<PAGE> 1
As filed with the Securities and Exchange Commission on November 5, 1998
Registration No. 033-76582
Registration No. 811-8420
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-4
----------------------------------
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 9 [X]
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 16 [X]
(Check appropriate box or boxes)
----------------------------------
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY SEPARATE ACCOUNT 1
(Exact Name of Registrant)
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
(Name of Depositor)
400 Broadway
Cincinnati, Ohio 45202
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number (513) 629-1800
----------------------------------
Copy to:
DONALD J. WUEBBLING, ESQ. MARK H. LONGENECKER, ESQ.
400 Broadway Frost & Jacobs LLP
Cincinnati, Ohio 45202 2500 PNC Center
(Name and Address of Agent for Service) 201 East Fifth Street
Cincinnati, Ohio 45202
----------------------------------
Approximate Date of Proposed Public Offering: Continuous Offering
It is proposed that this filing will become effective (check appropriate box)
___ immediately upon filing pursuant to paragraph (b) of rule 485
on January 4, 1999 pursuant to paragraph (b) of Rule 485
XX 60 days after filing pursuant to paragraph (a)(1) of Rule 485
___ on (date) pursuant to paragraph (a)(1) of Rule 485
If appropriate, check the following box:
___ this post-effective amendment designates a new effective date for
a previously filed post-effective amendment.
Title of Securities Being Registered: Variable Annuity Contracts
----------------------------------
- -------------------------------------------------------------------------------
<PAGE> 2
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY SEPARATE ACCOUNT 1
TOUCHSTONE VARIABLE ANNUITY
CROSS-REFERENCE SHEET REQUIRED BY RULE 495(A)
FORM N-4 PART A ITEM NO. HEADING IN PROSPECTUS
- --------------------------------------------------------------------------------
1. Cover Page Cover Page
2. Definitions Glossary
3. Synopsis
(a) Fee and Expense Tables Fee and Expense Tables
(b) Synopsis Summary
4. Condensed Financial Information
(a) Accumulation Unit Values Accumulation Unit Values,
Supplement A
(b) Performance Information Performance Information
(c) Financial Statements Other Information about your
Contracts
5. General Description of Registrant,
Depositor and Portfolio Companies
(a) Depositor WSLAC and Separate Account 1
(b) Registrant WSLAC and Separate Account 1
(c) Portfolio Company Information about the Investment
Options
(d) Prospectus Information about the Investment
Options
(e) Voting Voting Rights
(f) Administrator Service Providers
6. Deductions and Expenses
(a) Deductions Charges
(b) Sales load Charges
(c) Special purchase plans Purchasing Your Contract
(d) Commissions Service Providers
(e) Portfolio company expenses Information about the Investment
Options
(f) Registrant's expenses Charges
1
<PAGE> 3
FORM N-4 PART A ITEM NO. HEADING IN PROSPECTUS
- --------------------------------------------------------------------------------
7. General Description of Variable Annuity
Contracts
(a) Rights Other Information about Your
Contract
(b) Allocations, transfers and Purchasing Your Contract,
exchanges Transferring Your Money
(c) Changes in contracts or operations Information about the Investment
Options
(d) Contract owner inquiries Summary
8. Annuity Period
(a) Level of benefits Annuity Income Payment Options
(b) Annuity commencement date Annuity Income Payment Options
(c) Annuity payments Annuity Income Payment Options
(d) Assumed investment return Not applicable
(e) Minimums Annuity Income Payment Options
(f) Rights to change options or Annuity Income Payment Options
transfer contract value
9. Death Benefit
(a) Death benefit calculation Guaranteed Death Benefit
(b) Forms of benefits Guaranteed Death Benefit
10. Purchases and Contract Value
(a) Procedures for purchases Purchasing Your Contract
(b) Accumulation unit values Accumulation Unit Values,
Supplement A
(c) Calculation of accumulation unit Valuation of Your Investments
values
(d) Principal underwriter Service Providers
2
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FORM N-4 PART A ITEM NO. HEADING IN PROSPECTUS
- --------------------------------------------------------------------------------
11. Redemptions
(a) Redemption procedures Accessing Your Money, Annuity
Income Payments Options
(b) Texas Optional Retirement Program Supplement C
(c) Delay Accessing Your Money, Other
Information about Your Contract
(d) Lapse Other Information about Your
Contract
(e) Revocation rights Purchasing Your Contract
12. Taxes
(a) Tax consequences Federal Income Tax Information,
Supplement B, Supplement C
(b) Qualified plans Federal Income Tax Information,
Supplement B, Supplement C
(c) Impact of taxes Federal Income Tax Information,
Supplement B, Supplement C
13. Legal Proceedings Not Applicable
14. Table of Contents for Statement of Table of Contents of Statement of
Additional Information Additional Information
FORM N-4 PART B ITEM NO. HEADING IN SAI OR PROSPECTUS
- --------------------------------------------------------------------------------
15. Cover Page Cover Page (SAI)
16. Table of Contents Table of Contents (SAI)
17. General Information and History
(a) Name change Not Applicable
(b) Attribution of assets Not Applicable
(c) Control of depositor WSLAC and Separate Account 1
(Prospectus)
18. Services
(a) Fees, expenses and costs Not Applicable
(b) Management-related services Service Providers
(c) Custodian and independent public Independent Accountants (SAI)
accountant
(d) Other custodianship Not Applicable
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FORM N-4 PART B ITEM NO. HEADING IN SAI OR PROSPECTUS
- --------------------------------------------------------------------------------
(e) Affiliated service agents Not Applicable
(f) Depositor as principal underwriter Not Applicable
19. Purchase of Securities Being Offered
(a) Manner of offering Distribution of the Contracts
(SAI), Service Providers
(Prospectus)
(b) Sales Load Charges (Prospectus)
20. Underwriters Distribution of the Contracts
(SAI), Service Providers
(Prospectus)
21. Calculation of Performance Data Sub-Account Performance (SAI)
22. Annuity Payments Fixed Annuity Income Payments
(SAI)
23. Financial Statements
(a) Registrant Financial Statements (SAI)
(b) Depositor Financial Statements (SAI)
PART C
Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C of the Registration Statement.
4
<PAGE> 6
TOUCHSTONE VARIABLE ANNUITY
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
SEPARATE ACCOUNT 1
COVER PAGE
PROSPECTUS DATED JANUARY 4, 1999
This Prospectus describes the Touchstone Variable Annuity Contract and
the investment options available to Contract owners. It contains information you
should know before purchasing a Contract and selecting your investment options.
Please read this Prospectus carefully and keep it for future reference.
The Touchstone Variable Annuity Contract is issued by Western-Southern
Life Assurance Company (WSLAC). The Contract is an investment alternative for
investors who want to accumulate money on a tax-deferred basis for retirement or
other long-term goals.
You can purchase a Contract for $2,000 or more. You can also purchase a
Contract in connection with certain types of retirement plans, such as a
Traditional or Roth IRA or a 403(b) plan, for $1,000 or more. If you select our
Automatic Investment Plan, you can purchase a Contract with regular installment
payments of $50 or more. The Contract also includes a flexible purchase payment
feature that allows you to make additional payments later.
You tell us how to invest your payments. Your investment options
include the following Sub-Accounts:
- Emerging Growth
- International Equity
- Income Opportunity
- Value Plus
- Growth & Income
- Balanced
- Bond
- Standby Income
Each Sub-Account invests in a separately managed Fund. Each Fund is
part of the Touchstone Variable Series Trust.
The Fixed Account is an additional investment option. It is a
fixed-rate option, backed by the general assets of WSLAC.
The Statement of Additional Information dated January 4, 1999 contains
more information about the Contract, WSLAC and its Separate Account 1. It has
been filed with the Securities and Exchange Commission (SEC) and is legally part
of this Prospectus. The table of contents for the Statement of Additional
Information is located on page ___ of this Prospectus.
Page 1
<PAGE> 7
For a free copy, call the Touchstone Variable Annuity Service Center at
1-800-669-2796 (press 2).
The Securities and Exchange Commission maintains a web site
(http://www.sec.gov) that contains the Statement of Additional Information,
certain other material that is legally part of the registration statement of
Separate Account 1, and other information about Separate Account 1.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of the Contracts or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense.
The Contracts are not deposits or obligations of any bank. No bank has
guaranteed or endorsed the Contracts. The Contracts are not federally insured by
the Federal Deposit Insurance Corporation, the Federal Reserve Board, the
National Credit Union Share Insurance Fund or any other agency.
Investments in variable annuities involve investment risk, including
possible loss of principal and interest.
Page 2
<PAGE> 8
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
COVER PAGE........................................................................................................
TABLE OF CONTENTS.................................................................................................
GLOSSARY..........................................................................................................
FEE AND EXPENSE TABLES............................................................................................
SUMMARY...........................................................................................................
PURCHASING YOUR CONTRACT..........................................................................................
TRANSFERRING YOUR MONEY...........................................................................................
ACCESSING YOUR MONEY..............................................................................................
CHARGES...........................................................................................................
INFORMATION ABOUT THE INVESTMENT OPTIONS..........................................................................
VALUATION OF YOUR INVESTMENTS.....................................................................................
PERFORMANCE INFORMATION...........................................................................................
ANNUITY INCOME PAYMENT OPTIONS....................................................................................
GUARANTEED DEATH BENEFIT..........................................................................................
WSLAC AND SEPARATE ACCOUNT 1......................................................................................
SERVICE PROVIDERS.................................................................................................
VOTING RIGHTS.....................................................................................................
OTHER INFORMATION ABOUT YOUR CONTRACT.............................................................................
FEDERAL INCOME TAX INFORMATION....................................................................................
SUPPLEMENT A: ACCUMULATION UNIT VALUES............................................................................
SUPPLEMENT B: SECTION 401 PLANS AND SECTION 403(B) PLANS..........................................................
SUPPLEMENT C: STATE OF TEXAS OPTIONAL RETIREMENT PROGRAM..........................................................
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION..........................................................
BACK COVER........................................................................................................
</TABLE>
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GLOSSARY
ACCUMULATION UNIT A unit of measure used to calculate
a Contact owner's share of a
Sub-Account.
ACCUMULATION UNIT VALUE The dollar value of an Accumulation Unit
in a Sub-Account.
ANNUITANT The person whose life is used to
determine the amount of any annuity
income payments and the length of time
for which the payments are made.
CODE The Internal Revenue Code of 1986, as
amended.
CONTRACT The Touchstone Variable Annuity
Contract, including the application and
any amendments, riders or endorsements.
CONTRACT DATE The effective date of a Contract. The
Contract Date is shown on page 3 of
your Contract.
CONTRACT VALUE The total value of your Contract
at any time before or on the Income
Date. This represents the sum of the
value of your investments in the
Sub-Accounts and the value of your
investments in the Fixed Account.
CONTRACT YEAR A year that starts on your Contract
Date or the anniversary of your Contract
Date.
FIXED ACCOUNT An option that provides a fixed rate of
interest.
FUND Each Sub-Account invests in a Fund that
has the same investment objective as the
Sub-Account. Each Fund is part of a
group of funds called Touchstone
Variable Series Trust.
INCOME DATE The date on which annuity payments are
scheduled to begin.
SUB-ACCOUNT A division of Separate Account 1. Each
Sub-Account invests in a Fund, which has
the same investment objective as the
Sub-Account.
SURRENDER VALUE The Contract Value minus any surrender
charges and contract maintenance charge.
WSLAC, WE, OUR AND US Western-Southern Life Assurance Company.
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FEE AND EXPENSE TABLES
These tables describe the fees and expenses that you may pay directly or
indirectly if you purchase a Contract. More complete information about these
fees and expenses is located in the following sections of this Prospectus:
[insert cross references]
CONTRACT OWNER TRANSACTION EXPENSES
<TABLE>
<S> <C>
MAXIMUM Contingent Deferred Sales Charge (Surrender Charge) 7.00%
(as a percentage of amount surrendered or withdrawn)*
Annual Contract Maintenance Charge** $35.00
</TABLE>
SUB-ACCOUNT AND FUND EXPENSES (after expense reimbursement)***
<TABLE>
<CAPTION>
SUB-ACCOUNT EXPENSES FUND EXPENSES
MORTALITY AND CONTRACT ADVISOR FEE OTHER EXPENSES TOTAL
EXPENSE RISK ADMINISTRATION
CHARGES CHARGES
<S> <C> <C> <C> <C> <C>
Emerging Growth 1.20% 0.15% 0.80% 0.35% 2.50%
International Equity 1.20% 0.15% 0.95% 0.30% 2.60%
Income Opportunity 1.20% 0.15% 0.65% 0.20% 2.20%
Value Plus 1.20% 0.15% 0.75% 0.10% 2.20%
Growth & Income 1.20% 0.15% 0.80% 0.05% 2.20%
Balanced 1.20% 0.15% 0.80% 0.10% 2.25%
Bond 1.20% 0.15% 0.55% 0.20% 2.10%
Standby Income 1.20% 0.15% 0.25% 0.25% 1.85%
</TABLE>
*The surrender charge does not apply to certain transactions. We may reduce the
surrender charge when Contracts are sold to a group. The surrender charge is
based on the number of years a purchase payment has been invested in your
Contract and decreases over time. If a purchase payment has been invested for 7
years or more when you withdraw that purchase payment, you will not pay a
surrender charge.
**In certain states and for certain retirement plans, we can waive, reduce or
eliminate the annual contract maintenance charge.
***Sub-Account annual expenses are shown as a percentage of average account
value. Fund expenses are shown as a percentage of average daily net assets.
Touchstone Advisors has agreed to waive certain fees or reimburse each Fund for
certain expenses so that the Fund's total expenses do not exceed the percentage
listed in the table below as shown in the column entitled "Fund Expenses (After
Reimbursement)". This agreement will remain in place until at least December 31,
1999. If Touchstone Advisors had not reimbursed the Funds, the total expenses of
each Fund in 1997 would have been higher, as shown in the following table in the
column entitled "Fund Expenses (Before Reimbursement)".
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<TABLE>
<CAPTION>
FUND FUND EXPENSES FUND EXPENSES
(BEFORE REIMBURSEMENT) (AFTER REIMBURSEMENT)
<S> <C> <C>
Emerging Growth 2.19% 1.15%
International Equity 3.19% 1.25%
Income Opportunity 1.72% 0.85%
Value Plus 2.85% 0.85%
Growth & Income 1.64% 0.85%
Balanced 2.04% 0.90%
Bond 1.69% 0.75%
Standby Income 1.48% 0.50%
</TABLE>
EXAMPLES
These examples should help you compare the cost of purchasing a Contract with
the cost of purchasing other variable annuity contracts.
The examples assume that you invest $1,000 in each Sub-Account, your investment
has a 5% return each year and the Fund's total expenses are the same as shown
above in the column entitled "Fund Expenses (After Reimbursement)". Your actual
costs may be higher or lower than the costs shown in the examples.
EXAMPLE 1 This example assumes that you surrender your Contract at the
end of the applicable time period.
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Emerging Growth $97 $137 $178 $301
International Equity $98 $140 $183 $311
Income Opportunity $94 $128 $162 $270
Value Plus $94 $128 NA NA
Growth & Income $94 $128 $162 $270
Balanced $94 $129 $165 $275
Bond $93 $125 $157 $259
Standby Income $90 $117 $144 $232
</TABLE>
EXAMPLE 2 This example assumes that you annuitize your Contract at the
end of the applicable time period and choose at least a 5-year
payout period.
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Emerging Growth $97 $83 $142 $301
International Equity $98 $86 $147 $311
Income Opportunity $94 $74 $126 $270
Value Plus $94 $74 NA NA
Growth & Income $94 $74 $126 $270
Balanced $94 $75 $129 $275
Bond $93 $71 $121 $259
Standby Income $90 $63 $108 $232
</TABLE>
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EXAMPLE 3 This example assumes that you do not surrender your Contract.
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Emerging Growth $27 $83 $142 $301
International Equity $28 $86 $147 $311
Income Opportunity $24 $74 $126 $270
Value Plus $24 $74 NA NA
Growth & Income $24 $74 $126 $270
Balanced $24 $75 $129 $275
Bond $23 $71 $121 $259
Standby Income $20 $63 $108 $232
</TABLE>
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TOUCHSTONE VARIABLE ANNUITY CONTRACT
SUMMARY
This summary highlights some basic information about the Touchstone
Variable Annuity Contract. More information about the Contract is located on
pages __ through __ of this Prospectus.
HOW THE CONTRACT WORKS
The Contract is a contract between you and WSLAC. The Contract, like
all variable annuity contracts, has two phases: the accumulation phase and the
annuity income phase. During the accumulation phase, earnings on your investment
accumulate on a tax-deferred basis. The annuity income phase begins when you
start to receive annuity income payments. The amount of money you accumulate
during the accumulation phase determines the amount of the annuity income
payments you receive. You can select one of several annuity income payment
plans.
The Contract also provides a guaranteed death benefit that is payable
to a designated beneficiary when the Annuitant dies. Generally, the Contract
guarantees that the beneficiary will receive the greater of either the total
purchase payments less any withdrawals or the Contract Value, regardless of
investment performance.
WHO SHOULD PURCHASE THE CONTRACT
The Contract allows you to accumulate money on a tax-deferred basis for
retirement or other long-term goals through various investment options.
Generally, the higher your tax bracket, the more you will benefit from the
tax-deferred feature of the Contract. You should not purchase a Contract if you
are looking for a short-term investment or if you cannot take the risk of
getting less money back than you paid for the Contract. You may want to consult
a tax advisor or other investment professional before you purchase a Contract.
PURCHASING A CONTRACT
You can purchase a Contract for $2,000 or more. You can also purchase a
Contract in connection with certain types of retirement plans, such as a
Traditional or Roth IRA or a 403(b) plan, for $1,000 or more. If you select our
Automatic Investment Plan, you can purchase a Contract with regular installment
payments of $50 or more. The Contract also includes a flexible purchase payment
feature that allows you to make additional payments later.
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SELECTING YOUR INVESTMENT OPTIONS
You can allocate your purchase payments among the following investment
options.
1. SUB-ACCOUNTS
The Sub-Accounts are designed to offer you a better return than the
Fixed Account. This better return is not guaranteed. Depending on market
conditions, you can make or lose money in any Sub-Account.
- Emerging Growth
- International Equity
- Income Opportunity
- Value Plus
- Growth & Income
- Balanced
- Bond
- Standby Income
2. FIXED ACCOUNT
The Fixed Account offers you a fixed return. While your money is
invested in the Fixed Account, we guarantee to pay you interest at a set rate.
We may change the interest rate, but we guarantee that the effective annual rate
will be at least 3%.
TRANSFERRING AMONG INVESTMENT OPTIONS
You can transfer money from one investment option to another. Like all
variable annuities, transfers between investment options are tax-free. The
minimum transfer amount is $250. We limit the number of times you can transfer
between investment options in each Contract Year and the amount you can transfer
from the Fixed Account.
ACCESSING YOUR MONEY
You can access your money at any time during the accumulation phase.
Generally, you can withdraw up to 10% of your purchase payments without a charge
each Contract Year. If you withdraw more than 10% in a Contract Year, there may
be a surrender charge. The maximum surrender charge is 7% of the amount
withdrawn and declines to 0% over time. You can also access your money through
our Systematic Withdrawal Plan.
Also be aware that you may be required to pay income taxes and a 10%
federal penalty tax on any amount you withdraw.
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CHARGES AND FEES
A $35 contract maintenance charge is ordinarily deducted each year from
your Contract Value. Other administrative charges are deducted at an annual rate
of no more than 1.35% of your Contract Value. Depending on the investment
options you choose, you may indirectly pay investment advisory fees. Some
charges and fees do not apply to money invested in the Fixed Account.
10-DAY REVIEW PERIOD
You have 10 days to review your Contract after you receive it. If you
are not satisfied with your Contract, you can cancel it but must do so by
returning it to the Touchstone Variable Annuity Service Center at P.O. Box 2850,
Cincinnati, Ohio 45201-2850 within 10 days after you receive it. If you cancel
your Contract, in most cases we will refund the Contract Value to you. However,
some state laws may require us to refund your purchase payments.
ADDITIONAL INFORMATION
Representatives at the Touchstone Variable Annuity Service Center can
answer your questions about the Contract. You can call the Service Center at
1-800-669-2796 (press 2).
ACCUMULATION UNIT VALUES
The Accumulation Unit Values for each Sub-Account, other than Value
Plus, are shown in Supplement A on page [___].
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PURCHASING YOUR CONTRACT
To obtain an application to purchase a Contract, please contact your
investment advisor or the Touchstone Variable Annuity Service Center by mail at
P.O. Box 2850, Cincinnati, Ohio 45201-2580 or by phone at 1-800-669-2796 (press
2).
MINIMUM AND MAXIMUM PURCHASE PAYMENTS
- You can purchase a Contract for $2,000 or more.
- You can also purchase a Contract in connection with certain types
of retirement plans, such as a Traditional or Roth IRA, a 403(b)
plan, a SIMPLE IRA (Savings Incentive Match Plans for Employees),
or a SEP (Simplified Employee Pension Plan), for $1,000 or more.
- You can make additional investments in your Contract at any time
before the Income Date. Each additional purchase payment must be
at least $100.
- You can also purchase a Contract and make additional payments
through automatic or scheduled installment payments, such as
pre-authorized checking account deductions, salary deductions or
electronic funds transfers. If you select our Automatic Investment
Plan, you can purchase a Contract with regular installment
payments of $50 or more. Each automatic installment payment must
be at least $50 and your total installment payments in the first
Contract Year must be at least $600.
10-DAY REVIEW PERIOD
You have 10 days to review your Contract after you receive it. This
10-day review period is called the free look period. The state where you live
may require us to give you a longer free look period.
If you are not satisfied with the Contract, you can cancel it during
the free look period. To cancel the Contract, you must return it to the
Touchstone Variable Annuity Service Center at P.O. Box 2850, Cincinnati, Ohio
45201-2850 within 10 days after you receive it. If you cancel the Contract, in
most cases we will refund the Contract Value to you. However, some state laws
may require us to refund your purchase payments.
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INVESTMENT OPTIONS
You decide how to allocate your purchase payments by selecting from the
following investment options.
1. SUB-ACCOUNTS
- Emerging Growth
- International Equity
- Income Opportunity
- Value Plus
- Growth & Income
- Balanced
- Bond
- Standby Income
2. FIXED ACCOUNT
ALLOCATION OF PURCHASE PAYMENTS
Your instructions are included in your application and shown on page 3
of your Contract. You can change your allocation instructions by contacting us
either by phone or in writing. When we receive a purchase payment from you, we
allocate it based on the most recent allocation instructions we have received
from you.
The following guidelines apply to the allocation of your purchase
payments:
- Allocate at least 5% of your initial purchase payment to each
investment option you choose.
- Use whole percentages. For example, you can allocate 33% or 34%
to an investment option, not 33 1/3%.
- Make sure your percentages total 100%.
Allocation Changes by Phone. You can change the allocation of your
future purchase payments over the phone by following these steps.
(1) Fill out either the telephone authorization part of the
application or a Telephone Authorization Form. You can get a
copy of either form by contacting the Touchstone Variable
Annuity Service Center. You must complete and return one of
these forms before you call to change your allocations over
the phone.
(2) Call the Touchstone Variable Annuity Service Center at
1-800-669-2796 (press 2) between 8:00 a.m. and 4:00 p.m.
Eastern Time.
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<PAGE> 18
(3) Give the representative the following information:
- Your Social Security number
- Your Contract number or other precise information that
identifies your Contract
- Your allocation instructions
Allocation Changes in Writing. You can also change the allocation of
your future purchase payments by writing to the Touchstone Variable Annuity
Service Center. Your written instructions must include the following
information:
- Your Contract number or other precise information that
identifies your Contract
- Your allocation instructions
You should review your selected investment options and allocations
periodically to determine if they are appropriate considering market conditions
and your financial objectives.
TRANSFERRING YOUR MONEY
You can transfer money from one investment option to another. You can
make transfers by phone or in writing.
The following guidelines apply to transfers other than dollar cost
averaging transfers:
- Each transfer must be at least $250.
- The allocation to each investment option must be at least 5% of
the total transfer amount.
- You can transfer money among the Sub-Accounts once every 30
days.
- You can transfer FROM the Fixed Account only once each Contract
Year-transferring up to 25% of your money in the Fixed Account.
- You can transfer TO the Fixed Account only once each Contract
Year-transferring an unlimited amount.
Transfers by Phone. You can transfer your money over the phone by
following these steps.
(1) Fill out either the telephone transfer authorization part of
the application or a Telephone Authorization Form. You can get
a copy of either form by contacting the Touchstone Variable
Annuity Service Center. You must complete and return one of
these forms before you call to change your allocations over
the phone.
(2) Call the Touchstone Variable Annuity Service Center at
1-800-669-2796 (press 2) between 8:00 a.m. and 4:00 p.m.
Eastern Time.
(3) Give the representative the following information:
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- Your Social Security number
- Your Contract number or other precise information that
identifies your Contract
- Your transfer instructions
Transfers in Writing. You can also transfer your money by writing to
the Touchstone Variable Annuity Service Center. Your written instructions must
include the following information:
- Your Contract number or other precise information that
identifies your Contract
- Your transfer instructions
THIRD PARTY AUTHORIZATION
You can authorize a third party to transfer money for you. To do so,
you must complete the appropriate authorization forms. Contact the Touchstone
Variable Annuity Service Center at 1-800-669-2796 (press 2) for additional
information.
TOUCHSTONE'S DOLLAR COST AVERAGING PROGRAM
Dollar cost averaging is a method of investing equal amounts of money
at regular intervals. Dollar cost averaging allows you to purchase more
Accumulation Units when prices are low and fewer when prices are high. Dollar
cost averaging can result in a lower average cost of investing over time. While
dollar cost averaging does not guarantee a profit or prevent a loss, you have a
higher likelihood to profit from this long-term investment method. For dollar
cost averaging to be effective, you should continue to invest during both market
ups and downs. You should also consider your financial ability to maintain a
consistent level of investment over time.
Touchstone's Dollar Cost Averaging Program allows you to transfer
amounts at regular intervals from the Standby Income Sub-Account or the Fixed
Account to other Sub-Accounts. You can make the following transfers:
- A specific dollar amount
- A specific percentage of your money in the Standby Income
Sub-Account or the Fixed Account
- Earnings in the Standby Income Sub-Account or the Fixed Account
You select the number and the frequency of your transfers in
Touchstone's Dollar Cost Averaging Program. We will transfer the money on the
anniversary of your Contract Date each month or each quarter.
The following guidelines apply to dollar cost averaging transfers:
- Your Contract Value must be at least $10,000.
- Dollar cost averaging transfers must continue for at least 12
months.
- Each transfer must be at least $200.
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- The allocation to each Sub-Account must be at least 5% of the
transfer amount.
To set up dollar cost averaging transfers, contact the Touchstone
Variable Annuity Service Center at 1-800-669-2796 (press 2) or P.O. Box 2850,
Cincinnati, Ohio 45201-2850.
Dollar cost averaging transfers will stop if we complete the number of
transfers you requested, you ask us to stop after using the program for at least
12 months, you do not have enough money in your accounts to complete the
transfer, or the program is discontinued. If we discontinue the program, you
will be allowed to complete the number of transfers you previously requested.
ACCESSING YOUR MONEY
Your Contract is designed to help you achieve your long-term investment
goals. However, there may be times when you need to access the money you have
invested in your Contract. You can access your money at any time during the
accumulation phase by making a partial withdrawal, by making systematic
withdrawals or by canceling your Contract.
If you withdraw money from your Contract or cancel your Contract, you
may have to pay a surrender charge. Surrender charges are explained on page
____.
PARTIAL WITHDRAWALS
To withdraw money from your Contract, send written instructions to the
Touchstone Variable Annuity Service Center at P.O. Box 2850, Cincinnati, Ohio
45201-2580. For help with a partial withdrawal, please call the Service Center
at 1-800-669-2796 (press 2).
The following guidelines apply to partial withdrawals:
- Include your Contract number or other information that
identifies your Contract and the amount to be withdrawn in
your instructions.
- Each withdrawal must be at least $250.
- If your Contract Value is reduced below $2,000 by the partial
withdrawal, we reserve the right to terminate your Contract by
paying you the Surrender Value.
SYSTEMATIC WITHDRAWAL PLAN
The Systematic Withdrawal Plan allows you to withdraw a specific dollar
amount from your Contract on a monthly, quarterly, semiannual or annual basis.
The minimum amount for each systematic withdrawal is $100. To set up systematic
withdrawals, contact the Touchstone Variable Annuity Service Center at
1-800-669-2796 (press 2) or at P.O. Box 2850, Cincinnati, Ohio 45201-2580.
You can discontinue your systematic withdrawals at any time by sending
written instructions to us.
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<PAGE> 21
CANCELING YOUR CONTRACT
You can cancel your Contract at any time during the accumulation phase.
When you cancel your Contract, we pay you the Surrender Value. This payment
terminates your Contract and our obligations under the Contract.
To cancel your Contract, send written instructions to the Touchstone
Variable Annuity Service Center at P.O. Box 2850, Cincinnati, Ohio 45201-2580.
Include your Contract number or other information that identifies your Contract
in your instructions. For assistance, please call the Service Center at
1-800-669-2796 (press 2).
The Surrender Value will equal the Contract Value, less any applicable
surrender charge, contract charge and premium taxes. Because investment
performance and applicable charges affect your Contract Value, the Surrender
Value may be less than the total of your purchase payments.
PENALTY TAXES
If you withdraw money from your Contract or cancel your Contract before
you or the Annuitant (as applicable) reach age 59 1/2, you generally will have
to pay a federal penalty tax. This tax is equal to 10% of the amount of the
payment you receive that is treated as taxable income. More information about
penalty taxes is located on page _____.
ACCESSING YOUR MONEY WITHOUT PAYING SURRENDER CHARGES
To provide you with flexible access to your money, we do not impose
surrender charges on the following transactions:
- PURCHASE PAYMENTS INVESTED FOR 7 YEARS
If a purchase payment has been invested for 7 years or more, you
will not pay a surrender charge when you withdraw that purchase
payment.
- FREE AMOUNTS
Each Contract Year you can withdraw any purchase payment that has
been invested for more than 1 year but less than 7 years without
paying a surrender charge if the total amount you withdraw that
year does not exceed 10% of your Contract Value. These amounts are
called free amounts.
- WITHDRAWAL OF EARNINGS
If the amount you withdraw includes any earnings on your Contract,
you will not pay a surrender charge on the earnings.
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<PAGE> 22
Generally, a withdrawal does not include earnings unless the
amount of the withdrawal is greater than the total of your
purchase payments. But a withdrawal under the Systematic
Withdrawal Plan normally will include earnings.
If a Contract is owned by a charitable remainder trust, the trust
may withdraw the difference between the Contract Value and the
total purchase payments in states where regulatory approval has
been received.
- MEDICAL CARE ACCESS
We waive the surrender charge on amounts withdrawn when you or the
Annuitant have been confined to a long-term care facility or
hospital for 30 days or more at the time of the withdrawal.
- DEATH BENEFITS
We do not impose a surrender charge on the death benefit that we
pay when the Annuitant dies.
- ANNUITY INCOME PAYMENTS
Generally, you will not pay any surrender charges on annuity
income payments if the payments begin after the 2nd anniversary of
your Contract Date and continue for at least 5 years.
If you decide to take a reduced, lump-sum payment instead of the
remaining annuity payments, you may have to pay a surrender
charge.
PROCESSING WITHDRAWALS
When we process your partial or systematic withdrawal, we withdraw
money from each of your investment options on a pro-rata basis. For example, in
a situation where no charges are applicable to the withdrawal, if you have 25%
of your money in the Income Opportunity Sub-Account and 75% of your money in the
Balanced Sub-Account and you want to withdraw $2,000, we will withdraw $500 from
the Income Opportunity Sub-Account (25% of $2,000) and $1,500 from the Balanced
Sub-Account (75% of $2,000).
If you want us to process your withdrawal on a different basis, such as
withdrawing all the money from one Sub-Account, you must provide specific
instructions in your withdrawal request.
We will generally send payments to you within 7 days of the date that
we process your request. We may delay calculating the amount of the payment from
a Sub-Account or sending a payment from a Sub-Account for any of the following
reasons:
- The New York Stock Exchange is closed on a day that it normally
would be open.
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<PAGE> 23
- Trading on the New York Stock Exchange is restricted.
- Because of an emergency, it is not reasonably practicable for
the Sub-Accounts to sell securities or to fairly determine the
value of their investments.
- The SEC permits us to postpone payments from the Sub-Accounts
for your protection.
As required by most states, we reserve the right to delay payments from
the Fixed Account for up to 6 months. We do not expect to delay payments from
the Fixed Account and we will notify you if there will be a delay.
CHARGES
ADMINISTRATIVE CHARGES
We incur administrative costs in setting up your Contract, maintaining
records of your Contract and sending you confirmations and statements about your
Contract. By paying a contract maintenance charge and a contract administration
charge, you reimburse us for the administrative costs we expect to incur.
<TABLE>
<CAPTION>
CONTRACT MAINTENANCE CHARGE CONTRACT ADMINISTRATION CHARGE
<S> <C> <C>
When Charged? - On the anniversary of your Contract Date - On each day the New York Stock
each year until annuity payments begin. Exchange is open for trading.
- The date we start annuity payments.
- The date you completely surrender your
Contract.
How Much Charged? - $35 each year during the first 10 years - The effective annual rate of the
of your Contract. charge is 0.15%.
- After the 10th anniversary of your Contract
Date, the lesser of $35 and 0.17% of your
Contract Value on each subsequent
anniversary of your Contract Date.
How Charged? - We reduce your Contract Value. The number - We deduct this charge from the
of Accumulation Units you own in each Accumulation Unit Value of each
Sub-Account is reduced and the value of Sub-Account. We do not impose this
your investment in the Fixed Account is charge on your money in the Fixed
reduced on a pro-rata basis. Account.
</TABLE>
If we receive appropriate governmental approvals, we may reduce or
eliminate the contract maintenance charge.
MORTALITY AND EXPENSE RISK CHARGES
We assume two risks with every Contract: a mortality risk and an
expense risk. We take a mortality risk that the Annuitant will live longer than
expected or we will pay a death benefit greater than your Contract Value. We
also take an expense risk that the administrative charges will not pay all the
administrative costs of your Contract.
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<PAGE> 24
You pay us to assume these risks by paying mortality and expense risk
charges. On each Valuation Date, we deduct the mortality and expense risk
charges from the Accumulation Unit Value of each Sub-Account. We do not impose
these charges on your money in the Fixed Account. The effective annual rate of
these charges is 1.20%, which includes 0.80% for assuming mortality risk and
0.40% for assuming expense risk. If we do not actually incur the risks
associated with these charges, we will make money from collecting these charges.
If surrender charges do not cover the distribution expenses of the
Contracts, we will pay those expenses from our general account, including
amounts derived from the expense risk charge.
CALCULATING THE SURRENDER CHARGE
To calculate the surrender charge, amounts will be withdrawn from the
following sources in the order listed:
- Free amounts
- Purchase payments that have been invested for more than 7 years
- Other purchase payments in the order in which we received them,
starting with the oldest purchase payment
- Earnings
Under the Systematic Withdrawal Plan or if a Contract is owned by a
charitable remainder trust amounts will be withdrawn first from earnings and
then in the order listed above. The IRS may treat the order of your withdrawals
in a different manner which may effect your taxation. Consult your tax advisor
for more information.
You do not pay a surrender charge on free amounts, purchase payments
that have been invested for more than 7 years or earnings.
The amount of the surrender charge is based on the number of years a
purchase payment has been invested in your Contract. The following table shows
how much the surrender charge will be when you withdraw a purchase payment.
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<PAGE> 25
<TABLE>
<CAPTION>
COMPLETED YEARS FROM DATE OF
PURCHASE PAYMENT SURRENDER CHARGE
<S> <C>
Less than 1 year 7% of the purchase payment
1 year but less than 2 years 7% of the purchase payment
2 years but less than 3 years 6% of the purchase payment
3 years but less than 4 years 5% of the purchase payment
4 years but less than 5 years 4% of the purchase payment
5 years but less than 6 years 2% of the purchase payment
6 years but less than 7 years 1% of the purchase payment
7 years or more None
</TABLE>
REDUCED SURRENDER CHARGES FOR CERTAIN CONTRACTS
Under certain circumstances, we can reduce or eliminate the surrender
charge when Contracts are sold to a trustee, to an employer, pursuant to a
retirement plan or otherwise sold to a group. We will consider several factors
before we reduce or eliminate any surrender charges. Some of those factors are
the group size, the total amount of the group's purchase payments, how the
group's purchase payments are made, the type of plan involved and our
distribution costs. However, we will not reduce or eliminate any surrender
charges if the reduction or elimination unfairly discriminates against any
person or is prohibited by state law.
PREMIUM TAXES
Certain states and government authorities charge a premium tax on your
purchase payments. The premium tax may be as much as 3.5% of your purchase
payments. These premium taxes are charged either when you make purchase payments
or when we begin annuity payments.
Currently, we pay all of the premium taxes charged by states and
government authorities. However, we may decide to stop paying the premium taxes
in the future. We would then deduct the amount of the premium taxes from your
Contract Value at one of the following times when:
- We pay the premium tax.
- You surrender or withdraw money from your Contract.
- The death benefit is paid.
- Annuity payments begin.
INFORMATION ABOUT THE INVESTMENT OPTIONS
THE SUB-ACCOUNTS AND THE FUNDS
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<PAGE> 26
Each Sub-Account invests in a corresponding Fund of Touchstone Variable
Series Trust (TVST). Touchstone Advisors is the investment advisor for each
Fund. This table contains information about the investment objective and
Sub-Advisor of each Fund.
<TABLE>
<CAPTION>
FUNDS INVESTMENT OBJECTIVE SUB-ADVISORS
<S> <C> <C>
Emerging Growth The Fund seeks to increase the value of its shares David L. Babson & Company, Inc.
as a primary goal and to earn income as a Westfield Capital Management
secondary goal. Company, Inc.
International Equity The Fund seeks to increase the value of its BEA Associates
shares over the long-term.
Income Opportunity The Fund seeks to achieve a high level of current Alliance Capital Management L.P.
income as its main goal. The Fund may also seek
to increase the value of its shares, if consistent
with its main goal.
Value Plus The Fund seeks to increase the value of its shares Fort Washington Investment
over the long-term. Advisors, Inc.
Growth & Income The Fund seeks to increase the value of its shares Scudder Kemper Investments, Inc.
over the long-term, while receiving dividend
income.
Balanced The Fund seeks to achieve an increase in value and OpCap Advisors, Inc.
current income.
Bond The Fund seeks to provide a high level of Fort Washington Investment
dividends and distributions. Advisors, Inc.
Standby Income The Fund seeks to provide a higher level of Fort Washington Investment
current income than a money market fund, while Advisors, Inc.
preventing large fluctuations in the value of the
Sub-Account's initial investment. The Fund does
not try to keep a constant $1.00 per share net
asset value.
</TABLE>
More complete information about each Fund, including information about
its expenses, is included in the TVST Prospectus that is contained in this
booklet. Please read the TVST Prospectus carefully before you purchase a
Contract.
CHANGES IN THE SUB-ACCOUNTS AND THE FUNDS
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<PAGE> 27
We may add, delete or combine Sub-Accounts. New Sub-Accounts will
invest in Funds we consider suitable. We may also substitute a new Fund or
similar investment option for the Fund in which a Sub-Account invests. We would
make a substitution to ensure the underlying Fund continues to be a suitable
investment. A substitution may be triggered by unsatisfactory investment
performance, a change in laws or regulations, a change in a Fund's investment
objectives or restrictions, a change in the availability of the Fund for
investment, or any other reason. Before any substitution, we will obtain any
required approvals, including approval from the SEC or from Contract owners.
THE FIXED ACCOUNT
At the time you allocate a purchase payment or transfer any of your
Contract Value to the Fixed Account, we assign an interest rate to that amount.
We will guarantee that rate of return for one year. At the end of each year, we
assign a new interest rate to that amount and its related earnings, which is
again guaranteed for at least one year. Different interest rates may apply to
different amounts in the Fixed Account depending upon the timing of the
allocation or transfer and the interest rates assigned each time. Although the
rate of return of the Fixed Account may change, it will not fluctuate based on
the results of the investments that we make for our general account.
We guarantee funds allocated or transferred to the Fixed Account will
earn an effective annual rate of at least 3%.
VALUATION OF YOUR INVESTMENTS
SUB-ACCOUNTS
<TABLE>
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
ACCUMULATION UNIT A unit of measure used to calculate a Contact owner's share
of a Sub-Account. Although it is not the same as a mutual
fund share, it is similar.
- -------------------------------------------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE The dollar value of an Accumulation Unit in a Sub-Account.
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
The value of your interest in a Sub-Account is measured in Accumulation
Units. An Accumulation Unit is an accounting unit of measure. It is similar to a
share of a mutual fund. The value of an Accumulation Unit varies from day to day
depending on the investment performance of the Fund in which the Sub-Account is
invested and the expenses of the Sub-Account.
The Accumulation Unit Value of each Sub-Account is calculated on each
day that the New York Stock Exchange is open for business (Valuation Date). The
Accumulation Unit Value of a Sub-Account on any Valuation Date is calculated by
dividing the value of the Sub-Account's net assets by the number of Accumulation
Units credited to the Sub-Account on the Valuation Date.
When you allocate purchase payments to a Sub-Account, your Contract is
credited with Accumulation Units. Other transactions, such as withdrawals,
exchanges, and payments of the
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<PAGE> 28
annual contract maintenance charge, will increase or decrease the number of
Accumulation Units credited to your Contract.
The number of Accumulation Units added to or subtracted from your
Contract is calculated by dividing the dollar amount of the transaction by the
Accumulation Unit Value for the Sub-Account at the close of trading on the
Valuation Date when we process the transaction. To calculate the Accumulation
Unit Value of a Sub-Account on any Valuation Date, we start with the
Accumulation Unit Value from the preceding Valuation Date and adjust it to
reflect the following items:
- The investment performance of the Sub-Account, which is based
on the investment performance of the corresponding Fund
- Any dividend or distributions paid by the corresponding Fund
- Any charges or credits for taxes that we determined were the
result of the investment operations of the Sub-Account
- The mortality and expense risk charge
- The contract administration charge
We reserve the right to change the number and value of the Accumulation
Units credited to your Contract so long as the change does not affect your
Contract Value or the benefits or other provisions of your Contract.
FIXED ACCOUNT
The value of the Fixed Account is calculated daily and reflects the
following transactions:
- Purchase payments allocated to the Fixed Account
- Withdrawals from the Fixed Account
- Transfers to and from the Fixed Account
- Interest credited to the Fixed Account
- Charges assessed against the Fixed Account, such as surrender
charges and contract maintenance charges
PERFORMANCE INFORMATION
We may include performance information for the Sub-Accounts in
advertisements, sales literature and reports to Contract owners. This
performance information will be based on historical performance. It is not
intended to predict the future performance of a Sub-Account.
STANDARDIZED PERFORMANCE INFORMATION
We usually advertise average annual total return. Average annual total
return represents the average compounded rate of return on a hypothetical
initial investment of $1,000. It is calculated by comparing the hypothetical
$1,000 investment in a Sub-Account to the hypothetical surrender value of the
investment at the end of a period. The periods that we
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<PAGE> 29
normally include are 1 year, 5 year and 10 year periods. If a Contract has not
been available for the complete period, we include the period for which it was
available.
Average annual total return reflects historical investment results and
expenses of the Sub-Account for a specific period. It also reflects any
surrender charge that you might pay if you surrendered your Contract at the end
of the period. It does not include any deductions for premium taxes.
NON-STANDARDIZED PERFORMANCE INFORMATION
We may use other performance information, such as cumulative total
return and total return for other periods of time. We may compare the
performance of a Sub-Account to the performance of other separate accounts or
investments as listed in rankings prepared by independent organizations that
monitor the performance of separate accounts and other investments. We may also
include evaluations of the Sub-Accounts published by nationally recognized
ranking services or by nationally recognized financial publications.
ANNUITY INCOME PAYMENT OPTIONS
ANNUITY PHASE
During the annuity phase, we will make periodic annuity income payments
based on the annuity income payment option you choose (1A, 1B, 2A, 2B) as
described below. In the Contract, we refer to annuity income payment options as
payout plans.
DETERMINING THE INCOME DATE
Annuity income payments start on a specific date called the Income
Date. The Income Date is shown on page 3 of your Contract. If you do not select
an Income Date, the Income Date will be based on the birthday of the Annuitant.
The Annuitant is a natural person selected by you whose life is used to
determine the duration and amount of any annuity payments.
Generally, the Income Date is the first anniversary of your Contract
Date on or after the Annuitant's 80th birthday. If your Contract has not been in
effect for 10 years on the Annuitant's 80th birthday, the Income Date will be
the 10th anniversary of your Contract Date.
You can change the Income Date by writing to us. We must receive this
notice on or before the scheduled Income Date. Once annuity income payments
begin, you cannot change the Income Date.
CHOOSING THE PAYEE
You choose the person or persons to receive the annuity income
payments. If you do not select someone, the Annuitant will automatically receive
the annuity income payments. You can change the person you selected at any time
by writing to us. If the person you select to receive
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<PAGE> 30
annuity income payments dies, you will receive the annuity income payments
unless you select another payee.
DETERMINING THE PAYMENT AMOUNT
Annuity income payment amounts are based on the Surrender Value of your
Contract on the Income Date and the payment option you choose.
Under all payment plans, we guarantee that you will earn interest at a
minimum rate of 3% each year.
CHOOSING THE FREQUENCY
Generally, we make annuity income payments monthly. You can request
annuity income payments on a quarterly, semiannual, or annual basis. If the
Surrender Value of your Contract is less than $1,000, we make one annuity income
payment in an amount equal to the Surrender Value. If each periodic payment will
be less than $50, we will change the frequency of the payments to increase the
amount of each periodic payment to at least $50.
CHOOSING THE PAYMENT OPTION
You can select one of the four annuity income payment options described
below at any time before the Income Date. Some states may limit the availability
of payment options. You can change the payment option you selected by writing to
us. We must receive this notice on or before the scheduled Income Date. Once
annuity income payments begin, you cannot change your payment option.
If you do not elect an annuity payment option, Life Income Option 2A
(monthly payments guaranteed for 10 years) will apply.
OVERVIEW OF ANNUITY INCOME PAYMENT OPTIONS
<TABLE>
<CAPTION>
- --------------------------------------- -----------------------------------------------------------------------------
NAME OVERVIEW
- --------------------------------------- -----------------------------------------------------------------------------
<S> <C>
INSTALLMENT INCOME OPTION 1A Fixed Period - you select the number of years.
- --------------------------------------- -----------------------------------------------------------------------------
INSTALLMENT INCOME OPTION 1B Fixed Amount - you select the amount of the monthly payment.
- --------------------------------------- -----------------------------------------------------------------------------
LIFE INCOME OPTION 2A One Life - we make payments as long as the Annuitant lives.
- --------------------------------------- -----------------------------------------------------------------------------
LIFE INCOME OPTION 2B Joint and Survivor - we make payments as long as either the
Annuitant or another designated person lives.
- --------------------------------------- -----------------------------------------------------------------------------
</TABLE>
ANNUITY INCOME PAYMENT OPTIONS
<TABLE>
- ---------------------- ---------------------------------------------------------------------------------------------
NAME DESCRIPTION
- ---------------------- ---------------------------------------------------------------------------------------------
<S> <C>
</TABLE>
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<PAGE> 31
<TABLE>
<CAPTION>
- ---------------------- ---------------------------------------------------------------------------------------------
NAME DESCRIPTION
- ---------------------- ---------------------------------------------------------------------------------------------
<S> <C>
INSTALLMENT FIXED PERIOD
INCOME
OPTION 1A MONTHLY PAYMENT AMOUNT: Based on the Surrender Value of your Contract and the
number of years in the payment period. Your monthly payments will remain the
same throughout the payment period.
PAYMENT PERIOD: You select the number of years, but no more than 30.
SPECIAL RULE FOR QUALIFIED CONTRACT: Payment period may not extend beyond the life
expectancy of the Annuitant.
OPTION TO REQUEST LUMP SUM PAYMENT: Available at any time.
- ---------------------- ---------------------------------------------------------------------------------------------
INSTALLMENT FIXED AMOUNT
INCOME
OPTION 1B MONTHLY PAYMENT AMOUNT: You select the amount, which must be at least $5 for
each $1,000 of Surrender Value. For example, if your Surrender Value is $60,000,
the minimum monthly payment amount is $300 ($5 x $60). Your monthly payments
will remain the same throughout the payment period.
PAYMENT PERIOD: Payments are made until the entire amount, including interest, is
paid.
SPECIAL RULE FOR QUALIFIED CONTRACT: Payment period may not extend beyond the life
expectancy of the Annuitant.
OPTION TO REQUEST LUMP SUM PAYMENT: Available at any time.
- ---------------------- ---------------------------------------------------------------------------------------------
LIFE INCOME ONE LIFE
OPTION 2A
MONTHLY PAYMENT AMOUNT: Based on the Surrender Value of your Contract, the age
and sex of the Annuitant on the date of the first payment, and the number of years
chosen for guaranteed payments. Your monthly payments will remain the same
throughout the payment period.
PAYMENT PERIOD: You select 10 or 20 years as the guaranteed payment period. We
make payments for as long as the Annuitant lives even if the Annuitant lives longer
than the selected period. For example, if you select a 10-year guaranteed payment
period and the Annuitant lives for 12 years, we make payments for 12 years.
SPECIAL RULE FOR QUALIFIED CONTRACT: Payment period may not extend beyond the life
expectancy of the Annuitant or the joint life expectancies of the Annuitants.
OPTION TO REQUEST LUMP SUM PAYMENT: Not available after the first payment is made.
- ---------------------- ---------------------------------------------------------------------------------------------
</TABLE>
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<PAGE> 32
<TABLE>
<CAPTION>
- ---------------------- ---------------------------------------------------------------------------------------------
NAME DESCRIPTION
- ---------------------- ---------------------------------------------------------------------------------------------
<S> <C>
LIFE INCOME JOINT AND SURVIVOR
OPTION 2B
MONTHLY PAYMENT AMOUNT: Based on the Surrender Value of your Contract and the
age and sex of the Annuitant and another designated person on the date of the first
payment. Your monthly payments will remain the same throughout the payment period.
PAYMENT PERIOD: Based on the lifetimes of the Annuitant and another designated
person; payments continue as long as either person is living. If either person dies
before the first payment, we make annuity payments during the survivor's lifetime
under Life Income Option 2A guaranteed for 10 years.
SPECIAL RULE FOR QUALIFIED CONTRACT: Payment period may not extend beyond the life
expectancy of the Annuitant or the joint life expectancies of the Annuitants.
OPTION TO REQUEST LUMP SUM PAYMENT: Not available after the first payment is made.
- ---------------------- ---------------------------------------------------------------------------------------------
</TABLE>
GUARANTEED DEATH BENEFIT
If the Annuitant dies before the Income Date, we will pay a guaranteed
death benefit instead of annuity payments. We do not deduct a surrender charge
from the death benefit payment.
You select one or more person(s) who will receive this death benefit.
These people are called beneficiaries. You can change your beneficiaries at any
time by writing to us.
To determine the death benefit amount, we must receive proof of death
of the Annuitant and payment instructions for the beneficiary. If we do not
receive payment instructions for the beneficiary within 60 days of receipt of
the proof of death, we may pay the beneficiary in one lump sum.
Based upon the date we receive the proof of death and payment
instructions, we calculate the amount of the death benefit according to the
following table.
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------
A. ANNUITANT DIES BEFORE ANNUITY PAYMENTS BEGIN, BEFORE THE FIRST DAY OF THE CALENDAR MONTH AFTER THE
ANNUITANT'S 80TH BIRTHDAY, AND
- ----------------------------------------------------------- ------------------------------------------------------------
BEFORE THE 7TH ANNIVERSARY OF THE CONTRACT DATE ON OR AFTER THE 7TH ANNIVERSARY OF THE CONTRACT DATE
- ----------------------------------------------------------- ------------------------------------------------------------
<S> <C>
The death benefit amount will equal the greater of The death benefit amount will equal the greatest of the
the following 2 amounts: following 3 amounts:
- - The Contract Value on the date we receive - The Contract Value on the date we receive proof
proof of death of the Annuitant and payment of death of the Annuitant and payment
instructions for the beneficiary instructions the beneficiary
- - The sum of all purchase payments minus any - The sum of all purchase payments minus any
amounts withdrawn, including any surrender amounts withdrawn, including any surrender
charges on the withdrawals charges on the withdrawals
- The Contract Value on the most recent septennial
- ----------------------------------------------------------- ------------------------------------------------------------
</TABLE>
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<PAGE> 33
<TABLE>
- ----------------------------------------------------------- ------------------------------------------------------------
<S> <C>
anniversary Contract Date plus any purchase
payments made since that anniversary minus any
amounts withdrawn since that anniversary,
including any surrender charges on the
withdrawals
A septennial anniversary occurs every 7 years. For
example, the 7th, 14th, 21st and 28th anniversaries of the
Contract Date are each a septennial anniversary.
- ------------------------------------------------------------------------------------------------------------------------
B. ANNUITANT DIES BEFORE ANNUITY PAYMENTS BEGIN BUT ON OR AFTER THE FIRST DAY OF THE CALENDAR MONTH
AFTER THE ANNUITANT'S 80TH BIRTHDAY.
- ------------------------------------------------------------------------------------------------------------------------
The death benefit amount will equal the Contract Value on the day we receive proof of death of the
Annuitant and payment instructions for the beneficiary.
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
If an Annuitant dies after annuity income payments begin, any remaining
benefits will be paid based on the annuity income payment option in effect for
the Contract.
WSLAC AND SEPARATE ACCOUNT 1
WSLAC
Western-Southern Life Assurance Company (WSLAC) is a stock life
insurance company organized under the laws of the State of Ohio on December 1,
1980. It is a wholly-owned subsidiary of The Western and Southern Life Insurance
Company, a mutual life insurance company originally organized under the laws of
the State of Ohio on February 23, 1888. Both companies issue insurance and
annuity contracts and are located at 400 Broadway, Cincinnati, Ohio 45202.
Investments allocated to the Fixed Account are held in WSLAC's general
account along with WSLAC's other assets. The interests of the Fixed Account have
not been registered under the Securities Act of 1933 and WSLAC's general account
has not been registered as an investment company under the Investment Company
Act of 1940. As a result, the staff of the SEC has not reviewed the information
in this Prospectus about the Fixed Account.
SEPARATE ACCOUNT 1
WSLAC established Separate Account 1 (SA1) under Ohio law on July 27,
1992. SA1 supports the Contracts and certain other variable annuity contracts
that it issues. SA1 is registered with the SEC as a unit investment trust. We
may operate SA1 as a management investment company or any other form permitted
by law. We may also deregister SA1 if registration with the SEC is no longer
required.
SA1 is currently divided into 8 Sub-Accounts: Emerging Growth,
International Equity, Income Opportunity, Value Plus, Growth & Income, Balanced,
Bond and Standby Income. SA1 holds the investments allocated to the Sub-Accounts
by the owners of the Contracts. It also holds assets for the benefit of owners
of certain other variable annuity contracts that it issues. SA1 invests the
assets of each Sub-Account in a Fund of the Touchstone Variable Series Trust
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<PAGE> 34
(TVST). The investment objective of a Sub-Account and the Fund in which it
invests are identical.
WSLAC owns SA1's assets but it separates SA1's assets from its general
account assets and the assets of its other separate accounts. Liabilities from
any other businesses conducted by WSLAC will not be charged to SA1's assets. We
hold SA1's assets exclusively for the benefit of owners and beneficiaries of the
Contracts and certain other variable annuity contracts issued by SA1. WSLAC is
obligated to pay all benefits provided under the Contracts.
The income, capital gains and capital losses of each Sub-Account are
credited to or charged against the assets of that Sub-Account without regard to
the income, capital gains or capital losses of any other Sub-Account or WSLAC.
SERVICE PROVIDERS
Touchstone Advisors, Inc. is the investment advisor for each Fund.
Subject to the review and approval of the Board of Trustees of TVST, it selects
the Sub-Advisors and regularly reviews the investment strategies of each
Sub-Advisor and the performance of each Fund. Its address is 311 Pike Street,
Cincinnati, Ohio 45202.
Investors Bank and Trust Company provides administrative and fund
accounting services to TVST. Its address is 200 Clarendon Street, Boston,
Massachusetts 02116.
Touchstone Securities, Inc. is the distributor of the Contracts. Its
principal business address is 311 Pike Street, Cincinnati, Ohio 45202.
Touchstone Securities is a wholly-owned subsidiary of IFS Financial Services,
Inc., a wholly-owned subsidiary of WSLAC.
Touchstone Securities pays sales commissions to persons or entities
that sell the Contracts. These persons are called dealers. Sales commissions may
be calculated as a percentage of the purchase payments received for a Contract
or a percentage of the Contact Value (sometimes called a trail commission).
Sales commissions may also be based on a dealer's total sales and other
performance factors (sometimes called production bonuses). Touchstone Securities
may also pay dealers for other services not directly related to Contract sales.
VOTING RIGHTS
Because each Sub-Account invests in a corresponding Fund of TVST, WSLAC
is entitled to vote at any meeting of the Fund's shareholders. WSLAC, on behalf
of SA1, votes the shares of a Fund that are held by a Sub-Account according to
the instructions of the owners of Contracts who have invested in that
Sub-Account.
If you have money in a Sub-Account on the record date for a meeting of
the shareholders of the corresponding Fund, we will ask you for voting
instructions. Your voting instructions will apply to a specific number of Fund
shares. We will calculate this number by determining the percentage of a
Sub-Account that you own and applying this percentage to the total number of
Fund shares that the Sub-Account owns.
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<PAGE> 35
We will mail materials to you at least 14 days before the shareholder
meeting so you can provide your voting instructions to us. If we do not receive
voting instructions from you, we will still vote the shares for which you are
entitled to provide instructions. We will vote these shares in the same
proportion as the voting instructions received by Contract owners who provide
instructions. If WSLAC itself is entitled to vote at the shareholder meeting, it
will vote its shares in the same manner.
We may not ask Contract owners for voting instructions if the
applicable rules and regulations change and permit us to vote the shares of a
Fund. We may also change the manner in which we calculate the number of shares
for which you can provide voting instructions if the applicable rules and
regulations change.
We may disregard the voting instructions of Contract owners under
certain circumstances and state insurance regulators may require us to disregard
these instructions under certain circumstances. If we disregard the voting
instructions we receive, we will include a summary of our actions in our next
report to you.
OTHER INFORMATION ABOUT YOUR CONTRACT
CONFIRMATIONS AND STATEMENTS
We will send you a confirmation of each purchase payment and other
transactions, such as transfers and partial withdrawals. We will also send you a
statement each year showing the value of your investment in the Sub-Accounts and
Fixed Account.
If you have invested money in a Sub-Account, you will also receive
semi-annual reports for SA1. These semi-annual reports will include a list of
portfolio securities held by the underlying Fund.
PROCESSING GUIDELINES
We use certain guidelines to determine when we will process your
Contract application and other instructions. These processing guidelines
determine your Contract Date and the effective date of instructions that you
send to us. The effective date depends upon the time of day we receive your
application or your instructions, whether the New York Stock Exchange is open at
that time and whether your applications and instructions are in good order.
If we receive an incomplete application or incomplete instructions from
you, we will contact you for more information. If we have not received all the
application information that we need within 5 days of the day we received your
application, we will return your initial purchase payment to you unless you tell
us not to return it.
If you are the sole owner of your Contract, you must sign your Contract
application and other instructions. If you and another person are joint owners
of your Contract, you and your joint owner must both sign your Contract
application and other instructions.
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SECURITY PROCEDURES
We have established security procedures, such as recording telephone
calls. In the future, we may also require a personal identification number
(PIN). We will not be liable for losses due to unauthorized or fraudulent
telephone instructions if we follow reasonable security procedures and
reasonably believe the instructions are genuine.
CANCELLATION OF YOUR CONTRACT
We may cancel your Contract if you have not made a purchase payment for
2 years, the total of your purchase payments less any partial withdrawals is
less than $2,000 or your Contract Value is less than $2,000.
We will send you a notice before cancellation. You will have 14 days
from the date of the notice to make an additional purchase payment and increase
your total purchase payments to $2,000 or your Contract Value to $2,000. If you
make this payment, we will not cancel your Contract. If you do not make this
payment, we will cancel your Contract and pay you the Surrender Value.
FINANCIAL STATEMENTS AND ADDITIONAL CONTRACT INFORMATION
Financial statements of WSLAC and SA1 are included in the Statement of
Additional Information along with additional information about the Contracts.
The table of contents of the Statement of Additional Information is included
below. For a free copy, call the Touchstone Variable Annuity Service Center at
1-800-669-2796 (press 2).
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FEDERAL INCOME TAX INFORMATION
The following discussion summarizes the impact of certain federal
income tax laws on contributions to, earnings of and distributions from a
Contract. It is based on our understanding of these laws as they are currently
in effect and interpreted. It is not tax advice. YOU SHOULD CONSULT YOUR OWN TAX
ADVISOR BEFORE YOU PURCHASE A CONTRACT. Because this is a summary, it does not
contain all the information that may be important to you.
The impact of federal income taxes on your investment in a Contract
depends, among other things, on the following factors:
- WSLAC's tax status
- The tax status of the Contract
- Your tax status
- The tax status of your beneficiary
- The tax status of the person you select to receive annuity
payments
Your investment may also be affected by changes that occur in the
federal income tax laws and by other tax laws, such as state or local income tax
laws, federal estate and gift tax laws and local estate and other similar laws.
The effect of such other laws on your investment in a Contract are not discussed
in this summary.
The following discussion assumes "you" are the owner of a Contract.
I. TAX STATUS OF WSLAC
WSLAC is taxed as a life insurance company. Because the operations of
the SA1 are part of WSLAC, WSLAC is responsible for any federal income taxes
related to the income of the SA1 and its Sub-Accounts. You are responsible for
all taxes related to your investment in a Contract.
II. TAX STATUS OF THE CONTRACT
We believe that your Contract will be treated as an "annuity contract"
under the Internal Revenue Code (Code) and thus will provide the federal income
tax consequences discussed in this summary. We do not, however, guarantee the
tax status of any Contract. You bear the complete risk that your Contract may
not be treated as an "annuity contract" under the Code. A more detailed
discussion of various matters that might affect your Contract's status as an
"annuity contract" is included in the Statement of Additional Information.
If your Contract is not treated as an "annuity contract," the earnings
allocable to your investment in the Contract will be included in your income for
federal income tax purposes on a current basis, even if you have not yet
received payments from the Contract.
The discussions below entitled "Tax Treatment of Non-Qualified
Contracts" and "Tax Treatment of Qualified Contracts" will apply only if your
Contract is treated as an "annuity contract" under the Code.
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<PAGE> 38
III. TAX TREATMENT OF NON-QUALIFIED CONTRACTS
The information in this section of the Prospectus relates to Contracts
that are not purchased in connection with a retirement plan or program which
qualifies under Section 401, 403(b), 408, 408A or 457 of the Code. In this
section of the Prospectus, these Contracts will be called "Non-Qualified
Contracts."
A Non-Qualified Contract is intended to be a tax-deferred investment.
This means that, if the Contract qualifies as an "annuity contract" under the
Code, you will not have to include in income for federal income tax purposes the
investment earnings of your Non-Qualified Contract until you make a withdrawal
from the Contract, surrender it or start receiving annuity payments from it.
When you make a withdrawal from your Non-Qualified Contract, surrender it or
receive an annuity payment from it, you will have to include in income for
federal income tax purposes the portion of the payment that reflects investment
earnings (but no other part of the payment).
Different rules may apply to an owner of a Non-Qualified Contract that
is not a natural person, such as a corporation or trust. If the owner of a
Non-Qualified Contract is not a natural person, you should consult a tax advisor
for more information about these rules.
The following discussion in this section (III.A. through III.G.)
explains how the general principles of tax-deferred investing apply to a
Non-Qualified Contract when the owner of such Contract is a natural person. The
discussion assumes at all times that your Non-Qualified Contract will be treated
as an "annuity contract" under the Code.
A. TAX TREATMENT OF PURCHASE PAYMENTS
Generally, any purchase payments that you invest in your Non-Qualified
Contract will not be deductible in determining your federal income tax.
B. TAX TREATMENT OF WITHDRAWALS, SURRENDERS AND DISTRIBUTIONS
You will generally have to include in income for federal income tax
purposes the portion of any payment from your Non-Qualified Contract that
exceeds the portion of the cost basis (or principal) of the Contract which is
allocable to such payment. The cost basis of your Non-Qualified Contract is
generally the sum of your purchase payments for the Contract. The difference
between the cost basis and the value of your Non-Qualified Contract represents
the increase in the value of the Contract. The taxable portion of a payment from
your Non-Qualified Contract is generally taxed at your marginal income tax rate.
1. TAX TREATMENT OF PARTIAL WITHDRAWALS AND SURRENDERS
PARTIAL WITHDRAWALS. A partial withdrawal refers to a withdrawal from
your Non-Qualified Contract that is less than its total value and is not
paid in the form of an annuity. Usually, a partial withdrawal of the value of
your Non-Qualified Contract will be treated
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as coming first from earnings (which represent the increase in the value of the
Contract). This portion of the withdrawal will be included in your income for
federal income tax purposes.
After the earnings portion is exhausted, the remainder of the partial
withdrawal will be treated as coming from your principal in the Contract
(generally the sum of the purchase payments). This portion of the withdrawal
will not be included in your income for federal income tax purposes.
If your Non-Qualified Contract contains investments made prior to
August 14, 1982, a partial withdrawal from the Contract will be treated, to the
extent it is allocable to such pre-August 14, 1982 investments, as coming first
from principal and then, only after the principal portion is exhausted, from
earnings.
SURRENDERS. If you surrender your Non-Qualified Contract and receive a
lump sum payment of its entire value, the portion of the payment that exceeds
your then remaining cost basis in the Contract will be included in your income
for federal income tax purposes. You will not include in income for federal
income tax purposes the part of the payment that is equal to such cost basis.
2. TAX TREATMENT OF ANNUITY PAYMENTS
If you receive annuity payments from your Non-Qualified Contract, a
fixed portion of each payment is generally excludable from income for federal
income tax purposes as a tax-free recovery of your cost basis in the Contract
and the balance is included in income for such purposes.
The portion of the payment that is excludable from income is determined
under detailed rules provided in the Code (which in general terms determine such
excludable amount by dividing your cost basis in the Contract at the time the
annuity payments begin by the expected return under such Contract).
If the annuity payments continue after your cost basis has been
recovered, such additional payments will generally be included in full in income
for federal income tax purposes.
C. PENALTY TAX ON DISTRIBUTIONS
Generally, a penalty equal to 10% of the amount of any payment that is
includable in your income for federal income tax purposes will apply to any
distribution you receive from a Non-Qualified Contract in addition to ordinary
income tax.
This 10% penalty will not apply, however, if the distribution meets
certain conditions. Some of the distributions that are excepted from the 10%
penalty are listed below:
- A distribution that is made on or after the date you reach age 59
1/2
- A distribution that is made on or after your death
- A distribution that is made when you are totally disabled
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- A distribution that is made as part of a series of substantially
equal periodic payments which are made at least annually for your
life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your joint Annuitant under the Contract
- A part of a distribution that is attributable to your investment
in the Contract prior to August 14, 1982
- A distribution that is paid as an immediate annuity (within the
meaning of Section 72(u)(4) of the Code)
D. TAX TREATMENT OF ASSIGNMENTS
An assignment or pledge by you of your Non-Qualified Contract may be
treated as if it were a payment to you of all or part of the value of the
Contract and therefore may be a taxable event. You should consult your own tax
advisor before you assign or pledge your Non-Qualified Contract.
E. REQUIRED DISTRIBUTIONS
To qualify as an "annuity contract" under the Code, your Non-Qualified
Contract must meet certain distributions requirements in the event you die.
Generally, if you die before annuity payments begin, the amounts
accumulated under your Non-Qualified Contract either must be distributed within
5 years of your death or must begin to be paid within one year of your death
under a method that will pay the entire value of the Contract over the life (or
life expectancy) of your beneficiary under the Contract.
Special rules apply, however, if your beneficiary under the Contract is
your surviving spouse. If your spouse is your beneficiary under the Contract,
these rules involving required distributions in the event of death will be
applied as if your surviving spouse had been the original owner of the Contract.
If you die after annuity payments have begun, payments generally must
continue at least as rapidly as under the method in effect at your death (unless
such method provides that payments stop at your death).
F. WITHHOLDING
Payments received from your Non-Qualified Contract are generally
subject to federal income tax withholding, unless you elect not to have taxes
withheld and you notify us that you are making this election.
G. MULTIPLE NON-QUALIFIED CONTRACTS
All Non-Qualified Contracts that are issued to you within a calendar
year period are generally treated as one Contract for purposes of determining
the tax consequences of any distribution, and this may cause adverse or
unanticipated tax consequences. As a result, you
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<PAGE> 41
should consult a tax advisor before purchasing more than one Non-Qualified
Contract in any calendar year period in order to discuss the effect of such
multiple purchases.
IV. TAX TREATMENT OF QUALIFIED CONTRACTS
The information in this section of the Prospectus relates to Contracts
that are purchased in connection with certain retirement plans. In this section
of the Prospectus, these retirement plans will be called "Qualified Plans" and
Contracts purchased in connection with Qualified Plans will be called "Qualified
Contracts."
A Qualified Contract is intended to be a tax-deferred investment. This
means that, if the Qualified Contract and the Qualified Plan under which it was
purchased meet certain applicable rules of the Code, you will not have to
include in income for federal income tax purposes the investment earnings of
your Qualified Contract until you make a withdrawal from the Contract, surrender
it or start receiving annuity payments from it.
When you make a withdrawal from your Qualified Contract, surrender it
or receive an annuity payment from it, you will generally have to include in
income for federal income tax purposes the entire amount of the payment (except
to the extent it reflects your own "after-tax" contributions to the Contract or
any other cost basis you may have under the Contract).
A. TYPES OF QUALIFIED CONTRACTS
The Qualified Contracts are designed to be suitable for use with the
following types of Qualified Plans:
- Traditional IRAs (individual retirement annuities under Section
408 of the Code)
- Roth IRAs (individual retirement annuities under Section 408A of
the Code)
- Section 401 Plans (plans qualified under Section 401(a) of the
Code, such as profit sharing plans, including so-called 401(k)
plans and money purchase pension plans)
- Section 403(b) Plans (tax-sheltered annuities under Section 403(b)
of the Code)
- Section 457 Deferred Compensation Plans (deferred compensation
plans under Section 457 of the Code)
- SEPs (Simplified Employee Pension Plans under Section 408(k) of
the Code)
- Simple IRAs (Savings Incentive Match Plans for Employees under
Section 408(p) of the Code)
- Texas ORP (State of Texas Optional Retirement Program plans)
Because of the minimum purchase payment requirements, Qualified
Contracts may not be appropriate for some retirement plans.
B. LIMITATIONS IMPOSED BY THE CODE OR THE QUALIFIED PLAN
In most cases, the Code places limitations and restrictions on how a
Qualified Plan can be designed and operated. These limitations and restrictions
relate to various issues, including:
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- Amounts of allowable contributions
- Form, manner and timing of distributions
- Vesting and nonforfeitability of interests
- Nondiscrimination in eligibility, participation, contributions and
benefits
- Tax treatment of distributions, withdrawals and surrenders
- Withdrawal from the plan, such as while the plan participant is
still employed by the employer of the plan
- Receipt and taxation of loans
A Qualified Contract that is issued under or in connection with a
Qualified Plan is subject to the terms and conditions of the Qualified Plan. If
the information in the Qualified Plan documents differs from the information in
the Qualified Contract, you should rely on the information in the Qualified
Plan.
C. TAX CONSEQUENCES OF PARTICIPATING IN A QUALIFIED PLAN
The tax consequences of participating in a Qualified Plan vary with the
type of plan and the terms and conditions of the plan. Various penalty and
excise taxes may apply to contributions to or distributions from a Qualified
Contract if the contributions or distributions violate the limitations of the
Qualified Plan or the Code. Certain restrictions and penalties may apply to
withdrawals and surrenders from a Qualified Contract.
THE TAX RULES REGARDING QUALIFIED PLANS ARE COMPLEX, CHANGE FREQUENTLY
AND WILL HAVE DIFFERENT APPLICATIONS DEPENDING ON INDIVIDUAL FACTS AND
CIRCUMSTANCES. YOU SHOULD CONSULT YOUR OWN TAX ADVISORS BEFORE YOU PURCHASE A
QUALIFIED CONTRACT.
TRADITIONAL AND ROTH IRAS. To help you understand the tax consequences
of purchasing a Qualified Contract in connection with a Traditional IRA or a
Roth IRA, we will provide you with an IRA Disclosure Statement.
SECTION 401 PLANS AND SECTION 403(B) PLANS. To help you understand the
tax consequences of purchasing a Qualified Contract in connection with a Section
401 Plan or a Section 403(b) Plan, we have included a supplement in this
Prospectus as to such Plans. The supplement summarizes certain federal income
tax laws and is based on our understanding of these laws. Because the supplement
is a summary, it does not contain all the information that may be important to
you. The supplement is for general informational purposes only.
TEXAS OPTIONAL RETIREMENT PROGRAM. To help you understand the tax
consequences of purchasing a Qualified Contract in connection with the Texas
Optional Retirement Program, we have included a supplement in this Prospectus as
to this Program. The supplement summarizes certain state and federal income tax
laws and is based on our understanding of these laws. Because the supplement is
a summary, it does not contain all the information that may be important to you.
The supplement is for general informational purposes only.
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OTHER QUALIFIED PLANS. You should contact your own tax advisor for more
information about the tax consequences of investing in a Qualified Contract in
connection with a Section 457 Deferred Compensation Plan, a SEP or a Simple IRA.
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SUPPLEMENT A
ACCUMULATION UNIT VALUES
<TABLE>
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
ACCUMULATION UNIT A unit of measure used to calculate a Contact owner's share of a
Sub-Account. Although it is not the same as a mutual fund share, it is
similar.
- -------------------------------------------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE The dollar value of an Accumulation Unit in a Sub-Account.
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
The Accumulation Unit Values shown in the table below are for an
Accumulation Unit outstanding throughout the periods. An explanation of how
Accumulation Unit Value is calculated is located on page ___ in this Prospectus.
<TABLE>
<CAPTION>
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Years Ended December 31 Unit Value at Beginning of Unit Value at End of Year Number of Units at End of
Year Year
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
<S> <C> <C> <C>
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Emerging Growth
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1995* 10.000000 11.687169 14,972
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1996 11.687169 12.817847 236,639
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1997 12.817847 16.905544 921,086
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
International Equity
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1995* 10.000000 11.230830 15,645
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1996 11.230830 12.350885 252,346
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1997 12.350885 13.984724 939,980
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Income Opportunity
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1995* 10.000000 12.515143 20,015
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1996 12.515143 15.727477 334,062
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1997 15.727477 17.401250 1,296,326
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Growth & Income
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1995* 10.000000 12.490239 28,701
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1996 12.490239 14.161478 451,141
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1997 14.161478 16.749955 1,858,720
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Balanced
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1995* 10.000000 11.962842 28,416
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1996 11.962842 13.782738 266,916
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1997 13.782738 16.130170 1,153,567
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Bond
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1995* 10.000000 11.262524 28,863
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1996 11.262524 11.395131 235,025
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1997 11.395131 12.137441 936,431
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Standby Income
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1995* 10.000000 10.317194 42,991
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1996 10.317194 10.711418 306,751
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
1997 10.711418 11.140654 1,033,781
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
</TABLE>
*Operations began on February 23, 1995
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SUPPLEMENT B
FEDERAL INCOME TAX INFORMATION
SECTION 401 PLANS AND SECTION 403(b) PLANS
Section 401(a) of the Code permits sole proprietorships, partnerships,
corporations and certain other organizations operating businesses to establish
various types of Qualified Plans (called Section 401 Plans in this Supplement)
for their employees (and, if applicable, those self-employed persons working in
the businesses). A Qualified Contract may be purchased to provide benefits to a
participant in a Section 401 Plan.
Section 403(b) of the Code permits public schools and certain
charitable, educational and scientific organizations described in Section
501(c)(3) of the Code to purchase Qualified Contracts as "tax-sheltered
annuities" (called Section 403(b) Plans in this Supplement) for their employees.
The Code places limitations and restrictions on all Section 401 and
Section 403(b) Plans, but the specific rules set forth in the applicable plan
will also affect how the plan works. Because the provisions of Section 401 Plans
and Section 403(b) Plans vary from plan to plan, you should contact your plan
administrator for additional information. If the information in the Qualified
Plan documents differs from the information in the Qualified Contract or in this
Supplement, you should rely on the information in the Qualified Plan documents.
This discussion explains certain federal income tax rules applicable to
a Qualified Contract purchased in connection with a Section 401 Plan or a
Section 403(b) Plan. This discussion assumes at all times that the Contract
qualifies as an "annuity contract" and a "Qualified Contract," and that the plan
to which it relates qualifies as a "Qualified Plan" under the Code.
A. TAX TREATMENT OF CONTRIBUTIONS
Other than "after-tax" contributions made by you to a Section 401 Plan,
contributions to a Section 401 Plan or a Section 403(b) Plan generally are not
included in your income for federal income tax purposes until the contributions
are distributed from the plan, provided such contributions are not in excess of
any benefit, contribution or nondiscrimination limits that apply to the plan.
B. TAX TREATMENT OF DISTRIBUTIONS
Any distributions from Qualified Contracts purchased in connection with
Section 401 Plans or Section 403(b) Plans generally are included in income for
federal income tax purposes as ordinary income, except to the extent the
distributions are allocable to your after-tax contributions.
SPECIAL TAX TREATMENT FOR LUMP SUM DISTRIBUTIONS FROM A SECTION 401
PLAN. If you receive (or your beneficiary receives) an amount from a Qualified
Contract as part of a
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distribution from a Section 401 Plan and the distribution qualifies as a lump
sum distribution under the Code, the portion of the distribution that is
included in income may be eligible for special tax treatment. The plan
administrator should provide you with information about the tax treatment of a
lump sum distribution at the time you receive such a distribution.
SPECIAL RULES FOR DISTRIBUTIONS THAT ARE ROLLED OVER. In addition,
special rules apply to a distribution from a Qualified Contract that relates to
a Section 401 Plan or a Section 403(b) Plan if such distribution is properly
rolled over in accordance with the provisions of the Code. These provisions
contain various requirements, including the requirement that the rollover be
made directly from the distributing plan or within 60 days of receipt:
- to a Traditional IRA or to an individual retirement account under
Section 408 of the Code,
- to another Section 401 Plan or a certain kind of annuity plan
under Section 403(a) of the Code (if the distribution is from a
Section 401 Plan) or
- to a Section 403(b) Plan (if the distribution is from a Section
403(b) Plan).
These special rules only apply to distributions that qualify as
"eligible rollover distributions" under the Code. In general, a distribution
from a Section 401 Plan or Section 403(b) Plan will be an eligible rollover
distribution except to the extent:
- it represents the return of your "after-tax" contributions or is
not otherwise includable in income,
- it is part of a series of payments made for your life (or life
expectancy) or the joint lives (or joint life expectancies) of you
and your beneficiary under the plan or for a period of less than
ten years,
- it is a required minimum distribution under Section 401(a)(9) of
the Code as described below, or
- it is made from a Section 401 Plan by reason of a hardship.
Required minimum distributions under Section 401(a)(9) include the
following required payments:
- Required payments for the calendar year in which you reach age 70
1/2 or any later calendar year
- If the plan is a Section 401 Plan that is not maintained by
certain governmental or church-sponsored organizations and if you
are not treated under the Code as owning 5% or more of the
employer of the applicable plan, required payments for
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the later of the calendar year in which you reach age 70 1/2 or
the calendar year you terminate employment with the employer or
for any later calendar year.
The administrator of the applicable Section 401 Plan or Section 403(b)
Plan should provide additional information about these rollover tax rules when a
distribution is made.
DISTRIBUTIONS IN THE FORM OF ANNUITY PAYMENTS. If any distribution is
made from a Qualified Contract that relates to a Section 401 Plan or Section
403(b) Plan and is made in the form of annuity payments (and is not eligible for
rollover or is not in any event rolled over), a fixed portion of each payment is
generally excludable from income for federal income tax purposes to the extent
it is treated as allocable to your "after-tax" contributions to the Contract
(and any other cost basis you have in the Contract). To the extent the payment
exceeds such portion, it is includable in income for federal income tax
purposes.
The portion of the annuity payment that is excludable from income is
determined under detailed rules provided in the Code. In very general terms,
these detailed rules determine such excludable amount by dividing your
"after-tax" contributions and other cost basis in the Contract that remain in
the plan at the time the annuity payments begin by the anticipated number of
payments to be made under the Contract. If the annuity payments continue after
the number of anticipated payments has been made, such additional payments will
generally be included in full in income for federal income tax purposes.
WITHHOLDING. If any part of a distribution from a Qualified Contract
that relates to a Section 401 Plan or a Section 403(b) Plan is eligible for
rollover, but is not directly rolled over to a Traditional IRA or another
eligible employer plan or account pursuant to your election, it is generally
subject to federal income tax withholding at a rate of 20%.
Any taxable part of a distribution from such Contract that is not
eligible for a direct rollover is subject to different withholding rules that
are described in the Code. You can elect completely out of withholding as to
such part.
C. PENALTY TAX ON WITHDRAWALS
Generally, there is a penalty tax equal to 10% of the portion of any
payment from a Qualified Contract issued in connection with a Section 401 Plan
or a Section 403(b) Plan that is included in your income for federal income tax
purposes.
This 10% penalty will not apply if the distribution meets certain
conditions. Some of the distributions that are excepted from the 10% penalty are
listed below:
- A distribution that is made on or after the date you reach age 59
1/2
- A distribution that is properly rolled over to a Traditional IRA
or to another eligible employer plan or account
- A distribution that is made on or after your death
- A distribution that is made when you are totally disabled (as
defined in Section 72(m) of the Code
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<PAGE> 48
- A distribution that is made as part of a series of substantially
equal periodic payments which begin after you separate from
service with the employer of the applicable plan and are made at
least annually for your life (or life expectancy) or the joint
lives (or joint life expectancies) of you and your joint Annuitant
under the Qualified Contract
- A distribution that is made to you by reason of your separation
from service with the employer of the applicable plan during or
after the calendar year in which you reach age 55
- A distribution that is made to you to the extent it does not
exceed the amount allowable to you as a deduction for medical care
under Section 213 of the Code (determined without regard to
whether or not you itemize deductions)
- A distribution that is made to an alternate payee of yours
pursuant to a qualified domestic relations order (that meets the
conditions of Section 414(p) of the Code)
D. REQUIRED DISTRIBUTIONS
Distributions from a Qualified Contract issued in connection with a
Section 401 Plan or a Section 403(b) Plan must meet certain rules concerning
required distributions that are set forth in the Code. Such rules are summarized
below.
- Required distributions generally must start by April 1 of the
calendar year following the calendar year in which you reach age
70 1/2.
- If a Section 401 Plan is involved (except for a Section 401 Plan
maintained by certain governmental or church-sponsored
organizations) and you are not considered a 5% or more owner of
the employer of the plan under the rules of the Code, the required
distributions generally do not have to start until April 1 of the
calendar year following the later of the calendar year in which
you reach age 70 1/2 or the calendar year in which you terminate
employment with the employer.
- When distributions are required under the Code, a certain minimum
amount, determined under the Code and regulations issued
thereunder, must be made each year.
In addition, other rules apply under the Code to determine when and how
required minimum distributions must be made in the event of your death. The
applicable plan documents will contain such rules.
E. SPECIAL PROVISIONS
LOANS. Qualified Contracts used for Section 403(b) Plans generally
allow you to borrow money from such Contracts. In addition, certain Section 401
Plans may allow you to borrow money from a Qualified Contract that is used for
such plans.
In order to meet the rules of the Code so that such loans are not
considered taxable distributions when made, such loans must generally meet the
rules listed below.
- The amount of each loan must generally be at least $1,000.
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- The maximum time for repaying a loan for any other purpose is 5
years.
- The interest rate on each loan must be comparable to the rate
charged by commercial lenders for similar loans.
- The loan must be repaid in substantially equal payments made at
least quarterly.
- Generally, you cannot surrender or annuitize the Contract while a
loan is outstanding.
- There may also be restrictions on the maximum time for repaying
the loan.
A Section 403(b) Plan or a Section 401 Plan may contain additional or
different rules on loans from a Qualified Contract. The administrator of the
applicable Section 403(b) Plan or Section 401 Plan should be able to provide
information about these rules.
WITHDRAWAL LIMITATIONS. The Code limits the withdrawal of amounts from
a Qualified Contract used for a Section 401 Plan or Section 403(b) Plan to the
extent it is attributable to contributions made pursuant to a salary reduction
agreement or other cash or deferred arrangement. This limit applies in a
Qualified Contract used for a Section 403(b) Plan only to the extent the
withdrawal is attributable to contributions made after December 31, 1988.
If such withdrawal limitations apply, withdrawals of such amounts
generally can be made only when you reach age 59 1/2, when you separate from
service with the employer of the plan, when you become totally disabled or in
the case of your hardship. Withdrawals for hardship do not include earnings
allocated for you under the plan after 1988.
You should consult your own tax advisor about the tax consequences of
and rules for a loan or a withdrawal from a Section 401 Plan or Section 403(b)
Plan.
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SUPPLEMENT C
STATE OF TEXAS OPTIONAL RETIREMENT PROGRAM
The Contract is eligible for the State of Texas Optional Retirement
Program (ORP). Plans established under the Texas ORP will be referred to as
"Texas ORP Plans" in this Supplement. Contracts purchased in connection with
Texas ORP Plans will be referred to as "ORP Contracts" in this Supplement.
A. ORP CONTRACTS
ELIGIBLE PARTICIPANTS. An ORP Contract may be purchased to provide
benefits to a participant in a Texas ORP Plan. Employees of Texas "state
supported institutions of higher education" may direct contributions and
transfers to an ORP Contract. "State supported institutions of higher education"
are defined in Section 51.351 of Subchapter G of Title 3 of the Higher Education
Code of the State of Texas.
EMPLOYER PREMIUMS. Employer premiums are purchase payments applied to
the ORP Contract that are attributable to employer contributions other than
contributions made through a salary reduction agreement. Employer premiums are
subject to vesting under the rule governing Texas ORP Plans.
LOANS. Participants in a Texas ORP Plan are not allowed to borrow money
from an ORP Contract.
DISTRIBUTIONS. Distributions from an ORP Contract are considered to
have to have begun if:
- Distributions are made on account of your reaching your
required beginning date
- Before the required beginning date, irrevocable distributions
commence over a period permitted and in an annuity form
acceptable under Section 1.401(a)(9) of the Regulations.
Distribution of funds from ORP Contract may only be made upon the
occurrence of a "distributable event". Title 8, Chapter 830.105 of the Texas
Government Code defines "distributable event" as death, retirement, termination
of employment in all public institutions of higher education in Texas, or
attainment of age 70 1/2.
SPECIFIC PLAN RULES. The Internal Revenue Code and Texas laws place
limitations and restrictions on Texas ORP Plans, but the specific rules set
forth in the applicable plan will also affect how the plan works. Because the
provisions of Texas ORP Plans vary from plan to plan, you should contact your
plan administrator for additional information. If the information in the Texas
ORP Plan documents differs from the information in the ORP Contract or in this
Supplement, you should rely on the information in the Texas ORP Plan documents.
B. FEDERAL INCOME TAX INFORMATION
This discussion explains certain federal income tax rules applicable to
an ORP Contract. This discussion assumes at all times that the Contract
qualifies as an "annuity contract" under the Code, the Contract qualifies as an
"ORP Contract" under Texas law and the plan to which it relates qualifies as a
"Texas ORP Plan" under Texas law.
The specific rules related to ORP Contracts and Texas ORP Plans
discussed in Section A above, such as the rules on when distributions may be
made from an ORP Contract, are applicable in addition to the federal income tax
rules discussed in this Section B.
1. TAX TREATMENT OF CONTRIBUTIONS
Contributions to a Texas ORP Plan generally are NOT included in your
income for federal income tax purposes until the contributions are distributed
from the plan, provided such contributions are not in excess of any benefit,
contribution or nondiscrimination limits that apply to the plan.
2. TAX TREATMENT OF DISTRIBUTIONS
Any distributions from a Texas ORP Plan generally are included in
income for federal income tax purposes as ordinary income, except to the extent
the distributions are allocable to your after-tax contributions.
In addition, special rules apply to a distribution from an ORP Contract
if such distribution is properly rolled over in accordance with the provisions
of the Code. The administrator of the applicable Texas ORP Plan should provide
additional information about these rollover tax rules when a distribution is
made.
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<PAGE> 51
3. PENALTY TAX ON WITHDRAWALS
Generally, there is a penalty tax equal to 10% of the portion of any
payment from an ORP Contract that is included in your income for federal income
tax purposes.
This 10% penalty will not apply if the distribution meets certain
conditions. Some of the distributions that are excepted from the 10% penalty are
listed below:
- A distribution that is made on or after the date you reach age 59
1/2
- A distribution that is properly rolled over to a Traditional IRA
or to another eligible employer plan or account
- A distribution that is made on or after your death
- A distribution that is made when you are totally disabled (as
defined in Section 72(m) of the Code
- A distribution that is made as part of a series of substantially
equal periodic payments which begin after you separate from
service with the employer of the applicable plan and are made at
least annually for your life (or life expectancy) or the joint
lives (or joint life expectancies) of you and your joint Annuitant
under the Qualified Contract
- A distribution that is made to you by reason of your separation
from service with the employer of the applicable plan during or
after the calendar year in which you reach age 55
- A distribution that is made to you to the extent it does not
exceed the amount allowable to you as a deduction for medical care
under Section 213 of the Code (determined without regard to
whether or not you itemize deductions)
- A distribution that is made to an alternate payee of yours
pursuant to a qualified domestic relations order (that meets the
conditions of Section 414(p) of the Code)
4. REQUIRED DISTRIBUTIONS UNDER THE CODE
Distributions from an ORP Contract must meet certain rules concerning
required distributions that are set forth in the Code. Such rules are summarized
below.
- Required distributions generally must start by April 1 of the
calendar year following the calendar year in which you reach age
70 1/2.
- If you do not terminate your employment until after age 70 1/2,
the required distributions generally do not have to start until
April 1 of the calendar year following the later of the calendar
year in which you reach age 70 1/2 or the calendar year in which
you terminate employment with the employer.
- When distributions are required under the Code, a certain minimum
amount, determined under the Code and regulations issued
thereunder, must be made each year.
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<PAGE> 52
In addition, other rules apply under the Code to determine when and how
required minimum distributions must be made in the event of your death. The
applicable plan documents will contain such rules.
5. WITHDRAWAL LIMITATIONS UNDER THE CODE
The Code limits the withdrawal of amounts from an ORP Contract to the
extent it is attributable to contributions made pursuant to a salary reduction
agreement or other cash or deferred arrangement. If such withdrawal limitations
apply, withdrawals of such amounts generally can be made only when you reach age
59 1/2, when you separate from service with the employer of the plan, when you
become totally disabled or in the case of your hardship. Withdrawals for
hardship do not include earnings allocated for you under a Texas ORP Plan after
1988.
You should consult your own tax advisor about the tax consequences of
and rules for a withdrawal from a Texas ORP Plan.
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TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION
<TABLE>
<CAPTION>
PAGE
<S> <C>
General...........................................................................................................
Safekeeping of Assets.............................................................................................
Distribution of the Contracts.....................................................................................
Sub-Account Performance...........................................................................................
Sub-Accounts Accumulation Unit Value..............................................................................
Fixed Account Value...............................................................................................
Fixed Annuity Income Payments.....................................................................................
Other Contract Provisions.........................................................................................
Misstatement of Age or Sex...............................................................................
Assignment...............................................................................................
Loans....................................................................................................
No Dividends.............................................................................................
Qualification as an "Annuity Contract"............................................................................
Independent Accountants...........................................................................................
Financial Statement...............................................................................................
</TABLE>
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<PAGE> 54
BACK COVER
This booklet contains the Touchstone Variable Annuity Prospectus and the current
prospectus for Touchstone Variable Series Trust. You should rely only on the
information contained in the Contract, this Prospectus, the Statement of
Additional Information or our approved sales literature.
No one is authorized to give any information or make any representation other
than those contained in the Contract, this Prospectus, the Statement of
Additional Information or our approved sales literature.
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<PAGE> 55
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
SEPARATE ACCOUNT 1
FLEXIBLE PURCHASE PAYMENT DEFERRED
VARIABLE ANNUITY CONTRACTS
----------------------------
STATEMENT OF ADDITIONAL INFORMATION
January 4, 1999
----------------------------
This Statement of Additional Information is not a prospectus, but
contains information in addition to that set forth in the current prospectus
dated January 4, 1999 (the "Prospectus") for certain variable annuity contracts
("Contracts") offered by Western-Southern Life Assurance Company ("WSLAC")
through its Separate Account 1 ("SA1"), and should be read in conjunction with
the Prospectus. Unless otherwise noted, the terms used in this Statement of
Additional Information have the same meanings as those set forth in the
Prospectus.
A copy of the Prospectus may be obtained by calling the Touchstone
Variable Annuity Service Center at 1-800-669-2796 (press 2) or by written
request to WSLAC at P.O. Box 2850, Cincinnati, Ohio 45201-2850.
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<PAGE> 56
TABLE OF CONTENTS
OF
STATEMENT OF ADDITIONAL INFORMATION
<TABLE>
<CAPTION>
Page
<S> <C>
General...........................................................................................................
Safekeeping of Assets.............................................................................................
Distribution of the Contracts.....................................................................................
Sub-Account Performance...........................................................................................
Sub-Accounts Accumulation Unit Value..............................................................................
Fixed Account Value...............................................................................................
Fixed Annuity Income Payments.....................................................................................
Other Contract Provisions.........................................................................................
Misstatement of Age or Sex...............................................................................
Assignment...............................................................................................
Loans....................................................................................................
No Dividends.............................................................................................
Qualification as an "Annuity Contract"............................................................................
Diversification..........................................................................................
Excessive Control........................................................................................
Required Distributions...................................................................................
Independent Accountants...........................................................................................
Financial Statements..............................................................................................
</TABLE>
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<PAGE> 57
GENERAL
Except as otherwise indicated herein, all capitalized terms shall have
the meanings assigned to them in the Prospectus.
WSLAC is subject to regulation by the Ohio Department of Insurance,
which periodically examines its financial condition and operations. WSLAC also
is subject to the insurance laws and regulations of all jurisdictions in which
it offers Contracts. Copies of the Contract have been filed with, and, where
required, approved by insurance regulators in those jurisdictions. WSLAC must
submit annual statements of its operations, including financial statements, to
such state insurance regulators so that they may determine solvency and
compliance with applicable state insurance laws and regulations.
WSLAC and SA1 have filed a Registration Statement regarding the
Contracts with the Securities and Exchange Commission under the Investment
Company Act of 1940 and the Securities Act of 1933. The Prospectus and this
Statement of Additional Information do not contain all of the information in the
Registration Statement.
SAFEKEEPING OF ASSETS
The assets of SA1 are held by WSLAC, separate from WSLAC's general
account assets and any other separate accounts that WSLAC has or will establish.
WSLAC maintains records of all purchases and redemptions of the interests in the
Funds held by the Sub-Accounts. WSLAC maintains fidelity bond coverage for
the acts of its officers and employees.
DISTRIBUTION OF THE CONTRACTS
As disclosed in the Prospectus, the Contracts are distributed through
Touchstone Securities, Inc. (the "Distributor"), which is a wholly-owned
subsidiary of IFS Financial Services, Inc. ("IFS"). IFS is a wholly-owned
subsidiary of WSLAC. The Distributor is a member of the National Association of
Securities Dealers, Inc. The offering of the Contracts is continuous, and WSLAC
does not anticipate discontinuing offering the Contracts, although it reserves
the right to do so.
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Sales commissions attributable to the Contracts and paid by WSLAC to
the Distributor and amounts retained by the Distributor are shown below for the
periods indicated.
<TABLE>
<CAPTION>
Period Sales Commissions Amounts Retained by
Paid Distributor
- ---------------------------------------------- ------------------------------ -----------------------------
<S> <C> <C>
For the period from February 23, 1995 to $ 159,807 $ 26,967
December 31, 1995
For the year ended December 31, $1,902,186 $305,688
1996
For the year ended December 31, $7,686,342 $790,452
1997
</TABLE>
SUB-ACCOUNT PERFORMANCE
The performance of the Sub-Accounts may be quoted or advertised by
WSLAC in various ways. All performance information supplied by WSLAC in
advertising is based upon historical results of the Sub-Accounts and is not
intended to indicate future performance of either one. Total returns and other
performance information may be quoted numerically or in a table, graph or
similar illustration. The value of an Accumulation Unit and total returns
fluctuate in response to market conditions, interest rates and other factors.
Average annual total returns are calculated by determining the average
annual compounded rates of return over one, five and ten year periods (or since
commencement of operations) that would equate an initial hypothetical investment
to the ending redeemable value according to the following formula:
P (1 + T)n = ERV where:
P = a hypothetical initial purchase payment of
$1,000
T = average annual total return
n = number of years and/or portion of a year
ERV = ending redeemable value of a hypothetical
initial purchase payment of $1,000 at the
end of the applicable period
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<PAGE> 59
The following table sets forth the type of total return data for each of the
Sub-Accounts that will be used in advertising, in each case for the period ended
December 31, 19987
<TABLE>
<CAPTION>
TYPE OF EMERGING INTERNATIONAL INCOME STANDBY GROWTH &
PERFORMANCE GROWTH EQUITY BALANCED OPPORTUNITY INCOME INCOME BOND
Data Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
<S> <C> <C> <C> <C> <C> <C> <C>
Total Return 21.39% 2.73% 6.53% 0.14% -6.49% 7.78% -3.99%
For Year
Total Return 31.89% 13.23% 17.03% 10.64% 4.01% 18.28% 6.51%
For Year
Measured by
Change In
Accumulation
Unit Value **
Average Annual 15.12% 7.24% 13.13% 16.35% -1.73% 14.73% 1.60%
Total Return
Since
Inception*
Total Return 69.06% 39.85% 61.30% 74.01% 11.41% 67.50% 21.37%
Since
Inception
Measured By
Change In
Accumulation
Unit Value**
</TABLE>
*Based on a period beginning February 28, 1995.
**Calculated by determining the change in the Accumulation Unit Value from the
beginning of the period to the end of the period and dividing such amount by the
Accumulation Unit Value at the end of the period.
While average annual total returns are convenient means of comparing
investment alternatives, investors should realize that any Sub-Account's
performance is not constant over time, but changes from year to year, and that
average annual total returns represent averaged figures as opposed to the actual
year-to-year performance of any Sub-Account.
Average annual total return is calculated as required by applicable
regulations. In addition to average annual total returns, a Sub-Account may
quote cumulative total returns reflecting the simple change in value of any
investment over a stated period. Average annual and cumulative total returns may
be quoted as a percentage or as a dollar amount.
"Total return" or "average annual total return" quoted in advertising
reflects all aspects of a Sub-Account's return, including the effect of
reinvestment by the Sub-Account of income and capital gain distributions and any
change in the Sub-Account's value over the applicable period. Such quotations
reflect administrative charges and risk charges. Since the Contract is intended
as a long-term investment, total return calculations will assume that no partial
withdrawals from the hypothetical Contract occurred during the applicable
period, but that a Surrender Charge would be incurred upon the hypothetical
withdrawal at the end of the applicable period.
Any total return quotation provided for a Sub-Account should not be
considered as representative of the performance of the Sub-Account in the
future, since the net asset value will
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<PAGE> 60
vary based not only on the type, quality and maturities of the securities held
in the underlying fund in which the Sub-Account invests, but also on changes in
the current value of such securities and on changes in the expenses of the
Sub-Account and the underlying fund. These factors and possible differences in
the methods used to calculate total return should be considered when comparing
the total return of a Sub-Account to total returns published for other
investment companies or other investment vehicles.
WSLAC may advertise examples of the effects of dollar cost averaging,
whereby a Contract owner periodically invests a fixed dollar amount in a
Sub-Account, thereby purchasing fewer Accumulation Units when prices are high
and more Accumulation Units when prices are low. While such a strategy does not
assure a profit nor guard against a loss in a declining market, the Contract
owner's average cost per Accumulation Unit can be lower than if fixed numbers of
Accumulation Units had been purchased at the same intervals. In evaluating
dollar cost averaging, owners should consider their ability to continue
purchasing Accumulation Units during periods of low price levels.
Performance information for any Sub-Account may be compared, in reports
to Contract owners and in advertising, to stock indices, other variable annuity
separate accounts or other products tracked by Lipper Analytical Services, or
other widely used independent research firms, which rank variable annuities and
investment companies by overall performance, investment objectives and assets.
Unmanaged indices may assume the reinvestment of dividends but generally do not
reflect deductions for annuity charges and investment management costs.
SUB-ACCOUNTS ACCUMULATION UNIT VALUE
In this discussion, the term Valuation Period means the period of time
beginning at the close of trading on the New York Stock Exchange (NYSE) on one
Valuation Date, as defined below, and ending at the close of trading on the
NYSE on the next succeeding Valuation Date. A Valuation Date is each day
valuation of the Sub-Accounts is required by law including every day that the
NYSE is open.
The value of an Accumulation Unit at the close of any Valuation Period
is determined for each Sub-Account by multiplying the Accumulation Unit Value of
the Sub-Account at the close of the immediately preceding Valuation Period by
the "Net Investment Factor" (described below). Depending upon investment
performance of the underlying fund in which the Sub-Account is invested, the
Accumulation Unit Value may increase or decrease.
The Net Investment Factor for each Sub-Account for any Valuation Period
is determined by dividing (a) by (b) and subtracting (c) from the result, where:
(a) equals: (1) the net asset value per share of the
underlying fund at the end of the current Valuation
Period, plus
(2) the per share amount of any dividend or capital
gain distribution made by the underlying fund on
shares held in the Sub-Account if the "ex-dividend"
date occurs during the current Valuation Period, plus
or minus
(3) a per share charge or credit for any taxes
reserved, which are determined by WSLAC to have
resulted from the investment operations of the
Sub-Account during the current Valuation Period;
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<PAGE> 61
(b) is the net asset value per share of the underlying fund determined
at the end of the immediately preceding Valuation Period; and
(c) is a factor representing the charges deducted from the Sub-Account
on a daily basis for the daily portion of the annual Mortality and
Expense Risk Charge and the annual Contract Administration Charge.
FIXED ACCOUNT VALUE
Fixed Account Value is calculated on a daily basis by the following
formula:
PP + XFT + I - XFF - WD = FAV where
PP = the sum of all purchase payments allocated to
the Fixed Account
XFT = any amount transferred to the Fixed Account from
a Sub-Account
I = interest credited by WSLAC to the Fixed Account
XFF = any amounts transferred from the Fixed Account
to a Sub-Account
WD = any amounts withdrawn for charges or deductions,
or in connection with any surrenders or partial
withdrawals
FIXED ANNUITY INCOME PAYMENTS
The Contracts provide only for fixed annuity payment options. The
amount of such payments is calculated by applying the Surrender Value at
annuitization, less any applicable premium tax, to the income payment rates for
the income payment option selected. Annuity payments will be the larger of:
- the income based on the rates shown in the Contract's Annuity
Tables for the income payment option chosen; and
- the income calculated by applying the proceeds as a single
premium at WSLAC's current rates in effect on the date of the
first annuity payment for the same option.
Annuity payments under any of the income payment options will not vary
in dollar amount and will not be affected by the future investment performance
of the Variable Account.
OTHER CONTRACT PROVISIONS
Misstatement of Age or Sex. If the age or sex of the Annuitant is
misstated to WSLAC, WSLAC will change any benefits under the Contract to those
which the proceeds would have purchased had the correct age and sex been stated.
If the misstatement is not discovered until after annuity payments have started,
any overpayments will be charged, with compound interest, against subsequent
payments. Any amount WSLAC owes as the result of underpayments will be paid,
with compound interest, in a lump sum.
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Assignment. An owner may assign a Non-Qualified Contract in writing,
but may not assign a Qualified Contract except as may be allowed under
applicable law and the documents governing the plan. WSLAC will not be bound by
any assignment until written notice of the assignment is received and recorded
at the Touchstone Variable Annuity Service Center. The rights of the Contract
owner and any beneficiary will be affected by an assignment, and WSLAC disclaims
any responsibility for the validity or tax consequences of any assignment.
Loans. Loans may be permitted under Qualified Contracts purchased in
connection with a plan established under Section 403(b), if the plan documents
permit such loans. Loans are not permitted under any other type of Contract.
No Dividends. The Contracts are "non-participating." That means that
they do not provide for dividends. Investment results under the Contracts are
reflected in benefits.
QUALIFICATION AS AN "ANNUITY CONTRACT"
For the Contract to be treated as an "annuity contract" under the Code,
the Contract must meet certain requirements under the Code. The following
sections discuss various matters that might affect the Contract's status an an
"annuity contract."
DIVERSIFICATION
Section 817(h) of the Code imposes certain diversification standards on
the underlying assets of all variable annuity contracts. The Code generally
provides that a variable contract will not be treated as an annuity contract for
any period (and any subsequent period) for which the investments are not, in
accordance with regulations prescribed by the United States Treasury Department,
adequately diversified. The Code contains a safe harbor provision which provides
that variable contracts such as the Contracts meet the diversification
requirements if, as of the end of each quarter, (1) the underlying assets meet
the diversification standards prescribed elsewhere in the Code for an entity to
be classified as a regulated investment company and (2) no more than 55% of the
total assets consist of cash, cash items, U.S. government securities and
securities of other regulated investment companies.
In March 1989, the Treasury Department issued regulations that
established diversification requirements for the investment portfolios such as
the Funds underlying variable contracts such as the Contracts. The regulations
amplify the diversification requirements for variable contracts set forth in the
Code and provide an alternative to the safe harbor provision described in
Section 817(h) of the Code. Under the Regulations, an investment portfolio will
be deemed adequately diversified if: (1) no more than 55% of the value of the
total assets of the investment portfolio is represented by any one investment;
(2) no more than 70% of the value of the total assets of the investment
portfolio is represented by any two investments; (3) no more than 80% of the
value of the total assets of the investment portfolio is represented by any
three investments; and (4) no more than 90% of the value of the total assets of
the investment portfolio is represented by any four investments.
The Sub-Accounts, through each of the Funds, intends to comply with the
diversification requirements of the Code and the regulations. The Advisor has
agreed to manage the Funds so as to comply with such requirements.
EXCESSIVE CONTROL
The Treasury Department has from time to time suggested that guidelines
may be forthcoming under which a variable annuity contract will not be treated
as an annuity contract for tax purposes if the owner of the contract has
excessive control over the investments underlying the contract (i.e., the owner
is able to transfer values among Sub-Accounts with only limited restrictions).
If a variable contract is not treated as an annuity contract, the owner of such
contract would be considered the owner of the assets of a separate account, and
income and gains from that account would be included each year in the owner's
gross income. No such guidelines have been issued to date.
The issuance of such guidelines, or regulations or rulings dealing with
excessive control issues, might require the Company to impose limitations on an
owner's right to transfer all or part of the Contract Value among the
Sub-Accounts and the Fixed Account or to make other changes in the Contract as
necessary to attempt to prevent an owner from being considered the owner of any
assets of a Sub-Account. The Company therefore reserves the right to make such
changes. It is not known whether any such guidelines, regulations or rulings, if
adopted, would have retroactive effect.
REQUIRED DISTRIBUTIONS
Additionally, in order to qualify as an annuity contract under the
Code, a Non-Qualified Contract must meet certain requirements regarding
distributions in the event of the death of the owner. In general, if the owner
dies before the entire value of the Contract is distributed, the remaining value
of the Contract must be distributed according to provisions of the Code. Upon
the death of an owner prior to commencement of annuity payments, (1) the amounts
accumulated under a Contract must be distributed within five years, or (2) if
distributions to a designated beneficiary within the meaning of Section 72 of
the Code begin within one year of the owner's death, distributions are permitted
over a period not extending beyond the life (or life expectancy) of the
designated beneficiary.
The above rules are modified if the designated beneficiary is the
surviving spouse. The surviving spouse is not required to take distributions
from the Contract under the above rules as a beneficiary and may continue the
Contract and take distributions under the above rules as if the surviving spouse
were the original owner. If distributions have begun prior to the death of the
owner, such distributions must continue at least as rapidly as under the method
in effect at the date of the owner's death (unless the method in effect provides
that payments cease at the death of the owner).
For Qualified Contracts issued in connection with tax-qualified plans
and traditional individual retirement annuities, the plan documents and rules
will determine mandatory distribution rules. However, under the Code,
distributions from Contracts issued under Qualified Plans (other than
traditional and Roth individual retirement annuities and certain governmental or
church-sponsored Qualified Plans) for employees who are not 5% owners of the
sponsoring employer generally must commence no later than April 1 of the
calendar year following the calendar year in which the employee terminates
employment or reaches age 70 1/2, whichever is later. Such distributions must be
made over a period that does not exceed the life expectancy of the employee or
the joint and last survivor life expectancy of the employee and a designated
beneficiary. Distributions from Contracts issued under traditional individual
retirement annuities (but not Roth IRAs) or to 5% owners of the sponsoring
employer from Contracts issued under Qualified Plans (other than certain
governmental or church-sponsored Qualified Plans) must commence by April 1 of
the calendar year after the calendar year in which the individuals reach age 70
1/2 even if they have not terminated employment. A penalty tax of 50% may be
imposed on any amount by which the required minimum distribution in any year
exceeds the amount actually distributed.
If the Contract is a Qualified Contract issued in connection with a
traditional individual retirement annuity, a SIMPLE account, or a plan which
qualifies under Sections 403(b), 408 or 457 of the Code, the Company will send a
notice to the owner when the owner or Annuitant, as applicable, reaches age 70
1/2. The notice will summarize the required minimum distribution rules and
advise the owner of the date that such distributions must begin from the
Qualified Contract or other traditional individual retirement annuities of the
owner. The owner has sole responsibility for requesting distributions under the
Qualified Contract or other traditional individual retirement annuities (to the
extent permitted by the Code) that will satisfy the minimum distribution rules.
In the case of a distribution from a Qualified Contract issued under a plan
which qualifies under Section 401 of the Code, the Company will not send a
notice when the owner or Annuitant, as applicable, reaches age 70 1/2, and the
owner (or the employer sponsoring the Qualified Plan) has sole responsibility
for requesting distributions under the Qualified Contract that will satisfy the
minimum distribution rules.
INDEPENDENT ACCOUNTANTS
The financial statements of Western-Southern Life Assurance Company Separate
Account 1 and the financial statements of Western-Southern Life Assurance
Company, included in this registration statement and described below, have been
included herein in reliance on the report of PricewaterhouseCoopers LLP
independent accountants, given on the authority of that firm as experts in
accounting and auditing.
FINANCIAL STATEMENTS
The following financial statements for Western-Southern Life Assurance
Company Separate Account 1 at and for the fiscal periods indicated are attached
hereto:
1. Report of PricewaterhouseCoopers LLP.
2. Statement of Net Assets as of December 31, 1997.
3. Statement of Operations and Changes in Net Assets for the years
ended December 31, 1997 and 1996.
4. Notes to Financial Statements.
5. Supplementary Information-Selected Per Unit Data and Ratios for
the years ended December 31, 1997 and 1996.
6. Statement of Net Assets as of June 30, 1998 (unaudited).
7. Statement of Operations and Changes in Net Assets for the period
from January 1, 1998 to June 30,1998 (unaudited).
8. Notes to Financial Statements (unaudited).
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<PAGE> 63
9. Supplementary Information-Selected Per Unit Data and Ratios for
the period ended June 30, 1998 (unaudited) and for the year ended
December 31, 1997.
The following financial statements for Western-Southern Life Assurance
Company at and for the fiscal periods indicated are attached hereto:
1. Report of PricewaterhouseCoopers LLP.
2. Consolidated Balance Sheets as of December 31, 1997 and 1996.
3. Consolidated Statements of Operations for the years ended December
31, 1997, 1996 and 1995.
4. Consolidated Statements of Changes in Shareholder's Equity for the
years ended December 31, 1997, 1996 and 1995.
5. Consolidated Statements of Cash Flows for the years ended December
31, 1997, 1996 and 1995.
6. Notes to Financial Statements.
The following financial statements for Select Advisors Portfolios at and for the
fiscal periods indicated are incorporated by reference from their current
reports to shareholders filed with the Securities and Exchange Commission
pursuant to Section 30(b) of the 1940 Act and Rule 30b2-1 thereunder. A copy of
each such report will be provided to each person receiving this Statement of
Additional Information.
1. Schedule of Investments December 31, 1997.
2. Statement of Assets and Liabilities December 31, 1997.
3. Statement of Operations for the year ended December 31, 1997.
4. Statement of Changes in Net Assets for the years ended December 31,
1997 and 1996.
5. Supplementary Data for the years ended December 31, 1997, 1996,
1995 and 1994.
6. Notes to Financial Statements.
7. Report of PricewaterhouseCoopers LLP.
Page 9
<PAGE> 64
FINANCIAL STATEMENTS
For purposes of this filing only, the following financial statements
are incorporated by reference. A copy of the financial statements will be
attached to the Statement of Additional Information and provided to each person
receiving the Statement of Additional Information.
The following financial statements for Western-Southern Life Assurance
Company Separate Account 1 at and for the fiscal periods indicated are
incorporated herein by reference to Post-Effective Amendment No. 7 to the
Registration Statement filed with the SEC on May 1, 1998 (File Nos. 033-76582
and 811-08420).
1. Report of PricewaterhouseCoopers L.L.P.
2. Statement of Net Assets as of December 1, 1997.
3. Statement of Operations and Changes in Net Assets for the years
ended December 31, 1997 and 1996.
4. Notes to Financial Statements.
5. Supplementary Information--Selected Per Unit Data and Ratios for
the years ended December 31, 1997 and 1996.
The following financial statements for Western-Southern Life Assurance
Company Separate Account 1 at and for the periods indicated are incorporated by
reference from its Semi Annual Report on Form N-30D filed with the SEC on
September 2, 1998 (File No. 811-08420).
1. Statement of Net Assets as of June 30, 1998 (unaudited).
2. Statement of Operations and Changes in Net Assets for the period
from January 1, 1998 to June 30, 1998 (unaudited).
3. Notes to Financial Statements (unaudited).
4. Supplementary Information--Selected Per Unit Data and Ratios for
the period ended June 30, 1998 (unaudited) and for the year ended
December 31, 1997.
The following financial statements for Western-Southern Life Assurance
Company at and for the fiscal periods indicated are incorporated herein by
reference to Post-Effective Amendment No. 7 to the Registration Statement filed
with the SEC on May 1, 1998 (File Nos. 033-76582 and 811-08420).
1. Report of PricewaterhouseCoopers L.L.P.
2. Consolidated Balance Sheets as of December 31, 1997 and 1996.
3. Consolidated Statements of Operations for the years ended December
31, 1997, 1996 and 1995.
4. Consolidated Statements of Changes in Shareholder's Equity for the
years ended December 31, 1997, 1996 and 1995.
5. Consolidated Statements of Cash Flows for the years ended December
31, 1997, 1996 and 1995.
6. Notes to Financial Statements.
Page 10
<PAGE> 65
DISTRIBUTOR
Touchstone Securities, Inc. SUB-ACCOUNTS
311 Pike Street
Cincinnati, Ohio 45202 - Emerging Growth
(800) 669-2796 (press 3) - International Equity
- Income Opportunity
INVESTMENT ADVISOR AND SPONSOR - Value Plus
- Growth & Income
Touchstone Advisors, Inc. - Balanced
311 Pike Street - Bond
Cincinnati, Ohio 45202 - Standby Income
TOUCHSTONE VARIABLE ANNUITY SERVICE CENTER
Touchstone Variable Annuity Service Center
P.O. Box 2850
Cincinnati, Ohio 45201-2850
(800) 669-2796 (press 2)
TRANSFER AGENT
State Street Bank and Trust Company
P.O. Box 8578
Boston, Massachusetts 02266-8518
ADMINISTRATOR, CUSTODIAN
AND FUND ACCOUNTING AGENT
Investors Bank & Trust Company STATEMENT OF
200 Clarendon Street ADDITIONAL INFORMATION
Boston, Massachusetts 02116 January 4, 1999
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
312 Walnut Street
Cincinnati, Ohio 45202
LEGAL COUNSEL
Frost & Jacobs LLP
2500 PNC Center
201 East Fifth Street
Cincinnati, Ohio 45202
Page 11
<PAGE> 66
PART C
ITEM 24 -- FINANCIAL STATEMENTS AND EXHIBITS
(a) No financial statements are included in Part A.
The following financial statements are incorporated by reference into
Part B:
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY SEPARATE ACCOUNT 1
(1) Report of PricewaterhouseCoopers LLP.
(2) Statement of Net Assets as of December 31, 1997.
(3) Statement of Operations and Changes in Net Assets for
the years ended December 31, 1997 and 1996.
(4) Notes to Financial Statements.
(5) Supplementary Information -- Selected Per Unit Data
and Ratios for the years ended December 31, 1997 and
1996.
(6) Statement of Net Assets as of June 30, 1998
(unaudited).
(7) Statement of Operations and Changes in Net Assets for
the period from January 1, 1998 to June 30, 1998
(unaudited).
(8) Notes to Financial Statements (unaudited).
(9) Supplementary Information -- Selected Per Unit Data
and Ratios for six months ended June 30, 1998
(unaudited) and for the year ended December 31, 1997.
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
(1) Report of PricewaterhouseCoopers LLP.
(2) Balance Sheets as of December 31, 1997 and 1996.
(3) Summaries of Operations for the years ended December
31, 1997, 1996 and 1995.
(4) Statements of Changes in Shareholder's Equity for the
years ended December 31, 1997, 1996 and 1995.
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<PAGE> 67
(5) Statements of Cash Flows for the years ended December
31, 1997, 1996 and 1995.
(6) Notes to Financial Statements.
(b) Exhibits:
(1) Resolutions of the Executive Committee of the Board of Directors
of Western-Southern Life Assurance Company (the "Company")
establishing Western-Southern Life Assurance Company Separate
Account 1.
(2) Not Applicable.
(3) (a) Distributor Agreement between the Company (on behalf of
Separate Account 1) and Touchstone Securities, Inc.
incorporated herein by reference to Post-Effective
Amendment No. 7 to the Registration Statement filed with
the Securities and Exchange and Commission (the "SEC")
on May 1, 1998 (File Nos. 33-76582 and 811-8420).
(b) Commission Schedule incorporated herein by reference to
Post-Effective Amendment No. 7 to the Registration
Statement filed with the SEC on May 1, 1998 (File Nos.
33-76582 and 811-8420).
(c) Specimen General Agency Agreement between Touchstone
Securities, Inc. and its dealers.
(4) (a) Specimen Touchstone Variable Annuity Contract
9408-5550 WSA.
(b) Specimen Endorsement for SIMPLE IRA 9801-5600 WSA END.
(c) Specimen Endorsement for IRA 9801-5606 WSA END.
(d) Specimen Endorsement for SEP-IRA 9801-5614 WSA END.
(e) Specimen Tax Sheltered Annuity Endorsement 9801-5610
WSA END.
(f) Specimen Endorsement for Roth IRA 9801-5607 WSA END.
(g) Specimen 401 Plan Endorsement 9801-5611 WSA END.
(h) Specimen Charitable Remainder Unitrust Endorsement
9611-5612 WSA END.
(i) Specimen Free Withdrawal Amount Endorsement 9611-5613
WSA END.
(j) Specimen Additional Waiver of Surrender Charges Rider
9501-5201 WSA.
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<PAGE> 68
(5) Specimen Application Form for Touchstone Variable Annuity
DO-11-IFS-VARI-9805.
(6) (a) Amended Articles of Incorporation of the Company
incorporated herein by reference to Post-Effective
Amendment No. 2 to the Registration Statement filed with
the SEC on April 29, 1996 (File Nos. 33-76582 and
811-8420).
(b) Amended Code of Regulations of the Company incorporated
herein by reference to Post-Effective Amendment No. 2 to
the Registration Statement filed with the SEC on April
29, 1996 (File No. 33-76582 and 811-8420).
(7) Not Applicable.
(8) (a) Administration Agreement between Investors Bank & Trust
Company and Select Advisors Variable Insurance Trust
("VIT") is incorporated herein by reference to
Post-Effective Amendment No. 3 to the Registration
Statement of VIT filed with the SEC on February 28, 1997
(File Nos. 033-76566 and 811-08416).
(b) Fund Accounting Agreement between Investors Bank &
Trust Company and VIT is incorporated herein by
reference to Post-Effective Amendment No. 3 to the
Registration Statement of VIT filed with the SEC on
February 28, 1997 (File Nos. 033-76566 and 811-08416).
(c) Custodian Agreement Between Investors Bank & Trust
Company and VIT is incorporated herein by reference to
Post-Effective Amendment No. 8 to the Registration
Statement of VIT filed with the SEC on July 30, 1998
(file Nos. 033-76566 and 811-08416).
(d) (i) Sponsor Agreement between Touchstone Advisors,
Inc. and VIT is incorporated herein by reference
to Post-Effective Amendment No. 7 to the
Registration Statement filed with the SEC on May
1, 1998 (file Nos. 033-76582 and 811-08420).
(ii) Form of Amendment No. 1 to Sponsor Agreement
between Touchstone Advisors, Inc. and VIT is
incorporated herein by reference to
Post-Effective Amendment No. 7 to the
Registration Statement filed with the SEC on
May 1, 1998 (File Nos. 033-76582 and 811-08420)
(e) (i) Fund Participation Agreement between
Western-Southern Life Assurance Company and VIT
is incorporated herein by reference to
Post-Effective Amendment No. 7 to the
Registration Statement filed with the SEC on May
1, 1998 (File Nos. 033-76582 and 811-08420).
(ii) Form of Amendment No. 1 to Fund Participation
Agreement between Western-Southern Life
Assurance Company and VIT is incorporated herein
by reference to Post-Effective Amendment No. 7
to the Registration Statement filed with the SEC
on May 1, 1998 (File Nos. 033-76582 and
811-08420).
(9) Opinion and Consent of Donald J. Wuebbling, Esq.
(10) Consent of PricewaterhouseCoopers LLP.
(11) Not Applicable.
(12) Not Applicable.
(13) Schedule for Computation of Performance Quotations provided in
Registration Statement in response to Item 21 incorporated
herein by reference to Post-Effective Amendment No. 7 to the
Registration Statement filed with the SEC on May 1, 1998 (File
Nos. 33-76582 and 811-8420).
(14) Not Applicable.
(99) Powers of Attorney -- Directors of the Company.
ITEM 25. -- DIRECTORS AND OFFICERS OF THE DEPOSITOR
The directors and officers of the Company are listed below. Unless
otherwise noted, the principal business address of all persons listed in
Item 25 is 400 Broadway, Cincinnati, Ohio 45202.
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<PAGE> 69
<TABLE>
<S> <C>
William J. Williams Chairman of the Board and Director
John F. Barrett Director, Chief Executive Officer and President
James N. Clark Director, Executive Vice President,
Secretary and Treasurer
Dr. J. Harold Kotte Director
Dr. Lawrence C. Hawkins Director
Omni-Man, Inc.
3909 Reading Road
Cincinnati, Ohio 45229
Carl A. Kroch Director
Kroch's & Brentano's
29 South Wabash Avenue
Chicago, Illinois 60603
Eugene P. Ruehlmann Director
Vorys, Sater, Seymour and Pease
Suite 2100 Atrium Two
221 East Fourth Street
Cincinnati, Ohio 45202
Thomas L. Williams Director
North American Properties
212 East Third Street
Suite 300
Cincinnati, Ohio 45202
Donald A. Bliss Director
10892 East Fanfol Lane
Scottsdale, Arizona 85259
Herbert R. Brown Vice President
James W. Carpenter Vice President and Senior Counsel
Keith T. Clark Vice President and Medical Director
Bryan C. Dunn Senior Vice President and Chief
Marketing Officer
</TABLE>
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<PAGE> 70
<TABLE>
<S> <C>
David G. Ennis Vice President and Auditor
Noreen J. Hayes Vice President
Edward S. Heenan Vice President and Comptroller
Dale P. Hennie Senior Vice President
Carroll R. Hutchinson Senior Vice President
Donald W. Kaplan Vice President and Actuary
William F. Ledwin Senior Vice President and Chief
Investment Officer
Harold V. Lyons Vice President and Actuary
Nora E. Moushey Senior Vice President and Chief
Actuary
Jill T. McGruder Senior Vice President
J. J. Miller Senior Vice President
Kenneth A. Palmer Senior Vice President
Mario J. San Marco Vice President
Thomas M. Stapleton Vice President
Robert H. Starnes Vice President
Richard K. Taulbee Vice President
Donald J. Wuebbling Vice President and General Counsel
G. H. Schellpeper Vice President
8901 Indian Hills Drive
Omaha, Nebraska 68144
James J. Vance Treasurer
</TABLE>
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<PAGE> 71
ITEM 26. -- PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT
The Western and Southern Life Insurance Company ("WSLIC"); Ohio
corporation
Western-Southern Life Assurance Company ("WSLAC"); Ohio
corporation; 100% owned by WSLIC
Courtyard Nursing Care, Inc.; Ohio corporation; 100%
owned by WSLAC; ownership and operation of real estate.
IFS Financial Services, Inc. ("IFS"); Ohio corporation;
100% owned by WSLAC; development and marketing of
financial products for distribution through financial
institutions.
IFS Systems, Inc.; Delaware corporation;
100% owned by IFS; development, marketing
and support of software systems.
IFS Insurance Agency, Inc.; Ohio
corporation; 99% owned by IFS, 1% owned by
William F. Ledwin; general insurance agency.
Touchstone Securities, Inc.; Nebraska
corporation; 100% owned by IFS; securities
broker-dealer.
Touchstone Advisors, Inc.; Ohio corporation;
100% owned by IFS; registered investment
adviser.
IFS Agency Services, Inc.; Pennsylvania
corporation; 100% owned by IFS; general
insurance agency.
IFS Agency, Inc.; Texas corporation; 100%
owned by an individual; general insurance
agency.
IFS General Agency, Inc.; Pennsylvania
corporation; 100% owned by William F.
Ledwin; general insurance agency.
Seasons Congregate Living, Inc.; Ohio corporation; 100% owned by
WSLIC; ownership and operation of real estate.
Latitudes at the Moors, Inc.; Florida corporation; 100% owned by
WSLIC; ownership and operation of real estate.
WestAd Inc.; Ohio corporation; 100% owned by WSLIC, general
advertising, book-selling and publishing.
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<PAGE> 72
Fort Washington Investment Advisors, Inc.; Ohio corporation;
100% owned by WSLIC; registered investment adviser.
Columbus Life Insurance Company; Ohio corporation; 100% owned by
WSLIC; insurance.
Colmain Properties, Inc.; Ohio corporation; 100% owned
by Columbus Life Insurance Company; acquiring, owning,
managing, leasing, selling real estate.
Colpick, Inc.; Ohio corporation; 100% owned
by Colmain Properties, Inc.; acquiring,
owning, managing, leasing and selling real
estate.
CAI Holding Company, Inc.; Ohio corporation; 100% owned
by Columbus Life Insurance Company; holding company.
Capital Analysts Incorporated; Delaware
corporation; 100% owned by CAI Holding
Company; securities broker-dealer and
registered investment advisor.
Capital Analysts Agency, Inc.; Ohio
corporation; 99% owned by Capital Analysts
Incorporated, 1% owned by William F.
Ledwin; general insurance agency.
Capital Analysts Agency, Inc.; Texas
corporation; 100% owned by an individual
who is a resident of Texas, but under
contractual association with Capital
Analysts Incorporated; general insurance
agency.
Capital Analysts Insurance Agency, Inc.;
Massachusetts corporation; 100% owned by
Capital Analysts Incorporated; general
insurance agency.
CLIC Company I; Delaware corporation; 100% owned by
Columbus Life Insurance Company; holding company.
CLIC Company II; Delaware corporation; 100% owned by
Columbus Life Insurance Company; holding company.
Eagle Properties, Inc.; Ohio corporation; 100% owned by WSLIC;
ownership, development and management of real estate.
Seasons Management Company; Ohio corporation; 100 %
owned by Eagle Properties, Inc.; management of real
estate.
-7-
<PAGE> 73
Continental General Corporation; Nebraska corporation; 100%
owned by WSLIC; holding company.
Continental Agency Services, Inc.; Nebraska
corporation; 100% owned by Continental General
Corporation.
Continental General Insurance Company; Nebraska
corporation; 100% owned by Continental General
Corporation; insurance.
Continental Print & Photo Co.; Nebraska corporation;
100% owned by Continental General Corporation;
printing.
Waslic Company II; Delaware corporation; 100% owned by WSLIC;
holding company.
WestTax, Inc.; Ohio corporation, 100% owned by WSLIC;
preparation and electronic filing of tax returns.
Florida Outlet Marts, Inc.; Florida corporation; 100% owned by
WSLIC; ownership and operation of real estate.
AM Concepts Inc.; Delaware corporation, 100% owned by WSLIC;
venture capital investment in companies engaged in alternative
marketing of financial products.
Western-Southern Agency, Inc.; Ohio corporation; 99% owned by
WSLIC; 1% owned by William F. Ledwin; general insurance agency.
Western-Southern Agency Services, Inc.; Pennsylvania
corporation; 100% owned by WSLIC; general insurance agency.
W-S Agency of Texas, Inc.; Texas corporation; 100% owned by an
individual; general insurance agency.
ITEM 27. -- NUMBER OF CONTRACT OWNERS
As of October 30, 1998, there were 2,399 owners of Qualified
Contracts and 2,467 owners of Non-Qualified Contracts offered pursuant to
this Registration Statement.
ITEM 28. -- INDEMNIFICATION
The Amended Code of Regulations of the Company provides that, to the
fullest extent not prohibited by applicable law, the Company shall
indemnify each director, officer and employee against any and all costs
and expenses (including attorney fees, judgments, fines, penalties,
amounts paid in settlement, and other disbursements) actually and
reasonably incurred by or imposed upon such director, officer or
employee in connection
-8-
<PAGE> 74
with any action, suit, investigation or proceedings (or any claim or
other matter therein), whether civil, criminal, administrative or
otherwise in nature, including any settlements thereof of any appeals
therein, with respect to which such director, officer or employee is
named or otherwise becomes or is threatened to be made a party by reason
of being or at any time having been a director, officer or employee of
the Company, or, at the direction or request of the Company, a director,
trustee, officer, administrator, manager, employee, adviser or other
agent of or fiduciary for any other corporation, partnership, trust,
venture or other entity or enterprise including any employee benefit
plan; provided, however, that no person shall be indemnified to the
extent, if any, that the directors of the Company, acting at a meeting
at which a quorum of directors who are not parties to or threatened with
any such action, suit, investigation or proceeding, determine that such
indemnification is contrary to applicable law.
Any director of the Company who is a party to or threatened with any
such action, suit, investigation or proceeding shall not be qualified to
vote; and if for this reason a quorum of directors, who are not
disqualified from voting by reason of being parties to or threatened
with such action, suit, investigation or proceeding, cannot be obtained,
such determination shall be made by three attorneys at law, who have not
theretofore represented the Company in any matter and who shall be
selected by all of the officers and directors of the Company who are not
parties to or threatened with any such action, suit, investigation or
proceeding. If there are no officers or directors who are qualified to
make such selection, the selection shall be made by a Judge of the Court
of Common Pleas of Hamilton County, Ohio. Such indemnification shall not
be deemed exclusive of any other right to which such director, officer
or employee may be entitled under the Company's articles of
incorporation, code of regulations, any agreement, any insurance
purchased by the Company, vote of shareholders or otherwise.
The Board of Directors of the Company also may, in its discretion,
secure and maintain insurance policies against any liability asserted
against and incurred by any of the Company's directors, officers or
employees.
Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or
otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or paid
by a trustee, director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted
by such trustee, 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 Act and will be governed by the final adjudication of such
issues.
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<PAGE> 75
ITEM 29. -- PRINCIPAL UNDERWRITERS
(a) Touchstone Securities, Inc. ("Touchstone Securities") acts as
distributor for Contracts issued under Western-Southern Life
Assurance Company Separate Accounts 1 and 2 and as distributor
for the shares of several series (Funds) of Touchstone Series
Trust (formerly Select Advisors Trust A), each of which is
affiliated with the Depositor.
(b) Set forth below are the names, principal business addresses and
positions of each director and officer of Touchstone Securities.
<TABLE>
<CAPTION>
Name Position/Office with Touchstone Securities
---- ------------------------------------------
<S> <C>
James N. Clark Director
400 Broadway
Cincinnati, Ohio 45202
Edward G. Harness, Jr. Director, Chief Executive Officer and President
311 Pike Street
Cincinnati, Ohio 45202
Edward S. Heenan Director and Controller
400 Broadway
Cincinnati, Ohio 45202
William F. Ledwin Director
400 Broadway
Cincinnati, Ohio 45202
Donald J. Wuebbling Director
400 Broadway
Cincinnati, Ohio 45202
Richard K. Taulbee Vice President
400 Broadway
Cincinnati, Ohio 45202
Carl A. Ramsey Vice President
8901 Indian Hills Drive
Omaha, Nebraska 68114
E. Duane Clay Vice President
8901 Indian Hills Drive
Omaha, Nebraska 68114
Robert F. Morand Secretary
400 Broadway
Cincinnati, Ohio 45202
</TABLE>
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<PAGE> 76
<TABLE>
<S> <C>
Patricia Wilson Chief Compliance Officer
311 Pike Street
Cincinnati, Ohio 45202
</TABLE>
(c) The following table sets forth information about all commissions
and compensation received by the principal underwriter,
Touchstone Securities, Inc.
<TABLE>
<CAPTION>
Net Underwriting Discounts Compensation on
and Commissions Redemptions Brokerage Commissions Compensation
------------------------------- --------------------- ---------------------- ---------------------
<S> <C> <C> <C>
$790,452 $ -0- $ -0- $ -0-
</TABLE>
ITEM 30. -- LOCATION OF ACCOUNTS AND RECORDS
Accounts, books and other documents required to be maintained by
Section 31(a) of the Investment Company Act of 1940 and the rules
promulgated thereunder are maintained by the Company at 400 Broadway,
Cincinnati, Ohio 45202.
ITEM 31. -- MANAGEMENT SERVICES
Not Applicable.
ITEM 32. -- UNDERTAKINGS
Registrant undertakes to:
(a) file a post-effective amendment to this Registration Statement
as frequently as is necessary to ensure that the audited
financial statements in the Registration Statement are never
more than 16 months old for so long as payments under the
Contracts may be accepted;
(b) include either (1) as part of any application to purchase a
Contract offered by the Prospectus, a space that an applicant
can check to request a Statement of Additional Information, or
(2) a postcard or similar written communication affixed to or
included in the Prospectus that the applicant can remove to
send for a Statement of Additional Information; and
(c) deliver any Statement of Additional Information and any
financial statements required to be made available under this
Form promptly upon written or oral request directed to the
address or telephone number contained in the Prospectus.
Registrant represents that it is relying upon a "no-action" letter
issued to the American Council of Life Insurance concerning that
conflict between the redeemability requirements of sections 22(e),
27(c)(1) and 27(d) of the Investment Company Act of 1940 and the limits
on the redeemability of variable annuities imposed by Section
403(b)(11) of the Internal Revenue Code. The Registrant has included
disclosure
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<PAGE> 77
concerning the 403(b)(11) restrictions in its prospectus and sales
literature, and established a procedure whereby each plan participant
will sign a statement acknowledging these restrictions before a
Contract is issued. Sales representatives have been instructed to bring
the restrictions to the attention of potential plan participants.
Registrant represents that it is relying upon Rule 6c-7 promulgated
under the Investment Company Act of 1940, as amended, with respect to
offering variable annuity contracts to participants in the Texas
Optional Retirement Program ("Program") and that it has complied with
or will comply with the provisions of paragraphs (a)-(d) of Rule 6c-7.
Registrant has included appropriate disclosure regarding the
restrictions on redemption imposed by the Program in each registration
statement, including the prospectus, used in connection with the
Program. Registrant will (1) include appropriate disclosure regarding
the restrictions on redemption imposed by the Program in any sales
literature used in connection with the offer of annuity contracts to
Program participants, (2) instruct sales representatives who solicit
Program participants to purchase annuity contracts specifically to
bring the restrictions on redemption imposed by the Program to the
attention of potential Program participants, and (3) obtain from each
Program participant who purchases an annuity contract in connection
with the Program, prior to or at the time of such purchase, a signed
statement acknowledging the restrictions on redemption imposed by the
Program.
Pursuant to Section 26(e) of the Investment Company Act of 1940, as
amended, Western-Southern Life Assurance Company represents that, with
respect to the Contracts registered with the Commission by this
Registration Statement, as it may be amended, and offered by the
Prospectus included in this Registration Statement, all fees and
charges imposed for any purpose and in any manner and deducted under
the Contracts, in the aggregate, are reasonable in relation to the
services rendered, the expenses expected to be incurred, and the risks
assumed by the Western-Southern Life Assurance Company.
-12-
<PAGE> 78
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Depositor, on behalf of itself and the
Registrant, has duly caused this Post-Effective Amendment No. 9 to its
Registration Statement under the Securities Act of 1933 and Amendment No. 16 to
its Registration Statement under the Investment Company Act of 1940 to be signed
on its behalf, in the City of Cincinnati and State of Ohio on the 5th day of
November, 1998.
WESTERN-SOUTHERN LIFE ASSURANCE
COMPANY SEPARATE ACCOUNT 1
By WESTERN-SOUTHERN LIFE
ASSURANCE COMPANY
By /s/ EDWARD S. HEENAN
-----------------------------
Edward S. Heenan,
Vice President and Controller
As required by the Securities Act of 1933, this Registration Statement
has been signed below by the following persons in the capacities and on the
date(s) indicated below.
PRINCIPAL EXECUTIVE OFFICER:
/s/ JOHN F. BARRETT November 5, 1998
- -------------------
John F. Barrett,
President, Director and
Chief Executive Officer
PRINCIPAL FINANCIAL OFFICER:
/s/ JAMES J. VANCE November 5, 1998
- ------------------
James J. Vance,
Treasurer
DIRECTORS:
DONALD A. BLISS
JAMES N. CLARK
LAWRENCE C. HAWKINS
J. HAROLD KOTTE By /s/ EDWARD S. HEENAN
CARL A. KROCH Edward S. Heenan,
EUGENE P. RUEHLMANN as attorney-in fact for
THOMAS L. WILLIAMS each Director
WILLIAM J. WILLIAMS November 5, 1998
Variable Annuity
-13-
<PAGE> 79
EXHIBIT INDEX
EXHIBIT DESCRIPTION PAGE
1 Resolutions of the Executive Committee of the Board
of Directors of Western-Southern Life Assurance
Company (the "Company") establishing Western-Southern
Life Assurance Company Separate Account 1
3(c) Specimen General Agency Agreement
4(a) Specimen Touchstone Variable Annuity Contract
9408-5550-WSA
4(b) Specimen Endorsement for SIMPLE IRA 9801-5600 WSA END
4(c) Specimen Endorsement for IRA 9801-5606 WSA END
4(d) Specimen Endorsement for SEP-IRA 9801-5614 WSA END
4(e) Specimen Tax Sheltered Annuity Endorsement
9801-5610 WSA END
4(f) Specimen Endorsement for Roth IRA 9801-5607 WSA END
4(g) Specimen Section 401 Plan Endorsement 9801-5611 WSA END
4(h) Specimen Charitable Remainder Unitrust Endorsement
9611-5612 WSA END
4(i) Specimen Free Withdrawal Amount Endorsement
9611-5613 WSA END
4(j) Specimen Additional Waiver of Surrender Charges Rider
9501-5201 WSA
5 Specimen Application Form for Touchstone Variable
Annuity Contract DO-11-IFS-VARI-9805
9 Opinion and Consent of Donald J. Wuebbling, Esq.
10 Consent of PricewaterhouseCoopers LLP.
99 Powers of Attorney - Directors of the Company
<PAGE> 1
Exhibit 1
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
EXECUTIVE COMMITTEE RESOLUTION
JULY 27, 1992
RESOLUTION ESTABLISHING
SEPARATE ACCOUNT
FOR THE VARIABLE ANNUITY
WHEREAS, the Company has decided to develop a variable annuity product; and
WHEREAS, a separate account is needed as a depository of the premiums paid under
such contracts and allocated to the variable account portion of such contracts;
NOW, THEREFORE, BE IT RESOLVED:
A. That the Company establish a separate account pursuant to the
provisions of Section 3907.15, Ohio Revised Code, to be called
the Western-Southern Life Assurance Company Separate Account 1
(the "Separate Account"); and
B. That the purpose of the Separate Account is to receive funds
deposited therein as purchase payments for variable annuity
contracts issued by the Company through the Separate Account
and to invest, manage and deal with such funds in accordance
with the terms of such variable annuity contracts; and
C. That pursuant to Section 3907.15, Ohio Revised Code, the
variable annuity contracts issued in respect of the Separate
Account shall provide that that portion of the assets of the
Separate Account equal to the reserves and other contract
liabilities under all annuities and other contracts identified
with such account shall not be chargeable with liabilities, or
otherwise subject to claims, arising out of any other business
in which the Company may be engaged; and
D. That the Company and the Separate Account shall make
application to the Securities and Exchange Commission (the
"Commission") for the exemption from certain provisions of
Sections 26 and 27 of The Investment Company Act of 1940 (the
"Act") with respect to the mortality and expense risk
assumption charge to be provided for in the variable annuity
contracts; and
E. That the President or any Vice President of the Company be, and
each of them hereby is, authorized, directed and empowered to
file the above mentioned application or applications (and such
amendments thereto as the President or any such Vice President,
or any of them, may deem appropriate) and to take any such
further action in connection therewith as the President or any
such Vice President, or any of them, may deem appropriate, the
filing of such amendments or the taking
<PAGE> 2
of such further action being conclusive evidence that the same
is or are appropriate; and
F. That the officers of the Company be, and each of them hereby
is, authorized, directed and empowered to cause to be filed
with the Commission with respect to the offering of variable
annuity contracts through the Separate Account a registration
statement on Form N-4 under the Act and under the Securities
Act of 1933; and
G. That the officers of the Company be, and each of them hereby
is, authorized, directed and empowered to take any and all
action which, in the judgment of any such officer, is necessary
and appropriate in order to cause such variable annuity
contracts to be eligible for offering and sale under the
securities laws of any jurisdiction in which the Company is
qualified to issue such contracts, including, but not limited
to, making application for and obtaining qualification or
registration under such laws and, in that connection, executing
and filing such documents, including consents to service of
process and making any agreements that may appear necessary,
useful or appropriate with respect thereto the taking of any
such action to be conclusive evidence of the necessity and
appropriateness thereof; and
H. That the officers of the Company be, and each of them hereby
is, authorized, directed and empowered to execute such
additional documents and take such other and further action as
any such officer may deem necessary or appropriate for the
purpose of effecting the transactions contemplated by the
foregoing resolutions, the taking of any such action to be
conclusive evidence of the necessity and appropriateness
thereof.
<PAGE> 1
Exhibit 3(c)
[LOGO] T O U C H S T O N E
-------------------
General Agency Agreement
THIS GENERAL AGENCY AGREEMENT ("Agreement") is made and entered into by and
between TOUCHSTONE SECURITIES, INC., a Nebraska corporation, and its undersigned
affiliated insurance agency (herein jointly and severally referred to as
"Touchstone"); the undersigned Broker-Dealer (herein separately referred to as
"Broker-Dealer"); and the undersigned Life Agency (herein separately referred to
as "Life Agency"). Broker-Dealer and Life Agency are herein jointly and
severally referred to as "General Agent."
THIS AGREEMENT sets forth the terms and conditions under which the parties agree
that Touchstone, having been authorized under a separate Distributor Agreement
with Western-Southern Life Assurance Company ("Company") to obtain and appoint
agents of Company, shall appoint General Agent as a general agent of Company to
solicit for and sell certain variable contracts (the "Contracts") which are
described on the Commission Schedule attached hereto, as the same may be amended
from time to time pursuant to this Agreement.
THE TERM of this Agreement shall commence on the date this Agreement, having
been signed by General Agent, is accepted and executed by Touchstone at its home
office, and shall continue in force until terminated as herein provided.
THIS AGREEMENT includes the attached Terms and Conditions, the attached
Commission Schedule (as amended from time to time), and all other schedules,
exhibits or addenda referencing this Agreement and now or hereafter appended
hereto by Touchstone, all of which are incorporated herein by reference. The
parties agree that this Agreement constitutes the complete and exclusive
statement of the terms and conditions between the parties covering the
performance hereof and cannot be amended, altered or modified except in the
manner provided for in the Terms and Conditions.
All terms and conditions of this Agreement are hereby agreed to by:
GENERAL AGENT: TOUCHSTONE:
BROKER-DEALER
________________________________ TOUCHSTONE SECURITIES, INC.
By:_____________________________ By:____________________________________
Name and Title:_________________ Name and Title:________________________
By:_____________________________ By:____________________________________
Name and Title:_________________ Name and Title:________________________
AND LIFE AGENCY: AND, its affiliated insurance agency:
________________________________
By:_____________________________ By:____________________________________
Name and Title:_________________ Name and Title:________________________
By:_____________________________ By:____________________________________
Name and Title:_________________ Name and Title:________________________
DATE:___________________________ DATE ACCEPTED:_________________________
<PAGE> 2
[LOGO] T O U C H S T O N E
-------------------
General Agent Summary
General Agent Name Tax ID Number
_________________________________________________________________________
General Agent Corporate Address
Number and Street: _____________________________________________________
_____________________________________________________
City: ________________ State: ____ Zip: ________ Telephone: ( ) ______________
FAX: ( ) ____________________
- --------------------------------------------------------------------------------
Individual responsible for insurance and annuity sales (Product Manager)
Name: _______________________________ Telephone: ( ) ____________________
- --------------------------------------------------------------------------------
Administrative key contact
Name: _______________________________ Telephone: ( ) ____________________
- --------------------------------------------------------------------------------
Licensing contact & phone
Name: _______________________________ Telephone: ( ) ____________________
- --------------------------------------------------------------------------------
Commission Checks to be mailed to:
Name: __________________________ Address: ________________________________
City: ________________ State: ______ Zip: _______ Telephone: ( ) ______________
- --------------------------------------------------------------------------------
Number of Agents Number of branch offices
- --------------------------------------------------------------------------------
Send Agent copies of confirms and statements to:
/ / Individual Agent at branch location
(If selected, branch/agent list must be returned with this document.)
/ / Corporate address as follows:
Street: ______________________________
City: ______________________________
State: _____________ Zip: ___________
PLEASE RETURN A COPY OF THE FIRM'S CRD STATUS REPORT WITH THIS DOCUMENT AND
APPLICABLE STATE INSURANCE LICENSES
Send Customer Contracts to:
/ / Agent
/ / Customer
Please return to:
Touchstone Securities, Inc. o P.O. Box 1275 o Cincinnati, Ohio 45201-1275
2
<PAGE> 3
[LOGO] T O U C H S T O N E
-------------------
Commission Schedule
/ / Please enroll our General Agency in the Point-of-Sale Commission Program.
Election of this program will allow individual Agents to choose any of the
following Touchstone or Touchstone II (No Load) or Touchstone Select
commission rates at point-of-sale. (IF THIS OPTION IS CHOSEN, NO FURTHER
SELECTIONS ARE REQUIRED).
IF THE POINT-OF-SALE COMMISSION PROGRAM IS NOT REQUESTED, PLEASE SELECT FROM THE
FOLLOWING COMMISSION OPTIONS:
TOUCHSTONE VARIABLE ANNUITY (contract series 9408-5550 WSA) Commission Option
/ / 7.10% plus .15% annually after 1st Contract Anniversary paid monthly
on Contract Value.
-OR-
/ / 3.30% plus .50% annually after 1st Contract Anniversary paid monthly
on Contract Value.
Touchstone will pay 7.10% as the default commission for the Touchstone
Variable Annuity (contract series 9408-5550 WSA) when the Agent fails to
select a commission option on the application.
WASHINGTON & OREGON COMMISSIONS: 7.10% on purchase payments received
in years 1-7
1.00% on purchase payments received
in years 8+
RULES FOR COMMISSION PAYMENTS
In the event of distribution of Contract Value due to withdrawals in
excess of contract provisions or surrender within twelve months from the
date of receipt of a purchase payment under a Contract, General Agent
shall refund 100% of the commission paid thereon to Touchstone. In the
event of distribution of Contract Value due to withdrawals in excess of
contract provisions within thirteen to eighteen months from the date of
receipt of a purchase payment under a Contract, General Agent shall refund
50% of the commission paid thereon to Touchstone.
TOUCHSTONE II (NO LOAD) VARIABLE ANNUITY (contract series 9408-5570 WSA)
/ / .20% annually after 1st Contract Month paid monthly on Contract Value.
TOUCHSTONE SELECT VARIABLE ANNUITY (contract series 9710-5580 WSA) Commission
Options
/ / Option A Commission Options
Issue Age < 72 6.00%
Issue Age > 72 4.50%
/ / Option B
Issue Age < 72 5.00%
Issue Age > 72 3.50%
Trail Commissions
years 2-6 .25% annually paid monthly
years 7+ 1.00% annually paid monthly
Touchstone will pay 6.00% as the default for the Touchstone Select
Variable Annuity if the agent fails to select a commission option on the
application.
RULES FOR COMMISSION PAYMENTS
In the event that any Contract shall terminate due to the Owner's election to
return a Contract under its "Free Look" provision, General Agent shall refund
100% of the commission paid thereon to Touchstone. The Touchstone Select
Variable Annuity has no other commission chargebacks.
Refund liabilities may be applied against current and future commissions payable
to General Agent.
(CONTINUED)
3
<PAGE> 4
WASHINGTON & OREGON SURRENDER CHARGES
The surrender charge is assessed on each purchase payment and is based
upon the number of years since the purchase payment was received.
<TABLE>
<CAPTION>
Years After Receipt of Purchase Payment
Contract ---------------------------------------
Year 1 2 3 4 5 6 7 8+
---- - - - - - - - --
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 7% 7% 6% 5% 4% 2% 1% 0%
2 7% 7% 6% 5% 4% 2% 1% 0%
3 7% 7% 6% 5% 4% 2% 1% 0%
4 7% 6% 5% 4% 2% 1% 0% 0%
5 6% 5% 4% 2% 1% 0% 0% 0%
6 5% 4% 2% 1% 0% 0% 0% 0%
7 4% 2% 1% 0% 0% 0% 0% 0%
8 2% 1% 0% 0% 0% 0% 0% 0%
9 1% 0% 0% 0% 0% 0% 0% 0%
10+ 0% 0% 0% 0% 0% 0% 0% 0%
</TABLE>
4
<PAGE> 5
[LOGO] T O U C H S T O N E
-------------------
Terms and Conditions of
General Agency Agreement
1. APPOINTMENT. General Agent is hereby appointed, through its
licensed and appointed individual agents, to solicit and procure
applications for the sale of Contracts on behalf of Company in
those states where General Agent is duly licensed to do so and in
those states where Company is authorized to sell such Contracts.
General Agent shall have no exclusive territory for the sale of
the Contracts. Touchstone shall inform General Agent of those
jurisdictions in which the Contracts may be lawfully sold.
Broker-Dealer warrants and represents that, at all times while
this Agreement is in force, it is and will remain registered as a
broker-dealer with the Securities and Exchange Commission (the
"SEC") and a member of the National Association of Securities
Dealers, Inc. (the "NASD"). Life Agency warrants and represents
that, at all times while this Agreement is in force, it is and
will remain licensed as a life insurance agency under the
insurance laws of the various states in which it operates and
Contracts are sold under authority of this Agreement.
2. AUTHORITY TO SOLICIT AND SELL. General Agent shall have the
authority, pursuant to the rules and regulations of Company and
Touchstone, to solicit sales of the Contracts, obtain completed
applications therefor and accept premiums paid thereon. All
applications for the Contracts shall be on forms duly authorized
by Company in accordance with the insurance laws and regulations
of the various states in which such Contracts are sold. All such
applications and the full amount, without setoff, demand or
deduction, of all premiums shall be promptly remitted to Company
in accordance with the rules and regulations of Touchstone and
Company applicable to such transactions.
No solicitation for a Contract shall be made by any person
associated with General Agent unless and until such person has
been duly appointed as an agent of Company in accordance with
applicable insurance laws and regulations. General Agent is not
authorized to solicit for the sale of the Contracts in any
jurisdiction where such product is not duly authorized to be sold.
3. AUTHORITY TO RECOMMEND APPOINTMENT OF AGENTS. General Agent is
authorized to recommend to Touchstone those persons associated
with General Agent who are to be appointed as agents of Company
and who are to be authorized to solicit for the sale of the
Contracts in accordance herewith. General Agent agrees to fulfill
all requirements set forth in the General Letter of Recommendation
attached as Schedule A hereto in conjunction with its submission
of licensing and appointment papers for all proposed agents.
Company shall have absolute discretion to accept or reject such
recommendation for the appointment of any such person
5
<PAGE> 6
as an agent for the sale of the Contracts. Company shall also have
the absolute right to terminate any such person as an agent of
Company. Before any such person approved for appointment as an
agent is permitted to sell the Contracts, such agent,
Broker-Dealer and Life Agency shall have entered into a written
agreement pursuant to which: (i) the agent is appointed as an
agent of Life Agency and a registered representative of
Broker-Dealer; (ii) said agent agrees that his or her selling
activities relating to the Contracts shall be under the
supervision and the control of General Agent; and (iii) that said
agent's right to continue to sell such Contracts is subject to his
or her continued compliance with such agreement and any
procedures, rules or regulations implemented by General Agent.
4. RESPONSIBILITIES OF AGENT. In addition to the responsibilities set
forth in Paragraphs 2 and 3 above, General Agent shall:
(a) make reasonable efforts to maintain the Contracts in force
and provide reasonable assistance to owners of the
Contracts,
(b) be governed strictly by all rules and instructions of
Company and Touchstone and observe and comply with all
applicable insurance laws and regulations,
(c) train and supervise its agents to insure that purchase of
a Contract is not recommended to an applicant in the
absence of reasonable grounds to believe that the purchase
of the Contract is suitable for that applicant. While not
limited to the following, a determination of suitability
shall be based on information furnished to an agent after
reasonable inquiry of such applicant concerning the
applicant's insurance and investment objectives, other
security holdings, financial situation and needs, and the
likelihood that the applicant will continue to make any
premium payments contemplated by the Contracts and will
keep the Contract in force for a sufficient period of time
so that Company's acquisition costs are amortized over a
reasonable period of time,
(d) insure that any offer of a Contract made by a sales agent
of General Agent will be made only by means of a currently
effective prospectus,
(e) keep such records in such form as may be reasonably
required by Company and Touchstone and/or as required
under applicable laws and regulations. Such records and
forms and all supplies furnished to the General Agent by
Company shall remain the property of Company and shall be
subject to examination and/or possession at any time by
Company or its authorized representatives,
(f) pay expenses incurred in the performance of this
Agreement,
(g) deliver Contracts immediately, and
6
<PAGE> 7
(h) promptly notify Touchstone and Company in writing of any
customer complaint or notice of regulatory investigation
related to the Contracts, Broker-Dealer, Life Agency, or
any activities contemplated by this Agreement, of which
General Agent becomes aware.
5. LIMITATIONS OF AUTHORITY. The authority granted to General Agent
does not permit it or any of its sales agents to:
(a) make, alter or discharge any contract to which Company or
Touchstone is a party,
(b) waive or modify any terms, rates, conditions or
limitations of any Contract,
(c) adjust or settle any claim unless specifically directed by
Company or to admit liability on any claim unless
authorized to do so in writing by Company,
(d) enter into any legal proceedings pertaining to Company's
or Touchstone's business without prior written consent.
Company or Touchstone shall not be responsible for any
expenses incurred as a result of these proceedings.
(e) exercise any authority on behalf of Touchstone or Company
other than as authorized by this Agreement,
(f) attempt to bind Touchstone or Company by any promise or
agreement,
(g) incur any debt, expense, or liability in Company's or
Touchstone's name or account without prior written
consent,
(h) pay or allow or offer to pay or allow as an inducement to
any person to purchase, any rebate of premium or
consideration or any inducement not specified in the
Contract,
(i) allow a writing agent to sign an application for a
Contract, as the writing agent, unless such application
was personally taken by such agent in the presence of the
applicant, or
(j) engage in any activity prohibited by federal or state laws
regulating financial institutions.
6. TRAINING, COMPLIANCE AND LICENSING. General Agent shall be
responsible for the training and supervision of all persons
appointed as agents hereunder. General Agent and all persons
associated with General Agent shall, in the solicitation and sale
of the Contracts, comply with all written procedures, rules and
regulations of Touchstone or Company applicable thereto. General
Agent and all persons associated
7
<PAGE> 8
with General Agent shall use only those sales, advertising and
promotional materials which have been approved in writing by
Touchstone.
General Agent shall have the responsibility for compliance with
all laws, rules and regulations applicable to the solicitation and
sale of the Contracts by General Agent and by all persons
associated with General Agent.
General Agent, its affiliates, its officers, directors, employees,
and sales personnel, shall obtain and maintain all licenses,
registrations, and appointments required by any law, regulations,
or other requirement of the SEC, the NASD, or of any jurisdiction
where the Contracts are to be sold. General Agent shall
immediately notify Touchstone if any sales persons associated with
it cease to be registered representatives of Broker-Dealer or if
General Agent is disqualified for continued membership with the
NASD or registration with the SEC.
7. COMPENSATION. General Agent shall receive commissions on premiums
on Contracts issued as a result of applications obtained by it and
accepted by Company. Commissions payable hereunder are specified
in the Commission Schedule which is attached hereto and
incorporated herein by reference. Such Commission Schedule may be
amended or modified at any time by Touchstone with prior written
notice. Any such amendment or modification shall apply only to
applications for Contracts which are obtained by General Agent
after the date of such modification or amendment. All compensation
due to General Agent and its sales persons under this Agreement
shall be paid to Broker-Dealer on behalf of General Agent
(assuming Broker-Dealer and Life Agency are separate persons), or
as otherwise required by law. As between Broker-Dealer and Life
Agency, Life Agency hereby appoints Broker-Dealer as its agent on
its behalf to receive and process commission payments that are
required by applicable law to be paid to Life Agency.
Notwithstanding the foregoing, Broker-Dealer agrees to account for
all commissions paid under this Agreement from the sale of
Contracts in accordance with the applicable reporting requirements
of the SEC and the NASD.
If Company, for any reason, refunds any premium or part of a
premium on any Contract, any commissions paid the General Agent on
such premiums that are to be refunded under the Schedule of
Commissions shall at Touchstone's option be immediately repaid to
Touchstone or, at the option of Touchstone, be deducted from any
compensation payable to the General Agent.
General Agent covenants that all necessary contractual
arrangements shall be in place to allow Touchstone to pay General
Agent for business produced by sales persons associated with
General Agent in the jurisdictions in which they hold licenses.
General Agent agrees to pay all compensation, if any, due to any
person, including sales persons associated with the General Agent,
with respect to business produced pursuant to this Agreement.
8
<PAGE> 9
The payment of compensation shall always be subject to the General
Agent and/or its sales persons being properly licensed in the
designated territory.
8. FIDELITY BOND AND OTHER LIABILITY COVERAGE. General Agent
represents that all directors, officers, agents, employees and
associated persons who are licensed pursuant to this Agreement as
Company Agents for state insurance law purposes or who have access
to funds of Company, including but not limited to, funds submitted
with applications for the Contracts are and shall be covered by a
blanket fidelity bond, including coverage for larceny and
embezzlement, issued by a reputable bonding company. This bond
shall be maintained by General Agent at its expense. Such bond
shall be, at a minimum, of the form, type and amount required
under NASD rules, endorsed (if necessary) to extend coverage to
transactions relating to the Contracts. Touchstone may require
evidence satisfactory to it, that such coverage is in force and
General Agent shall give prompt written notice to Touchstone of
any notice of cancellation of the bond or change of coverage.
General Agent hereby assigns any proceeds received from a fidelity
bonding company, error and omissions or other liability coverage,
to Touchstone or Company as their interest may appear, to the
extent of their loss due to activities covered by the bond, policy
or other liability coverage. If there is any deficiency amount,
whether due to a deductible or otherwise, General Agent shall
promptly pay such amounts on demand. This paragraph shall not be
construed to limit the indemnification provided in Section 9
hereof.
9. INDEMNIFICATION. General Agent shall indemnify and hold Touchstone
and Company harmless from any liability arising from any act or
omission of General Agent or of any officer, director, employee of
General Agent or of sales persons associated with General Agent.
General Agent shall indemnify and hold Touchstone and Company
harmless from any claim by a sales person associated with General
Agent for compensation due or to become due on account of such
person's sale of Contracts. General Agent expressly authorizes
Touchstone to charge against all compensation due or to become due
to General Agent under this Agreement any monies paid or
liabilities incurred by Touchstone or Company under this Section
9.
Touchstone shall indemnify and hold General Agent harmless from
any liability resulting from damages sustained by a Contract owner
caused by acts or omissions of Touchstone; except to the extent
General Agent's acts or omissions caused such liability.
Indemnification by Touchstone is subject to the conditions that
General Agent promptly notify Touchstone of any claim or suit made
against General Agent, and that General Agent allow Touchstone to
make such investigation, settlement, or defense thereof as
Touchstone deems prudent.
9
<PAGE> 10
10. ENTIRE AGREEMENT. This Agreement is the complete and exclusive
statement of the agreement between the parties as to the subject
matter hereof which supersedes all proposals or agreements, oral
or written, and all other communications or letters of intent
between the parties related to the subject matter of this
Agreement.
11. MODIFICATION OF AGREEMENT. This Agreement can only be modified by
a written agreement duly signed by the persons authorized to sign
agreements on behalf of the parties. Variance from the terms or
conditions of this Agreement or any order or other written
notification will be of no effect.
12. SEPARABILITY OF PROVISIONS. If any provision or provisions of this
Agreement shall be held to be invalid, illegal, or unenforceable,
the validity, legality, and enforceability of the remaining
provisions shall not in any way be affected or be impaired
thereby.
13. ASSIGNMENT. This Agreement and the rights, duties, and obligations
of the parties hereto shall not be assignable by either party
hereto without the prior written consent of the other, and any
purported assignment shall be void.
14. WAIVER. No waiver by either party of any default by the other in
the performance of any promise, term, or condition of this
Agreement shall be construed to be a waiver by such party of any
other or subsequent default in performance of the same or any
other covenant, promise, term, or condition hereof. No prior
transactions or dealings between the parties shall be deemed to
establish any custom or usage waiving or modifying any provision
hereof.
15. NOTIFICATION OF CLAIMS, DEMANDS, OR ACTIONS. Each party hereto
shall promptly notify the other in writing of any claims, demands,
or actions having any bearing on this Agreement.
16. PERFORMANCE IN ACCORDANCE WITH LAW. Each party agrees to perform
its obligations hereunder in accordance with all applicable laws,
rules, and regulations now or hereafter in effect. Notwithstanding
the imposition of liabilities and obligations on the Broker-Dealer
and Life Agency acting together as General Agent under this
Agreement (if Broker-Dealer and Life Agency are separate persons),
nothing herein contained shall be construed to relieve
Broker-Dealer of any of its responsibilities or obligations to
comply with all applicable federal and state securities laws and
regulations in its performance of this Agreement; nor shall
anything herein contained be construed to relieve Life Agency of
its responsibilities or obligations to comply with all applicable
state insurance laws and regulations in its performance of this
Agreement.
17. BINDING AGREEMENT. This Agreement shall be binding upon and inure
to the benefit of the parties hereto, their successors, and
permitted assigns.
10
<PAGE> 11
18. ACTS BEYOND THE CONTROL OF THE PARTIES. No liability shall result
to either party, nor shall either party be deemed to be in default
hereunder, as a result of delay in its performance or from its
non-performance hereunder caused by circumstances beyond its
control, including but not limited to: act of God, act of war,
riot, epidemic, fire, flood, or other disaster, or act of
government. Nevertheless, the party shall be required to be
diligent in attempting to remove such cause or causes.
19. RELATIONSHIP OF THE PARTIES. Each of the parties will act as an
independent contractor under the terms of this Agreement and
neither is now, or in the future, an agent, or a legal
representative of the other for any purposes. Neither party has
any right or authority to supervise or control the activities of
the other party's employees in connection with the performance of
this Agreement or to assign or create any application of any kind,
express, or implied, on behalf of the other party or to bind it in
any way, to accept any service of process upon it or to receive
any notice of any nature whatsoever on its behalf.
20. TERMINATION. This Agreement shall automatically terminate upon
breach by any party of any terms and conditions hereof, or upon
the dissolution, bankruptcy, or insolvency of any party. This
Agreement may be terminated without cause by any party at any time
upon 30 days prior written notice. Termination shall not affect
General Agent's right to any compensation earned on premiums
received and accepted by Company prior to the effective date of
such termination, nor shall termination affect the obligations set
forth in Paragraph 9.
21. GOVERNING LAW; CONSTRUCTION. This Agreement shall be governed by
and interpreted in accordance with the laws of the State of Ohio.
Whenever the context requires, all words used in the singular
shall be deemed to include the plural and vice versa, and each
gender shall include any other gender.
22. CAPTIONS. Captions contained in this Agreement are for reference
purposes only and do not constitute part of this Agreement.
23. NOTICE. All notices which are required to be given or submitted
pursuant to his Agreement shall be in writing and shall be deemed
given when deposited with the United States Postal Service,
postage prepaid, registered or certified mail, return-receipt
requested, to the last address of record of the party being
notified which is maintained by the other party in the ordinary
course of business.
11
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[LOGO] T O U C H S T O N E
-------------------
Schedule A
To Terms and Conditions of
General Agency Agreement
GENERAL LETTER OF RECOMMENDATION: General Agent hereby certifies to Touchstone
and Company that all of the following requirements will be fulfilled in
conjunction with the submission of licensing/appointment papers for all
applicants as agents ("applicant") submitted by General Agent. General Agent
will, upon request, forward proof of compliance with same to Touchstone and
Company in a timely manner.
1. We have made a thorough and diligent inquiry and investigation
relative to each applicant's identity, residence and business
reputation and declare that each applicant is personally known to
us, has been examined by us, is known to be of good moral
character, has a good business reputation, is reliable, is
financially responsible and is worthy of a license. Each
individual is trustworthy, competent, and qualified to act as an
agent for Company, and to hold himself out in good faith to the
general public. We vouch for each applicant.
2. We have on file a B-300, B-301 or U-4 form which was completed by
each applicant. We have fulfilled all the necessary investigative
requirements for the registration of each applicant as a
registered representative through our NASD member firm, and each
applicant is presently registered as an NASD registered
representative.
The above information in our files indicates no fact or condition
which would disqualify the applicant from receiving a license, and
all the findings of all investigative information is favorable.
3. We certify that all educational requirements have been met for the
specific state in which each applicant is requesting a license,
and that all such persons have fulfilled the appropriate
examination, education and training requirements.
4. If the applicant is required to submit his or her picture,
signature, and securities registration in the state in which he or
she is applying for a license, we certify that those items
forwarded to Touchstone and Company are those of the applicant and
the securities registration is a true copy of the original.
5. We hereby warrant that the applicant is not applying for a license
with Company in order to place insurance chiefly or solely on his
or her life or property, lives or property of his or her
relatives, or property or liability of his or her associates.
6. We certify that each applicant will receive close and adequate
supervision, and that we will make inspection when needed of any
or all risks written by these applicants, to the end that the
insurance interest of the public will be properly protected.
12
<PAGE> 13
7. We will not permit any applicant to transact insurance business as
an agent until duly licensed therefor. No applicants have been
furnished supplies, nor have any applicants been permitted to
write, solicit business or act as an agent in any capacity, and
they will not be so permitted until the certificate of authority
or license applied for is received.
8. We certify that Life Agency, Broker-Dealer and applicant shall
have entered into a written agreement pursuant to which: (i)
applicant is appointed an agent of Life Agency and a registered
representative of Broker-Dealer, (ii) applicant agrees that his or
her selling activities relating to all Contracts shall be under
the supervision and control of General Agent; and (iii) that
applicant's right to continue to sell such Contracts is subject to
his or her continued compliance with such agreement and any
procedures, rules or regulations implemented by General Agent.
13
<PAGE> 14
[LOGO] T O U C H S T O N E
-------------------
Touchstone Personalized Asset
Allocation Agreement
The purpose of this Agreement is to set forth certain arrangements between the
General Agent ("General Agent") signing below and Touchstone Securities, Inc.
("Underwriter"), which relate to the use of ProRep(TM) Software in the purchase
and redemption of units of the Touchstone and Touchstone II Variable Annuity
(the "VA") by clients of the General Agent ("Clients").
1. INTENDED USE OF PROREP(TM) SOFTWARE. From time to time the
Underwriter may supply ProRep(TM) Software, brochures and other
materials, including model portfolio mixes and investor
questionnaires, to General Agent to assist General Agent in
formulating an asset allocation program for Clients. Such
materials are designed to be used and evaluated by the General
Agent, as an investment professional, in light of each Client's
individual circumstances, and are not to be relied upon as
investment advice of the Underwriter.
2. PURCHASE AND REDEMPTION OF UNITS. Any purchase or redemption of VA
units pursuant to the use of ProRep(TM) Software or the Touchstone
Personalized Asset Allocation program shall be conducted in
compliance with the terms and conditions of the VA prospectuses
then in effect. Any such purchase or redemption shall be made
solely upon the instructions of the General Agent or the Client.
Neither the VA nor the Underwriter have any investment authority
over any Client's account.
3. REPRESENTATIONS AND WARRANTIES BY THE GENERAL AGENT. The General
Agent hereby represents and warrants that: (a) it is a registered
broker dealer under the Securities Exchange Act of 1934 and is
registered in any state in which it is required to be so
registered, and that it shall comply with all applicable federal
and state laws in conducting its activities, including rules,
regulations and interpretations by governmental and regulatory
bodies and self-regulatory organizations having jurisdiction;
AND/OR (b) it is a registered investment advisor under the
Investment Advisers Act of 1940 and is registered in any state in
which it is required to be so registered, and that it shall comply
with all applicable federal and state laws in conducting its
activities, including rules, regulations and interpretations by
governmental and regulatory bodies and self-regulatory
organizations having jurisdiction.
4. PROMOTIONAL MATERIALS. The General Agent shall provide the
Underwriter with a copy of any agreements or materials referring
to the VA and prepared by the General Agent. All promotional
materials making reference to the VA are subject to approval by
the VA or Distributor before distribution. Notwithstanding the
foregoing, neither the VA nor the Underwriter are responsible for
the content of any materials prepared by any General Agent.
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<PAGE> 15
5. INDEMNIFICATION. The General Agent shall indemnify and hold
harmless the VA Underwriter and Transfer Agent against any loss,
cost or expense (including legal fees) arising out of the purchase
or redemption of VA units for Client Accounts or the transfer or
disbursement of Client assets in accordance with the instructions
of the General Agent.
The parties hereto have entered into this Agreement on
Date ___________________, 19______
GENERAL AGENT:
_______________________________ (Name of Broker/Dealer)
_______________________________ (Name of Registered Investment
Advisor, if applicable)
_______________________________ By (Signature)
_______________________________ (Print Name and Title)
TOUCHSTONE SECURITIES, INC.
______________________________ By (Signature)
15
<PAGE> 1
Exhibit 4(a)
[WESTERN-SOUTHERN LIFE LOGO]
Western-Southern Life Assurance Company
Agrees to provide the benefits and rights set out on this and the pages
that follow which are a part of the Contract. They are provided as consideration
for the application and purchase payment(s) for the Contract.
The Contract, the attached application, and any amendments, riders or
endorsements make up the entire Contract. The Contract does not take effect
until the Contract Date and until we have received the initial purchase payment.
TEN DAY FREE LOOK. Please examine the Contract. If you are not
satisfied, you may cancel the Contract by returning it to us at our Variable
Annuity Service Center listed on page 3 within 10 days after you receive it. We
will refund the Contract Value computed at the end of the Valuation Period
during which the Contract was received, plus any premium tax deducted from the
purchase payment, within 7 days of our receipt of the Contract.
/s/ JAMES N. CLARK /s/ JOHN F. BARRETT
Secretary President and
Chief Executive Officer
This Annuity Contract is a legal contract between the Contract Owner and the
Company.
READ YOUR CONTRACT CAREFULLY
All values provided by this Contract, when based on the investment
experience of the Variable Account, are variable and are not guaranteed as to
fixed dollar amount. These values may increase or decrease to reflect the
investment experience of the Variable Account.
Issued by a Stock Company
Home Office: 400 Broadway, Cincinnati, Ohio 45202
FLEXIBLE PURCHASE PAYMENT DEFERRED VARIABLE ANNUITY
Income Payable at Income Date
Death Benefit Prior to Income Date
Non-Participating
<PAGE> 2
CONTENTS
DATA PAGE..................................................... 3
DEFINITIONS................................................... 4
ACCUMULATION PROVISIONS....................................... 4
Purchase Payments........................................ 4
Allocation of Purchase Payments.......................... 5
Fixed Account............................................ 5
Fixed Account Value................................. 5
Interest Credited................................... 5
Variable Account......................................... 5
Variable Account Value.............................. 5
Sub-Account......................................... 5
Accumulation Units.................................. 6
Net Investment Factor............................... 6
Transfers................................................ 7
CONTRACT CHARGES AND
DEDUCTIONS.................................................... 7
Contract Maintenance Charge.............................. 7
Mortality and Expense Risk Charge........................ 8
Contract Administration Charge........................... 8
Premium Tax Deductions................................... 8
Surrender Charge......................................... 8
SURRENDER AND WITHDRAWAL
PROVISIONS.................................................... 8
General Surrender Provisions............................. 8
Partial Withdrawals...................................... 8
Surrender................................................ 9
Surrender Charge......................................... 9
Free Withdrawal Amount................................... 9
Systematic Withdrawal Plan............................... 9
Reduction of Surrender Charge............................ 9
Delay in Payment......................................... 10
OWNERSHIP PROVISIONS.......................................... 10
Contract Owner........................................... 10
Joint Owner.............................................. 10
Contingent Owner......................................... 10
Beneficiary.............................................. 10
Assignment............................................... 10
DEATH PROVISIONS.............................................. 11
Death of Owner........................................... 11
Death of Annuitant....................................... 11
Death Benefit............................................ 11
Required Distributions................................... 11
Priority of Beneficiaries................................ 12
PAYOUT PROVISIONS............................................. 12
Income Date.............................................. 12
Payout Plans............................................. 12
Additional Interest...................................... 14
Choosing a Payout Plan................................... 14
Minimum Installment...................................... 15
Due Date................................................. 15
GENERAL PROVISIONS............................................ 15
Reports.................................................. 15
Statements In Application................................ 15
Modification Of Contract................................. 15
Incontestability......................................... 15
Incorrect Age Or Sex..................................... 15
Place Of Payment......................................... 15
Submission Of Contract................................... 15
Creditors' Claims........................................ 16
Proof Of Facts........................................... 16
Non-participating........................................ 16
2
<PAGE> 3
DATA PAGE
Owner Region Number
Annuitant Annuitant's
Birthdate
Contract Number Contract Date
Initial Purchase Income Date
Payment
Western-Southern Life Assurance Company
Special Markets Service Center
P.O. Box 2850
Cincinnati, Ohio 45201-2850
ALLOCATION OF INITIAL PURCHASE PAYMENT (percentages must be in whole numbers not
less than 5% and must total 100%):
VARIABLE ACCOUNT SUB-ACCOUNTS: FIXED ACCOUNT: 50%
Emerging Growth Sub-Account
International Equity Sub-Account
Growth & Income Sub-Account
Balanced Sub-Account 30%
Income Opportunity Sub-Account
Bond Sub-Account
Standby Reserves Sub-Account 20%
FIXED ACCOUNT INITIAL INTEREST RATE: (Effective Annual Rate) through
The interest rate credited to subsequent purchase payments allocated to
the Fixed Account will be the current rate in effect on the date the payment is
received. It will be guaranteed for one year from the date of receipt of payment
and will never be less than 3%.
3
<PAGE> 4
================================================================================
DEFINITIONS
================================================================================
"The Company", "we", "our" and "us", is Western-Southern Life Assurance Company.
"Accumulation Unit" is an accounting unit of measure used to calculate the
Variable Account Value prior to the Income Date.
"Annuitant" is the natural person whose life is used to determine the duration
and amount of any annuity payments.
"Beneficiary" is the person, persons or entity to whom the death benefit will be
paid if the Annuitant dies before the Income Date.
"Contract Value" is the sum of the Variable Account Value and the Fixed Account
Value.
"Contract Year" is a year starting with the Contract Date indicated on page 3 or
with a Contract Anniversary. A "Contract Anniversary" is the same day and month
as the Contract Date in each subsequent year.
"Fixed Account" is an option under this Contract where purchase payments are
allocated to the general account of the Company at a guaranteed interest rate.
"Income Date" is the date annuity payments begin. The Income Date is shown on
page 3 and can be changed by written notice to us.
"Owner" is the person, persons or entity having all rights under this Contract
unless otherwise provided. If there are Joint Owners they own the Contract
equally with a right of survivorship. "Contingent Owner" is the person, persons
or entity who will own the Contract following the Owner's death (or the death of
both Joint Owners).
"Portfolio" is an investment portfolio of an open-end management investment
company registered under the Investment Company Act of 1940.
"Qualified Contracts" are Contracts purchased in connection with a plan that
qualifies for favorable tax treatment under Sections 401, 403(b) or 408 of the
Internal Revenue Code.
"Sub-Account" is a division of the Variable Account which invests in a
Portfolio. Purchase payments allocated to the Variable Account are further
allocated to one or more of these Sub-Accounts, as designated by the Owner.
"Surrender Value" is the Contract Value less any surrender charge and less the
Contract Maintenance Charge.
"Valuation Date" is each day on which valuation of the Variable Account
Sub-Accounts is required by applicable law, including every day that the New
York Stock Exchange is open.
"Valuation Period" is the period of time beginning at the close of a Valuation
Date and ending at the close of the next succeeding Valuation Date.
"Variable Account" is an option under this Contract where purchase payments are
allocated to a separate investment account of the Company.
"You" and "your" refer to the Owner or Owners if there are Joint Owners.
================================================================================
ACCUMULATION PROVISIONS
================================================================================
PURCHASE PAYMENTS
The initial purchase payment may not be less than $2,000. For Qualified
Contracts, the minimum initial purchase payment is $1,000. However,
monthly purchase payments of not less than $50 will be permitted if
payments are made under an automatic or scheduled installment plan. If
no purchase payments have been received for 2 full years, and both
4
<PAGE> 5
(a) the total purchase payments less any partial withdrawals, and (b)
the Contract Value, are less than $2,000, the Company will, after 14
days written notice to you, terminate this Contract and pay you the
Surrender Value.
Subsequent purchase payments must be at least $100 (at least $50 if
made under an automatic or scheduled installment plan), and may be made
at any time.
The total of all purchase payments under this Contract may not exceed
$500,000 without prior approval of the Company.
ALLOCATION OF PURCHASE PAYMENTS
You elect to have purchase payments allocated to the Fixed Account
and/or one or more Sub-Accounts of the Variable Account. Each
allocation must be in whole percentages of at least 5%. The sum of the
allocation percentages must equal 100%.
The allocation of the initial purchase payment is set forth on page 3.
Additional purchase payments will be allocated in the same manner as
your initial purchase payment unless changed by written request. All
purchase payments received after a change in allocation will be
invested in the same manner as your most recent allocation unless you
instruct otherwise in writing.
FIXED ACCOUNT
The Fixed Account is an option under this Contract where purchase
payments are allocated to the general account of the Company at a
guaranteed interest rate.
FIXED ACCOUNT VALUE
The Fixed Account Value is equal to:
o The sum of all purchase payments allocated to the Fixed Account;
plus
o Any Variable Account Value transferred to the Fixed Account; plus
o Interest credited to the Fixed Account; less
o Any amounts transferred from the Fixed Account to the Variable
Account; less
o Any amounts withdrawn for charges, deductions or surrenders.
INTEREST CREDITED
The Company will credit interest to each purchase payment allocated to
the Fixed Account at the interest rate in effect when such purchase
payment was received. That interest rate will be guaranteed for one
year from the date of receipt. At the end of that year and at the end
of each successive one year period, the Company will declare a new
interest rate applicable for that purchase payment which will be
guaranteed for the following year. The effective annual interest rate
will never be less than 3%.
The Company will credit interest on amounts transferred to the Fixed
Account from the Variable Account in the manner stated above as of the
date of transfer.
VARIABLE ACCOUNT
The Variable Account is an option under this Contract where purchase
payments are allocated to a separate investment account of the Company.
Assets of the Variable Account are the property of the Company and will
be used to provide values and benefits under this Contract and similar
contracts. The Variable Account may not be charged with liabilities
arising out of any other business the Company may conduct.
VARIABLE ACCOUNT VALUE
The Variable Account Value is equal to the current value of all
Accumulation Units in Sub-Accounts to which Contract Value is
allocated.
SUB-ACCOUNT
The Variable Account is divided into Sub-Accounts, each of which
invests in a Portfolio. Purchase payments are allocated to one or more
of these Sub-Accounts as designated by you.
5
<PAGE> 6
The Company may from time to time make additional Sub-Accounts
available. These Sub-Accounts will invest in investment portfolios that
the Company deems suitable for the Contracts. The Company also has the
right to eliminate Sub-Accounts from the Variable Account, to combine
two or more Sub-Accounts, or to substitute a new Portfolio or similar
investment option for the Portfolio in which a Sub-Account invests. A
substitution may become necessary if, in the Company's judgment, the
Portfolio or other investment option no longer suits the purposes of
the Contracts. This may happen due to unsatisfactory investment
performance, a change in laws or regulations, a change in a Portfolio's
investment objectives or restrictions, because the Portfolio is no
longer available for investments, or for some other reason. The Company
will obtain prior approval from the SEC to the extent required and any
other required approvals before making such a change or substitution.
ACCUMULATION UNITS
The Company will use amounts allocated or transferred to a Sub-Account
to buy Accumulation Units. The number of Accumulation Units is
determined by dividing the amount allocated or transferred to the
Sub-Account by the Accumulation Unit Value for the Sub-Account for the
Valuation Period during which the purchase payment was received or the
transfer was made.
The Accumulation Unit Value for each Sub-Account was arbitrarily set at
$10 when the first Portfolio interest was purchased by the Sub-Account.
The Accumulation Unit Value for any subsequent Valuation Period is
equal to:
o The Accumulation Unit Value for the Sub-Account for the immediately
preceding Valuation Period; multiplied by
o The Net Investment Factor for the Sub-Account for such subsequent
Valuation Period.
NET INVESTMENT FACTOR
The Net Investment Factor is an index applied to measure the investment
performance of a Sub-Account from one Valuation Period to the next. The
Net Investment Factor may be greater or less than one; therefore, the
Accumulation Unit Value may increase or decrease.
For all Sub-Accounts (except the Growth & Income Sub-Account and the
Bond Sub-Account), the Net Investment Factor for each Sub-Account for
any Valuation Period is determined by dividing (a) by (b) and
subtracting (c) from the result, where
(a) is:
(1) the net asset value per share of the corresponding Portfolio
at the end of the current Valuation Period, plus
(2) the per share amount of a dividend or capital gain
distribution made by the Portfolio on shares held in the
Sub-Account if the "ex-dividend" date occurs during the
current Valuation Period, plus or minus
(3) a per share charge or credit for any taxes reserved, which is
determined by the Company to have resulted from the investment
operations of the Sub-Account during the current Valuation
Period; and
(b) is:
(1) the net asset value per share of the corresponding Portfolio
at the end of the immediately preceding Valuation Period, plus
or minus
(2) a per share charge or credit for any taxes reserved for the
immediately preceding Valuation Period; and
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<PAGE> 7
(c) is:
a factor representing the charges deducted from the
Sub-Account on a daily basis for the daily portion of the
annual Mortality and Expense Risk Charge (1.20%) and the
annual Contract Administration Charge (0.15%).
For the Growth & Income Sub-Account and the Bond Sub-Account, the Net
Investment Factor for any Valuation Period is equal to one plus the net
result of (a) divided by (b) where:
(a) is the accrued gain or loss in the corresponding Sub-Account
for the Valuation Period, including investment income, capital
gains and losses, adjusted by:
(1) a charge to the Sub-Account on a daily basis representing
the portion of the annual Mortality and Expense Risk
Charge (1.20%) and the annual Contract Administration
Charge (0.15%) that is allocable to the Sub-Account for
the Valuation Period, and
(2) a charge or credit to the Sub-Account for any tax charge
or tax credit determined by the Company to have resulted
from the investment operations of the Sub-Account during
the Valuation Period; and
(b) is the value of the Sub-Account as of the close of the
immediately preceding Valuation Period.
TRANSFERS
You may transfer all or a portion of the Contract Value among the
Sub-Accounts and the Fixed Account. A transfer request must be in
writing unless telephone transfer authorization has been received and
approved by the Company. Transfers must be in amounts not less than
$250 and may be made:
o among Sub-Accounts once every thirty days;
o from one or more Sub-Accounts to the Fixed Account once per
Contract Year; and
o from the Fixed Account to one or more Sub-Accounts once per
Contract Year, restricted to a maximum of 25% of the Fixed Account
Value.
When transferring Contract Value to more than one Sub-Account, not less
than 5% of the total amount being transferred can be directed to each
such Sub-Account.
We may at any time revoke or modify the transfer provisions. Any change
will be confirmed in writing to you.
================================================================================
CONTRACT CHARGES AND DEDUCTIONS
================================================================================
The following contract charges may be imposed and are designed to
reimburse the Company for expenses incurred that relate to the
Contract. The Company guarantees that these charges will not increase,
with the exception of the premium tax deduction.
CONTRACT MAINTENANCE CHARGE
On each Contract Anniversary prior to the Income Date we will deduct a
Contract Maintenance Charge. The charge will also be deducted on any
date that is not a Contract Anniversary on which you fully surrender
the Contract or on the Income Date. The Contract Maintenance Charge for
the first 10 Contract Years is $35. After the 10th Contract
Anniversary, the Contract Maintenance Charge is the lesser of (a) $35,
and (b) .17% of the Contract Value.
7
<PAGE> 8
MORTALITY AND EXPENSE RISK CHARGE
On each Valuation Date we will deduct from the Accumulation Unit Value
a Mortality and Expense Risk Charge equal to a percentage of such value
that is the daily equivalent of an effective annual rate of 1.20%. The
Company assumes a "mortality risk" from our promise to pay a death
benefit prior to the Income Date and from our obligation to make
annuity payments to each annuitant regardless of how long he or she
lives. For assuming this risk, we deduct a charge equal to an annual
rate of .80% of the assets in the Sub-Account. The Company assumes an
"expense risk" from the possibility that amounts deducted for
administrative expenses may be insufficient to cover the actual costs.
For assuming this risk, we deduct a charge at an annual rate of .40% of
the assets in the Sub-Account.
CONTRACT ADMINISTRATION CHARGE
On each Valuation Date we will deduct from the Accumulation Unit Value
a Contract Administration Charge equal to a percentage of such value
that is the daily equivalent of an effective annual rate of .15%.
PREMIUM TAX DEDUCTIONS
The Company will deduct the amount of any premium taxes levied by a
state or any other governmental entity. The Company currently deducts
the applicable amount of premium taxes from the Contract Value on the
Income Date except in those states which require such taxes to be paid
when purchase payments are made. In those states, the Company deducts
the applicable amount of premium taxes upon receipt of a purchase
payment.
SURRENDER CHARGE
At the time of a surrender or withdrawal from the Contract Value and on
the Income Date the Company may deduct a percentage of the amount
surrendered or withdrawn as a surrender charge. See Surrender and
Withdrawal Provisions below.
================================================================================
SURRENDER AND WITHDRAWAL PROVISIONS
================================================================================
GENERAL SURRENDER PROVISIONS
The Owner may withdraw part or surrender all of the Contract Value at
any time this Contract is in force and prior to the earlier of the
Income Date and the Annuitant's death, subject to the conditions set
forth below. The withdrawal or surrender will be effective on the
Valuation Date on or next following the date we receive your request at
our Variable Annuity Service Center. The Company is not responsible for
the tax consequences of any withdrawals or surrender.
PARTIAL WITHDRAWALS
You may request in writing to withdraw part of the Contract Value in
amounts not less than $250. Your request must be received before the
Income Date. If the Contract Value is reduced to below $2,000 by a
partial withdrawal, the Company reserves the right to pay the total
Surrender Value to you in a lump sum. Such payment will terminate this
Contract and all obligations under this Contract. The amount withdrawn
from the Contract Value will include any applicable surrender charge.
The Company will process the withdrawals, unless instructed otherwise,
by liquidating, on a prorata basis, Accumulation Units from all
Sub-Accounts in which Contract Value is allocated and value from the
Fixed Account.
8
<PAGE> 9
SURRENDER
The Surrender Value is the amount that will be paid if the full
Contract Value is surrendered. When written request for surrender and
the Contract are received, the Company will pay:
o the Contract Value on the date the surrender is effective; less
o any surrender charge which applies; less
o any Contract Maintenance Charge which applies.
SURRENDER CHARGE
If part or all of the Contract Value is withdrawn or surrendered or if
annuity payments begin within the first seven Contract Years, a
surrender charge will be deducted except as described below. The
surrender charge is assessed on each purchase payment and is based upon
the number of years since the purchase payment was received. For the
purpose of calculating any surrender charge, purchase payments will be
deemed to be withdrawn first and in the order they were received before
any amounts in excess of purchase payments are withdrawn from the
Contract Value. (Note - for tax purposes, withdrawals may be treated
differently.)
The applicable surrender charge percentages are: 7% in the first year
following receipt of each purchase payment, 7% in year 2, 6% in year 3,
5% in year 4, 4% in year 5, 2% in year 6, 1% in year 7 and 0%
thereafter. The surrender charge will be waived upon the death of the
Annuitant or, if at least two years after the Contract Date, payments
begin under one of the plans allowed in the Payout Provisions. Such a
plan must have payments which will be made for at least five years.
In any event, the surrender charge will be no more than 7% of the
lesser of: (1) the total of all purchase payments made within 84 months
prior to the date of request for surrender or withdrawal; or (2) the
amount surrendered or withdrawn.
FREE WITHDRAWAL AMOUNT
You may withdraw, without a surrender charge, an amount equal to 10% of
all purchase payments not already withdrawn which were made more than
one year and less than seven years prior to the date of surrender or
withdrawal. This free withdrawal privilege is non-cumulative and
available each Contract Year for eligible purchase payments not already
withdrawn. Free withdrawal amounts are deemed to be withdrawn on a
first-in, first-out basis.
SYSTEMATIC WITHDRAWAL PLAN
You may elect in writing on a form provided by the Company to take
systematic withdrawals by withdrawing a specified dollar amount of at
least $100 on a monthly, quarterly, semi-annual, or annual basis. The
Company will process the withdrawals by liquidating, on a pro rata
basis, Accumulation Units from all Sub-Accounts in which Contract Value
is allocated and value from the Fixed Account. A surrender charge may
apply to systematic withdrawals. However, for the purpose of
calculating any such surrender charge, purchase payments will be deemed
to be withdrawn last and after any amounts in excess of purchase
payments are withdrawn from the Contract Value. You may discontinue
systematic withdrawals at any time by notifying the Company in writing.
The Company reserves the right to discontinue offering systematic
withdrawals upon 30 days' written notice to you; however, any such
discontinuation would not affect a systematic withdrawal plan already
commenced. The Company also reserves the right to assess a processing
fee for this plan.
REDUCTION OF SURRENDER CHARGE
The surrender charge may be reduced or eliminated for annuity contracts
sold to a trustee, employer or similar entity pursuant to a retirement
plan or otherwise when contracts are
9
<PAGE> 10
sold to a group of individuals such that the Company saves sales
expenses. The decision to reduce or eliminate the surrender charge will
be made exclusively by the Company.
DELAY IN PAYMENT
Payment of a surrender or withdrawal from the Variable Account will be
made within seven days. The Company has the right to suspend or delay
calculation or payment of any surrender or withdrawal from the Variable
Account for any of the following reasons:
1. The New York Stock Exchange is closed other than for customary
weekend and holiday closings; or
2. Trading on the New York Stock Exchange is restricted; or
3. An emergency exists as a result of which disposal of the securities
is not reasonably practicable or it is not reasonably practicable
to fairly determine the value of the net assets of the Variable
Account; or
4. The Securities and Exchange Commission, by order, permits
postponement of payments for the protection of security holders; or
5. The request for surrender or withdrawal is not made in writing.
Rules and regulations of the Securities and Exchange Commission will
govern as to whether the conditions set forth in numbers 2 and 3 above
exist.
The Company further reserves the right to delay withdrawal of the Fixed
Account Value for up to six months in those states where applicable law
requires the Company to reserve such right.
================================================================================
OWNERSHIP PROVISIONS
================================================================================
CONTRACT OWNER
The Annuitant is the Owner of the Contract unless some other person(s)
is(are) named as Owner on page 3. The Owner has all rights under the
Contract unless otherwise provided.
JOINT OWNER
The Contract may be owned by two persons as Joint Owners. In this case,
both Joint Owners must consent to any withdrawals, surrenders or
changes to the Contract or beneficiary.
CONTINGENT OWNER
If you are the Owner but are not the Annuitant, you may name a
Contingent Owner to take over as Owner upon your death. The naming of a
Contingent Owner will not take effect until we record it at the Home
Office. We are not responsible for the tax consequences resulting from
the change of the Owner.
BENEFICIARY
You may designate a beneficiary and change any designated beneficiary
any time during the lifetime of the Annuitant by written notice
satisfactory to us. The change will take effect on the date the notice
is signed. A change will not apply to any payment we make or any other
action we take before the notice is received and recorded by us at our
Home Office.
ASSIGNMENT
You may assign the Contract in writing. The assignment will not bind us
until our Home Office records show that we have received a copy. Your
rights and those of any beneficiary or Contingent Owner will be subject
to the assignment. We are not responsible for the validity or tax
consequences of the assignment.
10
<PAGE> 11
================================================================================
DEATH PROVISIONS
================================================================================
DEATH OF OWNER
If the Contract is owned by Joint Owners and one of them dies, the
surviving Owner will become the sole Owner. If the Contract is owned by
one person and a Contingent Owner has been named, the Contingent Owner
will become the Owner if the sole Owner dies. If there is no Joint
Owner or Contingent Owner at the time of the Owner's death, the estate
of the Owner becomes Owner.
If an Owner who is not also the Annuitant dies before the Annuitant and
before the Income Date, the Surrender Value must be paid to the new
Owner (or surviving Joint Owner) within 5 years of the deceased Owner's
death. Alternatively, the new Owner (or surviving Joint Owner) may
elect to receive periodic payments to begin within one year of the
deceased Owner's death in the form of a life annuity or an annuity for
a period certain not exceeding the new Owner's (or surviving Joint
Owner's) life expectancy. (If the Annuitant dies prior to payment of
the Surrender Value or commencement of periodic payments, no death
benefit shall be payable.) In addition, if the new Owner (or surviving
Joint Owner) is the surviving spouse of the deceased Owner, then the
Contract may continue in the name of the surviving spouse who may
exercise all rights of ownership under the Contract.
If an Owner or Joint Owner who is the Annuitant dies before the Income
Date, the Death of Annuitant provision shall apply.
If an Owner dies on or after the Income Date, any payments that remain
to be made must be made at least as rapidly as under the payout plan in
effect on the date of the Owner's death.
DEATH OF ANNUITANT
If the Annuitant dies before the Income Date, the beneficiary will be
paid a death benefit. The death benefit will be paid to the beneficiary
either in one sum or in the form of an annuity if the beneficiary
should so elect within 60 days of the Annuitant's death. However, if
the Annuitant is the Owner and the surviving spouse is the sole
beneficiary, then the spouse may elect to continue the Contract and
become the new Owner and Annuitant.
DEATH BENEFIT
If the Annuitant dies during the first seven Contract Years and prior
to the first day of the calendar month after his or her 80th birthday,
the death benefit will equal the greater of (1) the Contract Value on
the date both due proof of death and death benefit payout instructions
are received by the Company; and (2) the sum of all purchase payments
less any amounts previously withdrawn. If the Annuitant dies on or
after the seventh Contract Anniversary and prior to the first day of
the calendar month after his or her 80th birthday, the death benefit
will equal the greatest of (1) the Contract Value on the date both due
proof of death and death benefit payout instructions are received by
the Company; (2) the sum of all purchase payments less any amounts
previously withdrawn; and (3) the Contract Value on the most recent
septennial Contract Anniversary plus any purchase payments made since
that Contract Anniversary and less any amounts withdrawn since that
Contract Anniversary. If the Annuitant dies on or after the first day
of the calendar month after his or her 80th birthday, the death benefit
will equal the Contract Value on the date both due proof of death and
death benefit payout instructions are received by the Company.
REQUIRED DISTRIBUTIONS
An Owner or beneficiary who is required to surrender this Contract
within a specified time or begin to receive payments in the form of a
life annuity or annuity for a period certain
11
<PAGE> 12
not exceeding the recipient's life expectancy may choose a Payout Plan
in the Payout Provisions of the Contract that meets those requirements.
PRIORITY OF BENEFICIARIES
You may designate the beneficiaries as primary or contingent to
indicate the order in which they will receive any death benefit
payable. If you name two or more beneficiaries of the same class, they
will share equally unless you state how they are to share. If you
identify a beneficiary as a relative, we will interpret that to mean a
relative of the Annuitant unless you state that the relationship is to
another person.
Any death benefit will be paid to the primary beneficiaries who are
living when payment is due. If there are no living primary
beneficiaries, payment will be made to the contingent beneficiaries who
are living when payment is due. If all beneficiaries have predeceased
the Annuitant, the death benefit will be paid to the Owner if different
than the Annuitant and, if not, to the Annuitant's estate.
Any beneficiary who dies within 10 days after the Annuitant's death
will not be entitled to any benefits payable on such a death unless
that beneficiary is living when we receive due proof of the Annuitant's
death.
================================================================================
PAYOUT PROVISIONS
================================================================================
INCOME DATE
We will start annuity payments on the Income Date shown on page 3
unless you request a change in the Income Date. The Income Date is the
Contract Anniversary on or following the Annuitant's 80th birthday or
the 10th Contract Anniversary, if later, unless otherwise indicated on
page 3. The Income Date can be changed by written notice to us. Your
written request must be received by us at least 31 days prior to the
existing Income Date. Upon receipt of your request, the Income Date
will be the date you select.
Annuity payments will be paid to the Annuitant unless you designate
another payee. You may change the payee at any time by written notice
to us. Such notice must be received at our Home Office at least 31 days
prior to a payment due date for the change to be effective on such
date. An executor, administrator, trustee, corporation, partnership or
association other than the Owner may not be a payee without our
approval. A payee designation is automatically revoked by the death of
the designated payee.
PAYOUT PLANS
You may apply the Surrender Value, less any applicable premium tax,
under any of the following payout plans. You may also request
quarterly, semiannual, or annual payments in place of monthly payments,
or, with our approval, choose another plan that is not listed below.
1) Installment Income Plans
A) Fixed Period - Paid in equal monthly payments for the
number of years you select (1-30). The payments for each
$1,000 applied will not be less than those shown in the Fixed
Period Table.
B) Fixed Amount - Paid in equal monthly payments of $5 or more
for each $1,000 applied until the full amount with compound
interest at not less than 3% a year is used up.
2) Life Income Plans
A) One Life - Paid in equal monthly payments during the lifetime
of a designated person. We will guarantee payments for either
10 years or 20 years and for as long as that person lives.
Payments for each $1,000 applied will not be less than those
shown in the One Life Table. The amount paid is based on the
person's sex and age on the date of the first payment.
Payments may not be commuted.
12
<PAGE> 13
B) Joint and Survivor - Paid in equal monthly payments during the
lifetimes of two designated persons. Payments will continue as
long as either person is living. The amount of each payment is
based on both persons' sex and age on the date of the first
payment. If either one dies before the due date of the first
payment, we will make payments during the survivor's lifetime
under Life Income Plan A with payments guaranteed for 10
years. Payments may not be commuted.
If you do not elect a payout plan by the Income Date, we will apply the
Surrender Value, less any applicable premium tax, on the Income Date
under Life Income Plan A with monthly payments guaranteed for 10 years.
When a payee dies, any remaining payments will be paid to the Owner
unless the Owner names another payee.
FIXED PERIOD MINIMUM INCOME TABLE*
Monthly Payments for each $1,000 applied
- --------------------------------------------------------------------------------
Number Monthly Number Monthly Number Monthly
of Install- of Install- of Install-
Years ments Years ments Years ments
- --------------------------------------------------------------------------------
1 $84.47 11 $8.86 21 $5.32
2 42.86 12 8.24 22 5.15
3 28.99 13 7.71 23 4.99
4 22.06 14 7.26 24 4.84
5 17.91 15 6.87 25 4.71
6 15.14 16 6.53 26 4.59
7 13.16 17 6.23 27 4.47
8 11.68 18 5.96 28 4.37
9 10.53 19 5.73 29 4.27
10 9.61 20 5.51 30 4.18
*Values are based on compound interest at 3% a year.
13
<PAGE> 14
ONE LIFE MINIMUM INCOME TABLE*
Monthly Payments for each $1,000 applied
<TABLE>
<CAPTION>
======================================================================================
Age of Life Life Age of Life Life
Payee 10 Years 20 years Payee 10 Years 20 Years
Last Certain Certain Last Certain Certain
Birth- --------------------------------- Birth- -----------------------------------
day Male Female Male Female day Male Female Male Female
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15 and
under $2.84 $2.77 $2.84 $2.76 50 $4.04 $3.71 $3.92 $3.66
16 2.86 2.78 2.85 2.78 51 4.11 3.77 3.98 3.71
17 2.87 2.79 2.87 2.79 52 4.18 3.83 4.04 3.76
18 2.89 2.80 2.88 2.80 53 4.26 3.89 4.10 3.82
19 2.90 2.82 2.90 2.81 54 4.35 3.96 4.16 3.87
20 2.92 2.83 2.91 2.83 55 4.43 4.03 4.23 3.93
21 2.94 2.84 2.93 2.84 56 4.53 4.10 4.29 4.00
22 2.96 2.86 2.95 2.85 57 4.62 4.18 4.36 4.06
23 2.97 2.87 2.97 2.87 58 4.73 4.27 4.43 4.13
24 2.99 2.89 2.99 2.88 59 4.83 4.36 4.50 4.20
25 3.02 2.90 3.01 2.90 60 4.95 4.45 4.57 4.27
26 3.04 2.92 3.03 2.92 61 5.07 4.55 4.64 4.34
27 3.06 2.94 3.05 2.94 62 5.20 4.66 4.71 4.42
28 3.08 2.96 3.07 2.95 63 5.33 4.77 4.78 4.49
29 3.11 2.98 3.10 2.97 64 5.47 4.89 4.84 4.57
30 3.14 3.00 3.12 2.99 65 5.62 5.01 4.91 4.64
31 3.16 3.02 3.15 3.01 66 5.77 5.15 4.97 4.72
32 3.19 3.04 3.18 3.04 67 5.93 5.29 5.04 4.80
33 3.22 3.07 3.21 3.06 68 6.09 5.44 5.09 4.87
34 3.26 3.09 3.24 3.08 69 6.26 5.59 5.15 4.94
35 3.29 3.12 3.27 3.11 70 6.43 5.76 5.20 5.01
36 3.32 3.15 3.30 3.13 71 6.61 5.93 5.24 5.08
37 3.36 3.17 3.33 3.16 72 6.79 6.11 5.29 5.14
38 3.40 3.20 3.37 3.19 73 6.97 6.30 5.32 5.20
39 3.44 3.24 3.41 3.22 74 7.16 6.50 5.36 5.25
40 3.48 3.27 3.45 3.25 75 7.34 6.70 5.39 5.30
41 3.53 3.30 3.49 3.29 76 7.53 6.91 5.41 5.34
42 3.58 3.34 3.53 3.32 77 7.71 7.12 5.43 5.37
43 3.63 3.38 3.57 3.36 78 7.89 7.33 5.45 5.40
44 3.68 3.42 3.62 3.39 79 8.06 7.54 5.47 5.43
45 3.73 3.46 3.66 3.43 80 8.23 7.75 5.48 5.45
46 3.79 3.51 3.71 3.47 81 8.39 7.95 5.49 5.47
47 3.85 3.55 3.76 3.52 82 8.53 8.15 5.50 5.48
48 3.91 3.60 3.81 3.56 83 8.67 8.33 5.50 5.49
49 3.97 3.65 3.87 3.61 84 8.80 8.50 5.51 5.50
85 and 8.92 8.66 5.51 5.50
over
======================================================================================
</TABLE>
*Values are based on the "1983 Table a" adjusted for age
last birthday, with compound interest at 3% a year.
ADDITIONAL INTEREST
We guarantee interest under all Installment Income and Life Income
Plans at a minimum rate of 3% per year. We may increase the interest
rate above the minimum on these plans. Monthly payments under these
plans will be based on the interest rate in effect on the due date of
the first payment.
CHOOSING A PAYOUT PLAN
You may choose or change a payout plan any time before the Income Date.
The choice or later change of a payout plan must be in writing and in
satisfactory form to us. If you make the request, it must be received
before the Income Date. The minimum amount which may be applied under a
payout plan is $1,000. Any choice involving more than one payout plan
must have our approval.
14
<PAGE> 15
MINIMUM INSTALLMENT
Each payment must be at least $50. We may change the number of payments
we make in a year so that each payment is at least $50. If the amount
to be applied is less than $1,000 or an annual payment would be less
than $50, the payout plan will not take effect or will terminate.
DUE DATE
The first payment under a payout plan chosen by the beneficiary will be
due on the date the plan is selected. The first payment under a payout
plan chosen by you for the beneficiary will be due on the date of the
Annuitant's death. The first payment under a payout plan chosen by you
upon withdrawal of the Surrender Value will be due when the request to
withdraw is received.
================================================================================
GENERAL PROVISIONS
================================================================================
REPORTS
At least once each Contract Year prior to the Income Date, we will mail
a report to you at your last address known to us. This report shall
include a statement of the Fixed Account Value and the Variable Account
Value. The information in this report shall be as of the date not more
than 4 months prior to the date the report is mailed. We will also send
you confirmations of transactions under the Contract, such as purchase
payments, transfers and withdrawals and, at least semi-annually, a
report of the investments held in the Sub-Accounts and any other
information required by applicable law or regulation.
STATEMENTS IN APPLICATION
All statements made in the application are considered to be
representations and not warranties. No statement will be used in
defense of a claim unless it is in the application.
MODIFICATION OF CONTRACT
Any change in the Contract or waiver of its provisions must be in
writing and signed by our Chairman, President or Secretary. No other
person can change or waive any of its provisions.
INCONTESTABILITY
The Contract will be incontestable after it has been in force during
the Annuitant's lifetime for two years from the Contract Date.
INCORRECT AGE OR SEX
If the age or sex of the Annuitant has been misstated, we will adjust
all benefits to those that the purchase payment(s) for the Contract
would have purchased for the correct age and sex. Any overpayments we
make will be charged with compound interest against subsequent
payments. Any amounts we owe as a result of underpayments will be paid
with compound interest upon receipt of notice of the underpayment. The
rate will be the rate we used to determine the number or amount of the
payments.
PLACE OF PAYMENT
We will make all payments due under the contract at our Home Office.
SUBMISSION OF CONTRACT
We may ask you to relinquish the Contract or send it to us for
endorsement before we make any payment. Failure to have you relinguish
the Contract or to note payment on it does not indicate that we have
not made payment.
15
<PAGE> 16
CREDITORS' CLAIMS
All payments under the Contract will be exempt from the claims of
creditors and legal process to the extent permitted by law. No payment
will be transferred, assigned or withdrawn before it becomes payable
unless we agree.
PROOF OF FACTS
We may ask any person claiming the right to payments for proof
satisfactory to us of such person's right to payment. Any payment we
make relying on that proof discharges us from any obligation to make
that payment to another person. We will require proof of date of birth
of the person(s) on whose life (or lives) payments are based.
NON-PARTICIPATING
This contract does not participate in surplus earnings of the Company.
16
<PAGE> 17
Western-Southern Life Assurance Company
Cincinnati, Ohio
Issued by a Stock Company
Home Office: 400 Broadway, Cincinnati, Ohio 45202
FLEXIBLE PURCHASE PAYMENT DEFERRED VARIABLE ANNUITY
Income Payable at Income Date
Death Benefit Prior to Income Date
Non-Participating
<PAGE> 1
Exhibit 4(b)
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
ENDORSEMENT FOR SAVINGS INCENTIVE MATCH PLAN FOR EMPLOYEES
INDIVIDUAL RETIREMENT ANNUITY ("SIMPLE IRA")
The terms of this endorsement apply and replace contrary contract terms only if
the Application indicates the contract is a Savings Incentive Match Plan for
Employees IRA ("SIMPLE IRA") under Internal Revenue Code ("Code") Section
408(p). In the event of any conflict between this contract and any Code sections
applicable to the annuity described above, the Code will govern. To qualify
under the Code your contract must meet the following requirements:
1. You may not change ownership of this contract at any time.
2. Your entire interest in the contract is nonforfeitable. It is established
for the exclusive benefit of you or your beneficiaries.
3. Your contract is not transferable and may not be used as security for a
loan.
4. You must be the Owner and the Annuitant and no joint owner or contingent
owner is permitted.
5. All distributions made under the contract shall be in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental
death benefit requirements of Section 401(a)(9)(G) of the Code, and the
regulations thereunder, including the minimum distribution incidental
benefit requirement of Section 1.401(a)(9)-2 of the Proposed Income Tax
Regulations.
You must begin taking distributions no later than April 1 of the calendar
year following the calendar year in which you attain age 70-1/2 ("required
beginning date") over (a) your life or the lives of you and your designated
beneficiary or (b) a period certain not extending beyond your life
expectancy, or the joint and last survivor expectancy of you and your
designated beneficiary. You must receive additional minimum distributions
by December 31 for each year after the calendar year you attain age 70-1/2.
Payments must be made in periodic payments at intervals of no longer than
one year. In addition, payments must be either nonincreasing or they may
increase only as provided in Q&A F-3 of Section 1.401(a)(9)-1 of the
Proposed Income Tax Regulations.
In addition to meeting the distribution requirements referenced above,
payments under a partial withdrawal option or an annuity option must also
comply with the minimum distribution incidental benefit (MDIB) requirements
applicable to IRAs. The amount to be distributed each year beginning with
the first calendar year for which distributions are required and then for
each succeeding calendar year shall not be less than the quotient obtained
by dividing the owner's benefit by the lesser of (1) the applicable life
expectancy, or (2) if your spouse is not the designated beneficiary, the
applicable divisor determined from the table set forth in Q&A-4 of Section
1.401(a)(9)-2 of the Proposed Income Tax Regulations. Distributions after
your death shall be calculated using the applicable life expectancy as the
relevant divisor without regard to Section 1.401(a)(9)-2 of the Proposed
Income Tax Regulations. This MDIB rule may increase the amount of your
payments. If we are required to make a distribution to you at year end
because payments made to you during the calendar year are insufficient to
meet MDIB requirements for this contract, we will waive any surrender
charge that might otherwise be applicable.
If you have more than one SIMPLE IRA or traditional IRA, each IRA must
separately calculate a required minimum distribution amount. You may
satisfy the minimum distribution requirements for all these IRAs by
receiving a distribution from any one SIMPLE IRA or regular IRA or
combination of these IRAs. See IRS Notice 88-38 for details explaining this
distribution option.
Life expectancy is computed by use of the expected return multiples in
Tables V and VI of Section 1.72-9 of the Income Tax Regulations. Unless
otherwise elected by you by the time distributions are required to begin,
life expectancy shall be recalculated annually. Such election shall be
irrevocable and shall apply to all subsequent years. The life expectancy of
a non-spouse beneficiary may not be recalculated. Instead, life expectancy
will be calculated using the attained age of such beneficiary during the
calendar year in which you attain age 70-1/2 and payments for subsequent
years shall be calculated on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy was
first calculated.
1
<PAGE> 2
6. In the event of your death, your entire interest in this contract must be
distributed in conformity with the regulations described below. The
contract's provisions relating to the death of the Annuitant/Owner are
changed to the extent necessary to conform with those regulations.
If you die before your entire interest is distributed, the following
distribution provision shall apply:
a. If you die after distribution of your interest has commenced, the
remaining portion of such interest will continue to be distributed at
least as rapidly as under the method of distribution being used prior
to your death.
b. If you die before distribution of your interest commences, your entire
interest must be distributed by December 31 of the calendar year
containing the fifth anniversary of your death, unless an election is
made to receive distribution in accordance with (1) or (2) below.
(1) If your entire interest is payable to a designated beneficiary,
then your entire interest may be distributed over the life or
over a period certain not greater than the life expectancy of the
designated beneficiary commencing on or before December 31 of the
calendar year immediately following the calendar year of your
death. A designated beneficiary may elect at any time to receive
greater payments, or
(2) If your designated beneficiary is your surviving spouse, your
spouse may elect to receive equal or substantially equal payments
over the life or life expectancy of the surviving spouse
commencing at any date prior to the later of (i) December 31 of
the calendar year immediately following the calendar year of your
death, or (ii) December 31 of the calendar year in which you
would have attained age 70-1/2. This election must be made no
later than the earlier of December 31 of the calendar year
containing the fifth anniversary of your death or the date
distributions are required to begin pursuant to the preceding
sentence. The surviving spouse may accelerate these payments at
any time, i.e., increase the frequency or amount of such
payments, or
(3) If your designated beneficiary is your surviving spouse, your
spouse may treat the annuity as his or her own SIMPLE IRA. This
election will be deemed to have been made if your surviving
spouse makes a rollover to this SIMPLE IRA from another SIMPLE
IRA of the surviving spouse, or if an employer of the surviving
spouse makes a contribution to this SIMPLE IRA under a SIMPLE IRA
Plan maintained by such employer, or fails to elect any of the
above provisions.
Life expectancy is computed by use of the expected return multiples and
Tables V and VI of Section 1.72-9 of the income tax regulations. For
purposes of distributions beginning after your death unless otherwise
elected by your surviving spouse by the time distributions are required
to begin, life expectancy shall be recalculated annually. Such election
shall be irrevocable by the surviving spouse and shall apply to all
subsequent years. In the case of any other beneficiary, life expectancy
shall be calculated using the attained age of such beneficiary during
the calendar year in which distributions are required to begin pursuant
to this section, and payments for any subsequent calendar year shall be
calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy
was first calculated.
Distributions under paragraph 6 are considered to have begun if
distributions are made on account of your attaining your required beginning
date or, if prior to the required beginning date, distributions irrevocably
commence over a period permitted and in an annuity form acceptable under
Section 1.401(a)(9) of the Proposed Income Tax Regulations.
7. This SIMPLE IRA will accept only:
a. A cash contribution made by an employer on behalf of the individual
under a SIMPLE IRA Plan that meets the requirements of Code Section
408(p), and
b. A rollover contribution or a transfer of assets from another SIMPLE IRA
of the individual.
No other contributions will be accepted.
2
<PAGE> 3
8. Prior to the expiration of the 2-year period beginning on the date you
first participated in any SIMPLE IRA Plan maintained by your employer, any
rollover or transfer by you of funds from this SIMPLE IRA must be made to
another SIMPLE IRA of your own. Any distribution of funds to you during
this 2-year period may be subject to a 25-percent additional tax if you do
not roll over the amount distributed into a SIMPLE IRA. After the
expiration of this 2-year period, you may roll over or transfer funds to
any IRA you own that is qualified under Code Section 408(a), (b) or (p).
9. If this SIMPLE IRA is maintained by a designated financial institution
(within the meaning of Code Section 408(p)(7)) under the terms of a SIMPLE
IRA Plan of your employer, future SIMPLE IRA contributions must be
permitted to transfer without cost or penalty (within the meaning of Code
Section 408(p)(7)) to another SIMPLE IRA or IRA you own that is qualified
under Code Section 408(a), (b) or (p). The transfer of your SIMPLE IRA
balance under this contract to another institution may be subject to the
surrender charges described in your contract.
10. The contract provisions for first year and minimum annual premiums or
purchase payments do not apply to SIMPLE IRAs. If your contract permits a
premium or purchase payment refund, any refund of premiums or purchase
payments (other than those attributable to excess contributions) will be
applied before December 31 of the calendar year following the year of the
premium or purchase payment refund toward the payment of future premiums or
purchase payments or the purchase of additional benefits. If your premiums
or purchase payments are interrupted, the contract will be reinstated at
any date prior to maturity upon payment by an employer under a SIMPLE IRA
Plan of a premium or purchase payment to the Company. The minimum premium
or purchase payment amount for reinstatement shall be at least $50.00.
However, the Company may at its option either accept additional future
payments or terminate your contract by payment in cash of the surrender
value of the paid up benefit if no premiums or purchase payments have been
received for two full consecutive contract years and the paid up annuity
benefit at maturity would be less than $20 per month.
11. The Company shall furnish annual calendar year reports concerning the
status of your annuity.
12. If contributions made for you under a SIMPLE IRA Plan maintained by your
employer are received directly by the Company, which is the issuer of this
SIMPLE IRA contract, from your employer, the Company will provide your
employer with the summary description required by Code Section
408(p)(2)(B).
3
<PAGE> 4
13. If this contract is issued in accordance with the terms of a SIMPLE IRA,
the One Life Minimum Income Table in the contract is deleted and the
following Table is substituted in lieu thereof:
ONE LIFE MINIMUM INCOME TABLE*
MONTHLY PAYMENTS FOR EACH $1,000 APPLIED
----------------------------------------------------------------------
Age of Age of
Payee Life Life Payee Life Life
Last 10 Years 20 Years Last 10 Years 20 Years
Birth- Certain Certain Birth- Certain Certain
day day
----------------------------------------------------------------------
15 and
under $2.80 $2.80 50 $3.87 $3.79
16 2.82 2.81 51 3.94 3.85
17 2.83 2.83 52 4.00 3.90
18 2.84 2.84 53 4.08 3.96
19 2.86 2.85 54 4.15 4.02
20 2.87 2.87 55 4.23 4.08
21 2.89 2.88 56 4.31 4.15
22 2.90 2.90 57 4.40 4.21
23 2.92 2.92 58 4.50 4.28
24 2.94 2.93 59 4.59 4.35
25 2.96 2.95 60 4.70 4.42
26 2.98 2.97 61 4.81 4.50
27 3.00 2.99 62 4.93 4.57
28 3.02 3.01 63 5.05 4.64
29 3.04 3.03 64 5.18 4.71
30 3.07 3.06 65 5.32 4.79
31 3.09 3.08 66 5.46 4.86
32 3.12 3.11 67 5.61 4.92
33 3.14 3.13 68 5.77 4.99
34 3.17 3.16 69 5.93 5.05
35 3.20 3.19 70 6.10 5.11
36 3.23 3.22 71 6.28 5.17
37 3.27 3.25 72 6.46 5.22
38 3.30 3.28 73 6.65 5.27
39 3.34 3.31 74 6.84 5.31
40 3.38 3.35 75 7.03 5.35
41 3.42 3.39 76 7.23 5.38
42 3.46 3.42 77 7.43 5.41
43 3.50 3.46 78 7.62 5.43
44 3.55 3.50 79 7.81 5.45
45 3.59 3.55 80 8.00 5.47
46 3.64 3.59 81 8.18 5.48
47 3.70 3.64 82 8.35 5.49
48 3.75 3.69 83 8.51 5.50
49 3.81 3.74 84 8.66 5.50
85 and 8.80 5.51
over
----------------------------------------------------------------------
*Values are based on the "1983 Table a" adjusted for age last birthday,
with compound interest at 3% a year.
/s/ James N. Clark /s/ John F. Barrett
Secretary President and
Chief Executive Officer
4
<PAGE> 1
Exhibit 4(c)
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
ENDORSEMENT FOR INDIVIDUAL RETIREMENT ANNUITY
The terms of this endorsement apply and replace contrary contract terms only if
the Application indicates the contract is an Individual Retirement Annuity
("IRA") under Internal Revenue Code ("Code") Section 408(b). In the event of any
conflict between this contract and any Code sections applicable to this annuity,
the Code will govern. To qualify under the Code, your contract must meet the
following requirements:
1. You may not change ownership of this contract at any time.
2. Your entire interest in the contract is nonforfeitable. It is established
for the exclusive benefit of you or your beneficiaries.
3. Your contract is not transferable and may not be used as security for a
loan.
4. You must be the Annuitant and no joint owner or contingent owner is
permitted.
5. All distributions made under the contract shall be in accordance with the
requirements of Code Section 401(a)(9), including the incidental death
benefit requirements of Code Section 401(a)(9)(G), and the regulations
thereunder, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Income Tax
Regulations.
You must begin taking distributions no later than April 1 following the
calendar year in which you attain age 70-1/2 ("required beginning date")
over (a) your life or the lives of you and a beneficiary designated by you
("your designated beneficiary") or (b) a period certain not extending
beyond your life expectancy, or the joint and last survivor expectancy of
you and your designated beneficiary. You must receive additional minimum
distributions by December 31 for each year after the calendar year you
attain age 70-1/2. Payments must be made in periodic payments at intervals
of no longer than one year. In addition, payments must be either
nonincreasing or they may increase only as provided in Q&A F-3 of Section
1.401(a)(9)-1 of the Proposed Income Tax Regulations.
In addition to meeting the distribution requirements referenced above,
payments under a partial withdrawal option or an annuity option must also
comply with the minimum distribution incidental benefit (MDIB) requirements
applicable to IRAs. The amount to be distributed each year beginning with
the first calendar year for which distributions are required and then for
each succeeding calendar year shall not be less than the quotient obtained
by dividing the owner's benefit by the lesser of (1) the applicable life
expectancy, or (2) if your spouse is not the designated beneficiary, the
applicable divisor determined from the table set forth in Q&A-4 of Section
1.401(a)(9)-2 of the Proposed Income Tax Regulations. Distributions after
your death shall be calculated using the applicable life expectancy as the
relevant divisor without regard to Section 1.401(a)(9)-2 of the Proposed
Income Tax Regulations. This MDIB rule may increase the amount of your
payments. If you are required to take a distribution at year end because
payments made to you during the calendar year are insufficient to meet MDIB
requirements for this contract, we will waive any surrender charge that
might otherwise be applicable.
You may satisfy the minimum distribution requirements applicable to two or
more IRAs by receiving a distribution from one IRA equal to the amounts
required to satisfy the minimum distribution requirement for all your IRAs,
as described in more detail in IRS Notice 88-38, 1988 1-C.B. 524.
Life expectancy is computed by use of the expected return multiples in
Tables V and VI of Section 1.72-9 of the Income Tax Regulations. Unless
otherwise elected by you by the time distributions are required to begin,
life expectancy shall be recalculated annually. Such election shall be
irrevocable and shall apply to all subsequent years. The life expectancy of
a non-spouse beneficiary may not be recalculated. Instead, life expectancy
will be calculated using the attained age of such beneficiary during the
calendar year in which you attain age 70-1/2 and payments for subsequent
years shall be calculated on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy was
first calculated.
1
<PAGE> 2
6. In the event of your death, your entire interest in this contract must be
distributed in conformity with the regulations described below. The
contract's provisions relating to the death of the Annuitant/Owner are
changed to the extent necessary to conform with those regulations.
a. If you die after distribution of your interest has commenced, the
remaining portion of such interest must be distributed at least as
rapidly as under the method of distribution being used prior to your
death.
b. If you die before distribution of your interest commences, your entire
interest must be distributed by December 31 of the calendar year
containing the fifth anniversary of your death, unless an election is
made to receive distribution in accordance with (1) or (2) below.
(1) Your entire interest may be distributed over the life or over a
period certain not greater than the life expectancy of the
designated beneficiary commencing on or before December 31 of the
calendar year immediately following the calendar year of your
death. A designated beneficiary may elect at any time to receive
greater payments, or
(2) If your designated beneficiary is your surviving spouse, your
spouse may elect to receive equal or substantially equal payments
over the life or life expectancy of the surviving spouse
commencing at any date prior to the later of (i) December 31 of
the calendar year immediately following the calendar year of your
death, or (ii) December 31 of the calendar year in which you
would have attained age 70-1/2. This election must be made no
later than the earlier of December 31 of the calendar year
containing the fifth anniversary of your death or the date
distributions are required to begin pursuant to the preceding
sentence. The surviving spouse may accelerate these payments at
any time, i.e., increase the frequency or amount of such
payments, or
(3) If your designated beneficiary is your surviving spouse, your
spouse may treat the annuity as his or her own individual
retirement arrangement. This election will be deemed to have been
made if your surviving spouse makes a regular IRA contribution to
the contract, makes a rollover to or from such contract, or fails
to elect any of the above provisions.
Life expectancy is computed by use of the expected return multiples and
Tables V and VI of Section 1.72-9 of the income tax regulations. For
purposes of distributions beginning after your death unless otherwise
elected by your surviving spouse by the time distributions are required
to begin, life expectancy shall be recalculated annually. Such election
shall be irrevocable by the surviving spouse and shall apply to all
subsequent years. In the case of any other beneficiary, life expectancy
shall be calculated using the attained age of such beneficiary during
the calendar year in which distributions are required to begin pursuant
to this section, and payments for any subsequent calendar year shall be
calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy
was first calculated.
Distributions under paragraph 6 are considered to have begun if
distributions are made on account of your attaining your required beginning
date or, if prior to the required beginning date, distributions irrevocably
commence over a period permitted and in an annuity form acceptable under
Section 1.401(a)(9) of the Regulations.
7. If your contract is a single premium annuity only an initial payment, and
any subsequent allowable payments as permitted under your contract, of up
to $2,000 or a rollover contribution as permitted by Code Sections 402(c),
403(a)(4), 403(b)(8) or 408(d)(3) will be accepted to pay the premium or
purchase payment for your annuity. If your contract is a flexible premium
or purchase payment annuity, then except in the case of a rollover
contribution (as permitted by Code Sections 402(c), 403(a)(4), 403(b)(8) or
408(d)(3)), no premiums or purchase payments will be accepted unless they
are in cash and the total contributions under Sections 219(b) and 408(o)
shall not exceed $2,000 for any taxable year. The $2,000 annual
contribution limit does not apply to the following:
(1) funds you receive as a result of the payment to you from a
qualified pension or profit sharing plan (corporate or Keogh)
which has terminated, excluding any funds you receive that
represent a return of your contributions to the plan;
2
<PAGE> 3
(2) funds you receive as a lump sum distribution from a qualified
corporate or Keogh plan, excluding any funds you receive that
represent a return of your contributions to the plan. A lump sum
distribution is a distribution that occurs on account of your
attainment of age 59-1/2, your separation from service (if you
are a common law employee), your becoming disabled (if you are
self-employed) or your death;
(3) funds (other than the plan termination and lump sum distributions
described above) that qualify as eligible rollover distributions
under Section 402(c);
(4) funds you receive from another individual retirement annuity or
account, however, rollover contributions from one individual
retirement annuity or account to another may occur only once per
year;
(5) funds you receive from a Savings Incentive Match Plan for
Employees (SIMPLE) that are permitted as a rollover under Section
408(d)(3)(G).
Funds you receive in one of the ways described above must be applied toward
your contract within 60 days of the date they are received by you, unless
you elected to make a direct rollover of such funds before distribution.
For direct rollovers, a reasonable period of time is allowed.
8. If your contract permits a refund of premium or purchase payment (other
than excess contributions), any refund of premium or purchase payments will
be applied before December 31 of the calendar year following the year of
the premium or purchase payment refund toward the payment of future premium
or purchase payments or the purchase of additional benefits. If your
premium or purchase payments are being made pursuant to a program of
automatic withdrawals, and your contract is terminated due to an
interruption in premium or purchase payments, you will have the following
reinstatement rights. Your contract may be reinstated at any time prior to
maturity upon payment of a premium or purchase payment to the Company in
the monthly amount of $50. However, if no premium or purchase payments have
been received for two full consecutive contract years and your annuity
benefit at maturity would be less than $20 per month, the Company may
terminate your contract without any right of reinstatement by paying you
the Surrender Value computed as provided in your contract.
/s/ James N. Clark /s/ John F. Barrett
Secretary President and
Chief Executive Officer
3
<PAGE> 1
Exhibit 4(d)
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
ENDORSEMENT FOR SIMPLIFIED EMPLOYEE PENSION INDIVIDUAL RETIREMENT
ANNUITY (SEP-IRA)
The terms of this endorsement apply and replace contrary contract terms only if
the Application indicates the contract is a Simplified Employee Pension
Individual Retirement Annuity ("SEP-IRA") under Code Section 408(k). In the
event of any conflict between this contract and any Code sections applicable to
the annuity described above, the Code will govern. To qualify under the Code,
your contract must meet the following requirements:
1. You may not change ownership of this contract at any time.
2. Your entire interest in the contract is nonforfeitable. It is established
for the exclusive benefit of you or your beneficiaries.
3. Your contract is not transferable and may not be used as security for a
loan.
4. You must be the Annuitant and no joint owner or contingent owner is
permitted.
5. The contract must be issued pursuant to a Simplified Employee Pension (SEP)
that meets the requirements of Code Section 408(k).
6. All distributions made under the contract shall be in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental
death benefit requirements of Section 401(a)(9)(G) of the Code, and the
regulations thereunder, including the minimum distribution incidental
benefit requirement of Section 1.401(a)(9)-2 of the Proposed Income Tax
Regulations.
You must begin taking distributions no later than April 1 following the
calendar year in which you attain age 70-1/2 ("required beginning date")
over (a) your life or the lives of you and a beneficiary designated by you
("your designated beneficiary") or (b) a period certain not extending
beyond your life expectancy, or the joint and last survivor expectancy of
you and your designated beneficiary. You must receive additional minimum
distributions by December 31 for each year after the calendar year you
attain age 70-1/2. Payments must be made in periodic payments at intervals
of no longer than one year. In addition, payments must be either
nonincreasing or they may increase only as provided in Q&A F-3 of Section
1.401(a)(9)-1 of the Proposed Income Tax Regulations.
In addition to meeting the distribution requirements referenced above,
payments under a partial withdrawal option or an annuity option must also
comply with the minimum distribution incidental benefit (MDIB) requirements
applicable to IRAs. The amount to be distributed each year beginning with
the first calendar year for which distributions are required and then for
each succeeding calendar year shall not be less than the quotient obtained
by dividing the owner's benefit by the lesser of (1) the applicable life
expectancy, or (2) if your spouse is not the designated beneficiary, the
applicable divisor determined from the table set forth in Q&A-4 of Section
1.401(a)(9)-2 of the Proposed Income Tax Regulations. Distributions after
your death shall be calculated using the applicable life expectancy as the
relevant divisor without regard to Section 1.401(a)(9)-2 of the Proposed
Income Tax Regulations. This MDIB rule may increase the amount of your
payments. If we are required to make a distribution to you at year end
because payments made to you during the calendar year are insufficient to
meet MDIB requirements for this contract, we will waive any surrender
charge that might otherwise be applicable.
You may satisfy the minimum distribution requirements applicable to two or
more IRAs by receiving a distribution from one IRA equal to the amounts
required to satisfy the minimum distribution requirement for all your IRAs,
as described in more detail in IRS Notice 88-38, 1988 1-C.B. 524.
1
<PAGE> 2
Life expectancy is computed by use of the expected return multiples in
Tables V and VI of Section 1.72-9 of the Income Tax Regulations. Unless
otherwise elected by you by the time distributions are required to begin,
life expectancy shall be recalculated annually. Such election shall be
irrevocable and shall apply to all subsequent years. The life expectancy of
a non-spouse beneficiary may not be recalculated. Instead, life expectancy
will be calculated using the attained age of such beneficiary during the
calendar year in which you attain age 70-1/2 and payments for subsequent
years shall be calculated on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy was
first calculated.
7. In the event of your death, your entire interest in this contract must be
distributed in conformity with the regulations described below. The
contract's provisions relating to the death of the Annuitant/Owner are
changed to the extent necessary to conform with those regulations.
a. If you die after distribution of your interest has commenced, the
remaining portion of such interest must be distributed at least as
rapidly as under the method of distribution being used prior to your
death.
b. If you die before distribution of your interest commences, your entire
interest must be distributed by December 31 of the calendar year
containing the fifth anniversary of your death, unless an election is
made to receive distribution in accordance with (1) or (2) below.
(1) Your entire interest may be distributed over the life or over a
period certain not greater than the life expectancy of the
designated beneficiary commencing on or before December 31 of the
calendar year immediately following the calendar year of your
death. A designated beneficiary may elect at any time to receive
greater payments, or
(2) If your designated beneficiary is your surviving spouse, your
spouse may elect to receive equal or substantially equal payments
over the life or life expectancy of the surviving spouse
commencing at any date prior to the later of (i) December 31 of
the calendar year immediately following the calendar year of your
death, or (ii) December 31 of the calendar year in which you
would have attained age 70-1/2. This election must be made no
later than the earlier of December 31 of the calendar year
containing the fifth anniversary of your death or the date
distributions are required to begin pursuant to the preceding
sentence. The surviving spouse may accelerate these payments at
any time, i.e., increase the frequency or amount of such
payments, or
(3) If your designated beneficiary is your surviving spouse, your
spouse may treat the annuity as his or her own individual
retirement arrangement. This election will be deemed to have been
made if your surviving spouse makes a regular IRA contribution to
the contract, makes a rollover to or from such contract, or fails
to elect any of the above provisions.
Life expectancy is computed by use of the expected return multiples and
Tables V and VI of Section 1.72-9 of the income tax regulations. For
purposes of distributions beginning after your death unless otherwise
elected by your surviving spouse by the time distributions are required
to begin, life expectancy shall be recalculated annually. Such election
shall be irrevocable by the surviving spouse and shall apply to all
subsequent years. In the case of any other beneficiary, life expectancy
shall be calculated using the attained age of such beneficiary during
the calendar year in which distributions are required to begin pursuant
to this section, and payments for any subsequent calendar year shall be
calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy
was first calculated.
Distributions under paragraph 7 are considered to have begun if
distributions are made on account of your attaining your required beginning
date or, if prior to the required beginning date, distributions irrevocably
commence over a period permitted and in an annuity form acceptable under
Section 1.401(a)(9) of the Regulations.
8. Contributions are to be made only in accordance with the terms of a
Simplified Employee Pension (SEP) as described in Section 408(k) or as
otherwise permitted by Code Sections 402(c), 403(a)(4), 403(b)(8) or
408(d)(3).
2
<PAGE> 3
9. If your contract permits a refund of premiums or purchase payments (other
than excess contributions) any such refund will be applied before December
31 of the calendar year following the year of the premium or purchase
payment refund toward the payment of future premiums or purchase payments
or the purchase of additional benefits. If your premiums or purchase
payments are being made pursuant to a program of automatic withdrawals, and
your contract is terminated due to an interruption in premiums or purchase
payments, you will have the following reinstatement rights. Your contract
may be reinstated at any date prior to maturity upon payment of a premium
or purchase payment to the Company in the monthly amount of $50. However,
if no premiums or purchase payments have been received for two full
consecutive contract years and your annuity benefit at maturity would be
less than $20 per month, the Company may terminate your contract without
any right of reinstatement and pay you the Surrender Value computed as
provided in your contract.
10. For the SEP-IRA, the One Life Minimum Income Table in the contract is
deleted and the following Table is substituted in its place:
ONE LIFE MINIMUM INCOME TABLE*
MONTHLY PAYMENTS FOR EACH $1,000 APPLIED
<TABLE>
<CAPTION>
Age of Age of
Payee Life Life Payee Life Life
Last 10 Years 20 Years Last 10 Years 20 Years
Birth- Certain Certain Birth- Certain Certain
day day
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
15 and
under $2.80 $2.80 50 $3.87 $3.79
16 2.82 2.81 51 3.94 3.85
17 2.83 2.83 52 4.00 3.90
18 2.84 2.84 53 4.08 3.96
19 2.86 2.85 54 4.15 4.02
20 2.87 2.87 55 4.23 4.08
21 2.89 2.88 56 4.31 4.15
22 2.90 2.90 57 4.40 4.21
23 2.92 2.92 58 4.50 4.28
24 2.94 2.93 59 4.59 4.35
25 2.96 2.95 60 4.70 4.42
26 2.98 2.97 61 4.81 4.50
27 3.00 2.99 62 4.93 4.57
28 3.02 3.01 63 5.05 4.64
29 3.04 3.03 64 5.18 4.71
30 3.07 3.06 65 5.32 4.79
31 3.09 3.08 66 5.46 4.86
32 3.12 3.11 67 5.61 4.92
33 3.14 3.13 68 5.77 4.99
34 3.17 3.16 69 5.93 5.05
35 3.20 3.19 70 6.10 5.11
36 3.23 3.22 71 6.28 5.17
37 3.27 3.25 72 6.46 5.22
38 3.30 3.28 73 6.65 5.27
39 3.34 3.31 74 6.84 5.31
40 3.38 3.35 75 7.03 5.35
41 3.42 3.39 76 7.23 5.38
42 3.46 3.42 77 7.43 5.41
43 3.50 3.46 78 7.62 5.43
44 3.55 3.50 79 7.81 5.45
45 3.59 3.55 80 8.00 5.47
46 3.64 3.59 81 8.18 5.48
47 3.70 3.64 82 8.35 5.49
48 3.75 3.69 83 8.51 5.50
49 3.81 3.74 84 8.66 5.50
85 and 8.80 5.51
over
----------------------------------------------------------------------
</TABLE>
*Values are based on the "1983 Table a" adjusted for age last birthday,
with compound interest at 3% a year.
11. Once a year we will provide a report which will be mailed to the Owner.
This report will show the contributions and fair market value of your
contract for the year.
/s/ James N. Clark /s/ John F. Barrett
Secretary President and
Chief Executive Officer
3
<PAGE> 1
Exhibit 4(e)
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
TAX SHELTERED ANNUITY ENDORSEMENT TO INDIVIDUAL
FLEXIBLE PURCHASE PAYMENT DEFERRED VARIABLE ANNUITY
THE TERMS OF THIS ENDORSEMENT APPLY AND REPLACE CONTRARY CONTRACT TERMS IF THE
APPLICATION INDICATES THE CONTRACT IS A TAX SHELTERED ANNUITY ("TSA") UNDER
INTERNAL REVENUE CODE ("CODE") SECTION 403(b). IN THE EVENT OF ANY CONFLICT
BETWEEN THIS CONTRACT AND ANY CODE SECTIONS APPLICABLE TO THE ANNUITY DESCRIBED
ABOVE, THE CODE WILL GOVERN. TO QUALIFY UNDER THE CODE, YOUR CONTRACT MUST MEET
THE FOLLOWING REQUIREMENTS:
1. This contract is not transferable and may not be sold, assigned,
discounted, or pledged as collateral for a loan (except for loans under
this contract) or as security for the performance of any obligation to any
person other than to the Company.
2. You must be the contract Owner and the Annuitant. You must be an employee
("Employee") of an employer described in Code Section 403(b)(1)(A)
("Employer"). If your employment with the Employer is terminated, and you
are employed by another Employer described in Code Section 403(b)(1)(A)
("Successor Employer"), you may continue to participate hereunder and
future purchase payments may continue to be made. Any reference to Employer
in this Endorsement shall include a Successor Employer. If your employment
with your Employer is terminated, you may continue to participate under
this contract to the extent of the Contract Value. Purchase payments (other
than Rollover Contributions) made when you are no longer employed by the
Employer may affect your tax liability under the contract. Any election or
change must be made by written notice satisfactory to the Company and
consistent with applicable state and federal law.
3. Except as otherwise provided in the Code, purchase payments must be made by
the Employer. Purchase payments made for your taxable year, other than
rollover contributions, as provided in Code Section 403(b)(8) may not
exceed the least of:
A. the exclusion allowance for a taxable year determined pursuant to Code
Section 403(b)(2);
B. the maximum amount permitted to be contributed for a taxable year under
Code Section 415; and
C. the annual limit on elective deferrals specified in Code Section 402(g)
for salary reduction contributions made under a Code approved salary
reduction agreement. Unless otherwise provided in the Code, the
limitation specified in Code Section 403(b)(1)(E) shall not be exceeded.
4. Before the Income Date, you may receive a loan from the Contract Value
subject to the terms of the contract and the Code which impose restrictions
on loans.
Loans are available beginning 30 days from the Contract Date. You will be
required to complete a Company Loan Agreement and will be subject to the
terms of this Endorsement and such Loan Agreement. If your contract is part
of a retirement plan subject to the Employee Retirement Income Security Act
of 1974 ("ERISA") which under the terms of your plan allows for loans, you
must also provide your spouse's written consent to the loan, or
verification that you are not married or your spouse cannot be located.
Loans shall be administered in a manner which satisfies the conditions of
this Section 4 and Code Section 72(p). You may borrow a minimum of $1,000.
The maximum balance of loans from the Contract Value and from all other
qualified employer plans which may be outstanding at any time cannot be
more than 50% of the Contract Value of all such plans, or not exceed
$50,000 in the aggregate. The $50,000 limit will be reduced by the highest
balance of loans from the Contract Value and from all other qualified
employer plans during the prior one-year period. Additional loans are
subject to the $1,000 minimum amount. Upon ninety (90) days prior written
notice, the Company may limit the number of outstanding loans or eliminate
loans as an option under this Endorsement.
1
<PAGE> 2
Loans must be adequately secured. Loans may be secured by the Contract
Value, but not in excess of 50% of the Contract Value. You may be required
to provide a security interest in such other property as would be
appropriate in a normal commercial setting between unrelated parties on
arm's length terms.
All loans are made from the Fixed Account. No loans may be made of amounts
that are not 100% vested. A loan account will be established in the Fixed
Account equal to the loan balance. Unless you instruct otherwise, the
Company will first transfer to the Fixed Account from the Variable Account
on a prorata basis Contract Value from all sub-accounts where contract
Value is allocated until the required balance is reached or all such
Variable Account Contract Value is exhausted. The remaining required
amounts, if any, will be allocated from the Fixed Account. No surrender
charges will be deducted on the transfer of amounts from the Variable
Account to the Fixed Account at the time of the loan.
The current interest rate to be paid by the Borrower for loans from the
Contract Value will be the prime interest ("Prime Rate") rate plus one-half
percent (1/2%) (the "Loan Rate"). The Prime Rate is the base rate on
corporate loans posted by at least 75% of the nation's largest banks. The
Company will determine the Loan Rate to be charged to your loan based on
the Prime Rate announced on the first Monday of each month as published in
the Wall Street Journal. The Loan Rate as determined prior to the
acceptance of your loan will be the rate used during the term of your loan.
Until the loan from the Contract Value has been repaid in full, the portion
of the loan account equal to the outstanding loan balance shall be credited
with interest at an effective rate of 2% less than the Loan Rate being
charged for that loan by the Company. The Company reserves the right to
change the credited rate applied to the amount borrowed to a maximum of 4%
less than the Loan Rate being charged for future loans. However, the
effective annual interest rate credited to your loan account balance will
never be less than the minimum contract guaranteed interest rate of 3%. The
Company also reserves the right to charge an origination and/or annual
maintenance fee for each loan requested. The current rate of interest for
your loan and any specific charges will be specified in the loan documents
required under this Endorsement.
Loans must be repaid in substantially level payments, not less frequently
than quarterly, within five years. Loans used to purchase the principal
residence of the borrower must be repaid under the same conditions, but
within 15 years. However, in no event may a loan term extend beyond your
required beginning date described in paragraph 5. During the loan term, the
loan balance will continue to earn interest at the rate specified in the
Loan Agreement. Loan repayments will consist of principal and interest in
amounts which satisfy the terms set forth in the Loan Agreement. Loan
repayments will be allocated to the Fixed and Variable Accounts in the same
proportion as current allocations, unless you specify otherwise. If a loan
payment is not made when due, interest will continue to accrue on the late
payment at the interest rate specified in the Loan Agreement. If a loan
payment is not made when due, interest will continue to accrue on the late
payment at the interest rate specified in the Loan Agreement. A loan
payment not made when due, plus interest, may be treated as a taxable
distribution to the borrower, and may be subject to a penalty tax. The
Company may use commercially reasonable procedures to ensure loan repayment
in the event of loan defaults, including acceleration of the entire loan
balance plus accrued interest and applicable surrender charges. This may
result in the Contract Value being reduced to reflect payment of any
outstanding loans. The loan will be considered to be in default if a loan
payment is not received within ninety (90) days after the due date.
If Contract Value is reduced by the amount of the loan outstanding plus
accrued interest and such reduction does not satisfy the distribution
limitations of Code Section 403(b)(11) with respect to loan amounts
attributable to salary reduction contributions, this contract may lose its
tax qualified status. The Company makes no representations or guarantees as
to the effect any loan may have on your tax liability. If you die while a
loan is outstanding, your death benefit will be reduced by the amount of
the loan outstanding plus accrued interest.
5. Your entire interest under the contract accruing after December 31, 1986,
will be distributed as follows:
The Code establishes a time ("required beginning date") at which you must
begin to take distribution from your contract.
2
<PAGE> 3
In general, the required beginning date is the later of April 1 of the
calendar year following the calendar year in which you attain age 70-1/2,
or April 1 of the calendar year following the calendar year in which you
retire. Your entire interest will be distributed over (a) your life or the
lives of you and your designated beneficiary or (b) a period certain not
extending beyond your life expectancy, or the joint and last survivor
expectancy of you and your designated beneficiary.
Payments must be made in periodic payments at intervals of no longer than
one year. In addition, payments must be either nonincreasing or they may
increase only as provided in Section 1.401(a)(9)-1 of the Proposed Income
Tax Regulations.
All distributions made hereunder shall be in accordance with the
requirements of Code Section 401(a)(9), including the incidental death
benefit requirements of Code Section 401(a)(9)(G), and the regulations
thereunder, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Income Tax
Regulations.
In addition to meeting the distribution requirements of the regulations
mentioned in the prior paragraph, payments under a partial withdrawal
option or an annuity option must also comply with the minimum distribution
incidental benefit (MDIB) requirements under Code Section 401(a)(9). The
amount to be distributed each year beginning with the first calendar year
for which distributions are required and then for each succeeding calendar
year shall not be less than the quotient obtained by dividing your benefit
by the lesser of (1) the applicable life expectancy, or (2) if your spouse
is not the designated beneficiary, the applicable divisor determined from
the table set forth in Q & A-4 of Section 1.401(a)(9)-2 of the Proposed
Income Tax Regulations. Distributions after your death shall be calculated
using the applicable life expectancy as the relevant divisor without regard
to Section 1.401(a)(9)-2 of the Proposed Income Tax Regulations. This MDIB
rule may increase the amount of your payments. If we are required to make a
distribution to you at year end because payments made to you during the
calendar year are insufficient to meet MDIB requirements for this contract,
we will waive any surrender charge that might otherwise be applicable.
You may satisfy the minimum distribution requirements applicable to two or
more 403(b) Tax Sheltered Annuities by receiving a distribution from one
such annuity equal to the amount required to satisfy the minimum
distribution requirement for all such 403(b) Tax Sheltered Annuities, as
described in more detail in IRS Notice 88-38.
Life expectancy is computed by use of the expected return multiples in
Tables V and VI of Section 1.72-9 of the Income Tax Regulations. Unless
otherwise elected by you by the time distributions are required to begin,
life expectancy shall be recalculated annually. Such election shall be
irrevocable and shall apply to all subsequent years. The life expectancy of
the non-spouse beneficiary may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such beneficiary
during the calendar year in which the individual attains age 70-1/2 and
payments for subsequent years shall be calculated on such life expectancy
reduced by one for each calendar year which has elapsed since the calendar
year life expectancy was first calculated.
6. If you die before your entire interest which accrued after December 31,
1986, has been distributed, the following distribution rules shall apply:
A. If you die after the distribution of your interest has commenced, the
remaining portion of your interest will continue to be distributed at
least as rapidly as under the methods of distribution being used prior
to your death.
B. If you die before distribution of your interest commences, your entire
post-1986 interest will be distributed by December 31 of the calendar
year containing the fifth anniversary of your death, unless an election
is made to receive distribution in accordance with (1) or (2) below.
3
<PAGE> 4
(1) If your interest is payable to a designated beneficiary and you
have not made an election as described above, then the entire
interest will be distributed over the life or over a period
certain not greater than the life expectancy of your designated
beneficiary commencing on or before December 31 of the calendar
year immediately following the calendar year of your death. Your
designated beneficiary may elect at any time to receive greater
payments.
(2) If your designated beneficiary is your surviving spouse, your
spouse may elect to receive equal or substantially equal payments
over the life or life expectancy of the surviving spouse
commencing at any date prior to the later of (i) December 31 of
the calendar year immediately following the calendar year of your
death; or (ii) December 31 of the calendar year in which you
would have attained age 70-1/2. Such election must be made no
later than the earlier of December 31 of the calendar year
containing the fifth anniversary of your death or the date
distributions are required to begin pursuant to the preceding
sentence. Your surviving spouse may accelerate these payments at
any time, i.e., increase the frequency or amount of such
payments.
Life expectancy is computed by use of the expected return multiples and
Tables V and VI of Section 1.72-9 of the Income Tax Regulations. For
purposes of distributions beginning after your death, unless otherwise
elected by your surviving spouse by the time distributions are required to
begin, life expectancy shall be recalculated annually. Such election shall
be irrevocable by the surviving spouse and shall apply to all subsequent
years. In the case of any other beneficiary, life expectancy shall be
recalculated using the attained age of such beneficiary during the calendar
year in which distributions are required to begin pursuant to this section,
and payments for any subsequent calendar year shall be calculated based on
such life expectancy reduced by one for each calendar year which has
elapsed since the calendar year life expectancy was first calculated.
Distributions under this Section are considered to have begun if
distributions are made on account of your attaining your required beginning
date or, if prior to the required beginning date, distributions irrevocably
commence over a period permitted and in an annuity form acceptable under
Section 1.401(a)(9) of the Regulations.
7. You may withdraw part or all of the Contract Value at any time this
contract is in force prior to the earlier of the Income Date or your death.
A. The withdrawal of Contract Value attributable to contributions made
pursuant to a salary reduction agreement (within the meaning of Code
Section 402(g)(3)(C)) may be executed only
(1) when you attain age 59-1/2, separate from service, die, or become
disabled (within the meaning of Code Section 72(m)(7)) or when
payable to a distributee or subject to the terms of a qualified
domestic relations order (as defined in Code Section 414(p)); or
(2) in the case of hardship (as defined for purposes of Code Section
401(k)), provided that any withdrawal of Contract Value in the
case of hardship may not include any income attributable to
salary reduction contributions.
B. The withdrawal limitations described in A. above apply to
(1) salary reduction contributions to Code Section 403(b) contracts
made for plan years beginning after December 31, 1988, and
(2) earnings credited to such contracts after the last plan year
beginning before January 1, 1989, on amounts attributable to
salary reduction contributions.
C. Any request for a withdrawal due to hardship must be submitted with
evidence acceptable to the Company on forms provided by the Company and
consistent with applicable law.
4
<PAGE> 5
8. A. Notwithstanding any provision of a plan to the contrary that would
otherwise limit a distributee's election under this Section, a
distributee may elect in writing and not less than 30 or more than 90
days prior to distribution, to have any portion of an eligible rollover
distribution hereunder paid directly to an eligible retirement plan
specified by the distributee in a direct rollover.
B. Definitions:
(1) Eligible rollover distributions: An eligible rollover
distribution is any distribution of all or any portion of the
balance to the credit of the distributee, except that an eligible
rollover distribution does not include: any distribution that is
one of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life
expectancy) of the distributee or the joint lives (or joint life
expectancy) of the distributee and the distributee's designated
beneficiary, or for a specified period of ten years or more; any
distribution to the extent such distribution is required under
Code Section 401(a)(9) of the Code; and the portion of any
distribution that is not includible in gross income (determined
without regard to the exclusion for net unrealized appreciation
with respect to employer securities).
(2) Eligible retirement plan: An eligible retirement plan is an
individual retirement account described in Code Section 408(a),
an individual retirement annuity described in Code Section
408(b), or an annuity plan described in Code Section 403(b), that
accepts that distributee's eligible rollover distribution.
(3) Distributee: a distributee includes an Employee or former
Employee. In addition, the Employee's or former Employee's
surviving spouse and the Employee's or former Employee's spouse
or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Code Section 414(p), are
distributees with regard to the interest of the spouse or former
spouse.
(4) Direct rollover: A direct rollover is a direct payment hereunder
to the eligible retirement plan specified by the distributee.
9. The Company is not liable for any tax or tax penalties paid by any party
resulting from failure to comply with the Code, ERISA and any rulings,
regulations, and requirements thereunder relating to the administration of
this contract.
10. If your contract is subject to the Employee Retirement Income Security Act
of 1974 ("ERISA"), your spouse will have certain rights, such as the right
to a Qualified Joint and Survivor Annuity Benefit ("OJSA") or a Qualified
Preretirement Survivor Annuity Benefit ("QPSA"). Your spouse's rights
under ERISA may limit your choice of payment plan, beneficiary, cash
surrenders and loans, as follows:
If you are married on the Income Date, your payment plan must be an
immediate annuity for your life with a survivor annuity for the life of
your spouse which is not less than 50 percent and not more than 100
percent of the amount of the annuity which is payable during the joint
lives of you and your spouse, and which is the amount of benefit which can
be purchased with Contract Value in excess of the outstanding loan
balance, if any.
If you die before your Income Date and your spouse survives you, the
payment of the Death Benefit to your named beneficiary is subject to your
spouse's right to receive an immediate annuity which is the actuarial
equivalent of one-half of the portion of your Contract Value in excess of
the outstanding loan balance, if any.
Your spouse must consent to your choice of a form of benefit other than
the QJSA/QPSA, beneficiaries who are not your spouse, cash surrenders and
loans.
5
<PAGE> 6
In order for your spouse to properly waive his or her QJSA/QPSA rights,
the Company must receive, in form satisfactory to the Company, your
spouse's written consent, or verification that you do not have a spouse,
or verification that your spouse cannot be located. Waiver of a spouse's
rights to QJSA/QPSA benefits and elections of an alternative form of
benefit cannot be made more than 90 days before your Income Date. A waiver
of a spouse's rights to QJSA/QPSA benefits may become ineffective if made
before you attain age 35, or if earlier, the date you terminate your
employment with your Employer. Waivers of a spouse's rights hereunder with
respect to a cash surrender or loan must be made not more than 90 days
before the date of distribution.
You may revoke an election requiring a waiver of your spouse's QJSA/QPSA
rights at any time during your lifetime and before the Income Date. Your
spouse, however, may not revoke his or her consent once given.
11. The following table is substituted for the One Life Minimum Table in the
contract.
ONE LIFE MINIMUM INCOME TABLE*
MONTHLY PAYMENTS FOR EACH $1,000 APPLIED
Age of Age of
Payee Life Life Payee Life Life
Last 10 Years 20 Years Last 10 Years 20 Years
Birth- Certain Certain Birth- Certain Certain
day day
------------------------------------------------------------------
15 and
under $2.80 $2.80 50 $3.87 $3.79
16 2.82 2.81 51 3.94 3.85
17 2.83 2.83 52 4.00 3.90
18 2.84 2.84 53 4.08 3.96
19 2.86 2.85 54 4.15 4.02
20 2.87 2.87 55 4.23 4.08
21 2.89 2.88 56 4.31 4.15
22 2.90 2.90 57 4.40 4.21
23 2.92 2.92 58 4.50 4.28
24 2.94 2.93 59 4.59 4.35
25 2.96 2.95 60 4.70 4.42
26 2.98 2.97 61 4.81 4.50
27 3.00 2.99 62 4.93 4.57
28 3.02 3.01 63 5.05 4.64
29 3.04 3.03 64 5.18 4.71
30 3.07 3.06 65 5.32 4.79
31 3.09 3.08 66 5.46 4.86
32 3.12 3.11 67 5.61 4.92
33 3.14 3.13 68 5.77 4.99
34 3.17 3.16 69 5.93 5.05
35 3.20 3.19 70 6.10 5.11
36 3.23 3.22 71 6.28 5.17
37 3.27 3.25 72 6.46 5.22
38 3.30 3.28 73 6.65 5.27
39 3.34 3.31 74 6.84 5.31
40 3.38 3.35 75 7.03 5.35
41 3.42 3.39 76 7.23 5.38
42 3.46 3.42 77 7.43 5.41
43 3.50 3.46 78 7.62 5.43
44 3.55 3.50 79 7.81 5.45
45 3.59 3.55 80 8.00 5.47
46 3.64 3.59 81 8.18 5.48
47 3.70 3.64 82 8.35 5.49
48 3.75 3.69 83 8.51 5.50
49 3.81 3.74 84 8.66 5.50
85 and 8.80 5.51
over
------------------------------------------------------------------
*Values are based on the "1983 Table a" adjusted for age last
birthday, with compound interest at 3% a year.
/s/ James N. Clark /s/ John F. Barrett
Secretary President and
Chief Executive Officer
6
<PAGE> 1
Exhibit 4(f)
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
ENDORSEMENT FOR ROTH INDIVIDUAL RETIREMENT ANNUITY
The terms of this endorsement apply and replace contrary contract terms only if
the Application indicates that the contract is issued as a Roth Individual
Retirement Annuity ("Roth IRA") under Internal Revenue Code ("Code") Section
408A. The Code and all Code regulations that apply to Roth IRAs are incorporated
by reference as if fully rewritten. In the event of any conflict between this
contract and any sections of the Code or Code regulations applicable to the Roth
IRA, the Code will govern.
OWNERSHIP, TRANSFERABILITY.
1. You must be Owner and the Annuitant. This contract is for the exclusive
benefit of you or your beneficiary. No joint ownership or contingent
ownership is permitted.
2. Your contract is not transferable except to the Company upon surrender
or settlement. This contract cannot be sold. This contract cannot be
assigned or used as collateral for a loan. This contract cannot be used
as security for the performance of any obligation for any other purpose
to any person other than the Company.
3. Your entire interest in the contract is nonforfeitable.
CONTRIBUTIONS.
1. The premiums or purchase payments you pay constitute your contributions
to your Roth IRA and are non-deductible for income tax reporting
purposes. The maximum total yearly contribution, not including any
rollover or conversion contribution, you can make to your Roth IRA is
$2,000. This $2,000 annual limit is coordinated with any other
traditional individual retirement account or annuity, including another
Roth IRA that you may own. If your annual compensation is less than
$2,000, then the maximum amount that you can contribute is limited to
the total amount of your compensation.
2. Under the Code the maximum contribution that you can make to a Roth IRA
is reduced as your annual adjusted gross income for individual
taxpayers and married taxpayers increases to the "applicable dollar
amount" as set forth in Code Section 408A(c)(3). Any excess
contribution you make to the Roth IRA is subject to tax penalty as set
forth in Code.
3. Contributions are permitted to be made after you attain age 70-1/2.
ROLLOVER OR TRANSFER CONTRIBUTIONS.
1. Only a qualified rollover, conversion or transfer contribution as
defined in Code Section 408A(e) is permitted for the Roth IRA. A
qualified rollover contribution for a Roth IRA is a contribution from
another Roth IRA or from another individual retirement plan that meets
the requirements of Code Section 408(d)(3). Amounts transferred from
one Roth IRA to another Roth IRA can be completed on a tax free basis.
A rollover contribution or money transfer from another individual
retirement plan defined in Code Section 408(a) or 408(b) can be made to
a Roth IRA, only if your gross income and tax filing status meets the
requirements of Code Section 408A.
2. The conversion of an existing traditional individual retirement plan,
other than a Roth IRA, to a Roth IRA shall be treated as a taxable
event.
3. Funds you receive in one of the ways described above, must be
contributed toward your Roth IRA contract within 60 days of the date
they are received by you, unless you elected to make a direct transfer
of such funds. For direct transfers, a reasonable period of time is
allowed.
1
<PAGE> 2
DISTRIBUTIONS.
1. The Code refers to money payments received from an individual retirement
plan, including Roth IRA, as distributions. The terms of your contract will
apply consistent with the provisions of the Code stated in this section.
2. The Code defines a qualified distribution as a payment or distribution made
at least five tax years after you have established and contributed to the
Roth IRA, and
a) is made on or after the date on which you attain age 59-1/2, or
b) is made to a beneficiary you have selected or to your estate on or
after your death, or
c) is made to you after you become disabled within the meaning of Code
Section 72(m)(7), or
d) which is a qualified special purpose distribution as permitted by
the Code.
Any qualified distribution from your Roth IRA will not be included in your
gross income.
3. Any distribution from your Roth IRA that does not satisfy the requirements
for a qualified distribution is treated as a non-qualified distribution. Any
non-qualified distribution you receive from your Roth IRA shall first be
treated as being made from your contributions to the Roth IRA. The money
withdrawn on this type of distribution is on a first in, first out basis.
This means that no portion of a nonqualified distribution is included in
your gross income until the total amount of all distributions from your Roth
IRA exceed the total amount of contributions you made to your Roth IRA. The
distribution amounts you receive in excess of your total contributions to
your Roth IRA are includable in your gross income.
REPORTS.
The Company shall furnish annual calendar year reports concerning the status
of your Roth IRA.
GENERAL.
In the event your Contract permits the refund of premiums or purchase
payments (other than excess contributions), any such refund will be applied
before December 31 of the calendar year following the year of the refund
toward the payment of future premiums or purchase payments or if available
toward the purchase of additional benefits.
/s/ James N. Clark /s/ John F. Barrett
Secretary President and
Chief Executive Officer
2
<PAGE> 1
Exhibit 4(g)
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
SECTION 401 PLAN ENDORSEMENT
THIS ENDORSEMENT APPLIES ONLY IF THE APPLICATION STATES THAT THIS CONTRACT IS
ISSUED AS AN INVESTMENT OF A PENSION OR PROFIT SHARING PLAN ("PLAN") DESCRIBED
IN SECTION 401 OF THE INTERNAL REVENUE CODE.
This endorsement supersedes anything in this Contract to the contrary. It is
intended to comply with applicable provisions of the Internal Revenue Code of
1986 (the "Code") and Regulations thereunder.
I OWNER AND BENEFICIARY
The owner and beneficiary of this Contract shall be the Plan trustee(s), as
trustee(s).
II CHANGE OF OWNERSHIP
This Contract may not be sold, transferred, assigned, discounted or pledged as
collateral for a loan or as security for the performance of an obligation or for
any other purpose to any person other than this Company, except:
(a) to the insured or annuitant as a distribution of an interest to which
such person is entitled under the terms of the Plan;
(b) to another trustee of the same Plan or another Plan; or
(c) to an alternate payee in accordance with Code Section 414(p).
III CODE REQUIREMENTS CONTROL
Additional Code requirements may apply to this Contract because it is an asset
of a qualified pension or profit sharing plan. All questions of interpretation
related to the Plan shall be determined by the Plan administrator identified in
the Plan document and who is solely responsible for complying with applicable
Code requirements. In the event of any conflict between the terms of this
Contract and any sections of the Internal Revenue Code applicable to Section 401
plans, those sections will govern. The Company is not liable for any tax or tax
penalties paid by any party as named in the Plan resulting from their failure to
comply with the Code and Internal Revenue Service rulings, regulations, and
requirements relating to the administration of the Plan.
IV RIGHT TO FURTHER AMEND
The Company reserves the right to further amend this endorsement and this
Contract from time to time, if necessary, in order to comply with applicable
provisions of the Code and Regulations thereunder.
<PAGE> 2
The following table is substituted for the One Life Minimum Table in the
Nonqualified Contract.
ONE LIFE MINIMUM INCOME TABLE*
MONTHLY PAYMENTS FOR EACH $1,000 APPLIED
--------------------------------------------------------------------
Age of Age of
Payee Life Life Payee Life Life
Last 10 Years 20 Years Last 10 Years 20 Years
Birth- Certain Certain Birth- Certain Certain
day day
--------------------------------------------------------------------
15 and
under $2.80 $2.80 50 $3.87 $3.79
16 2.82 2.81 51 3.94 3.85
17 2.83 2.83 52 4.00 3.90
18 2.84 2.84 53 4.08 3.96
19 2.86 2.85 54 4.15 4.02
20 2.87 2.87 55 4.23 4.08
21 2.89 2.88 56 4.31 4.15
22 2.90 2.90 57 4.40 4.21
23 2.92 2.92 58 4.50 4.28
24 2.94 2.93 59 4.59 4.35
25 2.96 2.95 60 4.70 4.42
26 2.98 2.97 61 4.81 4.50
27 3.00 2.99 62 4.93 4.57
28 3.02 3.01 63 5.05 4.64
29 3.04 3.03 64 5.18 4.71
30 3.07 3.06 65 5.32 4.79
31 3.09 3.08 66 5.46 4.86
32 3.12 3.11 67 5.61 4.92
33 3.14 3.13 68 5.77 4.99
34 3.17 3.16 69 5.93 5.05
35 3.20 3.19 70 6.10 5.11
36 3.23 3.22 71 6.28 5.17
37 3.27 3.25 72 6.46 5.22
38 3.30 3.28 73 6.65 5.27
39 3.34 3.31 74 6.84 5.31
40 3.38 3.35 75 7.03 5.35
41 3.42 3.39 76 7.23 5.38
42 3.46 3.42 77 7.43 5.41
43 3.50 3.46 78 7.62 5.43
44 3.55 3.50 79 7.81 5.45
45 3.59 3.55 80 8.00 5.47
46 3.64 3.59 81 8.18 5.48
47 3.70 3.64 82 8.35 5.49
48 3.75 3.69 83 8.51 5.50
49 3.81 3.74 84 8.66 5.50
85 and 8.80 5.51
over
--------------------------------------------------------------------
*Values are based on the "1983 Table a" adjusted for age last birthday,
with compound interest at 3% a year.
/s/ James N. Clark /s/ John F. Barrett
Secretary President and
Chief Executive Officer
<PAGE> 1
Exhibit 4(h)
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
CHARITABLE REMAINDER UNITRUST
WAIVER OF SURRENDER CHARGES
ENDORSEMENT
ADDITIONAL TIMES WHEN SURRENDER CHARGES WILL BE WAIVED
In addition to those situations set forth in the contract, the surrender charge
will not apply to withdrawals of any amounts in excess of the total net purchase
payment(s) made to that time when the contract is owned by a trustee of a
Charitable Remainder Unitrust. Withdrawals from such a contract are deemed to be
taken first from any such excess amounts. Only after such excess has been
exhausted are withdrawals deemed to be taken from net purchase payments.
DEFINITIONS
"Charitable Remainder Unitrust" means a trust as defined in Section 664(d)(2) of
the Internal Revenue Code of 1986, as amended.
/s/ James N. Clark /s/ John F. Barrett
Secretary President and
Chief Executive Officer
<PAGE> 1
Exhibit 4(i)
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
FREE WITHDRAWAL AMOUNT
ENDORSEMENT
The "Free Withdrawal Amount" provision set forth on page 9 of your Contract is
hereby amended in its entirety to read as follows:
FREE WITHDRAWAL AMOUNT
You may withdraw, without a surrender charge, an amount equal to 10% of all
purchase payments not already withdrawn which were made less than seven
years prior to the date of surrender or withdrawal. This free withdrawal
privilege is non-cumulative and available each Contract Year for eligible
purchase payments not already withdrawn. Free withdrawal amounts are deemed
to be withdrawn on a first-in, first-out basis.
/s/ James N. Clark /s/ John F. Barrett
Secretary President and
Chief Executive Officer
<PAGE> 1
Exhibit 4(j)
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
ADDITIONAL WAIVER OF
SURRENDER CHARGES RIDER
ADDITIONAL TIMES In addition to those situations set forth in the
WHEN SURRENDER contract, the surrender charge will not apply if the
CHARGES WILL BE owner or the annuitant is confined to a Long Term
WAIVED Care Facility or Hospital and has been so confined
for at least 30 days.
DEFINITIONS "Confined" means necessarily confined as an
inpatient. To be covered, confinement must commence
while this contract is in force and be required by
sickness or injury. Such confinement must have been
upon the recommendation of a physician.
"Injury" means accidental bodily injury which is
sustained while this contract is in force.
"Sickness" means sickness or disease which first
manifests itself while this contract is in force.
"Inpatient" means a person who is confined in a
Hospital or Long Term Care Facility as a resident
patient and for whom a charge of at least one day's
room and board is made by the Hospital or Long Term
Care Facility.
"Physician" means a duly licensed physician. It
does not include the owner or the annuitant or the
owner's or the annuitant's spouse, child, parent,
brother or sister.
"Long Term Care Facility" means a state licensed
Skilled Nursing Facility or Intermediate Care
Facility. Long Term Care Facility does not mean: A
Hospital; a place that primarily treats drug addicts
or alcoholics; a home for the aged or mentally ill, a
community living center, or a place that primarily
provides domiciliary, residency or retirement care;
or a place owned or operated by a member of the
owner's or the annuitant's immediate family.
"Skilled Nursing Facility" means a facility
which: is operated as a Skilled Nursing Facility
according to the law of the jurisdiction in which it
is located; provides skilled nursing care under the
supervision of a physician; provides continuous 24
hours a day nursing service by or under the
supervision of a registered graduate professional
nurse (R.N.); and maintains a daily medical record of
each patient.
"Intermediate Care Facility" means a facility
which: is operated as an Intermediate Care Facility
according to the law of the jurisdiction in which it
is located; provides continuous 24 hours a day
nursing service by or under the supervision of a
registered graduate professional nurse (R.N.) or a
licensed practical nurse (L.P.N.); and maintains a
daily medical record of each patient.
<PAGE> 2
"Hospital" means a facility which: is state
licensed and operated as a hospital according to the
law of the jurisdiction in which it is located;
operates primarily for the care and treatment of sick
or injured persons as inpatients; provides continuous
24 hours a day nursing service by or under the
supervision of a registered graduate professional
nurse (R.N.); is supervised by a staff of physicians;
and has medical, diagnostic and major surgical
facilities or has access to such facilities on a
pre-arranged basis.
Neither "registered graduate professional nurse"
nor "licensed practical nurse" includes the owner or
the annuitant or the owner's or the annuitant's
spouse, child, parent, brother or sister.
NOTICE AND PROOF Written notice and proof of confinement for 30
OF CLAIM days in a Hospital or Long Term Care Facility must be
received at our Home Office prior to our waiver of
surrender charges because of confinement.
POLICY TERMS APPLY This rider is attached to and made a part of the
contract. The terms of the contract apply to the
rider except to the extent they are in conflict with
its terms.
WHEN RIDER ENDS This rider will end if the contract terminates
or is surrendered for cash.
/s/ James N. Clark /s/ John F. Barrett
Secretary President and
Chief Executive Officer
<PAGE> 1
[LOGO]
FOR ASSISTANCE IN COMPLETING THIS APPLICATION, CALL 1-800-669-2796
Underwritten by: Western-Southern Life Assurance Company
<TABLE>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
OWNER [ ] INDIVIDUAL [ ] CORPORATION [ ] TRUST
- ------------------------------------------------------------------------------------------------------------------------------------
Name - First Middle Last [ ] Male Birth Date - -
[ ] Female (m-d-y)
- ------------------------------------------------------------------------------------------------------------------------------------
Trust or Corporation Name Phone #
- ------------------------------------------------------------------------------------------------------------------------------------
Address - Street Social Security #
or T.I.N.
- ------------------------------------------------------------------------------------------------------------------------------------
City State Zip Relationship
to Annuitant
- ------------------------------------------------------------------------------------------------------------------------------------
[ ] JOINT OWNER [ ] CONTINGENT OWNER
- ------------------------------------------------------------------------------------------------------------------------------------
Name - First Middle Last [ ] Male Birth Date - -
[ ] Female (m-d-y)
- ------------------------------------------------------------------------------------------------------------------------------------
Address - Street Social Security #
or T.I.N.
- ------------------------------------------------------------------------------------------------------------------------------------
City State Zip Relationship
to Annuitant
- ------------------------------------------------------------------------------------------------------------------------------------
ANNUITANT Complete if different from Owner
- ------------------------------------------------------------------------------------------------------------------------------------
Name - First Middle Last [ ] Male Birth Date - -
[ ] Female (m-d-y)
- ------------------------------------------------------------------------------------------------------------------------------------
Address - Street Social Security #
- ------------------------------------------------------------------------------------------------------------------------------------
City State Zip
- ------------------------------------------------------------------------------------------------------------------------------------
BENEFICIARY Full Name of Beneficiary(ies) and Relationship to Annuitant
- ------------------------------------------------------------------------------------------------------------------------------------
A. Primary Beneficiary(ies): (Additional Beneficiary form may be required for tax qualified plans.)
- ------------------------------------------------------------------------------------------------------------------------------------
Name Relationship Social Security Number Date of Birth
- - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Name Relationship Social Security Number Date of Birth
- - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Name Relationship Social Security Number Date of Birth
- - - -
- ------------------------------------------------------------------------------------------------------------------------------------
B. Contingent Beneficiary(ies): To receive benefits if none of the Primary Beneficiaries survive the
Annuitant prior to the Income Date.
- ------------------------------------------------------------------------------------------------------------------------------------
Name Relationship Social Security Number Date of Birth
- - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Name Relationship Social Security Number Date of Birth
- - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Name Relationship Social Security Number Date of Birth
- - - -
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INFORMATION
- ------------------------------------------------------------------------------------------------------------------------------------
Initial Purchase Payment $ ___________________________ 1035 Exchange? [ ] No [ ] Yes (Please submit appropriate exchange forms)
- ------------------------------------------------------------------------------------------------------------------------------------
Will this contract replace any life insurance policy or annuity contract in this
or any other company? [ ] No [ ] Yes
If yes, please list company name: ____________________________________
Policy/Contract Number:___________________________
- ------------------------------------------------------------------------------------------------------------------------------------
PLAN TYPE (Check only one): [ ] Non-Qualified [ ] 457 [ ] 401(k) [ ] 403(b) [ ] Pension/Profit Sharing [ ]
Other:________________________
[ ] Ordinary IRA [ ] Roth IRA [ ] SEP-IRA or [ ] SIMPLE-IRA
[ ] Contribution* [ ] Contribution* [ ] Employer Contribution*
[ ] Transfer [ ] Transfer from Roth IRA [ ] Employee Salary Deferral Contribution*
[ ] Rollover [ ] Conversion from Ordinary IRA
*Contribution for tax year: Year _____________ $ _____________ Year _____________ $ _____________
Note: If the plan is being funded by transfer, rollover or conversion in the
year, or any year after, the owner attains age 70-1/2 any minimum
distribution requirement for the year of funding cannot be placed in
this contract.
- ------------------------------------------------------------------------------------------------------------------------------------
If no date is selected, the Income Date on non-tax qualified plans and the IRA tax
qualified plan will be the later of the contract anniversary on or following the
annuitant's 80th birthday or 10 years after issue. On all other tax-qualified plans with
issue ages less than 70, the Income Date will be determined by the plan document.
Income Date (m-d-y): ___ - ___ - ___ Choosing an Income Date after age 70-1/2 does not defer required distribution from
tax-qualified plans.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 2
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Must be whole percentage; Minimum of 5%; Must total 100%
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
____ % Emerging Growth ____ % Value Plus ____ % Balanced ____
____ % International Equity ____ % Growth & Income ____ % Income Opportunity ____
[ ] I prefer to use the following Touchstone Asset Allocation model:____________. ____
Model #
- -------------------------------------------------------------------------------------------------------------
Please transfer $___________ ($200 minimum) from the (check one): [ ] Standby Income [ ] Fixed Account
Frequency: [ ] Monthly [ ] Quarterly
____ _____ _____ _____
____ _____ _____ _____
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
[ ] No [ ] Yes If answered yes, I (We) authorize Western-Southern Life Assurance Company and its
affiliates and the Variable Annuity Administrator to honor telephone instructions from any person who can
furnish proper identification to transfer values among the different investment options. I (We) understand
that I am (we are) responsible for losses due to unauthorized or fraudulent telephone instructions to the
extent and under the circumstances described in the variable annuity contract Prospectus under the caption
"TRANSFERS." I (We) further understand that the telephone privilege may be modified, suspended, or
discontinued at any time and without prior notice. THIS WILL NOT APPLY IF NEITHER BOX IS CHECKED.
- -------------------------------------------------------------------------------------------------------------
The statements and answers in this application are true and complete to the best of my (our) knowledge and
belief. Under penalty of perjury, I (we) certify that the social security number(s) and/or tax identification
number(s) listed above is (are) correct. Any person who, with intent to defraud or knowing that he/she 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. I (WE) UNDERSTAND THAT ALL VALUES, WHEN BASED ON THE
INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO A DOLLAR AMOUNT. I
ACKNOWLEDGE RECEIPT OF A CURRENT VARIABLE ANNUITY PROSPECTUS.
[ ] Please send me a copy of the Statement of Additional Information to the Prospectus.
- -------------------------------------------------------------------------------------------------------------
Signed At: City Date (m-d-y): ___ - ___ - ___
- -------------------------------------------------------------------------------------------------------------
Owner
X
- -------------------------------------------------------------------------------------------------------------
Annuitant (Required only for tax qualified & 457 plans)
X
- -------------------------------------------------------------------------------------------------------------
By signing below, the Registered Rep/Agent certifies that:
a) The questions contained in this application were asked of the Owner and the answers duly recorded; that
this application is complete and true to the best of my knowledge and belief; and
b) I am NASD registered and state licensed for variable annuity contracts where this application is written;
and
c) To the best of my knowledge and belief, this application |_| does |_| does not involve replacement of
existing life insurance or annuities.
- -------------------------------------------------------------------------------------------------------------
Registered Rep/Agent Registered Rep/Agent #
X ___ ___ ___ ___ ___ ___
- -------------------------------------------------------------------------------------------------------------
Print name of Registered Rep/Agent
- -------------------------------------------------------------------------------------------------------------
Business Phone
- -------------------------------------------------------------------------------------------------------------
=============================================================================================================
PLEASE MAKE CHECK PAYABLE TO WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
Please Mail To:
TOUCHSTONE VARIABLE ANNUITY SER
P.O. Box 2850
Cincinnati, OH 45201-2850
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 1
Exhibit 9
March 16, 1994
Western-Southern Life
Assurance Company
400 Broadway
Cincinnati, Ohio 45202
Ladies and Gentlemen:
This opinion is furnished in connection with the offering of variable
annuity contracts (the "Contracts") of Western-Southern Life Assurance Company
(the "Company") under a Registration Statement on Form N-4 to be filed herewith
by the Company and Western-Southern Life Assurance Company Separate Account 1
(the "Separate Account") under the Securities Act of 1933, as amended, and the
Investment Company Act of 1940, as amended.
I have supervised the establishment of the Separate Account on July 27,
1992, and February 8, 1993, by the Executive Committee of the Company, pursuant
to Section 3907.15 of the Ohio Revised Code. I have made such examination of the
law and examined such corporate records and such other documents as in my
judgment are necessary and appropriate to enable me to render the following
opinions:
1. The Company has been duly organized under the laws of the State of Ohio
and is a validly existing stock life insurance corporation.
2. The Separate Account is duly created and validly existing as an
insurance corporation separate account under the laws of the State of
Ohio.
3. The portion of the assets to be held in the Separate Account equal to
the reserves and other liabilities under the Contracts is not
chargeable with liabilities arising out of any other business the
Company may conduct.
4. The offer and sale of the Contracts have been duly authorized by the
Company and, when issued as contemplated by the Registration Statement
[as it may from time to time be amended], the Contracts will constitute
legal, validly issued and binding obligations of the Company in
accordance with their terms.
I hereby consent to the filing of this opinion as an exhibit to the Registration
Statement.
Very truly yours,
/s/ DONALD J. WUEBBLING
Donald J. Wuebbling
Vice President
and General Counsel
DJW:jam
<PAGE> 1
Exhibit 10
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in Post-Effective Amendment No. 9
to the Registration Statement under the Securities Act of 1933 and Amendment
No. 16 to the Registration Statement under the Investment Company Act of 1940
of Western-Southern Life Assurance Company Separate Account I on Form N-4
(File No. 33-76582) of our report, dated April 27, 1998, on our audits of the
financial statements of Western-Southern Life Assurance Company and our report,
dated January 16, 1998, on our audits of the financial statements of
Western-Southern Life Assurance Company Separate Account I. We also consent to
the reference to our firm under the caption "Independent Accountants".
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Cincinnati, Ohio
November 4, 1998
<PAGE> 1
POWER OF ATTORNEY
WHEREAS, WESTERN-SOUTHERN LIFE ASSURANCE COMPANY, an Ohio corporation
(the "Company"), proposes to file with the Securities and Exchange Commission on
or before November 4, 1998, pursuant to the provisions of the Securities Act of
1933, as amended, and the rules and regulations thereunder, and the Investment
Company Act of 1940, as amended, and the rules and regulations thereunder,
post-effective amendments to the registration statement of the Company's
Separate Account 1 and post-effective amendments to the registration statement
of the Company's Separate Account 2 (collectively, the "Post-Effective
Amendments"); and
WHEREAS, the undersigned is a Director of the Company;
NOW, THEREFORE, the undersigned hereby constitutes and appoints John F.
Barrett and Edward S. Heenan, and each of them individually, his attorney in
fact, for him and in his name, place and stead and in his office and capacity
with the Company, to execute and file the Post-Effective Amendments, including
the prospectuses, statements of additional information and exhibits included
therein, and thereafter to execute and file any additional amended
post-effective amendment or amendments, amended prospectus or prospectuses,
amended statement or statements of additional information, amended exhibits or
any supplements to any of the foregoing (collectively, the "Amended Documents"),
hereby giving and granting to said attorneys full power and authority to do and
perform each and every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as he might
or could do if personally present at the doing thereof, hereby ratifying and
confirming all that said attorneys may or shall lawfully do or cause to be done
by virtue hereof.
This authority hereby granted is limited to the execution and delivery
of the Post-Effective Amendments and Amended Documents and included documents
and, unless earlier revoked by me or expressly extended by me in writing, shall
remain in force and effective only until such Post-Effective Amendments shall
have become effective under the federal securities laws and in any event no
later than January 31, 1999.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
28th day of October, 1998.
/s/ John F. Barrett
---------------------------------
John F. Barrett
<PAGE> 2
POWER OF ATTORNEY
WHEREAS, WESTERN-SOUTHERN LIFE ASSURANCE COMPANY, an Ohio corporation
(the "Company"), proposes to file with the Securities and Exchange Commission on
or before November 4, 1998, pursuant to the provisions of the Securities Act of
1933, as amended, and the rules and regulations thereunder, and the Investment
Company Act of 1940, as amended, and the rules and regulations thereunder,
post-effective amendments to the registration statement of the Company's
Separate Account 1 and post-effective amendments to the registration statement
of the Company's Separate Account 2 (collectively, the "Post-Effective
Amendments"); and
WHEREAS, the undersigned is a Director of the Company;
NOW, THEREFORE, the undersigned hereby constitutes and appoints John F.
Barrett and Edward S. Heenan, and each of them individually, his attorney in
fact, for him and in his name, place and stead and in his office and capacity
with the Company, to execute and file the Post-Effective Amendments, including
the prospectuses, statements of additional information and exhibits included
therein, and thereafter to execute and file any additional amended
post-effective amendment or amendments, amended prospectus or prospectuses,
amended statement or statements of additional information, amended exhibits or
any supplements to any of the foregoing (collectively, the "Amended Documents"),
hereby giving and granting to said attorneys full power and authority to do and
perform each and every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as he might
or could do if personally present at the doing thereof, hereby ratifying and
confirming all that said attorneys may or shall lawfully do or cause to be done
by virtue hereof.
This authority hereby granted is limited to the execution and delivery
of the Post-Effective Amendments and Amended Documents and included documents
and, unless earlier revoked by me or expressly extended by me in writing, shall
remain in force and effective only until such Post-Effective Amendments shall
have become effective under the federal securities laws and in any event no
later than January 31, 1999.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
29th day of October, 1998.
/s/ Donald A. Bliss
---------------------------------
Donald A. Bliss
<PAGE> 3
POWER OF ATTORNEY
WHEREAS, WESTERN-SOUTHERN LIFE ASSURANCE COMPANY, an Ohio corporation
(the "Company"), proposes to file with the Securities and Exchange Commission on
or before November 4, 1998, pursuant to the provisions of the Securities Act of
1933, as amended, and the rules and regulations thereunder, and the Investment
Company Act of 1940, as amended, and the rules and regulations thereunder,
post-effective amendments to the registration statement of the Company's
Separate Account 1 and post-effective amendments to the registration statement
of the Company's Separate Account 2 (collectively, the "Post-Effective
Amendments"); and
WHEREAS, the undersigned is a Director of the Company;
NOW, THEREFORE, the undersigned hereby constitutes and appoints John F.
Barrett and Edward S. Heenan, and each of them individually, his attorney in
fact, for him and in his name, place and stead and in his office and capacity
with the Company, to execute and file the Post-Effective Amendments, including
the prospectuses, statements of additional information and exhibits included
therein, and thereafter to execute and file any additional amended
post-effective amendment or amendments, amended prospectus or prospectuses,
amended statement or statements of additional information, amended exhibits or
any supplements to any of the foregoing (collectively, the "Amended Documents"),
hereby giving and granting to said attorneys full power and authority to do and
perform each and every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as he might
or could do if personally present at the doing thereof, hereby ratifying and
confirming all that said attorneys may or shall lawfully do or cause to be done
by virtue hereof.
This authority hereby granted is limited to the execution and delivery
of the Post-Effective Amendments and Amended Documents and included documents
and, unless earlier revoked by me or expressly extended by me in writing, shall
remain in force and effective only until such Post-Effective Amendments shall
have become effective under the federal securities laws and in any event no
later than January 31, 1999.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
28th day of October, 1998.
/s/ James N. Clark
---------------------------------
James N. Clark
<PAGE> 4
POWER OF ATTORNEY
WHEREAS, WESTERN-SOUTHERN LIFE ASSURANCE COMPANY, an Ohio corporation
(the "Company"), proposes to file with the Securities and Exchange Commission on
or before November 4, 1998, pursuant to the provisions of the Securities Act of
1933, as amended, and the rules and regulations thereunder, and the Investment
Company Act of 1940, as amended, and the rules and regulations thereunder,
post-effective amendments to the registration statement of the Company's
Separate Account 1 and post-effective amendments to the registration statement
of the Company's Separate Account 2 (collectively, the "Post-Effective
Amendments"); and
WHEREAS, the undersigned is a Director of the Company;
NOW, THEREFORE, the undersigned hereby constitutes and appoints John F.
Barrett and Edward S. Heenan, and each of them individually, his attorney in
fact, for him and in his name, place and stead and in his office and capacity
with the Company, to execute and file the Post-Effective Amendments, including
the prospectuses, statements of additional information and exhibits included
therein, and thereafter to execute and file any additional amended
post-effective amendment or amendments, amended prospectus or prospectuses,
amended statement or statements of additional information, amended exhibits or
any supplements to any of the foregoing (collectively, the "Amended Documents"),
hereby giving and granting to said attorneys full power and authority to do and
perform each and every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as he might
or could do if personally present at the doing thereof, hereby ratifying and
confirming all that said attorneys may or shall lawfully do or cause to be done
by virtue hereof.
This authority hereby granted is limited to the execution and delivery
of the Post-Effective Amendments and Amended Documents and included documents
and, unless earlier revoked by me or expressly extended by me in writing, shall
remain in force and effective only until such Post-Effective Amendments shall
have become effective under the federal securities laws and in any event no
later than January 31, 1999.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
28th day of October, 1998.
/s/ Dr. Lawrence C. Hawkins
---------------------------------
Dr. Lawrence C. Hawkins
<PAGE> 5
POWER OF ATTORNEY
WHEREAS, WESTERN-SOUTHERN LIFE ASSURANCE COMPANY, an Ohio corporation
(the "Company"), proposes to file with the Securities and Exchange Commission on
or before November 4, 1998, pursuant to the provisions of the Securities Act of
1933, as amended, and the rules and regulations thereunder, and the Investment
Company Act of 1940, as amended, and the rules and regulations thereunder,
post-effective amendments to the registration statement of the Company's
Separate Account 1 and post-effective amendments to the registration statement
of the Company's Separate Account 2 (collectively, the "Post-Effective
Amendments"); and
WHEREAS, the undersigned is a Director of the Company;
NOW, THEREFORE, the undersigned hereby constitutes and appoints John F.
Barrett and Edward S. Heenan, and each of them individually, his attorney in
fact, for him and in his name, place and stead and in his office and capacity
with the Company, to execute and file the Post-Effective Amendments, including
the prospectuses, statements of additional information and exhibits included
therein, and thereafter to execute and file any additional amended
post-effective amendment or amendments, amended prospectus or prospectuses,
amended statement or statements of additional information, amended exhibits or
any supplements to any of the foregoing (collectively, the "Amended Documents"),
hereby giving and granting to said attorneys full power and authority to do and
perform each and every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as he might
or could do if personally present at the doing thereof, hereby ratifying and
confirming all that said attorneys may or shall lawfully do or cause to be done
by virtue hereof.
This authority hereby granted is limited to the execution and delivery
of the Post-Effective Amendments and Amended Documents and included documents
and, unless earlier revoked by me or expressly extended by me in writing, shall
remain in force and effective only until such Post-Effective Amendments shall
have become effective under the federal securities laws and in any event no
later than January 31, 1999.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
28th day of October, 1998.
/s/ Dr. J. Harold Kotte
---------------------------------
Dr. J. Harold Kotte
<PAGE> 6
POWER OF ATTORNEY
WHEREAS, WESTERN-SOUTHERN LIFE ASSURANCE COMPANY, an Ohio corporation
(the "Company"), proposes to file with the Securities and Exchange Commission on
or before November 4, 1998, pursuant to the provisions of the Securities Act of
1933, as amended, and the rules and regulations thereunder, and the Investment
Company Act of 1940, as amended, and the rules and regulations thereunder,
post-effective amendments to the registration statement of the Company's
Separate Account 1 and post-effective amendments to the registration statement
of the Company's Separate Account 2 (collectively, the "Post-Effective
Amendments"); and
WHEREAS, the undersigned is a Director of the Company;
NOW, THEREFORE, the undersigned hereby constitutes and appoints John F.
Barrett and Edward S. Heenan, and each of them individually, his attorney in
fact, for him and in his name, place and stead and in his office and capacity
with the Company, to execute and file the Post-Effective Amendments, including
the prospectuses, statements of additional information and exhibits included
therein, and thereafter to execute and file any additional amended
post-effective amendment or amendments, amended prospectus or prospectuses,
amended statement or statements of additional information, amended exhibits or
any supplements to any of the foregoing (collectively, the "Amended Documents"),
hereby giving and granting to said attorneys full power and authority to do and
perform each and every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as he might
or could do if personally present at the doing thereof, hereby ratifying and
confirming all that said attorneys may or shall lawfully do or cause to be done
by virtue hereof.
This authority hereby granted is limited to the execution and delivery
of the Post-Effective Amendments and Amended Documents and included documents
and, unless earlier revoked by me or expressly extended by me in writing, shall
remain in force and effective only until such Post-Effective Amendments shall
have become effective under the federal securities laws and in any event no
later than January 31, 1999.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
28th day of October, 1998.
/s/ Carl A. Kroch
---------------------------------
Carl A. Kroch
<PAGE> 7
POWER OF ATTORNEY
WHEREAS, WESTERN-SOUTHERN LIFE ASSURANCE COMPANY, an Ohio corporation
(the "Company"), proposes to file with the Securities and Exchange Commission on
or before November 4, 1998, pursuant to the provisions of the Securities Act of
1933, as amended, and the rules and regulations thereunder, and the Investment
Company Act of 1940, as amended, and the rules and regulations thereunder,
post-effective amendments to the registration statement of the Company's
Separate Account 1 and post-effective amendments to the registration statement
of the Company's Separate Account 2 (collectively, the "Post-Effective
Amendments"); and
WHEREAS, the undersigned is a Director of the Company;
NOW, THEREFORE, the undersigned hereby constitutes and appoints John F.
Barrett and Edward S. Heenan, and each of them individually, his attorney in
fact, for him and in his name, place and stead and in his office and capacity
with the Company, to execute and file the Post-Effective Amendments, including
the prospectuses, statements of additional information and exhibits included
therein, and thereafter to execute and file any additional amended
post-effective amendment or amendments, amended prospectus or prospectuses,
amended statement or statements of additional information, amended exhibits or
any supplements to any of the foregoing (collectively, the "Amended Documents"),
hereby giving and granting to said attorneys full power and authority to do and
perform each and every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as he might
or could do if personally present at the doing thereof, hereby ratifying and
confirming all that said attorneys may or shall lawfully do or cause to be done
by virtue hereof.
This authority hereby granted is limited to the execution and delivery
of the Post-Effective Amendments and Amended Documents and included documents
and, unless earlier revoked by me or expressly extended by me in writing, shall
remain in force and effective only until such Post-Effective Amendments shall
have become effective under the federal securities laws and in any event no
later than January 31, 1999.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
29th day of October, 1998.
/s/ Eugene P. Ruehlmann
---------------------------------
Eugene P. Ruehlmann
<PAGE> 8
POWER OF ATTORNEY
WHEREAS, WESTERN-SOUTHERN LIFE ASSURANCE COMPANY, an Ohio corporation
(the "Company"), proposes to file with the Securities and Exchange Commission on
or before November 4, 1998, pursuant to the provisions of the Securities Act of
1933, as amended, and the rules and regulations thereunder, and the Investment
Company Act of 1940, as amended, and the rules and regulations thereunder,
post-effective amendments to the registration statement of the Company's
Separate Account 1 and post-effective amendments to the registration statement
of the Company's Separate Account 2 (collectively, the "Post-Effective
Amendments"); and
WHEREAS, the undersigned is a Director of the Company;
NOW, THEREFORE, the undersigned hereby constitutes and appoints John F.
Barrett and Edward S. Heenan, and each of them individually, his attorney in
fact, for him and in his name, place and stead and in his office and capacity
with the Company, to execute and file the Post-Effective Amendments, including
the prospectuses, statements of additional information and exhibits included
therein, and thereafter to execute and file any additional amended
post-effective amendment or amendments, amended prospectus or prospectuses,
amended statement or statements of additional information, amended exhibits or
any supplements to any of the foregoing (collectively, the "Amended Documents"),
hereby giving and granting to said attorneys full power and authority to do and
perform each and every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as he might
or could do if personally present at the doing thereof, hereby ratifying and
confirming all that said attorneys may or shall lawfully do or cause to be done
by virtue hereof.
This authority hereby granted is limited to the execution and delivery
of the Post-Effective Amendments and Amended Documents and included documents
and, unless earlier revoked by me or expressly extended by me in writing, shall
remain in force and effective only until such Post-Effective Amendments shall
have become effective under the federal securities laws and in any event no
later than January 31, 1999.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
28th day of October, 1998.
/s/ Thomas L. Williams
---------------------------------
Thomas L. Williams
<PAGE> 9
POWER OF ATTORNEY
WHEREAS, WESTERN-SOUTHERN LIFE ASSURANCE COMPANY, an Ohio corporation
(the "Company"), proposes to file with the Securities and Exchange Commission on
or before November 4, 1998, pursuant to the provisions of the Securities Act of
1933, as amended, and the rules and regulations thereunder, and the Investment
Company Act of 1940, as amended, and the rules and regulations thereunder,
post-effective amendments to the registration statement of the Company's
Separate Account 1 and post-effective amendments to the registration statement
of the Company's Separate Account 2 (collectively, the "Post-Effective
Amendments"); and
WHEREAS, the undersigned is a Director of the Company;
NOW, THEREFORE, the undersigned hereby constitutes and appoints John F.
Barrett and Edward S. Heenan, and each of them individually, his attorney in
fact, for him and in his name, place and stead and in his office and capacity
with the Company, to execute and file the Post-Effective Amendments, including
the prospectuses, statements of additional information and exhibits included
therein, and thereafter to execute and file any additional amended
post-effective amendment or amendments, amended prospectus or prospectuses,
amended statement or statements of additional information, amended exhibits or
any supplements to any of the foregoing (collectively, the "Amended Documents"),
hereby giving and granting to said attorneys full power and authority to do and
perform each and every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as he might
or could do if personally present at the doing thereof, hereby ratifying and
confirming all that said attorneys may or shall lawfully do or cause to be done
by virtue hereof.
This authority hereby granted is limited to the execution and delivery
of the Post-Effective Amendments and Amended Documents and included documents
and, unless earlier revoked by me or expressly extended by me in writing, shall
remain in force and effective only until such Post-Effective Amendments shall
have become effective under the federal securities laws and in any event no
later than January 31, 1999.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
28th day of October, 1998.
/s/ William J. Williams
---------------------------------
William J. Williams
