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EXHIBIT 4(c)
ENDORSEMENT
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AN ENDORSEMENT TO PROVIDE A SUPPLEMENTAL DEATH BENEFIT, KNOWN AS THE "EARNINGS
APPRECIATOR"
THIS ENDORSEMENT IS PART OF THE CONTRACT TO WHICH IT IS ATTACHED AND IS
EFFECTIVE UPON THE ENDORSEMENT'S ISSUANCE. IN THE CASE OF A CONFLICT WITH ANY
OTHER PROVISION IN THE CONTRACT, THE PROVISIONS OF THIS ENDORSEMENT WILL
CONTROL.
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THE CONTRACT DATA PAGES ARE AMENDED TO INCLUDE THE FOLLOWING SECTION:
EARNINGS APPRECIATOR CHARGE:
If you elect the Earnings Appreciator supplemental death benefit, the amount of
the charge depends on the death benefit option that you have elected. The
charge for the Earnings Appreciator supplemental death benefit is deducted from
your Contract Value on each Contract Anniversary and upon certain other
transactions. The charge is deducted pro-rata from all Allocation Options to
which your Contract Value is allocated. If you elected a GMDB feature, the
Earnings Appreciator charge is an effective annual rate of [0.15%] of your
Contract Value. If you did not elect a GMDB feature, the Earnings Appreciator
charge is an effective annual rate of [0.20%] of your Contract Value. Your
Contract Data pages show whether you elected a GMDB feature.
THE FOLLOWING SECTION IS ADDED TO THE CONTRACT:
EARNINGS APPRECIATOR (SUPPLEMENTAL DEATH BENEFIT)
An Earnings Appreciator is an optional supplemental death benefit that
provides, depending on the appreciation of the Contract Value, a supplemental
payment upon the death of the sole or last surviving Owner during the
Accumulation Period. If a payment is made, it will be in addition to any other
death benefit payment made under this Contract. If the Earnings Appreciator is
available at the time you apply for your Contract, you must elect the Earnings
Appreciator at that time if you want the benefit. Once elected, the Earnings
Appreciator cannot be revoked. The calculations of this benefit and the related
charge are described below.
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EARNINGS APPRECIATOR BENEFIT:
Upon receipt of due proof of death and any other documentation we need, the
Earnings Appreciator Benefit is calculated for each Purchase Payment. For each
Purchase Payment, the Earnings Appreciator Benefit is a percentage of the
lesser of (1) the Adjusted Purchase Payment (defined below) and (2) the
earnings attributed to the Adjusted Purchase Payment. For Contracts with an
Owner younger than age 66 on the date the application is signed, the Earnings
Appreciator percentage is 45%. For Contracts with an Owner age 66 or older on
the date the application is signed, the Earnings Appreciator percentage is 25%.
In cases of Joint Owners, the age of the older of the Owner or Joint Owner
determines the Earnings Appreciator percentage. The total Earnings Appreciator
Benefit is the sum of the Earnings Appreciator Benefits for all of your
Purchase Payments. The Earnings Appreciator Benefit is added to any other death
benefit payment under this Contract.
Each "Adjusted Purchase Payment" is the Invested Purchase Payment reduced
pro-rata by any subsequent withdrawals. Reduction on a pro-rata basis means
that we calculate the percentage of your current Contract Value being withdrawn
and reduce each Adjusted Purchase Payment made prior to the withdrawal by that
percentage. For example, if your Contract Value is $40,000 and you withdraw
$10,000, you have withdrawn 25% of your Contract Value. If you have two
Adjusted Purchase Payments prior to the withdrawal ($10,000 and $20,000), each
of those Adjusted Purchase Payments would be reduced by 25% (to $7,500 and
$15,000). The amount of earnings allocated to each Adjusted Purchase Payment is
also reduced by the same percentage. For purposes of this Earnings Appreciator
calculation, it does not matter from which Allocation Option(s) the withdrawal
is made. The Adjusted Purchase Payment amount is used only in connection with
the Earnings Appreciator calculations.
Earnings are periodically allocated to each Adjusted Purchase Payment on a
pro-rata basis in the manner described in this paragraph. We calculate the
amount of earnings since the last earnings allocation and we allocate those
earnings proportionately among the Adjusted Purchase Payments (based on the
amount of each Adjusted Purchase Payment plus the earnings previously allocated
to that Adjusted Purchase Payment). For example, if you have two Adjusted
Purchase Payments - one with an Adjusted Purchase Payment and allocated
earnings of $30,000 and the other with an Adjusted Purchase Payment and
allocated earnings of $20,000 (therefore 60% and 40% of the total respectively)
-- and your Contract Value has increased by $5,000 due to earnings since the
last earnings allocation, 60% of the earnings ($3,000) will be allocated to the
first Adjusted Purchase Payment and 40% ($2,000) will be allocated to the
second Adjusted Purchase Payment. For purposes of this calculation only, we
assume that each Adjusted Purchase Payment earns the same rate of return for
each calculation period. In other words, this calculation does not depend on
the specific Allocation Options in which the Purchase Payment was initially
invested. When allocating earnings at the time of a death benefit payment, we
will first deduct from earnings the amount of any charges or other amounts
deducted from your Contract Value at that time.
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EARNINGS APPRECIATOR CHARGE:
To compensate us for assuming the risks associated with the Earnings
Appreciator, we deduct from your Contract Value a charge based on a percentage
of your Contract Value. The percentage depends on the death benefit option that
you have elected, as shown on the Contract Data pages.
The Earnings Appreciator Charge is calculated: (1) on each Contact Anniversary;
(2) on the Annuity Date; (3) upon death of the owner prior to the Annuity Date;
(4) upon a full or partial withdrawal; and (5) upon a subsequent Purchase
Payment. The fee is based on the Contract Value at the time of the calculation
and is pro-rated based on the portion of the Contract Year since the date that
the Earnings Appreciator Charge was last calculated.
Although the Earnings Appreciator Charge may be calculated more often, it is
deducted only: (1) on each Contact Anniversary; (2) on the Annuity Date; (3)
upon death of the owner prior to the Annuity Date; (4) upon a full withdrawal;
and (5) upon a partial withdrawal if the Contract Value remaining after such
partial withdrawal is not enough to cover the then applicable Earnings
Appreciator Charge. If the Earnings Appreciator Charge is calculated on a date
but is not deducted on that date (such as on the date of a subsequent Purchase
Payment), the charge is accrued and deducted on the next deduction date (such
as a Contract Anniversary). We reserve the right to calculate and deduct the
fee more frequently than annually, such as quarterly.
The Earnings Appreciator Charge is deducted from each Allocation Option in the
same proportion that the Contract Value allocated to an Allocation Option bears
to the total Contract Value. Upon a full withdrawal or if the Contract Value
remaining after a partial withdrawal is not enough to cover the then applicable
Earnings Appreciator Charge, the Earnings Appreciator Charge is deducted from
the amount paid.
The payment of the Earnings Appreciator charge will not reduce the Adjusted
Purchase Payments for purposes of calculating subsequent Earnings Appreciator
charges. The payment of the Earnings Appreciator charge will be deemed to be
made from Earnings for purposes of calculating other charges.
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