------
Charges to Separate Account: A daily charge at an annual effective rate of
1.25% for Annuity mortality and expense risks. The
administrative charge is established upon election
of an Annuity option. This charge will not exceed
0.25%.
Variable Annuity Assumed If a Variable Annuity is chosen, an assumed annual
Annual Net Return Rate: net return rate of 5.0% may be elected. If 5.0% is
not elected, Aetna will use an assumed annual net
return rate of 3.5%.
The assumed annual net return rate factor for 3.5%
per year is 0.9999058.
The assumed annual net return rate factor for 5.0%
per year is 0.9998663.
If the portion of a Variable Annuity payment for
any Fund is not to decrease, the Annuity return
factor under the Separate Account for that Fund
must be:
(a) 4.75% on an annual basis plus an annual return
of up to 0.25% to offset the administrative
charge set at the time Annuity payments
commence if an assumed annual net return rate
of 3.5% is chosen; or
(b) 6.25% on an annual basis plus an annual return
of up to 0.25% to offset the administrative
charge set at the time Annuity payments
commence, if an assumed annual net return rate
of 5% is chosen.
Fixed Annuity
- --------------------------------------------------------------------------------
Minimum Guaranteed 3.0%
Interest Rate (effective
annual rate of return):
See 1. GENERAL DEFINITIONS for explanations.
5
<PAGE>
TABLE OF CONTENTS
Page
I. GENERAL DEFINITIONS
- ------------------------------------------------------------------------------
1.01 Account..............................................................8
1.02 Accumulation Period..................................................8
1.03 Adjusted Current Value...............................................8
1.04 ALIAC Guaranteed Account (AG Account)................................8
1.05 Annuitant............................................................8
1.06 Annuity..............................................................8
1.07 Beneficiary..........................................................8
1.08 Certificate Holder...................................................8
1.09 Code.................................................................8
1.10 Contract.............................................................8
1.11 Contract Holder......................................................9
1.12 Current Value........................................................9
1.13 Deposit Period.......................................................9
1.14 Fixed Annuity........................................................9
1.15 Fund(s)..............................................................9
1.16 General Account......................................................9
1.17 Guaranteed Rate -- AG Account........................................9
1.18 Guaranteed Term......................................................9
1.19 Guaranteed Term(s) Groups............................................9
1.20 Maintenance Fee.....................................................10
1.21 Market Value Adjustment (MVA).......................................10
1.22 Matured Term Value..................................................10
1.23 Matured Term Value Transfer.........................................10
1.24 Maturity Date.......................................................10
1.25 Net Purchase Payment(s).............................................10
1.26 Nonunitized Separate Account........................................10
1.27 Purchase Payment(s).................................................10
1.28 Rebalancing Program.................................................10
1.29 Reinvestment........................................................11
1.30 Separate Account....................................................11
1.31 Surrender Value.....................................................11
1.32 Transfers...........................................................11
1.33 Valuation Period (Period)...........................................11
1.34 Variable Annuity....................................................11
II. GENERAL PROVISIONS
- ------------------------------------------------------------------------------
2.01 Change of Contract..................................................11
2.02 Change of Fund(s)...................................................12
2.03 Nonparticipating Contract...........................................12
2.04 Payments and Elections..............................................13
2.05 State Laws..........................................................13
2.06 Control of Contract.................................................13
2.07 Designation of Beneficiary..........................................13
2.08 Misstatements and Adjustments.......................................14
2.09 Incontestability....................................................14
6
<PAGE>
Page
2.10 Grace Period........................................................14
2.11 Individual Certificates.............................................14
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
- ------------------------------------------------------------------------------
3.01 Net Purchase Payment................................................14
3.02 Certificate Holder's Account........................................14
3.03 Fund(s) Record Units -- Separate Account............................15
3.04 Net Return Factor(s) -- Separate Account............................15
3.05 Fund Record Unit Value -- Separate Account..........................15
3.06 Market Value Adjustment.............................................15
3.07 Transfer of Current Value from the Funds or
ALIAC Guaranteed Account............................................17
3.08 Notice to the Certificate Holder....................................18
3.09 Loans...............................................................18
3.10 Systematic Withdrawal Option (SWO)..................................18
3.11 Death Benefit Amount................................................19
3.12 Death Benefit Options Available to Beneficiary......................21
3.13 Liquidation of Surrender Value......................................22
3.14 Surrender Fee.......................................................22
3.15 Payment of Surrender Value..........................................23
IV. ANNUITY PROVISIONS
- ------------------------------------------------------------------------------
4.01 Choices to be Made..................................................23
4.02 Terms of Annuity Options............................................24
4.03 Death of Annuitant/Beneficiary......................................25
4.04 Fund(s) Annuity Units -- Separate Account...........................26
4.05 Fund(s) Annuity Unit Value -- Separate Account......................26
4.06 Annuity Net Return Factor(s) -- Separate Account....................26
4.07 Annuity Options.....................................................27
7
<PAGE>
I. GENERAL DEFINITIONS
- --------------------------------------------------------------------------------
1.01 Account: A record established for each Certificate Holder
to maintain the value of the Net Purchase Payment
held on his/her behalf during the Accumulation
Period.
1.02 Accumulation Period: The period during which the Net Purchase
Payment(s) are applied to an Account to provide
future Annuity payment(s).
1.03 Adjusted Current Value: The Current Value of an Account plus or minus any
aggregate ALIAC Guaranteed Account MVA, if
applicable. (See 1.21)
1.04 ALIAC Guaranteed An accumulation option where Aetna guarantees
Account (AG Account): stipulated rate(s) of interest for specified
periods of time. All assets of Aetna, including
amounts in the Nonunitized Separate Account, are
available to meet the guarantees under the AG
Account.
1.05 Annuitant: The person whose life is measured for purposes of
the Guaranteed Death Benefit and the duration of
Annuity payments under this Contract.
1.06 Annuity: Payment of an income:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.07 Beneficiary: The individual or estate entitled to receive any
payment from the Contract upon the death of the
Annuitant, or if the Certificate Holder is
different from the Annuitant, upon the death of
the Certificate Holder. If the Account is held by
joint Certificate Holders, the survivor will be
deemed the designated Beneficiary and any other
Beneficiary on record will be treated as the
contingent Beneficiary.
1.08 Certificate Holder: A person who purchases an interest in this
Contract as evidenced by a certificate. Aetna
reserves the right to limit ownership to natural
persons. If more than one Certificate Holder owns
an account, each Certificate Holder will be a
joint Certificate Holder. Unless we allow
otherwise in response to a written request prior
to Contract issue, any joint Certificate Holder
must be the spouse of the other joint Certificate
Holder. Joint Certificate Holders have joint
ownership rights and both must authorize
exercising any ownership rights unless Aetna
allows otherwise. If the account is owned by a
nonnatural person, the death benefit will be paid
at the death of the Annuitant.
1.09 Code: The Internal Revenue Code of 1986, as it may be
amended from time to time.
1.10 Contract: This agreement between Aetna and the Contract
Holder.
8
<PAGE>
1.11 Contract Holder: The entity to which a group Contract is issued.
1.12 Current Value: As of the most recent Valuation Period, the Net
Purchase Payment and any additional amount
deposited pursuant to 3.11 plus any interest added
to the portion allocated to the ALIAC Guaranteed
Account; and plus or minus the investment
experience of the portion allocated to the Funds
since deposit; less all Maintenance Fees deducted,
any amounts surrendered and any amounts applied to
an Annuity.
1.13 Deposit Period: A calendar week, a calendar month, a calendar
quarter, or any other period of time specified by
Aetna during which Net Purchase Payment(s),
Transfers and Reinvestments are accepted into the
ALIAC Guaranteed Account for one or more
Guaranteed Terms. Aetna reserves the right to
extend the Deposit Period.
1.14 Fixed Annuity: An Annuity with payments that do not vary in
amount.
1.15 Fund(s): The open-end management investment companies
(mutual funds) in which the Separate Account
invests.
1.16 General Account: The Account holding the assets of Aetna, other
than those assets held in Aetna's separate
accounts.
1.17 Guaranteed Rate -- Aetna will declare the interest rate applicable to
AG Account: a specific Guaranteed Term at the start of the
Deposit Period for that Guaranteed Term. The rate
is guaranteed by Aetna for that Deposit Period and
the ensuing Guaranteed Term. The Guaranteed Rate
is an annual effective yield. That is, interest is
credited daily at a rate that will produce the
Guaranteed Rate over the period of a year. No
Guaranteed Rate will ever be less than the Minimum
Guaranteed Rate shown on Contract Schedule I.
1.18 Guaranteed Term: The period of time for which AG Account Guaranteed
Rate is guaranteed on Net Purchase Payments,
Transfers and Reinvestments made into a current
Deposit Period for the AG Account. Such period
begins on the day following the close of the
Deposit Period and ends on the designated Maturity
Date. Guaranteed Terms are offered at Aetna's
discretion for various lengths of time ranging up
to and including ten years.
During a Deposit Period, Aetna may make available
any number of Guaranteed Terms. The Contract
Holder may allocate Net Purchase Payments and
Transfers into any or all of the available
Guaranteed Terms.
1.19 Guaranteed Term(s) All AG Account Guaranteed Term(s) with the same
Groups: length of time from the close of the Deposit
Period until the designated Maturity Date.
9
<PAGE>
1.20 Maintenance Fee: The Maintenance Fee (see Contract Schedule I) will
be deducted during the Accumulation Period from
the Current Value on each anniversary of the date
the Account is established and upon surrender of
the entire Account.
1.21 Market Value Adjustment An adjustment that may apply to an amount
(MVA): withdrawn or transferred from an AG Account
Guaranteed Term prior to the end of that
Guaranteed Term. The adjustment reflects the
change in the value of the investment due to
changes in interest rates since the date of
deposit and is computed using the formula given in
3.06. The adjustment is expressed as a percentage
of each dollar being withdrawn or transferred.
1.22 Matured Term Value: The amount payable on an AG Account Guaranteed
Term's Maturity Date.
1.23 Matured Term Value During the calendar month following an AG Account
Transfer: Maturity Date, the Certificate Holder may notify
Aetna's Home Office in writing to Transfer or
surrender all or part of the Matured Term Value,
plus interest at the new Guaranteed Rate accrued
thereon, from the AG Account without an MVA. This
provision only applies to the first such written
request received from the Certificate Holder
during this period for any Matured Term Value.
1.24 Maturity Date: The last day of an AG Account Guaranteed Term.
1.25 Net Purchase The Purchase Payment less premium taxes, if
Payment(s): applicable.
1.26 Nonunitized Separate A separate account subject to the laws of New York
Account: set up by Aetna under Title 38, Section 38a-433,
of the Connecticut General Statutes, that holds
assets for AG Account Terms. There are no discrete
units for this Account. The Certificate Holder
does not participate in the investment gain or
loss from the assets held in the Nonunitized
Separate Account. Such gain or loss is borne
entirely by Aetna. These assets may be chargeable
with liabilities arising out of any other business
of Aetna.
1.27 Purchase Payment(s): Payment(s) accepted by Aetna at its Home Office.
Aetna reserves the right to refuse to accept any
Purchase Payment at any time for any reason. No
advance notice will be given to the Certificate
Holder.
1.28 Rebalancing Program: A program that allows Contract Holders to have
portions of their Current Value automatically
reallocated annually to a specified percentage.
Only the portion of the Current Value held in the
separate account can be rebalanced. Contract
Holders may participate in this program by
completing the Rebalancing Section of the
enrollment form, or by requesting the service in
writing from the Company's Home Office.
Reallocations under the Rebalancing Program will
not be counted for purposes of any transfer
limitations imposed under the contract.
10
<PAGE>
1.29 Reinvestment: Aetna will mail a notice to the Certificate Holder
at least 18 calendar days and not more than 45
days before a Guaranteed Term's Maturity Date.
This notice will contain the Terms available
during current Deposit Periods with their
Guaranteed Rate, and projected Matured Term Value.
If no specific direction is given by the
Certificate Holder prior to the Maturity Date,
each Matured Term Value will be reinvested in the
current Deposit Period for a Guaranteed Term of
the same duration. If a Guaranteed Term of the
same duration is unavailable, each Matured Term
Value will automatically be reinvested in the
current Deposit Period for the next shortest
Guaranteed Term available. If no shorter
Guaranteed Term is available, the next longer
Guaranteed Term will be used. Aetna will mail a
confirmation statement to the Certificate Holder
the next business day after the Maturity Date.
This notice will state the Guaranteed Term and
Guaranteed Rate which will apply to the reinvested
Matured Term Value.
1.30 Separate Account: A separate account that buys and holds shares of
the Fund(s). Income, gains or losses, realized or
unrealized, are credited or charged to the
Separate Account without regard to other income,
gains or losses of Aetna. Aetna owns the assets
held in the Separate Account and is not a trustee
as to such amounts. This Separate Account
generally is not guaranteed and is held at market
value. The assets of the Separate Account, to the
extent of reserves and other contract liabilities
of the Account, shall not be charged with other
Aetna liabilities.
1.31 Surrender Value: The amount payable by Aetna upon the surrender of
any portion of an account.
1.32 Transfers: The movement of invested amounts among the
available Fund(s) and the AG Account under this
Contract during the Accumulation Period.
1.33 Valuation Period The period of time for which a Fund determines its
(Period): net asset value, usually from 4:15 p.m. Eastern
time each day the New York Stock Exchange is open
until 4:15 p.m. the next such day, or such other
day that one or more of the Funds determines its
net asset value.
1.34 Variable Annuity: An Annuity with payments that vary with the net
investment results of one or more Funds held under
the Separate Account.
II. GENERAL PROVISIONS
- --------------------------------------------------------------------------------
2.01 Change of Contract: Only an authorized officer of Aetna may change the
terms of this contract. Aetna will notify the
Contract Holder in writing at least 30 days before
the effective date of any change. Any change will
not affect the amount or terms of any Annuity
which begins before the change.
11
<PAGE>
2.01 Change of Contract Aetna may make any change that affects the AG
(Cont'd): least 30 days' advance written notice to the
Contract Holder and the Certificate Holder. Any
such change shall become effective for any new
Term and will be applicable only if it is more
favorable to the Contract Holder and/or the
Certificate Holder.
Any change that affects any of the following under
this Contract will not apply to Accounts in
existence before the effective date of the change:
(a) Net Purchase Payment (3.01)
(b) AG Account Guaranteed Rate (1.04)
(c) Net Return Factor(s) -- Separate Account
(3.04)
(d) Current Value (1.12)
(e) Surrender Value (1.31)
(f) Fund(s) Annuity Unit Value -- Separate Account
(4.05)
(g) Annuity Options (4.07)
(h) Fixed Annuity Guaranteed Interest Rates (4.01)
(i) Transfers (1.32).
This Contract may be changed as deemed necessary
by Aetna to comply with federal or state law. Any
such change is subject to the prior approval of
the New York Insurance Department.
2.02 Change of Fund(s): The assets of the Separate Account are segregated
by Fund. If the shares of any Fund are no longer
available for investment by the Separate Account
or if in our judgment, further investment in such
shares should become inappropriate in view of the
purpose of the Contract, Aetna may cease to make
such Fund shares available for investment under
the Contract prospectively, or Aetna may
substitute shares of another Fund for shares
already acquired. Aetna may also, from time to
time, add additional Funds. Aetna reserves the
right to substitute shares of another Fund for
shares already acquired without a proxy vote.
Any elimination, substitution or addition of Funds
will be done in accordance with federal securities
laws and are subject to the approval of the
Superintendent of the New York Insurance
Department and Aetna will notify the Contract
Holder of such change.
2.03 Nonparticipating The Contract Holder, Certificate Holder's or
Contract: Beneficiaries will not have a right to share in
the earnings of Aetna.
12
<PAGE>
2.04 Payments and While the Certificate Holder is living, Aetna will
Elections: pay the Certificate Holder any Annuity payments as
and when due. After the Certificate Holder's
death, or at the death of the first Certificate
Holder if the Account is owned jointly, any
Annuity payments required to be made will be paid
in accordance with 4.03. Aetna will determine
other payments and/or elections as of the end of
the Valuation Period in which the request is
received at its Home Office. Such payments will be
made within 7 calendar days of receipt at its Home
Office of a written claim for payment which is in
good order, except as provided in 3.15.
2.05 State Laws: The Contract and the Certificate's comply with the
laws of the state in which they are delivered. Any
surrender, death, or Annuity payments are equal to
or greater than the minimum required by such laws.
Annuity tables for legal reserve valuation shall
be as required by state law. Such tables may be
different from Annuity tables used to determine
Annuity payments.
2.06 Control of Contract: This is a Contract is between the Contract Holder
and Aetna. The Contract Holder has title to the
Contract. Nothing in the group annuity contract
invalidates or impairs any right granted to the
Certificate Holder. The Certificate Holder has all
other rights to amounts held in his or her
Account.
Each Certificate Holder shall own all amounts held
in his or her Account. Each Certificate Holder may
make any choices allowed by this Contract for his
or her Account. Certificate Holder choices made
under this contract must be in writing. If the
Account is owned jointly, both joint Certificate
Holders must authorize any Certificate Holder
change in writing. Until receipt of such choices
at Aetna's Home Office, Aetna may rely on any
previous choices made.
The Account may not be attached, alienated, or
subject to the claims of creditors of the Contract
Holder or the Certificate Holder except to the
extent permitted by law.
The Certificate Holder may assign or transfer his
or her rights under the Contract. Aetna reserves
the right not to accept assignment or transfer to
a nonnatural person. Any assignment or transfer
made must be submitted to Aetna's Home Office in
writing and will not be effective until accepted
by Aetna.
2.07 Designation of Each Certificate Holder shall name his or her
Beneficiary: Beneficiary. If the Account is owned jointly, both
joint Certificate Holders must agree in writing to
the Beneficiary designated. The Beneficiary may be
changed at any time. Changes to a Beneficiary must
be submitted to Aetna's Home Office in writing and
will not be effective until accepted by Aetna.
13
<PAGE>
2.08 Misstatements and If Aetna finds the age or sex of any Annuitant to
Adjustments: be misstated, the amount payable under the
Contract shall be adjusted for the correct age or
sex; the amount of any underpayment or
overpayment, with interest at six per cent per
year, shall be credited to, or charged against,
the current or next succeeding payment or payments
to be made by Aetna under the Contract.
2.09 Incontestability: Aetna cannot cancel the Contract because of any
error of fact on the application. Aetna cannot
cancel an Account because of any error of fact on
the enrollment form.
2.10 Grace Period: This Contract will remain in effect even if
Purchase Payments are not continued.
2.11 Individual Aetna shall issue a certificate to each
Certificates Certificate Holder. The certificate will summarize
certain provisions of the contract. Certificates
are for information only and are not a part of the
Contract.
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
- --------------------------------------------------------------------------------
3.01 Net Purchase Payment: This amount is the actual Purchase Payment less
any premium tax. Aetna will generally deduct the
premium tax when Annuity benefits are elected (see
Part IV). If Aetna determines that under
applicable state law, it must pay a premium tax
when the Purchase Payment is received or at any
other time, it will deduct the tax at that time.
The Net Purchase Payment will be credited among:
(a) The current Deposit Period(s) for Guaranteed
Terms under the AG Account; and
(b) The Fund(s) in which the Separate Account
invests.
For each Net Purchase Payment, the Certificate
Holder shall tell Aetna the allocation percentage
to be applied to the current Deposit Period for
each of the available Guaranteed Terms in the AG
Account and/or each Fund. If allocation
instructions are not received along with any
subsequent Net Purchase Payment, the allocation
will be the same as that indicated on the original
application. If the same Guaranteed Term is no
longer available, the Net Purchase Payment will be
allocated to the next shortest Guaranteed Term
available in the current Deposit Period. If no
shorter Guaranteed Term is available, the next
longer Guaranteed Term will be used.
The minimum acceptable additional Purchase Payment
is shown on Contract Schedule I. The maximum
acceptable Purchase Payment without Home Office
approval is also provided on Contract Schedule I.
3.02 Certificate Holder's Aetna will maintain an Account for each
Account: Certificate Holder.
14
<PAGE>
3.03 Fund(s) Record Units -- The portion of the Net Purchase Payment(s) applied
Separate Account: to each Fund under the Separate Account will
determine the number of Fund record units for that
Fund. This number is equal to the portion of the
Net Purchase Payment(s) applied to each Fund
divided by the Fund record unit value (see 3.05)
for the Valuation Period in which the Purchase
Payment is received in good order at Aetna's Home
Office.
3.04 Net Return Factor(s) -- The net return factor(s) are used to compute all
Separate Account: Separate Account record units for any Fund.
The net return factor(s) for each Fund is equal to
1.0000000 plus the net return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by
the Separate Account at the end of the
Valuation Period; minus
(b) The value of the shares of the Fund held by
the Separate Account at the start of the
Valuation Period; plus or minus
(c) Taxes (or reserves for taxes) on the Separate
Account (if any); divided by
(d) The total value of the Fund record units and
Fund Annuity units of the Separate Account at
the start of the Valuation Period; minus
(e) A daily Separate Account charge at an annual
rate as shown on Contract Schedule I for
mortality and expense risks, which may include
profit; and a daily administrative charge.
A net return rate may be more or less
than 0%. The value of a share of the
Fund is equal to the net assets of the
Fund divided by the number of shares
outstanding.
3.05 Fund Record Unit A Fund record unit value is computed by
Value -- Separate multiplying the net return factors for the current
Account: Valuation Period by the Fund record unit value for
the previous Period. The dollar value of Fund
record units, Separate Account assets, and
Variable Annuity payments may go up or down due to
investment gain or loss.
3.06 Market Value Excepted as noted below, there will be an MVA for
Adjustment: a withdrawal from the AG Account before the end of
a Guaranteed Term when the withdrawal is due to:
3.06 Market Value (a) a Transfer; except for Transfers as specified
Adjustment (Cont'd): in 1.23, AG Account Matured Term Value
Transfer;
(b) A full or partial surrender (including a 15%
free withdrawal under 3.14), except for a
partial withdrawal under the Systematic
Withdrawal Option (see 3.10); or
(c) An election of Annuity option 1 (see 4.07).
15
<PAGE>
Full and partial surrenders and Transfers made
within six months after the date of the
Annuitant's death will be the greater of:
(a) The aggregate MVA amount which is the sum of
all market value adjusted amounts calculated
due to a withdrawal of amounts. This total may
be greater or less than the Current Value of
those amounts; or
(b) The applicable portion of the Current Value in
the AG Account. After the six-month period,
the surrender or Transfer will be the
aggregate MVA amount, which may be greater or
less than the Current Value of those amounts.
The greater of the aggregate MVA amount or the
applicable portion of the Current Value applies to
amounts withdrawn from the AG Account on account
of an election of Annuity options 2 or 3 (see
4.07).
Market value adjusted amounts will be equal to the
amount withdrawn multiplied by the following
ratio:
x
---
365
(1 + i)
----------
x
---
365
(1 + j)
Where:
i is the Deposit Period Yield
j is the Current Yield
x is the number of days
remaining, (computed from
Wednesday of the week of
withdrawal) in the Guaranteed
Term.
The Deposit Period Yield will be determined as
follows:
(a) At the close of the last business day of each
week of the Deposit Period, a yield will be
computed as the average of the yields on that
day of U.S. Treasury Notes which mature in the
last three months of the Guaranteed Term.
3.06 Market Value (b) The Deposit Period Yield is the average of
Adjustment (Cont'd): those yields for the Deposit Period. If
withdrawal is made before the close of the
Deposit Period, it is the average of those
yields on each week preceding withdrawal.
The Current Yield is the average of the yields on
the last business day of the week preceding
withdrawal on the same U.S. Treasury Notes
included in the Deposit Period Yield.
16
<PAGE>
In the event that no U.S. Treasury Notes which
mature in the last three months of the Guaranteed
Term exist, Aetna reserves the right to use the
U.S. Treasury Notes that mature in the following
quarter. If U.S. Treasury Notes are no longer
available, a suitable replacement index, subject
to approval of the Superintendent of the New York
Insurance Department, would then be utilized.
A detailed description of the MVA has been filed
with the Superintendent of the New York Insurance
Department.
3.07 Transfer of Current Before an Annuity option is elected, all or any
Value from the Funds portion of the Adjusted Current Value may be
or AG Account: transferred from any Fund or Guaranteed Term of
the AG Account:
(a) To any other Fund; or
(b) To any Guaranteed Term of the AG Account
available in the current Deposit Period.
Transfer requests can be submitted as a percentage
or as a dollar amount. The minimum transfer amount
is shown on Contract Schedule I. Within a
Guaranteed Term Group, the amount to be
surrendered or transferred will be withdrawn first
from the oldest Deposit Period, then from the next
oldest, and so on until the amount requested is
satisfied.
The Certificate Holder may make an unlimited
number of Transfers during the Accumulation
Period. The number of free Transfers allowed by
Aetna is shown on Contract Schedule I. Additional
Transfers may be subject to a Transfer fee as
shown on Contract Schedule I. Amounts transferred
as a Matured Term Value on or within one calendar
month of the Term's Maturity Date do not count
against the annual Transfer limit.
Amounts applied to Guaranteed Terms of the AG
Account may not be transferred to the Funds or to
another Guaranteed Term during the Deposit Period
or for 90 days after the close of the Deposit
Period except for a Matured Term Value(s) during
the calendar month following the Term's Maturity
Date.
Transfers from Guaranteed Terms of the AG Account
are subject to the MVA provisions of 3.06.
17
<PAGE>
3.08 Notice to the The Certificate Holder will receive quarterly
Certificate Holder: statements from Aetna of:
(a) The value of any amounts held in: (1)The AG
Account; and (2)The Fund(s) under the Separate
Account.
(b) The number of any Fund(s) record units; and
(c) The Fund(s) record unit value.
Such number or values will be as of a specific
date no more than 60 days before the date of
the notice.
3.09 Loans: Loans are not available under this Contract.
3.10 Systematic Withdrawal The following distribution options may be elected
Option (SWO): by the Certificate Holder or a Beneficiary during
the Accumulation Period. A distribution option
under which a portion of the Accounts' Current
Value will automatically be surrendered and
distributed each year. SWO payments will be
calculated on the Accounts' full Current Value.
The distributed amount is withdrawn pro rata from
each investment option under the Account. A
Surrender Fee will not be deducted from any
portion of the Current Value which is paid as a
distribution under SWO. Certificate Holders should
consult their tax advisers prior to requesting
this distribution option. Aetna will not be
responsible for any adverse tax consequences due
to receiving SWO payments.
(a) Amount of Distribution: The Certificate Holder
or a Beneficiary may elect one of the three
payment methods described below.
(1) Specified Payment: Payments of a
designated dollar amount. The annual
amount may not be greater than the
percentage of the Account's Current Value
on the date of the SWO election as shown
on Contract Schedule I. This annual
dollar amount will remain constant. The
minimum SWO payment amount is shown on
Contract Schedule I. If SWO payments are
made more frequently than annually, the
designated annual amount is divided by
the number of payments due each year; or
(2) Specified Period: Payments made over a
designated period of time of at least 10
years. The annual amount is calculated by
dividing the Current Value as of December
31 of the year prior to the payment year
by the number of payment years remaining;
or
18
<PAGE>
3.10 Systematic Withdrawal (3) Specified Percentage: Payments of a
Option (SWO) (Cont'd): designated percentage which cannot be
greater than the percentage of the
Current Value at the time of election as
shown on Contract Schedule I. The
percentage may be changed by written
request. Aetna reserves the right to
limit the number of times the percentage
may be changed. The annual amount is
calculated by multiplying the Current
Value as of December 31 of the year prior
to the payment year by the designated
percentage.
Payments upon the Contract Holder's death will
continue to the Beneficiary in the manner
described in 3.11.
(b) Minimum Initial Current Value: The Minimum
Initial Current Value required to begin SWO is
shown on Contract Schedule I. If after
election of this option, the Current Value is
insufficient to make a scheduled SWO payment,
Aetna will distribute the entire balance.
(c) Date of Distribution: The Contract Holder or a
Beneficiary shall specify the first payment
date. The earliest allowable first payment
date is the date on which the Contract Holder
attains age 59 1/2. The latest allowable SWO
payment date is the month of the Annuitant's
90th birthday. As elected by the Contract
Holder, SWO payments will be made on a
monthly, quarterly, semi-annual or annual
basis. If SWO payments are made more
frequently than annually, the designated
annual amount is divided by the number of
payments due each year. Subsequent payments
will be made on the 15th of the appropriate
months or on such other date as Aetna may
designate or allow.
(d) Election and Revocation: SWO may be elected by
the Certificate Holder or Beneficiary if
elected after the Certificate Holders death by
submitting a completed and signed election
form to Aetna's Home Office. Once elected,
this option may be revoked by the Certificate
Holder or Beneficiary, if elected after the
Certificate Holder's death, by submitting a
written request to Aetna at its Home Office.
Any revocation will apply only to amounts not
yet paid. SWO may be elected only once by the
Certificate Holder or by the Beneficiary.
3.11 Death Benefit Amount: If the Certificate Holder or Annuitant dies before
Annuity payments start, the Beneficiary is
entitled to a death benefit under the Account. If
the Account is owned jointly, the death benefit is
paid at the death of the first joint Certificate
Holder to die. The claim date is the date when
proof of death and the Beneficiary's claim are
received in good order at Aetna's Home Office. The
amount of the death benefit is determined as
follows:
(a) Death of Annuitant less than 85 years of age:
The guaranteed death benefit is the greatest
of:
19
<PAGE>
3.11 Death Benefit Amount (1) The sum of all Net Purchase Payment(s)
(Cont'd): made to the Account (as of the date of
death) minus the sum of all amounts
surrendered, applied to an Annuity, or
deducted from the Account;
(2) The highest step-up value as of the date
of death. A step-up value is determined
on each anniversary of the Effective
Date. Each step-up value is calculated as
the Account's Current Value on the
Effective Date anniversary, increased by
the amount of any Purchase Payment(s)
made, and decreased by the sum of all
amounts surrendered, deducted, and/or
applied to an Annuity option since the
Effective Date anniversary.
(3) The Account's Current Value as of the
date of death.
The excess, if any, of the guaranteed death
benefit value over the Account's Current Value
is determined as of the date of death. Any
excess amount will be deposited to the Account
and allocated to Aetna Variable Encore Fund as
of the claim date. The Current Value on the
claim date plus any excess amount deposited
becomes the Account's Current Value.
(b) Death of Annuitant age 85 or greater: The
death benefit amount is the greatest of:
(1) The sum of all Net Purchase Payment(s)
made to the Account (as of the date of
death) minus the sum of all amounts
surrendered, applied to an Annuity, or
deducted from the Account;
(2) The highest step-up value prior to the
Certificate Holder's 85th birthday. A
step-up value is determined on each
anniversary of the Effective Date. Each
step-up value is calculated as the
Account's Current Value on the Effective
Date anniversary, increased by the amount
of any Purchase Payment(s) made, and
decreased by the sum of all amounts
surrendered, deducted, and/or applied to
an Annuity option since the Effective
Date anniversary.
(3) The Account's Current Value as of the
date of death.
The excess, if any of the guaranteed death benefit
value over the Account's Current Value is
determined as of the date of death. Any excess
amount will be deposited in the Account and
allocated to Aetna Variable Encore Fund as of the
claim date. The Current Value on the claim date
plus any excess amount deposited, becomes the
Account's Current Value.
20
<PAGE>
3.11 Death Benefit Amount (c) Death of the Certificate Holder if the
(Cont'd): Certificate Holder is not the Annuitant: The
death benefit amount is the Account's Adjusted
Current Value on the Claim Date. A Surrender
Fee may apply to any full or partial surrender
(see 3.14 and Contract Schedule I).
(d) At the death of a surviving spouse Beneficiary
who continued the Account in his or her own
name, the death benefit amount is equal to the
Account's Current Value less any applicable
Surrender Fee on the amount of any Purchase
Payment(s) made since the death of the
Certificate Holder.
3.12 Death Benefit Options Prior to any election, or until amounts must be
Available to otherwise distributed under this section, the
Beneficiary: Current Value of the account will be retained in
the Account. The Beneficiary has the right under
the Contract to allocate or reallocate any amount
to any of the available investment options
(subject to an MVA, as applicable). The following
options are available to the Beneficiary:
(a) When the Certificate Holder is the Annuitant:
If the Certificate Holder/Annuitant dies, and:
(1) If the Beneficiary is the Certificate
Holder's surviving spouse, the
Beneficiary may exercise all rights under
the Contract and continue in the
Accumulation Period, or may elect (i), or
(ii) below. Under the Code, distributions
from the Account are not required until
the Spousal Beneficiary's death. The
Spousal Beneficiary may elect to:
(i) Apply some or all of the Adjusted
Current Value of the Account to
Annuity option (see 4.07);
(ii) Receive, at any time, a lump sum
payment equal to the Adjusted
Current Value of the Account.
(2) If the Beneficiary is other than the
Certificate's Holder's surviving spouse,
then options (i) or (ii) under (1) above
apply. Any portion of the Adjusted
Current Value of the Account not applied
to an Annuity option within one year of
the Certificate Holder's death, must be
distributed within five years of the date
of death.
(3) If no Beneficiary exists, a lump sum
payment equal to the Adjusted Current
Value will be made to the Certificate
Holder's estate.
(b) When the Certificate Holder is not the
Annuitant and the Certificate Holder dies,
and:
21
<PAGE>
3.12 Death Benefit (1) If the Beneficiary is the Certificate
Options Available Holder's surviving spouse, the
to Beneficiary Beneficiary may exercise all rights under
(Cont'd): the Contract and continue in the
Accumulation Period, or may elect (i), or
(ii) below. Under the Code, distributions
from the Account are not required until
the spousal Beneficiary's death. The
spousal Beneficiary may elect to:
(i) Apply some or all of the Adjusted
Current Value of the Account to an
Annuity option (see 4.07);
(ii) Receive, at any time, a lump sum
payment equal to the Surrender
Value.
(2) If the Beneficiary is other than the
Certificate Holder's surviving spouse,
then options (i), or (ii) under (1) above
apply. Any portion of the Adjusted
Current Value not applied to an Annuity
option within one year of the Certificate
Holder's death, must be distributed
within five years of the date of death.
(3) If no Beneficiary exists, a lump sum
payment equal to the Surrender Value will
be made to the Certificate Holder's
estate.
(c) When the Certificate Holder is not the
Annuitant and the Annuitant dies: The
Beneficiary must elect an Annuity option
within 60 days of the date of death or the
gain, if any, will be includible in the
Beneficiary's income in the tax year in which
the Annuitant dies.
3.13 Liquidation of All or any portion of the Account's Current Value
Surrender Value: may be surrendered at any time as requested by the
Certificate Holder. Surrender requests can be
submitted as a percentage of the Account's
Adjusted Current Value or as a specific dollar
amount. Net Purchase Payment amounts are withdrawn
first, and then the excess value, if any. For any
partial surrender, amounts are withdrawn on a pro
rata basis from the Fund(s) and/or the Guaranteed
Term(s) Groups of the AG Account in which the
Current Value is invested. Within a Guaranteed
Term Group, the amount to be surrendered or
transferred will be withdrawn first from the
oldest Deposit Period, then from the next oldest,
and so on until the amount requested is satisfied.
After deduction of the Maintenance Fee, if
applicable, the surrendered amount shall be
reduced by a Surrender Fee, if applicable.
An MVA may apply to amounts surrendered from the
AG Account.
3.14 Surrender Fee: The Surrender Fee only applies to the Net Purchase
Payment(s) portion surrendered and varies
according to the elapsed time since deposit (see
Contract Schedule I). Net Purchase Payment amounts
are withdrawn in the same order they were applied.
22
<PAGE>
3.14 Surrender Fee No Surrender Fee is deducted from any portion of
(Cont'd): the Net Purchase Payment which is paid:
(a) To a Beneficiary due to the Annuitant's death
before Annuity payments start, up to a maximum
of the aggregate Net Purchase Payment(s) minus
the total of all partial surrenders, amounts
applied to an Annuity and deductions made
prior to the Annuitant's date of death;
(b) As a premium for an Annuity option under this
Contract (see 4.07);
(c) As a distribution under the SWO provision (see
3.10);
(d) At least 12 months after the date of the first
Purchase Payment to the Account, in an amount
equal to or less than 15% of the Current
Value. This applies to the first surrender
request, partial or full, in a calendar year.
The Current Value is calculated as of the date
the surrender request is received in good
order at Aetna's Home Office. This waiver is
not available to the Contract Holder while SWO
is in effect; or
(e) For a full surrender where the Account's
Current Value is $2,500 or less and no
surrenders have been taken from the Contract
within the prior 12 months.
3.15 Payment of Under certain emergency conditions, Aetna may
Surrender Value: defer payment:
(a) For a period of up to 6 months (unless not
allowed by state law); or
(b) As provided by federal law under the
Investment Company Act of 1940.
IV. ANNUITY PROVISIONS
- --------------------------------------------------------------------------------
4.01 Choices to be Made: The Certificate Holder may tell Aetna to apply any
portion of the Adjusted Current Value (minus any
premium tax) for an Annuity option (see 4.07). The
first Annuity payment may not be earlier than one
calendar year after the initial Purchase Payment
nor later than the first day of the month
following the Annuitant's 90th birthday.
When an Annuity option is chosen, Aetna must also
be told if payments are to be made other than
monthly and whether to pay:
4.01 Choices to be Made (a) A Fixed Annuity using the General Account;
(Cont'd):
(b) A Variable Annuity using any of the Fund(s)
available under this Contract for Annuity
purposes; or
(c) A combination of (a) and (b).
23
<PAGE>
If a Fixed Annuity is chosen, the Annuity purchase
rate for the option chosen reflects at least the
Minimum Guaranteed Interest Rate (see Contract
Schedule II), but may reflect a higher interest
rate. If a Variable Annuity is chosen, the initial
Annuity payment for the option chosen reflects the
assumed annual return rate elected. (see Contract
Schedule II).
4.02 Terms of Annuity (a) When payments start, the age of the Annuitant
Options: plus the number of years for which payments
are guaranteed must not exceed 95.
(b) An Annuity option may not be elected if the
first payment would be less than $50 or if the
total payments in a year would be less than
$250 (less if required by state law). Aetna
reserves the right to increase the minimum
first Annuity payment amount and the minimum
annual Annuity payment amount based upon
increases reflected in the Consumer Price
Index-Urban, (CPI-U) since July 1, 1993.
(c) If a Fixed Annuity is chosen and a larger
payment would result from applying the
Surrender Value or, if greater, 95% of what
the surrender would be if there were no
surrender fee, to a current Aetna single
premium immediate Annuity, Aetna will make the
larger payment.
(d) For purposes of calculating the guaranteed
first payment of a Variable Annuity or the
payments for a Fixed Annuity, the Annuitant's
and second Annuitant's adjusted age will be
used. The Annuitant's and second Annuitant's
adjusted age is his or her age as of the
birthday closest to the Annuity commencement
date reduced by one year for Annuity
commencement dates occurring during the period
of time from July 1, 1993 through December 31,
1999. The Annuitant's and second Annuitant's
age will be reduced by two years for Annuity
commencement dates occurring during the period
of time from January 1, 2000 through December
31, 2009. The Annuitant's and second
Annuitant's age will be reduced by one
additional year for Annuity commencement dates
occurring in each succeeding decade.
The Annuity purchase rates for options 2 and 3
are based on mortality from 1983 Table a.
4.02 Terms of Annuity (e) Assumed Annual Net Return Rate is the interest
Options (Cont'd): rate used to determine the amount of the first
Annuity payment under a Variable Annuity as
shown on Contract Schedule II. The Separate
Account must earn this rate plus enough to
cover the mortality and expense risks charges
(which may include profit) and administrative
charges if future Variable Annuity Payments
are to remain level, (see Annuity return
factor under Variable Annuity Assumed Annual
Net Return Rate on Contract Schedule II).
24
<PAGE>
(f) Once elected, Annuity payments cannot be
commuted to a lump sum except for Variable
Annuity payments under option 1 (see 4.07).
The life expectancy of the Annuitant and the
Annuitant and second Annuitant shall be
irrevocable upon the election of an Annuity
option.
4.03 Death of (a) Certificate Holder is Annuitant: When the
Annuitant/Beneficiary: Certificate Holder is the Annuitant and the
Annuitant dies under option 1 or 2, or both
the Annuitant and the second Annuitant die
under option 3(d), the present value of any
remaining guaranteed payments will be paid in
one sum to the Beneficiary, or upon election
by the Beneficiary, any remaining payments
will continue to the Beneficiary. If option 3
has been elected and the Certificate Holder
dies, the remaining payments will continue to
the successor payee. If no successor payee has
been designated, the Beneficiary will be
treated as the successor payee. If the Account
has joint Certificate Holders, the surviving
joint Certificate Holder will be deemed the
successor payee.
(b) Certificate Holder is Not Annuitant: When the
Certificate Holder is not the Annuitant and
the Certificate Holder dies, the remaining
payments will continue to the successor payee.
If no successor payee has been designed, the
Beneficiary will be treated as the successor
payee. If the Account has joint Certificate
Holders, the surviving joint Certificate
Holder will be deemed the successor payee.
If the Annuitant dies under the option 1 or 2,
or if both the Annuitant and the second
Annuitant die under option 3(d), the present
value of any remaining guaranteed payments
will be paid in one sum to the Beneficiary, or
upon the election by the Beneficiary, any
remaining payments will continue to the
Beneficiary. If option 3 has been elected, and
the Annuitant dies, the remaining payments
will continue to the Certificate Holder.
(c) No Beneficiary Named/Surviving: If there is no
Beneficiary, the present value of any
remaining payments will be paid in one sum to
the Certificate Holder, or if the Certificate
Holder is not living, then to the Certificate
Holder's estate.
4.03 Death of Annuitant/ (d) If the Beneficiary or the successor payee dies
Beneficiary (Cont'd): while receiving Annuity payments, the present
value of any remaining guaranteed payments
will be paid in one sum to the successor
Beneficiary/payee, or upon election by the
successor Beneficiary/payee, any remaining
payments will continue to the successor
Beneficiary/payee. If no successor
Beneficiary/payee has been designated, the
present value of any remaining guaranteed
payments will be paid in one sum to the
Beneficiary's/payee's estate.
25
<PAGE>
(e) The present value will be determined as of the
Valuation Period in which proof of death
acceptable to Aetna and a request for payment
is received at Aetna's Home Office. The
interest rate used to determine the first
payment will be used to calculate the present
value.
4.04 Fund(s) Annuity The number of each Fund's Annuity units is based
Units -- Separate on the amount of the first Variable Annuity
Account: payment which is equal to:
(a) The portion of the Current Value applied to
pay a Variable Annuity (minus any premium
tax); divided by
(b) 1,000; multiplied by
(c) The payment rate for
the option chosen.
Such amount, or portion, of the variable payment
will be divided by the appropriate Fund Annuity
unit value (see 4.05) on the tenth Valuation
Period before the due date of the first payment to
determine the number of each Fund Annuity units.
The number of each Fund Annuity units remains
fixed. Each future payment is equal to the sum of
the products of each Fund Annuity unit value
multiplied by the appropriate number of Units. The
Fund Annuity unit value on the tenth Valuation
Period prior to the due date of the payment is
used.
4.05 Fund(s) Annuity For any Valuation Period, a Fund Annuity unit
Unit Value -- value is equal to:
Separate Account:
(a) The value for the previous Period; multiplied
by
(b) The Annuity net return factor(s) (see 4.06
below) for the Period; multiplied by
(c) A factor to reflect the assumed annual net
return rate (see Contract Schedule II).
The dollar value of a Fund Annuity unit value and
Annuity payments may go up or down due to
investment gain or loss.
4.06 Annuity Net Return The Annuity net return factor(s) are used to
Factor(s) -- Separate compute Annuity payments for any Fund.
Account:
The Annuity net return factor(s) for each Fund is
equal to 1.0000000 plus the net return rate.
26
<PAGE>
4.06 Annuity Net Return The net return rate is equal to:
Factor(s) -- Separate (a) The value of the shares of the Fund held by
Account (Cont'd): the Separate Account at the end of a Valuation
Period; minus
(b) The value of the shares of the Fund held by
the Separate Account at the start of the
Valuation Period; plus or minus
(c) Taxes (or reserves for taxes) on the Separate
Account (if any); divided by
(d) The total value of the Fund record units and
Fund Annuity units of the Separate Account at
the start of the Valuation Period; minus
(e) A daily charge for Annuity mortality and
expense risks, which may include profit, and a
daily administrative charge (at the annual
rate as shown on Contract Schedule II).
A net return rate may be more of less than 0%.
The value of a share of the Fund is equal to the
net assets of the Fund divided by the number of
shares outstanding.
Payments shall not be changed due to changes in
the mortality or expense results or administrative
charges.
4.07 Annuity Options: Option 1 -- Payments for a Stated Period of Time
-- An Annuity will be paid for the number of years
chosen. The number of years must be at least 5 and
not more than 30.
If payments for this option are made under a
Variable Annuity, the present value of any
remaining payments may be withdrawn at any time.
If a withdrawal is requested within 3 years after
the start of payments, it will be treated as a
surrender and any applicable Surrender Fee will be
applied (see 3.14).
If a nonspouse Beneficiary elects this option at
the death of the Contract Holder, the period
selected may not extend beyond the Beneficiary's
life expectancy.
Option 2 -- Life Income -- An Annuity will be paid
for the life of the Annuitant. If also chosen,
Aetna will guarantee payments for 60, 120, 180, or
240 months.
Option 3 -- Life Income Based upon the Lives of
Two Annuitants -- An Annuity will be paid during
the lives of the Annuitant and a second Annuitant.
Payments will continue until both Annuitants have
died. When this option is chosen, a choice must be
made of:
27
<PAGE>
4.07 Annuity Options (a) 100% of the payment to continue after the
(Cont'd): first death;
(b) 66-2/3% of the payment to continue after the
first death;
(c) 50% of the payment to continue after the first
death;
(d) Payments for a minimum of 120 months with 100%
of the payment to continue after the first
death; or
(e) 100% of the payment to continue at the death
of the second Annuitant and 50% of the payment
to continue at the death of the Annuitant.
Other Options -- Aetna may make other options
available as allowed by the laws of the state in
which this Contract and the Certificate is
delivered.
28
<PAGE>
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
- --------------------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
- --------------------------------------------------------------------------------
5 3.00% 17.91 53.59 106.78 211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
- --------------------------------------------------------------------------------
29
<PAGE>
OPTION 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Adjusted None 60 120 180 240
Age of ---------------------------------------------------------------------------------
Annuitant Male Female Male Female Male Female Male Female Male Female
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
50 $4.27 $3.90 $4.26 $3.90 $4.22 $3.89 $4.17 $3.86 $4.08 $3.82
51 4.34 3.97 4.33 3.96 4.30 3.95 4.23 3.92 4.14 3.88
52 4.43 4.03 4.41 4.03 4.37 4.01 4.30 3.98 4.20 3.93
53 4.51 4.10 4.50 4.10 4.45 4.08 4.37 4.04 4.26 3.99
54 4.60 4.18 4.59 4.17 4.54 4.15 4.45 4.11 4.32 4.04
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.39 4.11
56 4.80 4.34 4.78 4.33 4.72 4.30 4.61 4.25 4.45 4.17
57 4.91 4.42 4.89 4.41 4.82 4.38 4.69 4.32 4.51 4.23
58 5.03 4.52 5.00 4.51 4.92 4.47 4.78 4.40 4.58 4.30
59 5.15 4.61 5.12 4.60 5.03 4.56 4.87 4.48 4.65 4.37
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.71 4.44
61 5.43 4.83 5.39 4.81 5.27 4.76 5.06 4.66 4.78 4.51
62 5.58 4.95 5.53 4.93 5.39 4.87 5.16 4.75 4.84 4.58
63 5.74 5.08 5.69 5.05 5.53 4.99 5.26 4.85 4.90 4.65
64 5.91 5.21 5.85 5.18 5.66 5.10 5.36 4.95 4.96 4.72
65 6.10 5.36 6.03 5.32 5.81 5.22 5.46 5.05 5.02 4.79
66 6.30 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.08 4.86
67 6.51 5.67 6.41 5.63 6.12 5.50 5.66 5.26 5.13 4.93
68 6.73 5.85 6.62 5.80 6.28 5.65 5.77 5.37 5.18 5.00
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 5.23 5.06
70 7.23 6.25 7.07 6.18 6.61 5.97 5.96 5.60 5.27 5.12
71 7.51 6.47 7.32 6.39 6.79 6.14 6.05 5.71 5.31 5.18
72 7.80 6.71 7.58 6.62 6.96 6.32 6.14 5.83 5.34 5.23
73 8.12 6.98 7.85 6.86 7.14 6.50 6.23 5.94 5.37 5.28
74 8.46 7.26 8.14 7.12 7.32 6.69 6.31 6.04 5.40 5.32
75 8.82 7.57 8.45 7.40 7.50 6.89 6.38 6.14 5.42 5.35
- --------------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
30
<PAGE>
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Male and Second Annuitant is Female)
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
- --------------------------------------------------------------------------------
Adjusted Ages
- ---------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
- --------------------------------------------------------------------------------
55 50 $ 3.69 $ 4.05 $ 4.27 $ 3.69 $ 4.13
55 55 3.88 4.25 4.47 3.87 4.25
55 60 3.06 4.47 4.71 4.06 4.36
60 55 3.99 4.44 4.71 3.98 4.55
60 60 4.24 4.71 4.99 4.23 4.70
60 65 4.49 5.01 5.32 4.48 4.85
65 60 4.38 4.97 5.32 4.38 5.10
65 65 4.72 5.33 5.70 4.71 5.32
65 70 5.07 5.75 6.17 5.05 5.54
70 65 4.93 5.68 6.15 4.91 5.86
70 70 5.40 6.21 6.70 5.36 6.18
70 75 5.89 6.82 7.40 5.81 6.49
75 70 5.69 6.68 7.32 5.62 6.92
75 75 6.37 7.45 8.15 6.23 7.40
75 80 7.07 8.34 9.16 6.78 7.85
- --------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Male and
the Second Annuitant is Female.
Rates for ages not shown will be provided on
request and will be computed on a basis
consistent with the rates in the above
tables.
31
<PAGE>
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Female and Second Annuitant is Male)
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
- --------------------------------------------------------------------------------
Adjusted Ages
- ---------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
- --------------------------------------------------------------------------------
55 50 $ 3.75 $ 4.07 $ 4.26 $ 3.75 $ 3.98
55 55 3.88 4.25 4.47 3.87 4.06
55 60 3.99 4.44 4.71 3.98 4.12
60 55 4.06 4.47 4.71 4.06 4.37
60 60 4.24 4.71 4.99 4.23 4.47
60 65 4.38 4.97 5.32 4.38 4.54
65 60 4.49 5.01 5.32 4.48 4.89
65 65 4.72 5.33 5.70 4.71 5.02
65 70 4.93 5.68 6.15 4.91 5.14
70 65 5.07 5.75 6.17 5.05 5.60
70 70 5.40 6.21 6.70 5.36 5.79
70 75 5.69 6.68 7.32 5.62 5.96
75 70 5.89 6.83 7.40 5.81 6.63
75 75 6.37 7.45 8.15 6.23 6.92
75 80 6.78 8.11 8.99 6.54 7.15
- --------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Female and
the Second Annuitant is Male.
Rates for ages not shown will be provided on
request and will be computed on a basis
consistent with the rates in the above
tables.
32
<PAGE>
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
- --------------------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
- --------------------------------------------------------------------------------
5 3.50% 18.12 54.19 107.92 213.99
6 3.50% 15.35 45.92 91.44 181.32
7 3.50% 13.38 40.01 79.69 158.01
8 3.50% 11.90 35.59 70.88 140.56
9 3.50% 10.75 32.16 64.05 127.00
10 3.50% 9.83 29.42 58.59 116.18
11 3.50% 9.09 27.18 54.13 107.34
12 3.50% 8.46 25.32 50.42 99.98
13 3.50% 7.94 23.75 47.29 93.78
14 3.50% 7.49 22.40 44.62 88.47
15 3.50% 7.10 21.24 42.31 83.89
16 3.50% 6.76 20.23 40.29 79.89
17 3.50% 6.47 19.34 38.51 76.37
18 3.50% 6.20 18.55 36.94 73.25
19 3.50% 5.97 17.85 35.54 70.47
20 3.50% 5.75 17.22 34.28 67.98
21 3.50% 5.56 16.65 33.15 65.74
22 3.50% 5.39 16.13 32.13 63.70
23 3.50% 5.24 15.66 31.19 61.85
24 3.50% 5.09 15.24 30.34 60.17
25 3.50% 4.96 14.85 29.56 58.62
26 3.50% 4.84 14.49 28.85 57.20
27 3.50% 4.73 14.15 28.19 55.90
28 3.50% 4.63 13.85 27.58 54.69
29 3.50% 4.53 13.57 27.02 53.57
30 3.50% 4.45 13.30 26.49 52.53
- --------------------------------------------------------------------------------
33
<PAGE>
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
- --------------------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
- --------------------------------------------------------------------------------
5 5.00% 18.74 56.00 111.33 219.98
6 5.00% 15.99 47.77 94.96 187.64
7 5.00% 14.02 41.90 83.30 164.59
8 5.00% 12.56 37.52 74.58 147.35
9 5.00% 11.42 34.11 67.81 133.99
10 5.00% 10.51 31.40 62.42 123.34
11 5.00% 9.77 29.19 58.03 114.66
12 5.00% 9.16 27.36 54.38 107.45
13 5.00% 8.64 25.81 51.31 101.39
14 5.00% 8.20 24.50 48.69 96.21
15 5.00% 7.82 23.36 46.44 91.75
16 5.00% 7.49 22.37 44.47 87.88
17 5.00% 7.20 21.51 42.75 84.48
18 5.00% 6.94 20.74 41.23 81.47
19 5.00% 6.71 20.06 39.88 78.80
20 5.00% 6.51 19.46 38.68 76.42
21 5.00% 6.33 18.91 37.59 74.28
22 5.00% 6.17 18.42 36.62 72.35
23 5.00% 6.02 17.98 35.73 70.61
24 5.00% 5.88 17.57 34.93 69.02
25 5.00% 5.76 17.20 34.20 67.57
26 5.00% 5.65 16.87 33.53 66.25
27 5.00% 5.54 16.56 32.92 65.04
28 5.00% 5.45 16.28 32.35 63.93
29 5.00% 5.36 16.01 31.83 62.90
30 5.00% 5.28 15.77 31.35 61.95
- --------------------------------------------------------------------------------
34
<PAGE>
Option 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Months
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
Adjusted None 60 120 180 240
Age of ------------------------------------------------------------------------
Annuitant Male Female Male Female Male Female Male Female Male Female
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
50 $4.56 $4.20 $4.55 $4.19 $4.51 $4.18 $4.45 $4.15 $4.36 $4.11
51 4.64 4.26 4.62 4.25 4.58 4.24 4.51 4.21 4.42 4.16
52 4.72 4.32 4.70 4.32 4.66 4.30 4.58 4.26 4.48 4.21
53 4.80 4.39 4.79 4.38 4.74 4.36 4.65 4.32 4.53 4.27
54 4.89 4.46 4.87 4.46 4.82 4.43 4.73 4.39 4.59 4.32
55 4.99 4.54 4.97 4.53 4.91 4.50 4.80 4.46 4.65 4.38
56 5.09 4.62 5.07 4.61 5.00 4.58 4.88 4.53 4.72 4.44
57 5.20 4.71 5.17 4.70 5.10 4.66 4.96 4.60 4.78 4.50
58 5.32 4.80 5.29 4.79 5.20 4.75 5.05 4.68 4.84 4.57
59 5.44 4.90 5.41 4.88 5.31 4.84 5.14 4.76 4.91 4.63
60 5.57 5.00 5.53 4.99 5.42 4.93 5.23 4.84 4.97 4.70
61 5.71 5.11 5.67 5.09 5.54 5.03 5.32 4.93 5.03 4.77
62 5.86 5.23 5.81 5.21 5.66 5.14 5.42 5.02 5.09 4.84
63 6.02 5.36 5.97 5.33 5.79 5.25 5.51 5.11 5.16 4.91
64 6.20 5.49 6.13 5.46 5.93 5.37 5.61 5.21 5.21 4.98
65 6.38 5.64 6.31 5.60 6.07 5.49 5.71 5.31 5.27 5.05
66 6.58 5.79 6.49 5.75 6.22 5.63 5.81 5.41 5.32 5.12
67 6.79 5.95 6.69 5.91 6.38 5.76 5.91 5.52 5.38 5.18
68 7.02 6.13 6.89 6.08 6.53 5.91 6.01 5.63 5.42 5.25
69 7.26 6.32 7.11 6.26 6.70 6.06 6.11 5.74 5.47 5.31
70 7.52 6.53 7.35 6.45 6.86 6.23 6.20 5.58 5.51 5.37
71 7.80 6.75 7.59 6.66 7.03 6.39 6.29 5.96 5.54 5.42
72 8.09 6.99 7.85 6.89 7.21 6.57 6.38 6.07 5.57 5.47
73 8.41 7.26 8.12 7.13 7.38 6.75 6.46 6.17 5.60 5.51
74 8.75 7.54 8.41 7.39 7.55 6.94 6.53 6.28 5.63 5.55
75 9.12 7.85 8.71 7.66 7.73 7.13 6.61 6.38 5.65 5.59
- ------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
35
<PAGE>
Option 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Payments Guaranteed for a Stated Period of Months
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
Adjusted None 60 120 180 240
Age of ------------------------------------------------------------------------
Annuitant Male Female Male Female Male Female Male Female Male Female
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
50 $5.48 $5.12 $5.46 $5.11 $5.41 $5.09 $5.34 $5.06 $5.24 $5.01
51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.29 5.05
52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.34 5.10
53 5.71 5.30 5.69 5.29 5.62 5.26 5.53 5.22 5.40 5.15
54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.27 5.45 5.20
55 5.89 5.44 5.86 5.43 5.79 5.39 5.67 5.34 5.51 5.25
56 5.99 5.52 5.96 5.51 5.87 5.47 5.74 5.40 5.56 5.31
57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.62 5.37
58 6.21 5.69 6.17 5.67 6.06 5.62 5.90 5.54 5.68 5.42
59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.61 5.74 5.48
60 6.46 5.89 6.41 5.87 6.28 5.80 6.06 5.69 5.79 5.55
61 6.60 6.00 6.55 6.97 6.39 5.90 6.15 5.77 5.85 5.61
62 6.75 6.11 6.69 6.08 6.51 6.00 6.24 5.86 5.91 5.67
63 6.91 6.23 6.84 6.20 6.64 6.10 6.33 5.95 5.96 5.73
64 7.09 6.37 7.00 6.33 6.77 6.22 6.42 6.04 6.02 5.80
65 7.27 6.51 7.18 6.46 6.91 6.34 6.52 6.13 6.07 5.86
66 7.47 6.66 7.36 6.61 7.05 6.46 6.61 6.23 6.12 5.92
67 7.68 6.82 7.55 6.76 7.20 6.60 6.70 6.33 6.16 5.99
68 7.91 7.00 7.76 6.93 7.35 6.74 6.80 6.43 6.21 6.04
69 8.15 7.19 7.98 7.11 7.51 6.89 6.89 6.54 6.25 6.10
70 8.41 7.39 8.21 7.30 7.67 7.04 6.97 6.64 6.28 6.15
71 8.69 7.62 8.45 7.51 7.83 7.21 7.06 6.74 6.32 6.20
72 8.99 7.86 8.70 7.73 8.00 7.38 7.14 6.85 6.35 6.25
73 9.31 8.12 8.97 7.97 8.16 7.55 7.21 6.95 6.37 6.29
74 9.65 8.41 9.26 8.23 8.33 7.73 7.29 7.04 6.39 6.33
75 10.02 8.72 9.55 8.50 8.50 7.92 7.35 7.14 6.41 6.36
- ------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
36
<PAGE>
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Male and Second Annuitant is Female)
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
- --------------------------------------------------------------------------------
Adjusted Ages
- ---------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
- --------------------------------------------------------------------------------
55 50 $3.97 $4.35 $4.56 $3.97 $4.42
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.34 4.76 5.00 4.34 4.64
60 55 4.27 4.73 5.00 4.26 4.83
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.76 5.29 5.60 4.75 5.13
65 60 4.66 5.25 5.61 4.65 5.39
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.34 6.03 6.46 5.31 5.81
70 65 5.19 5.97 6.44 5.17 6.14
70 70 5.67 6.49 6.99 5.62 6.47
70 75 6.16 7.10 7.68 6.07 6.77
75 70 5.95 6.96 7.61 5.87 7.20
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.33 8.62 9.45 7.02 8.13
- --------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Male and
the Second Annuitant is Female.
Rates for ages not shown will be provided on
request and will be computed on a basis
consistent with the rates in the above
tables.
37
<PAGE>
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Female and Second Annuitant is Male)
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
- --------------------------------------------------------------------------------
Adjusted Ages
- ---------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
- --------------------------------------------------------------------------------
55 50 $4.03 $4.36 $4.55 $4.03 $4.41
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.27 4.73 5.00 4.26 4.83
60 55 4.34 4.76 5.00 4.34 4.64
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.66 5.25 5.61 4.65 5.39
65 60 4.76 5.29 5.60 4.75 5.13
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.19 5.97 6.44 5.17 6.14
70 65 5.34 6.03 6.46 5.31 5.81
70 70 5.67 6.49 6.99 5.62 6.47
70 75 5.95 6.96 7.61 5.87 7.20
75 70 6.16 7.10 7.68 6.07 6.77
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.04 8.39 9.29 6.79 8.70
- --------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Female and
the Second Annuitant is Male.
Rates for ages not shown will be provided on
request and will be computed on a basis
consistent with the rates in the above
tables.
38
<PAGE>
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Male and Second Annuitant is Female)
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
- --------------------------------------------------------------------------------
Adjusted Ages
- ---------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
- --------------------------------------------------------------------------------
55 50 $4.88 $5.26 $5.48 $4.88 $5.34
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.21 5.65 5.89 5.21 5.53
60 55 5.15 5.63 5.91 5.14 5.73
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.61 6.16 6.49 5.60 6.01
65 60 5.52 6.14 6.51 5.51 6.28
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.17 6.90 7.33 6.13 6.67
70 65 6.04 6.84 7.34 6.00 7.03
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.97 7.96 8.56 6.87 7.62
75 70 6.77 7.84 8.51 6.68 8.08
75 75 7.45 8.60 9.33 7.27 8.55
75 80 8.14 9.49 10.35 7.80 8.98
- --------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Male and
the Second Annuitant is Female.
Rates for ages not shown will be provided on
request and will be computed on a basis
consistent with the rates in the above
tables.
39
<PAGE>
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Female and Second Annuitant is Male)
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
- --------------------------------------------------------------------------------
Adjusted Ages
- ---------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
- --------------------------------------------------------------------------------
55 50 $4.93 $5.27 $5.46 $4.93 $5.19
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.15 5.63 5.91 5.14 5.73
60 55 5.21 5.65 5.89 5.21 5.53
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.52 6.14 6.51 5.51 6.28
65 60 5.61 6.16 6.49 5.60 6.01
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.04 6.84 7.34 6.00 7.03
70 65 6.17 6.90 7.33 6.13 6.67
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.77 7.84 8.51 6.68 8.08
75 70 6.97 7.96 8.56 6.87 7.62
75 75 7.45 8.60 9.33 7.27 8.55
75 80 7.86 9.28 10.20 7.57 9.59
- --------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Female and
the Second Annuitant is Male.
Rates for ages not shown will be provided on
request and will be computed on a basis
consistent with the rates in the above
tables.
40
<PAGE>
- --------------------------------------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
Hartford, Connecticut 06156
(800) 525-4225
Certificate of Group Annuity Coverage
- --------------------------------------------------------------------------------
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CERTIFICATE CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA
DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
G-CDA-97(NY)
------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
Hartford, Connecticut 06156
(800) 531-4547
Aetna Life Insurance and Annuity Company, herein
called Aetna, agrees to pay the benefits stated
in the Contract.
- --------------------------------------------------------------------------------
Certificate of Group Annuity To the Certificate Holder:
Coverage
Aetna certifies that coverage is in force for
you under the stated Group Annuity Contract and
Certificate numbers. All data shown here is
taken from Aetna records and is based upon
information furnished by you.
This Certificate is a summary of the Group
Annuity Contract provisions. It replaces any and
all prior certificates, riders, or amendments
issued to you under the stated Contract and
Certificate numbers. This Certificate is for
information only and is not a part of the
Contract.
THE VARIABLE FEATURES OF THE GROUP CONTRACT ARE
DESCRIBED IN PARTS III AND IV.
- --------------------------------------------------------------------------------
Right to Cancel You may cancel this Certificate within
10 days of receiving it by returning this
Certificate along with a written notice to Aetna
at the above address or to the agent from whom
it was purchased. Within 7 days after it
receives the notice of cancellation and this
Certificate at its Home Office, Aetna will
return the entire consideration paid.
/s/ Dan Kearney /s/ Kirk Wickman
President Secretary
- --------------------------------------------------------------------------------
Contract Holder Group Annuity Contract No.
SPECIMEN SPECIMEN
- --------------------------------------------------------------------------------
Certificate Holder Certificate No.
SPECIMEN
SPECIMEN SPECIMEN
- --------------------------------------------------------------------------------
Annuitant Name Type of Plan
SPECIMEN SPECIMEN
- --------------------------------------------------------------------------------
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CERTIFICATE CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA
DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
GMCC-97(NY)
<PAGE>
Specifications
- --------------------------------------------------------------------------------
Guaranteed There are guaranteed interest rates
Interest Rate for amounts held in the AG Account (See Contract
Schedule I).
- --------------------------------------------------------------------------------
Deductions from the There will be deductions for mortality and
Separate Account expense risks and administrative fees. (See
Contract Schedule I and II).
- --------------------------------------------------------------------------------
Deduction from Purchase The Purchase Payment is subject to a deduction
Payment for premium taxes, if any. (See 3.01.)
- --------------------------------------------------------------------------------
Surrender Fee There will be a charge deducted upon surrender.
(See Contract Schedule I).
2
<PAGE>
Contract Schedule I
Accumulation Period
Separate Account
- --------------------------------------------------------------------------------
Separate Account: Variable Annuity Account B
Charges to Separate A daily charge is deducted from any portion of
Account: the Current Value allocated to the Separate
Account. The deduction is the daily equivalent of
the annual effective percentage shown in the
following chart:
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
Total Separate Account -----
Charges 1.40%
ALIAC Guaranteed Account (AG Account)
- --------------------------------------------------------------------------------
Minimum Guaranteed
Interest Rate (effective
annual rate of return): 3.0%
Separate Account and AG Account
- --------------------------------------------------------------------------------
Minimum Initial Purchase
Payment: $5,000 ($1,500 for a qualified plan)
Maximum Initial Purchase $1,000,000
Payment Without Home
Office Approval:
Transfers: An unlimited number of Transfers may be made
during the Accumulation Period. Aetna allows 12
free Transfers in any calendar year. Thereafter,
Aetna reserves the right to charge $10 for each
subsequent Transfer.
Minimum Transfer Amount: $500
Maintenance Fee: The annual Maintenance Fee is $30. If the Current
Value is $50,000 or more on the date the
Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
3
<PAGE>
Separate Account and AG Account (Cont'd)
- --------------------------------------------------------------------------------
Surrender Fee: For each surrender, the Surrender Fee will be
determined as follows:
Surrender Fee
Length of Time from Deposit of Net (as percentage of
Purchase Payment (Years) Net Purchase Payment)
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
Systematic Withdrawal The specified payment or specified percentage
Option (SWO) Percentage: may not be greater than 10% of the Current Value
at time of election.
SWO Minimum Initial $20,000
Current Value:
SWO Minimum Payment Amount: $100
See 1. GENERAL DEFINITIONS for explanations.
4
<PAGE>
Contract Schedule II
Annuity Period
Separate Account
- --------------------------------------------------------------------------------
Charges to Separate Account: A daily charge at an annual effective rate of
1.25% for Annuity mortality and expense risks.
The administrative charge is established upon
election of an Annuity option. This charge will
not exceed 0.25%.
Variable Annuity Assumed If a Variable Annuity is chosen, an assumed
Annual Net Return Rate: annual net return rate of 5.0% may be elected.
If 5.0% is not elected, Aetna will use an assumed
annual net return rate of 3.5%.
The assumed annual net return rate factor for
3.5% per year is 0.9999058.
The assumed annual net return rate factor for
5.0% per year is 0.9998663.
If the portion of a Variable Annuity payment for
any Fund is not to decrease, the Annuity return
factor under the Separate Account for that Fund
must be:
(a) 4.75% on an annual basis plus an annual
return of up to 0.25% to offset the
administrative charge set at the time Annuity
payments commence if an assumed annual net
return rate of 3.5% is chosen; or
(b) 6.25% on an annual basis plus an annual
return of up to 0.25% to offset the
administrative charge set at the time Annuity
payments commence, if an assumed annual net
return rate of 5% is chosen.
Fixed Annuity
- --------------------------------------------------------------------------------
Minimum Guaranteed 3.0%
Interest Rate (effective
annual rate of return):
See 1. GENERAL DEFINITIONS for explanations.
5
<PAGE>
TABLE OF CONTENTS
Page
I. GENERAL DEFINITIONS
- -------------------------------------------------------------------------------
1.01 Account...............................................................8
1.02 Accumulation Period...................................................8
1.03 Adjusted Current Value................................................8
1.04 ALIAC Guaranteed Account (AG Account).................................8
1.05 Annuitant.............................................................8
1.06 Annuity...............................................................8
1.07 Beneficiary...........................................................8
1.08 Certificate Holder....................................................8
1.09 Code..................................................................8
1.10 Contract..............................................................8
1.11 Contract Holder.......................................................9
1.12 Current Value.........................................................9
1.13 Deposit Period........................................................9
1.14 Fixed Annuity.........................................................9
1.15 Fund(s)...............................................................9
1.16 General Account.......................................................9
1.17 Guaranteed Rate -- AG Account.........................................9
1.18 Guaranteed Term.......................................................9
1.19 Guaranteed Term(s) Groups.............................................9
1.20 Maintenance Fee......................................................10
1.21 Market Value Adjustment (MVA)........................................10
1.22 Matured Term Value...................................................10
1.23 Matured Term Value Transfer..........................................10
1.24 Maturity Date........................................................10
1.25 Net Purchase Payment(s)..............................................10
1.26 Nonunitized Separate Account.........................................10
1.27 Purchase Payment(s)..................................................10
1.28 Rebalancing Program..................................................10
1.29 Reinvestment.........................................................11
1.30 Separate Account.....................................................11
1.31 Surrender Value......................................................11
1.32 Transfers............................................................11
1.33 Valuation Period (Period)............................................11
1.34 Variable Annuity.....................................................11
II. GENERAL PROVISIONS
- -------------------------------------------------------------------------------
2.01 Change of Contract...................................................11
2.02 Change of Fund(s)....................................................12
2.03 Nonparticipating Contract............................................12
2.04 Payments and Elections...............................................13
2.05 State Laws...........................................................13
2.06 Control of Contract..................................................13
2.07 Designation of Beneficiary...........................................13
2.08 Misstatements and Adjustments........................................14
6
<PAGE>
Page
2.09 Incontestability.....................................................14
2.10 Grace Period.........................................................14
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
- -------------------------------------------------------------------------------
3.01 Net Purchase Payment.................................................14
3.02 Certificate Holder's Account.........................................15
3.03 Fund(s) Record Units Separate Account................................15
3.04 Net Return Factor(s) - Separate Account..............................15
3.05 Fund Record Unit Value - Separate Account............................16
3.06 Market Value Adjustment..............................................16
3.07 Transfer of Current Value from the Funds or ALIAC Guaranteed Account
3.08 Notice to the Contract Holder........................................18
3.09 Loans................................................................18
3.10 Systematic Withdrawal Option (SWO)...................................18
3.11 Death Benefit Amount.................................................20
3.12 Death Benefit Options available to Beneficiary.......................21
3.13 Liquidation of Surrender Value.......................................23
3.14 Surrender Fee........................................................23
3.15 Payment of Surrender Value...........................................24
IV. ANNUITY PROVISIONS
- -------------------------------------------------------------------------------
4.01 Choices to be Made...................................................24
4.02 Terms of Annuity Options.............................................24
4.03 Death of Annuitant/Beneficiary.......................................26
4.04 Fund(s) Annuity Units - Separate Account.............................27
4.05 Fund(s) Annuity Unit Value - Separate Account........................27
4.06 Annuity Net Return Factor(s) - Separate Account......................27
4.07 Annuity Options......................................................28
7
<PAGE>
I. GENERAL DEFINITIONS
- --------------------------------------------------------------------------------
1.01 Account A record established for each Certificate Holder
to maintain the value of the Net Purchase
Payment held on his/her behalf during the
Accumulation Period.
1.02 Accumulation Period: The period during which the Net Purchase
Payment(s) are applied to an Account to provide
future Annuity payment(s).
1.03 Adjusted Current Value: The Current Value of an Account plus or minus
any aggregate ALIAC Guaranteed Account MVA, if
applicable. (See 1.21)
1.04 ALIAC Guaranteed An accumulation option where Aetna guarantees
Account (AG Account): stipulated rate(s) of interest for specified
periods of time. All assets of Aetna, including
amounts in the Nonunitized Separate Account, are
available to meet the guarantees under the AG
Account.
1.05 Annuitant: The person whose life is measured for purposes
of the Guaranteed Death Benefit and the duration
of Annuity payments under the Contract.
1.06 Annuity Payment of an income:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.07 Beneficiary: The individual or estate entitled to receive any
payment from the Contract upon the death of the
Annuitant, or if the Certificate Holder is
different from the Annuitant, upon the death of
the Certificate Holder. If the Account is held
by joint Certificate Holders, the survivor will
be deemed the designated Beneficiary and any
other Beneficiary on record will be treated as
the contingent Beneficiary.
1.08 Certificate Holder: A person who purchases an interest in the
Contract as evidenced by a certificate. Aetna
reserves the right to limit ownership to natural
persons. If more than one Certificate Holder
owns an account, each Certificate Holder will be
a joint Certificate Holder. Unless we allow
otherwise in response to a written request prior
to Contract issue, any joint Certificate Holder
must be the spouse of the other joint
Certificate Holder. Joint Certificate Holders
have joint ownership rights and both must
authorize exercising any ownership rights unless
Aetna allows otherwise. If the account is owned
by a nonnatural person, the death benefit will
be paid at the death of the Annuitant.
1.09 Code: The Internal Revenue Code of 1986, as it may be
amended from time to time.
1.10 Contract: This agreement between Aetna and the Contract
Holder.
8
<PAGE>
1.11 Contract Holder: The entity to which a group Contract is issued.
1.12 Current Value: As of the most recent Valuation Period, the Net
Purchase Payment and any additional amount
deposited pursuant to 3.11 plus any interest
added to the portion allocated to the ALIAC
Guaranteed Account; and plus or minus the
investment experience of the portion allocated
to the Funds since deposit; less all Maintenance
Fees deducted, any amounts surrendered and any
amounts applied to an Annuity.
1.13 Deposit Period: A calendar week, a calendar month, a calendar
quarter, or any other period of time specified
by Aetna during which Net Purchase Payment(s),
Transfers and Reinvestments are accepted into
the ALIAC Guaranteed Account for one or more
Guaranteed Terms. Aetna reserves the right to
extend the Deposit Period.
1.14 Fixed Annuity: An Annuity with payments that do not vary in
amount.
1.15 Fund(s): The open-end management investment companies
(mutual funds) in which the Separate Account
invests.
1.16 General Account: The Account holding the assets of Aetna, other
than those assets held in Aetna's separate
accounts.
1.17 Guaranteed Rate -- Aetna will declare the interest rate applicable
AG Account: to a specific Guaranteed Term at the start of
the Deposit Period for that Guaranteed Term. The
rate is guaranteed by Aetna for that Deposit
Period and the ensuing Guaranteed Term. The
Guaranteed Rate is an annual effective yield.
That is, interest is credited daily at a rate
that will produce the Guaranteed Rate over the
period of a year. No Guaranteed Rate will ever
be less than the Minimum Guaranteed Rate shown
on Contract Schedule I.
1.18 Guaranteed Term: The period of time for which AG Account
Guaranteed Rate is guaranteed on Net Purchase
Payments, Transfers and Reinvestments made into
a current Deposit Period for the AG Account.
Such period begins on the day following the
close of the Deposit Period and ends on the
designated Maturity Date. Guaranteed Terms are
offered at Aetna's discretion for various
lengths of time ranging up to and including ten
years.
During a Deposit Period, Aetna may make
available any number of Guaranteed Terms. The
Contract Holder may allocate Net Purchase
Payments and Transfers into any or all of the
available Guaranteed Terms.
1.19 Guaranteed Term(s) Groups: All AG Account Guaranteed Term(s) with the same
length of time from the close of the Deposit
Period until the designated Maturity Date.
9
<PAGE>
1.20 Maintenance Fee: The Maintenance Fee (see Contract Schedule I)
will be deducted during the Accumulation Period
from the Current Value on each anniversary of
the date the Account is established and upon
surrender of the entire Account.
1.21 Market Value An adjustment that may apply to an amount
Adjustment (MVA): withdrawn or transferred from an AG Account
Guaranteed Term prior to the end of that
Guaranteed Term. The adjustment reflects the
change in the value of the investment due to
changes in interest rates since the date of
deposit and is computed using the formula given
in 3.06. The adjustment is expressed as a
percentage of each dollar being withdrawn or
transferred.
1.22 Matured Term Value: The amount payable on an AG Account Guaranteed
Term's Maturity Date.
1.23 Matured Term Value During the calendar month following an AG
Transfer: Account Maturity Date, the Certificate Holder
may notify Aetna's Home Office in writing to
Transfer or surrender all or part of the Matured
Term Value, plus interest at the new Guaranteed
Rate accrued thereon, from the AG Account
without an MVA. This provision only applies to
the first such written request received from the
Certificate Holder during this period for any
Matured Term Value.
1.24 Maturity Date: The last day of an AG Account Guaranteed Term.
1.25 Net Purchase Payment(s): The Purchase Payment less premium taxes, if
applicable.
1.26 Nonunitized Separate A separate account subject to the laws of New
Account: York set up by Aetna under Title 38, Section
38a-433, of the Connecticut General Statutes,
that holds assets for AG Account Terms. There
are no discrete units for this Account. The
Certificate Holder does not participate in the
investment gain or loss from the assets held in
the Nonunitized Separate Account. Such gain or
loss is borne entirely by Aetna. These assets
may be chargeable with liabilities arising out
of any other business of Aetna.
1.27 Purchase Payment(s): Payment(s) accepted by Aetna at its Home Office.
Aetna reserves the right to refuse to accept any
Purchase Payment at any time for any reason. No
advance notice will be given to the Certificate
Holder.
1.28 Rebalancing Program: A program that allows Contract Holders to have
portions of their Current Value automatically
reallocated annually to a specified percentage.
Only the portion of the Current Value held in
the separate account can be rebalanced. Contract
Holders may participate in this program by
completing the Rebalancing Section of the
enrollment form, or by requesting the service in
writing from the Company's Home Office.
Reallocations under the Reblancing Program will
not be counted for purposes of any transfer
limitations imposed under the contract.
10
<PAGE>
1.29 Reinvestment: Aetna will mail a notice to the Certificate
Holder at least 18 calendar days and not more
than 45 days before a Guaranteed Term's Maturity
Date.
This notice will contain the Terms available
during current Deposit Periods with their
Guaranteed Rate, and projected Matured Term
Value. If no specific direction is given by the
Certificate Holder prior to the Maturity Date,
each Matured Term Value will be reinvested in
the current Deposit Period for a Guaranteed Term
of the same duration. If a Guaranteed Term of
the same duration is unavailable, each Matured
Term Value will automatically be reinvested in
the current Deposit Period for the next shortest
Guaranteed Term available. If no shorter
Guaranteed Term is available, the next longer
Guaranteed Term will be used. Aetna will mail a
confirmation statement to the Certificate Holder
the next business day after the Maturity Date.
This notice will state the Guaranteed Term and
Guaranteed Rate which will apply to the
reinvested Matured Term Value.
1.30 Separate Account: A separate account that buys and holds shares of
the Fund(s). Income, gains or losses, realized
or unrealized, are credited or charged to the
Separate Account without regard to other income,
gains or losses of Aetna. Aetna owns the assets
held in the Separate Account and is not a
trustee as to such amounts. This Separate
Account generally is not guaranteed and is held
at market value. The assets of the Separate
Account, to the extent of reserves and other
contract liabilities of the Account, shall not
be charged with other Aetna liabilities.
1.31 Surrender Value: The amount payable by Aetna upon the surrender
of any portion of an account.
1.32 Transfers: The movement of invested amounts among the
available Fund(s) and the AG Account under the
Contract during the Accumulation Period.
1.33 Valuation Period The period of time for which a Fund determines
(Period): its net asset value, usually from 4:15 p.m.
Eastern time each day the New York Stock
Exchange is open until 4:15 p.m. the next such
day, or such other day that one or more of the
Funds determines its net asset value.
1.34 Variable Annuity: An Annuity with payments that vary with the net
investment results of one or more Funds held
under the Separate Account.
II. GENERAL PROVISIONS
- --------------------------------------------------------------------------------
2.01 Change of Contract: Only an authorized officer of Aetna may change
the terms of the contract. Aetna will notify the
Contract Holder in writing at least 30 days
before the effective date of any change. Any
change will not affect the amount or terms of
any Annuity which begins before the change.
11
<PAGE>
Aetna may make any change that affects the AG
Account Market Value Adjustment (3.06) with at
least 30 days' advance written notice to the
Contract Holder and the Certificate Holder. Any
such change shall become effective for any new
Term and will be applicable only if it is more
favorable to the Contract Holder and/or the
Certificate Holder.
Any change that affects any of the following
under the Contract will not apply to Accounts in
existence before the effective date of the
change:
(a) Net Purchase Payment (3.01)
(b) AG Account Guaranteed Rate (1.04)
(c) Net Return Factor(s) -- Separate Account
(3.04)
(d) Current Value (1.12)
(e) Surrender Value (1.31)
(f) Fund(s) Annuity Unit Value -- Separate
Account (4.05)
(g) Annuity Options (4.07)
(h) Fixed Annuity Guaranteed Interest Rates
(4.01)
(i) Transfers (1.32).
This Contract may be changed as deemed necessary
by Aetna to comply with federal or state law.
Any such change is subject to the prior approval
of the New York Insurance Department.
2.02 Change of Fund(s): The assets of the Separate Account are
segregated by Fund. If the shares of any Fund
are no longer available for investment by the
Separate Account or if in our judgment, further
investment in such shares should become
inappropriate in view of the purpose of the
Contract, Aetna may cease to make such Fund
shares available for investment under the
Contract prospectively, or Aetna may substitute
shares of another Fund for shares already
acquired. Aetna may also, from time to time, add
additional Funds. Aetna reserves the right to
substitute shares of another Fund for shares
already acquired without a proxy vote.
2.02 Change of Fund(s) Any elimination, substitution or addition of
(Cont'd): Funds will be done in accordance with federal
securities laws and are subject to the approval
of the Superintendent of the New York Insurance
Department and Aetna will notify the Contract
Holder of such change.
2.03 Nonparticipating The Contract Holder, Certificate Holder's or
Contract: Beneficiaries will not have a right to share in
the earnings of Aetna.
12
<PAGE>
2.04 Payments and Elections: While the Certificate Holder is living, Aetna
will pay the Certificate Holder any Annuity
payments as and when due. After the Certificate
Holder's death, or at the death of the first
Certificate Holder if the Account is owned
jointly, any Annuity payments required to be
made will be paid in accordance with 4.03. Aetna
will determine other payments and/or elections
as of the end of the Valuation Period in which
the request is received at its Home Office. Such
payments will be made within 7 calendar days of
receipt at its Home Office of a written claim
for payment which is in good order, except as
provided in 3.15.
2.05 State Laws: The Contract and the Certificate's comply with
the laws of the state in which they are
delivered. Any surrender, death, or Annuity
payments are equal to or greater than the
minimum required by such laws. Annuity tables
for legal reserve valuation shall be as required
by state law. Such tables may be different from
Annuity tables used to determine Annuity
payments.
2.06 Control of Contract: The Contract is between the Contract Holder and
Aetna. The Contract Holder has title to the
Contract. Nothing in the group annuity contract
invalidates or impairs any right granted to the
Certificate Holder. The Certificate Holder has
all other rights to amounts held in his or her
Account.
Each Certificate Holder shall own all amounts
held in his or her Account. Each Certificate
Holder may make any choices allowed by this
Contract for his or her Account. Certificate
Holder choices made under the contract must be
in writing. If the Account is owned jointly,
both joint Certificate Holders must authorize
any Certificate Holder change in writing. Until
receipt of such choices at Aetna's Home Office,
Aetna may rely on any previous choices made.
The Account may not be attached, alienated, or
subject to the claims of creditors of the
Contract Holder or the Certificate Holder except
to the extent permitted by law.
2.06 Control of Contract The Certificate Holder may assign or transfer
(Cont'd): his or her rights under the Contract. Aetna
reserves the right not to accept assignment or
transfer to a nonnatural person. Any assignment
or transfer made must be submitted to Aetna's
Home Office in writing and will not be effective
until accepted by Aetna.
2.07 Designation of Each Certificate Holder shall name his or her
Beneficiary: Beneficiary. If the Account is owned jointly,
both joint Certificate Holders must agree in
writing to the Beneficiary designated. The
Beneficiary may be changed at any time. Changes
to a Beneficiary must be submitted to Aetna's
Home Office in writing and will not be effective
until accepted by Aetna.
13
<PAGE>
2.08 Misstatements and If Aetna finds the age or sex of any Annuitant
Adjustments: to be misstated, the amount payable under the
Contract shall be adjusted for the correct age
or sex; the amount of any underpayment or
overpayment, with interest at six per cent per
year, shall be credited to, or charged against,
the current or next succeeding payment or
payments to be made by Aetna under the Contract.
2.09 Incontestability: Aetna cannot cancel the Contract because of any
error of fact on the application. Aetna cannot
cancel an Account because of any error of fact
on the enrollment form.
2.10 Grace Period: This Contract will remain in effect even if
Purchase Payments are not continued.
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
- --------------------------------------------------------------------------------
3.01 Net Purchase Payment: This amount is the actual Purchase Payment less
any premium tax. Aetna will generally deduct the
premium tax when Annuity benefits are elected
(see Part IV). If Aetna determines that under
applicable state law, it must pay a premium tax
when the Purchase Payment is received or at any
other time, it will deduct the tax at that time.
The Net Purchase Payment will be credited among:
(a) The current Deposit Period(s) for Guaranteed
Terms under the AG Account; and
(b) The Fund(s) in which the Separate Account
invests.
3.01 Net Purchase Payment For each Net Purchase Payment, the Certificate
(Cont'd): Holder shall tell Aetna the allocation
percentage to be applied to the current Deposit
Period for each of the available Guaranteed
Terms in the AG Account and/or each Fund. If
allocation instructions are not received along
with any subsequent Net Purchase Payment, the
allocation will be the same as that indicated on
the original application. If the same Guaranteed
Term is no longer available, the Net Purchase
Payment will be allocated to the next shortest
Guaranteed Term available in the current Deposit
Period. If no shorter Guaranteed Term is
available, the next longer Guaranteed Term will
be used.
The minimum acceptable additional Purchase
Payment is shown on Contract Schedule I. The
maximum acceptable Purchase Payment without Home
Office approval is also provided on Contract
Schedule I.
3.02 Certificate Holder's Aetna will maintain an Account for each
Account: Certificate Holder.
14
<PAGE>
3.03 Fund(s) Record Units -- The portion of the Net Purchase Payment(s)
Separate Account: applied to each Fund under the Separate Account
will determine the number of Fund record units
for that Fund. This number is equal to the
portion of the Net Purchase Payment(s) applied
to each Fund divided by the Fund record unit
value (see 3.05) for the Valuation Period in
which the Purchase Payment is received in good
order at Aetna's Home Office.
3.04 Net Return Factor(s) -- The net return factor are used to compute all
Separate Account: Separate Account record units for any Fund.
The net return factor(s) for each Fund is equal
to 1.0000000 plus the net return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by
the Separate Account at the end of the
Valuation Period; minus
(b) The value of the shares of the Fund held by
the Separate Account at the start of the
Valuation Period; plus or minus
(c) Taxes (or reserves for taxes) on the
Separate Account (if any); divided by
(d) The total value of the Fund record units and
Fund Annuity units of the Separate Account
at the start of the Valuation Period; minus
(e) A daily Separate Account charge at an annual
rate as shown on Contract Schedule I for
mortality and expense risks, which may
include profit; and a daily administrative
charge.
3.04 Net Return Factor(s) -- A net return rate may be more or less than 0%.
Separate Account The value of a share of the Fund is equal to
(Cont'd): the net assets of the Fund divided by the number
of shares outstanding.
3.05 Fund Record Unit Value -- A Fund record unit value is computed by
Separate Account: multiplying the net return factors for the
current Valuation Period by the Fund record unit
value for the previous Period. The dollar value
of a Fund record units, Separate Account assets,
and Variable Annuity payments may go up or down
due to investment gain or loss.
3.06 Market Value Adjustment: Excepted as noted below, there will be an MVA
for a withdrawal from the AG Account before the
end of a Guaranteed Term when the withdrawal is
due to:
(a) a Transfer; except as specified in 1.24, AG
Account Matured Term Value Transfer;
(b) A full or partial surrender (including a 15%
free withdrawal under 3.14), except for a
partial withdrawal under the Systematic
Withdrawal Option (see 3.10); or
(c) An election of Annuity option 1 (see 4.07).
15
<PAGE>
Full and partial surrenders and Transfers made
within six months after the date of the
Annuitant's death will be the greater of:
(a) The aggregate MVA amount which is the sum of
all market value adjusted amounts calculated
due to a withdrawal of amounts. This total
may be greater or less than the Current
Value of those amounts; or
(b) The applicable portion of the Current Value
in the AG Account. After the six-month
period, the surrender or Transfer will be
the aggregate MVA amount, which may be
greater or less than the Current Value of
those amounts.
The greater of the aggregate MVA amount or the
applicable portion of the Current Value applies
to amounts withdrawn from the AG Account on
account of an election of Annuity options 2 or 3
(see 4.07).
Market value adjusted amounts will be equal to
the amount withdrawn multiplied by the following
ratio:
x
---
365
(1 + i)
-------
x
---
365
(1 + j)
3.06 Market Value Where:
Adjustment (Cont'd):
i is the Deposit Period Yield
j is the Current Yield
x is the number of days remaining, (computed
from Wednesday of the week of withdrawal) in
the Guaranteed Term.
The Deposit Period Yield will be determined as
follows:
(a) At the close of the last business day of
each week of the Deposit Period, a yield
will be computed as the average of the
yields on that day of U.S. Treasury Notes
which mature in the last three months of the
Guaranteed Term.
(b) The Deposit Period Yield is the average of
those yields for the Deposit Period. If
withdrawal is made before the close of the
Deposit Period, it is the average of those
yields on each week preceding withdrawal.
The Current Yield is the average of the yields
on the last business day of the week preceding
withdrawals on the same U.S. Treasury Notes
included in the Deposit Period Yield.
16
<PAGE>
In the event that no U.S. Treasury Notes which
mature in the last three months of the
Guaranteed Term exist, Aetna reserves the right
to use the U.S. Treasury Notes that mature in
the following quarter. If U.S. Treasury Notes
are no longer available, a suitable replacement
index, subject to approval of the Superintendent
of the New York Insurance Department, would then
be utilized.
A detailed description of the MVA has been filed
with the Superintendent of the New York
Insurance Department.
3.07 Transfer of Current Before an Annuity option is elected, all or any
Value from the Funds portion of the Adjusted Current Value may be
or AG Guaranteed transferred from any Fund or Guaranteed Term of
Account (Cont'd): the AG Account:
(a) To any other Fund; or
(b) To any Guaranteed Term of the AG Account
available in the current Deposit Period.
Transfer requests can be submitted as a
percentage or as a dollar amount. The minimum
transfer amount is shown on Contract Schedule I.
Within a Guaranteed Term Group, the amount to be
surrendered or transferred will be withdrawn
first from the oldest Deposit Period, then from
the next oldest, and so on until the amount
requested is satisfied.
3.07 Transfer of Current The Certificate Holder may make an unlimited
Value from the Funds number of Transfers during the Accumulation
or AG Guaranteed Period. The number of free Transfers allowed by
Account Aetna is shown on Contract Schedule I.
Additional Transfers may be subject to a
Transfer fee as shown on Contract Schedule I.
Amounts transferred as a Matured Term Value on
or within one calendar month of the Term's
Maturity Date do not count against the annual
Transfer limit.
Amounts applied to Guaranteed Terms of the AG
Account may not be transferred to the Funds or
to another Guaranteed Term during the Deposit
Period or for 90 days after the close of the
Deposit Period except for a Matured Term
Value(s) during the calendar month following the
Term's Maturity Date.
Transfers from Guaranteed Terms of the AG
Account are subject to the MVA provisions of
3.06.
17
<PAGE>
3.08 Notice to the The Certificate Holder will receive quarterly
Contract Holder: statements from Aetna of:
(a) The value of any amounts held in:
(1)The AG Account; and
(2)The Fund(s) under the Separate Account
(b) The number of any Fund(s) record units; and
(c) The Fund(s) record unit value.
Such number or values will be as of a specific
date no more than 60 days before the date of the
notice.
3.09 Loans: Loans are not available under this Contract.
3.10 Systematic Withdrawal The following distribution options may be
Option (SWO): elected by the Certificate Holder or a
Beneficiary during the Accumulation Period. A
distribution option under which a portion of the
Accounts' Current Value will automatically be
surrendered and distributed each year. SWO
payments will be calculated on the Accounts'
full Current Value. The distributed amount is
withdrawn pro-rata from each investment option
used under the Account. A Surrender Fee will not
be deducted from any portion of the Current
Value which is paid as a distribution under SWO.
Certificate Holders should consult their tax
advisers prior to requesting this distribution
option. Aetna will not be responsible for any
adverse tax consequences due to receiving SWO
payments.
(a) Amount of Distribution: The Certificate
Holder or a Beneficiary may elect one of the
three payment methods described below.
3.10 Systematic Withdrawal (1) Specified Payment: Payments of a designated
Option (SWO) (Cont'd): dollar amount. The annual amount may not be
greater than the percentage of the Account's
Current Value on the date of the SWO
election as shown on Contract Schedule I.
This annual dollar amount will remain
constant. The minimum SWO payment amount is
shown on Contract Schedule I. If SWO
payments are made more frequently than
annually, the designated annual amount is
divided by the number of payments due each
year; or
(2) Specified Period: Payments made over a
designated period of time of at least 10
years. The annual amount is calculated by
dividing the Current Value as of December 31
of the year prior to the payment year by the
number of payment years remaining; or
18
<PAGE>
(3) Specified Percentage: Payments of a
designated percentage which cannot be
greater than the percentage of the Current
Value at the time of election as shown on
Contract Schedule I. The percentage may be
changed by written request. Aetna reserves
the right to limit the number of times the
percentage may be changed. The annual amount
is calculated by multiplying the Current
Value as of December 31 of the year prior to
the payment year by the designated
percentage.
Payments upon the Contract Holder's death
will continue to the Beneficiary in the
manner described in 3.11.
(b) Minimum Initial Current Value: The Minimum
Initial Current Value required to begin SWO
is shown on Contract Schedule I. If after
election of this option, the Current Value
is insufficient to make a scheduled SWO
payment, Aetna will distribute the entire
balance.
(c) Date of Distribution: The Contract Holder or
a Beneficiary shall specify the first
payment date. The earliest allowable first
payment date is the date on which the
Contract Holder attains age 59 1/2. The
latest allowable SWO payment date is the
month of the Annuitant's 90th birthday. As
elected by the Contract Holder, SWO payments
will be made on a monthly, quarterly,
semi-annual or annual basis. If SWO payments
are made more frequently than annually, the
designated annual amount is divided by the
number of payments due each year. Subsequent
payments will be made on the 15th of the
appropriate months or on such other date as
Aetna may designate or allow.
3.10 Systematic Withdrawal (d) Election and Revocation: SWO may be elected
Option (SWO) (Cont'd): by the Certificate Holder or Beneficiary if
elected after the Certificate Holders death
by submitting a completed and signed
election form to Aetna's Home Office. Once
elected, this option may be revoked by the
Certificate Holder or Beneficiary, if
elected after the Certificate Holder's
death, by submitting a written request to
Aetna at its Home Office. Any revocation
will apply only to amounts not yet paid. SWO
may be elected only once by the Certificate
Holder or by the Beneficiary.
3.11 Death Benefit Amount: If the Certificate Holder or Annuitant dies
before Annuity payments start, the Beneficiary
is entitled to a death benefit under the
Account. If the Account is owned jointly, the
death benefit is paid at the death of the first
joint Certificate Holder to die. The claim date
is the date when proof of death and the
Beneficiary's claim are received in good order
at Aetna's Home Office. The amount of the death
benefit is determined as follows:
(a) Death of Annuitant less than 85 years of
age: The guaranteed death benefit is the
greatest of:
19
<PAGE>
(1) The sum of all Net Purchase Payment(s)
made to the Account (as of the date of
death) minus the sum of all amounts
surrendered, applied to an Annuity, or
deducted from the Account;
(2) The highest step-up value as of the date
of death. A step-up value is determined
on each anniversary of the Effective
Date. Each step up value is calculated
as the Account's Current Value on the
Effective Date anniversary, increased by
the amount of any Purchase Payment(s)
made, and decreased by the sum of all
amounts surrendered, deducted, and/or
applied to an Annuity option since the
Effective Date anniversary.
(3) The Account's Current Value as of the
date of death.
The excess, if any, of the guaranteed death
benefit value over the Account's Current
Value is determined as of the date of death.
Any excess amount will be deposited to the
Account and allocated to Aetna Variable
Encore Fund as of the claim date. The
Current Value on the claim date plus any
excess amount deposited becomes the
Account's Current Value.
(b) Death of Annuitant age 85 or greater: The
death benefit amount is the greatest of:
3.11 Death Benefit Amount (1) The sum of all Net Purchase Payment(s)
(Cont'd): made to the Account (as of the date of
death) minus the sum of all amounts
surrendered, applied to an Annuity, or
deducted from the Account;
(2) The highest step-up value prior to the
Certificate Holder's 85th birthday. A
step-up value is determined on each
anniversary of the Effective Date. Each
step-up value is calculated as the
Account's Current Value on the Effective
Date anniversary, increased by the
amount of any Purchase Payment(s) made,
and decreased by the sum of all amounts
surrendered, deducted, and/or applied to
an Annuity option since the Effective
Date anniversary.
(3) The Account's Current Value as of the
date of death.
The excess, if any of the guaranteed death
benefit value over the Account's Current
Value is determined as of the date of death.
Any excess amount will be deposited to the
Account and allocated to Aetna Variable
Encore Fund as of the claim date. The
Current Value on the claim date plus any
excess amount deposited becomes the
Account's Current Value.
20
<PAGE>
(c) Death of the Certificate Holder if the
Certificate Holder is not the Annuitant: The
death benefit amount is the Account's
Adjusted Current Value on the Claim Date. A
Surrender Fee may apply to any full or
partial surrender (see 3.14 and Contract
Schedule I).
(d) At the death of a surviving spouse
Beneficiary who continued the Account in his
or her own name, the death benefit amount is
equal to the Account's Current Value less
any applicable Surrender Fee on the amount
of any Purchase Payment(s) made since the
death of the Certificate Holder.
3.12 Death Benefit Options Prior to any election, or until amounts must be
available to Beneficiary: otherwise distributed under this section, the
Current Value of the Account will be retained in
the Account. The Beneficiary has the right under
the Contract to allocate or reallocate any
amount to any of the available investment
options (subject to an MVA, as applicable). The
following options are available to the
Beneficiary:
(a) When the Certificate Holder is the
Annuitant: If the Certificate
Holder/Annuitant dies, and:
3.12 Death Benefit Options (1) If the Beneficiary is the Certificate
available to Beneficiary Holder's surviving spouse, the
(Cont'd): Beneficiary may exercise all rights
under the Contract and continue in the
Accumulation Period, or may elect (i),
or (ii) below. Under the Code,
distributions from the Account are not
required until the Spousal Beneficiary's
death. The Spousal Beneficiary may elect
to:
(i) Apply some or all of the Adjusted
Current Value of the Account to
Annuity option (see 4.07);
(ii) Receive, at any time, a lump sum
payment equal to the Adjusted
Current Value of the Account.
(2) If the Beneficiary is other than the
Certificate's Holder's surviving spouse,
then options (i) or (ii), under (1)
above only apply. Any portion of the
Adjusted Current Value of the Account
not applied to an Annuity option within
one year of the Certificate Holder's
death, must be distributed within five
years of the date of death.
(3) If no Beneficiary exists, a lump sum
payment equal to the Adjusted Current
Value will be made to the Certificate
Holder's estate.
(b) When the Certificate Holder is not the
Annuitant and the Certificate Holder dies,
and:
21
<PAGE>
(1) If the Beneficiary is the Certificate
Holder's surviving spouse, the
Beneficiary may exercise all rights
under the Contract and continue in the
Accumulation Period, or may elect (i),
or (ii) below. Under the Code,
distributions from the Account are not
required until the spousal Beneficiary's
death. The spousal Beneficiary may elect
to:
(i) Apply some or all of the Adjusted
Current Value of the Account to an
Annuity option (see 4.07);
(ii) Receive, at any time, a lump sum
payment equal to the Surrender
Value.
(2) If the Beneficiary is other than the
Certificate Holder's surviving spouse,
then options (i) or (ii) under (1) above
apply. Any portion of the Adjusted
Current Value not applied to Annuity
option within one year of the
Certificate Holder's death, must be
distributed within five years of the
date of death.
3.12 Death Benefit Options (3) If no Beneficiary exists, a lump sum
available to Beneficiary payment equal to the Surrender Value
(Cont'd): will be made to the Certificate Holder's
estate.
(c) When the Certificate Holder is not the
Annuitant and the Annuitant dies: The
Beneficiary must elect an Annuity option
within 60 days of the date of death or the
gain, if any, will be includible in the
Beneficiary's income in the tax year in
which the Annuitant dies.
3.13 Liquidation of Surrender All or any portion of the Account's Current
Value: Value may be surrendered at any time as
requested by the Certificate Holder. Surrender
requests can be submitted as a percentage of the
Account's Adjusted Current Value or as a
specific dollar amount. Net Purchase Payment
amounts are withdrawn first, and then the excess
value, if any. For any partial surrender,
amounts are withdrawn on a pro rata basis from
the Fund(s) and/or the Guaranteed Term(s) Groups
of the AG Account in which the Current Value is
invested. Within a Guaranteed Term Group, the
amount to be surrendered or transferred will be
withdrawn first from the oldest Deposit Period,
then from the next oldest, and so on until the
amount requested is satisfied.
After deduction of the Maintenance Fee, if
applicable, the surrendered amount shall be
reduced by a Surrender Fee, if applicable.
An MVA may apply to amounts surrendered from the
AG Account.
3.14 Surrender Fee: The Surrender Fee only applies to the Net
Purchase Payment(s) portion surrendered and
varies according to the elapsed time since
deposit (see Contract Schedule I). Net Purchase
Payment amounts are withdrawn in the same order
they were applied.
22
<PAGE>
No Surrender Fee is deducted from any portion of
the Net Purchase Payment which is paid:
(a) To a Beneficiary due to the Annuitant's
death before Annuity payments start, up to a
maximum of the aggregate Net Purchase
Payment(s) minus the total of all partial
surrenders, amounts applied to an Annuity
and deductions made prior to the Annuitant's
date of death;
(b) As a premium for an Annuity option under
this Contract (see 4.07);
(c) As a distribution under the SWO provision
(see 3.10);
3.14 Surrender Fee (Cont'd): (d) At least 12 months after the date of the
first Purchase Payment to the Account, in an
amount equal to or less than 15% of the
Current Value. This applies to the first
surrender request, partial or full, in a
calendar year. The Current Value is
calculated as of the date the surrender
request is received in good order at Aetna's
Home Office. This waiver is not available to
the Contract Holder while SWO is in effect;
or
(e) For a full surrender where the Account's
Current Value is $2,500 or less and no
surrenders have been taken from the Contract
within the prior 12 months.
3.15 Payment of Surrender Under certain emergency conditions, Aetna may
Value: defer payment:
(a) For a period of up to 6 months (unless not
allowed by state law); or
(b) As provided by federal law under the
Investment Company Act of 1940.
IV. ANNUITY PROVISIONS
- --------------------------------------------------------------------------------
4.01 Choices to be Made: The Certificate Holder may tell Aetna to apply
any portion of the Adjusted Current Value (minus
any premium tax) for an Annuity option (see
4.07). The first Annuity payment may not be
earlier than one calendar year after the initial
Purchase Payment nor later than the first day of
the month following the Annuitant's 90th
birthday.
When an Annuity option is chosen, Aetna must
also be told if payments are to be made other
than monthly and whether to pay:
(a) A Fixed Annuity using the General Account;
(b) A Variable Annuity using any of the Fund(s)
available under this Contract for Annuity
purposes; or
(c) A combination of (a) and (b).
23
<PAGE>
If a Fixed Annuity is chosen, the Annuity
purchase rate for the option chosen reflects at
least the Minimum Guaranteed Interest Rate (see
Contract Schedule II), but may reflect a higher
interest rate. If a Variable Annuity is chosen,
the initial Annuity payment for the option
chosen reflects the assumed annual return rate
elected. (see Contract Schedule II).
4.02 Terms of Annuity (a) When payments start, the age of the
Options: Annuitant plus the number of years for which
payments are guaranteed must not exceed 95.
4.02 Terms of Annuity (b) An Annuity option may not be elected if the
Options (Cont'd): first payment would be less than $50 or if
the total payments in a year would be less
than $250 (less if required by state law).
Aetna reserves the right to increase the
minimum first Annuity payment amount and the
minimum annual Annuity payment amount based
upon increases reflected in the Consumer
Price Index-Urban, (CPI-U) since July 1,
1993.
(c) If a Fixed Annuity is chosen and a larger
payment would result from applying the
Surrender Value or, if greater, 95% of what
the surrender would be if there were no
surrender fee, to a current Aetna single
premium immediate Annuity, Aetna will make
the larger payment.
(d) For purposes of calculating the guaranteed
first payment of a Variable Annuity or the
payments for a Fixed Annuity, the
Annuitant's and second Annuitant's adjusted
age will be used. The Annuitant's and second
Annuitant's adjusted age is his or her age
as of the birthday closest to the Annuity
commencement date reduced by one year for
Annuity commencement dates occurring during
the period of time from July 1, 1993 through
December 31, 1999. The Annuitant's and
second Annuitant's age will be reduced by
two years for Annuity commencement dates
occurring during the period of time from
January 1, 2000 through December 31, 2009.
The Annuitant's and second Annuitant's age
will be reduced by one additional year for
Annuity commencement dates occurring in each
succeeding decade.
The Annuity purchase rates for options 2 and
3 are based on mortality from 1983 Table a.
(e) Assumed Annual Net Return Rate is the
interest rate used to determine the amount
of the first Annuity payment under a
Variable Annuity as shown on Contract
Schedule II. The Separate Account must earn
this rate plus enough to cover the mortality
and expense risks charges (which may include
profit) and administrative charges if future
Variable Annuity Payments are to remain
level, (see Annuity return factor under
Variable Annuity Assumed Annual Net Return
Rate on Contract Schedule II).
24
<PAGE>
(f) Once elected, Annuity payments cannot be
commuted to a lump sum except for Variable
Annuity payments under option 1 (see 4.07).
The life expectancy of the Annuitant and the
Annuitant and second Annuitant shall be
irrevocable upon the election of an Annuity
option.
4.03 Death of Annuitant/ (a) Certificate Holder is Annuitant: When the
Beneficiary: Certificate Holder is the Annuitant's and
the Annuitant dies under option 1 or 2, or
both the Annuitant and the second Annuitant
die under option 3(d), the present value of
any remaining guaranteed payments will be
paid in one sum to the Beneficiary, or upon
election by the Beneficiary, any remaining
payments will continue to the Beneficiary.
If option 3 has been elected and the
Certificate Holder dies, the remaining
payments will continue to the successor
payee. If no successor payee has been
designated, the Beneficiary will be treated
as the successor payee. If the Account has
joint Certificate Holders, the surviving
joint Certificate Holder will be deemed the
successor payee.
(b) Certificate Holder is Not Annuitant: When
the Certificate Holder is not the Annuitant
and the Certificate Holder dies, the
remaining payments will continue to the
successor payee. If no successor payee has
been designed, the Beneficiary will be
treated as the successor payee. If the
Account has joint Certificate Holders, the
surviving joint Certificate Holder will be
deemed the successor payee.
If the Annuitant dies under the option 1 or
2, or if both the Annuitant and the second
Annuitant die under option 3(d), the present
value of any remaining guaranteed payments
will be paid in one sum to the Beneficiary,
or upon the election by the Beneficiary, any
remaining payments will continue to the
Beneficiary. If option 3 has been elected,
and the Annuitant dies, the remaining
payments will continue to the Certificate
Holder.
(c) No Beneficiary Named/Surviving: If there is
no Beneficiary, the present value of any
remaining payments will be paid in one sum
to the Certificate Holder, or if the
Certificate Holder is not living, then to
the Certificate Holder's estate.
(d) If the Beneficiary or the successor payee
dies while receiving Annuity payments, the
present value of any remaining guaranteed
payments will be paid in one sum to the
successor Beneficiary/payee, or upon
election by the successor Beneficiary/payee,
any remaining payments will continue to the
successor Beneficiary/payee. If no successor
Beneficiary/payee has been designated, the
present value of any remaining guaranteed
payments will be paid in one sum to the
Beneficiary's/payee's estate.
25
<PAGE>
(e) The present value will be determined as of
the Valuation Period in which proof of death
acceptable to Aetna and a request for
payment is received at Aetna's Home Office.
The interest rate used to determine the
first payment will be used to calculate the
present value.
4.04 Fund(s) Annuity Units - The number of each Fund's Annuity units is based
Separate Account: on the amount of the first Variable Annuity
payment which is equal to:
(a) The portion of the Current Value applied to
pay a Variable Annuity (minus any premium
tax); divided by
(b) 1,000; multiplied by
(c) The payment rate for the option chosen.
Such amount, or portion of the Variable payment
will be divided by the appropriate Fund Annuity
unit value (see 4.05) of the tenth Valuation
Period before the due date of the first payment
to determine the number of each Fund Annuity
units. The number of each Fund Annuity units
remains fixed. Each future payment is equal to
the sum of the products of each Fund Annuity
unit value multiplied by the appropriate number
of units. The Fund Annuity unit value on the
tenth Valuation Period prior to the due date of
the payment is used.
4.05 Fund(s) Annuity Unit For any Valuation Period, a Fund Annuity unit
Value - Separate Account: value is equal to:
(a) The Value for the previous Period;
multiplied by
(b) The Annuity net return factor(s) (see 4.06
below) for the Period; multiplied by
(c) A factor to reflect the assumed annual net
return rate (see Contract Schedule II).
The dollar value of a Fund Annuity unit value
and Annuity payments may go up or down due to
investment gain or loss.
4.06 Annuity Net Return The Annuity net return factor(s) are used to
Factor(s) - Separate compute Annuity payments for any Fund.
Account:
The Annuity net return factor(s) for each Fund
is equal to 1.0000000 plus the net return rate.
The net return rate is equal to:
26
<PAGE>
(a) The value of the shares of the Fund held by
the Separate Account at the end of a
Valuation Period; minus
(b) The value of the shares of the Fund held by
the Separate Account at the start of the
Valuation Period; plus or minus
(c) Taxes (or reserves for taxes) on the
Separate Account (if any); divided by
(d) The total value of the Fund record units and
Fund Annuity units of the Separate Account
at the start of the Valuation Period; minus
(e) A daily charge for Annuity mortality and
expense risks, which may include profit, and
a daily administrative charge (at the annual
rate as shown on Contract Schedule II).
4.06 Annuity Net Return A net return rate may be more of less than 0%.
Factor(s) - Separate
Account (Cont'd): The value of a share of the Fund is equal to the
net assets of the Fund divided by the number of
shares outstanding.
Payments shall not be changed due to changes in
the mortality or expense results or
administrative charges.
4.07 Annuity Options: Option 1 -- Payments for a Stated Period of
Time -- An Annuity will be paid for the number
of years chosen. The number of years must be at
least 5 and not more than 30.
If payments for this option are made under a
Variable Annuity, the present value of any
remaining payments may be withdrawn at any time.
If a withdrawal is requested within 3 years
after the start of payments, it will be treated
as a surrender and any applicable Surrender Fee
will be applied (see 3.14).
If a nonspouse Beneficiary elects this option at
the death of the Contract Holder, the period
selected may not extend beyond the Beneficiary's
life expectancy.
Option 2 -- Life Income -- An Annuity will be
paid for the life of the Annuitant. If also
chosen, Aetna will guarantee payments for 60,
120, 180, or 240 months.
Option 3 -- Life Income Based upon the Lives of
Two Annuitants -- An Annuity will be paid during
the lives of the Annuitant and a second
Annuitant. Payments will continue until both
Annuitants have died. When this option is
chosen, a choice must be made of:
27
<PAGE>
(a) 100% of the payment to continue after the
first death;
(b) 66-2/3% of the payment to continue after the
first death;
(c) 50% of the payment to continue after the
first death;
(d) Payments for a minimum of 120 months with
100% of the payment to continue after the
first death; or
(e) 100% of the payment to continue at the death
of the second Annuitant and 50% of the
payment to continue at the death of the
Annuitant.
Other Options -- Aetna may make other options
available as allowed by the laws of the state in
which the Contract and this Certificate is
delivered.
28
<PAGE>
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
- ------------------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
- ------------------------------------------------------------------------------
5 3.00% 17.91 53.59 106.78 211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
- ------------------------------------------------------------------------------
29
<PAGE>
OPTION 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Adjusted None 60 120 180 240
Age of ----------------------------------------------------------------------------------------------------
Annuitant Male Female Male Female Male Female Male Female Male Female
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
50 $ 4.27 $ 3.90 $ 4.26 $ 3.90 $ 4.22 $ 3.89 $ 4.17 $ 3.86 $ 4.08 $ 3.82
51 4.34 3.97 4.33 3.96 4.30 3.95 4.23 3.92 4.14 3.88
52 4.43 4.03 4.41 4.03 4.37 4.01 4.30 3.98 4.20 3.93
53 4.51 4.10 4.50 4.10 4.45 4.08 4.37 4.04 4.26 3.99
54 4.60 4.18 4.59 4.17 4.54 4.15 4.45 4.11 4.32 4.04
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.39 4.11
56 4.80 4.34 4.78 4.33 4.72 4.30 4.61 4.25 4.45 4.17
57 4.91 4.42 4.89 4.41 4.82 4.38 4.69 4.32 4.51 4.23
58 5.03 4.52 5.00 4.51 4.92 4.47 4.78 4.40 4.58 4.30
59 5.15 4.61 5.12 4.60 5.03 4.56 4.87 4.48 4.65 4.37
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.71 4.44
61 5.43 4.83 5.39 4.81 5.27 4.76 5.06 4.66 4.78 4.51
62 5.58 4.95 5.53 4.93 5.39 4.87 5.16 4.75 4.84 4.58
63 5.74 5.08 5.69 5.05 5.53 4.99 5.26 4.85 4.90 4.65
64 5.91 5.21 5.85 5.18 5.66 5.10 5.36 4.95 4.96 4.72
65 6.10 5.36 6.03 5.32 5.81 5.22 5.46 5.05 5.02 4.79
66 6.30 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.08 4.86
67 6.51 5.67 6.41 5.63 6.12 5.50 5.66 5.26 5.13 4.93
68 6.73 5.85 6.62 5.80 6.28 5.65 5.77 5.37 5.18 5.00
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 5.23 5.06
70 7.23 6.25 7.07 6.18 6.61 5.97 5.96 5.60 5.27 5.12
71 7.51 6.47 7.32 6.39 6.79 6.14 6.05 5.71 5.31 5.18
72 7.80 6.71 7.58 6.62 6.96 6.32 6.14 5.83 5.34 5.23
73 8.12 6.98 7.85 6.86 7.14 6.50 6.23 5.94 5.37 5.28
74 8.46 7.26 8.14 7.12 7.32 6.69 6.31 6.04 5.40 5.32
75 8.82 7.57 8.45 7.40 7.50 6.89 6.38 6.14 5.42 5.35
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
30
<PAGE>
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Male and Second Annuitant is Female)
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Adjusted Ages
- --------------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $ 3.69 $ 4.05 $ 4.27 $ 3.69 $ 4.13
55 55 3.88 4.25 4.47 3.87 4.25
55 60 3.06 4.47 4.71 4.06 4.36
60 55 3.99 4.44 4.71 3.98 4.55
60 60 4.24 4.71 4.99 4.23 4.70
60 65 4.49 5.01 5.32 4.48 4.85
65 60 4.38 4.97 5.32 4.38 5.10
65 65 4.72 5.33 5.70 4.71 5.32
65 70 5.07 5.75 6.17 5.05 5.54
70 65 4.93 5.68 6.15 4.91 5.86
70 70 5.40 6.21 6.70 5.36 6.18
70 75 5.89 6.82 7.40 5.81 6.49
75 70 5.69 6.68 7.32 5.62 6.92
75 75 6.37 7.45 8.15 6.23 7.40
75 80 7.07 8.34 9.16 6.78 7.85
- --------------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983
Table a. The rates assume the Annuitant is Male and the
Second Annuitant is Female.
Rates for ages not shown will be provided on
request and will be computed on a basis
consistent with the rates in the above
tables.
31
<PAGE>
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Female and Second Annuitant is Male)
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Adjusted Ages
- -------------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $ 3.75 $ 4.07 $ 4.26 $ 3.75 $ 3.98
55 55 3.88 4.25 4.47 3.87 4.06
55 60 3.99 4.44 4.71 3.98 4.12
60 55 4.06 4.47 4.71 4.06 4.37
60 60 4.24 4.71 4.99 4.23 4.47
60 65 4.38 4.97 5.32 4.38 4.54
65 60 4.49 5.01 5.32 4.48 4.89
65 65 4.72 5.33 5.70 4.71 5.02
65 70 4.93 5.68 6.15 4.91 5.14
70 65 5.07 5.75 6.17 5.05 5.60
70 70 5.40 6.21 6.70 5.36 5.79
70 75 5.69 6.68 7.32 5.62 5.96
75 70 5.89 6.83 7.40 5.81 6.63
75 75 6.37 7.45 8.15 6.23 6.92
75 80 6.78 8.11 8.99 6.54 7.15
- ------------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983
Table a. The rates assume the Annuitant is Female and
the Second Annuitant is Male.
Rates for ages not shown will be provided on
request and will be computed on a basis
consistent with the rates in the above tables.
32
<PAGE>
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
- -------------------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
- -------------------------------------------------------------------------------
5 3.50% 18.12 54.19 107.92 213.99
6 3.50% 15.35 45.92 91.44 181.32
7 3.50% 13.38 40.01 79.69 158.01
8 3.50% 11.90 35.59 70.88 140.56
9 3.50% 10.75 32.16 64.05 127.00
10 3.50% 9.83 29.42 58.59 116.18
11 3.50% 9.09 27.18 54.13 107.34
12 3.50% 8.46 25.32 50.42 99.98
13 3.50% 7.94 23.75 47.29 93.78
14 3.50% 7.49 22.40 44.62 88.47
15 3.50% 7.10 21.24 42.31 83.89
16 3.50% 6.76 20.23 40.29 79.89
17 3.50% 6.47 19.34 38.51 76.37
18 3.50% 6.20 18.55 36.94 73.25
19 3.50% 5.97 17.85 35.54 70.47
20 3.50% 5.75 17.22 34.28 67.98
21 3.50% 5.56 16.65 33.15 65.74
22 3.50% 5.39 16.13 32.13 63.70
23 3.50% 5.24 15.66 31.19 61.85
24 3.50% 5.09 15.24 30.34 60.17
25 3.50% 4.96 14.85 29.56 58.62
26 3.50% 4.84 14.49 28.85 57.20
27 3.50% 4.73 14.15 28.19 55.90
28 3.50% 4.63 13.85 27.58 54.69
29 3.50% 4.53 13.57 27.02 53.57
30 3.50% 4.45 13.30 26.49 52.53
- -------------------------------------------------------------------------------
33
<PAGE>
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
- -------------------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
- -------------------------------------------------------------------------------
5 5.00% 18.74 56.00 111.33 219.98
6 5.00% 15.99 47.77 94.96 187.64
7 5.00% 14.02 41.90 83.30 164.59
8 5.00% 12.56 37.52 74.58 147.35
9 5.00% 11.42 34.11 67.81 133.99
10 5.00% 10.51 31.40 62.42 123.34
11 5.00% 9.77 29.19 58.03 114.66
12 5.00% 9.16 27.36 54.38 107.45
13 5.00% 8.64 25.81 51.31 101.39
14 5.00% 8.20 24.50 48.69 96.21
15 5.00% 7.82 23.36 46.44 91.75
16 5.00% 7.49 22.37 44.47 87.88
17 5.00% 7.20 21.51 42.75 84.48
18 5.00% 6.94 20.74 41.23 81.47
19 5.00% 6.71 20.06 39.88 78.80
20 5.00% 6.51 19.46 38.68 76.42
21 5.00% 6.33 18.91 37.59 74.28
22 5.00% 6.17 18.42 36.62 72.35
23 5.00% 6.02 17.98 35.73 70.61
24 5.00% 5.88 17.57 34.93 69.02
25 5.00% 5.76 17.20 34.20 67.57
26 5.00% 5.65 16.87 33.53 66.25
27 5.00% 5.54 16.56 32.92 65.04
28 5.00% 5.45 16.28 32.35 63.93
29 5.00% 5.36 16.01 31.83 62.90
30 5.00% 5.28 15.77 31.35 61.95
- -------------------------------------------------------------------------------
34
<PAGE>
Option 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Months
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Adjusted None 60 120 180 240
Age of -------------------------------------------------------------------------------------------------
Annuitant Male Female Male Female Male Female Male Female Male Female
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
50 $ 4.56 $ 4.20 $ 4.55 $ 4.19 $ 4.51 $ 4.18 $ 4.45 $ 4.15 $4.36 $ 4.11
51 4.64 4.26 4.62 4.25 4.58 4.24 4.51 4.21 4.42 4.16
52 4.72 4.32 4.70 4.32 4.66 4.30 4.58 4.26 4.48 4.21
53 4.80 4.39 4.79 4.38 4.74 4.36 4.65 4.32 4.53 4.27
54 4.89 4.46 4.87 4.46 4.82 4.43 4.73 4.39 4.59 4.32
55 4.99 4.54 4.97 4.53 4.91 4.50 4.80 4.46 4.65 4.38
56 5.09 4.62 5.07 4.61 5.00 4.58 4.88 4.53 4.72 4.44
57 5.20 4.71 5.17 4.70 5.10 4.66 4.96 4.60 4.78 4.50
58 5.32 4.80 5.29 4.79 5.20 4.75 5.05 4.68 4.84 4.57
59 5.44 4.90 5.41 4.88 5.31 4.84 5.14 4.76 4.91 4.63
60 5.57 5.00 5.53 4.99 5.42 4.93 5.23 4.84 4.97 4.70
61 5.71 5.11 5.67 5.09 5.54 5.03 5.32 4.93 5.03 4.77
62 5.86 5.23 5.81 5.21 5.66 5.14 5.42 5.02 5.09 4.84
63 6.02 5.36 5.97 5.33 5.79 5.25 5.51 5.11 5.16 4.91
64 6.20 5.49 6.13 5.46 5.93 5.37 5.61 5.21 5.21 4.98
65 6.38 5.64 6.31 5.60 6.07 5.49 5.71 5.31 5.27 5.05
66 6.58 5.79 6.49 5.75 6.22 5.63 5.81 5.41 5.32 5.12
67 6.79 5.95 6.69 5.91 6.38 5.76 5.91 5.52 5.38 5.18
68 7.02 6.13 6.89 6.08 6.53 5.91 6.01 5.63 5.42 5.25
69 7.26 6.32 7.11 6.26 6.70 6.06 6.11 5.74 5.47 5.31
70 7.52 6.53 7.35 6.45 6.86 6.23 6.20 5.58 5.51 5.37
71 7.80 6.75 7.59 6.66 7.03 6.39 6.29 5.96 5.54 5.42
72 8.09 6.99 7.85 6.89 7.21 6.57 6.38 6.07 5.57 5.47
73 8.41 7.26 8.12 7.13 7.38 6.75 6.46 6.17 5.60 5.51
74 8.75 7.54 8.41 7.39 7.55 6.94 6.53 6.28 5.63 5.55
75 9.12 7.85 8.71 7.66 7.73 7.13 6.61 6.38 5.65 5.59
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
35
<PAGE>
Option 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Payments Guaranteed for a Stated Period of Months
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Adjusted None 60 120 180 240
Age of -------------------------------------------------------------------------------------------------
Annuitant Male Female Male Female Male Female Male Female Male Female
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
50 $ 5.48 $ 5.12 $ 5.46 $ 5.11 $ 5.41 $ 5.09 $ 5.34 $ 5.06 $ 5.24 $ 5.01
51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.29 5.05
52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.34 5.10
53 5.71 5.30 5.69 5.29 5.62 5.26 5.53 5.22 5.40 5.15
54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.27 5.45 5.20
55 5.89 5.44 5.86 5.43 5.79 5.39 5.67 5.34 5.51 5.25
56 5.99 5.52 5.96 5.51 5.87 5.47 5.74 5.40 5.56 5.31
57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.62 5.37
58 6.21 5.69 6.17 5.67 6.06 5.62 5.90 5.54 5.68 5.42
59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.61 5.74 5.48
60 6.46 5.89 6.41 5.87 6.28 5.80 6.06 5.69 5.79 5.55
61 6.60 6.00 6.55 6.97 6.39 5.90 6.15 5.77 5.85 5.61
62 6.75 6.11 6.69 6.08 6.51 6.00 6.24 5.86 5.91 5.67
63 6.91 6.23 6.84 6.20 6.64 6.10 6.33 5.95 5.96 5.73
64 7.09 6.37 7.00 6.33 6.77 6.22 6.42 6.04 6.02 5.80
65 7.27 6.51 7.18 6.46 6.91 6.34 6.52 6.13 6.07 5.86
66 7.47 6.66 7.36 6.61 7.05 6.46 6.61 6.23 6.12 5.92
67 7.68 6.82 7.55 6.76 7.20 6.60 6.70 6.33 6.16 5.99
68 7.91 7.00 7.76 6.93 7.35 6.74 6.80 6.43 6.21 6.04
69 8.15 7.19 7.98 7.11 7.51 6.89 6.89 6.54 6.25 6.10
70 8.41 7.39 8.21 7.30 7.67 7.04 6.97 6.64 6.28 6.15
71 8.69 7.62 8.45 7.51 7.83 7.21 7.06 6.74 6.32 6.20
72 8.99 7.86 8.70 7.73 8.00 7.38 7.14 6.85 6.35 6.25
73 9.31 8.12 8.97 7.97 8.16 7.55 7.21 6.95 6.37 6.29
74 9.65 8.41 9.26 8.23 8.33 7.73 7.29 7.04 6.39 6.33
75 10.02 8.72 9.55 8.50 8.50 7.92 7.35 7.14 6.41 6.36
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
36
<PAGE>
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Male and Second Annuitant is Female)
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Adjusted Ages
- -----------------------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $ 3.97 $ 4.35 $ 4.56 3.97 $ 4.42
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.34 4.76 5.00 4.34 4.64
60 55 4.27 4.73 5.00 4.26 4.83
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.76 5.29 5.60 4.75 5.13
65 60 4.66 5.25 5.61 4.65 5.39
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.34 6.03 6.46 5.31 5.81
70 65 5.19 5.97 6.44 5.17 6.14
70 70 5.67 6.49 6.99 5.62 6.47
70 75 6.16 7.10 7.68 6.07 6.77
75 70 5.95 6.96 7.61 5.87 7.20
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.33 8.62 9.45 7.02 8.13
- -------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Male and the Second Annuitant is Female.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
37
<PAGE>
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Female and Second Annuitant is Male)
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Adjusted Ages
- -----------------------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $ 4.03 $ 4.36 $ 4.55 $ 4.03 $ 4.41
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.27 4.73 5.00 4.26 4.83
60 55 4.34 4.76 5.00 4.34 4.64
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.66 5.25 5.61 4.65 5.39
65 60 4.76 5.29 5.60 4.75 5.13
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.19 5.97 6.44 5.17 6.14
70 65 5.34 6.03 6.46 5.31 5.81
70 70 5.67 6.49 6.99 5.62 6.47
70 75 5.95 6.96 7.61 5.87 7.20
75 70 6.16 7.10 7.68 6.07 6.77
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.04 8.39 9.29 6.79 8.70
- -------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Female and the Second Annuitant is Male.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
38
<PAGE>
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Male and Second Annuitant is Female)
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Adjusted Ages
- -----------------------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $ 4.88 $5.26 $ 5.48 $ 4.88 $ 5.34
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.21 5.65 5.89 5.21 5.53
60 55 5.15 5.63 5.91 5.14 5.73
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.61 6.16 6.49 5.60 6.01
65 60 5.52 6.14 6.51 5.51 6.28
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.17 6.90 7.33 6.13 6.67
70 65 6.04 6.84 7.34 6.00 7.03
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.97 7.96 8.56 6.87 7.62
75 70 6.77 7.84 8.51 6.68 8.08
75 75 7.45 8.60 9.33 7.27 8.55
75 80 8.14 9.49 10.35 7.80 8.98
- --------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Male and the Second Annuitant is Female.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
39
<PAGE>
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Female and Second Annuitant is Male)
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Adjusted Ages
- -----------------------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $4.93 $5.27 $ 5.46 $ 4.93 $5.19
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.15 5.63 5.91 5.14 5.73
60 55 5.21 5.65 5.89 5.21 5.53
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.52 6.14 6.51 5.51 6.28
65 60 5.61 6.16 6.49 5.60 6.01
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.04 6.84 7.34 6.00 7.03
70 65 6.17 6.90 7.33 6.13 6.67
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.77 7.84 8.51 6.68 8.08
75 70 6.97 7.96 8.56 6.87 7.62
75 75 7.45 8.60 9.33 7.27 8.55
75 80 7.86 9.28 10.20 7.57 9.59
- -------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Female and the Second Annuitant is Male.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
40
<PAGE>
- --------------------------------------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
Hartford, Connecticut 06156
(800) 525-4225
Certificate of Group Annuity Coverage
- --------------------------------------------------------------------------------
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CERTIFICATE CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA
DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
GMCC-97(NY)
Aetna Life Insurance and Annuity Company
Endorsement
The Contract and Certificate are hereby endorsed to meet the qualification
requirements for a Roth Individual Retirement Annuity under Internal Revenue
Code ("Code") Section 408A. The following provisions apply and, in the case of a
conflict with any provision in the Contract, this endorsement controls.
Certificate Holder. The Certificate Holder and the Annuitant must be the same
person. Joint Certificate Holders are not permitted.
Nontransferable/Nonforfeitable. The Contract is nontransferable. The Certificate
Holder may not sell, assign, transfer, pledge or use as collateral for a loan or
as security for the performance of an obligation or for any other purpose, his
or her interest in the Contract to any person other than the issuer of the
Contract or to a spouse incident to a divorce under the provisions of Code
Section 408(d)(6). The Certificate Holder's entire interest in the Contract is
nonforfeitable.
Exclusive Benefit. The Account is established for the exclusive benefit of the
Cetificate Holder or his or her Beneficiary(ies).
Contributions. All contributions must be in cash. Except in the case of a
qualified rollover contribution as defined in Code Section 408A(e), the total
contributions shall not exceed $2,000 for any taxable year. Aetna reserves the
right to not accept rollover contributions to an existing contract.
Distributions. The distribution rules of Code Section 401(a)(9)(A) do not apply.
Any periodic payments will be paid only to the Certificate Holder.
Payment of Death Benefit. Section 3.12 is deleted in its entirety. The death
benefit amount is determined in accordance with the provisions of Sections 3.11
and 3.06. At the death of the Certificate Holder:
(a) If the Certificate Holder dies on or after the date distribution of his or
her interest has begun, the remaining portion of such interest, if any, will
continue to be distributed at least as rapidly as under the method of
distribution being used prior to the Certificate Holder's death.
(b) If the Certificate Holder dies before distribution of his or her interest
begins, the death benefit payable to the Beneficiary will be distributed no
later than December 31 of the calendar year which contains the fifth
anniversary of the date of the Certificate Holder's death, except to the
extent that an election is made to receive a distribution in accordance with
(i) or (ii) below.
(i) Distributions to the Beneficiary may be made in installments over the
life of the Beneficiary or over a period not extending beyond the life
expectancy of the Beneficiary, commencing no later than December 31
of the calendar year immediately following the calendar year in which
the Certificate Holder died.
(ii) If the Beneficiary is the Certificate Holder's surviving spouse, and
distributions are to be made in accordance with (i) above,
distributions must begin on or before the later of December 31 of the
calendar year immediately following the calendar year in which the
Certificate Holder died or December 31 of the calendar year in which
the Certificate Holder would have attained age 70-1/2.
If the Certificate Holder dies before Annuity payments begin, a spousal
Beneficiary may elect an Annuity option, a systematic distribution option, a
lump sum payment or to treat the Account as his
E1-MPROTH-97
<PAGE>
or her own IRA. The election to treat the Account as his or her own IRA will be
deemed to have been made if such surviving spouse makes a rollover to or from
such Account, or fails to elect to receive a distribution in accordance with (b)
above.
Life expectancy is computed by use of the expected return multiples in Table V
of Section 1.72-9 of the Income Tax Regulations. Life expectancies for
distributions under an Annuity option may not be recalculated.
Annual Reports. Aetna will furnish annual calendar year reports concerning the
status of the Certificate Holder's Account.
Termination of Account. Upon 90 days written notice to the Certificate Holder,
Aetna may terminate the Certificate Holder's Account if no Purchase Payment(s)
have been received for two full consecutive Certificate years and the paid-up
Annuity benefit at maturity would be less than $20 per month.
Right to Cancel. The Certificate Holder may cancel the Certificate within 10
days of receiving it by returning it to Aetna or to the person from whom it was
purchased. Within seven days from the cancellation request, Aetna will return
all the Certificate Holder's Purchase Payment(s).
If the source of the Purchase Payment(s) was a rollover from a contract issued
by Aetna or one of its affiliates in which the Surrender Fee was waived or
reduced, then the Purchase Payment(s) will be restored to the predecessor
contract.
Surrender Fee. Section 3.14 is amended to add the following item (I). "(I) As a
Purchase Payment for a Roth Individual Retirement Annuity, issued by Aetna or
one of its affiliates, that gives credit for time spent in the predecessor
contract in applying the surrender fee."
Surrender Fee. The first paragraph of Section 3.14 is deleted and replaced with
the following: "The Surrender Fee only applies to the Net Purchase Payment(s)
portion surrendered (see Contract Schedule I)".
Endorsed and made a part of the Contract and Certificate as of the Effective
Date.
/s/ Thomas J. McInerney
-----------------------
Thomas J. McInerney, President
Aetna Life Insurance and Annuity Company
E1-MPROTH-97
Aetna Life Insurance and Annuity Company
Endorsement
The Contract is hereby endorsed to meet the qualification requirements for a
Roth Individual Retirement Annuity under Internal Revenue Code ("Code") Section
408A. The following provisions apply and, in the case of a conflict with any
provision in the Contract, this endorsement controls.
Contract Holder. The Contract Holder and the Annuitant must be the same person.
Joint Contract Holders are not permitted.
Nontransferable/Nonforfeitable. The Contract is nontransferable. The Contract
Holder may not sell, assign, transfer, pledge or use as collateral for a loan or
as security for the performance of an obligation or for any other purpose, his
or her interest in the Contract to any person other than the issuer of the
Contract or to a spouse incident to a divorce under the provisions of Code
Section 408(d)(6). The Contract Holder's entire interest in the Contract is
nonforfeitable.
Exclusive Benefit. The Account is established for the exclusive benefit of the
Contract Holder or his or her Beneficiary(ies).
Contributions. All contributions must be in cash. Except in the case of a
qualified rollover contribution as defined in Code Section 408A(e), the total
contributions shall not exceed $2,000 for any taxable year. Aetna reserves the
right to not accept rollover contributions from an existing contract.
Distributions. The distribution rules of Code Section 401(a)(9)(A) do not apply.
Any periodic payments will be paid only to the Contract Holder.
Payment of Death Benefit. Section 3.12 is deleted in its entirety. The death
benefit amount is determined in accordance with the provisions of Sections 3.11
and 3.06 At the death of the Contract Holder:
(a) If the Contract Holder dies on or after the date distribution of his or
her interest has begun, the remaining portion of such interest, if any,
will continue to be distributed at least as rapidly as under the method
of distribution being used prior to the Contract Holder's death.
(b) If the Contract Holder dies before distribution of his or her interest
begins, the death benefit payable to the Beneficiary will be distributed
no later than December 31 of the calendar year which contains the fifth
anniversary of the date of the Contract Holder's death, except to the
extent that an election is made to receive a distribution in accordance
with (i) or (ii) below.
(i) Distributions to the Beneficiary may be made in installments over
the life of the Beneficiary or over a period not extending beyond
the life expectancy of the Beneficiary, commencing no later than
December 31 of the calendar year immediately following the
calendar year in which the Contract Holder died.
(ii) If the Beneficiary is the Contract Holder's surviving spouse, and
distributions are to be made in accordance with (i) above,
distributions must begin on or before the later of December 31 of
the calendar year immediately following the calendar year in which
the Contract Holder died or December 31 of the calendar year in
which the Contract Holder would have attained age 70-1/2.
If the Contract Holder dies before Annuity payments begin, a spousal Beneficiary
may elect an Annuity option, a systematic distribution option, a lump sum
payment or to treat the Account as his or her own IRA. The election to treat the
Account as his or her own IRA will be deemed to have
EI1-MPROTH-97
<PAGE>
been made if such surviving spouse makes a rollover to or from such Account, or
fails to elect to receive a distribution in accordance with (b) above.
Life expectancy is computed by use of the expected return multiples in Table V
of Section 1.72-9 of the Income Tax Regulations. Life expectancies for
distributions under an Annuity option may not be recalculated.
Annual Reports. Aetna will furnish annual calendar year reports concerning the
status of the Contract Holder's Account.
Termination of Account. Upon 90 days written notice to the Contract Holder,
Aetna may terminate the Contract Holder's Account if no Purchase Payment(s) have
been received for two full consecutive contract years and the paid-up Annuity
benefit at maturity would be less than $20 per month.
Right to Cancel. The Contract Holder may cancel the contract within 10 days of
receiving it by returning it to Aetna or to the person from whom it was
purchased. Within seven days from the cancellation request, Aetna will return
all the Contract Holder's Purchase Payment(s).
If the source of the Purchase Payment(s) was a rollover from a contract issued
by Aetna or one of its affiliates in which the Surrender Fee was waived or
reduced, then the Purchase Payment(s) will be restored to the predecessor
contract.
Surrender Fee. Section 3.14 is amended to add the following item (I). "(I) As a
Purchase Payment for a Roth Individual Retirement Annuity, issued by Aetna or
one of its affiliates, that gives credit for time spent in the predecessor
contract in applying the surrender fee."
Surrender Fee. The first paragraph of Section 3.14 is deleted and replaced with
the following: "The Surrender Fee only applies to the Net Purchase Payment(s)
portion surrendered (see Contract Schedule I)".
Endorsed and made a part of the Contract as of the Effective Date.
/s/ Thomas J. McInerney
Thomas J. McInerney, President
Aetna Life Insurance and Annuity Company
EI1-MPROTH-97
Aetna Life Insurance and Annuity Company
Endorsement
The Contract and Certificate are hereby endorsed to meet the qualification
requirements for a Individual Retirement Annuity under Internal Revenue Code
("Code") Section 408(b). The following provisions apply and, in the case of a
conflict with any provision in the Contract, this endorsement controls.
Certificate Holder. The Certificate Holder and the Annuitant must be the same
person. Joint Certificate Holders are not permitted.
Nontransferable/Nonforfeitable. The Contract is nontransferable. The Certificate
Holder may not sell, assign, transfer, pledge or use as collateral for a loan or
as security for the performance of an obligation or for any other purpose, his
or her interest in the Contract to any person other than the issuer of the
Contract or to a spouse incident to a divorce under the provisions of Code
Section 408(d)(6). The Certificate Holder's entire interest in the Contract is
nonforfeitable.
Exclusive Benefit. The Account is established for the exclusive benefit of the
Certificate Holder or his or her Beneficiary(ies).
Contributions. All contributions must be in cash. Except in the case of a
qualified rollover contribution as permitted by Code Section 402(c), 403(a)(4),
403(b)(8), or 408(d)(3) or a contribution made in accordance with the terms of a
Simplified Employee Pension (SEP) as described in Code Section 408(k), the total
contributions shall not exceed $2,000 for any taxable year.
Distributions. All distributions will be made in accordance with the
requirements of Code Section 401(a)(9). Any periodic payments will be paid only
to the Certificate Holder.
Required Beginning Date. No later than the April 1 following the calendar year
in which the Certificate Holder attains age 70-1/2, the Certificate Holder may
elect to receive the entire interest in a lump sum, or may elect to begin
periodic payments under a systematic distribution option which must be
distributed over:
(a) The life of the Certificate Holder, or the lives of the Certificate Holder
and his or her designated Beneficiary, or
(b) A period certain not extending beyond the life expectancy of the
Certificate Holder or the joint and last survivor expectancy of the
Certificate Holder and his or her designated Beneficiary.
Periodic payments must be made at intervals of no longer than one year. In
addition, payments made as an annuity must be either nonincreasing of they may
increase only as provided in Section 1.401(a)(9)-1 of the Proposed Income Tax
Regulations.
Life expectancy is computed by use of the expected return multiples in Tables V
and VI of section 1.72-9 of the Income Tax Regulations. Life expectancy for
distributions under an Annuity option may not be recalculated.
Payment of Death Benefit. Section 3.12 is deleted in its entirety. The death
benefit amount is determined in accordance with the provisions of Sections 3.11
and 3.06 At the death of the Certificate Holder:
MP1IRA(11/97)
<PAGE>
(a) If the Certificate Holder dies on or after the date distribution of his
or her interest has begun, the remaining portion of such interest, if
any, will continue to be distributed at least as rapidly as under the
method of distribution being used prior to the Certificate Holder's
death.
(b) If the Certificate Holder dies before distribution of his or her interest
begins, the death benefit payable to the Beneficiary will be distributed
no later than December 31 of the calendar year which contains the fifth
anniversary of the date of the Certificate Holder's death, except to the
extent that an election is made to receive a distribution in accordance
with (i) or (ii) below.
(i) Distributions to the Beneficiary may be made in installments over
the life of the Beneficiary or over a period not extending beyond
the life expectancy of the Beneficiary, commencing no later than
December 31 of the calendar year immediately following the
calendar year in which the Certificate Holder died.
(ii) If the Beneficiary is the Certificate Holder's surviving spouse,
and distributions are to be made in accordance with (i) above,
distributions must begin on or before the later of December 31 of
the calendar year immediately following the calendar year in which
the Certificate Holder died or December 31 of the calendar year in
which the Certificate Holder would have attained age 70-1/2.
If the Certificate Holder dies before Annuity payments begin, a spousal
Beneficiary may elect an Annuity option, a systematic distribution option, a
lump sum payment or to treat the Account as his or her own IRA. The election to
treat the Account as his or her own IRA will be deemed to have been made if such
surviving spouse makes a rollover to or from such Account, or fails to elect to
receive a distribution in accordance with (b) above.
Life expectancy is computed by use of the expected return multiples in Tables V
and VI of Section 1.72-9 of the Income Tax Regulations. Life expectancies for
distributions under an Annuity option may not be recalculated.
Distributions under this section are considered to have begun if distributions
are made on account of the Certificate Holder reaching the required beginning
date or if prior to the required beginning date distributions irrevocably
commence over a period permitted and in an Annuity option acceptable under
Section 1.401(a)(9) of the Proposed Income Tax Regulations.
Annual Reports. Aetna will furnish annual calendar year reports concerning the
status of the Certificate Holder's Account.
Termination of Account. Upon 90 days written notice to the Certificate Holder,
Aetna may terminate the Certificate Holder's Account if no Purchase Payment(s)
have been received for two full consecutive Certificate years and the paid-up
Annuity benefit at maturity would be less than $20 per month.
Right to Cancel. The Certificate Holder may cancel the Certificate within 10
days of receiving it by returning it to Aetna or to the person from whom it was
purchased. Within seven days from the cancellation request, Aetna will return
all the Certificate Holder's Purchase Payment(s).
If the source of the Purchase Payment(s) was a rollover from a contract issued
by Aetna or one of its affiliates in which the Surrender Fee was waived or
reduced, then the Purchase Payment(s) will be restored to the predecessor
contract.
Surrender Fee. Section 3.14 is amended to add the following item (I). "(I) As a
Purchase Payment for a Roth Individual Retirement Annuity, issued by Aetna or
one of its affiliates, that gives credit for time spent in the predecessor
contract in applying the surrender fee.
MP1IRA(11/97)
<PAGE>
Endorsed and made a part of the Contract and Certificate as of the Effective
Date.
/s/ Thomas J. McInerney
Thomas J. McInerney, President
Aetna Life Insurance and Annuity Company
MP1IRA(11/97)
Aetna Life Insurance and Annuity Company
Endorsement
The Contract is hereby endorsed to meet the qualification requirements for a
Individual Retirement Annuity under Internal Revenue Code ("Code") Section
408(b). The following provisions apply and, in the case of a conflict with any
provision in the Contract, this endorsement controls.
Contract Holder. The Contract Holder and the Annuitant must be the same person.
Joint Contract Holders are not permitted.
Nontransferable/Nonforfeitable. The Contract is nontransferable. The Contract
Holder may not sell, assign, transfer, pledge or use as collateral for a loan or
as security for the performance of an obligation or for any other purpose, his
or her interest in the Contract to any person other than the issuer of the
Contract or to a spouse incident to a divorce under the provisions of Code
Section 408(d)(6). The Contract Holder's entire interest in the Contract is
nonforfeitable.
Exclusive Benefit. The Contract is established for the exclusive benefit of the
Contract Holder or his or her Beneficiary(ies).
Contributions. All contributions must be in cash. Except in the case of a
qualified rollover contribution as permitted by Code Section 402(c), 403(a)(4),
403(b)(8), or 408(d)(3) or a contribution made in accordance with the terms of a
Simplified Employee Pension (SEP) as described in Code Section 408(k), the total
contributions shall not exceed $2,000 for any taxable year.
Distributions. All distributions will be made in accordance with the
requirements of Code Section 401(a)(9). Any periodic payments will be paid only
to the Contract Holder.
Required Beginning Date. No later than the April 1 following the calendar year
in which the Contract Holder attains age 70-1/2, the Contract Holder may elect
to receive the entire interest in a lump sum, or may elect to begin periodic
payments under a systematic distribution option which must be distributed over:
(a) The life of the Contract Holder, or the lives of the Contract Holder and
his or her designated Beneficiary, or
(b) A period certain not extending beyond the life expectancy of the Contract
Holder or the joint and last survivor expectancy of the Contract Holder and
his or her designated Beneficiary.
Periodic payments must be made at intervals of no longer than one year. In
addition, payments made as an annuity must be either nonincreasing of they may
increase only as provided in Section 1.401(a)(9)-1 of the Proposed Income Tax
Regulations.
Life expectancy is computed by use of the expected return multiples in Tables V
and VI of Section 1.72-9 of the Income Tax Regulations. Life expectancy for
distributions under an Annuity option may not be recalculated.
I-MP1IRA(11/97)
<PAGE>
Payment of Death Benefit. Section 3.12 is deleted in its entirety. The death
benefit amount is determined in accordance with the provisions of Sections 3.11
and 3.06 At the death of the Contract Holder:
(a) If the Contract Holder dies on or after the date distribution of his or
her interest has begun, the remaining portion of such interest, if any,
will continue to be distributed at least as rapidly as under the method
of distribution being used prior to the Contract Holder's death.
(b) If the Contract Holder dies before distribution of his or her interest
begins, the death benefit payable to the Beneficiary will be distributed
no later than December 31 of the calendar year which contains the fifth
anniversary of the date of the Contract Holder's death, except to the
extent that an election is made to receive a distribution in accordance
with (i) or (ii) below.
(i) Distributions to the Beneficiary may be made in installments over
the life of the Beneficiary or over a period not extending beyond
the life expectancy of the Beneficiary, commencing no later than
December 31 of the calendar year immediately following the
calendar year in which the Contract Holder died.
(ii) If the Beneficiary is the Contract Holder's surviving spouse, and
distributions are to be made in accordance with (i) above,
distributions must begin on or before the later of December 31 of
the calendar year immediately following the calendar year in which
the Contract Holder died or December 31 of the calendar year in
which the Contract Holder would have attained age 70-1/2.
If the Contract Holder dies before Annuity payments begin, a spousal Beneficiary
may elect an Annuity option, a systematic distribution option, a lump sum
payment or to treat the Account as his or her own IRA. The election to treat the
Account as his or her own IRA will be deemed to have been made if such surviving
spouse makes a rollover to or from such Account, or fails to elect to receive a
distribution in accordance with (b) above.
Life expectancy is computed by use of the expected return multiples in Tables V
and VI of Section 1.72-9 of the Income Tax Regulations. Life expectancies for
distributions under an Annuity option may not be recalculated.
Distributions under this section are considered to have begun if distributions
are made on account of the Contract Holder reaching the required beginning date
or if prior to the required beginning date distributions irrevocably commence
over a period permitted and in an Annuity option acceptable under Section
1.401(a)(9) of the Proposed Income Tax Regulations.
Annual Reports. Aetna will furnish annual calendar year reports concerning the
status of the Contract Holder's Account.
Termination of Account. Upon 90 days written notice to the Holder, Aetna may
terminate the Contract Holder's Account if no Purchase Payment(s) have been
received for two full consecutive contract years and the paid-up Annuity benefit
at maturity would be less than $20 per month.
Right to Cancel. The Contract Holder may cancel the contract within 10 days of
receiving it by returning it to Aetna or to the person from whom it was
purchased. Within seven days from the cancellation request, Aetna will return
all the Contract Holder's Purchase Payment(s).
If the source of the Purchase Payment(s) was a rollover from a contract issued
by Aetna or one of its affiliates in which the Surrender Fee was waived or
reduced, then the Purchase Payment(s) will be restored to the predecessor
contract.
I-MP1IRA(11/97)
<PAGE>
Surrender Fee. Section 3.14 is amended to add the following item (I). "(I) As a
Purchase Payment for a Roth Individual Retirement Annuity, issued by Aetna or
one of its affiliates, that gives credit for time spent in the predecessor
contract in applying the surrender fee.
Endorsed and made a part of the Contract as of the Effective Date.
/s/ Thomas J. McInerney
Thomas J. McInerney, President
Aetna Life Insurance and Annuity Company
I-MP1IRA(11/97)
Contract Schedule I
Accumulation Period
Separate Account
- --------------------------------------------------------------------------------
Separate Account: Variable Annuity Account B
Charges to Separate A daily charge is deducted from any portion of
Account: the Current Value allocated to the Separate
Account. The deduction is the daily equivalent
of the annual effective percentage shown in the
following chart:
Administrative Charge [0.15%]
Mortality Risk Charge [0.35%]
Expense Risk Charge [0.75%]
----
Total Separate Account
Charges [1.25%]
ALIAC Guaranteed Account (AG Account)
- --------------------------------------------------------------------------------
Minimum Guaranteed [3.0%] (effective annual rate of return)
Interest Rate:
Separate Account and AG Account
- --------------------------------------------------------------------------------
Transfers: An unlimited number of Transfers are allowed
during the Accumulation Period. Aetna allows
[12] free Transfers in any calendar year.
Thereafter, Aetna reserves the right to charge
[$10] for each subsequent Transfer.
Maintenance Fee: The annual Maintenance Fee is [$30]. If the
Account's Current Value is [$50,000] or more on
the date the Maintenance Fee is to be deducted,
the Maintenance Fee is [$0].
Annual Waiver of As provided in 3.14 (d), the amount that may be
Surrender Fee: withdrawn without a surrender fee cannot exceed
[10%] of the Current Value calculated on the
date Aetna receives a surrender request in good
order at its Home Office.
G-MP1(11/97)-5 1
<PAGE>
Contract Schedule I (Continued)
Accumulation Period
Separate Account and AG Account (Cont'd)
- --------------------------------------------------------------------------------
Surrender Fee: For each surrender, the Surrender Fee will be
determined as follows:
Surrender Fee
Length of Time from (as percentage of
Account Effective Date Net Purchase Payment)
---------------------- ---------------------
[Less than 1 year 5%]
[1 year but less than 2 4%]
[2 years but less than 3 3%]
[3 years but less than 4 2%]
[4 years but less than 5 1%]
[5 years or more 0%]
If an Account is established as a rollover from
another Aetna contract, the Surrender Fee will
be determined according to the effective date
of the account under such predecessor contract.
Systematic Withdrawal The specified payment or specified percentage
Option (SWO): may not be greater than [10%] of the Account's
Current Value at time of election.
See 1. GENERAL DEFINITIONS for explanations.
G-MP1(11/97)-5 2
Contract Schedule I
Accumulation Period
Separate Account
- --------------------------------------------------------------------------------
Separate Account: Variable Annuity Account B
Charges to Separate A daily charge is deducted from any portion
Account: of the Current Value allocated to the Separate
Account. The deduction is the daily equivalent
of the annual effective percentage shown in the
following chart:
Administrative Charge [0.15%]
Mortality Risk Charge [0.35%]
Expense Risk Charge [0.75%]
----
Total Separate Account
Charges [1.25%]
ALIAC Guaranteed Account (AG Account)
- --------------------------------------------------------------------------------
Minimum Guaranteed [3.0%] (effective annual rate of return)
Interest Rate:
Separate Account and AG Account
- --------------------------------------------------------------------------------
Transfers: An unlimited number of Transfers are allowed
during the Accumulation Period. Aetna allows
[12] free Transfers in any calendar year.
Thereafter, Aetna reserves the right to charge
[$10] for each subsequent Transfer.
Maintenance Fee: The annual Maintenance Fee is [$30]. If the
Account's Current Value is [$50,000] or more on
the date the Maintenance Fee is to be deducted,
the Maintenance Fee is [$0].
Annual Waiver of As provided in 3.14 (d), the amount that may be
Surrender Fee: withdrawn without a surrender fee cannot exceed
[10%] of the Current Value calculated on the
date Aetna receives a surrender request in good
order at its Home Office.
I-MP1(11/97)-5 1
<PAGE>
Contract Schedule I (Continued)
Accumulation Period
Separate Account and AG Account (Cont'd)
- --------------------------------------------------------------------------------
Surrender Fee: For each surrender, the Surrender Fee will be
determined as follows:
Surrender Fee
Length of Time from (as percentage of
Account Effective Date Net Purchase Payment)
---------------------- ---------------------
[Less than 1 year 5%]
[1 year but less than 2 4%]
[2 years but less than 3 3%]
[3 years but less than 4 2%]
[4 years but less than 5 1%]
[5 years or more 0%]
If an Account is established as a rollover from
another Aetna contract, the Surrender Fee will
be determined according to the effective date
of the account under such predecessor contract.
Systematic Withdrawal The specified payment or specified percentage
Option (SWO): may not be greater than [10%] of the Account's
Current Value at time of election.
See 1. GENERAL DEFINITIONS for explanations.
I-MP1(11/97)-5 2
<TABLE>
<CAPTION>
[Aetna Logo] Aetna Life Insurance & Annuity Company Aetna Marathon Plus
Home Office: 151 Farmington Avenue Group Variable Annuity
Hartford, Connecticut 06156-8022 Contract Application
<S> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Contract 1. Name of Contract Holder
Holder (Firm)
Information ---------------------------------------------------------------------------------------------------------------
Please print 2. Address
(Address)
---------------------------------------------------------------------------------------------------------------
City State Zip Code
(City) (State) (Zip)
---------------------------------------------------------------------------------------------------------------
3. Tax Identification Number
(Tax Id)
---------------------------------------------------------------------------------------------------------------
4. Contract Effective Date
(Effective Date)
---------------------------------------------------------------------------------------------------------------
5. Type of Contract: [X] Nonqualified [X] IRA Rollover (IRC Section 408)
---------------------------------------------------------------------------------------------------------------
6. Special Requests
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
7. Will this contract change or replace any existing life insurance or annuity contract? |_| Yes {X} No
If yes, please provide carrier name, policy number and proposed cancellation date.
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
I understand that (1) when based on the investment experience of a Separate Account, all payments and contract
values are variable and are not guaranteed as to fixed dollar amount; and that (2) some payments made from the
ALIAC Guaranteed Account prior to the completion of a guaranteed term are subject to Market Value Adjustment
which may result in a positive or negative adjustment to amounts payable. The length of these terms vary from
one to ten years.
I acknowledge receipt of the Aetna Marathon Plus Variable Annuity Contract Prospectus dated _________ and all
current prospectuses pertaining to the variable investment options under the contract.
[_] Check here to receive a Statement of Additional Information.
Dated at ______________________ this ____ day of _______________ 19____.
City and State
---------------------------------------------------------------------------------------------------------------
Contract Holder Title Witness
---------------------------------------------------------------------------------------------------------------
Agent's Note Do you have any reason to believe any existing life insurance or annuity contracts will be modified or
replaced if this contract is issued? [_] Yes [_] No
---------------------------------------------------------------------------------------------------------------
Signature of Agent
---------------------------------------------------------------------------------------------------------------
Home Office Use Errors and omissions may be corrected by a company agent number but no change in plan, classification, Only
amount, or extra benefits can be made without written consent of the Contract Holder.
Accepted_________________
</TABLE>
MPAPPNY(1/96)
[AETNA LETTERHEAD]
[AETNA LOGO]
December 16, 1997 151 Farmington Avenue
Hartford, CT 06156
Julie E. Rockmore
Counsel
Law Division, RE4A
Investments & Financial Services
(860) 273-4686
Fax: (860) 273-8340
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Re: Aetna Life Insurance and Annuity Company and its Variable Annuity Account B
Post-Effective Amendment No. 32 to Registration Statement on Form N-4
Prospectus Title: Aetna Marathon Plus - Group and Individual Deferred
Variable Annuity Contracts
File Nos. 33-34370* and 811-2512
Dear Sir or Madam:
The undersigned serves as counsel to Aetna Life Insurance and Annuity Company, a
Connecticut life insurance company (the "Company"). It is my understanding that
the Company, as depositor, has registered an indefinite amount of securities
(the "Securities") under the Securities Act of 1933 (the "Securities Act") as
provided in Rule 24f-2 under the Investment Company Act of 1940 (the "Investment
Company Act").
In connection with this opinion, I have reviewed the N-4 Registration Statement,
as amended to the date hereof, and this Post-Effective Amendment No. 32. I have
also examined originals or copies, certified or otherwise identified to my
satisfaction, of such documents, trust records and other instruments I have
deemed necessary or appropriate for the purpose of rendering this opinion. For
purposes of such examination, I have assumed the genuineness of all signatures
on original documents and the conformity to the original of all copies.
I am admitted to practice law in Connecticut, and do not purport to be an expert
on the laws of any other state. My opinion herein as to any other law is based
upon a limited inquiry thereof which I have deemed appropriate under the
circumstances.
- --------
* Pursuant to Rule 429(a) under the Securities Act of 1933, Registrant has
included a combined prospectus under this Registration Statement which
includes all the information which would currently be required in a
prospectus relating to the following earlier Registration Statement:
33-87932.
<PAGE>
Based upon the foregoing, and, assuming the Securities are sold in accordance
with the provisions of the prospectus, I am of the opinion that the Securities
being registered will be legally issued and will represent binding obligations
of the Company.
I consent to the filing of this opinion as an exhibit to the Registration
Statement.
Sincerely,
/s/ Julie E. Rockmore
Julie E. Rockmore
