As Filed with the Securities and Exchange Commission on June 24, 1999
Registration No. 333-
811-03915
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF UNIT INVESTMENT TRUSTS
REGISTERED ON FORM N-8B-2
CUNA Mutual Life Variable Account
(Exact name of trust)
CUNA Mutual Life Insurance Company
(Name of depositor)
2000 Heritage Way
Waverly, Iowa 50677
(Complete address of depositor's principal executive offices)
Kevin S. Thompson, Esq.
CUNA Mutual Life Insurance Company
5910 Mineral Point Road
Madison, WI 53705
(Name and complete address of agent for service)
Copy to:
David Goldstein, Esq.
Sutherland, Asbill & Brennan
1275 Pennsylvania Avenue, N.W.
Washington, DC 20004-2404
Approximate date of proposed public offering:
As soon as practicable after the effective date of this Registration Statement
Title of Securities Being Offered: Interest in the Separate Account issued
through Variable Life Insurance Policies.
The Registrant hereby amends this Registration Statement on such dates
as may be necessary to delay its effective date until the Registrant shall file
a further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
<PAGE>
CROSS REFERENCE TO ITEMS REQUIRED
BY FORM N-8B-2
Item Number Caption in Prospectus
1 CUNA Mutual Life Insurance Company
2 CUNA Mutual Life Insurance Company
3 CUNA Mutual Life Insurance Company
4 Distribution of Policies
5 The Separate Account/The Funds
6(a) Not Applicable
(b) Not Applicable
7 CUNA Mutual Life Insurance Company
8 The Separate Account/The Funds
9 Legal Proceedings
10 The Policy
11 The Separate Account/The Funds
12 Not Applicable
13 Charges and Deductions
14 The Policy
15 The Policy
16 The Policy
17 Policy Values
18 The Policy
19 The Policy
20 Not Applicable
21 Not Applicable
22 Not Applicable
23 Not Applicable
24 Not Applicable
25 CUNA Mutual Life Insurance Company
26 Charges and Deductions
27 CUNA Mutual Life Insurance Company
28 CUNA Mutual Life Insurance Company/Directors and Executive Officers
29 CUNA Mutual Life Insurance Company
30 Not Applicable
31 Not Applicable
32 Not Applicable
33 Not Applicable
34 Not Applicable
35 Distribution of Policies
36 Not Applicable
37 Not Applicable
38 Distribution of Policies
39 Distribution of Policies
40 Distribution of Policies
41 Distribution of Policies
42 Not Applicable
43 Not Applicable
44 The Policy
45 Not Applicable
46 Policy Values
47 Not Applicable
48 CUNA Mutual Life Insurance Company
49 CUNA Mutual Life Insurance Company/Charges and Deductions
50 Not Applicable
51 CUNA Mutual Life Insurance Company, The Policy
52 Not Applicable
53 Federal Income Tax Considerations
54 Financial Statements
55 Not Applicable
56 Not Applicable
57 Not Applicable
58 Not Applicable
59 Financial Statements
<PAGE>
PROSPECTUS September 1, 1999
================================================================================
Flexible Premium Variable Life Insurance Policy
issued by
CUNA Mutual Life Insurance Company
Through
CUNA Mutual Life Variable Account
2000 Heritage Way
Waverly, Iowa 50677-9202
(800) 798-5500
================================================================================
This prospectus describes the [ ] flexible premium variable life insurance
policy ("Policy") issued by CUNA Mutual Life Insurance Company through CUNA
Mutual Life Variable Account ("Separate Account"). The Policy is designed as a
long-term investment that attempts to provide significant life insurance
benefits for the entire life of the insured.
This prospectus provides information that a prospective owner should know before
investing. You should keep this prospectus for future reference as you consider
the Policy in conjunction with other insurance you own.
With this Policy, you can allocate net premium and policy values to:
o subaccounts of the Separate Account, each of which invests in one of
the mutual funds listed on this page; or
o a fixed account, which credits a specified rate of interest.
A prospectus for each of the mutual funds available through the Separate Account
must accompany this prospectus. Please read these documents before investing and
save them for future reference.
The mutual funds available include:
|_| Ultra Series Fund
Capital Appreciation Stock Fund
Mid-Cap Stock Fund
Growth and Income Stock Fund
Balanced Fund
Bond Fund
Money Market Fund
|_| T. Rowe Price International Series, Inc.
International Stock Portfolio
|_| MFS Variable Insurance Trust
MFS Global Government Series
MFS Emerging Growth Series
|_| Templeton Variable Products Series Fund
Templeton Developing Markets Fund: Class 2
|_| Oppenheimer Variable Account Funds
Oppenheimer High Income Fund
An investment in the Separate Account is not a bank or credit union deposit, and
the Policy is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investment in the Separate Account
involves certain risks including loss of premium (principal).
Please refer to the "Risk Summary" section of this prospectus which describes
certain risks associated with investing in a Policy.
The Securities and Exchange Commission has not approved or disapproved this
Policy or determined that this prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.
Table of Contents
Glossary...................................................1
Policy Summary.............................................4
Risk Summary...............................................8
Portfolio Expense Table...................................10
CUNA Mutual Life Insurance Company........................11
CUNA Mutual Life Insurance Company...................11
The Fixed Account....................................11
The Separate Account and the Funds........................12
Ultra Series Fund....................................12
T. Rowe Price International Series, Inc..............13
MFS Variable Insurance Trust.........................13
Oppenheimer Variable Account Funds...................13
Templeton Variable Products Series Fund..............14
More Information About the Funds.....................14
The Policy................................................15
Applying for a Policy................................15
Conditions for Policy Issue..........................15
Policy Issue Date....................................15
Temporary Insurance Agreement........................15
Right-to-Examine Period..............................15
Flexibility of Premiums..............................16
Allocation of Net Premiums...........................16
Lapse................................................17
Reinstatement........................................17
Premiums to Prevent Lapse............................17
Basic Guarantee......................................17
Extended Guarantee...................................17
Death Benefit Proceeds...............................18
Change of Death Benefit Option.......................19
Change of Specified Amount...........................19
Policy Values.............................................20
Policy Value.........................................20
Surrender Value......................................20
Transfer of Values...................................20
Dollar Cost Averaging................................21
Automatic Personal Portfolio Rebalancing Service.....22
Other Types of Automatic Transfers...................22
Surrender and Partial Withdrawals....................22
Maturity.............................................23
Payment of Benefits/Settlement Options...............23
Policy Loans.........................................24
Charges and Deductions.................................24
Fund Charges.........................................24
Premium Expense Charge...............................24
Monthly Deduction....................................24
Mortality and Expense Risk Charge....................25
Surrender Charges....................................26
Transfer Fee.........................................26
Federal and State Income Taxes.......................26
Duplicate Policy Charge..............................26
Change of Specified Amount Charge....................26
Other Policy Benefits and Provisions......................26
Owner, Beneficiary...................................26
Incontestability.....................................27
Right to Convert.....................................27
Transfer of Ownership................................27
Collateral Assignments...............................27
Effect of Misstatement of Age or Gender..............28
Suicide..............................................28
Dividends............................................28
Suspension of Payments...............................28
Accelerated Benefit Option...........................29
Riders and Endorsements................................30
Children's Insurance.................................30
Guaranteed Insurability..............................30
Accidental Death Benefit.............................30
Other Insured........................................30
Waiver of Premium Disability.........................30
Executive Benefits Plan Endorsement..................31
Federal Income Tax Considerations.........................31
CUNA Mutual Life Insurance Company
Directors and Executive Officers..................34
Additional Information....................................36
Resolving Material Conflicts.........................36
Addition, Deletion Or Substitution Of Investments....36
State Regulation.....................................37
Legal Proceedings....................................37
Independent Auditors.................................37
Actuarial Matters....................................37
Registration Statement...............................37
Preparing For Year 2000..............................38
Distribution Of Policies.............................38
Financial Statements......................................38
Appendix A - Illustrations of Policy Values
and Death Benefits.........................41
Appendix B - First Year Surrender Charges
per $1,000 of Specified Amount.............51
Appendix C - First Year Surrender Charges
per $1,000 of Specified Amount Non-Gender..53
Appendix D - Death Benefit Percentage Factor..............54
<PAGE>
Glossary
Accumulation Unit
A unit of measurement used to calculate Subaccount Value.
Attained Age
The insured's age on the most recent Policy Anniversary.
Basic Guarantee
Our guarantee that the Policy will not Lapse prior to the later of (1) the tenth
Policy Anniversary, or (2) the Insured's Attained Age 65.
Basic Guarantee Premium
The amount of premium each Policy Year necessary to keep the Basic Guarantee in
effect.
Beneficiary
The person(s) you select to receive the Death Benefit Proceeds under this
Policy. You may designate primary, contingent and irrevocable Beneficiaries.
Cash Value
The Policy Value minus any applicable surrender charge.
Company (we, us, our)
CUNA Mutual Life Insurance Company.
Contingent Beneficiary
The person(s) you select to receive the Death Benefit Proceeds upon the death of
the Insured if the primary Beneficiary is not living.
Death Benefit
The amount we pay to the Beneficiary under a Death Benefit Option before
adjustments if the Insured dies while the Policy is In Force before the Maturity
Date.
Death Benefit Option
One of two options that you may select for computation of the Death Benefit.
Death Benefit Proceeds
The amount we pay to the Beneficiary when we receive proof of the insured's
death. It equals the Death Benefit on the date of the insured's death less the
following adjustments: (1) any premium received after the date of death, (2) the
amount of any Partial Withdrawals made after the date of death, (3) unpaid
Insurance Charges if death occurred during the Grace Period, and (4) any Loan
Amount.
Extended Guarantee
Our guarantee that the Policy will not Lapse prior to the Insured's Attained Age
95.
Extended Guarantee Premium
The amount of premium each Policy Year necessary to keep the Extended Guarantee
in effect.
Fixed Account
Part of the Company's General Account to which Net Premium may be allocated or
Policy Value transferred.
Fixed Account Value
Policy Value in the Fixed Account.
Fund
Each investment portfolio of Ultra Series Fund or any other open-end management
investment company or unit investment trust in which a subaccount invests.
General Account
The assets of the Company other than those
allocated to the Separate Account or another separate account of the Company.
Grace Period
The 61-day period during which you may pay Premiums to cover overdue (and other
specified) Monthly Deduction and thereby prevent the Policy from Lapsing.
Home Office
The Company's office at 2000 Heritage Way, Waverly, Iowa 50677-9202.
In Force
Status of the Policy after the Policy Issue Date and prior to its termination by
Lapse, surrender or Maturity.
Initial Required Premium
The minimum premium that you must pay before insurance coverage begins under
this Policy. The Initial Required Premium is shown on your Policy's data page.
Insured
The person whose life is insured by this Policy.
Irrevocable Beneficiary
A Beneficiary who has certain rights that you can change only with his or her
consent.
Lapse
Termination of the Policy at the expiration of the Grace Period while the
Insured is still living before the Maturity Date.
Loan Account
A portion of the Company's General Account to which Variable Account Value or
Fixed Account Value is transferred to provide collateral for any loan taken
under the Policy.
Loan Account Value
Policy Value in the Loan Account.
Loan Amount
At any time other than a Policy Anniversary, the Loan Account Value plus any
interest charges accrued on the Loan Account Value up to that time. On a Policy
Anniversary, the Loan Amount equals the Loan Account.
Maturity Date
The Policy Anniversary when the insured reaches Attained Age 95 (unless
extended). This Policy terminates and life insurance coverage ends on the
Maturity Date.
Monthly Deduction
The amount we deduct from the Policy Value each month. It includes the cost of
insurance charge, the monthly administration charge, the monthly policy fee, and
the cost of any riders.
Monthly Processing Day
The day each month as of which we determine the Insurance Charges and deduct it
from Policy Value. It is the same date each month as the Policy Issue Date. If
the Monthly Processing Day is not a Valuation Day, then it is the next Valuation
Day.
Net Amount At Risk
As of any Monthly Processing Day, the Death Benefit (discounted for the upcoming
month) less the Policy Value (after deduction of the Monthly Deduction).
Net Premium
Any Premium less the premium expense charge.
Owner (You, Your)
The person entitled to exercise all rights as Owner of the Policy.
Planned Premium
The Premium payment selected by the Owner as a level amount that he or she plans
to pay on a monthly, quarterly, semi-annual or annual basis over the life of the
Policy.
Policy Anniversary
The same date in each Policy Year as the Policy Issue Date.
Policy Issue Date
The date as of which the Policy is issued and coverage takes effect. We measure
Policy months, Policy years, and Policy anniversaries from the Policy Issue
Date.
Policy Value
The sum of the Variable Account Value, the Fixed Account Value and the Loan
Account Value.
Policy Year
A twelve month period beginning on the Policy Issue Date or on a Policy
Anniversary.
Premium
Any payment you make under the Policy other than a loan repayment.
Right to Examine Period
The period when you may return the Policy and receive a refund. The length of
the period varies by state. Your Policy's cover page shows the Right to Examine
period.
Separate Account
CUNA Mutual Life Variable Account. It is a separate investment account that is
divided into subaccounts, each of which invests in a corresponding portfolio of
a designated mutual fund.
Specified Amount
The dollar amount selected by the Owner and shown on the Policy data page that
is used to determine the Death Benefit.
Subaccount
A subdivision of the Separate Account, the assets of which are invested in a
corresponding Fund.
Subaccount Value
The Policy Value in a Subaccount.
Surrender Value
The Cash Value less any Loan Amount.
Valuation Day
For each Subaccount, each day that the New York Stock Exchange is open for
business except for certain holidays listed in the prospectus and days that the
Subaccount's corresponding Fund does not value its shares.
Valuation Period
The period beginning at the close of regular trading on the New York Stock
Exchange on any Valuation Day and ending at the close of regular trading on the
next succeeding Valuation Day.
Variable Account Value
The sum of all Subaccount Values.
Written Request
A written notice or request in a form satisfactory to the Company that is signed
by the Owner and received at the Home Office.
You (Your)
The Owner.
<PAGE>
Policy Summary
This summary describes important features of the Policy and corresponds to
sections in this prospectus which discuss the topics in more detail. Please
refer to the Glossary for definitions of certain terms.
Premiums And Lapse
o The amount of your Policy's Specified Amount determines the amount of your
Initial Required Premium. After you make the Initial Required Premium, you
can pay subsequent premiums (minimum $50) at any time.
o You can elect to pay Planned Premiums but you are not required to pay
premiums according to the plan. You can vary the frequency and amount of
premiums, and can skip premiums. We do not accept any premiums after the
Insured reaches Attained Age 95.
o We deduct a premium expense charge from each premium and credit the
resulting amount to the Policy Value.
o Paying the Initial Required Premium will not necessarily keep your Policy
In Force. Unless the Basic Guarantee or the Extended Guarantee is in
effect, your Policy will enter a 61-day Grace Period if the Surrender
Value is zero on a Monthly Processing day. Your Policy will terminate
without value unless you pay a sufficient Net Premium during the Grace
Period. See Risk of Lapse; and Policy Lapse and Reinstatement.
o As long as your cumulative premiums less aggregate partial withdrawals and
any Loan Amount equal or exceed the Accumulated Extended Guarantee
Premiums, your Policy will not enter the Grace Period until the Insured's
Attained Age 95. As long as your cumulative premiums less aggregate
partial withdrawals and any Loan Amount equal or exceed the Accumulated
Basic Guarantee Premiums, your Policy will not enter the Grace Period
before the later of (1) the tenth Policy Anniversary, or (2) the Insured's
Attained Age 65.
o Once we issue your Policy, the Right-to-Examine begins. You may return the
Policy during this period and receive a refund. See Right-to-Examine
Period.
Investment Options
Fixed Account:
o You may place money in the fixed account where it earns interest at an
annual rate of at least 4%. We may declare higher rates of interest,
but are not obligated to do so. The Fixed Account may not be available
in all states.
Separate Account:
o You may allocate Net Premiums or transfer Policy Value to any of the 11
Subaccounts of the variable account. We do not guarantee any money you
place in the Subaccounts. The value of each Subaccount will increase or
decrease, depending on the investment performance of the corresponding
fund. You could lose some or all of your money.
o Each Subaccount invests exclusively in one investment portfolio of a
mutual fund (a "Fund"). The following Funds are available:
|_| Ultra Series Fund
Capital Appreciation Stock Fund
Mid-Cap Stock Fund
Growth and Income Stock Fund
Balanced Fund
Bond Fund
Money Market Fund
|_| T. Rowe Price International Series, Inc.
International Stock Portfolio
|_| MFS Variable Insurance Trust
MFS Global Government Series
MFS Emerging Growth Series
|_| Templeton Variable Products Series Fund
Templeton Developing Markets Fund (Class 2 Shares)
|_| Oppenheimer Variable Account Funds
Oppenheimer High Income Fund
Policy Value
o Policy Value is the sum of your amounts in the Subaccounts and the fixed
Account. Policy Value also includes amounts we hold in our General Account
to secure any outstanding loans.
o Policy Value varies from Valuation Day to Valuation Day, depending on the
investment experience of the Subaccounts you choose, the interest we
credit to the Fixed Account, the charges we deduct, and any other
transactions (such as transfers, Partial Withdrawals, and loans.)
o Policy Value is the starting point for calculating important values under
the Policy, such as the Cash Value, the Surrender Value and the Death
Benefit.
o We do not guarantee a minimum Policy Value. Your Policy may Lapse if you
do not have sufficient Policy Value (minus any loan and accrued loan
interest) to pay the Monthly Deduction on a Monthly Processing Day.
Death Benefit Options
o You must choose between two Death Benefit Options under the Policy. You
may change Death Benefit Options [after the first Policy year]:
|X|Option 1 is a level Death Benefit through attained age 99 that is the
greater of:
o the Specified Amount on the date of death; or
o the Policy Value on the date of death multiplied by the applicable
Death Benefit percentage.
|X|Option 2 is a variable Death Benefit that is the greater of :
o the Specified Amount plus the Policy Value on the date of death; or
o the Policy Value on the date of death multiplied by the applicable
Death Benefit percentage.
o You may select the Specified Amount which must be at least $50,000
($25,000 for Insureds age 65 or over on the Policy Issue Date). You also
may increase or decrease the Specified Amount, but you may not decrease it
below $40,000 ($20,000 for Insureds age 65 or over.)
Charges and Deductions
o Premium expense charge: We may deduct up to 3.5% of each premium payment
and credit the remaining net premium to your Policy Value.
o Monthly Deduction. Each month we deduct:
o a cost of insurance charge for the Policy (varies by age, sex and
other underwriting factors)
o charges for any riders
o a monthly Policy Fee of $6.00
o a monthly administration charge of $0.0375 per month per $1,000 of
Specified Amount during the first 10 Policy Years
o Surrender and Partial Withdrawal charges:
o surrender: We deduct a surrender charge if the Policy is surrendered
during the first 9 Policy Years or during the 9 year period
following an increase in Specified Amount. [Likewise, we deduct a
surrender charge if Specified Amount, or an increase in Specified
Amount, is decreased within such time periods.] This charge varies
by age, sex, rating class and number of years you held the Policy.
o partial withdrawal: We may deduct a processing fee equal to the
lesser of $25 or 2% of the amount withdrawn. We currently to waive
this fee.
o Mortality and Expense Risk Charge: We deduct a charge equal to 0.90% on an
annual basis of the average daily net assets of the Separate Account.
o Fund Expenses: The Funds deduct investment advisory fees and other
expenses from the amounts the subaccounts invest in the Fund. These
charges vary by Fund and range from ____% to ____% per year.
o A $30 fee for a duplicate copy of your Policy.
o Other charges that the Company reserves the right to collect:
o A charge of $100 for each increase in Specified Amount after the
first increase in a Policy Year.
o Transfer charge: a $10 fee for the 13th and each additional transfer in a
Policy Year may be charged. We are currently waiving this fee.
Surrenders and Partial Withdrawals
o Full surrender: At any time while the Insured is alive and the Policy is
In Force, you may make a written request to surrender your Policy for its
Surrender Value.
o Federal income taxes and a penalty tax apply to surrenders
o Partial Withdrawals: You may make up to 2 written requests per Policy Year
to withdraw part of the Surrender Value, subject to the following rules.
o Federal income taxes and a penalty tax may apply to Partial
Withdrawals;
o A Partial Withdrawal reduces the Death Benefit by at least the
amount withdrawn;
o If Death Benefit Option 1 is in effect, Specified Amount is reduced
by the dollar amount of a Partial Withdrawal. Surrender charges
apply [do not apply] to a reduction in Specified Amount resulting
from a Partial Withdrawal; and
o We may deduct a processing fee for each Partial Withdrawal. We
currently intend to waive this fee.
Transfers
o Each Policy Year, you may make:
o an unlimited number of transfers from the subaccounts; and
o one transfer from the fixed account.
o A transfer from the fixed account may be limited to 25% of Fixed
Account Value. We currently waive this restriction.
o We may charge $10 for the 13th and each additional transfer during a
Policy Year. We currently waive this fee.
Loans
o You may borrow money from us using the Surrender Value of Your Policy as
collateral. Loans may have tax consequences.
o To secure the loan, we transfer an amount of your Policy Value equal to
the loan from the Separate Account and Fixed Account to the Loan Account.
o Policy Value in the Loan Account earns interest at the guaranteed minimum
rate of 4% per year.
o We charge you a maximum interest rate of 6% per year on amounts that you
borrow. Interest is accrued throughout the year and is payable at the end
of each Policy year. Unpaid interest is added to the Loan Amount (becomes
part of the outstanding loan) if it is not paid at the end of the Policy
Year.
o You may repay all or part of your outstanding loans at any time. Loan
repayments must be clearly marked as loan repayments or we will treat them
as premiums.
o Outstanding loans and accrued interest are deducted from the Death Benefit
to arrive at the Death Benefit Proceeds (the amount payable to the
Beneficiary upon the Insured's death).
Risk Summary
- --------------------------------------------------------------------------------
Investment Risk
If you instruct us to invest your Policy Value in one or more subaccounts, you
will be subject to the risk that investment performance will be unfavorable and
that your Policy Value will decrease. If you allocate Net Premiums or transfer
Policy Value to the Fixed Account, we credit your Policy Value with a declared
rate of interest, but you assume the risk that the rate may decrease, although
it will never be lower than a guaranteed minimum annual effective rate of 4.0%.
Because we continue to deduct charges from Policy Value, if investment results
are not sufficiently favorable, or if interest rates are too low, or if you do
not make additional premium payments, then your Policy's Surrender Value may
fall to zero. In that case, the Policy may Lapse. However, if investment
experience is sufficiently favorable and you have kept the Policy In Force for a
substantial time, you may be able to draw upon Policy Value, through Partial
Withdrawals and loans.
Risk of Lapse
Certain circumstances will cause your Policy to enter a Grace Period during
which you must make a sufficient premium payment to keep your Policy In Force:
o If your Policy's Surrender Value on a Monthly Processing Day is too low
to cover the Insurance Charges, and the Basic Guarantee and Extended
Guarantee are not in effect, then the Policy will enter a 61-day Grace
Period.
o Notwithstanding the foregoing, the Policy will not enter a Grace Period
if, prior to the later of (1) the 10th Policy Anniversary or , (2) the
Insured's Attained Age 65, premiums less Partial Withdrawals and loans
equal to the accumulated Basic Guarantee Premium for the period ending
on that Monthly Processing Day have been paid.
o Notwithstanding the foregoing, the Policy will not enter a Grace Period
if, prior to the Insured's Attained Age 95, premiums less Partial
Withdrawals and loans equal to the accumulated Extended Guarantee
Premium for the period ending on that Monthly Processing Day have been
paid.
Whenever your Policy enters a Grace Period, if you do not make a sufficient
premium payment before the Grace Period ends, your Policy will Lapse (terminate
without value), and insurance coverage and other benefits under your Policy will
cease. The premium payment required to keep your Policy In Force beyond the
Grace Period is the amount sufficient to result in enough Net Premiums to cover
unpaid Monthly Deduction plus two months of additional Monthly Deductions.
If your Policy Lapses, however, you may reinstate the Policy within five years
from the date of Lapse, provided that you meet insurability requirements at that
time and pay any additional required premiums.
Tax Risks
We anticipate that the Policy will be considered a life insurance contract under
federal income tax law, so that the Death Benefit Proceeds paid to the
Beneficiary will not be subject to federal income tax. However, due to lack of
guidance from tax authorities, it is uncertain whether Policies issued on a
substandard basis would be considered life insurance contracts for this purpose.
Depending on the total amount of premiums that you pay, your Policy may be
treated as a modified endowment contract ("MEC") under federal tax laws. If a
Policy is treated as a MEC, then Partial Withdrawals, surrenders and loans under
it are taxable as ordinary income to the extent such amounts represent earnings
under the Policy. For this purpose, any Partial Withdrawals, surrenders and
loans are considered first a distribution of earnings under the Policy, and when
earnings are fully distributed, a distribution of the Owner's investment in the
Policy. In addition, a 10% penalty tax may be imposed on Partial Withdrawals,
surrenders and loans taken before you reach age 59 1/2. You should consult a
qualified tax adviser for assistance in all tax matters involving your Policy.
Partial Withdrawal Limits
The Policy permits you to take only two Partial Withdrawals in any Policy Year.
A Partial Withdrawal reduces the Policy Value and Surrender Value, so it will
increase the risk that the Policy will Lapse. It also increases the likelihood
that either the Basic Guarantee or the Extended Guarantee will not remain in
effect. A Partial Withdrawal also may have adverse tax consequences.
A Partial Withdrawal reduces the Death Benefit. If you selected the level Death
Benefit (Option 1), then when you make a Partial Withdrawal, the Specified
Amount is reduced by the amount of the Partial Withdrawal. If you selected the
variable Death Benefit (Option 2), then when you make a Partial Withdrawal, the
Death Benefit is reduced because the Policy Value is reduced.
Loan Risks
A Policy loan, whether or not repaid, will affect Policy Value over time because
we transfer an amount equal to the amount of the loan from the Subaccounts and
Fixed Account to the Loan Account as collateral. We then credit a fixed interest
rate of at least 4.0% to the loan collateral. As a result, the loan collateral
does not participate in the investment results of the Subaccounts nor does it
receive current interest rates in excess of 4.0% that we may, from time to time,
credit to the Fixed Account. The longer the loan is outstanding, the greater the
likely effect of not participating in the Subaccounts or the Fixed Account.
Depending on the investment results of the Subaccounts and the interest rate
credited to the Fixed Account, the effect could be favorable or unfavorable. We
also charge you interest on the amount that you borrow at a rate ranging from
4.5% to 6.0%.
A Policy loan reduces the Death Benefit Proceeds and Surrender Value by the Loan
Amount (the amount of the loan(s), plus any interest you owe on the loan(s)). As
with Partial Withdrawals, loans reduce the Surrender Value of your Policy and
therefore increase the likelihood that the Policy would Lapse or that the Basic
Guarantee or the Extended Guarantee would not remain in effect.
Effects of Surrender Charges
The surrender charges under this Policy are significant, especially in the early
Policy years. It is likely that you will receive no Surrender Value if you
surrender your Policy in the first few Policy years. You should purchase this
Policy only if you have the financial ability to keep it In Force at the initial
Specified Amount for a substantial period of time.
Even if you do not surrender your Policy, surrender charges play a role in
determining whether your Policy will lapse. Surrender Value (that is, Policy
Value minus any surrender charges and outstanding Loan Amount) is one measure we
use to determine whether your Policy will enter a Grace Period, and possibly
Lapse.
Comparison with Other Insurance Policies
Like fixed benefit life insurance, the Policy offers a minimum death benefit and
provides a Policy Value, loan privileges and a value on surrender. However, the
Policy differs from a fixed benefit policy because it allows you to allocate
your Net Premiums or transfer Policy Value to the Subaccounts. The amount and
duration of life insurance protection and of the Policy Value varies with the
investment performance of the amounts you place in the Subaccounts. In addition,
the Surrender Value always varies with the investment results of your selected
Subaccounts.
As you consider purchasing this Policy, keep in mind that it may not be to your
advantage to replace existing insurance with the Policy.
Portfolio Expense Table
- --------------------------------------------------------------------------------
The following table shows the fees and expenses incurred by the Funds. The
purpose of the table is to assist you in understanding the various costs and
expenses that you will bear directly and indirectly. The table reflects charges
and expenses of the Funds for the fiscal year ended December 31, 1998. Future
expenses of the Funds may be higher or lower than those shown. For more
information on the fees and expenses described in this table, see the Funds'
prospectuses which accompany this prospectus.
Annual Fund Operating Expenses (as a percentage of average net assets before fee
waivers and expense reimbursements).
<TABLE>
<CAPTION>
Total Annual
Portfolio Management Fees Other Expenses Expenses
<S> <C> <C> <C>
Ultra Capital Appreciation Stock Fund % % %
Ultra Mid-Cap Stock Fund % % %
Ultra Growth and Income Stock Fund % % %
Ultra Balanced Fund % % %
Ultra Bond Fund % % %
Ultra Money Market Fund % % %
T. Rowe Price International Stock Portfolio % % %
MFS Global Government Series % % %
MFS Emerging Growth Series % % %
Oppenheimer High Income Fund % % %
Templeton Developing Markets Fund % % %
</TABLE>
(1) Management fees include operating expenses.
(2) These Funds have an expense offset arrangement which reduces the Funds'
custodian fee based upon the amount of cash maintained by the Funds
with its custodian and dividend disbursing agent and may enter into
other such arrangements and directed brokerage arrangements (which
would also have the effect of reducing the Funds' expenses). Expenses
do not take into account these expense reductions, and are therefore
higher than the actual expenses of the Fund.
(3) The annual expenses listed for the MFS Global Governments Series are
gross of certain reimbursements by its investment adviser. The
investment adviser has agreed to bear, subject to reimbursement, until
December 31, 2004, expenses of the Global Governments Series such that
the Series' aggregate operating expenses do not exceed 1.00%, on an
annualized basis, of its average daily net assets. See "Information
Concerning Shares of The Series - Expenses" in the prospectus of the
MFS Global Governments Series.
CUNA Mutual Life Insurance Company
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CUNA Mutual Life Insurance Company
CUNA Mutual Life Insurance Company is a mutual life insurance company organized
under the laws of Iowa in 1879 and incorporated on June 21, 1882. The Home
Office is located at 2000 Heritage Way, Waverly, Iowa 50677-9202. We, organized
as a fraternal benefit society with the name "Mutual Aid Society of the
Evangelical Lutheran Synod of Iowa and Other States," changed its name to
"Lutheran Mutual Aid Society" in 1911, and reorganized as a mutual life
insurance company called "Lutheran Mutual Life Insurance Company" on January 1,
1938. On December 28, 1984, we changed our name to "Century Life of America." On
January 1, 1997, we changed our name to "CUNA Mutual Life Insurance Company."
On July 1, 1990, we entered into a permanent affiliation with CUNA Mutual
Insurance Society ("CUNA Mutual"), 5910 Mineral Point Road, Madison WI
53705-4456. The terms of an Agreement of Permanent Affiliation provide for
extensive financial sharing between the Company and CUNA Mutual of individual
life insurance business through reinsurance arrangements, the joint development
of business plans and distribution systems for individual insurance and other
financial service products within the credit union movement, and the sharing of
certain resources and facilities. At the current time, all of our directors are
also directors of CUNA Mutual and many of our senior executive officers hold
similar positions with CUNA Mutual. The affiliation, however, is not a merger or
consolidation. Both companies remain separate corporate entities and their
respective owners retain their voting rights. CUNA Mutual and its subsidiaries
and affiliates, including us are referred to herein as "CUNA Mutual Group."
As of December 31, 1998, we had more than $4 billion in assets and $11 billion
of life insurance In Force. Effective June 1998 and through the date of this
Prospectus, A.M. Best rated us A (Excellent). Effective March 1998 and through
the date of this Prospectus, Duff & Phelps rated us AA. These are the most
recent ratings available as of the date of this Prospectus. Periodically, the
rating agencies review our ratings. To obtain our current ratings, contact us at
the address and telephone number shown on the first page of this Prospectus.
The objective of A.M. Best's rating system is to evaluate the factors affecting
overall performance of an insurance company. Then provide an opinion of a
company's financial strength and ability to meet its contractual obligations
relative to other companies in the industry. The evaluation includes both
quantitative and qualitative analysis of a company's financial and operating
performance.
Duff & Phelps Credit Rating Co. rates insurance companies on their claims paying
abilities. It bases these ratings on its assessment of the economic fundamentals
of our principal lines of business, our competitive position, our management
capability, our relationship with our affiliates and our asset and liability
management practices.
The Company and CUNA Mutual are members of the Insurance Marketplace Standards
Association (IMSA). IMSA is a newly formed independent industry organization
dedicated to the practice of high ethical standards in the sale of
individually-sold life insurance and annuity products. IMSA members have adopted
policies and procedures that demonstrate a commitment to honesty, fairness and
integrity in all customer contacts involving sales and service of individual
life insurance and annuity products.
CUNA Mutual owns CUNA Mutual Investment Corporation. CUNA Mutual Investment
Corporation also owns CUNA Brokerage Services, Inc. The Company and CUNA Mutual
Investment Corporation each own a one-half interest in CIMCO Inc. (the
investment adviser to the Ultra Series Fund).
The Fixed Account
The fixed account is part of the Company's General Account. We use General
Account assets to support our insurance and annuity obligations other than those
funded by various separate accounts. Subject to applicable law, we have sole
discretion over investment of the Fixed Account's assets. We bear the full
investment risk for all assets contributed to the Fixed Account. The Company
guarantees that all Policy Value allocated to the Fixed Account is credited
interest daily at a net effective interest rate of at least 4%. We will
determine any interest rate credited in excess of the guaranteed rate at our
sole discretion.
The Fixed Account is not registered with the Securities and Exchange Commission
and the staff of the Securities and Exchange Commission has not reviewed the
disclosure in this prospectus relating to the Fixed Account.
The Separate Account and the Funds
- --------------------------------------------------------------------------------
We established the Separate Account on August 16, 1983. Although the assets in
the Separate Account are our property, the assets attributable to the Policies
are not chargeable with liabilities arising out of any other business which we
may conduct. The assets of the Separate Account are available to cover our
general liabilities only to the extent that the Separate Account's assets exceed
its liabilities arising under the Policies and any other policies supported by
the Separate Account. We have the right to transfer to the general account any
assets of the Separate Account which are in excess of reserves and other
contract liabilities. Periodically, the Separate Account makes payments to us
for mortality and Expense Charges.
The Separate Account is divided into Subaccounts. The income, gains and losses,
realized or unrealized, from the assets allocated to each Subaccount are
credited to or charged against that Subaccount without regard to income, gains
or losses from any other Subaccount.
The Separate Account has been registered with the Securities and Exchange
Commission ("SEC") as a unit investment trust under the Investment Company Act
of 1940 ("1940 Act") and meets the definition of a Separate Account under the
federal securities laws. Registration with the SEC does not involve supervision
of the management, investment practices, or policies of the Separate Account or
of the Company by the SEC. The Separate Account is also subject to the laws of
the State of Iowa which regulate the operations of insurance companies domiciled
in Iowa.
We do not guarantee the investment performance of the Separate Account or of any
Subaccount. Policy Value will vary daily with the value of the assets under the
Separate Account and, depending upon the death benefit option chosen. The Death
Proceeds may also vary with the value of the assets in the Subaccounts selectd
by the Owner. To the extent that the Death Proceeds payable upon the death of
the Insured exceed the Policy Value, such amounts are our general obligations
and payable out of our general account.
Ultra Series Fund
The Ultra Series Fund is a fund with two classes of shares within each of seven
investment portfolios. Class C shares are offered to unaffiliated insurance
company separate accounts and unaffiliated qualified retirement plans. Class Z
shares are offered to CUNA Mutual Group affiliates separate accounts and
qualified retirement plans. CIMCO Inc. serves as investment adviser to the Ultra
Series Fund and manages assets in accordance with general policies and
guidelines established by the board of trustees of the Ultra Series Fund.
Currently, the Ultra Series Fund offers six Funds as investment options under
the Policies.
Capital Appreciation Stock Fund. This Fund seeks a long-term growth of capital.
It pursues this objective by investing in common stocks, including those of
smaller companies and of companies undergoing significant change.
Mid-Cap Stock Fund. This Fund seeks long-term capital appreciation by investing
in mid-size and small companies. It pursues this objective by purchasing the
common stock of generally smaller, less-developed issuers with valuations,
fundamentals and/or prospects that are attractive to the investment adviser.
Growth and Income Stock Fund. This Fund seeks long-term growth of capital with
income as a secondary consideration. It pursues this objective by investing in
common stocks of companies with financial and market strengths and long-term
records of performance.
Balanced Fund. This Fund seeks a high total return through the combination of
income and capital growth. It pursues this objective by investing in the types
of common stocks owned by the Capital Appreciation Stock and Growth and Income
Stock Funds, the type of bonds owned by the Bond Fund, and the type of money
market instruments owned by the Money Market Fund.
Bond Fund. This Fund seeks a high level of current income, consistent with the
prudent limitation of investment risk, through investment in a diversified
portfolio of fixed-income securities with maturities of up to 30 years. It
principally invests in securities of intermediate term maturities.
Money Market Fund. This Fund seeks high current income from money market
instruments consistent with preservation of capital and liquidity. An investment
in the Money Market Fund is neither insured nor guaranteed by the U.S.
Government. There can be no assurance that the Money Market Fund will be able to
maintain a stable Net Asset Value of $1.00 per share.
T. Rowe Price International Series, Inc.
T. Rowe Price International Stock Portfolio. This Fund seeks long-term growth of
capital through investments primarily in common stocks of established, non-U.S.
companies.
Rowe Price-Fleming International, Inc. ("RPFI") serves as the investment adviser
to the T. Rowe Price International Stock Portfolio and manages its assets in
accordance with general policies and guidelines established by the board of
directors of the T. Rowe Price International Series, Inc. RPFI was founded in
1979 as a joint venture between T. Rowe Price Associates, Inc. and Robert
Fleming Holdings Limited.
MFS Variable Insurance Trust
MFS Global Governments Series. This Fund seeks to provide income and capital
appreciation.
MFS Emerging Growth Series. This Fund seeks long-term growth of capital through
investments primarily in common stocks of emerging growth companies.
Massachusetts Financial Services Company ("MFS") serves as the investment
adviser to the MFS Global Governments Series and MFS Emerging Growth Series and
manages its assets in accordance with general policies and guidelines
established by the board of trustees of the MFS Variable Insurance Trust. MFS is
a subsidiary of Sun Life Assurance Company of Canada (U.S.) Financial Services
Holdings, Inc. which, in turn, is a wholly owned subsidiary of Sun Life
Assurance Company of Canada.
Oppenheimer Variable Account Funds
Oppenheimer High Income Fund. This Fund seeks a high level of current income
from investments in high yield fixed-income securities. High Income Fund's
investments include unrated securities or high risk securities in the lower
rating categories, commonly known as "junk bonds," which are subject to a
greater risk of loss of principal and nonpayment of interest than higher-rated
securities.
Oppenheimer Funds, Inc. serves as the investment adviser to the Oppenheimer High
Income Fund and manages its assets in accordance with general policies and
guidelines established by the board of trustees of the Oppenheimer Variable
Account Funds. The Manager is owned by Oppenheimer Acquisition Corp., a holding
company that is owned in part by senior officers of the Manager and controlled
by Massachusetts Mutual Life Insurance Company.
Templeton Variable Products Series Fund
The Templeton Variable Products Series Fund is only available as an underlying
investment of the Separate Account in which this Contract invests.
Templeton Developing Markets Fund: Class 2. This Fund seeks long-term capital
appreciation by investing primarily in equity securities of issuers in countries
having developing markets.
Templeton Asset Management Ltd. serves as the investment adviser to the
Templeton Developing Markets Fund: Class 2 and manages its assets and makes its
investments decisions. Templeton Asset Management Ltd. is a Singapore
corporation wholly owned by Franklin Resources, Inc., a publicly owned U.S.
company. Franklin Resources' principal shareholders are Charles B. Johnson and
Rupert H. Johnson Jr.
More Information About the Funds
Availability of the Funds. The Separate Account purchases shares of the Funds in
accordance with separate participation agreements. The agreements contain
varying termination provisions. If a participation agreement terminates, the
Separate Account may not be able to purchase additional shares of the Fund(s)
covered by that agreement. Likewise, in certain circumstances, it is possible
that shares of a Fund may not be available to the Separate Account even if the
participation agreement relating to that Fund has not been terminated. In either
event, owners will no longer be able to allocate purchase payments or transfer
Policy Value to the Subaccount investing in that Fund.
Resolving Material Conflicts. Shares of the Funds, other than Ultra Series Fund,
are sold to separate accounts of insurance companies that are not affiliated
with the Company or each other, a practice known as "shared funding." They are
also sold to separate accounts to serve as the underlying investment for both
variable annuity contracts and variable life insurance contracts, a practice
known as "mixed funding." As a result, there is a possibility that a material
conflict may arise between the interests of Owners, whose Contract Values are
allocated to the Separate Account, and of owners of other contracts whose
contract values are allocated to one or more other separate accounts investing
in any one of the Funds. Shares of some of the Funds may also be sold directly
to certain qualified pension and retirement plans qualifying under Section 401
of the Code. As a result, there is a possibility that a material conflict may
arise between the interests of Owners or owners of other contracts (including
contracts issued by other companies), and such retirement plans or participants
in such retirement plans. In the event of any such material conflicts, the
Company will consider what action may be appropriate, including removing the
Fund from the Seperate Account or replacing the Fund with another Fund. There
are certain risks associated with mixed and shared funding and with sale of
shares to qualified pension and retirement plans, as disclosed in the Fund's
prospectus.
As with other Funds, Ultra Series Fund sells shares in "mixed funding"
arrangements. In addition, it sells shares directly to qualified pension and
retirement plans sponsored by CUNA Mutual Group. In the future, it is possible
that Ultra Series Fund may sell shares in "shared funding" arrangements. As with
other funds, in the event of material conflicts, the Company will consider what
action may be appropriate, including removing an Ultra Series Fund Portfolio
from the Separate Account or replacing it with another Portfolio or Fund.
Certain risks associated with mixed funding and with the sale of shares to CUNA
Mutual Group plans are disclosed in the Ultra Series Fund Statement of
Additional Information.
Related Fund Performance. These mutual fund portfolios are not available for
purchase directly by the general public, and are not the same as other mutual
fund portfolios with very similar or nearly identical names that are sold
directly to the public. However, the investment objectives and policies of
certain portfolios available under the policy may be very similar to the
investment objectives and policies of other portfolios that are managed by the
same investment adviser or manager. Nevertheless, the investment performance and
results of the portfolios available under the policy may be lower, or higher,
than the investment results of such other (publicly available) portfolios. There
can be no assurance, and no representation is made, that the investment results
of any of the portfolios available under the policy will be comparable to the
investment results of any other mutual fund portfolio, even in the other
portfolio has the same investment adviser or manager and the same investment
objectives and policies, and a very similar name.
The Policy
- --------------------------------------------------------------------------------
Applying for a Policy
To purchase a Policy, you must complete an application and submit it to an
authorized representative. You must also pay an Initial Required Premium as
further described below. You must pay the Initial Required Premium during the
lifetime of the Insured, on or before the Policy Issue Date. All premiums after
the Initial Required Premium must be paid to the Home Office.
Conditions for Policy Issue
The minimum Specified Amount for this Policy is $50,000 ($25,000 for Issue Ages
65 and over). The Policy may be issued on individuals up to 75 years of Age. We
require evidence of insurability satisfactory to us before issuing a Policy. In
some cases, this evidence will include a medical examination.
Policy Issue Date
Full Insurance coverage under the Policy begins as of the Policy Issue Date. The
Policy Issue Date is also used to determine Policy Anniversaries and Monthly
Processing Days. If the Initial Required Premium is paid with the application,
and, after underwriting is complete, the Policy is approved for issue at the
Specified Amount applied for, then the Policy Issue Date is the Valuation Day as
of which the Policy is approved. If the Initial Required Premium does not
accompany the application or if the Policy is approved for issue at a Specified
Amount other than that requested in the application, then the Policy Issue Date
is approximately ten days after the Valuation day as of which the Policy is
approved.
Temporary Insurance Agreement
If the Initial Required Premium is paid with the application, the proposed
Insured will be covered prior to the Policy Issue Date under a Temporary
Insurance Agreement. For the period beginning on the Valuation Day that we
receive the Initial Required Premium until all information necessary to complete
underwriting is received, coverage under a Temporary Insurance Agreement, the
coverage is 50% of the Specified Amount requested in the application up to
$150,000. After that period, and until the Policy Issue Date, coverage under a
Temporary Insurance Agreement is the Specified Amount requested in the
application up to $300,000. No temporary insurance is available in connection
with coverage that is normally available through riders to a Policy. The details
of the Temporary Insurance Agreement are found in the Agreement which
accompanies the Policy.
Right-to-Examine Period
You may cancel the Policy before the latest of the following three events:
o 45 days after the date of the application.
o 10 days after we have personally delivered or have sent the Policy
and a Notice of Right of Partial Withdrawal to you by first class
mail. (20 days if the policy is a replacement for an existing policy,
or longer if required by state law.)
o 10 days after you receive the Policy. (20 days if the policy is a
replacement for an existing policy, or longer if required by state
law.)
To cancel the Policy, you must mail or deliver the Policy to the representative
who sold it or to us at our Home Office. If you return the Policy, we will treat
it as if it had not been issued. You will receive a refund equal to the premiums
paid, unless state law requires a different result.
If there is an increase in Specified Amount and the increase is not the result
of a change in death benefit option, you will be granted a right-to-examine
period, with respect to the increase. You may request a cancellation of the
increase during the right-to-examine period. You will then receive a refund (if
actual payment was received) or a credit. A credit will be made to the Policy
Value allocated among the Subaccounts and Fixed Account as if it were Net
Premium, equal to all Insurance Charges attributable to the increase in
Specified Amount, including rider costs arising from the increase. The refund or
credit will be made within seven days after we receive the request for
cancellation on the appropriate form containing all necessary signatures. Net
Premiums paid upon application of an increase in Specified Amount will be
allocated to the Subaccounts and/or the Fixed Account and will not be refunded
following cancellation of the increase. Owners who request an increase in
Specified Amount should take this into consideration in deciding whether to make
any premium payments during the right-to-examine period for the increase.
Flexibility of Premiums
The Policy provides for a planned annual premium determined by you. You are not
required, however, to pay premiums in accordance with the planned schedule.
Premiums are generally flexible both as to timing and amount. Premiums must be
large enough to keep the Policy In Force. You may pay premiums after the Initial
Required Premium at any time while the Policy is In Force.
The Initial Required Premium is at least one-sixth (1/6) of the Basic Guarantee
Premium. This is the minimum premium that must be paid before we will issue a
Policy. The Basic Guarantee Premium is the sum of the expected first year
charges plus the first year Surrender Charge and provides certain protections
against Lapse.
A higher level of premium, the Extended Guarantee Premium, will fund the Policy
at the Extended Guarantee Level which provides protection against Lapse. The
Extended Guarantee Premium equals the current guideline level premium as
determined by the current Internal Revenue Code.
The Initial Required Premium, the Planned Premium, the Extended Guarantee
Premium, and the Basic Guarantee Premium are shown on the data page of the
Policy. We reserve the right to refuse any premium payment that is less than
$50.
The total of all premiums paid may never exceed the maximum premium limitation
determined by the Internal Revenue Code for treatment of the Policy as a life
insurance policy. If at any time a premium is paid which would result in total
premiums exceeding the maximum premium limitation, we will only accept that
portion of the premium which would make total premiums equal the maximum. We
will return any excess amount and will not accept further premiums until the
maximum premium limitation increases.
We reserve the right to refuse any premium or part of a premium which would
increase the Death Benefit of the Policy by more than the amount of the premium.
Allocation of Net Premiums
You determine what percentages of the Net Premiums are allocated to each
Subaccount and the Fixed Account. Any allocation to a Subaccount or the Fixed
Account must be at least 5% of amount applied and only whole percentages are
permitted.
Initial Required Premiums are allocated as follows:
If the Initial Required Premium is received before we issue the Policy, it is
held in the company's general account until the Policy Issue Date. On the Policy
Issue Date, the Net Premium are allocated to the Subaccounts and the fixed
account. Allocations are made by the Owner and recorded on the application for
the Policy. These allocations apply to future Net Premiums until the allocation
is changed by the Owner.
Lapse
If your Surrender Value on any Monthly Processing Day is insufficient to pay the
Monthly Deduction, then we will mail you a written notice informing you that a
Grace Period has begun under the Policy. If sufficient Net Premium is not paid
during the Grace Period, the Policy will Lapse without value. The Net Premium
required to terminate the Grace Period is that which is sufficient to pay
overdue Monthly Deductions plus the anticipated amount of the next two Monthly
Deductions. If the Insured dies during the Grace Period, unpaid Monthly
Deduction are deducted from the Death Benefit Proceeds.
Reinstatement
You may ask to have a Lapsed Policy reinstated. We will reinstate a Policy based
upon the original terms of the Policy if all of the following conditions are
met:
o You make a Written Request to reinstate the Policy within five years
after the Lapse.
o You provide satisfactory evidence of insurability (the Cost of
Insurance rates following reinstatement will be based upon the risk
classification of the reinstated Policy).
o You pay Net Premiums in an amount sufficient to cover unpaid Monthly
Deduction due prior to the end of the Grace Period plus the
anticipated amount of two Monthly Deductions.
o You pay the amount of or reinstate any loan outstanding as of the
date of Lapse.
The reinstatement will become effective immediately upon our approval of the
reinstatement.
Premiums to Prevent Lapse
If your Policy meets the premium requirements of one of the guarantees described
below, your Policy will continue in force for the duration of the guarantee
provided you meet the requirements of that guarantee. The guarantees described
may vary by state.
a. Basic Guarantee: The Basic Guarantee is in effect if the total of your
premiums on each Monthly Processing Day following your Policy Issue
Date, less the total of any Partial Withdrawals and loans taken to
date, is at least equal to the Basic Guarantee Premium. The Basic
Guarantee Premium is equal to the sum of all monthly Basic Guarantee
Premiums as of that Monthly Processing Day. This Basic Guarantee will
remain in effect as long as you meet the premium requirements, and
will continue until the later of: 1.) the Insured's Attained Age 65;
or 2.) 10 years after the Policy Issue Date. The Basic Guarantee
Premium as of the Policy issue date is shown on the data page of the
Policy. If you make a change to your Policy benefits or change how you
fund your Policy, this amount will change and will affect the premium
required for the Basic Guarantee.
b. Extended Guarantee: The Extended Guarantee is in effect if the total
of your premiums on each Monthly Processing Day following your Policy
Issue Date, less the total of any Partial Withdrawals and loans taken
to date, is at least equal to the Extended Guarantee Premium
requirement. The Extended Guarantee Premium requirement is equal to
the total amount of all Extended Guarantee Premiums accumulated as of
that Monthly Processing Day. This Extended Guarantee will remain in
effect as long as you meet the premium requirements, and will continue
until the Insured's Attained Age 95. The Extended Guarantee Premium as
of the Policy Issue Date is shown on the data page of the Policy. If
you make a change to your Policy benefits or change how you fund your
Policy, this amount will change and will affect the premium required
for the Extended Guarantee.
You will be notified if the total of your net premiums are no longer sufficient
to keep the Basic Guarantee or Extended Guarantee in effect. If the Basic or
Extended Guarantee was previously in effect, you will have 61 days to pay us
sufficient premium in order to keep the guarantee in effect.
During the guarantee period, Monthly Deduction will continue to be deducted and
may result in a Surrender Value of less than zero at the end of the period. If
your Surrender Value is equal to or less than zero at the end of the guarantee
period, we will mail a notice of impending termination to you at your last post
office address known to us and your Grace Period will begin.
Death Benefit Proceeds
Payment of Death Benefit Proceeds. When we receive satisfactory, written proof
of the Insured's death, we will pay the Death Benefit Proceeds to the
Beneficiary. If no Beneficiary survives the Insured, we will pay the Death
Benefits Proceeds to you, if living, or to your estate.
We will pay Death Benefit Proceeds payable to your estate in one sum. We will
pay Death Benefit Proceeds payable to you or to other beneficiaries in one sum
unless another settlement option is selected. If the Beneficiary is not a
natural person, Death Benefit Proceeds due may only be applied under settlement
options we consent to.
We will pay interest on single sum Death Benefit Proceeds from the date we
receive proof of death (or from the date of the insured's death, if required by
law), until the date of payment. Interest will be paid at an annual rate that we
determine.
During the Insured's lifetime, you may direct that the Death Benefit Proceeds be
paid under one of the settlement options. We must receive the written consent of
all Irrevocable Beneficiaries and assignees before the selection. After the
Insured's death, if you did not select a settlement option, any Beneficiary
entitled to receive the proceeds in one sum may select a settlement option.
Death Benefit Options 1 and 2. You may select one of two death benefit options.
Your selection will affect the Death Benefit, the Monthly Deduction, and the
Policy Value. Under either option, Death Benefit Proceeds are equal to:
o The Death Benefit on the date of death; plus
o Any premiums received after date of death; minus
o Any Partial Withdrawals taken after the date of death; minus
o Any insurance charges due if the insured dies during a Grace
Period; minus
o Any Loan Amount.
The Death Benefit, however, differs under the two options.
Under Option 1, the Death Benefit is the greater of:
o The Specified Amount.
o The Policy Value on the insured's date of death multiplied by the
Death Benefit Percentage Factor.
Under Option 2, the Death Benefit is the greater of:
o The Specified Amount plus the Policy Value on the date of death.
o The Policy Value on the insured's date of death multiplied by the
Death Benefit Percentage Factor.
The Death Benefit Percentage Factor is the ratio of Death Benefit to Policy
Value required by the Internal Revenue Code for treatment of the Policy as a
life insurance Policy. The Death Benefit Percentage Factor varies by Attained
Age as shown in Appendix D. The death benefit factor decreases from year to year
as the Age of the Insured increases.
The illustrations in Appendix A show how the death benefit option affects Policy
values. Illustrations 1, 2, 5 and 6 assume death benefit option 1 is in effect.
Illustrations 3, 4, 7, and 8 assume death benefit option 2 is in effect.
Change of Death Benefit Option
You may change the death benefit option. The change will become effective as of
the first Monthly Processing Day after a Written Request satisfactory to us is
received at the Home Office. We reserve the right to require evidence of
insurability.
If option 1 is changed to option 2, the Specified Amount is reduced by the
amount of the Policy Value on the effective date of the change. This change does
not alter the amount of the Policy's death benefit at the time of the change,
but does affect how the death benefit is determined from that point on. The
death benefit will vary with Policy Value from that point on, unless the death
benefit derived from application of the Death Benefit Percentage Factor applies.
No change from death benefit option 1 to death benefit option 2 is allowed if
the resulting Specified Amount would be less than $40,000 ($20,000 if Issue Age
is 65 and over).
If option 2 is changed to option 1, the Specified Amount is increased by the
amount of the Policy Value on the effective date of the change. This change does
not alter the amount of the Policy's Death Benefit at the time of the change,
but does affect the determination of the Death Benefit from that point on. The
Death Benefit as of the date of the change becomes the new Specified Amount and
will remain at that level, unless the Death Benefit derived from application of
the Death Benefit Percentage Factor applies.
Your insurance goals should determine the appropriate death benefit option. If
you prefer to have favorable investment results additional premiums reflected in
the form of an increased death benefit, you should choose death benefit option
2. If you are satisfied with the amount of insurance coverage and wish to have
favorable investment results and additional premiums reflected to the maximum
extent in increasing Cash Values, you should choose death benefit option 1.
A change of death benefit option will also change the Cost of Insurance for the
duration of the Policy. The Cost of Insurance on any Monthly Processing Day is
equal to the Net Amount At Risk, multiplied by the Cost of Insurance rate. The
Cost of Insurance rate is the same under both options, but the difference
between Death Benefit and Policy Value varies inversely with Policy Value under
option 1, but is constant under option 2, unless the Death Benefit derived from
application of the Death Benefit Percentage Factor applies.
Change of Specified Amount
You may change the Specified Amount at any time after the first Policy year. If
more than one increase is requested per Policy year, we may charge $100 for each
increase after the first request. Changes must be requested in writing and are
subject to the following conditions.
Decreases. After the decrease, the Specified Amount must be at least $40,000
($20,000 for Issue Ages 65 and over). The decrease is effective as of the
Monthly Processing Day coincident with or next following day the request is
received at the Home Office. For purposes of determining the Cost of Insurance,
any decrease is applied to the initial Specified Amount and to increases in the
Specified Amount in reverse order in which they become effective. A decrease
does not result in reduced Surrender Charges.
Increases. A supplemental application containing evidence of insurability
satisfactory to us. The effective date of the increase will be shown on an
endorsement to the Policy.
Because the Surrender Charge is a function of Specified Amount, an increase in
Specified Amount results in an increase in the applicable Surrender Charge.
However, no additional Surrender Charges will accrue for increases in Specified
Amount due to a change from death benefit option 2 to death benefit option 1.
Likewise, because the Administrative Charge is a function of Specified Amount,
an increase in Specified Amount results in an increase in the ongoing
Administrative Charge. As with the Surrender Charge, an increase resulting from
an change in Death Benefit Option 2 to Option 1, does not result in an increase
in the Administrative Charge.
We reserve the right to require the payment of additional premiums in an amount
equal to the Initial Required Premium which would be charged based on Attained
Age and rating class for a newly-issued Policy with a Specified Amount equal to
the amount of increase, as a condition of allowing an increase.
The rating class assigned to an increase in Specified Amount may result in the
use of a Cost of Insurance rate different than the Cost of Insurance rate
charged on the original Specified Amount.
Policy Values
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Policy Value. The Policy Value is the sum of the Variable Account Value (itself
the sum of the Subaccount Values), the Fixed Account Value and the Loan Account
Value. Policy Value is determined as of the end of each Valuation Period. As a
result, Policy Value increases whenever:
o Investment gains occur in any Subaccount.
o Interest is credited to the Policy for amounts held in the Fixed
Account.
o Interest is credited to the Policy for any Loan Amounts held
in the Loan Account.
o Additional premiums are paid.
o Policy dividends are paid into the Subaccounts or Fixed Account.
Policy Value decreases whenever:
o Investment losses occur in any Subaccount.
o Monthly Deduction or service fees are paid.
o A Partial Withdrawal occurs.
Policy Value remains constant when:
o A Policy loan is either disbursed or repaid.
o Amounts are transferred between any Subaccount or Fixed Account and
the Loan Account, or when amounts are transferred among the
Subaccounts and the Fixed Account (exclusive of any transfer charge).
The Subaccount Value attributable to a Subaccount is equal to the number of
Accumulation Units that the Policy has in each Subaccount, multiplied by the
Accumulation Unit Value of that Subaccount. The Accumulation Unit Value of each
Subaccount was set at $10 for the first Valuation Period. The Accumulation Unit
Value may increase or decrease from one Valuation Period to the next. The
Accumulation Unit Value will vary between Subaccounts.
Transfer of Values
You may make the following transfers of Policy Value 1) between Subaccounts at
anytime 2) from a Subaccount to the Fixed Account at any time except for the six
month period after a transfer out of the Fixed Account and 3) from the Fixed
Account into the Subaccounts only during the 30 day period beginning on and
immediately following the Policy Anniversary. Only one transfer of up to 25% of
the Fixed Account Value is allowed each Policy year. However, we currently waive
these restrictions on transfers from the Fixed Account.
A transfer may be requested in writing or by an authorized telephone
transaction. A written transfer request must be made on a form satisfactory to
us and contain your original signature. The Written Request will take effect as
of the day it is received at the Home Office. You also may make transfers by
telephone if we have a signed telephone transfer authorization form from you. We
cannot, however, guarantee that telephone transfer privileges will be available
at all times. We will exercise reasonable care to prevent unauthorized telephone
transactions. For example, we will:
o Record calls requesting transfers.
o Ask the caller questions in an attempt to determine if you are
the caller.
o Transfer funds only to other Subaccounts and to the Fixed
Account.
o Send a written confirmation of each transfer.
If we use reasonable procedures and believe the instructions to be genuine, you
are at risk of loss if someone gives unauthorized or fraudulent information to
us.
The first twelve transfers in a Policy year are free. We may charge $10 for the
thirteenth and each additional transfer in a Policy year. We are currently
waiving this fee.
A request to transfer Subaccount Values to other Subaccounts and/or the Fixed
Account or from the Fixed Account to one or more Subaccounts which is received
before 3:00 p.m. Central Standard Time will take effect as of the day the it is
received. Transfer requests received after that time are processed as of the
following Valuation Day. All transfers requested on the same Valuation Day are
considered one transfer for purposes of the transfer fee.
We also permit transfer requests by facsimile transmission of a Written Request
provided that we have an original signed fax authorization from you. We reserve
the right to discontinue allowing telephone and fax transfers at any time and
for any reason. In the event we discontinue this privilege, we will send written
notice to all owners who have currently valid telephone and fax authorizations
on file. Such discontinuance will become effective on the fifth Valuation Day
following mailing of the notice by us.
We further reserve the right to restrict the ability to transfer Policy Value
among Subaccounts and/or the Fixed Account if we believe such action is
necessary to maintain the tax status of the Policies.
Dollar Cost Averaging
If elected at the time of the application or at any other time by Written
Request, you may systematically or automatically transfer (on a monthly,
quarterly, semi-annual or annual basis) specified dollar amounts from the Money
Market Subaccount to other Subaccounts. The fixed dollar amount will purchase
more Accumulation Units of a Subaccount when their value is lower and fewer
units when their value is higher. Over time, the cost per Accumulation Unit
averages out to be less than if all purchases had been made at the highest value
and greater than if all purchases had been made at the lowest value. The
dollar-cost averaging method of investment reduces the risk of making purchases
only when the price of Accumulation Units is high. It does not assure a profit
or protect against a loss in declining markets.
The minimum transfer amount for dollar-cost averaging is the equivalent of $100
per month. If less than $100 remains in the Money Market, the entire amount will
be transferred. The amount transferred to a Subaccount must be at least 5% of
the amount transferred and must be stated in whole percentages.
Once elected, dollar-cost averaging remains in effect until the earliest of: (1)
the Policy Value in the Money Market Subaccount is depleted to zero; (2) you
cancel the election (by Written request or by telephone if we have your
telephone authorization form on file); or (3) for three successive months, the
Policy Value in the Money Market Subaccount has been insufficient to implement
the dollar-cost averaging instructions you have given to us. We will notify you
when dollar-cost averaging is no longer in effect. There is no additional charge
for using dollar-cost averaging. We reserve the right to discontinue offering
dollar-cost averaging at any time and for any reason.
Automatic Personal Portfolio Rebalancing Service
If elected at the time of the application or requested at any time in writing,
you may instruct us to automatically transfer (on a monthly, quarterly,
semi-annual or annual basis) Policy Value between and among specified
Subaccounts in order to achieve a particular percentage allocation of Policy
Value among the Subaccounts. The percentage allocations must be in whole
percentages and must be at least 5% per allocation. You may start and stop
automatic Policy Value rebalancing at any time and may specify any percentage
allocation of Policy Value between or among as many Subaccounts as are available
at the time the rebalancing is elected. (If you elect automatic Policy Value
rebalancing without specifying percentage allocation(s), we will allocate Policy
Value in accordance with your currently effective premium payment allocation
schedule.) There is no additional charge for using Policy Value rebalancing.
Other Types of Automatic Transfers
If elected at the time of the application or at any other time by Written
Request, you may systematically or automatically transfer (on a monthly,
quarterly, semi-annual or annual basis) Policy Value from one Subaccount to
another. Such automatic transfer amounts may be requested on the following
basis: (1) as a specified dollar amount; (2) as a specified number of
accumulation units; (3) as a specified percent of variable Policy Value in a
particular Subaccount, or (4) in an amount equal to the excess of a Specified
Amount of variable Policy Value in a particular Subaccount.
The minimum automatic transfer amount is the equivalent of $100 per month. If
less than $100 remains in the Subaccount from which transfers are being made,
the entire amount will be transferred. The amount transferred to a Subaccount
must be at least 5% of the amount transferred and must be stated in whole
percentages. Once elected, automatic transfers remain in effect until the
earliest of: (1) the Policy Value in the Subaccount from which the transfers are
being made is depleted to zero; (2) you cancel the election in writing or by
telephone or fax if we have a telephone / fax authorization on file; or (3) for
three successive months, the Policy Value in the Subaccount from which transfers
are being made has been insufficient to implement the automatic transfer
instructions you have given us. We will notify you when automatic transfer
instructions are no longer in effect. There is no additional charge for using
automatic transfers. We reserve the right to discontinue offering automatic
transfers at any time and for any reason.
Surrender and Partial Withdrawals
Policy Surrender. You may Surrender the Policy for its Surrender Value. You must
obtain the written consent of all assignees or Irrevocable Beneficiaries before
a surrender. We may require the return of the Policy.
Surrender of the Policy is effective as of the date we receive a Written Request
for surrender. The Policy and all insurance terminate upon surrender.
Partial Withdrawal. You may make up to two Partial Withdrawals each Policy year
by Written Request. Written consent of all assignees or irrevocable
beneficiaries must be obtained prior to any Partial Withdrawal. An amount up to
the Policy Surrender Value, less two months of insurance charges, may be taken
as a Partial Withdrawal. Partial Withdrawals will be effective as of the date we
receive your Written Request. A Partial Withdrawal request for the full
Surrender Value will be considered a full surrender of the Policy.
You may specify the accounts from which the Partial Withdrawal, including the
service fee, will be deducted. If any account value is insufficient, or if you
do not specify the accounts, the amount will be deducted pro rata from the
remaining accounts.
If death benefit Option 1 is in effect at the time of a Partial Withdrawal, the
Specified Amount will be reduced by the amount of the Partial Withdrawal,
including the amount of the service fee. If death benefit Option 2 is in effect
at the time of a Partial Withdrawal, Specified Amount will not change. We
reserve the right to decline a Partial Withdrawal request if the remaining
Specified Amount would be below the minimum Specified Amount necessary to issue
a new Policy. If the Death Benefit derived from application of the Death Benefit
Percentage Factor applies, the effect of a Partial Withdrawal on the monthly
Cost of Insurance and Death Benefit is somewhat different. The Death Benefit is
then decreased by more than the amount surrendered, and the monthly Cost of
Insurance is less than it would have been without the surrender.
Payment is generally made within seven days of the surrender or Partial
Withdrawal date.
Maturity
The Policy matures on the Policy Anniversary following the Insured's 95th
birthday. Coverage under the Policy ceases on that date, and you will receive
maturity proceeds equal to the Surrender Value as of that date, unless the
maturity date has been extended, as allowed by state law.
Payment of Benefits/Settlement Options
Settlement options other than lump sum payments are, in our discretion,
available for Death Benefit Proceeds, surrender proceeds, and maturity proceeds,
payable to natural persons, subject to certain restrictions on Death Benefit
Proceeds. Proceeds payable to a non-natural person are available only under
settlement options we agree to. The four available settlement options are as
follows:
1) Interest Option. The proceeds may be left with us to collect
interest during the lifetime of the payee. We determine the interest
rate each year. It is guaranteed to be not less than the settlement
option rate of interest shown on the data page of the Policy. The payee
may choose to receive interest payments either once a year or once a
month (may not be available in all states) unless the amount of
interest to be paid monthly is less than $25 per month, or the total
amount deposited is less than $2,500, then interest will be paid
annually. The payee may withdraw any remaining proceeds, if this right
was given at the time the option was selected.
2) Installment Option. The proceeds may be left with us to provide
equal monthly installments for a specified period not less than 5 or
more than 30 years. If the original payee dies before payments have
been made for the chosen number of years; a.) payments will be
continued for the remainder of the period to the successor payee; or
b.) the present value of the remaining payments, computed at the
interest rate used to create the Option 2 rates, will be paid to the
successor payee or to the last surviving payee's estate, if there is no
successor payee. The interest we guarantee to pay is set forth in the
Policy. Additional interest, if any, will be payable as determined by
us. (May not be available in all states.)
3) Life Income - Guaranteed Period Certain. The proceeds may be left
with us to provide monthly installments for as long as the original
payee lives. A guaranteed period of 10 or 20 years may be selected.
Payments will cease when the original payee dies or at the end of the
guaranteed period, whichever is later. If the original payee dies
during the guaranteed period, the remaining guaranteed payments will be
paid to the successor payee or the successor payee may receive the
present value of the remaining payments computed at the interest rate
for this option.
4) Joint and Survivor Life. The proceeds may be left with us to provide
monthly installments for two payees for a guaranteed period of 10
years. After the 10-year period is over, payments will continue as long
as either of the original payees is living.
The minimum amount that can be applied under settlement options 2, 3 and 4 is
$2,500 or that amount which will provide an initial monthly installment of at
least $25.
We may, at our option, provide for additional settlement options or cease
offering any of the settlement options described above.
Policy Loans
General. At any time prior to the Maturity Date while the Insured is still
living and the Policy is In Force, you may, by Written Notice, borrow money from
us using the Policy as the security for the loan. [In taking a loan, you must
borrow at least $500.] The maximum amount that you may borrow is 90% of the Cash
Value of the Policy as of the date of the loan.
Interest. We charge interest on amounts that you borrow. The interest rate
charged is 6% and is an effective annual rate compounded annually on the Policy
Anniversary. Interest is charged in arrears from the date of the loan and is due
from you on each Policy Anniversary for the prior Policy Year. If you do not pay
the interest when due, the amount of the interest is added to the outstanding
Loan Amount. Thus, unpaid interest is charged interest during the ensuing Policy
Year. For Policies in the 11th Policy Year or later, we charge a preferred 4.5%
effective annual interest rate on amounts borrowed. We may charge interest at
lower rates from time to time.
We credit Loan Account Value with interest at an effective annual rate of 4%. On
each Policy Anniversary, interest earned on Loan Account Value since the
preceding Anniversary is transferred to the Subaccounts and the Fixed Account.
Unless you specify otherwise, such transfers are allocated in the same manner as
transfers of collateral to the Loan Account.
Loan Collateral. When we make a loan to you, we transfer an amount of Policy
Value sufficient to secure the loan out of the Subaccounts and the Fixed Account
and into the Loan Account. You may specify how this transferred Policy Value is
allocated from among the Subaccount Values and the Fixed Account Value. If you
do not specify the allocation, we make the allocation based on the proportion
that each Subaccount Value and the Fixed Account Value bear to the Policy Value
as of the date that the transfer is made. If unpaid interest is due from you on
a Policy Anniversary it is added to the Loan Amount. Policy Value in the amount
of the interest also is transferred to the Loan Account as of that Anniversary.
The Policy Value transferred in connection with unpaid interest is allocated on
the same basis as other Policy Value transferred to the Loan Account.
Loan Account Value is recalculated when interest is added to the Loan Amount, a
loan repayment is made, or a new loan is made under Policy.
Non-Payment Of Policy Loans. If Loan Account Value exceeds Cash Value, then you
must make either a loan repayment or a Net Premium payment sufficient to raise
the Cash Value or lower the Loan Account Value so that Cash Value exceeds the
Loan Account Value. We will send you and any assignee of record a notice
indicating the amount that must be paid. If payment is not received at the Home
Office [within 30 days of the notice being mailed], the Grace Period will begin.
(See "Lapse.") If the Grace Period expires without the payment being made, then
the Policy Lapses.
Loan Repayment. You may repay a loan or repay any part of a loan at any time
while the Insured is still living and the Policy is in force prior to the
Maturity Date. Upon repayment of any part of a loan, Loan Account Value in an
amount equal to the payment is transferred to the Subaccounts and the Fixed
Account as of the date that the payment is received by us. [Unless you specify
otherwise, the amount transferred is allocated among or between the Subaccounts
and the Fixed Account in accordance with your allocation instructions for Net
Premium Payments in effect at that time.]
Effect of a Policy Loan. A loan, whether or not repaid, has a permanent effect
on the Death Benefit and Policy values because the investment results of the
Subaccounts and current interest rates credited on Fixed Account Value do not
apply to Policy Value in the Loan Account. The larger the loan and longer the
loan is outstanding, the greater will be the effect of Policy Value being held
as collateral in the Loan Account. Depending on the investment results of the
Subaccounts or credited interest rates for the Fixed Account while the loan is
outstanding, the effect could be favorable or unfavorable. Policy loans also may
increase the potential for lapse if investment results of the Subaccounts to
which Surrender Value is allocated is unfavorable. If a Policy Lapses with loans
outstanding, certain amounts may be subject to income tax and a 10% penalty tax.
See "Tax Considerations," for a discussion of the tax treatment of Policy loans.
In addition, if a Policy is a "modified endowment contract," loans may be
currently taxable and subject to a 10% penalty tax.
Charges and Deductions
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Fund Charges. Charges made by the Funds are discussed in the Funds' prospectuses
and in their statements of additional information available from the address
shown on the first page of this prospectus.
Premium Expense Charge. We make a deduction from premiums for Premium Expense
Charges charged by your state of residence. We determine your state of residence
by the mailing address as shown on our records. The initial percentage of
reduction for state charges is shown on the data page of the Policy.
Monthly Deduction. The Monthly Deduction due on each Monthly Processing Day will
be the sum of:
o The Cost of Insurance for that month; plus
o The Policy Fee; plus
o The Administrative Fee; plus
o The cost of any additional benefits provided by rider, if any.
The Monthly Deduction is collected by redeeming the number of Accumulation Units
(or fraction of Accumulation Units) in Subaccounts (and/or withdrawing values
from the Fixed Account) in an amount equal to the Monthly Deduction.
Cost of Insurance. The Cost of Insurance rate for the Policy will be determined
by the Insured's Attained Age, sex, tobacco status, and rating class. (For
factors used in Non-gender Policies, see the Section entitled Non-gender
Policies.) Cost of Insurance rate charges will depend on our expectations as to
future mortality experience. Tobacco User rates are determined based on Age,
gender, and duration. Higher rates are charged if we determine that for some
reason the Insured is a higher mortality risk. The Tobacco User and Non-Tobacco
User rates are further classified as either preferred or standard based on
underwriting guidelines and principles. The monthly Cost of Insurance rate will
not exceed the rates shown in Table I - Guaranteed Maximum Insurance Rates
contained in the Policy. However, we may charge less than these rates. While not
guaranteeing to do so, we intend to charge less than the guaranteed maximum
insurance rates after the 10th Policy year. The guaranteed maximum insurance
rates are based on the 1980 CSO Mortality Tables, Age last birthday.
The Cost of Insurance is determined by multiplying the Cost of Insurance rate by
the Net Amount At Risk for a Policy. Under death benefit option 2, the Net
Amount At Risk is always the Specified Amount. Under death benefit option 1, the
Net Amount At Risk is the Specified Amount less the Policy Value. For a Policy
where there has been an increase in Specified Amount, the Cost of Insurance rate
applicable to the initial Specified Amount is usually different from that for
the increase. Likewise, there is a Net Amount At Risk associated with the
initial Specified Amount and the increase. The Net Amount At Risk for the
initial Specified Amount is multiplied by the Cost of Insurance rate for the
initial Specified Amount to determine the Cost of Insurance charge for the
initial Specified Amount and the Net Amount At Risk for the increase is
multiplied by the Cost of Insurance rate for the increase to determine the Cost
of Insurance for the increase. To compute the net amounts at risk after an
increase for a Policy with an option 1 death benefit, Policy Value is first used
to offset the initial Specified Amount, and any Policy Value in excess of the
initial Specified Amount is then used to offset the increase in Specified
Amount.
Policy Fee. The Policy Fee is $6 per month. It is a fee we charge to compensate
for some of the administrative expenses associated with the Policy. The fee
cannot be increased.
Administrative Charge. We assess an administrative charge of $.45 per thousand
dollars of Specified Amount per year on a monthly basis to reimburse us for some
of the administrative expenses associated with the Policy. The charge increases
if the Specified Amount increases in proportion to the amount of increase. The
charge does not decrease in the event of a Specified Amount decrease. This
charge is only charged during the first 10 Policy years of the Policy or, on an
increase in Specified Amount, during the first 10 Policy years after the
increase.
The Administrative Charge, together with the Policy Fee, is designed to
equitably distribute the administrative costs among all Policies.
Cost of Additional Benefits. The cost of additional benefits will include
charges for any additional insurance benefits added to the Policy by rider.
These charges are for insurance protection, and the amounts will be specified in
the Policy.
Mortality and Expense Risk Charge. We daily deduct a mortality and expense risk
charge of .00002466% of the Policy's Net Asset Value in the Separate Account
(and the Policy Value in the Fixed Account), which is equal on an annual basis
to 0.9%. The mortality risk assumed is that the Insured may not live as long as
expected. The expense risk assumed by us is that the actual expense will be
greater than what we expected. We have primary responsibility for all
administration for the Policy, the Separate Account and the Fixed Account. Such
administration includes, among other things, Policy issuance, underwriting,
maintenance of Policy records, Policy service, and all accounting, reserves
calculations, regulatory and reporting requirements, and audit of the Separate
Account. If proceeds from this charge are not needed to cover mortality and
expense risks, we may use proceeds to finance distribution of the Policies or
for any other lawful purpose.
Surrender Charges. To reimburse us for sales expenses and Policy issue expenses,
including but not limited to representatives' commissions, advertising, sales
materials, training allowances, and preparation of prospectuses, we deduct
Surrender Charges from the proceeds in the event of a complete surrender of the
Policy during the first nine years. If the Policy is not surrendered in the
first nine years there is no charge. A chart showing the percentage of Surrender
Charges remaining at the beginning of Policy years 2 through 9 is shown below.
The Surrender Charges vary by the Age of Insured, gender, and rating class. For
a 35-year-old male Non-Tobacco User, the charges would be $7.71 per $1,000 of
the Specified Amount. For a 50-year-old male Non-Tobacco User, the charges would
be $15.91 per $1,000 of Specified Amount. For a chart showing how the charges
vary, see Appendix B.
The Surrender Charges decrease annually after the first year. The percentage of
the Surrender Charges remaining in each Policy year is:
Beginning Percentage of
Policy Year Surrender Charges Remaining
----------- ---------------------------
2 95%
3 90%
4 85%
5 75%
6 65%
7 50%
8 35%
9 20%
10+ 0%
Transfer Fee. Currently, we allow an unlimited number of transfers in each
Policy year without charge. After twelve transfers in any given Policy year, we
may deduct $10 per transfer from the amount transferred.
Federal and State Income Taxes. Other than Premium Expense no charges are
currently made against the Separate Account and/or Fixed Account for federal or
state income taxes. In the event we determine that any such taxes will be
imposed, we may make deductions from the Separate Account and/or Fixed Account
to pay such taxes.
Duplicate Policy Charge. You can obtain a certification of your Policy at no
charge. There will be a $30 charge for a duplicate Policy.
Increase of Specified Amount Charge. We may assess a $100 charge for each
increase in Specified Amount after the first in a Policy year.
We currently intend to waive certain fees as stated above. We, however, reserve
the right to reinstate the fees and charges in the future.
Other Policy Benefits and Provisions
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Owner, Beneficiary
You are the person who purchases the Policy and is named in the application. You
may be other than the Insured.
You may name one or more Beneficiaries in the application. Beneficiaries may be
classified as primary or contingent. If no primary Beneficiary survives the
Insured, payment will be made to contingent Beneficiaries. Beneficiaries in the
same class will receive equal payments unless otherwise directed. A Beneficiary
must survive the Insured in order to receive his or her share of the Death
Benefit Proceeds. If a Beneficiary dies before the Insured dies, his or her
unpaid share is divided among the Beneficiaries who survive the Insured. The
unpaid share will be divided equally unless you direct otherwise. If no
Beneficiary survives the Insured, the Death Benefit Proceeds will be paid to
you, if living, or to your estate.
You may change the Beneficiary while the Insured is living. The written consent
of all Assignees and Irrevocable Beneficiaries must be obtained before a change.
To make a change, you must provide us with a Written Request satisfactory to us.
The request will not be effective until we record it. After the request is
recorded, it will take effect as of the date you signed the request. We will not
be responsible for any payment or other action taken before the request is
recorded. We may require the Policy be returned for endorsement of the
Beneficiary change.
Our Right to Contest the Policy
We have the right to contest the validity of the Policy or to resist a claim
under it on the basis of any material misrepresentation of a fact stated in the
application or any supplemental application. We also have the right to contest
the validity of any increase of Specified Amount or other change to the Policy
on the basis of any material misrepresentation of a fact stated in the
application (or supplemental application) for such increase in coverage or
change. In issuing this Policy, we rely on all statements made by or for the
Insured in the application or in a supplemental application. In the absence of
fraud, we consider statements made in the application(s) to be representations
and not warranties.
In the absence of fraud, we cannot bring any legal action to contest the
validity of the Policy after it has been in force during the lifetime of the
Insured for two years from the Policy Issue Date, or if reinstated, for two
years from the date of reinstatement. Likewise, we cannot contest any increase
in coverage effective after the Policy Issue Date, or any reinstatement thereof,
after such increase or reinstatement has been in force during the lifetime of
the Insured for two years from its effective date.
Right to Convert
You may convert this Policy to a fixed Policy during the first 24 months after
the Policy Issue Date. It may be converted to a fixed Policy by transferring,
without charge, the value in the Subaccounts to the Fixed Account unless state
law requires otherwise. If you do so, future payments will be allocated to the
Fixed Account, unless you specify otherwise. The conversion will become
effective when we receive your Written Request.
Transfer of Ownership
You may transfer ownership of the Policy. The written consent of all assignees
and Irrevocable Beneficiaries must be obtained before the transfer. The request
to transfer must be in writing and filed at the Home Office. The transfer will
take effect as of the date the notice was signed. We may require that the Policy
be sent in for endorsement to show the transfer of ownership.
We are not responsible for the validity or effect of any transfer of ownership.
We will not be responsible for any payment or other action we have taken before
receiving Written Request for transfer.
Collateral Assignments
You may assign the Policy as collateral security. The written consent of all
Irrevocable Beneficiaries must be obtained before an assignment. The assignment
must be in writing and filed at the Home Office. The assignment will then take
effect as of the date the Written Request was signed.
We are not responsible for the validity or effect of any collateral assignment.
We will not be responsible for any payment or other action we have taken before
receiving the written collateral assignment.
A collateral assignment takes precedence over the interest of a Beneficiary. Any
Policy proceeds payable to an assignee will be paid in one sum. Any remaining
proceeds will be paid to the designated Beneficiary or Beneficiaries.
A collateral assignee is not an Owner. A collateral assignee is a person or
entity to whom you give some, but not all ownership rights under the Policy. A
collateral assignment is not a transfer of ownership.
Effect of Misstatement of Age or Gender
For a Policy based on male or female cost of insurance rates (see data page for
basis), if the insured's age or gender has been misstated, an adjustment will be
made to reflect the correct age and gender as follows (unless a different result
is required by state law):
a. If the misstatement is discovered at death, the death benefit
amount will be adjusted based on what the cost of insurance rate as
of the most recent monthly processing day would have purchased at
the insured's correct age and gender.
b. If the misstatement is discovered prior to death, the cost of
insurance rate will be adjusted based on the insured's correct age
and gender beginning on the next monthly processing day.
For a Policy based on blended cost of insurance rates (see data page for basis),
a misstatement of gender will not result in an adjustment. However, if the
insured's age has been misstated, an adjustment will be made to reflect the
correct age as follows (unless a different result is required by state law):
a. If the misstatement is discovered at death, the death benefit
amount will be adjusted based on what the cost of insurance rate as
of the most recent monthly processing day would have purchased at
the insured's correct age.
b. If the misstatement is discovered prior to death, the cost of
insurance rate will be adjusted based on the insured's correct age
beginning on the next monthly processing day.
Suicide Exclusion
If the Insured commits suicide, while sane or insane, within two years of the
Policy Issue Date, our liability is limited to an amount equal to the Policy
Value less any Loan Amount. We will pay this amount to the Beneficiary in one
sum.
If the Insured commits suicide, while sane or insane, within two years from the
effective date of any increase in Specified Amount, our liability with respect
to that increase is limited to an amount equal to the cost of insurance
attributable to the increase from the effective date of the increase to the date
of death.
Dividends
While the Policy is In Force, it will share in our divisible surplus. We
determine the Policy's share annually. It is payable annually on the Policy
Anniversary. You may select to have dividends paid into the Subaccounts and the
Fixed Account as Net Premiums or to have dividends paid in cash. If no option is
selected, the dividends will be paid into Subaccounts and/or Fixed Account as
Net Premiums. We currently do not expect to pay dividends during the first 10
Policy Years. For each of Policy years 11-20, we project annual dividends equal
to 0.70% of the Policy Value at the end of the Policy year. For each Policy year
21 and after we project annual dividends equal to 1.10% of the Policy Value at
the end of the Policy year. These dividends are not guaranteed. They are
reflected in Illustrations 1, 3, 5 and 7 of Appendix A.
Suspension of Payments
For amounts allocated to the Separate Account, we may suspend or postpone the
right to transfer among Subaccounts, make a surrender or Partial Withdrawal, or
take a Policy loan when:
1. The New York Stock Exchange is closed other than for customary
weekend and holiday closings.
2. During periods when trading on the Exchange is restricted as
determined by the SEC.
3. During any emergency as determined by the SEC which makes it
impractical for the Separate Account to dispose of its securities
or value its assets.
4. During any other period permitted or required by order of the SEC
for the protection of investors.
To the extent values are allocated to the Fixed Account, the payment of full or
Partial Withdrawal proceeds or loan proceeds may be deferred for up to six (6)
months from the date of the surrender or loan request, unless state law requires
exception to the period of deferment. Death Benefit Proceeds may be deferred for
up to 60 days from the date we receive proof of death.
Accelerated Benefit Option
We will advance up to 50% of a Policy's eligible death benefit, subject to a
$250,000 maximum per Insured, if we receive satisfactory proof that the Insured
is terminally ill and if you elect to receive an accelerated payment of the
death benefit. Terminal illness is a non-correctable medical condition in which
the Insured's life expectancy is no more than twelve months. Policy Value is
excluded from the calculation of the eligible death benefit. If you elect to
receive an accelerated benefit, we will assess an administrative charge (of no
more than $300) and will deduct interest on the amount being accelerated. As a
result, the amount payable to the Beneficiary at death is reduced by an amount
greater than the amount you receive as an accelerated benefit. The accelerated
benefit is available only in states which have approved the Endorsement and may
vary from state to state. The tax consequences of accelerated benefits is
uncertain and a tax advisor should be consulted.
Reports To Owners. We will confirm any of the following within seven days:
o The receipt of any Net Premium (except premiums received before
Policy Issue Date or by preauthorized check).
o The receipt of any instructions to change allocation of Net Premiums.
o Any transfer between Subaccounts; any loan, interest repayment, or
loan repayment; any Partial Withdrawal; any return of premium
necessary to comply with applicable maximum premium limitations.
o Any restoration to Policy Value following exercise of the
right-to-examine privilege for an increase in Specified Amount.
o Exercise of the right-to-examine privilege.
o An exchange of the Policy or increase in Specified Amount.
o Full surrender of the Policy.
o Payment of Death Benefit Proceeds.
We will also mail to you, at your last known address of record, a report
containing such information as may be required by any applicable law or
regulation, and a statement for the Policy year showing all transactions
previously confirmed and any credit to the Separate Account of interest on
amounts held in the Loan Account.
Voting Rights. We will vote Fund shares held in the Separate Account at regular
and special shareholder meetings of the underlying funds in accordance with
instructions received from persons having voting interests in the corresponding
Subaccounts. We will vote shares for which it has not received timely
instructions and shares attributable to Policies sold to employee benefit plans
not registered pursuant to an exemption from the registration provisions of the
Securities Act of 1933, in the same proportion as we vote shares for which it
has received instructions. If, however, the 1940 Act or any regulation
thereunder should be amended, or if the present interpretation thereof should
change, or we otherwise determine that it is allowed to vote the shares in its
own right, it may elect to do so.
You have the voting interest under a Policy. The number of votes you have a
right to instruct will be calculated separately for each Subaccount. You have
the right to instruct one vote for each $1 of Policy Value in the Subaccount
with fractional votes allocated for amounts less than $1. The number of votes
you have available will coincide with the date established by the fund for
determining shareholders eligible to vote at the relevant meeting of the Fund's
shareholders. Voting instructions will be solicited by written communication
before such meeting in accordance with procedures established by the funds. Each
owner having a voting interest in a Subaccount will receive proxy materials and
reports relating to any meeting of shareholders of the fund in which that
Subaccount invests.
We may, when required by state insurance regulatory authorities, vote shares of
a fund without regard to voting instructions from owners, if the instructions
would require that the shares be voted so as to cause a change in the
sub-classification of a fund, or investment objectives of a fund, or to approve
or disapprove an investment advisory contract for a fund. In addition, we may,
under certain circumstances, vote shares of a fund without regard to voting
instructions from owners in favor of changes initiated by owners in the
investment Policy, or the investment adviser or the principal underwriter of a
Fund. For example, we may vote against a change if we in good faith determine
that the proposed change is contrary to state or federal law or we determine
that the change would not be consistent with the investment objectives of a fund
and would result in the purchase of securities for the Separate Account which
vary from the general quality and nature of investments and investment
techniques used by our other Separate Accounts.
Riders and Endorsements
- --------------------------------------------------------------------------------
A rider attached to a Policy adds additional insurance and benefits. The rider
explains the coverage it offers. A rider is available only in states which have
approved the rider. A rider may vary from state to state. Some riders are not
available to Policies sold to employee benefit plans. The cost for riders is
deducted as a part of the Monthly Deduction. Riders are subject to normal
underwriting requirements. We reserve the right to stop offering the riders
mentioned below and to offer additional riders.
Children's Insurance. The rider provides level term insurance to Children of the
Insured up to the earlier of Age 23 of the child or Age 65 for the Insured. The
death benefit will be payable to the Beneficiary stated in the rider upon the
death of any Insured child. If the Insured parent dies before termination of
this rider, the coverage on each child becomes paid-up term insurance to Age 23.
This rider may be converted to a new Policy without evidence of insurability on
each Insured child's 23rd birthday or at Age 65 of the person insured under the
Policy to which the rider is attached, if sooner.
Guaranteed Insurability. The rider provides that additional insurance may be
purchased on the life of the Insured on specific future dates at standard rates
without evidence of insurability. It is issued only to standard or preferred
risks. It may be issued until the Policy Anniversary following the Insured's
37th birthday.
Accidental Death Benefit. The rider provides for the payment of an additional
death benefit on the life of the Insured should death occur due to accidental
bodily injury occurring before Age 70. The premium for the Accidental Death
Benefit is payable to Age 70.
Other Insured. This rider provides additional level term insurance. The "other
Insured" could be the Insured (except in states where it is not allowed by law)
or could be another person within the immediate family of the Insured. The death
benefit expires on the "other Insured's" 95th birthday or upon termination of
the Policy, whichever comes first. Evidence of insurability is required for
issuance of the rider or to increase the amount of the death benefit. The rider
may be issued until the Policy Anniversary following the Insured's 65th
birthday.
Waiver of Premium Disability. This rider provides that, during the Insured's
total disability, we will waive Monthly Deduction for administrative and life
insurance costs or Basic Guarantee Premium, if greater. The rider may be issued
until the Policy Anniversary following the Insured's 55th birthday. It may be
renewed until the Policy Anniversary following the Insured's 65th birthday.
Executive Benefits Plan Endorsement. This endorsement is available on policies
issued in conjunction with certain types of deferred compensation and/or
employee benefits plans. The executive benefits plan endorsement waives the
Surrender Charges on the Policy to which it is attached subject to the following
conditions:
1. The Policy is surrendered and the proceeds are used to fund a new Policy
provided through CUNA Mutual Life Insurance Company or an affiliate.
2. The Policy is owned by a business or trust.
3. The new Policy is owned by the same entity.
4. The insured under the Policy is a selected manager or a highly
compensated employee (as those terms are defined by Title 1 of the
Employee Retirement Income Security Act, as amended).
5. The insured under the new contract is also a selected manager or highly
compensated employee.
6. We receive an application for the new contract (and have evidence of
insurability satisfactory to us).
There is no charge for this benefit. However, if you exercise this benefit
during the first two contract (Policy) years, we reserve the right to charge a
fee to offset expenses incurred. This fee will not exceed $150. The Executive
Benefits Plan Endorsement may not be available in all states.
Federal Income Tax Considerations
- --------------------------------------------------------------------------------
Introduction
The following summary provides a general description of the federal income tax
considerations associated with the Policy and does not purport to be complete or
to cover all tax situations. This discussion is not intended as tax advice.
Counsel or other competent tax advisors should be consulted for more complete
information. This discussion is based upon our understanding of the present
federal income tax laws. No representation is made as to the likelihood of
continuation of the present federal income tax laws or as to how they may be
interpreted by the Internal Revenue Service.
Tax Status of the Policy
In order to qualify as a life insurance contract for federal income tax purposes
and to receive the tax treatment normally accorded life insurance contracts
under federal tax law, a Policy must satisfy certain requirements which are set
forth in the Internal Revenue Code. Guidance as to how these requirements should
be applied is limited. Nevertheless, we believe that Policies issued on a
standard premium class basis should satisfy the applicable requirements. There
is less guidance, however, with respect to Policies issued on a substandard
basis, and it is not clear whether such Policies will in all cases satisfy the
applicable requirements, particularly if you pay the full amount of premiums
permitted under the Policy. If it is subsequently determined that a Policy does
not satisfy the applicable requirements, we may take appropriate steps to bring
the Policy into compliance with such requirements and we reserve the right to
restrict Policy transactions in order to do so.
In certain circumstances, owners of variable universal life insurance contracts
have been considered for federal income tax purposes to be the owners of the
assets of the separate account supporting their contracts due to their ability
to exercise investment control over those assets. Where this is the case, the
contract owners have been currently taxed on income and gains attributable to
the separate account assets. There is little guidance in this area, and some
features of the Policies, such as the flexibility of an owner to allocate
premium payments and Policy Value and the narrow investment objective of certain
Funds, have not been explicitly addressed in published rulings. While we believe
that the Policies do not give you investment control over Separate Account
assets, we reserve the right to modify the Policies as necessary to prevent you
from being treated as the owner of the Separate Account assets supporting the
Policy.
In addition, the Code requires that the investments of the Separate Accounts be
"adequately diversified" in order for the Policies to be treated as life
insurance contracts for federal income tax purposes. It is intended that the
Separate Accounts, through the Funds, will satisfy these diversification
requirements.
The following discussion assumes that the Policy will qualify as a life
insurance contract for federal income tax purposes.
Tax Treatment of Policy Benefits
In General. We believe that the death benefit under a Policy should be
excludible from the gross income of the beneficiary.
Federal, state and local transfer, estate, inheritance, and other tax
consequences of ownership or receipt of Policy proceeds depend on the
circumstances of each Owner or beneficiary. A tax advisor should be consulted on
these consequences.
Generally, you will not be deemed to be in constructive receipt of the Policy
Value until there is a distribution. When distributions from a Policy occur, or
when loans are taken out from or secured by a Policy, the tax consequences
depend on whether the Policy is classified as a "Modified Endowment Contract."
Modified Endowment Contracts. Under the Internal Revenue Code, certain life
insurance contracts are classified as "Modified Endowment Contracts," with less
favorable tax treatment than other life insurance contracts. Due to the
flexibility of the Policies as to premiums and benefits, the individual
circumstances of each Policy will determine whether it is classified as a
Modified Endowment Contract. The rules are too complex to be summarized here,
but generally depend on the amount of premiums paid during the first seven
Policy years or seven years following a material change to the Policy. Certain
changes in a Policy after it is issued could also cause it to be classified as a
Modified Endowment Contract. A current or prospective Owner should consult with
a competent advisor to determine whether a Policy transaction will cause the
Policy to be classified as a Modified Endowment Contract.
Distributions Other Than Death Benefits from Modified Endowment Contracts.
Policies classified as Modified Endowment Contracts are subject to the following
tax rules:
All distributions other than death benefits from a Modified Endowment Contract,
including distributions upon surrender and Partial Withdrawals, are treated
first as distributions of gain taxable as ordinary income and as tax-free
recovery of your investment in the Policy only after all gain has been
distributed.
Loans taken from or secured by a Policy classified as a Modified Endowment
Contract are treated as distributions and taxed in same manner as surrenders and
Partial Withdrawals.
A 10 percent additional income tax is imposed on the amount subject to tax
except where the distribution or loan is made when you have Attained Age 59 1/2
or are disabled, or where the distribution is part of a series of substantially
equal periodic payments for your life (or life expectancy) or the joint lives
(or joint life expectancies) of the your and your beneficiary or designated
beneficiary.
Distributions Other Than Death Benefits from Policies that are not Modified
Endowment Contracts. Distributions other than death benefits from a Policy that
is not classified as a Modified Endowment Contract are generally treated first
as a recovery of your investment in the Policy and only after the recovery of
all investment in the Policy as taxable income. However, certain distributions
which must be made in order to enable the Policy to continue to qualify as a
life insurance contract for federal income tax purposes if Policy benefits are
reduced during the first 15 Policy years may be treated in whole or in part as
ordinary income subject to tax.
Loans from or secured by a Policy that is not a Modified Endowment Contract are
generally not treated as distributions. However, the tax consequences associated
with Policy loans after the later of the 10th Policy Anniversary or Attained Age
65 is less clear and a tax advisor should be consulted about such loans.
Finally, neither distributions from nor loans from or secured by a Policy that
is not a Modified Endowment Contract are subject to the 10 percent additional
income tax.
Investment in the Policy. Your investment in the Policy is generally the
aggregate premium payments. When a distribution is taken from the Policy, your
investment in the Policy is reduced by the amount of the distribution that is
tax-free.
Policy Loans. In general, interest on a Policy loan will not be deductible.
Before taking out a Policy loan, you should consult a tax advisor as to the tax
consequences.
Multiple Policies. All Modified Endowment Contracts that are issued by us (or
our affiliates) to the same owner during any calendar year are treated as one
Modified Endowment Contract for purposes of determining the amount includible in
your income when a taxable distribution occurs.
Accelerated Death Benefit Rider. The federal income tax consequences associated
with the Accelerated Benefit Option Endorsement are uncertain. You should
consult a qualified tax advisor about the consequences of requesting payment
under this Endorsement. (See page 29 for more information regarding the
Endorsement.)
Special Rules for Pension and Profit-Sharing Plans
If a Policy is purchased by a pension or profit-sharing plan, or similar
deferred compensation arrangement, the federal, state and estate tax
consequences could differ. A competent tax advisor should be consulted in
connection with such a purchase.
The amounts of life insurance that may be purchased on behalf of a participant
in a pension or profit-sharing plan are limited. The current cost of insurance
for the Net Amount At Risk is treated as a "current fringe benefit" and must be
included annually in the plan participant's gross income. We report this cost
(generally referred to as the "P.S. 58" cost) to the participant annually. If
the plan participant dies while covered by the plan and the Policy proceeds are
paid to the participant's beneficiary, then the excess of the death benefit over
the Policy Value is not taxable. However, the cash value will generally be
taxable to the extent it exceeds the participant's cost basis in the Policy.
Policies owned under these types of plans may be subject to restrictions under
the Employee Retirement Income Security Act of 1974 ("ERISA"). You should
consult a qualified advisor regarding ERISA.
Department of Labor ("DOL") regulations impose requirements for participant
loans under retirement plans covered by ERISA. Plan loans must also satisfy tax
requirements to be treated as nontaxable. Plan loan requirements and provisions
may differ from Policy loan provisions. Failure of plan loans to comply with the
requirements and provisions of the DOL regulations and of tax law may result in
adverse tax consequences and/or adverse consequences under ERISA. Plan
fiduciaries and participants should consult a qualified advisor before
requesting a loan under a Policy held in connection with a retirement plan.
Business Uses of the Policy
Businesses can use the Policy in various arrangements, including nonqualified
deferred compensation or salary continuance plans, split dollar insurance plans,
executive bonus plans, tax exempt and nonexempt welfare benefit plans, retiree
medical benefit plans and others. The tax consequences of such plans may vary
depending on the particular facts and circumstances. If you are purchasing the
Policy for any arrangement the value of which depends in part on its tax
consequences, you should consult a qualified tax advisor. In recent years,
moreover, Congress has adopted new rules relating to life insurance owned by
businesses. Any business contemplating the purchase of a new Policy or a change
in an existing Policy should consult a tax advisor.
Possible Tax Law Changes
Although the likelihood of legislative changes is uncertain, there is always the
possibility that the tax treatment of the Policy could change by legislation or
otherwise. Consult a tax advisor with respect to legislative developments and
their effect on the Policy.
The Company's Taxes
Under current federal income tax law, we are not taxed on the Separate Account's
operations. Thus, currently we do not deduct charges from the Separate Account
for its federal income taxes. We reserve the right to charge the Separate
Account for any future federal income taxes that it may incur.
Under current laws in several states, we may incur state and local taxes (in
addition to Premium Expense Charges). These taxes are not now significant and we
are not currently charging for them. If they increase, we may deduct charges for
such taxes.
CUNA Mutual Life Insurance Company Directors and Executive Officers
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Name Occupation
Directors
<S> <C> <C>
James C. Barbre 1994-Present ACT Technologies, Inc.
President/Chief Operating Officer
1985-1993 Self-employed consultant in carpet
Manufacturing and distribution in Dalton, GA
Robert W. Bream 1991-Present United Airlines Employees Credit Union
President/Chief Executive Officer
Wilfred F. Broxterman 1997-Present Broxterman Group
President/Chief Executive Officer
1989-1997 Hughes Aircraft Employees Federal Credit Union
President/Chief Executive Officer
James L. Bryan 1974-Present Texans Credit Union
President/Chief Executive Officer
Loretta M. Burd 1987-Present Centra Credit Union
President/Chief Executive Officer
Ralph B. Canterbury 1965-Present US Airways Federal Credit Union
President
Joseph N. Cugini 1959-Present Westerly Community Credit Union
President/Chief Executive Officer
Rudolf J. Hanley 1982-Present Orange County Teachers Federal Credit Union
President/Chief Executive Officer
Jerald R. Hinrichs 1990-Present Hinrichs & Associates
Insurance Marketing Consultants
Owner/President
Michael B. Kitchen 1995-Present CUNA Mutual Life Insurance Company*
President and Chief Executive Officer
1992-1995 The CUMIS Group Limited
President/Chief Executive Officer
Robert T. Lynch 1996-Present Retired
1970-1996 Detroit Teachers Credit Union
Treasurer/General Manager
Brian L. McDonnell 1977-Present Navy Federal Credit Union
President/Chief Executive Officer
C. Alan Peppers 1992-Present Denver Public Schools Credit Union
President/Chief Executive Officer
Omer K. Reed 1997-Present Retired
1959-1997 Self-employed dentist
Richard C. Robertson 1959-Present Arizona State Savings & Credit Union
President/General Manager
Rosemarie M. Shultz 1997-Present Retired
1976-1997 North Coast Credit Union
President/Chief Executive Officer
Neil A. Springer 1994-Present Springer & Associates, L.L.C.
Managing Director
1992-1994 Slayton International, Inc.
Senior Vice President
Farouk D.G. Wang 1987-Present University of Hawaii at Manoa
Director of Buildings and Grounds Management
Larry T. Wilson 1974-Present Coastal Federal Credit Union
President/Chief Executive Officer
Executive Officers
Wayne A. Benson 1997 - Present CUNA Mutual Life Insurance Company*
Chief Officer - Sales
Michael S. Daubs 1973-Present CUNA Mutual Life Insurance Company*
Chief Officer - Investments
CIMCO Inc.
President
John A. Gibson 1988-Present CUNA Mutual Life Insurance Company*
Chief Officer - Marketing
James M. Greaney 1998-Present CUNA Mutual Life Insurance Company*
Chief Officer - Corporate Services
Richard J. Keintz 1979-Present CUNA Mutual Life Insurance Company*
Chief Officer - Finance and Information Services
Michael B. Kitchen 1995-Present CUNA Mutual Life Insurance Company*
President and Chief Executive Officer
1992-1995 The CUMIS Group Limited
President and Chief Executive Officer
Reid A. Koenig 1999-Present CUNA Mutual Life Insurance Company
Chief Officer - Operating
1994-Present Vice President - Members Services
Daniel E. Meylink, Sr. 1983-Present CUNA Mutual Life Insurance Company*
Chief Officer - Member Services
Kevin G. Shea 1976-Present CUNA Mutual Life Insurance Company*
Chief Officer - Lending Services
John M. Waggoner 1977-Present CUNA Mutual Life Insurance Company*
Chief Officer - Legal
<FN>
*We entered into a permanent affiliation with the CUNA Mutual on July 1,
1990. Those persons marked with an "*" hold identical titles with CUNA
Mutual. The most recent position has been given for those persons who have
held more than one position with the Company or CUNA Mutual Insurance
Society during the last five year period. Each person has business
addresses at both 2000 Heritage Way, Waverly, Iowa 50677-9202, and 5910
Mineral Point Road, Madison, Wisconsin 53705-4456.
</FN>
</TABLE>
Additional Information
- --------------------------------------------------------------------------------
Addition, Deletion Or Substitution Of Investments
We reserve the right, to make additions to, deletions from, or substitutions for
the shares of a Fund that are held in the Separate Account or that the Separate
Account may purchase. If the shares of a Fund are no longer available for
investment or if, in our judgment, further investment in any Fund should become
inappropriate, we may redeem the shares, if any, of that Fund and substitute
shares of another Fund. To the extent required by the 1940 Act or other
applicable law, we will not substitute any shares attributable to a Policy's
interest in a Subaccount without notice and prior approval of the SEC and state
insurance authorities.
We also reserve the right to establish additional Subaccounts of the Separate
Account, each of which would invest in shares of a new corresponding Fund having
a specified investment objective. We may, in its sole discretion, establish new
Subaccounts or eliminate or combine one or more Subaccounts if marketing needs,
tax considerations or investment conditions warrant. Any new Subaccounts may be
made available to existing Owners on a basis to be determined by us. Subject to
obtaining any approvals or consents required by applicable law, the assets of
one or more Subaccounts may be transferred to any other Subaccount if, in our
sole discretion, marketing, tax, or investment conditions warrant.
In the event of any such substitution or change, we (by appropriate endorsement,
if necessary) may change the Policy to reflect the substitution or change.
Affected Owners will be notified of such a material substitution or change. If
you object to the change, you may exchange the Policy for a fixed benefit whole
life insurance policy then issued by us. The new Policy will be subject to
normal underwriting rules and other conditions determined by us. No evidence of
insurability will be necessary. The option to exchange must be exercised within
sixty (60) days of notification to you of the investment Policy change. You may
also Surrender the Policy.
If we consider it to be in the best interest of Owners, and subject to any
approvals that may be required under applicable law, the Separate Account may be
operated as a management investment company under the 1940 Act, it may be
deregistered under the 1940 Act if registration is no longer required, it may be
combined with other Company separate accounts, or its assets may be transferred
to another separate account of ours. In addition, we may, when permitted by law,
restrict or eliminate any voting rights of Owners or other persons who have such
rights under the Policies.
State Regulation
We are subject to the laws of Iowa governing insurance companies and to
regulation by the Iowa Insurance Department. An annual statement in a prescribed
form is filed with the Insurance Department each year covering our operations
for the preceding year and our financial condition as of the end of such year.
Regulation by the Insurance Department includes periodic examination to
determine our liabilities and reserves so that the Insurance Department may
certify the items are correct. Our books and accounts are subject to review by
the Insurance Department at all times and a full examination of its operations
is conducted periodically by the National Association of Insurance
Commissioners. Such regulation does not, however, involve any supervision of
management or investment practices or policies. In addition, we are subject to
regulation under the insurance laws of other jurisdictions in which it may
operate.
Legal Proceedings
Us and our subsidiaries, like other life insurance companies, are involved in
lawsuits, including class action lawsuits. In some class action and other
lawsuits involving insurers, substantial damages have been sought and/or
material settlement payments have been made. Although the outcome of any
litigation cannot be predicted with certainty, we believe that at the present
time there are not pending or threatened lawsuits that are reasonably likely to
have a material adverse impact on the Separate Account or the Company.
Independent Auditors
The financial statements included herein and elsewhere in the Registration
Statement have been included in reliance upon the reports of Price Waterhouse
Coopers, [ ], independent auditors, and upon the authority of said firm as
experts in accounting and auditing.
Actuarial Matters
Actuarial matters included in this prospectus have been examined by Scott Allen,
FSA, MAAA Product Manager Variable Products, CUNA Mutual Life Insurance Company,
Waverly, Iowa, as stated in the opinion filed as an exhibit to the Registration
Statement.
Registration Statement
A Registration Statement under the Securities Act of 1933 relating to this
offering has been filed with the SEC. Certain portions of the Registration
Statement and amendments have been omitted from this prospectus pursuant to the
rules and regulations of the Securities and Exchange Commission. Statements
contained in this prospectus concerning the Policy and other legal documents are
summaries. The complete documents and omitted information may be obtained from
the SEC's principal office in Washington, D.C.
Preparing For Year 2000
Like all financial service providers, the Company and its affiliates utilize
systems that may be affected by Year 2000 transition issues, and they rely on
service providers, including administrators and investment managers, that also
may be affected. The Company and its affiliates have developed, and are in the
process of implementing, a Year 2000 readiness plan, and are confirming that its
service providers are also so engaged. The resources that are being devoted to
this effort are substantial. It is difficult to predict with precision whether
the amount of resources ultimately devoted, or the outcome of these efforts will
have a negative impact on us or our affiliates. However, as of the date of this
prospectus, it is not anticipated that Owners will experience negative effects
on their investment, or on the services provided in connection therewith, as a
result of Year 2000 readiness implementation. As of the date of this prospectus,
the Company and its affiliates believe that all of their critical systems are
Year 2000 ready, but there can be no assurance that we were successful, or that
interaction with other service providers will not impair the Company's or its
affiliates' services at that time. We will be testing the remainder of our
systems through out 1999, and will have continuity plans in place designed to
minimize the impact of any unforeseen failures.
Distribution Of Policies
Questions regarding the Policy should be directed to CUNA Brokerage Services,
Inc., Office of Supervisory Jurisdiction, 2000 Heritage Way, Waverly, Iowa,
50677-9202, (800) 798-5500, (319) 352-4090. Its IRS employer identification
number is 39-1438257. CUNA Brokerage Services, Inc. is wholly-owned by CUNA
Mutual Investment Corporation which in turn is wholly-owned by CUNA Mutual. CUNA
Brokerage Services, Inc., 5910 Mineral Point Road, Madison, Wisconsin,
53705-4456, the principal underwriter for the Policy is a broker/dealer
registered under the Securities Exchange Act of 1934 and a member of the
National Association of Securities Dealers. CUNA Mutual Life Insurance Company,
the issuer of the Policy, entered into a permanent affiliation with CUNA Mutual
on July 1, 1990. The Policies will be sold through registered representatives
who will be paid first-year and renewal commissions for their services.
We may pay sales commissions to broker-dealers up to an amount equal to 8.5% of
the total premiums paid under the Policy. These broker-dealers are expected to
compensate sales representatives in varying amounts from these commissions. We
may also pay other distribution expenses such as agents' insurance and pension
benefits, agency expense allowances, and overhead attributable to distribution.
In addition, we may from time to time pay or allow additional promotional
incentives in the form of cash or other compensation. These distribution
expenses do not result in any additional charges under the Contracts that are
not described under CHARGES AND DEDUCTIONS.
Financial Statements
- --------------------------------------------------------------------------------
Our financial statements are immediately following the financial statements of
the Separate Account. Our financial statements should be considered only as
bearing upon our ability to meet our obligations under the Policy and should not
be considered as bearing on the investment performance of the Separate Account.
CUNA MUTUAL LIFE VARIABLE ACCOUNT
Financial Statements
CUNA MUTUAL LIFE INSURANCE COMPANY
Financial Statements and Supplementary Information
Appendix A - Illustrations of Policy Values and Death Benefits
- --------------------------------------------------------------------------------
The following tables have been prepared to help show how values under the Policy
can change with investment performance. At your request, we will provide an
illustration based upon your Age, planned premium payments and other factors.
The illustrations are based on the following five factors. (The upper right hand
corner of each illustration identifies those factors.)
1. Age at issue - Some show Age 35. Others show Age 50.
2. Planned annual premium - The premium illustrated is $1,200 or $2,500.
3. Cost of Insurance - Some show the mortality rates currently being
charged. Others show the guaranteed rate (the maximum rate the
Policy allows us to charge).
4. Projected Dividends - Illustrations based on current mortality
rates include projected dividends. Illustrations based on
guaranteed mortality rates do not.
5. Choice of death benefit option - Some show option 1 and others show
option 2.
Factors That Do Not Vary
All the illustrations make the following assumptions:
o The Insured is a non Tobacco User.
o The Specified Amount of coverage is $100,000.
o Planned premiums are paid on the first day of the Policy year for
30 years.
o No loans are taken.
o No Partial Withdrawals are made.
o All Net Premium is allocated to the Separate Account and invested
equally in each Fund. o No changes are made to the Specified Amount.
o No transfer fees are incurred.
o The Policy has no riders.
o The charge for state Premium Expense Charge is 2%.
o No federal income tax is paid.
Effect of Hypothetical Investment Returns
To show how investment return affects Policy values, the tables illustrate three
different hypothetical rates of return. The tables show gross annual rates of
return of 0%, 6% and 12%, which produce approximate net annual rates of return
of -1.64%, 4.36% and 10.36%, respectively. Net returns are lower than gross
returns due to charges made by the Separate Account and by the underlying funds.
Charges are expressed as a percentage of average daily net assets.
The table below shows for each Subaccount the total of the mortality and expense
fee and the underlying series level fees.
<TABLE>
<CAPTION>
Mortality & Expense Fund Fees* Total
<S> <C> <C> <C>
Capital Appreciation Stock .90 .81 1.71
Growth and Income Stock .90 .61 1.51
Balanced .90 .71 1.61
Bond .90 .56 1.46
Money Market .90 .46 1.36
T. Rowe Price International Stock .90 1.05 1.95
MFS Global Governments .90 1.00 1.90
MFS Emerging Growth .90 0.87 1.77
Oppenheimer High Income
Templeton Developing Markets
Average [.90 .72 1.62]
<FN>
* The illustrations on the following pages are computed using the average
(1.62) total expense across the Subaccounts for last year. The Fund Fees are
the expenses incurred by each Fund during the most recent fiscal year. The
prospectus and statement of additional information for each Fund more fully
discusses its expenses. Certain expenses of the MFS Global Governments Fund
were reimbursed by the Fund's investment adviser during 1998. Pursuant to an
agreement between the Fund and its investment adviser, the reimbursement
will continue past the current fiscal year. Absent the expense
reimbursement, the MFS Global Governments Fund expenses (Fund Fees) would
have been 1.15%.
</FN>
</TABLE>
How Varying a Factor Affects Hypothetical Investment Returns
Changing any factor in the illustrations would change many numbers throughout
the table. For example, illustrated values would be different if the Insured
were a different Age, a different risk classification, or if Non-gender
mortality rates were used. Policy values would change if premiums were paid at
different times or in different amounts or if investment rates of return
fluctuated up and down. Policy values based on current mortality charges would
be lower if we did not pay the dividends it has projected but not guaranteed.
(Dividends are expected to be $39 beginning in Policy year 11, plus .70% of
average Policy Value during Policy years 11-20 and 1.10% beginning in Policy
year 21.) Policy values would be lower if more expenses were paid. Expenses vary
by each underlying fund portfolio and each has the right to change its charge in
the future. The illustrations do not show any charges for federal income taxes.
If in the future taxes were due, gross annual rates of return would have to
exceed 0%, 6% and 12% by an amount sufficient to cover the charge for taxes in
order to produce the Policy values shown.
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERS(R) Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 1
<TABLE>
<CAPTION>
Male Non Tobacco User Age at Issue: 35
Specified Amount: $100,000 Annual Premium: $1,200
Planned Premium Payable Annually for: 30 years Based on: Current Mortality Charges
Policy Loans and Partial Withdrawals: None Projected Dividends: Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 1*
------- ------------- ---------------------------------- ----------------------------------- =====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Year Per Year
---------------------------------- ----------------------------------- =====================================
Death Accum Net Death Accum Net Death Accum Value Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Cash Value
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ----------- ------------ ============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,260 100,000 871 100 100,000 932 161 100,000 994 223
2 2,583 100,000 1,721 988 100,000 1,898 1,166 100,000 2,083 1,351
3 3,972 100,000 2,546 1,852 100,000 2,896 2,202 100,000 3,275 2,581
4 5,431 100,000 3,347 2,692 100,000 3,926 3,271 100,000 4,580 3,925
5 6,962 100,000 4,123 3,545 100,000 4,990 4,412 100,000 6,010 5,431
6 8,570 100,000 4,873 4,372 100,000 6,086 5,585 100,000 7,574 7,073
7 10,259 100,000 5,595 5,209 100,000 7,216 6,831 100,000 9,287 8,902
8 12,032 100,000 6,289 6,019 100,000 8,380 8,111 100,000 11,165 10,895
9 13,893 100,000 6,954 6,800 100,000 9,579 9,425 100,000 13,223 13,069
10 15,848 100,000 7,590 7,590 100,000 10,813 10,813 100,000 15,481 15,481
15 27,189 100,000 11,734 11,734 100,000 19,308 19,308 100,000 32,806 32,806
20 41,663 100,000 15,234 15,234 100,000 29,777 29,777 100,000 61,902 61,902
25 60,136 100,000 18,190 18,190 100,000 43,473 43,473 151,177 112,818 112,818
30 83,713 100,000 19,803 19,803 100,000 60,847 60,847 242,899 199,098 199,098
======= ============= ============ ========= =========== ============ ========= ============ =========== ============ ============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including your choice of
investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 1 the death benefit is the greater of (1) the Specified Amount or
(2) the Policy Value on the date of death multiplied by the Death Benefit
Percentage Factor described in the section of the prospectus titled The Policy
Death Benefit Proceeds.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERS(R) Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 2
<TABLE>
<CAPTION>
Male Non Tobacco User Age at Issue: 35
Specified Amount: $100,000 Annual Premium: $1,200
Planned Premium Payable Annually for: 30 years Based on: Guaranteed Mortality Charges
Policy Loans and Partial Withdrawals: None Projected Dividends: Not Included
Hypothetical Gross Rates of Return: 0, 6 and 12% Death Benefit: Option 1*
------- ------------- ---------------------------------- ----------------------------------- =====================================
End Premiums
of Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
Year Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Per Year
---------------------------------- ----------------------------------- =====================================
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Cash Value
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ------------ ---------- =============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,260 100,000 871 100 100,000 932 161 100,000 994 223
2 2,583 100,000 1,721 988 100,000 1,898 1,166 100,000 2,083 1,351
3 3,972 100,000 2,546 1,852 100,000 2,896 2,202 100,000 3,275 2,581
4 5,431 100,000 3,347 2,692 100,000 3,926 3,271 100,000 4,580 3,925
5 6,962 100,000 4,123 3,545 100,000 4,990 4,412 100,000 6,010 5,431
6 8,570 100,000 4,873 4,372 100,000 6,086 5,585 100,000 7,574 7,073
7 10,259 100,000 5,595 5,209 100,000 7,216 6,831 100,000 9,287 8,902
8 12,032 100,000 6,289 6,019 100,000 8,380 8,111 100,000 11,165 10,895
9 13,893 100,000 6,954 6,800 100,000 9,579 9,425 100,000 13,223 13,069
10 15,848 100,000 7,590 7,590 100,000 10,813 10,813 100,000 15,481 15,481
15 27,189 100,000 10,480 10,480 100,000 17,763 17,763 100,000 30,857 30,857
20 41,663 100,000 12,274 12,274 100,000 25,607 25,607 100,000 55,757 55,757
25 60,136 100,000 12,353 12,353 100,000 34,129 34,129 129,494 96,638 96,638
30 83,713 100,000 9,637 9,637 100,000 43,010 43,010 198,019 162,311 162,311
======= ============= ============ ========= =========== ============ ========= ============ ============ ========== =============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including your choice of
investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 1 the death benefit is the greater of (1) the Specified Amount or
(2) the Policy Value on the date of death multiplied by the Death Benefit
Percentage Factor described in the section of the prospectus titled The Policy
Death Benefit Proceeds.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERS(R) Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 3
<TABLE>
<CAPTION>
Male Non Tobacco User Age at Issue: 35
Specified Amount: $100,000 Annual Premium: $1,200
Planned Premium Payable Annually for: 30 years Based on: Current Mortality Charges
Policy Loans and Partial Withdrawals: None Projected Dividends: Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 2*
------- ------------- ---------------------------------- ----------------------------------- ====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Year Per Year
---------------------------------- ----------------------------------- ====================================
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Cash Value
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ------------ ---------- ============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,260 100,869 869 98 100,930 930 159 100,992 992 221
2 2,583 101,715 1,715 983 101,892 1,892 1,160 102,077 2,077 1,344
3 3,972 102,536 2,536 1,842 102,884 2,884 2,190 103,262 3,262 2,568
4 5,431 103,330 3,330 2,674 103,905 3,905 3,250 104,556 4,556 3,900
5 6,962 104,097 4,097 3,519 104,957 4,957 4,379 105,969 5,969 5,390
6 8,570 104,835 4,835 4,333 106,037 6,037 5,536 107,510 7,510 7,009
7 10,259 105,542 5,542 5,157 107,146 7,146 6,760 109,192 9,192 8,807
8 12,032 106,220 6,220 5,950 108,283 8,283 8,013 111,029 11,029 10,759
9 13,893 106,865 6,865 6,711 109,449 9,449 9,295 113,034 13,034 12,879
10 15,848 107,477 7,477 7,477 110,642 10,642 10,642 115,222 15,222 15,222
15 27,189 111,508 11,508 11,508 118,886 18,886 18,886 132,013 32,013 32,013
20 41,663 114,779 14,779 14,779 128,752 28,752 28,752 159,533 59,533 59,533
25 60,136 117,287 17,287 17,287 141,014 41,014 41,014 206,497 106,497 106,497
30 83,713 118,080 18,080 18,080 155,065 55,065 55,065 284,813 184,813 184,813
======= ============= ============ ========= =========== ============ ========= ============ ============ ========== ============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including your choice of
investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 2 the death benefit is the greater of (1) the Specified Amount
plus the Policy Value on date of death, or (2) the Policy Value on the date of
death multiplied by the Death Benefit Percentage Factor described in the section
of the prospectus titled The Policy - Death Benefit Proceeds.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERS(R) Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 4
<TABLE>
<CAPTION>
Male Non Tobacco User Age at Issue: 35
Specified Amount: $100,000 Annual Premium: $1,200
Planned Premium Payable Annually for: 30 years Based on: Guaranteed Mortality Charges
Policy Loans and Partial Withdrawals: None Projected Dividends: Not Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 2*
------- ------------- ---------------------------------- ----------------------------------- ====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36 NET)
Year Per Year
---------------------------------- ----------------------------------- ====================================
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Cash Value
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ------------ ---------- ============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,260 100,869 869 98 100,930 930 159 100,992 992 221
2 2,583 101,715 1,715 983 101,892 1,892 1,160 102,077 2,077 1,344
3 3,972 102,536 2,536 1,842 102,884 2,884 2,190 103,262 3,262 2,568
4 5,431 103,330 3,330 2,674 103,905 3,905 3,250 104,556 4,556 3,900
5 6,962 104,097 4,097 3,519 104,957 4,957 4,379 105,969 5,969 5,390
6 8,570 104,835 4,835 4,333 106,037 6,037 5,536 107,510 7,510 7,009
7 10,259 105,542 5,542 5,157 107,146 7,146 6,760 109,192 9,192 8,807
8 12,032 106,220 6,220 5,950 108,283 8,283 8,013 111,029 11,029 10,759
9 13,893 106,865 6,865 6,711 109,449 9,449 9,295 113,034 13,034 12,879
10 15,848 107,477 7,477 7,477 110,642 10,642 10,642 115,222 15,222 15,222
15 27,189 110,184 10,184 10,184 117,216 17,216 17,216 129,839 29,839 29,839
20 41,663 111,638 11,638 11,638 124,161 24,161 24,161 152,400 52,400 52,400
25 60,136 111,134 11,134 11,134 130,638 30,638 30,638 186,898 86,898 86,898
30 83,713 107,578 7,578 7,578 135,105 35,105 35,105 239,297 139,297 139,297
======= ============= ============ ========= =========== ============ ========= ============ ============ ========== ============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including your choice of
investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 2 the death benefit is the greater of (1) the Specified Amount
plus the Policy Value on date of death, or (2) the Policy Value on the date of
death multiplied by the Death Benefit Percentage Factor described in the section
of the prospectus titled The Policy - Death Benefit Proceeds.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERS(R) Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 5
<TABLE>
<CAPTION>
Male Non Tobacco User Age at Issue: 50
Specified Amount: $100,000 Annual Premium: $2,500
Planned Premium Payable Annually for: 30 years Based on: Current Mortality Charges
Policy Loans and Partial Withdrawals: None Projected Dividends: Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 1*
------- ------------- ---------------------------------- ------------------------------------ ====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Year Per Year
------------------------------------ ====================================
------------ --------- -----------
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Cash Value
------- ------------- ------------ --------- ----------- ------------ ----------- ----------- ----------- ---------- =============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,625 100,000 1,796 205 100,000 1,924 333 100,000 2,051 460
2 5,381 100,000 3,538 2,026 100,000 3,906 2,395 100,000 4,290 2,779
3 8,275 100,000 5,223 3,791 100,000 5,948 4,516 100,000 6,735 5,303
4 11,314 100,000 6,851 5,499 100,000 8,051 6,699 100,000 9,409 8,057
5 14,505 100,000 8,426 7,233 100,000 10,223 9,030 100,000 12,341 11,148
6 17,855 100,000 9,949 8,915 100,000 12,468 11,434 100,000 15,561 14,527
7 21,373 100,000 11,399 10,604 100,000 14,770 13,974 100,000 19,083 18,288
8 25,066 100,000 12,780 12,223 100,000 17,133 16,577 100,000 22,946 22,389
9 28,945 100,000 14,085 13,767 100,000 19,559 19,241 100,000 27,186 26,868
10 33,017 100,000 15,315 15,315 100,000 22,051 22,051 100,000 31,850 31,850
15 56,644 100,000 22,906 22,906 100,000 38,790 38,790 100,000 67,450 67,450
20 86,798 100,000 28,359 28,359 100,000 59,427 59,427 148,897 128,360 128,360
25 125,284 100,000 31,201 31,201 100,000 87,916 87,916 250,281 233,908 233,908
30 174,402 100,000 28,707 28,707 133,383 127,031 127,031 434,258 413,579 413,579
======= ============= ============ ========= =========== ============ =========== =========== =========== ========== =============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including your choice of
investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 1 the death benefit is the greater of (1) the Specified Amount or
(2) the Policy Value on the date of death multiplied by the Death Benefit
Percentage Factor described in the section of the prospectus titled The Policy
Death Benefit Proceeds.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERS(R) Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 6
<TABLE>
<CAPTION>
Male Non Tobacco User Age at Issue: 50
Specified Amount: $100,000 Annual Premium: $2,500
Planned Premium Payable Annually for: 30 years Based on: Guaranteed Mortality Charges
Policy Loans and Partial Withdrawals: None Projected Dividends: Not Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 1*
------- ------------- ---------------------------------- ----------------------------------- =====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Year Per Year
---------------------------------- ----------------------------------- =====================================
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Surrender
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ------------ ---------- =============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,625 100,000 1,796 205 100,000 1,924 333 100,000 2,051 460
2 5,381 100,000 3,527 2,016 100,000 3,895 2,384 100,000 4,279 2,768
3 8,275 100,000 5,189 3,757 100,000 5,912 4,480 100,000 6,698 5,266
4 11,314 100,000 6,776 5,424 100,000 7,972 6,619 100,000 9,325 7,973
5 14,505 100,000 8,285 7,092 100,000 10,072 8,879 100,000 12,179 10,986
6 17,855 100,000 9,712 8,678 100,000 12,211 11,177 100,000 15,283 14,249
7 21,373 100,000 11,053 10,258 100,000 14,388 13,593 100,000 18,664 17,869
8 25,066 100,000 12,308 11,751 100,000 16,605 16,048 100,000 22,355 21,799
9 28,945 100,000 13,469 13,151 100,000 18,858 18,540 100,000 26,392 26,073
10 33,017 100,000 14,530 14,530 100,000 21,146 21,146 100,000 30,812 30,812
15 56,644 100,000 18,203 18,203 100,000 33,219 33,219 100,000 60,917 60,917
20 86,798 100,000 17,476 17,476 100,000 45,709 45,709 129,991 112,062 112,062
25 125,284 100,000 8,784 8,784 100,000 58,443 58,443 208,657 195,007 195,007
30 174,402 ** ** ** 100,000 71,907 71,907 345,695 329,233 329,233
======= ============= ============ ========= =========== ============ ========= ============ ============ ========== =============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including your choice of
investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 1 the death benefit is the greater of (1) the Specified Amount or
(2) the Policy Value on the date of death multiplied by the Death Benefit
Percentage Factor described in the section of the prospectus titled The Policy
Death Benefit Proceeds.
** Policy terminated before year 30.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERS(R) Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 7
<TABLE>
<CAPTION>
Male Non Tobacco User Age at Issue: 50
Specified Amount: $100,000 Annual Premium: $2,500
Planned Premium Payable Annually for: 30 years Based on: Current Mortality Charges
Policy Loans and Partial Withdrawals: None Projected Dividends: Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 2*
------- ------------- ---------------------------------- ----------------------------------- =====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Year Per Year
---------------------------------- ----------------------------------- =====================================
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Cash Value
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ------------ ---------- =============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,625 101,785 1,785 194 101,912 1,912 321 102,039 2,039 448
2 5,381 103,506 3,506 1,994 103,871 3,871 2,359 104,251 4,251 2,740
3 8,275 105,159 5,159 3,727 105,874 5,874 4,442 106,650 6,650 5,219
4 11,314 106,742 6,742 5,390 107,921 7,921 6,569 109,254 9,254 7,902
5 14,505 108,260 8,260 7,066 110,016 10,016 8,822 112,084 12,084 10,891
6 17,855 109,711 9,711 8,677 112,160 12,160 11,126 115,164 15,164 14,130
7 21,373 111,074 11,074 10,278 114,330 14,330 13,534 118,493 18,493 17,697
8 25,066 112,348 12,348 11,791 116,526 16,526 15,969 122,096 22,096 21,540
9 28,945 113,526 13,526 13,208 118,741 18,741 18,422 125,994 25,994 25,676
10 33,017 114,607 14,607 14,607 120,971 20,971 20,971 130,212 30,212 30,212
15 56,644 121,350 21,350 21,350 135,869 35,869 35,869 161,947 61,947 61,947
20 86,798 124,961 24,961 24,961 151,639 51,639 51,639 211,646 111,646 111,646
25 125,284 124,155 24,155 24,155 167,603 67,603 67,603 292,520 192,520 192,520
30 174,402 115,670 15,670 15,670 179,408 79,408 79,408 420,749 320,749 320,749
======= ============= ============ ========= =========== ============ ========= ============ ============ ========== =============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including your choice of
investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 2 the death benefit is the greater of (1) the Specified Amount
plus the Policy Value on date of death, or (2) the Policy Value on the date of
death multiplied by the Death Benefit Percentage Factor described in the section
of the prospectus titled The Policy - Death Benefit Proceeds.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERS(R) Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 8
<TABLE>
<CAPTION>
Male Non Tobacco User Age at Issue: 50
Specified Amount: $100,000 Annual Premium: $2,500
Planned Premium Payable Annually for: 30 years Based on: Guaranteed Mortality Charges
Policy Loans and Partial Withdrawals: None Projected Dividends: Not Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 2*
------- ------------- ---------------------------------- ----------------------------------- =====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Year Per Year
---------------------------------- ----------------------------------- =====================================
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Cash Value
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ------------- ---------- ============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,625 101,785 1,785 194 101,912 1,912 321 102,039 2,039 448
2 5,381 103,495 3,495 1,984 103,859 3,859 2,348 104,240 4,240 2,728
3 8,275 105,123 5,123 3,691 105,836 5,836 4,404 106,611 6,611 5,179
4 11,314 106,663 6,663 5,311 107,836 7,836 6,484 109,163 9,163 7,811
5 14,505 108,109 8,109 6,916 109,852 9,852 8,659 111,907 11,907 10,713
6 17,855 109,455 9,455 8,421 111,878 11,878 10,843 114,853 14,853 13,819
7 21,373 110,696 10,696 9,901 113,905 13,905 13,110 118,016 18,016 17,221
8 25,066 111,828 11,828 11,272 115,930 15,930 15,373 121,413 21,413 20,856
9 28,945 112,844 12,844 12,526 117,942 17,942 17,624 125,057 25,057 24,739
10 33,017 113,733 13,733 13,733 119,928 19,928 19,928 128,962 28,962 28,962
15 56,644 116,034 16,034 16,034 129,101 29,101 29,101 153,099 53,099 53,099
20 86,798 112,901 12,901 12,901 134,405 34,405 34,405 185,654 85,654 85,654
25 125,284 101,279 1,279 1,279 130,942 30,942 30,942 227,445 127,445 127,445
30 174,402 ** ** ** 110,136 10,136 10,136 276,810 176,810 176,810
======= ============= ============ ========= =========== ============ ========= ============ ============= ========== ============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including your choice of
investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 2 the death benefit is the greater of (1) the Specified Amount
plus the Policy Value on date of death, or (2) the Policy Value on the date of
death multiplied by the Death Benefit Percentage Factor described in the section
of the prospectus titled The Policy - Death Benefit Proceeds.
** Policy terminated before year 30.
</FN>
</TABLE>
<PAGE>
APPENDIX B
FIRST YEAR CONTINGENT DEFERRED CHARGES
PER $1,000 OF SPECIFIED AMOUNT
<TABLE>
<CAPTION>
Issue MALE FEMALE
Age COMPOSITE DAC + DSC = TDC COMPOSITE DAC + DSC = TDC
- --------- -------------------------------------------------- -----------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
0 .75 .20 .95 .75 .12 .87
1 .80 .27 1.07 .80 .19 .99
2 .85 .34 1.19 .85 .26 1.11
3 .90 .40 1.30 .90 .32 1.22
4 .95 .47 1.42 .95 .39 1.34
5 1.00 .54 1.54 1.00 .46 1.46
6 1.06 .64 1.70 1.06 .53 1.59
7 1.12 .76 1.88 1.12 .60 1.72
8 1.18 .88 2.06 1.18 .67 1.85
9 1.25 .99 2.24 1.25 .73 1.98
10 1.31 1.08 2.39 1.31 .80 2.11
11 1.37 1.14 2.51 1.37 .86 2.23
12 1.43 1.19 2.62 1.43 .92 2.35
13 1.49 1.22 2.71 1.49 .97 2.46
14 1.55 1.25 2.80 1.55 1.02 2.57
15 1.60 1.28 2.88 1.60 1.07 2.67
16 1.64 1.30 2.94 1.64 1.10 2.74
17 1.67 1.32 2.99 1.67 1.13 2.80
18 1.69 1.34 3.03 1.69 1.16 2.85
19 1.73 1.37 3.10 1.73 1.19 2.92
Issue MALE FEMALE
Age STANDARD NONSMOKER STANDARD NONSMOKER
DAC + DSC = TDC DAC + DSC = TDC DAC + DSC = TDC DAC + DSC = TDC
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
20 1.80 1.44 3.24 1.80 1.41 3.21 1.80 1.25 3.05 1.80 1.23 3.03
21 1.89 1.60 3.49 1.89 1.48 3.37 1.89 1.39 3.28 1.89 1.29 3.18
22 1.99 1.75 3.74 1.99 1.57 3.56 1.99 1.52 3.51 1.99 1.38 3.37
23 2.12 1.88 4.00 2.12 1.66 3.78 2.12 1.63 3.75 2.12 1.45 3.57
24 2.26 1.99 4.25 2.26 1.77 4.03 2.26 1.72 3.98 2.26 1.53 3.79
25 2.42 2.08 4.50 2.42 1.87 4.29 2.42 1.79 4.21 2.42 1.60 4.02
26 2.61 2.18 4.79 2.61 1.96 4.57 2.61 1.90 4.51 2.61 1.65 4.26
27 2.83 2.28 5.11 2.83 2.05 4.88 2.83 2.02 4.85 2.83 1.68 4.51
28 3.07 2.38 5.45 3.07 2.14 5.21 3.07 2.15 5.22 3.07 1.70 4.77
29 3.31 2.51 5.82 3.31 2.24 5.55 3.31 2.28 5.59 3.31 1.74 5.05
30 3.55 2.63 6.18 3.55 2.34 5.89 3.55 2.40 5.95 3.55 1.78 5.33
31 3.78 2.76 6.54 3.78 2.45 6.23 3.78 2.53 6.31 3.78 1.85 5.63
32 4.02 2.89 6.91 4.02 2.57 6.59 4.02 2.66 6.68 4.02 1.91 5.93
33 4.25 3.05 7.30 4.25 2.70 6.95 4.25 2.79 7.04 4.25 2.00 6.25
34 4.49 3.21 7.70 4.49 2.83 7.32 4.49 2.93 7.42 4.49 2.08 6.57
35 4.74 3.39 8.13 4.74 2.97 7.71 4.74 3.05 7.79 4.74 2.16 6.90
36 4.99 3.59 8.58 4.99 3.12 8.11 4.99 3.18 8.17 4.99 2.23 7.22
37 5.25 3.80 9.05 5.25 3.28 8.53 5.25 3.30 8.55 5.25 2.30 7.55
38 5.51 4.03 9.54 5.51 3.44 8.95 5.51 3.43 8.94 5.51 2.37 7.88
39 5.78 4.29 10.07 5.78 3.62 9.40 5.78 3.54 9.32 5.78 2.44 8.22
- --------- -------- ------- --------- ------- ------- ------- ------ -------- ------- ------- ------- -------
</TABLE>
<PAGE>
APPENDIX B
FIRST YEAR CONTINGENT DEFERRED CHARGES
PER $1,000 OF SPECIFIED AMOUNT
<TABLE>
<CAPTION>
ISSUE MALE FEMALE
AGE STANDARD NONSMOKER STANDARD NONSMOKER
DAC + DSC = TDC DAC + DSC = TDC DAC + DSC = TDC DAC + DSC = TDC
- ---------- ------------------------ ----------------------- ------------------------ -----------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 6.06 4.56 10.62 6.06 3.81 9.87 6.06 3.64 9.70 6.06 2.52 8.58
41 6.35 4.86 11.21 6.35 4.01 10.36 6.35 3.71 10.06 6.35 2.61 8.96
42 6.64 5.18 11.82 6.64 4.22 10.86 6.64 3.77 10.41 6.64 2.71 9.35
43 6.95 5.51 12.46 6.95 4.44 11.39 6.95 3.81 10.76 6.95 2.81 9.76
44 7.27 5.87 13.14 7.27 4.67 11.94 7.27 3.85 11.12 7.27 2.91 10.18
45 7.60 6.26 13.86 7.60 4.93 12.53 7.60 3.92 11.52 7.60 3.04 10.64
46 7.94 6.67 14.61 7.94 5.20 13.14 7.94 3.98 11.92 7.94 3.16 11.10
47 8.27 7.12 15.39 8.27 5.49 13.76 8.27 4.03 12.30 8.27 3.29 11.56
48 8.63 7.58 16.21 8.63 5.78 14.41 8.63 4.10 12.73 8.63 3.43 12.06
49 9.02 8.06 17.08 9.02 6.10 15.12 9.02 4.23 13.25 9.02 3.60 12.62
50 9.46 8.54 18.00 9.46 6.45 15.91 9.46 4.45 13.91 9.46 3.82 13.28
51 9.97 9.03 19.00 9.97 6.82 16.79 9.97 4.80 14.77 9.97 4.10 14.07
52 10.54 9.53 20.07 10.54 7.20 17.74 10.54 5.25 15.79 10.54 4.44 14.98
53 11.13 10.05 21.18 11.13 7.61 18.74 11.13 5.76 16.89 11.13 4.81 15.94
54 11.73 10.58 22.31 11.73 8.05 19.78 11.73 6.27 18.00 11.73 5.19 16.92
55 12.31 11.12 23.43 12.31 8.52 20.83 12.31 6.73 19.04 12.31 5.55 17.86
56 12.85 11.63 24.48 12.85 9.00 21.85 12.85 7.11 19.96 12.85 5.85 18.70
57 13.39 12.08 25.47 13.39 9.45 22.84 13.39 7.41 20.80 13.39 6.10 19.49
58 13.92 12.58 26.50 13.92 9.96 23.88 13.92 7.73 21.65 13.92 6.38 20.30
59 14.46 13.22 27.68 14.46 10.58 25.04 14.46 8.13 22.59 14.46 6.74 21.20
60 15.00 14.11 29.11 15.00 11.39 26.39 15.00 8.71 23.71 15.00 7.30 22.30
61 15.00 14.87 29.87 15.00 12.01 27.01 15.00 9.53 24.53 15.00 8.08 23.08
62 15.00 15.48 30.48 15.00 12.42 27.42 15.00 10.32 25.32 15.00 8.84 23.84
63 15.00 16.00 31.00 15.00 12.73 27.73 15.00 11.06 26.06 15.00 9.55 24.55
64 15.00 16.50 31.50 15.00 13.04 28.04 15.00 11.71 26.71 15.00 10.20 25.20
65 15.00 17.05 32.05 15.00 13.45 28.45 15.00 12.25 27.25 15.00 10.75 25.75
66 15.00 17.58 32.58 15.00 13.96 28.96 15.00 12.60 27.60 15.00 11.18 26.18
67 15.00 18.05 33.05 15.00 14.50 29.50 15.00 12.78 27.78 15.00 11.49 26.49
68 15.00 18.55 33.55 15.00 15.07 30.07 15.00 12.91 27.91 15.00 11.74 26.74
69 15.00 19.19 34.19 15.00 15.70 30.70 15.00 13.07 28.07 15.00 12.00 27.00
70 15.00 20.07 35.07 15.00 16.39 31.39 15.00 13.39 28.39 15.00 12.31 27.31
71 15.00 21.52 36.52 15.00 17.25 32.25 15.00 14.01 29.01 15.00 12.72 27.72
72 15.00 22.97 37.97 15.00 18.12 33.12 15.00 14.64 29.64 15.00 13.12 28.12
73 15.00 24.41 39.41 15.00 18.98 33.98 15.00 15.26 30.26 15.00 13.53 28.53
74 15.00 25.86 40.86 15.00 19.85 34.85 15.00 15.89 30.89 15.00 13.93 28.93
75 15.00 27.31 42.31 15.00 20.71 35.71 15.00 16.51 31.51 15.00 14.34 29.34
- ---------- ------- -------- ------- ------- ------- ------- ------- -------- ------- ------- ------- -------
</TABLE>
COLUMN HEADINGS: DAC = First Year Contingent Deferred Administrative Charge
DSC = First Year Contingent Deferred Sales Charge
TDC = Total First Year Deferred Charge
<PAGE>
APPENDIX C
FIRST YEAR CONTINGENT DEFERRED CHARGES
PER $1,000 OF SPECIFIED AMOUNT
UNISEX
<TABLE>
<CAPTION>
Issue COMPOSITE Issue SMOKER NONSMOKER
Age DAC + DSC = TDC Age DAC + DSC = TDC DAC + DSC = TDC
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0 .75 .18 .93 40 6.06 4.38 10.44 6.06 3.55 9.61
1 .80 .25 1.05 41 6.35 4.63 10.98 6.35 3.73 10.08
2 .85 .32 1.17 42 6.64 4.90 11.54 6.64 3.92 10.56
3 .90 .38 1.28 43 6.95 5.17 12.12 6.95 4.11 11.06
4 .95 .45 1.40 44 7.27 5.47 12.74 7.27 4.32 11.59
5 1.00 .52 1.52 45 7.60 5.79 13.39 7.60 4.55 12.15
6 1.06 .62 1.68 46 7.94 6.13 14.07 7.94 4.79 12.73
7 1.12 .73 1.85 47 8.27 6.50 14.77 8.27 5.05 13.32
8 1.18 .84 2.02 48 8.63 6.88 15.51 8.63 5.31 13.94
9 1.25 .94 2.19 49 9.02 7.29 16.31 9.02 5.60 14.62
10 1.31 1.02 2.33 50 9.46 7.72 17.18 9.46 5.92 15.38
11 1.37 1.08 2.45 51 9.97 8.18 18.15 9.97 6.28 16.25
12 1.43 1.14 2.57 52 10.54 8.67 19.21 10.54 6.65 17.19
13 1.49 1.17 2.66 53 11.13 9.19 20.32 11.13 7.05 18.18
14 1.55 1.20 2.75 54 11.73 9.72 21.45 11.73 7.48 19.21
15 1.60 1.24 2.84 55 12.31 10.24 22.55 12.31 7.93 20.24
16 1.64 1.26 2.90 56 12.85 10.73 23.58 12.85 8.37 21.22
17 1.67 1.28 2.95 57 13.39 11.15 24.54 13.39 8.78 22.17
18 1.69 1.30 2.99 58 13.92 11.61 25.53 13.92 9.24 23.16
19 1.73 1.33 3.06 59 14.46 12.20 26.66 14.46 9.81 24.27
<S> <C> <C> <C> <C> <C> <C> <C>
Issue SMOKER NONSMOKER 60 15.00 13.03 28.03 15.00 10.57 25.57
Age DAC + DSC = TDC DAC + DSC = TDC 61 15.00 13.80 28.80 15.00 11.22 26.22
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
20 1.80 1.40 3.20 1.80 1.37 3.17 62 15.00 14.45 29.45 15.00 11.70 26.70
21 1.89 1.56 3.45 1.89 1.44 3.33 63 15.00 15.01 30.01 15.00 12.09 27.09
22 1.99 1.70 3.96 1.99 1.53 3.52 64 15.00 15.54 30.54 15.00 12.47 27.47
23 2.12 1.83 3.95 2.12 1.62 3.74 65 15.00 16.09 31.09 15.00 12.91 27.91
24 2.26 1.94 4.20 2.26 1.72 3.98 66 15.00 16.58 31.58 15.00 13.40 28.40
25 2.42 2.02 4.44 2.42 1.82 4.24 67 15.00 17.00 32.00 15.00 13.90 28.90
26 2.61 2.12 4.73 2.61 1.90 4.51 68 15.00 17.42 32.42 15.00 14.40 29.40
27 2.83 2.23 5.06 2.83 1.98 4.81 69 15.00 17.97 32.97 15.00 14.96 29.96
28 3.07 2.33 5.40 3.07 2.05 5.12 70 15.00 18.73 33.73 15.00 15.57 30.57
29 3.31 2.46 5.77 3.31 2.14 5.45 71 15.00 20.02 35.02 15.00 16.34 31.34
30 3.55 2.58 6.13 3.55 2.23 5.78 72 15.00 21.30 36.30 15.00 17.12 32.12
31 3.78 2.71 6.49 3.78 2.33 6.11 73 15.00 22.58 37.58 15.00 17.89 32.89
32 4.02 2.84 6.86 4.02 2.44 6.46 74 15.00 23.87 38.87 15.00 18.67 33.67
33 4.25 3.00 7.25 4.25 2.56 6.81 75 15.00 25.15 40.15 15.00 19.44 34.44
34 4.49 3.15 7.64 4.49 2.68 7.17
35 4.74 3.32 8.06 4.74 2.81 7.55
36 4.99 3.51 8.50 4.99 2.94 7.93
37 5.25 3.70 8.95 5.25 3.08 8.33
38 5.51 3.91 9.42 5.51 3.23 8.74
39 5.78 4.14 9.92 5.78 3.38 9.16
COLUMN HEADINGS: DAC = First Year Contingent Deferred Administrative Charge
DSC = First Year Contingent Deferred Sales Charge
TDC = Total First Year Deferred Charge
</TABLE>
<PAGE>
APPENDIX D
DEATH BENEFIT RATIO
The Death Benefit Ratio required by the Internal Revenue Code for treatment of
the Policy as a life insurance Policy.
Attained Age | Death Benefit Ratio
-------------------------------------
0-40 | 2.50
41 | 2.43
42 | 2.36
43 | 2.29
44 | 2.22
45 | 2.15
------------------------------
46 | 2.09
47 | 2.03
48 | 1.97
49 | 1.91
50 | 1.85
------------------------------
51 | 1.78
52 | 1.71
53 | 1.64
54 | 1.57
55 | 1.50
------------------------------
56 | 1.46
57 | 1.42
58 | 1.38
59 | 1.34
60 | 1.30
------------------------------
61 | 1.28
62 | 1.26
63 | 1.24
64 | 1.22
65 | 1.20
------------------------------
66 | 1.19
67 | 1.18
68 | 1.17
69 | 1.16
70 | 1.15
------------------------------
71 | 1.13
72 | 1.11
73 | 1.09
74 | 1.07
75-90 | 1.05
------------------------------
91 | 1.04
92 | 1.03
93 | 1.02
94 | 1.01
95 | 1.00
------------------------------
<PAGE>
- --------------------------------------------------------------------------------
PART II
UNDERTAKINGS
1. Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned registrant hereby undertakes to file
with the Securities and Exchange Commission (the "SEC") such supplementary
and periodic information, documents, and reports as may be prescribed by
any rule or regulation of the SEC theretofore or hereafter duly adopted
pursuant to authority conferred in that section.
2. Section 11 of the Bylaws of CUNA Mutual Life Insurance Company provides for
indemnification of officers and directors of the Company against claims and
liabilities the officers or directors become subject to by reason of having
served as officer or director of the Company or any subsidiary or affiliate
company. Such indemnification covers liability for all actions alleged to
have been taken, omitted, or neglected by such person in the line of duty
as director or officer, except liability arising out of the officers' or
directors' willful misconduct.
3. 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 SEC such
indemnification is against public policy as expressed in the Securities Act
of 1933 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 whether such indemnification by it is against
public policy as expressed in the Securities Act of 1933 and will be
governed by the final adjudication of such issue.
REPRESENTATIONS
CUNA Mutual Life Insurance Company represents that the fees and charges deducted
under the Policies, in the aggregate, are reasonable in relation to the services
rendered, the expenses expected to be incurred, and the risks assumed by CUNA
Mutual Life Insurance Company.
<PAGE>
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The facing sheet.
The Prospectus consisting of 55 pages.
Undertakings.
Representations.
The signatures.
Written consent or opinion of the following persons:
PricewaterhouseCoopers LLP (to be filed by amendment)
Scott Allen - Associate Actuary (to be filed by amendment)
The following exhibits:
1. Exhibits required by paragraph A of instructions for Exhibits in Form N-8B-2:
1. Resolution to Authorize Registration of and Investment in Separate
Accounts.
2. Not Applicable
3. a. Distribution Agreement between CUNA Mutual Life Insurance Company
and CUNA Brokerage Services, Inc. effective January 1, 1996. (to
be filed by amendment)
b. Servicing Agreement related to the Distribution Agreement between
CUNA Mutual Life Insurance Company and CUNA Brokerage Services,
Inc. effective January 1, 1996. (to be filed by amendment)
4. Not Applicable
5. a. Standard VUL Contract
i. Accelerated Benefit Option Endorsement. Form 1668
ii. Accidental Death Benefit Rider. 99-ADB-RV-1
iii. Children's Insurance Rider. 99-CIR-RV-1
iv. Executive Benefit Plan Endorsement. 98EBP
v. Guaranteed Insurability Rider. 99-GIR-RV-1
vi. Term Insurance Rider for Other Insureds. 99-OIR-RV-1
vii. Waiver of Premium Disability Rider. 99-WVR-RV-1
6. a. Articles of Incorporation of the Company.
b. Bylaws.
7. Not Applicable
8. Servicing Agreement Between CUNA Mutual Life Insurance Company and
CIMCO Inc. dated May 1, 1997. (to be filed by amendment)
9. a. Participation Agreement between T. Rowe Price International
Series, Inc. and the Company dated April 22, 1994. Amendment to
Participation Agreement dated November 1994. (to be filed by
amendment)
b. Participation Agreement between MFS Variable Insurance Trust and
the Company dated April 29, 1994. Amendment to Participation
Agreement dated November 1994. Amendment to Participation
Agreement effective May 1, 1996. (to be filed by amendment)
c. Participation Agreement between Oppenheimer Variable Account
Funds and the Company dated February 20, 1997. (to be filed by
amendment)
d. Participation Agreement between Templeton Variable Products
Series Fund and the Company dated March 31, 1997. (to be filed by
amendment)
10. Application
2. Opinion of Counsel (to be filed by amendment)
3. Not applicable
4. Not applicable
5. Not applicable
6. Not applicable
Power of Attorney
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant, CUNA Mutual Life Variable Account, has duly
caused this registration statement to be signed on its behalf by the undersigned
thereunto duly authorized, all in the City of Madison, and State of Wisconsin,
on the 23rd day of June, 1999.
CUNA Mutual Life Variable Account (Registrant)
By: CUNA Mutual Life Insurance Company
By: /s/ Michael B. Kitchen
Michael B. Kitchen
President
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the depositor, CUNA Mutual Life Insurance Company, has duly
caused this Registration Statement to be signed on its behalf by the undersigned
thereunto duly authorized, all in the City of Madison, and State of Wisconsin,
on the 23rd day of June, 1999.
CUNA Mutual Life Insurance Company (Depositor)
By: /s/ Michael B. Kitchen
Michael B. Kitchen
President
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the capacities indicated
and on the dates indicated.
<TABLE>
<CAPTION>
SIGNATURES AND TITLE DATE SIGNATURES AND TITLE DATE
<S> <C> <C> <C>
James C. Barbre * Omer K. Reed *
James C. Barbre, Director Omer K. Reed, Director
Robert W. Bream * Richard C. Robertson *
Robert W. Bream, Director Richard C. Robertson, Director
Wilfred F. Broxterman * Rosemarie M. Shultz *
Wilfred F. Broxterman, Director Rosemarie M. Shultz, Director
James L. Bryan * Neil A. Springer *
James L. Bryan, Director Neil A. Springer, Director
Loretta M. Burd * Farouk D. G. Wang *
Loretta M. Burd, Director Farouk D. G. Wang, Director
Ralph B. Canterbury * Larry T. Wilson *
Ralph B. Canterbury, Director Larry T. Wilson, Director
Joseph N. Cugini * /s/ Kevin S. Thompson 06/23/99
Joseph N. Cugini, Director Kevin S. Thompson, Attorney-In-Fact
Rudolf J. Hanley *
Rudolf J. Hanley, Director
Jerald R. Hinrichs *
Jerald R. Hinrichs, Director
/s/ Michael B. Kitchen 06/23/99
Michael B. Kitchen, Director
Robert T. Lynch *
Robert T. Lynch, Director
Brian L. McDonnell *
Brian L. McDonnell, Director
C. Alan Peppers *
C. Alan Peppers, Director
<FN>
*Pursuant to Powers of Attorney filed herewith
</FN>
</TABLE>
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed by the following person in the capacity indicated on
the date indicated.
SIGNATURE AND TITLE DATE
/s/ Micahel G. Joneson 06/23/99
Michael G. Joneson
Vice President - Accounting & Financial Systems
/s/ Richard J. Keintz 06/23/99
Richard J. Keintz
Chief Officer - Finance & Information Services
/s/ Michael B. Kitchen 06/23/99
Michael B. Kitchen
President and Chief Executive Officer
<PAGE>
EXHIBIT INDEX
Resolution to Authrozie Registration of and
Investment in Seperate Accounts
Standard VUL Contract
Accelerated Benefit Option Endorsement. Form 1668
Accidental Death Benefit Rider. 99-ADB-RV-1
Children's Insurance Rider. 99-CIR-RV-1
Executive Benefit Plan Endorsement. 98EBP
Guaranteed Insurability Rider. 99-GIR-RV-1
Term Insurance Rider for Other Insureds. 99-OIR-RV-1
Waiver of Premium Disability Rider. 99-WVR-RV-1
Articles of Incorporation of the Company
Bylaws
Application
Power of Attorney
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EXHIBIT 1
LUTHERAN MUTUAL LIFE INSURANCE COMPANY
Heritage Way, Waverly, Iowa
RESOLUTION TO AUTHORIZE REGISTRATION OF AND INVESTMENT IN
SEPARATE ACCOUNTS
I hereby certify that I am the duly appointed Secretary of LUTHERAN MUTUAL LIFE
INSURANCE COMPANY, an Iowa corporation, and that in such office I have access to
the Company's books and records and have authority to make this certification,
and I further certify that the Board of Directors by action effective August 16,
1983, adopted the following resolutions pertaining to the registration of and
investment in separate accounts:
* * * * * * * * * *
WHEREAS, on February 25, 1982, the Board authorized Company officers to
establish one or more separate accounts as contemplated under Iowa
Insurance Code Section 508.32 for product development pruposes, and
WHEREAS, in furtherance of a plan to develop separate accounts for use
with variable annuity and variable life insurance products requiring
registration under Federal law, and in some cases, registration and
regulatory approval under the laws of some of the states in which the
Company expects to do business, additional authority is now deemed
appropriate and necessary,
RESOLVED THEREFORE, that the proper officers of this Company are hereby
authorized to establish and designate separate accounts of a nature and
type which they deem necessary or appropriate for use as investment
media for variable and fixed annuity contracts and variable and fixed
life insurance policies to be issued by this Company, and to create the
necessary or appropriate governance structures and register or file for
approval, as the case may be, such separate accounts and those policies
and contracts under such applicable Federal Securities Laws and state
regulatory laws as are deemed necessary and appropriate, and
FURTHER RESOLVED, that the Company is hereby authorized to act as a
Depositor and to invest such amounts of seed money as may be necessary
or appropriate for regulatory purposes in each such separate account
and it may invest such additional sums as may be deemed appropriate for
investment purposes on a current basis subject to limitations provided
in the Company's Investment Policy Statement and other directives
adopted by the Board from time to time, and
FURTHER RESOLVED, that a previous resolution adopted by the Board on
May 14, 1982, for this same purpose is deemed to be hereby amended by
this resolution, and Company officers are authorized to perform any
additional acts which they deem necessary or appropriate to carry out
the intent and purposes of these resolutions.
* * * * * * * * * *
and I further certify that the foregoing is a true, complete, and accurate copy
of such resolutions and that such resolutions are consistent with the Company's
Articles of Incorporation and Bylaws and they have not been altered, amended,
revised, or rescinded and are still in full force and effect.
WITNESS MY HAND and the seal of the Company this 8th day of September, 1983.
/s/ Arthur J. Hessburg
Arthur J. Hessburg, Secretary
EXHIBIT 5a
99-VUL
CUNA MUTUAL LIFE INSURANCE COMPANY
A Mutual Insurance Company
2000 Heritage Way, Waverly, Iowa 50677
Telephone: 800/798-5500
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
POLICY NUMBER: 123456789
READ YOUR POLICY CAREFULLY. This is a legal contract between you and CUNA Mutual
Life Insurance Company. Your policy is issued based on the information in the
application and payment of premiums as shown on the data page(s). We will pay
death benefit proceeds and provide for other benefits described in this policy
provided all its terms and conditions are met.
THE AMOUNT OF DEATH BENEFIT MAY INCREASE OR DECREASE DEPENDING ON THE INVESTMENT
EXPERIENCE OF THE SUBACCOUNTS SELECTED, IF ANY, AND ON THE DEATH BENEFIT OPTION
SELECTED AS DESCRIBED IN SECTION 14.
THE PORTION OF YOUR POLICY VALUE IN THE SUBACCOUNT(S) MAY VARY FROM DAY TO DAY
AND IS NOT GUARANTEED. IT MAY INCREASE OR DECREASE DEPENDING ON THE INVESTMENT
EXPERIENCE OF THE SUBACCOUNT(S) SELECTED.
THIS POLICY IS INTENDED TO QUALIFY FOR TREATMENT AS A LIFE INSURANCE POLICY
UNDER THE INTERNAL REVENUE CODE. WE MAY RETURN PREMIUMS WHICH WOULD DISQUALIFY
THE POLICY FROM TAX TREATMENT AS A LIFE INSURANCE POLICY.
Signed for CUNA Mutual Life Insurance Company, Waverly, Iowa, on the policy
issue date.
/s/ Michael B. Kitchen /s/ Barbara L. Secor
President Assistant Secretary
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RIGHT TO EXAMINE: It is important to us that you are satisfied with your policy
after it is issued. If you are not satisfied, you may return it to us within
[ten (10)] days after you receive it, or within forty-five (45) days after the
application was signed. If this policy is a replacement for an existing policy,
you may return it to us within [twenty (20)] days after you receive it. You may
return it by delivering or mailing it to our home office, the agent through whom
it was purchased, or to any agent of CUNA Mutual Life Insurance Company. If you
return the policy, we will treat it as if it had not been issued. You will
receive a refund equal to the premiums you paid within seven (7) days of receipt
of the policy in our home office.
- -------------------------------------------------------------------------------
Flexible Premium Variable Universal Life Insurance
Adjustable Death Benefit
Flexible Premiums Payable During Lifetime of Insured Until Age 95
Death Benefit Payable at Death of Insured Prior to Maturity Date
Participating
- -----------------------------------------------------------------------
POLICY GUIDE AND INDEX
Data Page ...............................................Section 1
Definitions..............................................Section 2
General Information......................................Section 3
Dividends ...............................................Section 4
Right to Convert.........................................Section 5
Premiums.................................................Section 6
Insurance Charges........................................Section 7
Premium Investment Options...............................Section 8
Transfer Privilege.......................................Section 9
Policy Value.............................................Section 10
Partial Withdrawals and Policy Surrender.................Section 11
Policy Loans.............................................Section 12
Restrictions on Policy...................................Section 13
Death Benefit............................................Section 14
Payment of Proceeds......................................Section 15
Beneficiary..............................................Section 16
Settlement Options.......................................Section 17
Option Tables............................................Section 18
Additional Benefit Rider(s)
Guaranteed Maximum Annual Cost of Insurance Rate Table(s)
- -------------------------------------------------------------------
SUMMARY OF POLICY BENEFITS
Living Benefits
Policy Loans
Partial Withdrawals
Transfer Privileges
Dividends
Death Benefit
The amount payable to the beneficiary is determined as of the date of the
insured's death. It is equal to the following amounts:
o The death benefit amount on the date of death; plus
o Any premiums received after the date of death; minus
o Any partial withdrawals taken after the date of death; minus
o Any insurance charges due if the insured dies during a grace period; minus
o Any loan amount.
Additional Benefit Rider(s)
Any additional benefit rider(s) listed on the data page are described more fully
in the additional benefit rider(s) that follow Section 18.
Policy Number: 123456789
- ------------------------------------- ------------------------------------------
SECTION 1. DATA PAGE
- ------------------------------------- ------------------------------------------
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
OWNER: John Doe SPECIFIED AMOUNT: $50,000
INSURED: John Doe RATING: Standard Tobacco
ISSUE DATE: January 15, 2000 ISSUE AGE: 35
MATURITY DATE: January 15, 2060 GENDER: Male
DEATH BENEFIT OPTION: Option 1 COST OF INSURANCE RATES: Male
Specified Protection
Protection Provided by Policy and Riders: Amount Provided Until*
- ----------------------------------------- -------- ---------------
Flexible Premium Variable Universal Life Insurance $50,000 January 15, 2060
Other Insured Rider(s) $50,000 January 15, 2060
Accidental Death Benefit Rider $50,000 January 15, 2035
Guaranteed Insurability Rider $50,000 January 15, 2005
Child Insured Rider(s) 10 units January 15, 2030
Waiver of Premium Disability Rider N/A January 15, 2030
*The cost of insurance for the protection provided is deducted from the policy
value. Cost of insurance rates for each type of protection are shown in separate
tables on subsequent pages. It is possible that protection will not continue to
the date(s) shown if either no premiums are paid after the initial premium
payment, or subsequent premium payments plus investment results on the
designated subaccount(s) are not adequate to continue protection to the date
shown. It is also possible that protection will continue to the date shown, but
with little or no policy value on that date.
PREMIUM INFORMATION:
Initial Required Premium: $170.41
Initial Premium: $170.41
Planned Premium: $1,022.46 annually
Basic Guarantee Premium**: $1,022.46
Extended Guarantee Premium**: $1,521.29
** These are the initial amounts as of the policy issue date. If you make a
change to your policy benefits or change how you fund your policy, these
amounts will change.
POLICY INTEREST RATES (COMPOUNDED ANNUALLY):
Loan Account Rate: 4%
Standard Loan Rate: [ 6% ] Preferred Loan Rate: [4.5%]
Guaranteed Settlement Option Rate: 4%
DEATH BENEFIT DISCOUNT FACTOR: 1.0032737
INITIAL ALLOCATION OF NET PREMIUMS:
Minimum Allocation Percentage: 5%
VARIABLE ACCOUNT : CUNA Mutual Life Variable Account
Net Premium
Subaccounts/Fixed Account Fund Allocation
Mid-Cap Stock Ultra Series 100%
Capital Appreciation Stock Ultra Series 0%
G & I Stock Ultra Series 0%
Balanced Ultra Series 0%
Bond Ultra Series 0%
Money Market Ultra Series 0%
Global Governments MFS Variable Insurance Trust 0%
International Stock T. Rowe Price Intl Series, Inc. 0%
Emerging Growth MFS Variable Insurance Trust 0%
Hi Income Oppenheimer Variable Acct Funds 0%
Devlp Mkts Templeton Var Prod Series Funds 0%
Fixed Account N/A 0%
CHARGES AND FEES:
Administrative Charge: .0375 per $1000 of specified amount monthly for years
1-10 (.45 per $1000 annually)
Mortality and Expense Risk Charge: .00246575% daily on variable account value
(.90% annually)
Premium Expense Charge:
Policy Fee*: $6.00 monthly ($72.00 annually)
Service Fees*:
Transfer: $ 10.00 per transfer after the first 12 transfers during a policy
year.
Specified Amount Increase: $100.00 per requested increase after the first
increase during a policy year.
Partial Withdrawal: $25.00 or 2% of amount withdrawn (whichever is less)
per partial withdrawal.
* We reserve the right to reduce or waive any of these fees. Any reduction or
waiver will be administered in a non-discriminatory manner.
Surrender Charges:
Year
1 $406.50
2 386.17
3 365.85
4 345.52
5 304.87
6 264.22
7 203.25
8 142.27
9 81.30
10+ 0
In the event of full surrender, surrender charges will be assessed against the
policy value. These charges are based on the policy's initial specified amount.
Additional surrender charges will be assessed if the specified amount is
increased.
- ------------------------------------- ----------------------------------------
SECTION 2. DEFINITIONS
- ------------------------------------- ----------------------------------------
2.1 What are the most commonly used terms and what do they mean?
accounts - Allocation options including the fixed account of the general account
and the subaccounts of the variable account.
accumulation unit - A unit of measure used to calculate variable account value.
age - The insured's age at the insured's most recent birthday.
basic guarantee premium - The required amount of annual premium payable to keep
the basic guarantee, as described in Section 6, in effect.
beneficiary - The person or persons you have chosen to receive the death
proceeds.
extended guarantee premium - The required amount of annual premium payable to
keep the extended guarantee, as described in Section 6, in effect.
fixed account - An option under the policy funded by our general account. It is
not part of, nor dependent upon, the investment performance of the variable
account.
fixed account value - The value of the policy in the fixed account.
fund - Each investment portfolio (sometimes called Series) of the Ultra Series
Fund or any other open-end management investment company or unit investment
trust in which a subaccount invests.
general account - Our assets other than those allocated to the variable account
or any other variable account of CUNA Mutual Life Insurance Company.
home office - CUNA Mutual Life Insurance Company, 2000 Heritage Way, Waverly,
Iowa, 50677.
in force - The insured's life is insured under the terms of this policy.
initial premium - The amount we received as of the policy issue date.
initial required premium - The amount required on or prior to the policy issue
date. It is equal to one-sixth (1/6) of the basic guarantee premium. The initial
required premium is shown on the data page.
irrevocable beneficiary - A beneficiary who has certain rights which cannot be
changed unless s/he consents to the change.
lapse - The insured's life is no longer insured under this policy.
loan account - A portion of our general account to which fixed account and/or
variable account value is transferred to provide collateral for any loan taken
under the policy.
loan account value - The value of the policy in the loan account.
loan amount - The sum of your loan principal plus any accrued loan interest.
maturity date - The date on which we will pay you the surrender value, if any,
provided the insured is still living. The original maturity date is shown on the
data page.
minimum subsequent premium - The minimum amount we will accept as a premium
payment after the initial premium.
monthly processing day - The same day in each month as the policy issue date in
which insurance charges for this policy are deducted and interest is credited on
any amounts in the fixed account.
net amount at risk - The difference between the death benefit and the policy
value.
net premium - The amount you pay as the premium, less the premium expense
charge.
payee - The person receiving settlement option payments upon whose life payments
are based.
planned premium - The amount you plan to pay on a regular basis over a specified
period of time to fund your policy. The planned premium as of your policy issue
date is shown on the data page.
policy anniversary - Same day and month as the policy issue day and month for
each year the policy remains in force.
policy issue date - The date coverage under this policy begins. The date from
which policy anniversaries and monthly processing days are determined.
policy fee - A portion of the insurance charge which is deducted each monthly
processing day to cover policy expenses. The policy fee is shown on the data
page.
policy year - A twelve-month period beginning on a policy anniversary.
policy value - The total amount invested under the policy. It is the sum of the
variable account value, the fixed account value, and the loan account value.
premium expense charge - An amount we deduct from your premium payments to cover
taxes we are currently charged by your state of residence. The initial charge is
shown on the data page.
pro rata - A method of distribution of variable account value and fixed account
value among any or all of your accounts. The distribution is in the same
proportion that the value in each account has to the total value of the affected
accounts.
specified amount - The amount used to determine the death benefit amount. The
specified amount is shown on the data page.
subaccount - A subdivision of the variable account; the assets of which are
invested in a corresponding fund.
surrender value - The policy value less any applicable surrender charges and any
loan amount.
valuation day - Each day on which valuation of the assets of a subaccount is
required by applicable law.
valuation period - The period beginning at the close of the New York Stock
Exchange (currently 3:00 p.m. Central Time) of one valuation day, and continuing
to 3:00 p.m. Central Time, or the close of the New York Stock Exchange,
whichever is earlier, of the next succeeding valuation day.
variable account - The CUNA Mutual Life Variable Account. A segregated
investment account of CUNA Mutual Life Insurance Company into which net premiums
may be allocated.
variable account value - The value of the policy in the variable account.
we, our, us - CUNA Mutual Life Insurance Company.
written request - A signed and dated written notice in a form satisfactory to us
and received in our home office.
you, your - The owner of this policy who is entitled to exercise all rights and
privileges provided in the policy.
- ------------------------------------ -----------------------------------------
SECTION 3. GENERAL INFORMATION
- ------------------------------------- ----------------------------------------
3.1 What is our agreement with you?
Our agreement with you consists of the policy, any attached riders, endorsements
or amendments, and applications.
No one except a company officer can change or give up any of the rights or
requirements in this policy. Any change must be made in writing.
3.2 Can this policy be contested?
We relied on statements you made in the application when we issued this policy.
In the absence of fraud, we will accept the statements made in the application
or reinstatement application to be representations and not warranties.
Statements made in the application or reinstatement application will not be used
to contest this policy or challenge a claim under this policy unless that
statement is material.
A statement is material if, based on correct and complete information, we would
have:
a.) denied coverage;
b.) issued the policy at a higher cost of insurance rate; or
c.) issued the policy on some other basis than applied for.
If this policy is void as a result of a contest, any money you paid, less any
partial withdrawals and loan amount, will be refunded to you.
3.3 When does this policy become incontestable?
This policy is incontestable as to the initial specified amount after it has
been in force during the insured's lifetime for two years from the policy issue
date. If this policy is reinstated, it is incontestable after it has been in
force during the insured's lifetime for two years from the date of
reinstatement. If reinstatement occurs, it may be contested on the basis of
statements made in the reinstatement application.
This provision applies only to this policy. Any additional benefit rider(s) have
separate incontestability provisions.
Any amount of increase in the specified amount becomes incontestable after the
increase has been in force during the insured's lifetime for two years from the
effective date of the increase.
3.4 How do you exercise your rights as owner?
You may exercise all the rights allowed by this policy during the insured's
lifetime and prior to the maturity date by written request.
3.5 How is ownership of this policy changed?
A change of owner may be made at any time before the insured's death by written
request. The written consent of each assignee and irrevocable beneficiary is
required.
Your written request will not be effective until it is recorded at our home
office. After it has been recorded, it will take effect as of the date you
signed the request. We will not be responsible for any action taken before we
record the request.
3.6 What if the insured's age or gender has been misstated?
For a policy based on male or female cost of insurance rates (see data page for
basis), if the insured's age or gender has been misstated, an adjustment will be
made to reflect the correct age and gender as follows:
a.) If the misstatement is discovered at death, the death benefit amount
will be adjusted based on what the cost of insurance rate as of the
most recent monthly processing day would have purchased at the
insured's correct age and gender.
b.) If the misstatement is discovered prior to death, the cost of insurance
rate will be adjusted based on the insured's correct age and gender
beginning on the next monthly processing day.
For a policy based on blended cost of insurance rates (see data page for basis),
a misstatement of gender will not result in an adjustment. However, if the
insured's age has been misstated, an adjustment will be made to reflect the
correct age as follows:
a.) If the misstatement is discovered at death, the death benefit will be
adjusted based on what the cost of insurance rate as of the most recent
monthly processing day would have purchased at the insured's correct
age.
b.) If the misstatement is discovered prior to death, the cost of insurance
rate will be adjusted based on the insured's correct age beginning on
the next monthly processing day.
3.7 Is there a suicide exclusion?
Suicide by the insured, whether sane or insane, within two years of the policy
issue date or reinstatement date is not covered by this policy. If the insured
dies by suicide during this two year period, the premium you paid, less any
partial withdrawals and loan amount, will be refunded to you. If the insured
dies by suicide within two years of the date of an increase in the specified
amount, the only amount payable with respect to the increase will be a return of
the cost of insurance and administrative charge made for the increase.
3.8 Can this policy be assigned as collateral security?
You may assign this policy while it is in force by written request provided:
a.) the assignment is in writing on a form acceptable to us;
b.) it is signed by you and any irrevocable beneficiaries; and
c.) it is received by us at our home office.
The assignment will be effective on the date the written request is received at
our home office and accepted by us. We will not be responsible for any action
taken before we record the request or for the validity of any assignment.
3.9 Can the maturity date be extended?
You may extend the original maturity date of this policy by selecting a new
maturity date at any time by written request before the policy anniversary at
the insured's age 95. If a new maturity date is chosen, your policy will not
mature on the original maturity date, and on the policy anniversary at the
insured's age 95:
a.) we will not accept additional premium for this policy;
b.) the specified amount will be decreased to zero;
c.) the cost of insurance rate will be zero; and
d.) the death benefit percentage factor will be equal to 1.01 and will remain
at 1.01 to the new maturity date. On the new maturity date, the death
benefit percentage factor will be equal to 1.00. (See Section 14.)
3.10 Will annual reports be sent?
We will send you a report at least annually which provides information about
your policy as required by any applicable law.
3.11 Can we modify the policy?
Upon notice to you, we may modify this policy if:
a.) necessary to permit the policy or the variable account to comply with any
applicable law or regulation issued by a government agency;
b.) necessary to assure continued qualification of the policy under the
Internal Revenue Code or other federal or state laws relating to variable
life contracts; or
c.) necessary to reflect a change in the operation of the variable account.
(See Section 8.)
In the event of most such modifications, we will make appropriate endorsements
to the policy.
3.12 When will this policy terminate?
This policy will terminate on the earliest of:
a.) the date you request full surrender;
b.) the date death proceeds are payable;
c.) the maturity date; or
d.) the date the grace period ends without payment of the premium due.
SECTION 4. DIVIDENDS
4.1 Will this policy receive dividends?
While this policy is in force, it will share in our divisible surplus. We will
determine once a year if any dividends are payable on this policy. You will
receive dividends, if any, on your policy anniversary. We do not anticipate any
dividends to be paid during the first 10 policy years.
4.2 How can dividends be applied?
You may request that we apply your dividends by:
a.) paying them to you in cash; or
b.) applying them to your accounts according to your premium allocation
percentages on file at our home office.
If you do not choose an option, any dividends payable will be applied to your
accounts according to your premium allocation percentages on file at our home
office.
SECTION 5. RIGHT TO CONVERT
5.1 Can this policy be converted?
You may convert this policy to a fixed policy during the first 24 months after
the policy issue date. It may be converted to a fixed policy by transferring,
without charge, the value in the subaccounts to the fixed account. If you do so,
future payments will be allocated to the fixed account, unless you specify
otherwise. The conversion will become effective when we receive your written
request.
SECTION 6. PREMIUMS
6.1 What are the premiums for this policy?
The initial required premium for this policy is shown on the data page. This
amount must be paid to us during the lifetime of the insured on or before the
policy issue date. All premiums after the initial required premium are payable
to us at our home office. We will give you a receipt for payment if you request
it. The amount and frequency of your planned premium as of the policy issue date
is shown on the data page. You may increase, decrease, or skip planned premium
payments, or make unscheduled premium payments, subject to the limits described
below.
6.2 Are there any limits on premium payments?
We will accept premium payments subject to the following limitations:
a.) the payment does not increase the policy value such that it disqualifies
your policy as life insurance under Internal Revenue Code regulatory
guidelines; and
b.) the payment does not increase the net amount at risk. We may allow a
payment that increases the net amount at risk if we receive evidence of
insurability satisfactory to us.
6.3 What happens if you stop making premium payments?
If you stop making premium payments and your surrender value on any monthly
processing day is sufficient to pay the insurance charges, your policy will
remain in force. Insurance charges will be deducted on each monthly processing
day until the earlier of:
a.) the monthly processing day the surrender value is less than the amount
needed to pay the insurance charges; or
b.) the maturity date.
6.4 What happens if your surrender value is insufficient to pay the insurance
charges?
If your surrender value on any monthly processing day is insufficient to pay the
insurance charges, we will mail a notice of impending termination to you at your
last post office address known to us and your grace period will begin. However,
if your policy meets the premium requirements of one of the guarantees described
below, your policy will continue in force for the duration of the guarantee
provided you meet the requirements of that guarantee.
a.) Basic Guarantee: The basic guarantee is in effect provided the total of
your net premiums on each monthly processing day following your policy
issue date, less the total of any partial withdrawals and loans taken to
date, is at least equal to the basic guarantee premium requirement. The
basic guarantee premium requirement is equal to the total amount of all
basic guarantee premiums accumulated as of that monthly processing day.
This basic guarantee will remain in effect as long as you meet the premium
requirements, and will continue until the later of: 1.) the insured's
attained age 65; or 2.) 10 years after the policy issue date. The basic
guarantee premium as of the policy issue date is shown on the data page. If
you make a change to your policy benefits or change how you fund your
policy, this amount will change and will affect the premium required for
the basic guarantee.
b.) Extended Guarantee: The extended guarantee is in effect provided the total
of your net premiums on each monthly processing day following your policy
issue date, less the total of any partial withdrawals and loans taken to
date, is at least equal to the extended guarantee premium requirement. The
extended guarantee premium requirement is equal to the total amount of all
extended guarantee premiums accumulated as of that monthly processing day.
This extended guarantee will remain in effect as long as you meet the
premium requirements, and will continue until your attained age 95. The
extended guarantee premium as of the policy issue date is shown on the data
page. If you make a change to your policy benefits or change how you fund
your policy, this amount will change and will affect the premium required
for the extended guarantee.
You will be notified if the total of your net premiums is no longer sufficient
to keep the basic guarantee or extended guarantee in effect.
If the basic guarantee was previously in effect, you will have 61 days to pay us
sufficient premium in order to keep the basic guarantee in effect. If the
extended guarantee was previously in effect, you will have 61 days to pay us
sufficient premium to keep either the basic guarantee or extended guarantee in
effect.
During the guarantee period, insurance charges will continue to be deducted, and
may result in a surrender value of less than zero at the end of the period. If
your surrender value is equal to or less than zero at the end of the guarantee
period, we will mail a notice of impending termination to you at your last post
office address known to us and your grace period will begin.
6.5 What is the grace period?
You have a grace period of 61 days after the mailing date of the notice of
impending termination to pay us sufficient premium to keep your policy in force.
The premium due is equal to the amount required to increase the surrender value
to zero by the end of the grace period, plus two months of expected insurance
charges.
If you pay the premium due on or before the end of the 61 day grace period, your
policy will remain in force as if the amount had been paid on the monthly
processing day.
If the insured dies during the grace period, we will pay the death proceeds to
the beneficiary. Any insurance charges due will be deducted from the death
proceeds.
6.6 What happens if the premium due is not paid on or before the end of the
grace period?
If the premium due is not paid on or before the end of the grace period, all
coverage under the policy and any rider(s) will lapse without value at the end
of the grace period. However, you may ask us to reinstate your policy within
five years after its lapse. In order to do so, we will require the following:
a.) your written request for reinstatement;
b.) evidence of insurability satisfactory to us;
c.) payment of net premium sufficient to increase the surrender value to zero
as of the end of the grace period, plus two months of expected insurance
charges; and
d.) payment or reinstatement of any loan amount which existed at the end of the
grace period.
The cost of insurance will be based on the underwriting classification of the
reinstated policy.
The reinstatement will become effective immediately upon our approval of the
reinstatement. If either the basic guarantee or the extended guarantee was in
effect at the time of lapse, then it will continue in effect as if the policy
had never ended, provided you pay us sufficient premium to keep the guarantee in
effect.
SECTION 7. INSURANCE CHARGES
7.1 What do the insurance charges consist of and when are they deducted?
The insurance charges for this policy consist of:
a.) the cost of insurance; plus
b.) the cost of any riders; plus
c.) the policy fee; plus
d.) the administrative charge.
Insurance charges will be deducted pro rata on each monthly processing day. We
reserve the right to allow other methods for the deduction of insurance charges.
You will be notified of the availability of any such methods. If an account
value is insufficient to pay its portion of the insurance charges, such charges
will be taken on a pro rata basis from the remaining accounts.
7.2 How is the cost of insurance calculated?
The cost of insurance is calculated on each monthly processing day. It is equal
to:
a.) the net amount at risk; divided by
b.) the death benefit discount factor (see data page); multiplied by
c.) the current cost of insurance rate.
7.3 Can the current cost of insurance rate schedule change?
We may change the current cost of insurance rate schedule from time to time
based on changes in future expectations for such factors as: investment
earnings, mortality, persistency, expenses, and taxes. Any change will apply to
all persons of the same age, gender (for a policy based on male or female cost
of insurance rates), plan of insurance, and rating class, and whose policies
have been in effect for the same length of time. We will not change the current
cost of insurance rates because of a change in the insured's health or
occupation, or to recoup prior losses.
The current cost of insurance rates will never be greater than those shown in
the guaranteed maximum annual cost of insurance rate table.
SECTION 8. PREMIUM INVESTMENT OPTIONS
8.1 What is the fixed account?
The fixed account is a non-segregated portion of our general account. The fixed
account does not depend on the investment performance of the variable account.
Subject to applicable law, we have sole discretion over the investment of assets
supporting the fixed account.
8.2 What is the variable account?
The variable benefits under this policy are provided through the CUNA Mutual
Life Variable Account, which is referred to in this policy as the variable
account. The variable account is a segregated investment account to which we
allocate certain assets and liabilities related to this policy and other
variable policies. The variable account is registered with the Securities and
Exchange Commission as a unit investment trust under the Investment Company Act
of 1940 (the "1940 Act").
We own the assets of the variable account. We value the assets of the variable
account each valuation day.
That portion of the assets of the variable account equal to the reserves and
other policy liabilities of the policy supported by the variable account will
not be charged with liabilities arising from any other business that we may
conduct. We have the right to transfer to our general account any assets of the
variable account that are in excess of such reserves and other policy
liabilities. The income, gains, and losses, realized or unrealized, from the
assets allocated to the variable account will be credited to or charged against
the variable account, without regard to our other income, gains, or losses.
The variable account is divided into subaccounts. The subaccounts as of the
policy issue date are shown on the data page. Each subaccount invests its assets
solely in the shares or units of designated funds of underlying investment
companies. The funds corresponding to the subaccounts available as of the policy
issue date are shown on the data page. Net premiums allocated and transfers to a
subaccount are invested in the fund supporting that subaccount.
8.3 Can the variable account be modified?
Subject to obtaining approval or consent required by applicable law, we reserve
the right to:
a.) combine the variable account with any of our other variable accounts;
b.) eliminate or combine any subaccounts and transfer the assets of any
subaccount to any other subaccount;
c.) add new subaccounts and make such subaccounts available to any class of
policies as we deem appropriate;
d.) add new funds or remove existing funds;
e.) substitute a different fund for any existing fund, if shares or units of a
fund are no longer available for investment, or if we determine that
investment in a fund is no longer appropriate;
f.) deregister the variable account under the 1940 Act if such registration is
no longer required;
g.) operate the variable account as a management investment company under the
1940 Act (including managing the variable account under the direction of a
committee) or in any other form permitted by law;
h.) restrict or eliminate any voting rights of owners or other persons having
such rights as to the variable account; and
i.) make any other changes to the variable account or its operations as may be
required by the 1940 Act or other applicable law or regulations.
In the event of any such substitution or other change, we may make changes to
this and other policies as may be necessary or appropriate to reflect such
substitution or other changes.
The investment policy of a subaccount may not be changed unless:
a.) the change is approved, if required, by the Insurance Commissioner of the
State of Iowa; and
b.) a statement of such approval is filed, if required, with the insurance
department of the state in which this policy is delivered.
SECTION 9. TRANSFER PRIVILEGE
9.1 Can you transfer values among and between the accounts?
You may transfer values among and between the accounts while the insured is
living and before the maturity date by written request. The transfer privilege
allows you to:
a.) transfer an amount up to the amount invested in one subaccount to another
subaccount at any time;
b.) transfer an amount up to the amount invested in a subaccount to the fixed
account at any time except for the six month period after a transfer out of
the fixed account; and
c.) transfer an amount out of the fixed account at any time during the 30 day
period beginning on and immediately following the policy anniversary. Only
one transfer of up to 25% of the fixed account will be allowed each policy
year. Transfer of amounts from the fixed account to two or more subaccounts
occurring on the same day will be considered one transfer.
The service fee for the transfer, if any, is shown on the data page. The fee
will be deducted from the account from which the transfer is made. If a transfer
is made from more than one account at the same time, the fee will be deducted
pro rata from such accounts. If an account value is insufficient, the fee will
be deducted pro rata from the remaining accounts.
Multiple transfers made on the same day will be treated as one transfer for the
purpose of assessing a transfer fee. We reserve the right to waive any transfer
restrictions, or to limit or suspend the transfer privilege for a reasonable
period of time. Any waiver of transfer restriction, or limit or suspension of
the transfer privilege, will be administered in a nondiscriminatory manner.
SECTION 10. POLICY VALUE
10.1 What is your policy value?
Your policy value at any time is equal to the sum of the values you have in the
fixed account, the variable account, and the loan account.
10.2 How is your fixed account value determined? Your fixed account value is
equal to:
a.) the amounts allocated or transferred to the fixed account; plus
b.) interest earned; minus
c.) any partial withdrawal or loan taken; minus
d.) any amounts transferred to any subaccounts of the variable account.
We will credit interest on each monthly processing day on all amounts in the
fixed account at a rate not less than 4.00%. Additional interest will be
credited at our discretion.
10.3 How is your variable account value determined? Your variable account value
at the end of each valuation period is the total of your subaccount values. The
value for each subaccount is equal to:
a.) the number of that subaccount's accumulation units credited to you;
multiplied by
b.) the accumulation unit value for that subaccount at the end of the valuation
period for which the determination is being made.
10.4 How are accumulation unit values determined?
The accumulation unit value for each subaccount is determined at the end of each
valuation period and is calculated by subtracting b.) from a.) and dividing the
result by c.), where:
a.) is the net result of:
1.) the net assets of the subaccount attributable to the accumulation
units (i.e., the aggregate value of the underlying fund shares held by
the subaccount) as of the end of such valuation period; plus or minus
2.) the cumulative credit or charge with respect to any taxes reserved for
by us during the valuation period which we determine to be
attributable to the operation of the subaccount.
b.) is the cumulative unpaid charge for the mortality and expense risk charge.
The charge for a valuation period is equal to the daily charge for the
mortality and expense risk charge multiplied by the number of days in the
valuation period.
c.) is the number of accumulation units outstanding at the end of such
valuation period.
For each subaccount, net premium or transferred amounts are converted into
accumulation units. The number of accumulation units credited is determined by
dividing the dollar amount directed to each subaccount by the value of the
accumulation unit for that subaccount at the end of the valuation period in
which the net premium or transferred amount is received.
Cancellation of the appropriate number of accumulation units from a subaccount
will occur upon:
a.) deduction of insurance charges;
b.) a partial withdrawal or full surrender;
c.) a policy loan;
d.) a transfer from a subaccount;
e.) any service fee;
f.) payment of the death proceeds at the insured's death; or
g.) payment of the surrender value on the maturity date.
Accumulation units will be canceled as of the end of the valuation period in
which we receive notice of or instructions regarding the event.
10.5 How is your loan account value determined?
Your loan account value is equal to any amounts in the loan account, plus any
accrued loan account interest. (See Section 12.)
SECTION 11. PARTIAL WITHDRAWALS AND POLICY SURRENDER
11.1 What are the rules for a partial withdrawal?
You may make up to two partial withdrawals each policy year by written request.
Written consent of all assignees or irrevocable beneficiaries must be obtained
prior to any partial withdrawal. An amount up to the policy surrender value,
less two months of insurance charges, may be taken as a partial withdrawal.
Partial withdrawals will be effective as of the date we receive your written
request. A partial withdrawal request for the full surrender value will be
considered a full surrender of the policy.
You may specify the accounts from which the partial withdrawal, including the
service fee, will be deducted. If any account value is insufficient, or if you
do not specify the accounts, the amount will be deducted pro rata from all or
any of remaining accounts.
If death benefit Option 1 is in effect at the time of a partial withdrawal, the
specified amount will be reduced by the amount of the partial withdrawal,
including the amount of the service fee. If death benefit Option 2 is in effect
at the time of a partial withdrawal, there will be no effect on the specified
amount.
We reserve the right to decline a partial withdrawal request if the remaining
specified amount would be below the minimum specified amount necessary to issue
a new policy.
11.2 What are the rules for surrender of this policy?
You may surrender this policy for its surrender value by written request. The
written consent of all assignees or irrevocable beneficiaries must be obtained
prior to any surrender. The surrender date of the policy will be the date we
receive your written request. The surrender value will be determined as of the
end of the valuation period during which the surrender occurs. The surrender
value of your policy is equal to the policy value, less any applicable surrender
charges and loan amount.
Your policy and all insurance benefits will terminate as of the surrender date.
We may require you to return your policy to us.
11.3 What is the surrender charge?
The table of surrender charges is shown on the data page. Surrender charges are
based on the specified amount and the insured's age, gender (if this policy is
based on male or female cost of insurance rates), rating class, and will apply
only during the first 10 policy years. Any increase in specified amount will
have its own ten year surrender charge period.
SECTION 12. POLICY LOANS
12.1 Are loans available?
You may borrow up to 90% of your policy value, less any surrender charges, by
written request. This amount will be reduced by any existing loans when
determining the amount available for any additional loans. The written consent
of all assignees or irrevocable beneficiaries must be obtained prior to any
policy loan. Loan activity may affect any dividends payable on this policy.
You may specify the accounts from which the loan will be made. If you do not
specify the accounts, we will deduct the amount pro rata. The amount borrowed
from such accounts in connection with the loan will be transferred to the loan
account.
12.2 What is a standard loan?
Any loan taken prior to your tenth policy anniversary will be a standard loan.
12.3 What is a preferred loan?
Any new loan you take after your tenth policy anniversary will be a preferred
loan.
12.4 How will loan interest be determined?
Interest will be credited on the amount in the loan account at the effective
annual rate of 4.00%, as shown on the data page.
Interest is payable on policy loans and will accrue at the effective annual rate
determined at our discretion for standard and preferred loans, but not more than
6.00% for standard loans and 4.50% for preferred loans. The standard loan rate
and the preferred loan rate as of the policy issue date are shown on the data
page. Your loan amount is equal to the sum of your loan principal, plus any
accrued loan interest.
On each policy anniversary, any difference between the loan amount and the loan
account value will be transferred pro rata to the loan account, unless the
difference is paid in cash. Unpaid loan interest, when due, will increase the
amount of your loan.
12.5 How are policy loans repaid?
You may repay all or part of a policy loan during the lifetime of the insured
and prior to the maturity date. Any policy loans and unpaid loan interest
charges not repaid at the insured's death or at maturity are deducted from the
death or maturity proceeds.
Any amount we receive from you will be credited to your policy as a net premium
payment, unless we receive written request that the amount is for loan
repayment.
A loan repayment will be allocated to your accounts according to your premium
allocation percentages on file at the home office, unless you request otherwise.
SECTION 13. RESTRICTIONS ON POLICY
13.1 Are there any restrictions on payment of a partial withdrawal, full
surrender, or policy loan?
Generally, the amount of any full surrender, partial withdrawal, or policy loan
will be paid to you within seven days of our receipt of your written request.
In accordance with state law, we reserve the right to postpone payment of a
partial withdrawal, full surrender, or policy loan from the fixed account for up
to six months after we receive your written request. If payment is postponed for
more than 29 days, we will pay interest at an effective annual rate of 4.00% for
the period of postponement.
We reserve the right to postpone payment of a partial withdrawal, full
surrender, or policy loan from the variable account for any period when:
a.) the New York Stock Exchange is closed other than customary weekend and
holiday closing;
b.) trading on the Exchange is restricted;
c.) an emergency exists as a result of which it is not reasonable or
practicable to dispose of securities held in the variable account or
determine their value; or
d.) the Securities and Exchange Commission permits delay for the protection of
security holders.
The applicable rules of the Securities and Exchange Commission shall govern as
to whether the conditions in b.) and c.) exist.
SECTION 14. DEATH BENEFIT
14.1 What is the death benefit amount provided by your policy?
The death benefit amount is based on your specified amount and death benefit
option. Your specified amount and death benefit option as of the policy issue
date are shown on the data page.
14.2 What are the death benefit options?
Your policy offers two death benefit options:
a.) Option 1 (Level). As your policy value increases, the pure insurance amount
decreases, such that the total death benefit remains level. For Option 1,
the death benefit amount is equal to the greater of:
1.) the specified amount; or
2.) the policy value as of the insured's date of death, multiplied by the
death benefit percentage factor.
b.) Option 2 (Variable). As your policy value increases, your death benefit
increases. The pure insurance amount remains equal to your specified
amount. For Option 2, the death benefit amount is equal to the greater of:
1.) the specified amount plus the policy value; or
2.) the policy value as of the insured's date of death, multiplied by the
death benefit percentage factor.
14.3 What is the death benefit percentage factor?
The death benefit percentage factor is used to ensure that the death benefit
amount paid is at least the minimum amount required to be treated as life
insurance under the Internal Revenue Code. The factors used in calculating the
death benefit are shown below.
Age Factor Age Factor Age Factor
--- ------ --- ------- --- ------
0-40 2.50 54 1.57 68 1.17
41 2.43 55 1.50 69 1.16
42 2.36 56 1.46 70 1.15
43 2.29 57 1.42 71 1.13
44 2.22 58 1.38 72 1.11
45 2.15 59 1.34 73 1.09
46 2.09 60 1.30 74 1.07
47 2.03 61 1.28 75-90 1.05
48 1.97 62 1.26 91 1.04
49 1.91 63 1.24 92 1.03
50 1.85 64 1.22 93 1.02
51 1.78 65 1.20 94 1.01
52 1.71 66 1.19 95 1.00
53 1.64 .67 1.18
If your maturity date is extended (see Section 3), the death benefit percentage
factor will be equal to 1.01 on the policy anniversary at the insured's age 95
and will remain at 1.01 to the new maturity date. On the new maturity date, the
death benefit percentage factor will be equal to 1.00.
14.4 Can you change your death benefit option?
You may change your death benefit option at any time by written request. The
written consent of all assignees or irrevocable beneficiaries must be obtained
prior to the change. The change will become effective on the next occurring
monthly processing day after we receive your written request. We may require
evidence of insurability.
If Option 1 is changed to Option 2, your current specified amount will be
reduced by an amount equal to your policy value on the effective date of the
change.
If Option 2 is changed to Option 1, your current specified amount will be
increased by an amount equal to your policy value on the effective date of the
change.
14.5 Can you change your specified amount?
You may change your specified amount at any time after the first policy year by
written request. The written consent of all assignees or irrevocable
beneficiaries must be obtained prior to the change. The effective date of the
change will be shown on an endorsement to the data page. Any change is subject
to the following conditions:
a.) Decreases - We reserve the right to require that the specified amount
after any decrease be at least the minimum specified amount necessary to
issue a new policy. For purposes of determining cost of insurance, any
decrease in specified amount will reduce such amount in the following
order:
1.) the specified amount provided by the most recent increase will be
reduced;
2.) the next most recent increases will be reduced in succession; and
3.) the initial specified amount will be reduced last.
b.) Increases - A supplemental application must be completed, with evidence
of insurability satisfactory to us, on any increase in specified amount.
All policy provisions relating to the policy effective date will be
applied to the increase in specified amount as if a new policy had been
issued for that amount as of the effective date of the increase. We may
require you to pay the premium amount necessary to issue a new policy
for the amount of the increase.
Additional surrender charges, cost of insurance charges, and
administrative charges will apply corresponding to the amount of
increase. However, no additional charges will apply if the increase in
specified amount occurred solely due to a change in death benefit
option. These additional charges will be shown on an endorsement to the
data page.
A service fee, as shown on the data page, will be assessed for an
increase in the specified amount.
SECTION 15. PAYMENT OF PROCEEDS
15.1 When are proceeds payable?
Death proceeds are payable while this policy is in force in the event of the
insured's death. Maturity proceeds are payable in the event the insured is still
living on the maturity date.
15.2 What are the death proceeds?
The death proceeds are equal to the following amounts:
a.) the death benefit amount on the date of death (See Section 14); plus
b.) any premiums received after the date of death; minus
c.) any partial withdrawals taken after the date of death; minus
d.) any insurance charges due if the insured dies during a grace period; minus
e.) any loan amount.
15.3 How will death proceeds be paid?
The death proceeds will be payable to the beneficiary when we receive proof
satisfactory to us that the insured died while this policy was in force. Death
proceeds will be paid in a single sum, unless a settlement option has been
selected. (See Section 17.)
We will pay interest on single sum death proceeds from the date we receive
satisfactory proof of death (or from the date of the insured's death, if
required by law) until the date of payment. Interest will be paid at an annual
rate determined by us, but never less than the rate required by law.
15.4 What are the maturity proceeds?
The maturity proceeds are equal to the surrender value.
15.5 How will maturity proceeds be paid?
The maturity proceeds will be paid in a single sum, unless a settlement option
has been selected. (See Section 17.)
SECTION 16. BENEFICIARY
16.1 To whom will we pay the death proceeds?
We will pay the death proceeds of this policy to the beneficiary as stated in
the application, unless later changed as allowed by this policy. If no
beneficiary is stated, the beneficiary will be the insured's spouse, if living,
otherwise the insured's estate.
There are different classes of beneficiaries called primary and contingent.
These classes set the order of payment. There may be more than one beneficiary
in a class. Beneficiaries in the same class will receive equal payments unless
we have written instructions to the contrary.
16.2 What if a beneficiary dies before the insured?
Only a beneficiary who outlives the insured is eligible to receive the death
proceeds. If no primary beneficiary outlives the insured, the death proceeds
will be paid to the contingent beneficiary. If no primary or contingent
beneficiary outlives the insured, we will pay the death proceeds of this policy
to you, the owner, if living, otherwise to your estate.
16.3 Can you change the beneficiary?
You may change the beneficiary during the insured's lifetime by written request.
The written consent of all assignees or irrevocable beneficiaries must be
obtained prior to the change.
Your written request will not be effective until it is recorded in our home
office. After it has been recorded, it will take effect as of the date you
signed the request. However, we will not be responsible for any payment made or
other action taken before we record the request.
SECTION 17. SETTLEMENT OPTIONS
17.1 What are the requirements for selecting a settlement option?
You may select a settlement option during the insured's lifetime for payment of
death proceeds. You may also select a settlement option upon policy surrender or
maturity. The written consent of all assignees or irrevocable beneficiaries must
be obtained prior to the selection. A beneficiary may select a settlement option
only after the insured's death. However, you may provide that the beneficiary
will not be permitted to change a settlement option you have selected.
Any person who selects a settlement option may name a successor payee to receive
any remaining guaranteed payments due after the death of the payee. If the last
surviving payee dies before all the guaranteed payments have been made, we will
pay the present value of the remaining payments in one sum to that payee's
estate. The present value will be based on the rate of interest for the option
selected.
For a policy based on male or female cost of insurance rates, we may require due
proof of the age and gender of any payee who is to receive a life income. For a
policy based on blended cost of insurance rates, we may require due proof of the
age of any payee who is to receive a life income. The basis for cost of
insurance rates is shown on the data page.
17.2 What are the available settlement options?
There are four settlement options available for payment of policy proceeds. They
are described below. Other payment options may be available with our consent.
For Option 1, the minimum amount which can be applied is $2,500. If the monthly
interest payment for Option 1 is less than $25, we reserve the right to pay
interest annually. For all other options, the minimum amount which can be
applied is the greater of $2,500, or the amount required to provide an initial
monthly payment of $25.
Option 1 - Interest Option. We will pay interest on the proceeds which we will
hold as a principal sum during the lifetime of the payee. The payee may choose
to receive interest payments either once a year or once a month. We will
determine the effective rate of interest from time to time, but it will not be
less than an effective annual rate of 4.00%.
Option 2 - Installment Option. We will pay equal monthly payments for a chosen
number of years, not less than 5 nor more than 30. If the original payee dies
before payments have been made for the chosen number of years: a.) payments will
be continued for the remainder of the period to the successor payee; or b.) the
present value of the remaining payments, computed at the interest rate used to
create the Option 2 rates, will be paid to the successor payee or to the last
surviving payee's estate, if there is no successor payee.
The Option 2 rates shown in Section 18 are based on 4.00% interest per year.
Additional interest, if any, will be payable as we may determine from time to
time.
Option 3 - Life Income - Specified Guarantee Period Certain. We will pay monthly
payments for as long as the payee lives. If the original payee dies before all
of the payments have been made for the specified guaranteed period certain: a.)
payments will be continued during the remainder of the guaranteed period certain
to the successor payee; or b.) the present value of the remaining payments,
computed at the interest rate used to create the Option 3 rates, will be paid to
the successor payee or to the last surviving payee's estate, if there is no
successor payee.
The specified guaranteed period certain choices are:
a.) 0 years (life income only);
b.) 10 years; or
c.) 20 years;
Dividends, if any, will be payable as determined by us.
Option 4 - Joint and Survivor Life Income - 10 Year Guaranteed Period Certain.
We will pay monthly payments for as long as either of the original payees is
living. If, at the death of the second surviving payee, payments have been made
for less than 10 years: a.) payments will be continued during the remainder of
the guaranteed period certain to the successor payee; or b.) the present value
of the remaining payments, computed at the interest rate used to create the
Option 4 rates, will be paid to the successor payee or to the last surviving
payee's estate, if there is no successor payee.
Dividends, if any, will be payable as determined by us.
17.3 How will payments be determined?
The dollar amount of each fixed payment will be determined by dividing the
amount applied by $1,000, and multiplying the result by the applicable
settlement option rate.
SECTION 18. OPTION TABLES
18.1 What rates will be used to determine payment values for Option 2?
The rates below will be used to determine the dollar amount of the monthly
payments for Option 2. The rates show the dollar amount of each monthly payment
for each $1,000 applied. Rates for years payable not shown, if allowed by us,
will be calculated on an actuarially equivalent basis and will be available upon
request.
Option 2. Rates - First Payment Due at Beginning of Period.
Years Monthly Payment Payable Under
Payable Option 2 for each $1,000 Applied
------- --------------------------------
10 10.06
15 7.34
20 6.00
25 5.22
30 4.72
18.2 What rates will be used to determine payment values for Options 3 and 4?
The age adjustment table below and following rates will be used to determine the
dollar amount of the monthly payments for Options 3 and 4.
The male/female life income rates for Options 3 and 4 are based on the payee's
adjusted age and gender. The blended life income rates are based on the payee's
adjusted age. The life income rates for this policy are based on the cost of
insurance rate type as shown on the data page. The adjusted age is the payee's
age last birthday plus the age adjustment shown in the table below. The policy
years elapsed are from the policy issue date to the effective date of the
option. Any partial policy year is considered as a full policy year.
Contract Years Elapsed Age Adjustment
1-10 +3
11-20 +2
21-30 +1
+31 0
The following rates show the dollar amount of each monthly payment for each
$1,000 applied. The rates are based on the 1983A Mortality Tables and with
compound interest at the effective rate of 4.00% per year. Rates for adjusted
ages and guaranteed periods certain not shown, if allowed by us, will be
calculated on an actuarially equivalent basis and will be available upon
request.
Option 3. Life Income Rates - Guaranteed Period Certain - First Payment Due at
Beginning of Period.
Male/Female Life Income Rates
Per $1,000 Applied
<TABLE>
<CAPTION>
Adjusted Age - Male
Years 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0 5.29 5.39 5.49 5.61 5.73 5.86 6.00 6.16 6.32 6.49 6.68 6.88 7.09 7.31 7.56 7.82 8.09 8.39 8.71 9.05 9.41
10 5.20 5.29 5.38 5.48 5.59 5.70 5.82 5.95 6.08 6.21 6.35 6.50 6.65 6.81 6.97 7.14 7.31 7.48 7.65 7.83 8.00
20 4.94 5.00 5.06 5.12 5.18 5.24 5.31 5.37 5.43 5.48 5.54 5.59 5.64 5.69 5.73 5.77 5.81 5.84 5.87 5.89 5.91
Adjusted Age - Female
Years 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0 4.84 4.92 5.00 5.09 5.19 5.29 5.40 5.52 5.65 5.78 5.92 6.08 6.24 6.42 6.61 6.81 7.04 7.28 7.54 7.83 8.14
10 4.80 4.87 4.95 5.03 5.12 5.22 5.32 5.42 5.53 5.65 5.77 5.90 6.04 6.19 6.34 6.50 6.67 6.84 7.02 7.21 7.40
20 4.67 4.73 4.79 4.85 4.91 4.98 5.05 5.11 5.18 5.25 5.32 5.39 5.45 5.51 5.58 5.63 5.69 5.73 5.78 5.82 5.85
Blended Life Income Rates
Per $1,000 Applied
Adjusted Age - Blended
Years 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0 4.93 5.01 5.10 5.20 5.30 5.41 5.52 5.65 5.78 5.92 6.07 6.24 6.41 6.60 6.80 7.01 7.25 7.50 7.77 8.07 8.39
10 4.88 4.96 5.04 5.13 5.22 5.32 5.42 5.53 5.65 5.77 5.89 6.03 6.17 6.32 6.47 6.63 6.80 6.98 7.16 7.34 7.53
20 4.73 4.79 4.85 4.91 4.97 5.04 5.10 5.17 5.24 5.30 5.37 5.43 5.50 5.56 5.61 5.67 5.71 5.76 5.80 5.84 5.87
</TABLE>
Option 4. Life Income Factors - Joint and Survivor - 10 Year Guaranteed Period
Certain - First Payment Due at Beginning of Period.
<TABLE>
<CAPTION>
Male/Female Life Income Rates Blended Life Income Rates
Per 1,000 Applied Per $1,000 Applied
Adjusted Adjusted
Age Adjusted Age - Female Age Adjusted Age - Blended
Male 55 60 65 70 75 Blended 55 60 65 70 75
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
55 4.44 4.62 4.79 4.93 5.05 55 4.39 4.52 4.64 4.73 4.80
60 4.55 4.79 5.03 5.25 5.44 60 4.52 4.72 4.90 5.05 5.17
65 4.64 4.93 5.25 5.58 5.88 65 4.64 4.90 5.16 5.41 5.61
70 4.70 5.04 5.45 5.89 6.33 70 4.73 5.05 5.41 5.77 6.11
75 4.75 5.12 5.59 6.14 6.74 75 4.80 5.17 5.61 6.11 6.60
</TABLE>
Policy Number: 123456789
- -------------------------------------------------------------------------------
GUARANTEED MAXIMUM ANNUAL
- -------------------------------------------------------------------------------
COST OF INSURANCE RATE TABLE
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
OWNER(S): John Doe SPECIFIED AMOUNT: $50,000
INSURED: John Doe RATING: Standard Tobacco
ISSUE DATE: January 15, 2000 ISSUE AGE: 35
MATURITY DATE: January 15, 2060 GENDER: Male
DEATH BENEFIT: Option 1 COST OF INSURANCE RATES: Male
The rates shown are annual rates in dollars per $1,000. The annual cost of
insurance rate we charge will never be more than the guaranteed maximum annual
rates shown below. Monthly cost of insurance calculations will use one-twelfth
of these rates.
Age Rate Age Rate
35 2.72 68 48.39
36 2.92 69 52.35
37 3.17 70 56.72
38 3.45 71 61.63
39 3.77 72 67.18
40 4.14 73 73.33
41 4.54 74 80.07
42 4.98 75 87.27
43 5.46 76 94.63
44 5.99 77 102.02
45 6.55 78 109.49
46 7.13 79 117.30
47 7.76 80 125.71
48 8.44 81 134.96
49 9.18 82 145.21
50 10.00 83 156.29
51 10.93 84 167.83
52 11.98 85 179.44
53 13.17 86 190.84
54 14.47 87 202.54
55 15.86 88 214.73
56 17.33 89 226.85
57 18.88 90 239.08
58 20.51 91 251.80
59 22.26 92 266.55
60 24.21 93 285.47
61 26.41 94 311.27
62 28.89
63 31.66
64 34.69
65 37.90
66 41.26
67 44.74
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
Flexible Premium Variable Universal Life Insurance
Adjustable Death Benefit
Flexible Premiums Payable During Lifetime of Insured Until Age 95
Death Benefit Payable at Death of Insured Prior to Maturity Date
Participating
CUNA MUTUAL LIFE INSURANCE COMPANY
2000 Heritage Way, Waverly, Iowa 50677
Telephone: (319) 352-4090
EXHIBIT 5a(i)
Form 1668
ACCELERATED BENEFIT OPTION ENDORSEMENT
This endorsement is a part of the policy to which it is attached. All
definitions, provisions and exceptions of the policy apply to this endorsement,
unless changed by this endorsement. This endorsement applies to Your basic
policy and any attached life insurance riders. If We pay You an accelerated
benefit, the applicable cash values, loan values and death benefit will be
reduced.
BENEFIT PAYMENTS UNDER THIS ENDORSEMENT MAY BE TAXABLE. CONSULT
YOUR TAX ADVISOR.
DEFINITIONS
"INSURED" means the person who is covered for benefits under the policy or any
life insurance riders to which this endorsement is attached.
"DOCTOR" means a physician having the designation Doctor of Medicine (M.D.),
excluding You, the Insured, or a member of Your family or the Insured's family.
"HOME OFFICE" means Century Life of America, 2000 Heritage Way,
Waverly, Iowa, 50677.
"TERMINAL ILLNESS" means a non-correctable medical condition in which the
Insured's life expectancy is no more than twelve (12) months, as certified in
writing by a Doctor.
"WE, OUR, US" means Century Life of America.
"YOU, YOUR" means the owner of this policy.
BENEFIT
If You so elect, We will pay a portion of the eligible death proceeds to You if
the Insured has a Terminal Illness, according to the provisions of this
endorsement.
Eligible death proceeds refers to:
1. The amount of insurance payable upon the death of the Insured; or
2. The amount of insurance payable one (1) year from the date We
receive a written request to exercise this option, if less; or
3. The amount of insurance, not including the accumulated value,
for a Flexible Premium Adjustable Life Insurance Policy or
Flexible Premium Variable Life Insurance Policy; and
4. Includes any paid up additions, other than one year term additions.
In order to be considered eligible:
1. The coverage must be in force other than as extended term insurance.
2. The coverage must have more than two years until its maturity or expiration
date, from the date written notification is received at the Home Office of
Your request to exercise this benefit option.
ACCELERATED BENEFIT AMOUNT
The Acceleration Amount is the portion of the eligible death
proceeds which You elect to apply under this option.
The total Acceleration Amount on all Century Life of America
policies must be at least $5,000 and may not exceed the lesser of:
1. 50% of the eligible death proceeds on the life of the Insured; or
2. $250,000.
This benefit option may be exercised no more than two times.
<PAGE>
PAYABLE PROCEEDS
The term Payable Proceeds means the amount paid if You elect to exercise this
benefit option. We will discount (reduce) the Acceleration Amount assuming an
interest rate equal to the lesser of: 8%, or the applicable federal interest
rate determined under Section 846(c)(2) of the Internal Revenue Service Code. In
calculating the Payable Proceeds, We will also consider (if they apply):
1. The total of any outstanding policy loans plus loan interest on
all such policy loans;
2. Expected future premiums or costs of insurance;
3. Expected future dividends; and
4. An administrative fee of $300.
The Payable Proceeds will be paid either as a lump sum, or in equal monthly
payments for a fixed period. The minimum monthly payment is $500 and the maximum
fixed period is twelve months.
If the Insured dies before all monthly payments have been made, We will pay the
present value of the remaining payments to the beneficiary. The present value of
the remaining payments will be calculated using the same interest rate as that
used to determine the monthly payments.
CONDITIONS OF PAYMENT
Payment of this benefit is subject to the following conditions:
1. You must provide proof, satisfactory to Us, that the Insured has a Terminal
Illness. Satisfactory proof will include a written statement from a Doctor,
which must be received at the Home Office.
2. We have the right to require, at Our expense, that the Insured be examined by
a Doctor of Our choosing in order to verify the diagnosis and prognosis.
3. Any assignee, irrevocable beneficiary or other party with ownership rights
must consent to payment of this benefit.
GENERAL
The effective date of this endorsement is the same as that of the policy, to
which it is attached.
This endorsement allows for the accelerated payment of death benefit proceeds,
which would otherwise be payable to Your beneficiary. This is not meant to cause
You to involuntarily be required to access and exhaust these benefits. You may
not access this benefit if:
1. You are required by law to use this benefit to meet the claims of creditors,
whether in bankruptcy or otherwise; or
2. You are required by a government agency to use this benefit in order to apply
for, obtain, or otherwise keep a government benefit or entitlement.
EFFECT ON POLICY
After this option is exercised, the applicable policy values and amounts of
insurance will be reduced by the Acceleration Percentage. The Acceleration
Percentage is equal to the Acceleration Amount divided by the Eligible Death
Proceeds. The new premiums or cost of insurance on the remaining coverage will
be those which would have applied if originally issued at the reduced amount.
Any insurance not included in the calculation of the Payable Proceeds will not
be affected. We will send You information showing the new premium or cost of
insurance, policy values and amount of insurance.
<PAGE>
TERMINATION
This endorsement will terminate on the earliest of:
1. The date any premium on this policy remains in default at the
end of the grace period; or
2. The date this policy terminates or matures; or
3. The date We receive Your written notification at the Home Office
to terminate this endorsement; or
4. The Insured's death.
CUNA Mutual Life Insurance Company
A Mutual Insurance Company
/s/ Michael B. Kitchen
EXHIBIT 5a(ii)
99-ADB-RV1
ACCIDENTAL DEATH BENEFIT RIDER
RIDER SECTION 1. GENERAL INFORMATION
1.1 What is our agreement with you?
Our agreement with you includes this rider and its application, as a part of the
policy to which it is attached. The provisions of the policy apply to this rider
unless they conflict with the rider. If there is a conflict, the rider provision
will apply. The issue date for this rider is shown on the accidental death
benefit annual cost of insurance rate table.
We promise to provide the proceeds described in this rider as long as the policy
and this rider are in force and all the terms and conditions of this rider are
met.
1.2 What is the benefit provided by this rider?
This rider provides accidental death benefit insurance on the life of the person
named as insured under this policy.
1.3 Can this rider be contested?
We relied on statements made in the application when we issued this rider. In
the absence of fraud, we will accept the statements made in the application or
reinstatement application to be representations and not warranties. Statements
made in the application or reinstatement application will not be used to contest
this rider or challenge a claim under this rider unless that statement is
material.
A statement is material if, based on correct and complete information, we would
have:
a.) denied coverage;
b.) issued the rider at a higher cost of insurance rate; or
c.) issued the rider on some other basis than applied for.
If this rider is void as a result of a contest, the cost you paid for this rider
will be refunded to you.
1.4 When does this rider become incontestable?
This rider is incontestable after it has been in force during the insured's
lifetime for two years from its issue date. If this rider is reinstated, it is
incontestable after it has been in force during the insured's lifetime for two
years from the date of its reinstatement. If reinstatement occurs, it may be
contested on the basis of statements made in the reinstatement application.
1.5 When will this rider terminate?
This rider will terminate on the earliest of:
a.) the death of the insured;
b.) the lapse or termination of the policy;
c.) the policy anniversary at the insured's age 70; or
d.) the date you choose to end this rider. You may end
it by written request.
RIDER SECTION 2. RIDER INSURANCE CHARGES
2.1 What is the cost of this rider?
The cost of this rider is paid as part of the insurance charges for the policy
to which it is attached. The cost for this rider is payable until the rider
terminates. The cost of insurance rates are shown on the accidental death
benefit annual cost of insurance rate table.
RIDER SECTION 3. RIDER SPECIFIED AMOUNT
3.1 What is the specified accidental death benefit amount provided by this
rider?
The rider specified amount is shown on the policy data page and on the
accidental death benefit annual cost of insurance rate table.
RIDER SECTION 4. RIDER ACCIDENTAL DEATH PROCEEDS
4.1 When are rider accidental death proceeds payable?
Rider accidental death proceeds are payable while this rider is in force in the
event of the insured's accidental death due to injury. We will pay the rider
specified amount in addition to the death proceeds of the policy if:
a.) the insured's death:
1.) is a direct result of accidental bodily injury, independent of all
other causes; and
2.) occurs within 90 days of the injury;
b.) both injury and death occur:
1.) on or after the insured reaches the age of four weeks;
2.) before the policy anniversary at the insured's age 70; and
3.) while the policy and rider are in force; and
c.) we receive satisfactory proof of the insured's death
due to accidental bodily injury.
4.2 What is the amount of accidental death benefit insurance provided by this
rider?
The rider accidental death proceeds will be the sum of the following amounts:
a.) the rider specified amount; plus
b.) the rider cost paid beyond the month in which death
by accidental injury occurs; minus
c.) any rider cost due.
If the insured dies before reaching the age of one year, the accidental death
proceeds will be one-half of the rider specified amount.
If the death of the insured occurs during a grace period, the insurance charges
for the policy will be deducted from the rider accidental death proceeds.
4.3 How will the rider accidental death proceeds be paid?
The rider accidental death proceeds will be payable to the beneficiary, as
stated in the application for this rider, when we receive proof satisfactory to
us that the insured died while this rider was in force as a result of accidental
bodily injury. If no beneficiary is named, the proceeds will be paid to the
insured's spouse, if living, otherwise to the insured's estate. Rider death
proceeds will be paid according to the provisions of the policy.
RIDER SECTION 5. LIMITATIONS
5.1 Are there any limitations to this rider benefit?
Accidental death benefit rider proceeds will not be payable if the insured dies
as a result of any of the following causes:
a.) death by suicide, whether sane or insane;
b.) death by intentionally self-inflicted injuries;
c.) death by injuries sustained while committing an
assault or felony;
d.) death by injuries sustained while participating in a
riot or revolt;
e.) death by injuries sustained while in military service
during a time of declared or undeclared war, and
while outside of the United States, the District of
Columbia, or the Dominion of Canada;
f.) death by injuries caused by an act of declared or
undeclared war;
g.) death by injuries sustained while traveling in or
descending from any kind of aircraft if the insured
is:
1.) a pilot, student pilot, flight instructor, member of the crew, or has
other duties related to the flight of the aircraft;
2.) participating in flight training;
3.) sky diving from any kind of aircraft; or
4.) aboard an aircraft which is being used primarily for training,
instruction, testing, or experimental purposes.
CUNA Mutual Life Insurance Company
A Mutual Insurance Company
/s/ Michael B. Kitchen
President
- -----------------------------------------------------------
ACCIDENTAL DEATH BENEFIT
- -----------------------------------------------------------
ANNUAL COST OF INSURANCE RATE TABLE
ACCIDENTAL DEATH BENEFIT RIDER
INSURED: John Doe RATING: Standard Tobacco
ISSUE DATE: January 15, 2000 ISSUE AGE: 35
EXPIRATION DATE: January 15, 2035 GENDER: Male
SPECIFIED AMOUNT: $50,000 COST OF INSURANCE RATES: Male
The rates shown are annual rates per $1,000 of accidental death benefit. Monthly
rates are one-twelfth of the annual rates.
Age Rate Age Rate
0 .59 35 .69
1 .59 36 .70
2 .57 37 .71
3 .55 38 .72
4 .53 39 .73
5 .51 40 .74
6 .49 41 .75
7 .47 42 .77
8 .46 43 .79
9 .46 44 .81
10 .46 45 .83
11 .48 46 .85
12 .49 47 .87
13 .54 48 .88
14 .64 49 .90
15 .77 50 .91
16 .83 51 .92
17 .88 52 .94
18 .92 53 .96
19 .94 54 .99
20 .95 55 1.02
21 .96 56 1.06
22 .94 57 1.10
23 .89 58 1.14
24 .84 59 1.18
25 .79 60 1.22
26 .75 61 1.28
27 .71 62 1.33
28 .68 63 1.40
29 .68 64 1.47
30 .67 65 1.54
31 .67 66 1.61
32 .67 67 1.69
33 .68 68 1.77
34 .68 69 1.86
EXHIBIT 5a(iii)
99-CIR-RV1
CHILDREN'S INSURANCE RIDER
RIDER SECTION 1. GENERAL INFORMATION
1.1 What is our agreement with you?
Our agreement with you includes this rider and its application, as a part of the
policy to which it is attached. The provisions of the policy apply to this rider
unless they conflict with the rider. If there is a conflict, the rider provision
will apply. The issue date for this rider is shown on the insured child annual
cost of insurance rate table.
We promise to pay the death proceeds of this rider and provide all other
benefits described in this rider as long as the policy and this rider are in
force.
1.2 What is the benefit provided by this rider?
This rider provides monthly renewable term life insurance on the life of any
insured child and continues until the policy anniversary at the insured child's
age 23.
1.3 Who is the insured child under this rider?
The insured child under this rider is any child, stepchild, or legally adopted
child of the person insured under the policy to which this rider is attached.
Any child born or legally adopted on or before the date of application must be
living, named in the application, and under age 18 on the date of application.
Any child born alive to, or legally adopted by, the person insured under the
policy to which this rider is attached after the date of application will be
insured. Legal adoption must occur prior to the child's age 18. Written notice
of the addition of a child or children to this rider should be sent to our home
office.
Although only a single copy of this rider is included with this policy, the
benefit provided by this rider applies to each insured child.
1.4 Can this rider be contested?
We relied on statements made in the application when we issued this rider. In
the absence of fraud, we will accept the statements made in the application or
reinstatement application to be representations and not warranties. Statements
made in the application or reinstatement application will not be used to contest
this rider or challenge a claim under this rider unless that statement is
material.
A statement is material if, based on correct and complete information, we would
have:
a.) denied coverage;
b.) issued the rider at a higher cost of insurance rate;
or
c.) issued the rider on some other basis than applied
for.
If this rider is void as a result of a contest, the cost you paid for this rider
will be refunded to you.
1.5 When does this rider become incontestable?
This rider is incontestable after it has been in force during the insured
child's lifetime for two years from its issue date. If this rider is reinstated,
it is incontestable after it has been in force during the insured child's
lifetime for two years from the date of its reinstatement. If reinstatement
occurs, it may be contested on the basis of statements made in the reinstatement
application.
1.6 What if the insured child's age has been misstated?
If any insured child's age has been misstated, the amount payable will be
adjusted to reflect the correct age.
If this rider would have ended at an earlier date, we will refund the rider cost
paid beyond the correct rider termination date, without interest. If this rider
would not have been issued, it will be deemed void from the start. It will be
treated as if it had not been issued and any rider cost paid will be refunded,
without interest.
1.7 Is there a suicide exclusion?
Suicide by an insured child, whether sane or insane, within two years of this
rider's issue date or reinstatement date is not covered by this rider. If an
insured child dies by suicide during this two year period, we will refund,
without interest, any rider cost paid for the period of time during which the
child was the only insured child covered under this rider.
1.8 When will this rider terminate?
This rider will terminate on the earliest of:
a.) the lapse or termination of the policy;
b.) the rider anniversary at age 65 of the person insured
under the policy to which this rider is attached; or
c.) the date you choose to end this rider. You may end
it by written request.
RIDER SECTION 2. RIDER INSURANCE CHARGES
2.1 What is the cost of this rider?
The cost of this rider is paid as part of the insurance charges for the policy
to which it is attached. The cost for this rider is payable until the rider
terminates.
2.2 How is the cost for this rider determined?
The cost for this rider is based on the cost of insurance rate schedule and the
rider specified amount.
RIDER SECTION 3. RIDER SPECIFIED AMOUNT
3.1 What is the specified death benefit amount provided by this rider?
The rider specified amount is shown on the policy data page and on the insured
child annual cost of insurance rate table.
The specified amount is based on the number of units of children's insurance.
RIDER SECTION 4. RIDER DEATH PROCEEDS
4.1 When are rider death proceeds payable?
Rider death proceeds are payable while this rider is in force in the event of
the insured child's death. The insured child's death must occur on or before the
policy anniversary at the insured child's age 23.
4.2 What are the rider death proceeds?
The rider death proceeds will be the rider specified amount based on the age of
the insured child, as follows:
a.) live birth to age 15 days (360 hours).................$250 per unit
b.) age 15 days to age 6 months...........................$500 per unit
c.) age 6 months to the policy anniversary
at the insured child's age 23..................$1,000 per unit
If the death of any insured child occurs during a grace period, the insurance
charges for the policy will be deducted from the rider death proceeds.
4.3 How will the rider death proceeds be paid?
The rider death proceeds will be payable to the beneficiary, as stated in the
application for this rider, when we receive proof satisfactory to us that the
insured child died while this rider was in force. The insured child's death must
occur on or before the policy anniversary at the insured child's age 23. Rider
death proceeds will be paid according to the provisions of the policy.
4.4 Is there a paid-up benefit upon the death of the person insured under the
policy to which this rider is attached?
If the person insured under the policy to which this rider is attached dies,
this rider terminates and no further premium payments will be required. Each
insured child will then be issued and become owner of a paid-up term insurance
policy. The paid-up term insurance will be the same amount as provided under
this rider as if this rider had not terminated. The paid-up insurance will
expire on the date which would have been the policy anniversary at the insured
child's age 23.
The paid-up term insurance has cash value. The cash value at any time will equal
the then present value of future benefits provided to each insured child. These
present values are based on the CSO Mortality Table then in effect, assuming:
a.) interest at 4.5% per year compounded annually;
b.) death benefits payable immediately upon death; and
c.) ages as determined on a last birthday basis.
A statement of such cash values will be furnished upon request.
The cash value of the paid-up term insurance may be surrendered at any time by
written request.
RIDER SECTION 5. CONVERSION PRIVILEGE
5.1 Can this rider be converted to a new policy?
The insurance coverage provided by this rider on an insured child may be
converted to a new policy while this rider is in force provided:
a.) your written request is made for an insured child on
the policy anniversary at the insured child's age
23, or the expiration date of this rider, if earlier;
b.) all cost due on this rider has been paid; and
c.) the new policy is a permanent life insurance policy
we are then issuing.
The suicide and incontestability provisions of the new policy will be measured
from the issue date of this rider.
5.2 What is the amount of insurance for the new policy?
The amount of insurance for the new policy issued will be $5,000 per unit of
children's insurance. An insured child may increase the amount of insurance for
the new policy by providing evidence of insurability satisfactory to us. The
suicide and incontestability provisions for any increase will be measured from
the date of the increase.
5.3 What is the effective date of the new policy?
The effective date of the new policy will be the monthly processing day on or
following receipt of your written request in our home office.
5.4 What basis will be used to determine the premium for the new policy?
The premium for the new policy will be based on the insured child's age at
conversion, gender ( if the new policy is based on male or female cost of
insurance rates), and rating class as of the date this rider was issued.
5.5 Will evidence of insurability be required?
Evidence of insurability will not be required to convert existing coverage.
However, if any riders are requested with the new policy, we will require
evidence of insurability satisfactory to us for the additional coverage.
RIDER SECTION 6. DIVIDENDS
6.1 Will this rider receive dividends?
While this rider is in force, it will share in our divisible surplus. We will
determine once a year if any dividends are payable on this rider. Any dividends
will be combined with and applied using the same method selected for the policy.
We do not anticipate any dividends to be paid on this rider.
CUNA Mutual Life Insurance Company
A Mutual Insurance Company
/s/ Michael B. Kitchen
President
- -----------------------------------------------------------
INSURED CHILD ANNUAL COST OF INSURANCE RATE TABLE
- -----------------------------------------------------------
CHILDREN'S INSURANCE RIDER
INSURED: Children SPECIFIED AMOUNT: 10 Units
(See Section 4 of this rider)
ISSUE DATE: January 15, 2000
EXPIRATION DATE: January 15, 2030 ANNUAL COST OF INSURANCE*: [$90.00]
* Monthly cost of insurance calculations will use one-twelfth of the annual cost
of insurance.
EXHIBIT 5a(iv)
98-EBP
CUNA Mutual Life Insurance Company
A Mutual Insurance Company
2000 Heritage Way, Waverly, Iowa 50677
Phone: 800/798-5500
EXECUTIVE BENEFIT PLAN ENDORSEMENT
SECTION 1. GENERAL INFORMATION
What is our agreement with you?
Our agreement with you includes this endorsement as a part of the policy or
contract (herein referred to as "policy") to which it is attached. The
provisions of the policy apply to this endorsement unless changed by this
endorsement.
SECTION 2. BENEFIT
What is the benefit provided by this endorsement?
This endorsement waives the surrender charges or deferred charges on the policy
to which it is attached subject to the following:
a.) this policy is surrendered and the proceeds are used
to fund a new policy provided through CUNA Mutual
Life Insurance Company or an affiliate;
b.) this policy is owned by a business or a trust;
c.) the new policy is owned by the same entity;
d.) the insured or annuitant under this policy is a
selected manager or a highly compensated employee (as those terms are
defined by Title 1 of the Employee Retirement Income Security Act, as
amended);
e.) the insured or annuitant under the new policy is also
a selected manager or a highly compensated employee;
f.) we receive an application for the new policy; and
g.) we have evidence of insurability satisfactory to us.
SECTION 3. CHARGES
Is there a charge for this benefit?
There is no charge for this benefit. However, if you exercise the right provided
by this endorsement during the first two policy years, we reserve the right to
charge a fee to offset expenses incurred. Any fee charged will never be greater
than $150.00.
CUNA Mutual Life Insurance Company
A Mutual Insurance Company
/s/ Michael B. Kitchen
President
EXHIBIT 5a(v)
99-GIR-RV1
GUARANTEED INSURABILITY RIDER
RIDER SECTION 1. GENERAL INFORMATION
1.1 What is our agreement with you?
Our agreement with you includes this rider and its application, as a part of the
policy to which it is attached. The provisions of the policy apply to this rider
unless they conflict with the rider. If there is a conflict, the rider provision
will apply. The issue date for this rider is shown on the guaranteed
insurability annual cost of insurance rate table.
1.2 What is the benefit provided by this rider?
You may purchase additional insurance on the life of the person named as insured
under the policy without evidence of insurability on any option date by written
request, as described in Section 3, if the policy and this rider are in force.
The additional insurance will be provided by increasing the specified amount of
the policy to which this rider is attached. This rider does not provide the
right to increase the amount of insurance provided by any accidental death
benefit rider attached to the policy.
1.2 Can this rider be contested?
We relied on statements made in the application when we issued this rider. In
the absence of fraud, we will accept the statements made in the application or
reinstatement application to be representations and not warranties. Statements
made in the application or reinstatement application will not be used to contest
this rider or challenge a claim under this rider unless that statement is
material.
A statement is material if, based on correct and complete information, we would
have:
a.) denied coverage;
b.) issued the rider at a higher cost of insurance rate;
or
c.) issued the rider on some other basis than applied for.
If this rider is void as a result of a contest, any cost you paid for this rider
will be refunded to you.
1.4 When does this rider become incontestable?
This rider is incontestable after it has been in force during the insured's
lifetime for two years from its issue date. If this rider is reinstated, it is
incontestable after is has been in force during the insured's lifetime for two
years from the date of its reinstatement. If reinstatement occurs, it may be
contested on the basis of statements made in the reinstatement application.
1.5 Is there a suicide exclusion?
No temporary death benefit, as described in Section 3, is provided if death
occurs by suicide, while sane or insane, within two years of the issue date of
this rider. If an option for an increase in the specified amount is exercised
and the insured dies by suicide within two years of this rider's issue date, the
only amount payable with respect to the increase will be a return of the cost of
insurance and administrative charge paid for the increase.
1.6 When will this rider terminate?
This rider will terminate on the earliest of:
a.) the lapse or termination of the policy;
b.) the policy anniversary at the insured's age 40; or
c.) the date you choose to end this rider. You may end
it by written request.
RIDER SECTION 2. RIDER INSURANCE CHARGES
2.1 What is the cost of this rider?
The cost for this rider is paid as part of the insurance charges for the policy
to which it is attached. The cost for this rider is payable until the rider
terminates. The cost of insurance rates are shown on the guaranteed insurability
annual cost of insurance rate table.
RIDER SECTION 3. PURCHASE OF ADDITIONAL INSURANCE
3.1 When can you apply for additional amounts of insurance?
You may apply for additional amounts of insurance on any option date which
occurs after the issue date of this rider. The maximum amount of additional
insurance you may purchase at each option date is shown on the policy data page.
Option dates are policy anniversaries at the insured's age 25, 28, 31, 34, 37,
and 40.
We must receive written application for the additional insurance within 60 days
prior to or on the option date. The additional insurance will become effective
on the option date.
If you do not exercise your right to purchase additional insurance on or prior
to an option date, that option will expire. The expiration of any one option
will have no effect on any future options.
3.2 Can you purchase additional amounts of insurance in advance of an option
date?
You may purchase additional amounts of insurance in advance of the next option
date if:
a.) the insured marries; or
b.) the insured becomes a parent by birth of a living
child or completion of the legal adoption of a minor.
In order to exercise an option in advance:
a.) we must receive a written application for the
additional insurance while the insured is living and
prior to the third monthly processing day following
the marriage, birth, or adoption; and
b.) you must provide proof, in a form satisfactory to us,
of the marriage, birth, or adoption.
If you exercise an option in advance, the effective date of the additional
insurance will be the third monthly processing day following the marriage,
birth, or adoption. If an option is taken in advance, it will not be available
on the actual option date.
3.3 Will a temporary death benefit be provided if death occurs when an option
could have been exercised?
If the insured dies during a period when an option could have been exercised, a
temporary death benefit will be provided as if the option had been exercised.
The temporary death benefit will be the maximum amount of additional insurance
which could have been purchased under that option.
The temporary death benefit will be paid to the beneficiary in the same manner
as the policy death proceeds.
CUNA Mutual Life Insurance Company
A Mutual Insurance Company
/s/ Michael B. Kitchen
President
- -----------------------------------------------------------
GUARANTEED INSURABILITY ANNUAL
- -----------------------------------------------------------
COST OF INSURANCE RATE TABLE
GUARANTEED INSURABILITY RIDER
INSURED: John Doe MAXIMUM AMOUNT OF
ADDITIONAL INSURANCE: $50,000
ISSUE DATE: January 15, 2000 ISSUE AGE: 35
EXPIRATION DATE: January 15, 2005 GENDER: Male
ANNUAL PREMIUM: $103.50
The rates shown are monthly rates per $1,000 of the maximum amount of additional
insurance that may be purchased.
Age Rate Age Rate
0 .87 19 1.35
1 .89 20 1.38
2 .91 21 1.39
3 .94 22 1.41
4 .96 23 1.47
5 .98 24 1.54
6 1.00 25 1.56
7 1.03 26 1.60
8 1.06 27 1.61
9 1.08 28 1.71
10 1.10 29 1.79
11 1.13 30 1.85
12 1.15 31 1.85
13 1.18 32 1.84
14 1.20 33 1.95
15 1.23 34 2.01
16 1.25 35 2.07
17 1.28 36 2.05
18 1.31 37 1.87
EXHIBIT 5a(vi)
99-OIR-RV1
TERM INSURANCE RIDER FOR OTHER INSUREDS
RIDER SECTION 1. GENERAL INFORMATION
1.1 What is our agreement with you?
Our agreement with you includes this rider and its application, as a part of the
policy to which it is attached. The provisions of the policy apply to this rider
unless they conflict with the rider. If there is a conflict, the rider provision
will apply. The issue date for coverage under this rider is shown on the other
insured rider data page and on the guaranteed maximum other insured annual cost
of insurance rate table.
We promise to pay the death proceeds of this rider and provide all other
benefits described in this rider as long as the policy and this rider are in
force.
1.2 What is the benefit provided by this rider?
This rider provides monthly renewable term life insurance on the life of the
other insured.
1.3 Who is the other insured under this rider?
The other insured is a person whose life is insured under this rider as named on
the data page for this rider. Although only a single copy of this rider is
included with this policy, the benefit provided by this rider may apply to more
than one person. Terms such as age, gender, issue date, application, and
specified amount refer to each other insured individually.
1.3 Can this rider be contested?
We relied on statements made in the application when we issued this rider. In
the absence of fraud, we will accept the statements made in the application or
reinstatement application to be representations and not warranties. Statements
made in the application or reinstatement application will not be used to contest
this rider or challenge a claim under this rider unless that statement is
material.
A statement is material if, based on correct and complete information, we would
have:
a.) denied coverage;
b.) issued the rider at a higher cost of insurance rate; or
c.) issued the rider on some other basis than applied for.
If this rider is void as a result of a contest, the cost you paid for this rider
will be refunded to you.
1.5 When does this rider become incontestable?
This rider is incontestable after it has been in force during the other
insured's lifetime for two years from the issue date of coverage for that other
insured. If this rider is reinstated, it is incontestable after it has been in
force during the other insured's lifetime for two years from the date the
coverage for that other insured was reinstated. If reinstatement occurs, it may
be contested on the basis of statements made in the reinstatement application.
Any amount of increase in the rider specified amount for an other insured
becomes incontestable after the increase has been in force during that other
insured's lifetime for two years from the effective date of the increase.
1.6 What if the other insured's age or gender has been misstated?
If the other insured's age or gender has been misstated, an adjustment will be
made to reflect the correct age and gender as follows:
a.) If the misstatement is discovered at death, the rider death benefit amount
will be adjusted based on what the cost of insurance rate as of the most
recent monthly processing day would have purchased at the other insured's
correct age and gender.
b.) If the misstatement is discovered prior to death, the cost of insurance
rate will be adjusted based on the other insured's correct age and gender
beginning on the next monthly processing day.
1.7 Is there a suicide exclusion?
Suicide by the other insured, whether sane or insane, within two years of this
rider's issue date or reinstatement date is not covered by this rider. If the
other insured dies by suicide during this two year period, the cost you paid for
this rider will be refunded to you. If the other insured dies by suicide within
two years of the date of an increase in the rider specified amount, the only
amount payable with respect to the increase will be a return of the rider cost
made for the increase.
1.8 When will this rider terminate?
This rider will terminate on the earliest of:
a.) the death of the other insured;
b.) the lapse or termination of the policy;
c.) the conversion date of this rider;
d.) the rider anniversary at the other insured's age 95;
or
e.) the date you choose to end this rider. You may end
it by written
request.
RIDER SECTION 2. RIDER INSURANCE CHARGES
2.1 What is the cost of this rider?
The cost of this rider is paid as part of the insurance charges for the policy
to which it is attached. The cost for this rider is payable until the rider
terminates.
2.2 How is the cost for this rider determined?
The cost for this rider consists of the cost of insurance for this rider, plus
the rider fee. The cost of insurance is based on the current rider cost of
insurance rate schedule in effect, the rider specified amount for each other
insured, and each other insured's attained age, gender, and rating class.
2.3 Can the current rider cost of insurance rate schedule be changed?
We may change the current rider cost of insurance rate schedule from time to
time based on changes in future expectations for such factors as: investment
earnings, mortality, persistency, expenses, and taxes. Any change will apply to
all persons of the same age, gender, plan of insurance, and rating class, and
whose riders have been in effect for the same length of time. We will not change
the current rider cost of insurance rates because of a change in the other
insured's health or occupation, or to recoup prior losses.
The current rider cost of insurance rates will never be greater than those shown
in the guaranteed maximum other insured annual cost of insurance rate table.
RIDER SECTION 3. RIDER SPECIFIED AMOUNT
3.1 What is the specified death benefit amount provided by this rider?
The rider specified amount for each other insured is shown on the other insured
rider data page and on the guaranteed maximum other insured annual cost of
insurance rate table for that other insured.
3.2 Can you make a change to your rider specified amount?
You may change the rider specified amount on any other insured at any time after
the first policy year by written request. The written consent of all assignees
or irrevocable beneficiaries must be obtained prior to the change. The effective
date of the change will be shown on an endorsement to the data page. Any change
is subject to the following conditions:
a.) Decreases - We reserve the right to require that the rider specified amount
after any decrease be at least the minimum rider specified amount necessary
to issue a new rider. For purposes of determining cost of insurance, any
decrease in the rider specified amount will reduce such amount in the
following order:
1.) the rider specified amount provided by the most recent increase will
be reduced;
2.) the next most recent increases will be reduced in succession; and
3.) the initial rider specified amount will be reduced last.
b.) Increases - A supplemental application must be completed, with evidence of
insurability satisfactory to us on the increase in rider specified amount.
All rider provisions relating to the rider effective date will be applied
to the increase in rider specified amount as if a new rider had been issued
for that amount as of the effective date of the increase. We may require
you to pay the premium amount necessary to issue a new rider for the amount
of the increase.
Additional rider cost of insurance charges will apply corresponding to the
amount of increase. These additional charges will be shown on an
endorsement to the data page.
We reserve the right to assess a service charge, as shown on the policy
data page, for any increase in rider specified amount.
RIDER SECTION 4. RIDER DEATH PROCEEDS
4.1 When are rider death proceeds payable?
Rider death proceeds are payable while this rider is in force in the event of
the other insured's death.
4.2 What are the rider death proceeds?
The rider death proceeds will be the sum of the following amounts:
a.) the rider specified amount on the date of death; plus
b.) the rider cost paid beyond the month death occurs; minus
c.) any rider cost due.
If the death of any other insured occurs during a grace period, the insurance
charges for the policy will be deducted from the rider death proceeds.
4.3 How will the rider death proceeds be paid?
The rider death proceeds will be payable to the beneficiary, as stated in the
application for this rider, when we receive proof satisfactory to us that the
other insured died while this rider was in force. Rider death proceeds will be
paid according to the provisions of the policy.
RIDER SECTION 5. CONVERSION PRIVILEGE
5.1 Can the insurance coverage provided by this rider be converted to a new
policy?
The insurance coverage provided by this rider on an other insured may be
converted to a new policy while it is in force provided:
a.) your written request is made:
1.) prior to the other insured's age 75; or
2.) within 60 days following the termination of this rider due to the
death of the person named as insured under the policy;
b.) all cost due for this rider has been paid; and
c.) the new policy is a permanent life insurance policy
we are then issuing.
The suicide and incontestability provisions of the new policy will be measured
from the issue date of this rider.
If the other insured dies during the 60-day conversion period, we will pay the
insurance amount for that other insured, less any rider cost for that other
insured, to the beneficiary.
5.2 What is the amount of insurance for the new policy?
The amount of insurance for the new policy may not be:
a.) greater than the specified amount of this rider on
the date of conversion; or
b.) less than the minimum amount necessary to issue the
new plan of insurance.
5.3 What is the effective date of the new policy?
The effective date of the new policy will be the monthly processing day on or
following receipt of your written request in our home office.
5.3 What basis will be used to determine the premium for the new policy?
The premium for the new policy will be based on the age, gender, and rating
class of the other insured as of the date of conversion. However, if there has
been an increase in rider specified amount prior to conversion, the new policy
will be based on the rating class of the other insured at the time of the
increase.
5.5 Will evidence of insurability be required?
Evidence of insurability will not be required to convert existing coverage.
However, if any riders are requested with the new policy, we will require
evidence of insurability satisfactory to us for the additional coverage.
RIDER SECTION 6. DIVIDENDS
6.1 Will this rider receive dividends?
While this rider is in force, it will share in our divisible surplus. We will
determine once a year if any dividends are payable on this rider. Any dividends
will be combined with and applied using the same method selected for the policy.
We do not anticipate any dividends to be paid on this rider.
CUNA Mutual Life Insurance Company
A Mutual Insurance Company
/s/ Michael B. Kitchen
President
- -----------------------------------------------------------
OTHER INSURED RIDER DATA PAGE
- -----------------------------------------------------------
TERM INSURANCE RIDER FOR OTHER INSURED
OTHER INSURED: Jane Doe RIDER SPECIFIED AMOUNT: $50,000
ISSUE DATE: January 15, 2000 RATING: Standard Tobacco
EXPIRATION DATE: January 15, 2060 ISSUE AGE: 35
ANNUAL RIDER FEE: $20.00 GENDER: Female
INITIAL ANNUAL COST OF INSURANCE*: [$120.50] COST OF INSURANCE RATES: Female
* See guaranteed maximum other insured annual cost of insurance rate table for
schedule of maximum guaranteed rates.
- -----------------------------------------------------------
GUARANTEED MAXIMUM OTHER INSURED
- -----------------------------------------------------------
ANNUAL COST OF INSURANCE RATE TABLE
TERM INSURANCE RIDER FOR OTHER INSURED
OTHER INSURED: Jane Doe RIDER SPECIFIED AMOUNT: $50,000
ISSUE DATE: January 15, 2000 RATING: Standard Tobacco
EXPIRATION DATE: January 15, 2060 ISSUE AGE: 35
ANNUAL RIDER FEE: $20.00 GENDER: Female
INITIAL ANNUAL COST OF INSURANCE: [$120.50] COST OF INSURANCE RATES: Female
The rates shown are annual rates in dollars per $1,000. The annual cost of
insurance rate we charge will never be more than the guaranteed maximum annual
rates shown below. Monthly cost of insurance calculations will use one-twelfth
of the annual rate.
Age Rate Age Rate
35 2.01 68 25.10
36 2.18 69 26.97
37 2.38 70 29.18
38 2.61 71 31.98
39 2.86 72 35.41
40 3.16 73 39.49
41 3.48 74 44.14
42 3.80 75 49.22
43 4.12 76 54.62
44 4.44 77 60.26
45 4.78 78 66.22
46 5.13 79 72.71
47 5.49 80 79.98
48 5.88 81 88.23
49 6.31 82 97.61
50 6.77 83 108.44
51 7.26 84 120.18
52 7.82 85 132.65
53 8.44 86 145.75
54 9.07 87 159.35
55 9.72 88 173.52
56 10.36 89 188.25
57 10.96 90 204.58
58 11.55 91 222.16
59 12.18 92 241.66
60 12.93 93 264.56
61 13.87 94 295.23
62 15.08
63 16.55
64 18.19
65 19.92
66 21.68
67 23.38
EXHIBIT 5a(vii)
99-WVR-RV1
WAIVER OF PREMIUM DISABILITY RIDER
RIDER SECTION 1. GENERAL INFORMATION
1.1 What is our agreement with you?
Our agreement with you includes this rider and its application, as a part of the
policy to which it is attached. The provisions of the policy apply to this rider
unless they conflict with the rider. If there is a conflict, the rider provision
will apply. The issue date for this rider is shown on the waiver of premium
factor table.
1.2 What is the benefit provided by this rider?
We will provide a waiver benefit as described in this rider if:
a.) the policy and this rider are in force;
b.) the person named as insured under the policy becomes
totally disabled while the policy and this rider are
in force; and
c.) all the terms and conditions of this rider are met.
While the insured is totally disabled, as defined in Section 4, we will waive
premium equal to the greater of:
a.) the monthly basic guarantee premium; or
b.) the deduction for insurance charges.
If the monthly basic guarantee premium is greater than the insurance charges, we
will contribute the difference to your policy.
1.3 Can this rider be contested?
We relied on statements made in the application when we issued this rider. In
the absence of fraud, we will accept the statements made in the application or
reinstatement application to be representations and not warranties. Statements
made in the application or reinstatement application will not be used to contest
this rider or challenge a claim under this rider unless that statement is
material.
A statement is material if, based on correct and complete information, we would
have:
a.) denied coverage;
b.) issued the rider at a higher cost of insurance rate; or
c.) issued the rider on some other basis than applied for.
If this rider is void as a result of a contest, the cost you paid for this rider
will be refunded to you.
1.4 When does this rider become incontestable?
This rider is incontestable after it has been in force during the insured's
lifetime for two years from its issue date. If this rider is reinstated, it is
incontestable after it has been in force during the insured's lifetime for two
years from the date of its reinstatement. If reinstatement occurs, it may be
contested on the basis of statements made in the reinstatement application. Any
period of time that the insured is disabled will be excluded in the calculation
of the contestable period.
1.5 When will this rider terminate?
This rider will terminate on the earliest of:
a.) the death of the insured;
b.) the lapse or termination of the policy;
c.) the policy anniversary at the insured's age 65; or
d.) the date you choose to end this rider. You may end
it by written request.
RIDER SECTION 2. RIDER INSURANCE CHARGES
2.1 What is the cost of this rider?
The cost of this rider is paid as part of the insurance
charges for the policy to which it is attached. The cost
is calculated on each monthly processing day and is the
greater of a.) or b.) multiplied by the waiver of premium
factor where:
a.) is the monthly basic guarantee premium for the
policy; and
b.) is the insurance charges as described in the policy,
excluding the cost of this rider.
The waiver of premium factors for the insured's attained age are shown on the
waiver of premium factor table.
2.2 What happens if disability begins during a grace period?
Any premium due must be paid before we will waive premiums under the provisions
of this rider.
RIDER SECTION 3. RIDER BENEFIT PROCEEDS
3.1 When are rider benefit proceeds payable?
Rider benefit proceeds are payable while this rider is in force in the event of
the insured's total disability.
3.2 How should you notify us of a claim?
You must notify us of a claim by written request. It must be received in our
home office:
a.) while the insured is living;
b.) while total disability continues; and
c.) within one year after this rider ends.
We will not reduce or deny your claim on the basis of these notice requirements
if notice is given as soon as reasonably possible.
3.3 When will we start waiving the premiums?
Upon receiving satisfactory proof of the insured's total disability, we will
waive premiums from the latest of:
a.) the date the disability began;
b.) the date one year before we received notice of claim
in the home office; or
c.) the date one year before we received proof of
disability, if proof is received more than six months
after notice of claim.
3.4 How long will the premiums be waived?
The premiums will be waived until the earliest of:
a.) the date the insured's total disability ends;
b.) the date the insured fails to give the required proof
that total disability continues;
c.) the date the insured fails to be examined medically
when required; or
d.) the policy anniversary at the insured's age 65, if
the insured has not been continuously disabled for
the previous five years.
RIDER SECTION 4. TOTAL DISABILITY
4.1 What is total disability?
Total disability is:
a.) a disability which:
1.) is due to sickness or injury;
2.) has existed continuously for at least six months;
3.) prevents the insured from engaging in an occupation.
During the first 24 months of disability, the insured must be unable to
perform any of the material duties of his or her regular occupation.
After 24 months, the insured is totally disabled only if s/he is unable
to engage in any occupation for which s/he is reasonably suited by
education, training, or experience.
If the insured is primarily a student, total disability means the
inability to attend school outside the home. If the insured is a
full-time homemaker, total disability means the inability to perform any
material household duties.
b.) the total loss, which cannot be recovered or
corrected, of any of the following while this rider
is in force:
1.) sight of both eyes;
2.) use of both hands;
3.) use of both feet; or
4.) use of one hand and one foot.
Such total loss will be considered total disability even if the insured is
able to engage in an occupation.
4.2 What proof of total disability will be required?
We will require the following proof of disability:
a.) Initial Proof. We must receive written proof of
total disability at our home office. Proof must be
given within six months after written notice of a
claim is given. We will not reduce or deny your
claim on the basis of this requirement if proof is
given as soon as reasonably possible.
b.) Proof of Continuing Total Disability. We may require
proof that the total disability continues. This
proof may be required at any time during the first
two years. After two years, proof may be required
no more than once a year.
c.) Examination by a Physician. As part of proof under
a.) and b.), we may require an additional medical
examination of the insured at our expense by a
physician we select.
RIDER SECTION 5. LIMITATIONS
5.1 When will the premiums not be waived for total disability?
No premiums will be waived if:
a.) the insured dies before we receive proof of total
disability;
b.) the total disability is the result of an
intentionally self-inflicted injury; or
c.) the total disability is the result of an act of
declared or undeclared war, if the act occurs:
1.) within five years of this rider's issue date;
2.) while the insured is outside the United States, the District of
Columbia, or the Dominion of Canada.
CUNA Mutual Life Insurance Company
A Mutual Insurance Company
/s/ Michael B. Kitchen
President
- -----------------------------------------------------------
WAIVER OF PREMIUM FACTOR TABLE
- -----------------------------------------------------------
WAIVER OF PREMIUM FACTORS
INSURED: John Doe RATING: Standard Tobacco
ISSUE DATE: January 15, 2000 ISSUE AGE: 35
EXPIRATION DATE: January 15, 2030 GENDER: Male
These factors are used to calculate the monthly cost of this rider, as described
in Section 2.
Age Factor Age Factor
0 .0600 33 .0600
1 .0600 34 .0600
2 .0600 35 .0600
3 .0600 36 .0600
4 .0600 37 .0600
5 .0600 38 .0600
6 .0600 39 .0600
7 .0600 40 .0600
8 .0600 41 .0600
9 .0600 42 .0600
10 .0600 43 .0600
11 .0600 44 .0600
12 .0600 45 .0600
13 .0600 46 .0600
14 .0600 47 .0600
15 .0600 48 .0600
16 .0600 49 .0630
17 .0600 50 .0710
18 .0600 51 .0810
19 .0600 52 .0940
20 .0600 53 .1100
21 .0600 54 .1320
22 .0600 55 .1540
23 .0600 56 .1760
24 .0600 57 .1980
25 .0600 58 .2200
26 .0600 59 .2420
27 .0600 60 .0750
28 .0600 61 .0690
29 .0600 62 .0600
30 .0600 63 .0450
31 .0600 64 .0220
32 .0600
EXHIBIT 6(a)
April 2, 1992
Corp. No.: 000069607 IOWA
Ref. No.: 55170
SECRETARY OF STATE
CENTURY LIFE OF AMERICA
ATTN; SHERRY BUTTJER
CENTURY LIVE OF AMERICA
2000 HERITAGE WAY
WAVERLY IOWA 50677
CERTIFICATE OF EXISTENCE
Name CENTURY LIFE OF AMERICA
Date 03/03/1896
I, ELAINE BAXTER, secretary of state of the state of IOWA, custodian of the
records of incorporations, certify that the corporation named on this
certificate is in existence and was duly incorporated under the laws of Iowa on
the date printed above, with perpetual duration, and that articles of
dissolution have not been filed.
ELAINE BAXTER
ELAINE BAXTER
<PAGE>
CUNA Mutual Life Insurance Company
Waverly, Iowa
ARTICLES OF INCORPORATION
ARTICLE I
Name and Principal Office
Section 1. The name of this Corporation is CUNA Mutual Life Insurance Company
(hereinafter sometimes called the Company).
Section 2. The home office and principal place of business of the Company shall
be located in Bremer County, Iowa.
ARTICLE II
Nature of Business, Objects and Powers
Section 1. The general nature and purpose of the business of this Corporation
shall be that of engaging in, pursuing, maintaining and transacting on the
mutual plan as a legal reserve or level premium company,
(a) a general life and health and accident insurance business and
an annuity business, including all forms of life insurance,
endowments, annuities, accident insurance, disability and
health insurance, all relating to the life and health of
persons, and,
(b) any other type of insurance business which the Company may be
authorized and duly qualified to underwrite and transact under
and by virtue of Iowa Insurance Laws,
and in addition, engaging in, pursuing, maintaining and transacting any other
related or unrelated business which any corporation now or hereafter authorized
and empowered to do an insurance business in this State may now or hereafter
lawfully do, whether or not it be complementary, necessary, or incidental to the
business of writing insurance and otherwise transacting the business of an
insurer.
Section 2. More specifically, and without limitation as to any other right,
power, privilege, franchise, or authority which the corporation may be permitted
under the law of the state of Iowa, and in pursuance of the aforesaid corporate
purposes, the Company in its corporate or assumed name is empowered:
to sue, complain and defend; to have a corporate seal which may be
altered at pleasure, and to use the same by causing it, or a facsimile
thereof to be impressed or affixed or in any other manner reproduced;
to design, create, develop, offer, solicit, sell, write, underwrite,
insure, coinsure, reinsure, administer, settle and otherwise deal in
and with insurance policies and annuity contracts of all types whether
on a participating or nonparticipating basis, and on an individual or
group or blanket basis, providing for benefits on either a fixed or
variable basis; to enter into any lawful contract for the purpose of
ceding or accepting insurance risks, directly or indirectly, either
entirely in its own right or in a shared or multiple capacity with
other insurers; to enter into collateral or supplementary contracts and
otherwise deal contractually with respect to insurance policies or
annuity contracts or the proceeds of same; to act as trustee or advisor
in any capacity, and to offer all services, including those of a
financial, accounting, or data processing nature, directly or
indirectly, incidental to its business, and to form or otherwise
acquire other insurance or business corporations as subsidiaries, and
to invest in, and to establish or manage, one or more investment
companies; to purchase, take, receive, lease, or otherwise acquire,
own, hold, improve, use, or otherwise deal in and with real or personal
property of any kind and description, or any interest therein, wherever
situated; to sell, convey, mortgage, pledge, lease, exchange, transfer
and otherwise dispose of all or any part of its property and assets; to
compensate, or lend money to and otherwise to assist its employees,
agents, officers, and Directors; to purchase, take, receive, subscribe
for, or otherwise acquire, hold, vote, use, employ, sell, mortgage,
lend, pledge, or otherwise dispose of and otherwise use and deal in and
with, shares or other interests in, or obligations of, other domestic
or foreign corporations, associations, partnerships, joint ventures or
individuals, or direct or indirect obligations of the United States or
of any other government, state, territory, governmental district or
municipality, public or quasi-public corporation, or of any
instrumentality thereof; to make contracts and guarantees and incur
liabilities; to lend and borrow money and incur debts for its corporate
purposes; to invest and reinvest its funds, and take and hold real and
personal property as security for the payment of funds so loaned or
invested; to acquire or organize subsidiaries; to conduct its business,
carry on its operations, and have offices and exercise its powers under
authority granted in any state, territory, district, or possession of
the United States or in any foreign country; to make donations for
religious, charitable, scientific or educational purposes; to pay
pensions and establish pension plans, pension trusts, profit-sharing
plans and other incentive, insurance and welfare plans for any or all
of its Directors, officers, agents and employees, policyowners,
insurance policy or contract beneficiaries, or clients; to enter into
general partnerships, limited partnerships, whether the company be a
limited or general partner, joint ventures, syndicates, pools,
associations and other arrangements in pursuance of any or all of the
purposes for which the Company is organized; to indemnify officers,
Directors, employees and agents, possessing all the rights and powers
with respect thereto permitted to Iowa business corporations as
specified in Subsection 19 of Section 496A.4 of the Iowa Business
Corporation Act and all acts amendatory thereof or additional thereto;
and to engage in and carry on any other type of business which any
corporation now or hereafter authorized and empowered to do an
insurance business in the state of Iowa may now or hereafter lawfully
do,
and it shall have and exercise all powers, rights and privileges necessary or
convenient to effect any or all of the purposes for which the Company is
organized, and generally such additional powers not herein specified as are now
or may hereafter be conferred upon corporations similar to this Company by the
laws of the state of Iowa.
ARTICLE III
Continuation of Corporate Entity
This Corporation shall have no capital stock and is a continuation of the
original corporation doing business on the mutual plan, retaining all of its
original rights, powers, privileges, immunities, and franchises. All of the
contract rights of policyowners of the Company now holding contracts of
insurance or of annuity issued or assumed by the Company are and shall be
retained. Subject to the foregoing, these Articles shall be construed as a
substitute for all prior articles and amendments thereto.
ARTICLE IV
Period of Existence
This Corporation, as renewed, shall have perpetual existence.
ARTICLE V
Exemption from Corporate Debts
The private property of the Members of the Company shall in no case be liable
for corporate debts, but shall be exempt therefrom.
ARTICLE VI
Members
Section 1. Each person who owns one or more life insurance policies, health and
accident insurance policies, or annuity contracts issued by the Company shall be
a Member of the Company, but only so long as at least one of said policies or
contracts remains in full force and effect and has not been surrendered or has
not expired or has not matured by death of the insured or annuitant, or
attainment of maturity date. In the case of multiple ownership of any insurance
policy or annuity contract, the persons owning such policy or contract shall be
deemed collectively to be the Member and the Bylaws may establish procedures for
the exercise of the voting right of such Member.
Section 2. Only those Members who meet such eligibility requirements, as may be
established by law, by these Articles, and the Bylaws as may be amended from
time to time, shall be Voting Members, provided however, that nothing herein
contained, and no Bylaws establishing additional eligibility requirements for
Voting Members shall have the effect of terminating a person's then existing
membership or voting right.
ARTICLE VII
Members Meetings
Section 1. Voting Members shall be entitled to vote in person or by proxy at any
meeting of the Members in accordance with procedures prescribed in the Bylaws.
Section 2. Unless the Board directs otherwise, the annual meeting of the Company
shall be held at the Company's home office and principal place of business on
the second Wednesday of May of each year for the election of Directors, and for
the transaction of any other business properly coming before such annual
meeting.
Section 3. Annual and all special meetings of the Members shall be called or
held as provided in the Bylaws. The Company may make reasonable expenditures in
support of a position or issue at any meeting, or in support of any or all
candidates to be nominated for election to the Board.
ARTICLE VIII
Board of Directors and Officers
Section 1. The corporate powers and business of the Company shall be directed
and controlled by a Board of Directors and by such officers and agents as the
Board of Directors may authorize, elect or appoint.
Section 2. The Board of Directors shall consist of not less than nine (9) nor
more than twenty (20) Members as prescribed from time to time in the Bylaws, and
shall be divided into classes, as nearly equal numerically as possible, so that
the terms of one class expire each year. Each Director shall serve a term of
approximately three (3) years except as otherwise provided in the Bylaws, or
except where it is necessary to fix a shorter term in order to preserve
classification. The Board of Directors shall have the power to fill any vacancy
in its number occurring for any reason at any time except where such vacancy
occurs due to the expiration of a Director's term of office as provided herein
or in the Bylaws.
Section 3. The Board of Directors shall have the power to adopt such bylaws,
rules and regulations for the transaction of business of the Company as are not
inconsistent with these Articles, or the laws of the state of Iowa, and to amend
or repeal such bylaws, rules and regulations. The Bylaws shall provide for the
election of Directors and establish procedures to accomplish the same.
Section 4. A Director of this Company shall not be personally liable to the
Company or its Members for monetary damages for breach of fiduciary duty as a
Director, except for liability (i) for any breach of the Director's duty of
loyalty to the Company or its Members, (ii) for acts or omissions not in good
faith or which involve intentional misconduct or a knowing violation of law, or
(iii) for any transaction from which the Director derived an improper personal
benefit.
ARTICLE IX
Change of Articles
These Articles of Incorporation may be amended, substituted or changed at any
annual meeting of the Members, or at any special meeting called for that purpose
as hereinafter provided. The proposed substitution or amendment must be offered
in writing, and either signed by not less than one (1) percent of the Voting
Members, or offered by the Board of Directors.
Such proposed substitution or amendment when offered by a Member
(a) must contain the actual signatures as well as the printed
names and addresses of those Members subscribing to the
proposal,
(b) must have the notarized certification of the offering Member
authenticating the signatures of the other subscribing
Members, and
(c) must be filed with the Secretary of the Company at least
ninety (90) days prior to said annual or special meeting.
Such proposed substitution or amendment when offered by the Board of Directors
must be first adopted by two-thirds (2/3) of the total Board membership at a
regular meeting or at a special meeting called for such purpose, or it must be
approved by the unanimous written consent of all of the Directors, certified by
the Secretary, and filed at least thirty (30) days prior to said annual or
special meeting of the Members.
The Secretary shall furnish to each Voting Member a copy of such substitution or
amendment whether proposed by the Board or by Members together with a ballot
containing a suitable space wherein a Voting Member may vote for or against the
same, and a space for the Voting Member's signature and the date of the meeting.
Such material shall be mailed in the United States mail, addressed to the Voting
Members of the Company, or substantially all of them, at their last known post
office addresses, as the same then appear on the records of the Company, not
less than twenty (20) nor more than ninety (90) days prior to the date of the
meeting. The Board of Directors or persons designated by it may make such
statements or recommendations as it sees fit on all matters to be presented to
the Members. All substitutions or amendments when adopted by a majority of
Members voting thereon in person or by duly signed ballot shall be binding upon
all Members and they shall be governed thereby.
<PAGE>
EXHIBIT 6(b)
CUNA Mutual Life Insurance Company
Waverly, Iowa
Restated
BYLAWS
ARTICLE I
Definitions
Section 1.1. Terms. When used in these Bylaws, the terms hereinafter provided
shall have the meanings assigned to them unless another meaning is explicitly
indicated:
(a) Member: shall mean a Member of this Company as defined and described in
the Company's Articles.
(b) Policy: shall mean a life insurance policy, accident and health policy,
or annuity contract on an individual or group basis and shall not
include group insurance certificates, settlement contracts, depository
contracts, or certificates of any kind issued for the purpose of
managing or holding insurance or annuity contract proceeds when a life
policy, accident and health policy, or annuity contract terminates,
expires or otherwise matures by reason of death, surrender or maturity
in its ordinary course, or otherwise.
(c) Record Date: shall mean the last business day of any month immediately
preceding the date of any event or transaction for which it may be
useful or relevant to establish the identity of persons who are Members
or Voting Members, from data contained in the Company's records.
(d) Voting Member: shall mean a Member who meets all of the eligibility
requirements for voting as provided in Section 2.1.
ARTICLE II
Voting Rights of Members
Section 2.1. Eligibility to Vote. Only those Members who have attained age
sixteen (16) on or prior to the Record Date for any meeting shall be eligible to
vote at Members' Meetings. In the case of multiple ownership of any Policy, the
persons designated owners or co-owners on the Company's records as of such
Record Date shall be deemed collectively to be the Voting Member and shall
designate one of their number to cast their vote. In the case where ownership is
claimed by right of assignment, the assignee, if shown on the Company's records
to be the owner as of such Record Date, shall be deemed the Voting Member. In
the case of group policies, the holder of the master policy, and not those
persons holding certificates under the master policy, shall be deemed the Voting
Member.
Section 2.2. Exercise of Voting Rights. Each Voting Member shall be entitled to
cast one (1) vote on each matter to come before a meeting of the Members, either
in person or through an attorney-in-fact designated in a written proxy which
meets the requirements of Section 2.4, regardless of the number of policies or
the amount of insurance or the number of lives insured under any Policy or
Policies owned or controlled by the Voting Member. Except when electing
Directors, voting by Members at any regular or special meeting of the Members
may be by voice vote unless the vote is not all "yea" or "nay" in which case the
vote shall be by written ballot. Each ballot may contain more than one question
or proposition. Any attorney-in-fact holding the voting power of more than one
Member may cast all such votes on one ballot, provided that the ballot shows on
its face the number of votes being cast, and provided it is verified by the
Voting Inspectors as having been cast in accordance with the voting rights
acquired by proxy from the persons whose votes are being cast by proxy.
Section 2.3. Electing Directors. The vote for a Director or Directors at a
meeting of Members shall be by written ballot. Each Voting Member shall be
entitled to cast one (1) vote for each Director's office to be filled. Those
eligible Candidates receiving the highest number of votes cast at such meeting
shall be declared elected.
Section 2.4. Proxy Requirements. No proxy shall be valid unless it is evidenced
by a written form executed by a Voting Member or his or her legal representative
within two (2) months prior to the meeting for which such proxy was given.
Whether or not the duration of such proxy is specified on the proxy form, all
such proxy authority shall be limited to thirty (30) days subsequent to the date
of such meeting or any adjournment thereof, and no proxy shall be valid beyond
the date of such limitation. Unless a Voting Member's proxy shall be received by
the Secretary at least one (1) day prior to the meeting or election at which it
is to be used, it shall not qualify to be voted on behalf of the Voting Member.
Any proxy may, by its terms, be limited as to its use, purpose, or manner in
which it is to be used at the meeting or election for which it is given. Any
such proxy authority shall be revocable by the Voting Member or his or her legal
representative at any time prior to such meeting and shall be deemed to have
been revoked when the person executing the proxy is present at the meeting and
elects to vote in person.
Section 2.5. Proxy Solicitation by this Company. This Company may solicit
proxies from Voting Members and provide such information as this Company deems
pertinent with respect to the Candidates for election as Directors of this
Company or matters being voted upon at the meeting. The fact that this Company,
by mail or otherwise, solicits a proxy from any person shall not constitute nor
be construed as an admission of the validity of any Policy or that such person
is a Member entitled to vote at the meeting; and such fact shall not be
competent evidence in any action or proceeding in which the validity of any
Policy or any claim under it is at issue.
ARTICLE III
Members' Meetings
Section 3.1. Annual Meeting. There shall be an annual meeting of Members for the
purpose of electing Directors and conducting such business as may properly come
before the meeting. Such annual meeting of Members shall be held on the second
Friday in May in the Principal Office of this Company on Heritage Way, Waverly,
Iowa, at the hour of 9:00 a.m. unless the Board otherwise directs. No notice of
such annual meeting need be given except as required by law, unless the Board
designates another date or time or place for the meeting.
Section 3.2. Special Voting and Special Meetings. A special voting of Members or
special meetings of Members may be called at any time pursuant to a duly adopted
Board resolution or upon a petition filed with the Secretary containing a
complete description of the proposition or propositions to be voted on, the
signatures, the printed names and addresses and the policy numbers of at least
one percent (1%) of the Voting Members. A written notice summarizing the purpose
shall be given.
Section 3.3. Presiding Officer. The Chairman of the Board, or in the absence of
the Chairman, the Vice Chairman, or in the absence of both, the President, or in
the absence of all three, the Chief Operating Officer shall preside over
meetings of the Members. The Secretary or any Assistant Secretary of this
Company shall act as secretary for the meetings.
Section 3.4. Place of Meetings. The place of all meetings of Members shall be
the Principal Office of this Company in Waverly, Iowa, unless another place is
designated by the Board, either within or without the state of Iowa, and is
specified in the notice of the meeting.
Section 3.5. Manner of Giving Notice. Whenever written notice is required, it
shall state the time, date and place of the meeting, and if for a special vote
or a special meeting, a summary of the purpose. Notice shall be given by mailing
a copy of the notice to Voting Members not more than ninety (90) nor less than
thirty (30) days prior to the day of the meeting. Notice shall be deemed to have
been given to a Voting Member when a copy of such notice has been deposited in
the United States mail, addressed to the owner or the legal representative of
the owner of any policy used to identify a Member as a Voting Member, at his or
her post office address as the same appears on this Company's records as of the
Record Date for the notice, with postage prepaid. Failure to provide notice to
all Voting Members when notice is required shall not invalidate a meeting unless
such failure was intended and such intentional failure can be shown to have been
caused by a willful or deliberate act. If the date or place of an annual meeting
of Members is changed by the Board after this Company has sent or commenced to
send notices, or if prior to the date of any meeting of Members or any
adjournment thereof the notice of such meeting shall be deficient, the Board may
order a notice by publication in at least two (2) newspapers of general
circulation, one of which shall be located in Des Moines, Iowa, and one in
Waterloo, Iowa, at least ten (10) days prior to the meeting, and no other notice
shall be required. Such other notice shall be given as may be required by the
laws of Iowa pertaining to notice of meetings.
Section 3.6. Quorum. Either twenty-five (25) Voting Members present in person or
one thousand (1000) Voting Members present by proxy shall constitute a quorum at
any meeting of Members. If a quorum is not present, a majority of the Voting
Members present in person or by proxy may only adjourn the meeting from time to
time without further notice.
Section 3.7. Required Majority. Except as otherwise expressly provided in the
Articles or Bylaws, or by law, a majority of the votes cast by Voting Members
present in person and by proxy at any meeting of the Members with a quorum
present shall be sufficient for the adoption of any matter to properly come
before the meeting.
Section 3.8. Appointment of Voting Inspectors. Prior to each meeting of Members,
the Board or its Executive Committee, if any, shall appoint, from among Members
who are not Directors, Candidates for the office of Director or Officers of this
Company, three (3) or more voting inspectors and one (1) or more alternate
inspectors, and shall fix their fees, if any. If an inspector so appointed is
unable or unwilling to act and no alternate is able or willing, or if the Board
or Executive Committee has failed to appoint voting inspectors prior to the
meeting, the President may appoint voting inspectors or alternates as required
from among Members eligible as aforesaid.
Section 3.9. Administration of Proxies and Ballots. All unexpired proxies
intended for use at a meeting of Members shall be delivered to the voting
inspectors prior to the meeting. The voting inspectors shall verify their
validity and tabulate them, certifying their findings and tabulation to the
Secretary. At all meetings of the Members, the voting inspectors shall
distribute, collect, and tabulate ballots and certify under oath the results of
any ballot vote cast by Members. All questions concerning the eligibility of
Members to vote and the validity of the vote cast shall be resolved by voting
inspectors on the basis of this Company's records. In the absence of challenge
before the tabulation of a ballot vote is completed, the inspectors may assume
that the signature appearing on a proxy or a ballot is the valid signature of a
person entitled to vote, that any person signing in a representative capacity is
duly authorized to do so, and that a proxy, if it meets the requirements of
Section 2.4, and otherwise appears to be regular on its face, is valid.
ARTICLE IV
Communications Between Members
Section 4.1. Procedure for Facilitating Communication. No Member who is not an
officer, Director, or employee of this Company acting in the ordinary course of
business shall have access to any of this Company's policyholder records, except
such information pertaining to his or her own Policy or Policies as this Company
may be reasonably required by law to provide. However, any Member desiring to
communicate with other Members in connection with a Members meeting shall no
less than sixty (60) days prior to the date of such meeting furnish a written
request addressed to the Secretary containing the following information:
(a) such Member's full name and address and the policy number of any policy
owned by the Member;
(b) such Member's reasons for desiring to communicate with other Members;
(c) a copy of the proposed communication;
(d) the date of the meeting at which such Member desires to present the
matter for consideration.
Within fifteen (15) days of receipt of such request, this Company shall furnish
the requesting Member with information indicating the number of Voting Members
this Company has as of the last day of the month immediately preceding and
provide an estimate of all costs and expenses for processing and mailing the
proposed communication to the membership; or this Company shall advise the
Member that this Company refuses to mail the proposed communication. This
Company shall not refuse to mail the proposed communication unless it has first
made a determination that the communication is "improper" in accordance with
standards provided in Section 4.3 and has followed the procedures provided in
Section 4.2. Within thirty (30) days (or upon a later date if specified by the
requesting Member) of receiving an amount equal to all of this Company's
estimated costs and expenses and a sufficient number of copies of the proposed
communication, this Company shall process and mail the communication to all of
the Voting Members by a class of mail specified by the requesting Member, unless
the communication has been determined to be improper.
Section 4.2. Determining Whether Communications are Proper. Each request to
communicate with other Members shall be reviewed by the Board. If the Board
determines that the communication is a proper one, it shall be processed as
provided in Section 4.1. If the Board determines the communication to be
improper, it shall instruct an appropriate officer to communicate a written
refusal specifying the reasons for the refusal.
Section 4.3. Improper Communication Defined. As used in this section, an
"improper communication" is one which contains material which:
(a) at the time and in the light of the circumstances under which it is
made
(1) is false or misleading with respect to any material fact, or
(2) omits any material fact necessary to make the statements
therein not false or misleading or necessary to correct any
statement in an earlier communication on the same subject
matter which has become false or misleading; or
(b) relates to a personal claim or a personal grievance against this
Company, its management or any other party, or apparently seeks
personal gain or business advantage by or on behalf of any party; or
(c) relates to any matter of a general, economic, political, racial,
religious, social or other nature that is not significantly related to
the business of this Company or is not within the control of this
Company, in that it is not within the power of this Company to deal
with, alter or effectuate; or
(d) directly or indirectly, and without express factual foundation,
(1) impugns character, integrity or personal reputation, or
(2) makes charges concerning improper, illegal or immoral conduct.
ARTICLE V
Board of Directors
Section 5.1. General Powers. The business and affairs of this Company shall be
directed by the Board which from time to time shall delegate authority and
establish guidelines as it deems necessary or appropriate for the exercise of
corporate powers by officers and employees in the course of business.
Section 5.2. Number, Eligibility, and Tenure. The Board shall consist of at
least nine (9) and not more than twenty (20) persons as set by the Board from
time to time. Directors must be policyholders of this Company. The regular term
of office for a Director shall commence when a Director is elected by Members
and end at the third (3rd) succeeding annual meeting of the Members, except
where a shorter term is provided in order to preserve the Class of Directors.
The vacancies on the Board to be filled at each annual meeting of Members shall
be the offices of those Directors whose regular terms are scheduled to expire.
Directors shall be eligible for reelection. Unless a Director's regular term of
office is sooner terminated by resignation, retirement, legal incapacity or
death, each Director elected at an annual meeting of Members shall hold office
for the term for which elected and until a successor has been elected or
appointed and qualified.
Section 5.3. Classification. Directors shall be divided into three (3) Classes,
which shall be as nearly equal as possible, according to the expiration date of
the regular terms of office. The regular term of office of one of the Classes of
Directors shall expire at each annual meeting of Members.
Section 5.4. Nomination by Members. Any Member may nominate one or more
Candidates for the Directors' offices to be filled by election at any annual
meeting of Members by filing with the Secretary on behalf of each such
Candidate, on or before January 31 preceding such annual meeting, a Certificate
of Nomination which has been signed by at least one percent (1%) of the Voting
Members and which gives the names, occupations and addresses of their Candidate
or Candidates together with a statement signed by said Candidates that they will
accept office if elected. No signature on any such Certificate shall be counted
unless it is also accompanied by the printed name and address and the policy
number of a Policy owned by the signator.
Section 5.5. Board Sponsored Nominations. The Board may nominate one or more
Candidates for the Directors' offices to be filled by election at any annual
meeting of Members by nominating a Candidate or a slate of Candidates in a
resolution duly adopted at a regular or special meeting of the Board and causing
a Certificate of Nomination to be filed with the Secretary on behalf of each
such Candidate at least thirty (30) days prior to the date of the annual meeting
of Members. Such Certificate of Nomination shall give the names, occupations,
and addresses of their Candidate or Candidates together with a statement signed
by said Candidates that they will accept office if elected.
Section 5.6. Removal. A Director may be removed from office for cause by an
affirmative vote of three-fourths (3/4) of the full Board of Directors at a
meeting of the Board.
Section 5.7. Vacancies. Vacancies in the Board which occur prior to the
expiration of a Director's regular term of office by reason of resignation,
retirement, legal incapacity, or death, or other vacancies which may occur by a
reason of an increase in the number of Directors in between annual meetings of
Members, or vacancies which may occur by reason of any failure on the part of
the Voting Members to elect a sufficient number of Directors at an annual
meeting of Members, may be filled by appointment made in a duly adopted
resolution concurred in by a majority of the Board membership when voting at any
meeting of the Board, or by appointment made in a unanimous consent action taken
in lieu of meeting. A Director appointed to fill a vacancy shall hold office for
the unexpired portion of the term to which appointed. Unless a Director's
service is otherwise terminated by resignation, retirement, removal, legal
incapacity, or death, a Director, whether appointed or elected, shall serve
until a successor is elected or appointed and qualified.
Section 5.8. Nonattendance. Any Director absent from three consecutive regular
meetings shall forfeit his office and shall be ineligible for office for six
months.
Section 5.9. Compensation. Directors shall be compensated as established by the
Board and shall be reimbursed for reasonable expenses incurred in connection
with the discharge of their duties and responsibilities.
ARTICLE VI
Board Meetings
Section 6.1. Regular Meetings. A regular annual meeting of the Board of
Directors shall be held without other notice than this Bylaw on such date in the
months of April, May or June as the Board of Directors shall determine. At such
meetings, the Directors shall elect such officers of this Company as required or
permitted by these bylaws and transact such business as pertains to the annual
meetings of the Board. The Board of Directors may provide by resolution, or the
Chairman of the Board, Vice Chairman or President may designate, the time, date
and place, either within or without the state of Iowa, for the holding of
additional regular meetings by giving notice at a regular or special meeting of
Directors or by written notice as provided in this Article for special meetings.
Section 6.2. Special Meetings. Special meetings of the Board of Directors may be
called by the Chairman of the Board, Vice Chairman, President or Secretary, and
shall be called by the President upon written request of any three (3)
Directors. The person or persons authorized to call special meetings of the
Board of Directors may fix any place, either within or without the state of
Iowa, as the place for holding any such special meeting of the Board of
Directors.
Section 6.3. Notice. Notice of any special meeting shall be given at least
ninety-six (96) hours previously thereto by written notice delivered personally
or by U.S. mail, telegram or electronic mail transmission to each Director at
his or her home or business address. If mailed, such notice shall be deemed to
be delivered when deposited in the United States mail so addressed, with postage
thereon prepaid. If notice be given by telegram, such notice shall be deemed to
be delivered when the telegram is delivered to the telegraph company. Whenever
any notice whatever is required to be given to any Director of this Company
under the Articles of Incorporation or Bylaws or any provision of law, a waiver
thereof in writing, signed at any time, whether before or after the time of
meeting, by the Director entitled to such notice, shall be deemed equivalent to
the giving of such notice. The attendance of a Director at a meeting shall
constitute a waiver of notice of such meeting, except where a Director attends a
meeting and objects thereat to the transaction of any business because the
meeting is not lawfully called or convened. Neither the business to be
transacted at, nor the purpose of, any regular or special meeting of the Board
of Directors need be specified in the notice or waiver of notice of such
meeting.
Section 6.4. Quorum. Except as otherwise provided by law or by the Articles of
Incorporation or these Bylaws, a majority of the number of Directors authorized
by the Articles of Incorporation and established in accordance with these
Bylaws, shall constitute a quorum for the transaction of business at any meeting
of the Board of Directors, but a majority of the Directors present (though less
than such quorum) may adjourn the meeting from time to time without further
notice.
Section 6.5. Manner of Acting. The act of the majority of the Directors present
at a meeting at which a quorum is present shall be the act of the Board of
Directors, unless the act of a greater number is required by law or by the
Articles of Incorporation or these Bylaws.
Section 6.6. Presumption of Assent. A Director of this Company who is present at
a meeting of the Board of Directors or a committee thereof at which action on
any corporate matter is taken shall be presumed to have assented to the action
taken unless his/her dissent shall be entered in the minutes of the meeting or
unless he/she shall file a written dissent to such action with the person acting
as the Secretary of the meeting before the adjournment thereof or shall forward
such dissent by registered mail to the Secretary of this Company immediately
after the adjournment of the meeting. Such right to dissent shall not apply to a
Director who voted in favor of such action.
Section 6.7. Informal Action Without Meeting. Any action required or permitted
by the Articles of Incorporation or these Bylaws or any provision of law to be
taken by the Board of Directors at a meeting, or by resolution may be taken
without a meeting if a consent resolution in writing, setting forth the action
so taken shall be signed by all of the Directors then in office. Such consent
shall have the same force and effect as a unanimous vote of the Board of
Directors.
Section 6.8. Meetings by Conference Telephone. Directors may participate in a
meeting of the Board of Directors or a committee thereof by means of conference
telephone or similar communications equipment through which all persons
participating in the meeting can hear each other. Such participation will
constitute presence in person at that meeting for the purpose of constituting a
quorum and for all other purposes. The place of any meeting held pursuant to
this section will be deemed to be the place stated in the minutes of such
meeting so long as at least one Director is present at that place at the time of
that meeting.
ARTICLE VII
Committees
Section 7.1. Committees. The Chairman of the Board may appoint committees except
standing committees or any other committee required to be elected or appointed
by the Board of Directors. The Board of Directors by resolution adopted by the
affirmative vote of a majority of the number of Directors as established in
accordance with these Bylaws may designate one or more standing committees or
other committees required to be elected or appointed by the Board of Directors,
each committee to consist of three (3) or more Directors or employees of this
Company elected or appointed by the Board of Directors or appointed by the
Chairman of the Board, as provided in said resolution which to the extent
provided in said resolution as initially adopted, and as thereafter supplemented
or amended by further resolution adopted by a like vote, shall have when the
members thereof are exclusively members of the Board of Directors, and may
exercise when the Board of Directors is not in session, the powers of the Board
of Directors in the management of the business and affairs of this Company,
except action in respect to dividends to policyholders, election of the
principal officers or the filling of vacancies in the Board of Directors or
committees created pursuant to this Section or as otherwise restricted by law.
The Board of Directors or its Chairman may elect or appoint one (1) or more of
its members or employees of this Company as provided in said resolution, as
alternate members of any such committee who may take the place of any absent
member or members at any meeting of such committee, upon request by the
President or upon request by the Chairman of such meeting. Each such committee
shall fix its own rules governing the conduct of its activities and shall make
such reports to the Board of Directors of its activities as the Board of
Directors may request.
ARTICLE VIII
Officers
Section 8.1. Principal Officers. The principal officers of this Corporation
shall be Chairman of the Board, Vice Chairman of the Board, who may also be
designated as Vice President of the Board, Secretary and Treasurer, all of whom
shall be Directors, and the President, who need not be a Director. All principal
officers and Directors shall be policyholders of this Corporation. No two
offices may be held by the same person.
Section 8.2. Chairman of the Board. The Chairman of the Board shall preside at
all meetings of members of this Corporation and the Board of Directors. The
Chairman shall present an annual report to the members and appoint committees
which are not standing committees or other committees required to be elected or
appointed by the Board of Directors. The Chairman shall perform such other
duties as shall be assigned from time to time by the Board of Directors.
Section 8.3. Vice Chairman. The Vice Chairman shall, in the absence or
disability of the Chairman of the Board, perform the duties of that office. The
Vice Chairman elected by the Board of Directors may be designated as Vice
President of the Board.
Section 8.4. Secretary. The Secretary shall keep, or cause to be kept, a record
of the votes of all elections, minutes of all annual meetings and special
meetings of members of this Corporation, and all meetings of the Board of
Directors. He/She, or any of the Assistant Secretaries appointed by the Board,
shall have the custody of the corporate seal and affix the same to all
instruments required to be sealed. He/She shall perform, or cause to be
performed by an Assistant Secretary, such other duties as are required by law,
the Board of Directors, and the Bylaws of this Corporation.
Section 8.5. Treasurer. The Treasurer shall be the financial officer of the
Board of Directors. He/She shall be responsible for the custody of all funds and
securities of this Corporation in accordance with the authorization and
direction of the Board of Directors. He/She shall be responsible for reporting
to the Board of Directors at each regular annual meeting with respect to the
funds and securities of this Corporation. The Treasurer shall perform such other
duties as are assigned by the Board of Directors. He/She shall furnish to the
Directors, whenever required by them, such statements and abstracts or records
as are necessary for a full exhibit of the financial condition of this
Corporation.
Section 8.6. President. The President shall be the principal executive officer
of this Corporation and, subject to the control of the Board of Directors, shall
in general be responsible for the supervision and control of all of the business
and operations of this Corporation. He/She shall be responsible for
authorization of expenditure of all funds of this Corporation as have been
approved by the Board of Directors in the budget or are within the general
authority granted by the Board of Directors for expenditure of funds. He/She
shall have authority, subject to such rules as may be prescribed by the Board of
Directors, to appoint such agents and employees of this Corporation as shall be
deemed necessary, to prescribe their powers, duties and compensation, and to
delegate authority to them. Such agents and employees shall hold office at the
discretion of the President. He/She shall have authority to sign, execute and
acknowledge, on behalf of this Corporation, all deeds, mortgages, bonds,
contracts under seal, leases, and all other documents or instruments whether or
not under seal which are authorized by or under authority of the Board of
Directors provided that any such documents or instruments may, but need not, be
countersigned by the Secretary, or an Assistant Secretary, and except as
otherwise provided by law or the Board of Directors, may authorize any
administrative vice president or other officer or agent of this Corporation to
sign, execute and acknowledge such documents or instruments in his/her place and
stead. In general, the President shall perform all duties incident to the office
of President and such other duties as may be prescribed by the Board of
Directors from time to time. He/She shall prepare, or cause to be prepared, a
report of the business and operations of this Corporation, for the period since
the last regular annual meeting, for submission to the Board of Directors at
each regular annual meeting. He/She shall also prepare, or cause to be prepared,
an annual proposed budget for submission to the Board of Directors.
Section 8.7. Assistant Treasurer. An Assistant Treasurer shall be appointed by
the Board of Directors. He/She shall be responsible for the proper deposit and
disbursement of all funds of this Corporation. He/She shall keep, or cause to be
kept, regular books of account. He/She shall deposit, or cause to be deposited,
all funds of this Corporation in the name of this Corporation in such banks,
trust companies or other depositories as are designated for such purpose by the
Board of Directors from time to time. He/She shall be responsible for the proper
disbursement of funds of this Corporation, including responsibility that checks
of this Corporation drawn on any bank account are signed by such officer or
officers, agent or agents, employee or employees of this Corporation in such
manner, including the use of a facsimile signature where authorized, as the
Board of Directors has determined or authorized, and he/she shall perform all of
the duties incident to the office of Assistant Treasurer, and such other duties
as from time to time may be assigned by the Treasurer.
An Assistant Treasurer for Home Office Operations and one or more District
Assistant Treasurers may be appointed by the Board of Directors, or by the
President upon authorization of the Board of Directors, with authority and
responsibility to perform the duties of Assistant Treasurer in the separate
offices of this Corporation under the supervision of the Assistant Treasurer.
Section 8.8. Other Assistants and Acting Officers. The Board of Directors shall
have the power to appoint any person to act as assistant to any officer, or to
perform the duties of such officer whenever for any reason it is impracticable
for such officer to act personally, and such assistant or acting officer
appointed by the Board of Directors shall have the power to perform all the
duties of the officer to which he/she is so appointed to be assistant, or as to
which he is so appointed to act, except as such power may be otherwise defined
or restricted by the Board of Directors.
Section 8.9. Administrative Officers and Assistant Administrative Officers. The
President shall appoint administrative officers and assistant administrative
officers who shall be appointed as deemed appropriate for the conduct of the
affairs of this Corporation for such term of office as may be designated or
without designated term of office subject to removal at will or by appointment
of a successor in office. The administrative officers and assistant
administrative officers shall perform such duties and have such authority as may
be assigned from time to time by the President.
In the absence of the President or in the event of his/her death, inability or
refusal to act, the administrative officers in the order designated by the
President shall perform the duties of the President, and when so acting, shall
have all powers of and be subject to all the restrictions upon the President.
ARTICLE IX
Miscellaneous
Section 9.1. Principal Office. The location of the principal office of this
Company shall be in the CUNA Mutual Life Insurance Company Building on Heritage
Way, in the city of Waverly, county of Bremer, and state of Iowa. This Company
may have other offices at such locations as may be necessary or convenient for
the conduct of its business.
Section 9.2. Certification and Inspection of Articles and Bylaws. This Company
shall keep in its Principal Office the original or a certified copy of its
Articles and its Bylaws as amended or otherwise altered to date, both of which
shall be open for inspection by any Member or Members at all reasonable times
during office hours.
Section 9.3. Corporate Seal. The Board may adopt, use, and, at will, alter a
corporate seal. Failure to affix a seal does not affect the validity of any
instrument. This corporate seal may be used in facsimile form.
Section 9.4. Execution of Instruments and Policies. The President, Chief
Officers, Senior Vice Presidents, Vice Presidents, and such other persons as may
be designated pursuant to duly adopted Board resolutions, shall each have
authority to execute and acknowledge or attest on behalf of this Company all
instruments executed in the name of this Company. The Secretary and Assistant
Secretaries shall each have authority to attest and acknowledge all such
instruments.
Policies and endorsements thereon shall be executed by the President and, if
required or desired, by the Secretary or an Assistant Secretary, or in any other
manner prescribed by applicable law or regulation, or directed by the Board.
Such policies and endorsements may bear facsimile signatures of the President
and, if signing, the Secretary or an Assistant Secretary. Facsimile signatures
of the President, the Secretary, and the Treasurer may be used on other
instruments to the extent permitted by law and by any Board approved internal
control directives.
Section 9.5. Official Bonds. In addition to the bonds which law or regulation
require this Company to maintain on its officers, employees, and agents, the
Board may purchase insurance or other indemnification or require a special bond
or bonds from any Director, officer, employee or agent of this Company, in such
sum and with such sureties or insurance carriers as it may deem proper.
Section 9.6. Voting Stock in Other Corporations Stock held by this Company in
another corporation shall be voted by the Chairman of the Board, the President
and/or the Chief Executive Officer unless the Board of Directors shall by
resolution designate another officer to vote such stock, and, unless the Board
of Directors shall by resolution direct how such stock shall be voted, the
President or other designated officer shall vote the same in his or her
discretion for the best interests of this Company.
ARTICLE X
Indemnification of Company Officials
Section 10.1. Liability and Mandatory Indemnification. This Corporation shall
indemnify any person who was or is a party or threatened to be made a party to
any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (excluding an action by or in the
right of this Corporation) by reason of the fact that he/she is or was a
Director or officer of this Corporation, or is or was serving at the request of
this Corporation as a Director or officer of another corporation, partnership,
joint venture, trust or other enterprise, against expenses, including attorneys'
fees, judgments, fines and amounts paid in settlement, actually and reasonably
incurred by him/her in connection with such action, suit or proceeding;
provided, that there is a determination that such person acted in good faith and
in a manner he/she reasonably believed to be in or not opposed to the best
interests of this Corporation, did not improperly receive personal benefit and,
with respect to any criminal action or proceeding, had no reasonable cause to
believe his/her conduct was unlawful. If such determination is not made by final
adjudication in such action, suit or proceeding, it shall be made by arbitration
in Waverly, Iowa, in accordance with the rules then prevailing of the American
Arbitration Association by a panel of three (3) arbitrators. One of the
arbitrators will be selected by a committee of at least three (3) policyholders
appointed especially for such purposes by the Board of Directors by a majority
vote of a quorum consisting of Directors who were not parties to such action,
suit or proceeding (or, if such a quorum is not obtainable, by the Insurance
Commissioner for the state of Iowa), the second by the officers and Directors
who may be entitled to indemnification, and the third by the two arbitrators
selected by the parties. The termination of any action, suit or proceeding by
judgment, order, settlement, conviction, or upon a plea of nolo contendere or
its equivalent, shall not, of itself, create a presumption that the person did
not act in good faith and in a manner which he/she reasonably believed to be in
or not opposed to the best interests of this Corporation and, with respect to
any criminal action or proceeding, had reasonable cause to believe that his/her
conduct was unlawful.
No Director or officer shall be liable to this Corporation for any loss or
damage by it on account of any action taken or omitted to be taken by him/her as
a Director or officer of this Corporation in good faith and in a manner he/she
reasonably believed to be in and not opposed to the best interests of this
Corporation and had no reasonable cause to believe was unlawful, and a Director
or officer shall be entitled to rely on advice of legal counsel for this
Corporation if in good faith and upon financial statements of this Corporation
represented to be correct by the President or other officer having charge of the
corporate books of account or stated in a written report by a certified public
accountant or upon statements made or information furnished by other officers or
employees of this Corporation which he/she had reasonable grounds to believe
were true.
Section 10.2. Controlled Subsidiaries. All officers and Directors of controlled
subsidiaries of this Corporation shall be deemed for the purposes of this
Article to be serving as such officers and Directors at the request of this
Corporation. The right to indemnification granted to such officers and Directors
by this Article shall not be subject to any limitation or restriction imposed by
any provision of the Articles of Incorporation or Bylaws of a controlled
subsidiary. For purposes hereof, a "controlled subsidiary" means any corporation
in which at least fifty-one percent (51%) of the outstanding voting stock is
owned by this Corporation or another controlled subsidiary of this Corporation.
Section 10.3. Advance Payment. Expenses, including attorneys' fees, incurred in
defending a civil or criminal action, suit or proceeding, may be paid by this
Corporation in advance of the final disposition of such action, suit or
proceeding upon receipt of an undertaking by or on behalf of the Director or
officer to repay such amount unless it shall ultimately be determined that
he/she is entitled to be indemnified by this Corporation in accordance with this
Article.
Section 10.4. Other Rights. The indemnification provided by this Article shall
not be deemed exclusive of any other rights to which any officer, Director,
employee or agent may be otherwise entitled, and shall continue as to a person
who has ceased to be a Director or officer and shall inure to the benefit of the
heirs, executors and administrators of such a person.
Section 10.5. Insurance. This Corporation may, but shall not be required to,
purchase and maintain insurance on behalf of any person who is or was a
Director, officer, employee or agent of this Corporation, or is or was serving
at the request of this Corporation as a Director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise
against any liability asserted against him/her and incurred by him/her in any
such capacity or arising out of his/her status as such, whether or not this
Corporation would be obligated to indemnify him/her against such liability under
the provisions of this Article. Such insurance may, but need not, be for the
benefit of all Directors, officers, employees and agents.
ARTICLE XI
Emergency Provisions
Section 11.1. Special Bylaw Provisions During Emergencies. If as a result of a
declared, national or state, emergency resulting from actual or threatened enemy
action, or, as a result of a natural or man-made catastrophe, or other unusual
or emergency conditions, it is impossible to convene readily a quorum of the
Board of Directors Executive Committee or any other Committee of the Board, for
action within their respective jurisdictions, thus making it impossible, or
impractical, for this Company to conduct its business in strict accord with the
normal provisions of law, or of these Bylaws or of the Articles of
Incorporation, then, and in any of said events, to provide for continuity of
operations, these emergency Bylaws shall supervene and take effect if necessary
over all other Bylaws for the duration of the emergency period, and all the
powers and duties vested in any committee or committees or the Board of
Directors, so lacking a quorum shall vest automatically in the Emergency
Management Committee which shall consist of all readily available members of the
Board of Directors. Three (3) members of the Emergency Management Committee
shall constitute a quorum provided, however, that:
If there are only two (2) available Directors, they and the first one
of the following listed officials of this Company who is readily
available and accepts the responsibility (even though he/she is not a
Director) shall serve as the Emergency Management Committee or if there
is only one available Director, he/she and the first two of the
following listed officials of this Company who are readily available
and accept the responsibility (even though not Directors) shall serve
as the Emergency Management Committee:
(a) The Chief Executive Officer, if any, or
(b) The President, if any, or
(c) The Executive Vice Presidents in order of seniority based on
their period of service in such office, if any, or
(d) The Chief Officers in order of seniority based on their period
of service in such office, if any, or
(e) The Senior Vice Presidents in order of seniority based on
their period of service in such office, if any, or
(f) The administrative Vice Presidents in order of seniority based
on their period of service in such office, if any, or
(g) The Comptroller, if any, or
(h) The Department Managers in the order of seniority based on
length of their period of service in such position, if any, or
If there is no readily available Director the first three (3) of those
just previously listed in the above order (even though not Directors),
who are readily available and accept the responsibility, shall serve as
the Emergency Management Committee, provided, however, that an
Emergency Management Committee composed solely of officials who are not
Directors, shall not have the power to fill vacancies on the Board of
Directors but shall as soon as circumstances permit conduct an election
of Directors.
If there are no Directors, Chief Executive Officer, President, Executive Vice
President, Chief Officers, Senior Vice Presidents, Vice Presidents, Comptroller
or Department Managers readily available to form an Emergency Management
Committee, then the Commissioner of Insurance of the state of Iowa or the duly
designated person exercising the powers of the Commissioner of Insurance of the
state of Iowa shall appoint three (3) persons to act as the Emergency Management
Committee who shall be empowered to act in the manner and with the powers
hereinabove provided when the Emergency Management Committee is composed solely
of officials who are not Directors.
If the Emergency Management Committee takes an action in good faith, such action
shall be valid and binding as if taken by the Board of Directors, or as the case
may be, the Committee it represents, although it may subsequently develop that
at the time of such action conditions requisite for action by the Emergency
Management Committee did not in fact exist.
If the Emergency Management Committee in good faith elects someone to an office
which it believes to be vacant, the acts of such newly elected officer shall be
valid and binding although it may subsequently develop that such office was not
in fact vacant.
ARTICLE XII
Adoption, Amendment or Repeal of Bylaws
Section 12.1. Bylaw Amendment by Board of Directors. The Bylaws of this Company
may be amended by a two-thirds (2/3) vote of the Board of Directors at any
meeting of the Board of Directors in any manner not inconsistent with the
insurance laws of the state of Iowa and this Company's Articles of
Incorporation, subject to the power of the Members to alter or repeal any
amendment made by the Board of Directors. Any particular article or section of
these Bylaws may provide for amendment only upon vote of the Members. The Bylaws
of this Company may also be amended, altered, or repealed in any manner not
inconsistent with the insurance laws of the state of Iowa by a vote of
two-thirds (2/3) of the Members voting at an annual meeting or special vote or
meeting of the Members of this Company.
Section 12.2. Initiation of Bylaw Amendment by Members. An amendment to the
Bylaws may be initiated by the direct action of the Members as follows:
One percent (1%) or more of this Company's Members shall sign and file
with the Secretary, not later than ninety (90) days prior to the date
of the annual meeting of this Company, a copy of the proposed amendment
or amendments together with a brief statement of the purpose thereof
and a statement from this Company's General Counsel that the proposed
amendment is acceptable under Iowa law. Such a copy of the proposed
amendment and statement of purpose shall be on a form to be furnished
by the Secretary and shall be signed by the Member, if a natural
person, and by the president or treasurer or other authorized officer,
if a corporate member, such officer having been so authorized by
resolution duly adopted by the board of directors of such corporation.
Upon timely receipt of a proposed amendment to the Bylaws accompanied by the two
required statements, properly prepared and signed and arising by action of the
Members as herein provided, the Secretary shall send or cause to be sent a copy
of such proposed amendment to all Members not less than twenty (20) days prior
to the date of the next annual meeting. The Board of Directors may make a
recommendation to Members as to any such amendment as proposed.
RESTATED BYLAWS: The foregoing shall constitute Restated Bylaws of this Company
which shall supersede and take the place of the heretofore existing Bylaws and
amendments thereto.
EXHIBIT 10
<TABLE>
<CAPTION>
<S> <C>
1. Proposed Insured
Name Date of Birth:
First Middle Last
Address Soc. Sec. No.:
City _______________________ State _________ ZIP Phone ( ) Best Timme to Call:
Day Eve. Home Work
Driver's Lic. No. ____________________ Occupation ___________________________ Annual Income $
2. Owner Name Relationship
(Relationship to Proposed Insured)
Address Soc.Sec./Tax ID:
Street City State ZIP
3. VUL Plan of Insurance Specified Amount $_____________
a. Riders: Waiver b. Dividends: d. Policy Guarantee:
ADB $___________ Apply as New Premium (If left blank, we will assume none)
GIR $___________ Cash Basic
OIR (See Section 4) Extended
CIR (See Section 4) c. Death Benefit Option: None
Other Option 1 (Level)
_______________ Option 2 (Variable)
4. Other Insured Rider (OIR) / Children's Insurance Rider (CIR)
[Use separate sheet if needed, collect owner and other insured(s) signatures (if age 16 and up) and date.]
OIR/CIR Driver's License No. Birth Beneficiary
Name and Relationship Amount Birth Date & Soc. Sec. No. State Gender Occupation (Name and Relationship to OIR)
5. Beneficiary (To list more Beneficiaries, Use Section 8)
Name Address Relationship to Proposed Insured
Primary
Contingent
6. Total Life Insurance Coverage (including those being replaced and pending in other companies):
Check here if no other coverage.
Will the New
Coverage Replace or
Insured Name Company Amount ADB Year Issued Change this Policy?
Yes No
Yes No
Yes No
7. Allocations (Whole %; Minimum 5% per Subaccount)
Premium Payment/
Insurance Charges
__________% Mid-Cap Stock
__________% Capital Appreciation Stock
__________% Growth and Income Stock
__________% Balanced
__________% Bond
__________% Money Market
__________% Global Governments
__________% International Stock
__________% Emerging Growth
__________% High Income
__________% Developing Markets
__________% Fixed Account
__________% Other ____________________________
100% Total
8. Remarks
9. Notations - Home Office Only:
10. Suitability and Acknowledgement
a. Do you understand that the death benefit of this policy may be
variable or fixed depending on whether you choose Option 1 death
benefit or Option 2 death benefit? M Yes M No
b. Do you understand that policy values may increase or decrease in
accordance with the investment experience of the separate account? M
Yes M No
c. Is this policy in accordance with your insurance and investment
objectives, financial situation and needs? M Yes M No
d. I received a prospectus dated _______________________________.
Date on Prospectus
e. I received the Summary and Disclosure Notice for the Accelerated
Benefit Option Endorsement.
f. I understand that I will automatically have telephone/fax
authorization unless the following box is marked:
I do NOT want telephone/fax authorization. I understand that the
representative who signs this application will automatically have
telephone/fax authorization unless the following box is marked:
I do NOT want the representative who signed this application to
have telephone/fax authorization.
See the Optional Program form for details on what transactions can be
done by telephone/fax. If your representative changes, you will need
to complete a new authorization form.
11. Payments Please make checks payable to CUNA Mutual Life Insurance Company
Initial Payment $____________ Planned Payments $ No Future Payments
By: Check By: ACH (Monthly) Semiannual Additional Lump Sum of
Draft through ACH Quarterly Annual $ deposited
Other in the first policy year
Automatic Payment Plan Authorization (ACH) h New Plan h Add to Existing Group No. __________
I authorize CUNAMutual Life Insurance Company and the financial institution
named below to initiate deductions or credits to my account either by electronic
funds transfer or paper draft. This authorization will remain in effect until
revoked by me in writing or by telephone. Monthly deductions will occur on the
25th of the month, unless another date is selected.
Draft Date: 1st 5th 10th 15th 20th 25th
Type of Account: Share Draft/Checking Share Account/Savings
(Attach voided check.) (Only available for accounts accepting electronic deductions.)
For Share Accounts/Savings:
Financial Institution
Name Address Phone
Account Number Routing Number
12. For All Persons Proposed for Insurance, complete a-h. For all yes answers,
give name and details in Section 13. [Use separate sheet if needed, collect
signatures of all proposed insureds (if age 16 and over) and date.]
Yes No
a. Used tobacco in any form within the last 12 months?
b. Used tobacco in any form within the last 36 months?
c. Ever had life or disability income insurance denied, rated, or
otherwise modified?
d. Within the last five years, had a driver's license suspended
or revoked or had a moving violation or accident?
e. Engaged in the last three years or plan to engage in:flights
as a pilot, ballooning, hang gliding, sky/scuba diving, vehicle
racing, or similar sports?[If so, include appropriate form(s).]
f. Been convicted of a felony within the last ten years?
g. Plan to travel or reside outside the U.S. or Canada within the
next two years?
h. Citizen of the United States?(If yes, no details needed. If
no, details and documentation required.)
13. Statement of Health (Part II) Required for all proposed insureds applying on a non-medical basis.
Names for whom Part IIis being completed: Height Weight Attending Physician Name and Address
PI=Proposed Insured;OIR=Other Insured(s) Ft./In.
PI
OIR
OIR
OIR
OIR
Has any proposed insured under the base policy or the other insured rider:
Yes No a. Ever had or been treated by a physician or consulted with a health advisor for any of the following:
1. Asthma, emphysema, chronic obstructive pulmonary disease (COPD), or other lung/breathing disorder?
2. High blood pressure, chest pain, heart attack, stroke, or other cardiovascular disorder?
3. Disorder of the kidney, genitourinary tract, prostate or reproductive systems?
4. Diabetes, elevated sugar, thyroid or other endocrine disorder?
5. Ulcers, hepatitis, colitis, cirrhosis, Crohn's disease, disorder of the pancreas, liver or intestines?
6. Cancer, tumors, polyps or cysts?
7. Arthritis, disorder of the bones or joints, paralysis or connective tissue disease?
8. Disorder of the blood, blood vessels, lymph glands or anemia?
9. Mental, nervous system, seizure, depression or brain disorder?
b. Ever been treated or advised to seek treatment for the use of alcohol or drugs?
c. Currently, or within the last five years, consulted a physician or received treatment for any disease, injury, or
mental disorder not listed in a. or b. above?
d. Ever used cocaine, sedatives, stimulants, narcotics, heroin, hallucinogens or other drugs except as
prescribed by a physician?
e. Ever been diagnosed or treated by a member of the medical profession for an immune deficiency disorder,
Acquired Immune Deficiency Syndrome (AIDS), AIDS-Related Complex (ARC), sexually transmitted disease or
tested positive for antibodies to the AIDS virus (HIV)?
f. Ever requested or received a pension, benefits or payment because of an injury, sickness or disability?
g. Currently taking any prescription medications?
h. Had a mother/father/sibling die before age 60 of cardiovascular disease, prostate/breast cancer or diabetes?
Details:Give full details to all "Yes" answers above.
(Attach a separate sheet with signatures and date if more space is required.)
Question# Proposed Insured Date/Duration Diagnosis Physician's Name/Address Treatment/Medication
14. Temporary Insurance Agreement
A. Upon receipt of the full first premium required by the Company, this
Agreement provides a LIMITEDAMOUNTof life insurance on the proposed
insured(s) for a LIMITEDTIMEwhile we consider the application for life
insurance to CUNAMutual Life Insurance Company. No agent of CUNAMutual
Life Insurance Company has authority to waive or change the terms or
conditions of this Agreement. The amount of temporary coverage in
effect for any proposed insured is based upon the completion date of
all supplemental applications and medical exams required by our
published underwriting rules. The amounts are as follows:
1. 50% of the specified amount applied for up to a maximum benefit
of $150,000 per proposed insured until such time the requirements
as stated above have been met; or
2. 100% of the specified amount applied for up to a maximum benefit
of $300,000 per proposed insured, upon completion of such
requirements.
B. No coverage will take effect under this Agreement if:
1. the proposed insured commits suicide;
2. the application contains material misrepresentation or is
fraudulently completed;
3. any proposed insured has received, sought or had recommended any
treatment for cancer, stroke, or any disease or disorder of the
heart, liver or immune system within the past 12 months;
4. any proposed insured has been advised to be hospitalized or is a
patient in a hospital or medical facility at the time of this
Agreement;
5. a check or draft received in payment of premium is not honored
for payment when first presented.
C. Coverage provided under this Agreement does not apply to any rider
providing waiver of premium or accidental death benefits.
D. Coverage under this Agreement ends automatically on the EARLIESTof the
following: 1) when coverage starts under the policy applied for; 2)
when we offer a policy other than as applied for; 3) when we mail
notice to the owner(s) of our decision to decline the application or
terminate coverage under this Agreement; 4) when the owner requests
cancellation; or 5) 60 days after the date of the application.
IF ANY OF THE CONDITIONS OF THIS AGREEMENT ARE NOT MET, IT IS NOT IN EFFECT
AND THE COMPANY'S SOLE LIABILITY WILL BE TO RETURN ANY PREMIUM ACCEPTED TO
THE OWNER.
15. Agreement/Authorization
All statements and answers given on Part Iand IIof this application are
true and complete to the best of my knowledge and belief. This application
and any supplemental application(s) will be the basis of any insurance
issued. Except as stated in the Temporary Insurance Agreement, no insurance
will take effect unless a policy is issued by the Company, received by the
proposed insured/owner and the first premium is paid while my health and
other factors affecting my insurability are as described in my application.
Agents or examiners cannot determine insurability, change terms of the
application, or make a contract for the Company. In states where written
consent is required, my agreement in writing is required for entries made
by the Company in Section 9as to age, plan, riders, amount, or rate class.
Any person who, with intent to defraud or knowing that s/he is facilitating
a fraud against an insurer, submits an application or files a claim
containing a false or deceptive statement is guilty of insurance fraud,
which is a crime. I authorize any health care providers, insurance
companies, the Medical Information Bureau, Inc., consumer reporting agency,
financial institution, or employer having information about my physical or
mental condition, financial status, employment status, or other relevant
information about me or my minor children to give all information to
CUNAMutual Life Insurance Company or its reinsurers to determine
eligibility for insurance or benefits. Information obtained will be
released only to reinsurers, the Medical Information Bureau, Inc., persons
performing business with my application and subsequent insurance-related
duties, as required by law, or as I authorize.
I agree this authorization is valid for 30 months, a copy is as valid as
the original, and Ican receive a copy upon request. The Important Notice to
Applicants for Insurance has been received by me.
I, the proposed owner(s) certify under penalties of perjury, that the
taxpayer identification number(s) shown under Sections 1 and2 (if Owner is
other than the Insured), is my correct taxpayer identification number and I
am NOT subject to backup withholding unless I have marked the box below:
I have been notified that I am subject to backup withholding under
Internal Revenue Section 3406(a)(1)(c) and the payor shall withhold in
accordance with withholding requirement imposed by law.
The Internal Revenue Service does not require your consent to any
provisions of this document other than the certifications required to avoid
backup withholding.
Agent:To the best of your knowledge, will coverage applied for replace any
existing policy? Yes No Signed on _____________ at
Date City/State Signature of Agent Agent No.
Signature of Proposed Insured (if age 16 and over) Signature of Owner (if other than Proposed Insured)
Signature of Other Insured (if age 16 and over) Signature of Other Insured (if age 16 and over)
If payments will be deducted from an account through ADC:
Signature of Account Owner (if other than Proposed Insured/Owner)
ATTENTION:
IMPORTANT NOTICE TO
APPLICANTS FOR INSURANCE
THIS NOTICE IS TO BE READ BY THE APPLICANT FOR INSURANCE
(GIVE TO PROPOSED INSURED; IF MINOR, TO PARENT OR GUARDIAN)
In order to evaluate your application for insurance, CUNAMutual Life Insurance
Company or its reinsurers may ask for medical or other personal information
about you and any other person to be insured from medical professionals, or the
Medical Information Bureau, Inc. Information we collect about you will not be
given to anyone without your consent, except when necessary to conduct our
business. A brief report may be made to the Medical Information Bureau, a
non-profit membership organization of life insurance companies, which operates
an information exchange on behalf of its members. If you apply to another Bureau
member company for life or health insurance, or a claim is submitted to such a
company, the Bureau will, upon request, supply such company with information in
its file. CUNAMutual Life Insurance Company or its reinsurers may also release
information in its file to other life insurance companies to whom you may apply
for insurance, or to affiliated companies, or to whom a claim for benefits may
be submitted.
If you ask, the Bureau will arrange disclosure of any information it may have in
your file. If you question the accuracy of information in the Bureau's file, you
may contact the Bureau and seek a correction in accordance with the procedures
set forth in the Federal Fair Credit Reporting Act. The address of the Bureau's
information office is Post Office Box 105, Essex Station, Boston, Massachusetts
02112, telephone number (617) 426-3660.
Also, as part of our normal procedure for processing your application, an
investigative consumer report or other consumer report may be prepared. In an
investigative consumer report, information is obtained through personal
interviews with your neighbors, friends, or others with whom you are acquainted.
This inquiry, if obtained, typically includes information as to your character,
general reputation, and mode of living, except as may be related directly or
indirectly to your sexual orientation. If you ask, you may be interviewed by the
agency preparing your report. Information you give to the agency will be
included in the report sent to us.
You may make a written request to the Chief Underwriter of CUNAMutual Life
Insurance Company within a reasonable period of time for additional information
about the nature and scope of this investigation.
Through these inquiries we seek to offer you coverage at the lowest possible
cost.
CUNAMutual Life Insurance Company
2000 Heritage Way
Waverly, IA50677
RECEIPT
ALL PREMIUM CHECKS MUST BE MADE PAYABLE TO THE INSURANCE COMPANY.
DO NOT MAKE CHECK PAYABLE TO THE AGENT OR LEAVE THE PAYEE BLANK.
$_________________received from on __________________
Owner Name Date
Method of Payment: Money Order Check Number _________
We acknowledge receipt of the amount above with an application for life
insurance. The applicants may be covered under a Temporary Insurance Agreement
while we consider the application for life insurance. If you have questions,
please contact your representative. If you do not have a representative, contact
CUNAMutual Life Insurance Company.
- ---------------------------------------------
Signature of Agent Agent No.
M Yes M No
</TABLE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, James C. Barbre, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Registration Statements and Amendments thereto with the
Securities and Exchange Commission for the CUNA Mutual Life Variable Account.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ James C. Barbre
James C. Barbre
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Robert W. Bream, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Registration Statements and Amendments thereto with the
Securities and Exchange Commission for the CUNA Mutual Life Variable Account.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Robert W. Bream
Robert W. Bream
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, W. F. Broxterman, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Registration Statements and Amendments thereto with the
Securities and Exchange Commission for the CUNA Mutual Life Variable Account.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ W. F. Broxterman
W. F. Broxterman
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, James L. Bryan, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Registration Statements and Amendments thereto with the
Securities and Exchange Commission for the CUNA Mutual Life Variable Account.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ James L. Bryan
James L. Bryan
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Loretta M. Burd, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Registration Statements and Amendments thereto with the
Securities and Exchange Commission for the CUNA Mutual Life Variable Account.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Loretta M. Burd
Loretta M. Burd
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Ralph B. Canterbury, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Registration Statements and Amendments thereto with
the Securities and Exchange Commission for the CUNA Mutual Life Variable
Account. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Ralph B. Canterbury
Ralph B. Canterbury
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Joseph N. Cugini, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Registration Statements and Amendments thereto with the
Securities and Exchange Commission for the CUNA Mutual Life Variable Account.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Joseph N. Cugini
Joseph N. Cugini
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Rudolf J. Hanley, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Registration Statements and Amendments thereto with the
Securities and Exchange Commission for the CUNA Mutual Life Variable Account.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ rudolf J. Hanley
Rudolf J. Hanley
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Jerald R. Hinrichs, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Registration Statements and Amendments thereto with
the Securities and Exchange Commission for the CUNA Mutual Life Variable
Account. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Jerald R. Hinrichs
Jerald R. Hinrichs
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Michael B. Kitchen, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Registration Statements and Amendments thereto with
the Securities and Exchange Commission for the CUNA Mutual Life Variable
Account. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Michael B. Kitchen
Michael B. Kitchen
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Robert T. Lynch, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Registration Statements and Amendments thereto with the
Securities and Exchange Commission for the CUNA Mutual Life Variable Account.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Robert T. Lynch
Robert T. Lynch
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Brian L. McDonnell, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Registration Statements and Amendments thereto with
the Securities and Exchange Commission for the CUNA Mutual Life Variable
Account. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Brian L. McDonnell
Brian L. McDonnell
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Clark Alan Peppers, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Registration Statements and Amendments thereto with
the Securities and Exchange Commission for the CUNA Mutual Life Variable
Account. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Clark Alan Peppers
Clark Alan Peppers
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Omer K. Reed, a director of CUNA Mutual Life
Insurance Company, a life insurance company incorporated under the laws of and
domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin S.
Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as my attorneys and
agents for me and in my name as director of CUNA Mutual Life Insurance Company
on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life Variable
Account (or otherwise) with full power to prepare, review, execute, deliver and
file Registration Statements and Amendments thereto with the Securities and
Exchange Commission for the CUNA Mutual Life Variable Account. This Power of
Attorney shall terminate at the end of my appointed term as Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Omer K. Reed
Omer K. Reed
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Richard C. Robertson, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Registration Statements and Amendments thereto with
the Securities and Exchange Commission for the CUNA Mutual Life Variable
Account. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Richard C. Robertson
Richard C. Robertson
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Rosemarie M. Shultz, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Registration Statements and Amendments thereto with
the Securities and Exchange Commission for the CUNA Mutual Life Variable
Account. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Rosemarie M. Shultz
Rosemarie M. Shultz
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Neil A. Springer, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Registration Statements and Amendments thereto with the
Securities and Exchange Commission for the CUNA Mutual Life Variable Account.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Neil A. Springer
Neil A. Springer
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Farouk D. G. Wang, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Registration Statements and Amendments thereto with the
Securities and Exchange Commission for the CUNA Mutual Life Variable Account.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Farouk D. G. Wang
Farouk D. G. Wang
Director, CUNA Mutual Life Insurance Company
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Larry T. Wilson, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Steve R. Suleski, or Faye A. Patzner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Registration Statements and Amendments thereto with the
Securities and Exchange Commission for the CUNA Mutual Life Variable Account.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 15th day of June, 1999.
/s/ Larry T. Wilson
Larry T. Wilson
Director, CUNA Mutual Life Insurance Company
