As filed with the Securities and Exchange Registration No. 33-75980*
Commission on August 19, 1997 Registration No. 811-2513
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
- --------------------------------------------------------------------------------
POST-EFFECTIVE AMENDMENT NO. 8 TO
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
and Amendment to
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
- --------------------------------------------------------------------------------
Variable Annuity Account C 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:
immediately upon filing pursuant to paragraph (b) of Rule 485
- ----------
X on August 21, 1997 pursuant to paragraph (b) of Rule 485
- ----------
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, Registrant has
registered an indefinite number of securities under the Securities Act of 1933.
Registrant filed a Rule 24f-2 Notice for the fiscal year ended December 31, 1996
on February 28, 1997.
*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 prospectuses relating
to the securities covered by Registration Statement No. 33-75984.
<PAGE>
VARIABLE ANNUITY ACCOUNT C
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
LOCATION - PROSPECTUS DATED
MAY 1, 1997 AND AS AMENDED
FORM N-4 BY SUPPLEMENT DATED
ITEM NO. PART A (PROSPECTUS) AUGUST 21, 1997
<S> <C> <C>
1 Cover Page ........................................ Cover Page, and as amended
2 Definitions ....................................... Definitions
3 Synopsis .......................................... Prospectus Summary; Fee Table, and as Amended
4 Condensed Financial Information ................... Condensed Financial Information
5 General Description of Registrant,
Depositor, and Portfolio Companies ................ The Company; Variable Annuity Account C; The
Funds, and as amended
6 Deductions and Expenses ........................... Charges and Deductions; The Contract - Distribution
7 General Description of Variable Annuity Contracts.. Contract Rights; Miscellaneous
8 Annuity Period .................................... Annuity Period
9 Death Benefit ..................................... Death Benefit
10 Purchases and Contract Value ...................... The Contract;
Determining Contract Value
11 Redemptions ....................................... Contract Rights - Withdrawals; Contract
Rights - Right to Cancel
12 Taxes ............................................. Tax Status
13 Legal Proceedings ................................. Miscellaneous - Legal Proceedings
14 Table of Contents of the Statement of
Additional Information ............................ Statement of Additional Information -
Table of Contents
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LOCATION - STATEMENT OF
FORM N-4 ADDITINAL INFORMATION
ITEM NO. PART B (STATEMENT OF ADDITIONAL INFORMATION) DATED MAY 1, 1997
<S> <C> <C>
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 Data Quotation
22 Annuity Payments ................................... Annuity Payments
23 Financial Statements ............................... Financial Statements
</TABLE>
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 and the Statement of Additional Information are incorporated into
Part A and Part B of this Post-Effective Amendment No.8, respectively, by
reference to Post-Effective Amendment No. 7 to the Registration Statement on
Form N-4 (File No. 33-75980), as filed electronically on April 14, 1997.
<PAGE>
Supplement to Prospectus Dated May 1, 1997
Aetna Life Insurance and Annuity Company
Variable Annuity Account B
Variable Annuity Account C
The prospectus dated May 1, 1997 is amended as follows:
Cover:
The following Funds, to the extent they are listed in your prospectus, will be
replaced with the designated Substitute Funds after the close of business of the
New York Stock Exchange on November 26, 1997:
<TABLE>
<CAPTION>
Replaced Fund Substitute Fund
<S> <C>
Scudder Variable Life Investment Fund-- Portfolio Partners Scudder International Growth Portfolio
International Portfolio Class A Shares
Alger American Small Capitalization Portfolio Portfolio Partners MFS Emerging Equities Portfolio
American Century VP Capital Appreciation Portfolio Partners MFS Research Growth Portfolio
(Formerly TCI Growth)
Neuberger & Berman AMT Growth Portfolio Portfolio Partners MFS Value Equity Portfolio
Alger American Growth Portfolio Portfolio Partners T. Rowe Price Growth Equity Portfolio
Janus Aspen Short-Term Bond Portfolio Aetna Variable Encore Fund (money market)
Franklin Government Securities Trust Aetna Income Shares (bond)
</TABLE>
The following Fund, if previously available in your prospectus, will be removed
from the list of Funds as of the close of business of the New York Stock
Exchange on November 26, 1997, or as soon thereafter as all participants
have redirected their allocations to other investment options (Closing
Date), since it will be closed to new investments after that date (except
reinvested dividends and capital gains earned on amounts already invested in
the Fund through the Separate Account and loan repayments automatically
deposited into the Fund pursuant to the Company's loan repayment
procedures).
Closed
Lexington Natural Resources Trust
SUBJECT TO COMPLETION OR AMENDMENT
INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A
REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY
OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES
EFFECTIVE. THIS PROSPECTUS SUPPLEMENT SHALL NOT CONSTITUTE AN OFFER TO SELL OR
THE SOLICITATION OF ANY OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE
SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE
UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY
SUCH STATE.
The Date of this Supplement is August 21, 1997
XFUNDS-97
<PAGE>
Fee Table--2
The table under Annual Expenses of the Funds is amended by deleting the Replaced
Funds after November 26, 1997 and the Closed Fund after the Closing Date and
adding the following Substitute Funds:
<TABLE>
<CAPTION>
Investment
Advisory Fees Other Expenses
(after expense (after expense Total Annual
reimbursement) reimbursement) Fund Expenses
<S> <C> <C> <C>
Portfolio Partners Scudder International Growth Portfolio .80% .20% 1.00%(1)
Portfolio Partners MFS Emerging Equities Portfolio .70%(2) .13% .83%(1)
Portfolio Partners MFS Research Growth Portfolio .70%(2) .15% .85%(1)
Portfolio Partners MFS Value Equity Portfolio .65% .25% .90%(1)
Portfolio Partners T. Rowe Price Growth Equity Portfolio .60% .15% .75%(1)
</TABLE>
(1) The Company has agreed to reimburse the Fund for expenses and/or waive its
fees so that the aggregate expenses will not exceed this amount through
April 30, 1999. Without such reimbursements or waivers, Total Annual Fund
Expenses are estimated to be as follows: 1.00% for the Scudder International
Growth Portfolio; .87% for the MFS Emerging Equities Portfolio; .92% for the
MFS Research Growth Portfolio; .90% for the MFS Value Equity Portfolio; and
.79% for the T. Rowe Price Growth Equity Portfolio.
(2) The advisory fee is .70% of the first $500 million in assets and .65% on the
excess.
Fee Table--3 The Hypothetical Illustrations (Example) in the Fee Table are
amended by deleting all information with respect to the Replaced Funds for
periods after November 26, 1997, and with respect to the Closed Fund after
the Closing Date and adding the following:
<TABLE>
<CAPTION>
EXAMPLE A EXAMPLE B
If you withdraw the entire Account Value at If you do not withdraw the entire Account
the end of the periods shown, you would pay Value, or if you annuitize at the end of the
the following expenses, including any periods shown, you would pay the following
applicable deferred sales charge: expenses (no deferred sales charge is reflected):
1 year 3 years 5 years 10 years 1 year 3 years 5 year 10 years
------ ------- ------- -------- ------ ------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Portfolio Partners Scudder
International Growth Portfolio $78 $136 $197 $298 $27 $82 $140 $298
Portfolio Partners MFS Emerging
Equities Portfolio $76 $131 $189 $281 $25 $77 $132 $281
Portfolio Partners MFS Research
Growth Portfolio $77 $132 $189 $283 $25 $78 $133 $283
Portfolio Partners MFS Value
Equity Portfolio $77 $133 $192 $288 $26 $79 $135 $288
Portfolio Partners T. Rowe Price
Growth Equity Portfolio $76 $129 $185 $273 $24 $75 $128 $273
</TABLE>
The Examples above assume that a mortality and expense risk charge of 1.25% on
an annual basis, an administrative expense charge of 0.25% on an annual basis
and an annual maintenance fee of $30 are assessed. Example A assumes that a
deferred sales charge of 5% of the Account Value at the end of years 1, 3 and 5,
and 0% at the end of year 10, is assessed. (Charges under your particular
Contract may be lower. Please refer to Fee Table--1 of your Prospectus.)
<PAGE>
Prospectus, Page 1
In the Section Investment Options, the Substitute Funds will take the place of
the Replaced Funds after the close of business of the New York Stock
Exchange on November 26, 1997. Any amounts allocated to the Replaced Funds
will automatically be allocated to the Substitute Funds after that date.
Information about the Closed Fund will be deleted after the Closing Date,
since it will not be eligible for the deposit of any new payments or
transfers from other Funds. The following will be added:
Portfolio Partners Scudder International Growth Portfolio seeks long-term growth
of capital primarily through a diversified portfolio of marketable foreign
equity securities.
Portfolio Partners MFS Emerging Equities Portfolio seeks long-term growth of
capital by investing primarily in common stocks issued by companies that its
subadviser believes are early in their life cycle but which have the potential
to become major enterprises (emerging growth companies).
Portfolio Partners MFS Research Growth Portfolio seeks long-term growth of
capital and future income by investing primarily in common stocks or securities
convertible into common stocks issued by companies that the subadviser believes
to possess better-than-average prospects for long-term growth, and, to a lesser
extent, in income-producing securities including bonds and preferred stock.
Portfolio Partners MFS Value Equity Portfolio seeks capital appreciation by
investing primarily in common stocks.
Portfolio Partners T. Rowe Price Growth Equity Portfolio seeks long-term growth
of capital and, secondarily, seeks to increase dividend income by investing
primarily in common stocks issued by a diversified group of well-established
growth companies.
Aetna Life Insurance and Annuity Company serves as the investment adviser to
each Portfolio. Scudder, Stevens & Clark, Inc. serves as the subadviser to the
Scudder International Growth Portfolio; Massachusetts Financial Services
Company serves as the subadviser to the MFS Emerging Equities, MFS Research
Growth and MFS Value Equity Portfolios; and T. Rowe Price Associates, Inc.
serves as the subadviser to the T. Rowe Price Growth Equity Portfolio.
Prospectus--"Transfer" Section
The Section in the prospectus discussing Transfers, is amended by adding the
following to the Subsections on Dollar Cost Averaging (if available):
Amounts being transferred into a Replaced Fund will automatically be transferred
into the Substitute Fund after November 26, 1997, unless you have been
dollar cost averaging between the Aetna Variable Encore Fund and the Janus
Aspen Short-Term Bond Portfolio (in either direction). In that event, or if
amounts are to be transferred into a Closed Fund, your Dollar Cost Averaging
will automatically terminate after November 26, 1997 even if the Closed Fund
has not closed because all participants have not redirected their
allocations to other investment options. To continue with Dollar Cost
Averaging after that date, you must select Funds from the then-current list
of available Funds.
XFUNDS-97
<PAGE>
VARIABLE ANNUITY ACCOUNT C
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 C:
- 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
- Independent Auditors' Report
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
(b) Exhibits
(1) Resolution of the Board of Directors of Aetna Life Insurance and
Annuity Company establishing Variable Annuity Account C(1)
(2) Not applicable
(3.1) Form of Broker-Dealer Agreement(2)
(3.2) Alternative Form of Wholesaling Agreement and Related Selling
Agreement(2)
(4.1) Form of Variable Annuity Contract (G-CDA-HF)(3)
(4.2) Form of Variable Annuity Contract (I-CDA-HD)(4)
(4.3) Form of Variable Annuity Contract (GIH-CDA-HB)(5)
(4.4) Form of Variable Annuity Contract (IMT-CDA-HO)(5)
(4.5) Form of Variable Annuity Contract (G-CDA-HD)(6)
(4.6) Form of Variable Annuity Contract (GIP-CDA-HB)
(4.7) Form of Endorsement (EGAAE-IO) to Contract GIH-CDA-HB(5)
(4.8) Form of Endorsement (EGISA-IA) to Contracts GIH-CDA-HB and
IMT-CDA-HO(5)
(4.9) Form of Endorsement (EVPE-IC) to Contracts GIH-CDA-HB and
IMT-CDA-HO(5)
(4.10) Form of Endorsement (EGE2MF5-IB) to Contract GIH-CDA-HB(5)
<PAGE>
(4.11) Form of Endorsement (EGAWA-HC) to Contracts GIH-CDA-HB and
GIP-CDA-HB(5)
(4.12) Form of Endorsement (EGAWGU-HC) to Contracts GIH-CDA-HB and
GIP-CDA-HB(5)
(4.13) Form of Endorsement (ETCI-IB) to Contracts GIH-CDA-HB, GIP-CDA-HB
and IMT-CDA-HO(5)
(4.14) Form of Endorsement (EGP-MDRPM-96) to Contracts GIH-CDA-HB,
GIP-CDA-HB(5)
(4.15) Form of Endorsement (EGP-MDRHF-96) to Contract G-CDA-HF(5)
(4.16) Form of Endorsement (EGP-MDRHD-96) to Contract G-CDA-HD(5)
(4.17) Form of Endorsement (EIP-MDRHD-96) to Contract I-CDA-HD(5)
(4.18) Form of Endorsement (EIP-MDRPM-96) to Contract IMT-CDA-HO(5)
(4.19) Form of Endorsement (ESVB-HB) to Contracts IMT-CDA-HO and
GIH-CDA-HB(5)
(4.20) Form of Endorsement (EUSR-HC) to Contract IMT-CDA-HO(5)
(4.21) Form of Endorsement (EGAWI-HC) to Contract IMT-CDA-HO(5)
(4.22) Form of Endorsement (ERPH-HB) to Contract IMT-CDA-HO(5)
(4.23) Form of Endorsement (EIECVT-HI) to Contract IMT-CDA-HO(5)
(4.24) Form of Endorsement (ESF-GPHIMT-HD) to Contracts IMT-CDA-HO and
GIH-CDA-HB(5)
(4.25) Form of Endorsement (EEIMEDH-IB) to Contract IMT-CDA-HO(5)
(4.26) Form of Endorsement (EEGEDP-IB) to Contract GIH-CDA-HB(5)
(4.27) Form of Endorsement (EPUMF-IC) to Contract GIH-CDA-HB(5)
(4.28) Form of Endorsement (EGECVT-HI) to Contract GIH-CDA-HB(5)
(4.29) Form of Endorsement (ERPH-HB) to Contract GIH-CDA-HB(5)
(4.30) Form of Endorsement (EEIMEDH-IB) to Contract GIH-CDA-HB(5)
(4.31) Form of Endorsement (EPAMAR-HD) to Contracts GIH-CDA-HB and
GIP-CDA-HB(5)
(4.32) Form of Endorsement (EFUND97) to Contract IMT-CDA-HO(3)
(5.1) Form of Variable Annuity Contract Application (300-GPP-10)
(5.2) Form of Variable Annuity Contract Application (200-IMC-HG)(5)
(6.1) Certificate of Incorporation and By-Laws of Aetna Life Insurance and
Annuity Company(7)
(6.2) Amendment of Certificate of Incorporation of Aetna Life Insurance and
Annuity Company(4)
(7) Not applicable
(8) Not applicable
(9) Opinion and Consent of Counsel
(10) Consent of Independent Auditors
(11) Not applicable
(12) Not applicable
(13) Schedule for Computation of Performance Data(8)
(14) Not applicable
<PAGE>
(15.1) Powers of Attorney(9)
(15.2) Authorization for Signatures(2)
(27) Financial Data Schedule
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.
2. 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.
3. 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.
4. 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.
5. Incorporated by reference to Post-Effective Amendment No. 6 to Registration
Statement on Form N-4 (File No. 33-75980), as filed electronically on
February 12, 1997.
6. Incorporated by reference to Post-Effective Amendment No. 6 to Registration
Statement on Form N-4 (File No. 33-75982), as filed electronically on April
22, 1996.
7. 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.
8. Incorporated by reference to Pre-Effective Amendment No. 1 to Registration
Statement on Form N-4 (File No. 33-75990), as filed on April 25, 1994.
9. Incorporated by reference to Post-Effective Amendment No. 8 to Registration
Statement on Form S-6 (File No. 33-76004), as filed electronically on July
14, 1997.
<PAGE>
Item 25. Directors and Officers of the Depositor
Name and Principal
Business Address* Positions and Offices with Depositor
- ---------------- ------------------------------------
Daniel P. Kearney 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 Vice President
Glen Salow Director and Vice President
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
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 25 of Post-Effective Amendment No.
22 to the Registration Statement on Form N-1A (File No. 33-41694), as filed
electronically on July 9, 1997.
Item 27. Number of Contract Owners
As of June 30, 1997, there were 615,817 individuals holding interests in
variable annuity contracts funded through Variable Annuity Account C.
<PAGE>
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 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 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 B 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).
<PAGE>
(b) See Item 25 regarding the Depositor.
(c) Compensation as of December 31, 1996:
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5)
Name of Net Underwriting Compensation
Principal Discounts and on Redemption Brokerage
Underwriter Commissions or Annuitization Commissions Compensation*
- ----------- ---------------- ---------------- ----------- ------------
<S> <C> <C>
Aetna Life $1,325,661 $96,924,599
Insurance and
Annuity
Company
</TABLE>
* 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 C.
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;
<PAGE>
(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
(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) 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.
(e) 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 C of Aetna Life Insurance and
Annuity Company, certifies that it meets the requirements of Securities Act Rule
485(b) for effectiveness of this Post-Effective Amendment No. 8 to its
Registration Statement on Form N-4 (File No. 33-75980) and has caused this
Post-Effective Amendment No. 8 to its Registration Statement on Form N-4 (File
No. 33-75980) to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Hartford, State of Connecticut, on the 19th day of
August, 1997.
VARIABLE ANNUITY ACCOUNT C OF AETNA
LIFE INSURANCE AND ANNUITY COMPANY
(Registrant)
By: AETNA LIFE INSURANCE AND
ANNUITY COMPANY
(Depositor)
By: Daniel P. Kearney*
-----------------
Daniel P. Kearney
President
As required by the Securities Act of 1933, this Post-Effective Amendment No.
8 to the Registration Statement on Form N-4 (File No. 33-75980) has been signed
by the following persons in the capacities and on the dates indicated.
<TABLE>
<CAPTION>
Signature Title Date
- --------- ----- ----
<S> <C> <C>
Daniel P. Kearney* Director and President )
- ----------------------
Daniel P. Kearney (principal executive officer) )
)
Timothy A. Holt* Director, Senior Vice President and ) August
- ----------------------
Timothy A. Holt Chief Financial Officer ) 19, 1997
)
Christopher J. Burns* Director )
- ----------------------
Christopher J. Burns )
)
J. Scott Fox* Director )
- ----------------------
J. Scott Fox )
)
John Y. Kim* Director )
- ----------------------
John Y. Kim )
<PAGE>
Shaun P. Mathews* Director )
- -----------------------
Shaun P. Mathews )
)
Glen Salow* Director )
- -----------------------
Glen Salow )
)
Deborah Koltenuk* Vice President and Treasurer, Corporate Controller )
- ------------------------
Deborah Koltenuk )
By: /s/ Julie E. Rockmore
--------------------
Julie E. Rockmore
*Attorney-in-Fact
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY ACCOUNT C
EXHIBIT INDEX
Exhibit No. Exhibit Page
---------- ------- ----
<S> <C> <C>
99-B.1 Resolution of the Board of Directors of Aetna Life Insurance and *
Annuity Company establishing Variable Annuity Account C
99-B.3.1 Form of Broker-Dealer Agreement *
99-B.3.2 Alternative Form of Wholesaling Agreement and Related Selling *
Agreement
99-B.4.1 Form of Variable Annuity Contract (G-CDA-HF) *
99-B.4.2 Form of Variable Annuity Contract (I-CDA-HD) *
99-B.4.3 Form of Variable Annuity Contract (GIH-CDA-HB) *
99-B.4.4 Form of Variable Annuity Contract (IMT-CDA-HO) *
99-B.4.5 Form of Variable Annuity Contract (G-CDA-HD) *
99-B.4.6 Form of Variable Annuity Contract (GIP-CDA-HB)
-------
99-B.4.7 Form of Endorsement (EGAAE-IO) to Contract GIH-CDA-HB *
99-B.4.8 Form of Endorsement (EGISA-IA) to Contracts GIH-CDA-HB *
and IMT-CDA-HO
99-B.4.9 Form of Endorsement (EVPE-IC) to Contracts GIH-CDA-HB *
and IMT-CDA-HO
99-B.4.10 Form of Endorsement (EGE2MF5-IB) to Contract *
GIH-CDA-HB
99-B.4.11 Form of Endorsement (EGAWA-HC) to Contract GIH-CDA-HB *
99-B.4.12 Form of Endorsement (EGAWGU-HC) to Contracts *
GIH-CDA-HB and GIP-CDA-HB
*Incorporated by reference
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit No. Exhibit Page
- ---------- ------- ----
<S> <C> <C>
99-B.4.13 Form of Endorsement (ETCI-IB) to Contracts GIH-CDA-HB, *
GIP-CDA-HB and IMT-CDA-HO
99-B.4.14 Form of Endorsement (EGP-MDRPM-96) to Contracts *
GIH-CDA-HB and GIP-CDA-HB
99-B.4.15 Form of Endorsement (EGP-MDRHF-96) to Contract *
G-CDA-HF
99-B.4.16 Form of Endorsement (EGP-MDRHD-96) to Contract *
G-CDA-HD
99-B.4.17 Form of Endorsement (EIP-MDRHD-96) to Contract *
I-CDA-HD
99-B.4.18 Form of Endorsement (EIP-MDRPM-96) to Contract *
IMT-CDA-HO
99-B.4.19 Form of Endorsement (ESVB-HB) to Contracts IMT-CDA-HO *
and GIH-CDA-HB
99-B.4.20 Form of Endorsement (EUSR-HC) to Contract IMT-CDA-HO *
99-B.4.21 Form of Endorsement (EGAWI-HC) to Contract IMT-CDA-HO *
99-B.4.22 Form of Endorsement (ERPH-HB) to Contract IMT-CDA-HO *
99-B.4.23 Form of Endorsement (EIECVT-HI) to Contract IMT-CDA-HO *
99-B.4.24 Form of Endorsement (ESF-GPHIMT-HD) to Contracts *
IMT-CDA-HO and GIH-CDA-HB
99-B.4.25 Form of Endorsement (EEIMEDH-IB) to Contract *
IMT-CDA-HO
99-B.4.26 Form of Endorsement (EEGEDP-IB) to Contract GIH-CDA-HB *
99-B.4.27 Form of Endorsement (EPUMF-IC) to Contract GIH-CDA-HB *
* Incorporated by reference
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit No. Exhibit Page
- ---------- ------- ----
<S> <C> <C>
99-B.4.28 Form of Endorsement (EGECVT-HI) to Contract GIH-CDA-HB *
99-B.4.29 Form of Endorsement (ERPH-HB) to Contract GIH-CDA-HB *
99-B.4.30 Form of Endorsement (EEIMEDH-IB) to Contract *
GIH-CDA-HB
99-B.4.31 Form of Endorsement (EPAMAR-HD) to Contracts *
GIH-CDA-HB and GIP-CDA-HB
99-B.4.32 Form of Endorsement (EFUND97) to Contract IMT-CDA-HO *
99-B.5.1 Form of Variable Annuity Contract Application (300-GPP-10) ---------
99-B.5.2 Form of Variable Annuity Contract Application (200-IMC-HG) *
99-B.6.1 Certificate of Incorporation and By-Laws of Depositor *
99-B.6.2 Amendment of Certificate of Incorporation of Depositor *
99-B.9 Opinion and Consent of Counsel ---------
99-B.10 Consent of Independent Auditors ---------
99-B.13 Schedule for Computation of Performance Data *
99-B.15.1 Power of Attorney *
99-B.15.2 Authorization for Signatures *
27 Financial Data Schedule ---------
* Incorporated by reference
</TABLE>
Aetna Life Insurance and Annuity Company
Home Office: 151 FARMINGTON AVE.
HARTFORD, CONNECTICUT 06156
(203) 273-0123
Herein called Aetna
Agrees to pay benefits as stated in this Contract.
DETAILS OF VARIABLE FEATURES OF THIS CONTRACT ARE IN PARTS III AND IV.
THIS CONTRACT MAY NOT BE SUITABLE IF ONLY ONE (1) LARGE DEPOSIT IS MADE.
RIGHT TO CANCEL
The Owner may cancel this Contract within 10 days of receiving it, by sending a
written notice to Aetna at the above address or to the agent from whom it was
purchased. Aetna will return all payments made for this Contract within 7 days
after it receives the notice of cancellation and this Contract.
This page, following pages, and the application, make up the entire Contract.
Signed at Hartford, Connecticut on the Effective Date.
/s/ Stephen B. Middlebrook /s/ William O. Bailey
Secretary President
GROUP VARIABLE OR FIXED DEPOSIT ADMINISTRATION CONTRACT
NON-PARTICIPATING
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT,
WHEN BASED ON INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT,
ARE VARIABLE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT.
GIP-CDA-HB
<PAGE>
SPECIFICATIONS
PLAN
OWNER
GROUP CONTRACT NO.
EFFECTIVE DATE
THIS CONTRACT IS DELIVERED IN
AND IS SUBJECT TO THE LAWS OF THAT JURISDICTION
Deduction from Deposit(s) - The amount of the Net Deposit(s) applied to this
Contract will be the deposit(s) received by Aetna minus a deduction for premium
taxes, if any. (See section 3.01.)
Guaranteed Interest Rate - There is a guaranteed interest rate for amounts held
in the General Account. Aetna may add interest daily at any higher rate. (See
sections 3.04 and 4.01.)
Surrender Fee - There will be a charge deducted for early surrender. (See
section 3.13.)
Deductions From The Separate Account And The Funds - Total deductions equal 1.5%
on an annual basis. Once Annuity payments begin, if the dollar amount of the
Variable Annuity payments is not to decrease Aetna must earn a gross return on
the assets of the Separate Account of: (a) 5% on an annual basis if an assumed
net return rate of 3.5% is chosen; or (b) 6.5% on an annual basis if an assumed
net return rate of 5% is chosen.
This Contract is a legal contract between the Owner and Aetna.
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.
GIP-CDA-HB
<PAGE>
TABLE OF CONTENTS
Page
I. GENERAL DEFINITIONS
1.01 Annuitant......................................................... 5
1.02 Annuity........................................................... 5
1.03 Contract Year..................................................... 5
1.04 Fixed Annuity..................................................... 5
1.05 Fund(s)........................................................... 5
1.06 General Account................................................... 5
1.07 Participant....................................................... 5
1.08 Plan.............................................................. 5
1.09 Separate Accounts................................................. 5
1.10 Valuation Period.................................................. 5
1.11 Variable Annuity.................................................. 5
II. GENERAL PROVISIONS
2.01 Contract, Change of Contract...................................... 6
2.02 Incontestability.................................................. 6
2.03 Control of Contract and Individual Accounts....................... 6
2.04 Payments.......................................................... 6
2.05 Individual Certificates........................................... 6
2.06 Designation of Beneficiary........................................ 7
2.07 Misstatements and Adjustments..................................... 7
2.08 State Laws........................................................ 7
2.09 Replacement of Fund(s)............................................ 7
2.10 Grace Period...................................................... 7
2.11 Non-Participating Contract........................................ 7
III. DEPOSIT, RESERVE, AND SURRENDER PROVISIONS
3.01 Net Deposit(s).................................................... 8
3.02 Allocated Contract - Individual Accounts.......................... 8
3.03 Unallocated Contract.............................................. 8
3.04 Guaranteed Interest Rate - General Account........................ 9
3.05 Record Units - Separate Account................................... 9
3.06 Investment Increment Factors - Separate Account................... 9
3.07 Record Unit Value - Separate Account.............................. 9
3.08 Contract Reserve.................................................. 10
3.09 Active Life Fund.................................................. 10
3.10 Transfer of Contract Reserves..................................... 10
3.11 Notice to the Owner............................................... 10
3.12 Sum Payable at Death (Before Annuity Payments Start).............. 11
3.13 Surrender Value................................................... 11
IV. ANNUITY PROVISIONS
4.01 Choices to be Made................................................ 13
4.02 Special Terms Under Annuity Options............................... 13
4.03 Other Terms of Annuity Options.................................... 13
4.04 Death of Annuitant/Beneficiary.................................... 14
4.05 Fund(s) Annuity Units - Separate Account.......................... 14
4.06 Fund(s) Annuity Unit Value - Separate Account..................... 14
4.07 Annuity Options................................................... 15
3
GIP-CDA-HB
<PAGE>
GIP-CDA-HB
4
<PAGE>
I. GENERAL DEFINITIONS
1.01 ANNUITANT - A Participant or beneficiary on whose life an Annuity has
been effected under this Contract.
1.02 ANNUITY - Payment of an income:
(a) for the life of one or two people;
(b) for a stated period, or amount; or
(c) for some mix of (a) and (b).
1.03 CONTRACT YEAR - A period of 12 months beginning on the Effective Date or
any anniversary of the Effective Date.
1.04 FIXED ANNUITY - An Annuity of a fixed dollar amount paid from the General
Account.
1.05 FUND(S) - The open-end management investment companies (mutual funds)
registered under the Investment Company Act of 1940 and made available
by Aetna.
1.06 GENERAL ACCOUNT - The Account which holds the assets of Aetna, other than
those assets of Aetna in the Separate Accounts. Reserves for a Fixed
Annuity are held in the General Account.
1.07 PARTICIPANT - A person for whom benefits are being funded under this
Contract.
1.08 PLAN - The employee benefit plan identified on the Specifications page.
The term includes all written documents describing the Plan. The Plan is
not a part of this Contract. Aetna is not bound by terms of the Plan.
1.09 SEPARATE ACCOUNTS - Accounts set up by Aetna under the Connecticut
Insurance Laws. Assets for this class of variable contracts are set apart
from other assets of Aetna. Reserves for a Variable Annuity are held in a
Separate Account and invested in shares of Fund(s).
1.10 VALUATION PERIOD - The period of time from the end of one business day to
the end of the next business day.
1.11 VARIABLE ANNUITY - An Annuity of a varying dollar amount paid from the
Separate Account.
5
GIP-CDA-HB
<PAGE>
II. GENERAL PROVISIONS
2.01 Contract, Change of Contract
This Contract constitutes the entire legal relationship between Aetna and
the Owner. Only an authorized Officer of Aetna may change any of the
terms of this Contract. Aetna will notify the Owner in writing 30 days in
advance of the effective date of any change. Any change will not affect
the amount or terms of any Annuity which begins prior to such change. Any
change below will only apply to deposits made on behalf of Participants
who become covered under this Contract on or after the effective date of
such change.
Any change that affects the Annuity Options, and the Tables for such
Options, can only be made:
(a) no earlier than 12 months after the Effective Date of this Contract;
and
(b) no earlier than 12 months after the effective date of any such
prior change.
Change can be made at any time that affect the following provisions of
this Contract:
(a) Net Deposit(s); (d) Investment Increment Factors;
(b) Guaranteed Interest Rate; (e) Surrender Value;
(c) Contract Reserve; (f) Fund(s) Annuity Unit Value
Any new Participants to be covered under this Contract on or after the
effective date of any change will be subject to such change. This
Contract is subject to change as required by federal or state law.
2.02 Incontestability
Aetna cannot cancel this Contract because of any error of fact on the
application.
2.03 Control of Contract and Individual Accounts
All rights in this Contract rest with the Owner. The Contract Owner is
entitled to all amounts held in the Active Life Fund (see section 3.09).
The Owner is entitled to make any choices allowed by this Contract with
respect to Individual Accounts. Any choices under this Contract by the
Owner, Annuitant or beneficiary must be in writing. Until receipt of such
choices in the Home Office of Aetna, Aetna may rely on any previous
choices made. This Contract, and any Individual Accounts, are not subject
to the claims of any creditors except to the extent permitted by law.
2.04 Payments
Aetna will make Annuity payments as and when due. Any other payments will
be made by Aetna within 7 days of receipt of the written claim for
payment, except as otherwise provided in section 3.13.
2.05 Individual Certificates
6
GIP-CDA-HB
<PAGE>
Aetna will issue certificates for each Participant as required by the
state in which this Contract is delivered. The certificate will contain a
summary of the benefits provided by this Contract. Certificates are for
information only and are not a part of this Contract.
2.06 Designation of Beneficiary
The beneficiary for each Participant shall be as named, or later changed,
by the Owner.
2.07 Misstatements and Adjustments
If the age, sex, or any other relevant fact of any payee is found to be
misstated, the correct facts will be used to adjust payments.
2.08 State Laws
This Contract complies with the laws of the state in which it is
delivered. Any cash, death or Annuity payments are equal to or greater
than the minimum required by such law. Annuity tables for legal reserve
valuation shall be as required by state law and may be different from the
annuity tables used to determine annuity payments.
2.09 Replacement of Fund(s)
Aetna, or the Separate Account(s) and the Fund(s), may:
(a) change the Fund(s) - which may be invested in by the Separate
Account(s); and
(b) replace the shares of any Fund(s) held in the Separate Account(s)
with shares of any other Fund(s).
Such change or replacement must be:
(1) approved by a majority vote of persons having an interest in the
Separate Account(s) and the Fund(s); or
(2) deemed necessary by Aetna under the Investment Company Act of 1940;
or
(3) deemed necessary by Aetna to accomplish the purpose of the
Separate Account(s).
Aetna will notify the Owner of any such change or replacement.
2.10 Grace Period
This Contract will remain in effect even if deposits are not continued.
2.11 Non-Participating Contract
The Owner, Participants, or beneficiaries will not have a right to share
in the earnings of Aetna.
7
GIP-CDA-HB
<PAGE>
III. DEPOSIT, RESERVE, AND SURRENDER PROVISIONS
3.01 Net Deposit(s)
The Net Deposit is the actual deposit minus an amount required to pay
premium taxes, if any. As a rule, Aetna will deduct the charge for
premium taxes at the time Annuity benefits are purchased (see section
4.01) rather than when deposits are received. If Aetna determines that it
must pay a premium tax at any other time, it will deduct the charge from
the Active Life Fund (see section 3.09) at that time.
3.02 Allocated Contract - Individual Accounts
This section applies if the Plan is:
(a) a defined contribution plan (as defined in section 414(i) of the
Internal Revenue Code); or
(b) an insurance contract plan (as defined in section 412(i) of the
Internal Revenue Code).
Aetna will maintain two Individual Accounts for each Participant. A
Participant's Individual Account for crediting employee deposits and an
Individual Plan Account for crediting employer deposits.
On the basis of information supplied by the Owner, Aetna will credit the
Net Deposit(s) to such Accounts in either:
(a) the General Account;
(b) the Separate Account where they will be allocated to the Fund(s) as
directed by the Owner; or
(c) a mix of (a) or (b).
3.03 Unallocated Contract
This section applies if the Plan is not one described in section 3.02.
Aetna will maintain a Participant's Individual Account for each
Participant into which Net Deposits resulting from employee deposits will
be credited. All other Net Deposits will be held in a single, unallocated
Plan Account in the name of the Owner.
On the basis of information supplied by the Owner, Aetna will credit the
Net Deposit(s) to such Accounts in either:
(a) the General Account;
(b) the Separate Account where they will be allocated to the Fund(s) as
directed by the Owner; or
(c) a mix of (a) or (b).
8
GIP-CDA-HB
<PAGE>
3.04 Guaranteed Interest Rate - General Account
On Net Deposit(s) made to the General Account, Aetna will add interest
daily at an annual rate no less than 4%. Aetna may add interest daily at
any higher rate determined prospectively by its Board of Directors. This
Guarantee does not apply to any amounts applied to the payment of an
Annuity. (See section 4.01 for a description of any interest guarantee
applying to Annuities.)
3.05 Record Units - Separate Account
The portion of the Net Deposit(s) applied to the Separate Account Fund(s)
will determine the number of Record Units. This number is equal to the
Net Deposit(s) divided by the Record Unit Value (see 3.07) for the
Valuation Period when the Net Deposit is received.
3.06 Investment Increment Factors - Separate Account
Investment Increment Factors are those items used to determine a Fund's
net return factor for each Valuation Period. The net return factor(s) are
then used to compute all Separate Account values and payments.
The gross return is equal to:
(a) investment income; plus
(b) realized and unrealized capital gains; minus
(c) realized and unrealized capital losses; minus
(d) certain investment expenses; and minus
(e) a daily charge at an annual rate of .25% for investment management
expense.
The gross return is divided by the net assets of the Fund at the start of
the Valuation Period to compute the gross return rate. A gross return
rate may be more or less than 0. The net return rate is equal to:
(a) the gross return rate; plus or minus
(b) taxes (or charges to a tax reserve) on the Separate Account; and
minus
(c) a daily charge at an annual rate of 1.25% for annuity mortality and
expense risks and profit.
A net return rate may be more or less than 0.
The net return factor for each Fund is equal to the net return rate plus
1.000000.
3.07 Record Unit Value - Separate Account
The Record Unit Value for each Separate Account Fund is computed by
multiplying the net return factor for the current Valuation Period by the
Record Unit Value for the previous Period. The dollar value of
9
GIP-CDA-HB
<PAGE>
Record Units, Separate Account Reserves, and Variable Annuity payments
may go up or down due to investment gain or loss.
3.08 Contract Reserve
The Contract Reserve is equal to:
(a) Net Deposit(s) credited to the General Account (if any); plus
(b) General Account interest added by Aetna; plus
(c) the value of Separate Account Record Units (if any); minus
(d) a charge of $30 for each Participant on each anniversary of the
Effective Date when the Plan is one described in section 3.02 (a);
or
(e) a charge determined as $30 times the number of Participants on the
Effective Date made on each anniversary of the Effective Date when
the plan is one described in section 3.03; minus
(f) any amounts previously surrendered.
3.09 Active Life Fund
The Active Life Fund is the total Contract Reserve, minus those amounts
applied to the payment of Annuities under Part IV of this Contract.
3.10 Transfer of Contract Reserves
The Owner may transfer any portion of the Contract Reserves from any Fund
to any other Fund or to the General Account. Reserves cannot be
transferred from the General Account to any of the Funds. A transfer of
Reserves cannot be made within 90 days of a previous transfer.
3.11 Notice to the Owner
Aetna will notify the Owner each year of:
(a) the investments held in the Fund(s) for the Separate Account; and
(b) the number of record units; or
(c) the number of annuity units; and
(d) the value of a unit.
Such number or values will be as of a date no more than 60 days before
the date of the notice.
3.12 Sum Payable at Death (Before Annuity Payments Start)
10
GIP-CDA-HB
<PAGE>
Aetna will pay to the beneficiary the value of the Participant's
Individual Account if:
(a) the participant dies before Annuity payments start; and
(b) the notice of death is received by Aetna.
The sum paid will be that portion of the Contract Reserve held in the
Participant's Individual Account on the date when the notice is received.
Any additional amounts payable to the beneficiary will be as provided in
the Plan. The beneficiary may choose to apply any sum payable at death
under Annuity Options (see section 4.07). If no beneficiary is living at
the death of the Participant, payment of any amount due will be made to
the Owner.
3.13 Surrender Value
The amount paid by Aetna upon the surrender of all or any portion of the
Active Life Fund shall be reduced by a surrender fee. The surrender fee
will be a percentage of the amount surrendered and will vary according to
the number of Deposit Cycles completed. The number and amount of deposits
to be made in a year is chosen by the Owner. A Deposit Cycle is completed
when this number or amount of deposits has been made. The number of
completed Deposit Cycles may not be greater than the whole years since
the Effective Date. For each surrender from the Active Life Fund, the fee
will be as follows;
Number of Deposit Cycles Completed Fee
Less than 5 5%
5 or more but less than 7 4%
7 or more but less than 9 3%
9 or more 2%
No surrender fee is deducted when any portion of the Active Life Fund is
paid:
(a) at the death of a Participant before annuity payments start; or
(b) as a premium for an annuity for a Participant.
Aetna reserves the right to liquidate any surrender value with accrued
interest in installments over a period not to exceed 60 months when the
value of the Active Life Fund held in the General Account exceeds
$500,000 and the Owner chooses to surrender:
(a) such value; or
(b) any portion in excess of 20% of such value within a 12-month period.
Under certain emergency conditions, Aetna has the right to defer payment
of any surrender value:
(a) for a period of up to 6 months (unless prohibited by state law); and
(b) as provided by federal law.
11
GIP-CDA-HB
<PAGE>
IV. ANNUITY PROVISIONS
4.01 Choices to be Made
The Owner may tell Aetna to pay over any portion of the Contract Reserve
(minus any charges for premium taxes) as a premium for an Annuity under
Options 2, 3, 4, and 5 (see 4.07). The first Annuity payment must
generally be made no later than the first day of the month following the
Annuitant's 75th birthday. The Owner may tell Aetna to make the first
Annuity payment on the first day of any prior month.
When any option is chosen, the Owner or beneficiary choosing the option
must tell Aetna if payments are to be made other than monthly. They must
also tell Aetna to pay:
(a) a Fixed Annuity;
(b) a Variable Annuity using any of the Fund(s) made available by Aetna;
or
(c) any mix of these.
When choosing a Fixed Annuity, Aetna will add interest daily at an annual
rate no less than 3.5%. Aetna may add interest daily at any higher rate.
When choosing a Variable Annuity, an assumed net return rate of 5% per
year may be chosen. If not chosen, Aetna will use an assumed net return
rate of 3.5% per year.
4.02 Special Terms Under Annuity Options
(a) When payments start, the age of the Annuitant plus the number of
years for which payments are guaranteed must not exceed 95.
(b) The present value of the payments to the Annuitant when payments
start shall be more than 50% of the present value of the payments
to be made to all payees; this restriction does not apply if Option
5 is chosen and the second Annuitant is the spouse of the Annuitant.
4.03 Other Terms of Annuity Options
No choice of any Annuity Option may be made if the first payment would be
less than $20 or if the total payments in a year would be less than $100.
Age, where used in the above tables, means age nearest birthday on the
date of the first payment. The tables for Options 4 and 5 use the Annuity
table for 1949 with:
(a) a 1 year age reduction for males; and
(b) a 6 year age reduction for females.
If Fixed Annuity Options 3, 4, or 5 are chosen and a larger payment would
result from applying the surrender value to a current Aetna single
premium annuity, Aetna will make the larger payment.
12
GIP-CDA-HB
<PAGE>
4.04 Death of Annuitant/Beneficiary
When an Annuitant dies while payments are being made under an Annuity
Option, payments will be continued to the beneficiary as provided by the
option. If no beneficiary is living, the present value of any remaining
payments will be paid in one sum to the estate of the Annuitant. The
present value will assume the then current commutation rate used by
Aetna.
When a beneficiary dies while a sum is held at interest, the amount held
will be paid in one sum to the estate of the beneficiary. When a
beneficiary dies while payments are being made under an Annuity Option,
the present value of any remaining payments will be paid in one sum to
the estate of the beneficiary. The present value will assume the then
current commutation rate used by Aetna.
4.05 Fund(s) Annuity Units - Separate Account
The amount of the first Variable Annuity payment will be equal to:
(a) the portion of the Contract Reserve (minus any charges for premium
taxes) to be used to pay a Variable Annuity using the Fund(s); times
(b) the rate for each $1,000 for the Option chosen.
Such amount, or portion, of the payment using a Fund will be divided by
the Fund(s) Annuity Unit Value (see 4.03) on the due date of the first
payment to determine the number of the Fund(s) Annuity Units.
Such number of the Fund(s) Annuity Units remains fixed. Each future
payment is equal to such number times the Fund(s) Annuity Unit Value on
the due date of each payment.
4.06 Fund(s) Annuity Unit Value - Separate Account
For any Valuation Period the Fund(s) Annuity Unit Value is equal to:
(a) the Value for the next previous Period; times
(b) the net return factor(s) (see section 3.06) for the tenth previous
Period; times
(c) a factor to reflect the assumed net return rate.
The factor for 3.5% per year is .9999058; for 5% per year it is .9998663.
The dollar amount of Annuity Units, values, and payments may go up or
down due to investment gain or loss.
Payments shall not be changed due to mortality or expense results.
4.07 Annuity Options
13
GIP-CDA-HB
<PAGE>
Option 1 - Payment of Interest on Sum Left With Aetna - This option may
be used only by the beneficiary when the death of the Participant is
before Aetna has started paying an Annuity. A portion or all of the sum
due may be held in the General Account of Aetna at an annual interest
rate of 3 1/2%. Aetna may add interest daily at any higher rate. The
beneficiary may later tell Aetna to:
(a) pay a portion, or all, of the sum held by Aetna; or
(b) apply a portion, or all, of the sum held by Aetna under any of the
Annuity Options below.
Option 2 - Payments of a Stated Dollar Amount - An Annuity of a chosen
amount will be paid until there are no funds left. The payments to be
made in a year must be no less than $60 for each $1,000 applied to this
Option, but cannot exceed an amount which would deplete the funds in less
than 3 years.
14
GIP-CDA-HB
<PAGE>
Option 3 - Payments for a Stated Period of Time - An Annuity will be paid for
the number of years chosen. The number of years must be no less than 3 and no
more than 30.
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 3.5%; and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
PAYMENTS FOR A STATED PERIOD
<TABLE>
<CAPTION>
Years of Amount of Years of Amount of Years of Amount of
Payments Payments Payments Payments Payments Payments
-------- --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
3 $29.19 13 $7.94 22 $5.39
4 22.27 14 7.49 23 5.24
5 18.12 15 7.10 24 5.09
6 15.35 16 6.76 25 4.96
7 13.38 17 6.47 26 4.84
8 11.90 18 6.20 27 4.73
9 10.75 19 5.97 28 4.63
10 9.83 20 5.75 29 4.53
11 9.09 21 5.56 30 4.45
12 8.46
</TABLE>
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
PAYMENTS FOR A STATED PERIOD
<TABLE>
<CAPTION>
Years of Amount of Years of Amount of Years of Amount of
Payments Payments Payments Payments Payments Payments
-------- --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
3 $29.80 13 $8.64 22 $6.17
4 22.89 14 8.20 23 6.02
5 18.74 15 7.82 24 5.88
6 15.99 16 7.49 25 5.76
7 14.02 17 7.20 26 5.65
8 12.56 18 6.94 27 5.54
9 11.42 19 6.71 28 5.45
10 10.51 20 6.51 29 5.36
11 9.77 21 6.33 30 5.28
12 9.16
</TABLE>
15
GIP-CDA-HB
<PAGE>
Option 4 - Life Income - An Annuity will be paid for life. Payments may be made
for a minimum stated period, if chosen, of 60, 120, 180 or 240 months. If the
Annuitant dies before the end of such stated period, payments will be made to
the beneficiary for the rest of the stated period.
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 3.5%; and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
LIFE INCOME WITH
<TABLE>
<CAPTION>
Age of Payments Guaranteed for a Stated Period of Months:
Annuitant
Male Female None 60 120 180 240
---- ------ ---- ---- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
50 55 $ 4.98 $4.96 $4.89 $4.77 $4.62
51 56 5.08 5.05 4.98 4.85 4.68
52 57 5.18 5.16 5.07 4.93 4.74
53 58 5.30 5.26 5.17 5.01 4.80
54 59 5.41 5.38 5.27 5.09 4.86
55 60 5.54 5.49 5.37 5.17 4.92
56 61 5.67 5.62 5.48 5.26 4.98
57 62 5.80 5.75 5.59 5.35 5.04
58 63 5.95 5.89 5.71 5.44 5.10
59 64 6.10 6.03 5.83 5.53 5.16
60 65 6.27 6.19 5.96 5.62 5.22
61 66 6.44 6.35 6.09 5.72 5.27
62 67 6.63 6.52 6.23 5.81 5.33
63 68 6.82 6.71 6.38 5.91 5.38
64 69 7.04 6.90 6.53 6.00 5.43
65 70 7.26 7.11 6.68 6.10 5.47
66 71 7.50 7.33 6.84 6.19 5.52
67 72 7.76 7.56 7.01 6.28 5.55
68 73 8.04 7.80 7.18 6.37 5.59
69 74 8.34 8.07 7.35 6.46 5.62
70 75 8.67 8.34 7.52 6.54 5.65
71 9.01 8.63 7.70 6.62 5.67
72 9.39 8.94 7.88 6.69 5.69
73 9.79 9.26 8.05 6.76 5.71
74 10.22 9.61 8.22 6.81 5.72
75 10.69 9.96 8.39 6.87 5.73
</TABLE>
16
GIP-CDA-HB
<PAGE>
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.
17
GIP-CDA-HB
<PAGE>
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%
LIFE INCOME WITH
<TABLE>
<CAPTION>
Age of Payments Guaranteed for a Stated Period of Months:
Annuitant
Male Female None 60 120 180 240
---- ------ ---- ---- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
50 55 $ 5.89 $ 5.86 $5.78 $5.65 $5.48
51 56 5.99 5.96 5.86 5.71 5.53
52 57 6.09 6.06 5.95 5.79 5.59
53 58 6.20 6.16 6.04 5.86 5.64
54 59 6.32 6.27 6.14 5.94 5.70
55 60 6.44 6.39 6.24 6.02 5.75
56 61 6.57 6.51 6.34 6.10 5.80
57 62 6.71 6.64 6.45 6.18 5.86
58 63 6.85 6.77 6.56 6.26 5.91
59 64 7.00 6.92 6.68 6.35 5.97
60 65 7.16 7.07 6.80 6.43 6.02
61 66 7.34 7.23 6.93 6.52 6.07
62 67 7.52 7.40 7.06 6.61 6.12
63 68 7.72 7.58 7.20 6.70 6.17
64 69 7.93 7.77 7.35 6.79 6.21
65 70 8.16 7.97 7.50 6.88 6.25
66 71 8.40 8.19 7.65 6.97 6.29
67 72 8.66 8.42 7.81 7.05 6.33
68 73 8.94 8.66 7.97 7.14 6.36
69 74 9.24 8.92 8.13 7.22 6.39
70 75 9.56 9.19 8.30 7.29 6.41
71 9.91 9.48 8.47 7.36 6.43
72 10.29 9.78 8.64 7.43 6.45
73 10.69 10.10 8.80 7.49 6.47
74 11.13 10.43 8.97 7.55 6.48
75 11.60 10.79 9.13 7.60 6.49
</TABLE>
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.
Option 5 - Life Income for Two Payees - An Annuity will be paid during the lives
of the Annuitant and a second annuitant. At the death of either, payments will
continue to the survivor. When this option is chosen, a choice must be made of:
18
GIP-CDA-HB
<PAGE>
(a) 100% of the payment to continue to the survivor;
(b) 66 2/3% of the payment to continue to the survivor;
(c) 50% of the payment to continue to the survivor; or
(d) payments for a minimum of 120 months, with 100% of the payment to continue
to the survivor.
19
GIP-CDA-HB
<PAGE>
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 3.5%; and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
JOINT AND LAST SURVIVOR ANNUITY
100% TO THE SURVIVOR
NO MINIMUM PERIOD
<TABLE>
<CAPTION>
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female Female Female Female Female Female
---- ------ ------- ------- ------- ------- ------- ------- -------
50 55 60 65 70 75
-- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C> <C> <C>
50 55 $4.10 $4.27 $4.43 $4.57 $4.69 $4.79 $4.86
55 60 4.21 4.43 4.65 4.86 5.04 5.20 5.32
60 65 4.30 4.57 4.86 5.15 5.43 5.68 5.88
65 70 4.38 4.69 5.04 5.43 5.83 6.21 6.56
70 75 4.44 4.79 5.20 5.68 6.21 6.78 7.33
75 80 4.48 4.86 5.32 5.88 6.56 7.33 8.16
80 85 - 4.91 5.41 6.03 6.82 7.80 8.95
</TABLE>
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
JOINT AND LAST SURVIVOR ANNUITY
100% TO THE SURVIVOR
NO MINIMUM PERIOD
<TABLE>
<CAPTION>
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female Female Female Female Female Female
---- ------ ------- ------- ------- ------- ------- ------- -------
50 55 60 65 70 75
-- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C> <C> <C>
50 55 $5.00 $5.16 $5.31 $5.44 $5.57 $5.67 $5.75
55 60 5.11 5.31 5.51 5.71 5.90 6.06 6.19
60 65 5.20 5.44 5.71 5.99 6.26 6.52 6.73
65 70 5.28 5.57 5.90 6.26 6.65 7.04 7.38
70 75 5.34 5.67 6.06 6.52 7.04 7.59 8.14
75 80 5.38 5.75 6.19 6.73 7.38 8.14 8.96
80 85 - 5.81 6.29 6.90 7.66 8.62 9.76
</TABLE>
20
GIP-CDA-HB
<PAGE>
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.
21
GIP-CDA-HB
<PAGE>
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 3.5%; and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
JOINT AND LAST SURVIVOR ANNUITY
66-2/3% TO THE SURVIVOR
NO MINIMUM PERIOD
<TABLE>
<CAPTION>
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female Female Female Female Female Female
---- ------ ------- ------- ------- ------- ------- ------- -------
50 55 60 65 70 75
-- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C> <C> <C>
50 55 $4.51 $4.72 $4.94 $5.18 $5.44 $5.71 $ 6.00
55 60 4.70 4.94 5.20 5.49 5.81 6.14 6.49
60 65 4.90 5.18 5.49 5.84 6.23 6.65 7.09
65 70 5.11 5.44 5.81 6.23 6.71 7.25 7.82
70 75 5.34 5.71 6.14 6.65 7.25 7.93 8.69
75 80 5.58 6.00 6.49 7.09 7.82 8.69 9.69
80 85 - 6.28 6.84 7.53 8.39 9.47 10.77
</TABLE>
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
JOINT AND LAST SURVIVOR ANNUITY
66-2/3% TO THE SURVIVOR
NO MINIMUM PERIOD
<TABLE>
<CAPTION>
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female Female Female Female Female Female
---- ------ ------- ------- ------- ------- ------- ------- -------
50 55 60 65 70 75
-- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C> <C> <C>
50 55 $5.43 $5.62 $5.84 $6.08 $6.36 $ 6.65 $ 6.98
55 60 5.62 5.84 6.10 6.38 6.70 7.06 7.44
60 65 5.82 6.08 6.38 6.72 7.11 7.54 8.01
65 70 6.06 6.36 6.70 7.11 7.58 8.12 8.71
70 75 6.31 6.65 7.06 7.54 8.12 8.80 9.56
75 80 6.59 6.98 7.44 8.01 8.71 9.56 10.56
80 85 - 7.31 7.84 8.49 9.33 10.38 11.66
</TABLE>
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.
22
GIP-CDA-HB
<PAGE>
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 3.5%; and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
JOINT AND LAST SURVIVOR ANNUITY
50% TO THE SURVIVOR
NO MINIMUM PERIOD
<TABLE>
<CAPTION>
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female Female Female Female Female Female
---- ------ ------- ------- ------- ------- ------- ------- -------
50 55 60 65 70 75
-- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C> <C> <C>
50 55 $4.75 $4.98 $5.24 $5.55 $5.91 $ 6.32 $ 6.79
55 60 4.99 5.24 5.54 5.88 6.28 6.76 7.30
60 65 5.26 5.55 5.88 6.27 6.73 7.27 7.90
65 70 5.59 5.91 6.28 6.73 7.26 7.90 8.65
70 75 5.96 6.32 6.76 7.27 7.90 8.67 9.57
75 80 6.37 6.79 7.30 7.90 8.65 9.57 10.69
80 85 - 7.30 7.88 8.59 9.49 10.61 12.00
</TABLE>
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
JOINT AND LAST SURVIVOR ANNUITY
50% TO THE SURVIVOR
NO MINIMUM PERIOD
<TABLE>
<CAPTION>
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female Female Female Female Female Female
---- ------ ------- ------- ------- ------- ------- ------- -------
50 55 60 65 70 75
-- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C> <C> <C>
50 55 $5.67 $5.89 $6.15 $6.47 $ 6.84 $ 7.29 $ 7.81
55 60 5.91 6.15 6.44 6.78 7.20 7.70 8.28
60 65 6.20 6.47 6.78 7.16 7.63 8.19 8.86
65 70 6.54 6.84 7.20 7.63 8.16 8.80 9.58
70 75 6.95 7.29 7.70 8.19 8.80 9.56 10.48
75 80 7.42 7.81 8.28 8.86 9.58 10.48 11.60
80 85 - 8.39 8.94 9.61 10.46 11.56 12.92
</TABLE>
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.
23
GIP-CDA-HB
<PAGE>
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 3.5%; and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
JOINT AND LAST SURVIVOR ANNUITY
100% TO THE SURVIVOR
120 MONTHS MINIMUM PERIOD
<TABLE>
<CAPTION>
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female Female Female Female Female Female
---- ------ ------- ------- ------- ------- ------- ------- -------
50 55 60 65 70 75
-- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C> <C> <C>
50 55 $4.10 $4.27 $4.42 $4.56 $4.68 $4.77 $4.83
55 60 4.21 4.42 4.64 4.84 5.02 5.16 5.26
60 65 4.30 4.56 4.84 5.12 5.38 5.61 5.78
65 70 4.37 4.68 5.02 5.38 5.76 6.10 6.37
70 75 4.42 4.77 5.16 5.61 6.10 6.58 7.00
75 80 4.46 4.83 5.26 5.78 6.37 7.00 7.58
80 85 - 4.86 5.33 5.88 6.55 7.29 8.02
</TABLE>
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
JOINT AND LAST SURVIVOR ANNUITY
100% TO THE SURVIVOR
120 MONTHS MINIMUM PERIOD
<TABLE>
<CAPTION>
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female Female Female Female Female Female
---- ------ ------- ------- ------- ------- ------- ------- -------
50 55 60 65 70 75
-- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C> <C> <C>
50 55 $5.00 $5.15 $5.30 $5.43 $5.55 $5.64 $5.71
55 60 5.10 5.30 5.50 5.69 5.87 6.01 6.12
60 65 5.19 5.43 5.69 5.96 6.21 6.44 6.61
65 70 5.27 5.55 5.87 6.21 6.57 6.90 7.17
70 75 5.32 5.64 6.01 6.44 6.90 7.37 7.78
75 80 5.36 5.71 6.12 6.61 7.17 7.78 8.34
80 85 - 5.75 6.19 6.72 7.35 8.06 8.76
</TABLE>
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.
24
GIP-CDA-HB
<PAGE>
- --------------------------------------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 151 FARMINGTON AVE.
HARTFORD, CONNECTICUT 06156
(203) 273-0123
GROUP VARIABLE OR FIXED DEPOSIT ADMINISTRATION CONTRACT
NON-PARTICIPATING
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT,
WHEN BASED ON INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT,
ARE VARIABLE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT
GIP-CDA-HB
- --------------------------------------------------------------------------------
15
GIP-CDA-HB
APPLICATION FORM Aetna Life Insurance and Annuity Company
Pension/Profit Sharing/HR10 Customer Relations Department, PFSD
Group Contracts 151 Farmington Ave., Hartford, CT 06156
<TABLE>
<CAPTION>
<S> <C>
CLIENT INFORMATION
1. Trustees of___________________________________________________________________________________________________________________
2. Name of Plan (if different)___________________________________________________________________________________________________
3. Mailing Address_______________________________________________________________________________________________________________
City_____________________________________________________________State_________________________ZIP Code_______________________
4. Tax Identification No.
- ------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT INFORMATION
5. Type of entity qualified under section 401 of the Internal Revenue Code
[ ] Corporation [ ] Self Employed Individual(s) [ ] Other (specify)
6. Type of Contract: [ ] MAP II [ ] MAP III [ ] MAP IIIB [ ] MAP IV
7. Contract is to be: [ ] Allocated [ ] Unallocated
8. Plan Anniversary Date_________________________________________________________________________________________________________
9. Will this contract change or replace any existing life insurance or annuity contract? [ ] Yes [ ] No
If yes, please provide carrier name, account number, and date to be cancelled.
------------------------------------------------------------------------------------------------------------------------------
10. Release Plan Information to Third Party Administrator (TPA) [ ] Yes [ ] No
Name of TPA _________________________________________________________________________________________________________________
Mailing Address _____________________________________________________________________________________________________________
City_________________________________________State____________________________ ZIP Code___________________________________
11. Special Requests ____________________________________________________________________________________________________________
- ------------------------------------------------------------------------------------------------------------------------------------
TYPE OF INVESTMENT
12. Participants may elect the investment allocation for:
[ ] Employer and Employee contributions [ ] Employee contributions only [ ] None, Contract holder elects.
13. Complete the following only if the Contract Holder elects types of investments.
Contract holder may elect the investment allocation as follows for:
[ ] Employer and Employee contributions [ ] Employer contributions only Employer Employee
Enter the percentage of payment to be Aetna Variable Fund ______% ______%
-------------------------------------------
allocated to each type of investment. Fixed Account ______% ______%
-------------------------------------------
Total must be 100% Aetna Variable Encore Fund ______% ______%
-------------------------------------------
Aetna Income Shares ______% ______%
-------------------------------------------
*Within a Guaranteed Accumulation Account Guaranteed Short Term* ______% ______%
-------------------------------------------
(GAA) classification, Terms and Guaranteed Guaranteed Long Term* ______% ______%
-------------------------------------------
Interest Rates offered may vary with each Aetna Investment Advisers Fund, Inc. ______% ______%
-------------------------------------------
Deposit Period. See the prospectus for Other ______% ______%
------
further information about the rules Other ______% ______%
------
applicable to allocation of further TOTAL 100% 100%
contributions to GAA.
- ------------------------------------------------------------------------------------------------------------------------------------
I understand that amounts withdrawn from a GAA Term may be subject to a market
value adjustment prior to the maturity date of that term as specified in the
contract. I further understand that Annuity payments and account values, (if
any), when based on the investment experience of a separate account, are
variable and not guaranteed as to fixed dollar amount.
Dated at ______________________ This ______________ Day of _________________________ 19_______.
City and State
------------------------------------------------------- -----------------------------------------------------
Witness Contract Holder
- ------------------------------------------------------------------------------------------------------------------------------------
PRODUCER'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 Producer
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
300-GPP-IO
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Corrections and amendments (Home Office Use Only). Errors and omissions may be corrected by the Company but no change in plan,
classification, amount, or extra benefits shall be made without written consent to the Contract Holder. (N/A in W. Va.)
PRODUCER INFORMATION
Aetna Office Name ALIAC Code
Producer Name Percentage of
ALIAC Office Code ALIAC Producer Code Participation
Comments
- ------------------------------------------------------------------------------------------------------------------------------------
H.O. USE ONLY
State [ ] [ ] Area [ ] [ ] [ ] Agcy. [ ] [ ] [ ] Er# [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ]
App. Dte. [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] Plan eff. [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] Contract Type [ ]
Plan Type [ ] [ ] [ ] [ ] Confirm [ ] Owner [ ] Bill [ ] Submarket [ ] [ ] Higher int. [ ]
SIRI [ ] [ ] [ ] [ ] [ ] Sep. Acct. [ ] Exper. Dte.[ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ]
Mstr. Bg. [ ] [ ] [ ] [ ] [ ] ABC [ ] Alloc. Code [ ] [ ] TPA [ ] [ ] [ ] [ ]
Client Report [ ] [ ] [ ] [ ] [ ] [ ]
[ ] [ ] [ ] [ ] [ ] [ ]
[ ] Disclosure Booklet MAP II/PFS No. 723.00.32 Affix Prospectus/
[ ] Disclosure Booklet MAP III/PFS No. 723.00.65 Disclosure Booklet
[ ] Disclosure Booklet MAP IV/PFS No. 723.00.106 Receipt Here
[ ] Prospectus PFS No. 723.00.30
[ ] Prospectus PFS No. 723.00.107
[ ] Other
</TABLE>
151 Farmington Avenue
Hartford, CT 06156
[AETNA LETTERHEAD]
[AETNA LOGO]
Julie E. Rockmore
Counsel
Law Division, RE4A
August 19, 1997 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 C
Post-Effective Amendment No. 8 to Registration Statement on Form N-4
Prospectus Title: Group Installment Variable Annuity Contracts for HR
10 Plans and Rewrite of Qualified 401 Plans
File Nos. 33-75980* and 811-2513
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. 8. 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
prospectuses relating to the securities covered by Registration Statement
No. 33-75984.
<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
CONSENT OF INDEPENDENT AUDITORS
The Board of Directors of Aetna Life Insurance and Annuity Company
and Contractholders of Aetna Variable Annuity Account C:
We consent to the use of our reports dated February 4, 1997 and February 14,
1997 incorporated herein by reference in registration statement (No. 33-75980)
on Form N-4.
/s/ KPMG Peat Marwick LLP
Hartford, Connecticut
August 19, 1997
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000103007
<NAME> Account C
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 7,952,811,278
<INVESTMENTS-AT-VALUE> 8,565,202,363
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,565,202,363
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
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</TABLE>
