EX-4.OO



 





Exhibit 4(oo)









Home Office: Cincinnati, Ohio

Variable Administrative Office: P.O. Box 5423, Cincinnati, Ohio 45201-5423




Individual Flexible Premium Deferred Variable Annuity Contract




TWENTY DAY EXAMINATION — RIGHT TO CANCEL



You may cancel this contract (“Contract”) by returning it and giving us written notice of
cancellation. You have until midnight of the twentieth (20th) day following the day you receive
this Contract or as otherwise required by law. This Contract must be returned and the required
notice must be given to us, or to the agent who sold it to you, in person or by mail. If by mail,
the return of the Contract or the notice is effective on the date it is postmarked, with the proper
address and with postage paid. During this period we reserve the right to allocate all Purchase
Payments temporarily to the Fixed Accumulation Account or a money market Sub-Account, at our
discretion. If you cancel this Contract as set forth above, the Contract will be void and we will
refund the Purchase Payments plus or minus any investment gains or losses under the Contract as of
the end of the Valuation Period during which we receive the returned Contract, or as otherwise
required by law.




As you read through this Contract, please note that the words “we”, “us”, “our”, and “Company”
refer to Annuity Investors Life Insurance Company. The words “you” and “your” refer to the Owner,
including a joint owner, if any. “Administrative Office” means our home office or any other place
of business that we may designate.



This is a deferred variable annuity contract. It is a legally binding agreement between you and
us.



PLEASE READ YOUR CONTRACT WITH CARE.




	 	 	 
	
	 	
	MARK F. MUETHING
	 	CHARLES R. SCHEPER
	SECRETARY
	 	PRESIDENT






NONPARTICIPATING — NO DIVIDENDS




PAYMENTS AND OTHER VALUES DESCRIBED IN THIS CONTRACT, WHEN BASED ON THE INVESTMENT EXPERIENCE OF
THE SEPARATE ACCOUNT, MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNTS.
NO MINIMUM CONTRACT VALUE IS GUARANTEED, EXCEPT FOR AMOUNTS IN THE FIXED ACCOUNT.



AILIC





 









 








CONTRACT SPECIFICATIONS




OWNER: [ JOHN DOE ]




AGE OF OWNER AS OF CONTRACT EFFECTIVE DATE: [ 35 ]




[ JOINT OWNER: ]




[ AGE OF JOINT OWNER AS OF CONTRACT EFFECTIVE DATE: ]




ANNUITANT: [ JOHN DOE ]




AGE OF ANNUITANT AS OF CONTRACT EFFECTIVE DATE: [ 35 ]




CONTRACT
NUMBER: [ 000000000 ]




TAX QUALIFIED CONTRACT: [YES — QUALIFICATION ENDORSEMENT INCLUDED][ NO ]




CONTRACT EFFECTIVE DATE: [ DECEMBER 01, 2006 ]




ANNUITY COMMENCEMENT DATE: [ FEBRUARY 01, 2056 ]




SEPARATE ACCOUNT: Annuity Investors Variable Account B




Following is a list of the Funds in which the currently available Sub-Accounts invest:




[ AIM V.I. Capital Development Fund ]

[ AIM V.I. Core Equity Fund ]

[ AIM V.I. Financial Services Fund ]

[ AIM V.I. Global Health Care Fund ]

[ AIM V.I. High Yield Fund ]

[ AIM V.I. Small Cap Equity Fund ]

[ AIM V.I. Small Cap Growth Fund ]




[ American Century VP Large Company Value Fund ]

[ American Century VP Mid Cap Value Fund ]

[ American Century VP Ultra Fund ]

[ American Century VP VistaSM Fund ]




AILIC




-2-









 








[ Dreyfus IP Technology Growth Portfolio ]

[ The Dreyfus Socially Responsible Growth Fund, Inc. ]

[ Dreyfus Stock Index Fund, Inc. ]

[ Dreyfus VIF Appreciation Portfolio ]

[ Dreyfus VIF Developing Leaders Portfolio ]

[ Dreyfus VIF Growth and Income Portfolio ]

[ Dreyfus VIF Money Market Portfolio ]




[ DWS Small Cap Index VIP ]




[ Janus Aspen Series Balanced Portfolio ]

[ Janus Aspen Series Forty Portfolio ]

[ Janus Aspen Series International Growth Portfolio ]

[ Janus Aspen Series Large Cap Growth Portfolio ]

[ Janus Aspen Series Mid Cap Growth Portfolio ]




[ Oppenheimer Balanced Fund/VA ]

[ Oppenheimer Capital Appreciation Fund/VA ]

[ Oppenheimer Main Street Fund®/VA ]




[ PIMCO VIT Real Return Portfolio ]

[ PIMCO VIT Total Return Portfolio ]




[ Van Kampen UIF Core Plus Fixed Income Portfolio ]

[ Van Kampen UIF U.S. Mid Cap Value Portfolio ]

[ Van Kampen UIF U.S. Real Estate Portfolio ]

[ Van Kampen UIF Value Portfolio ]




AILIC





-3-









 








FIXED ACCOUNT:




Following is a list of the currently available Fixed Account options, with guarantee periods as may
be applicable:



Fixed Accumulation Account




[ Fixed Account One-Year Guarantee Period ]




We may add or delete Fixed Account options at any time.


FIXED ACCOUNT GUARANTEED INTEREST RATE: [ 3.00% ]




TRANSFER FEE: [ $25 ] per transfer in excess of [ twelve
(12) ] in any Contract Year.


CONTRACT MAINTENANCE FEE: [ $40 ] Annually




MORTALITY AND EXPENSE RISK CHARGE: A charge equal to an effective annual rate of
[ 1.25% ] of the daily Net Asset Value of the Sub-Accounts.



ADMINISTRATION CHARGE: A charge equal to an effective annual rate of [ 0.15% ]
of the daily Net Asset Value of the Sub-Accounts.


TERMINATION MINIMUM VALUE: [ $500 ]




	 	 	 
	INQUIRIES:

	 	For information, or to make a
complaint, call or write:
	 

	 	Policyowner Services Department

Annuity Investors Life Insurance Company

Post Office Box 5423

Cincinnati, Ohio 45201-5423

1-800-789-6771
	 
	 	 
	 

	 	If you prefer, you may visit us at our website, www.GAFRI.com.






AILIC






-4-









 










	 	 	 	 	 
	TABLE OF CONTENTS	 	Page	 
	 
	DEFINITIONS
	 	 	7	 
	 
	 	 	 	 
	GENERAL PROVISIONS
	 	 	9	 
	 
	 	 	 	 
	Entire Contract
	 	 	9	 
	Changes — Waivers
	 	 	9	 
	Nonparticipating
	 	 	9	 
	Misstatement
	 	 	9	 
	Required Reports
	 	 	9	 
	Exclusive Benefit
	 	 	9	 
	State Law
	 	 	9	 
	Claims of Creditors
	 	 	9	 
	Company Liability
	 	 	10	 
	Voting Rights
	 	 	10	 
	Incontestability
	 	 	10	 
	Discharge of Liability
	 	 	10	 
	Transfer by the Company
	 	 	10	 
	Taxes
	 	 	10	 
	 
	 	 	 	 
	PURCHASE PAYMENTS
	 	 	10	 
	 
	 	 	 	 
	Purchase Payments
	 	 	10	 
	Allocation of Purchase Payments
	 	 	10	 
	 
	 	 	 	 
	FIXED ACCOUNT
	 	 	11	 
	 
	 	 	 	 
	Fixed Account
	 	 	11	 
	Fixed Account Options
	 	 	11	 
	Interest Crediting
	 	 	11	 
	Renewal
	 	 	11	 
	Fixed Account Value
	 	 	12	 
	 
	 	 	 	 
	SEPARATE ACCOUNT
	 	 	12	 
	 
	 	 	 	 
	General Description
	 	 	12	 
	Sub-Accounts of the Separate Account
	 	 	12	 
	Valuation of Assets
	 	 	13	 
	Variable Account Value
	 	 	13	 
	Accumulation Unit Value
	 	 	13	 
	 
	 	 	 	 
	TRANSFERS
	 	 	14	 
	 
	 	 	 	 
	Transfers From a Fixed Account Option
	 	 	14	 
	Transfers From a Sub-Account
	 	 	14	 
	Other Transfer Rules
	 	 	14	 
	 
	 	 	 	 
	FEES AND CHARGES
	 	 	15	 
	 
	 	 	 	 
	Mortality and Expense Risk Charge
	 	 	15	 
	Administration Charge
	 	 	15	 
	Contract Maintenance Fee
	 	 	15	 
	 
	 	 	 	 
	SURRENDER AND WITHDRAWALS
	 	 	15	 
	 
	 	 	 	 
	Surrender
	 	 	15	 
	Withdrawals
	 	 	15	 
	Exchanges, Transfers, and Rollovers
	 	 	16	 
	Termination
	 	 	16	 
	Deferral of Payment
	 	 	16	 






AILIC





-5-









 








	 	 	 	 	 
	TABLE OF CONTENTS	 	Page	 
	 
	OWNERSHIP PROVISIONS
	 	 	16	 
	 
	 	 	 	 
	Ownership of Separate Account
	 	 	16	 
	Owner
	 	 	16	 
	Joint Ownership
	 	 	17	 
	Assignment
	 	 	17	 
	Transfer of Ownership
	 	 	17	 
	Successor Owner
	 	 	17	 
	Community Property
	 	 	18	 
	 
	 	 	 	 
	ANNUITANT PROVISIONS
	 	 	18	 
	 
	 	 	 	 
	Annuitant
	 	 	18	 
	Designation of Annuitant
	 	 	18	 
	 
	 	 	 	 
	BENEFICIARY PROVISIONS
	 	 	18	 
	 
	 	 	 	 
	Beneficiary
	 	 	18	 
	Designation of Beneficiary
	 	 	18	 
	 
	 	 	 	 
	ANNUITY BENEFIT
	 	 	19	 
	 
	 	 	 	 
	Annuity Commencement Date
	 	 	19	 
	Annuity Benefit Amount
	 	 	19	 
	Annuity Benefit Payments
	 	 	19	 
	Form of Annuity Benefit
	 	 	19	 
	 
	 	 	 	 
	DEATH BENEFIT
	 	 	20	 
	 
	 	 	 	 
	Death Benefit
	 	 	20	 
	Death Benefit Amount
	 	 	20	 
	Step Up in Account Value for Successor Owner
	 	 	20	 
	Transfers After Death
	 	 	21	 
	Death Benefit Commencement Date
	 	 	21	 
	Death Benefit Payments
	 	 	21	 
	Form of Death Benefit
	 	 	21	 
	 
	 	 	 	 
	DISTRIBUTION RULES
	 	 	22	 
	 
	 	 	 	 
	Application of Section
	 	 	22	 
	Rules Before Annuity Commencement Date
	 	 	22	 
	Rules On or After Annuity Commencement Date
	 	 	22	 
	Rules On or
After Death Benefit Commencement Date
	 	 	22	 
	 
	 	 	 	 
	SETTLEMENT OPTIONS
	 	 	22	 
	 
	 	 	 	 
	Conditions
	 	 	22	 
	Benefit Payments
	 	 	23	 
	Fixed Dollar Payments
	 	 	23	 
	Variable Dollar Payments
	 	 	23	 
	Limitation on Election of Settlement Option
	 	 	24	 
	Settlement Option Computations
	 	 	24	 
	Available Settlement Options
	 	 	24	 
	Commuted Values
	 	 	24	 
	Settlement Option Tables
	 	 	25	 






AILIC





-6-









 









DEFINITIONS




Account(s): The Sub-Accounts and the Fixed Account options.



Account Value: The aggregate value of your interest in all of the Sub-Accounts and the Fixed
Account options as of the end of any Valuation Period. The value of your interest in all of the
Sub-Accounts is the “Variable Account Value”. The value of your interest in all of the Fixed
Account options is the “Fixed Account Value.”



Accumulation Unit: A unit of measure used to calculate the value of a Sub-Account prior to the
Commencement Date. The value of an Accumulation Unit is referred to as “Accumulation Unit Value”.



Annuitant: The natural person on whose life Annuity Benefit payments are based.



Annuity Benefit: The payments that may be made under the ANNUITY BENEFIT section of this Contract.



Annuity Commencement Date: The first day of the first payment interval for which an Annuity
Benefit payment is to be made.



Beneficiary: The person entitled to receive any Death Benefit under this Contract.



Benefit Unit: A unit of measure used to determine the dollar value of any Variable Dollar
payments. The value of a Benefit Unit is referred to as “Benefit Unit Value”.



Code: The Internal Revenue Code of 1986, as amended, and the rules and regulations that are issued
under it.



Commencement Date: The Annuity Commencement Date if an Annuity Benefit is payable; or the Death
Benefit Commencement Date if a Death Benefit is payable.



Contract Anniversary: The date in each year that is the annual anniversary of the Contract
Effective Date.



Contract Effective Date: The date that this Contract is issued. This date is set out on the
Contract Specifications page.



Contract Year: Each twelve (12) month period that begins on the Contract Effective Date or on a
Contract Anniversary.



Death Benefit: The benefit described in the DEATH BENEFIT section of this Contract.



Death Benefit Commencement Date: The first day of the first payment interval for a Death Benefit
that is paid as periodic payments; or the date of payment for a Death Benefit that is paid as a
lump sum.



Death Benefit Valuation Date: The earlier of:




	 	1)	 	the date that we have received both Due Proof of Death and a Written Request
with instructions as to the form of Death Benefit; or
	 
	 	2)	 	the date that is the Death Benefit Commencement Date.





AILIC





-7-









 








Due Proof of Death: One (1) of the following:




	 	1)	 	a certified copy of a death certificate; or
	 
	 	2)	 	a certified copy of a decree that is made by a court of competent jurisdiction
as to the finding of death.





We will also accept other proof that is satisfactory to us.



Fund: A management investment company (or a portfolio of it) that is registered under the
Investment Company Act of 1940, as amended. Each Sub-Account invests in a Fund.



Net Asset Value: The amount computed by an investment company as the price at which its shares or
units may be redeemed. This price is computed in accordance with the rules of the Securities and
Exchange Commission. It is computed no less frequently than each Valuation Period.



Person Controlling Payments: For Annuity Benefit payments, you, if you have the right to change
the payee, or in all other cases, the payee. For Death Benefit payments, the Beneficiary, or if
the Beneficiary is deceased, the payee.



Purchase Payment: An amount paid to us for this Contract, less any fee charged by the person
remitting payments. It is also after the deduction of premium tax or other taxes that may apply.



Separate Account: An account that is established and maintained by the Company pursuant to the
laws of the State of Ohio. The Separate Account is registered as a unit investment trust under the
Investment Company Act of 1940, as amended.



Sub-Account: A subdivision of the Separate Account. Each of the Sub-Accounts invests in the
shares of a designated Fund.



Tax-Qualified Contract: An annuity contract that is intended to qualify for special tax treatment
for retirement savings. Whether this is a Tax-Qualified Contract is set out on the Contract
Specifications page.



Valuation Date: Each day on which the New York Stock Exchange is open for business.



Valuation Period: The period commencing at the close of regular trading on the New York Stock
Exchange on any Valuation Date, and ending at the close of trading on the next succeeding Valuation
Date.



Written Request: Information provided, or a request made, that is:




	 	1)	 	complete and satisfactory to us;
	 
	 	2)	 	on our form or in a manner satisfactory to us, which may, at our discretion, be
by telephone or electronic means; and
	 
	 	3)	 	received by us at our Administrative Office.





A Written Request is subject to any payment that we make before we acknowledge it. It is also
subject to any action that we take before we acknowledge it. We will deem a Written Request to be
a standing order. It may be modified or revoked only by a subsequent Written Request, when
permitted by the terms of this Contract. You may be required to return this Contract to us in
connection with a Written Request.



AILIC





-8-









 








GENERAL PROVISIONS




Entire Contract





This Contract is an individual flexible premium deferred variable annuity contract. It is
restricted as required to obtain favorable tax treatment under the Code. This Contract and any
riders or endorsements to it, and the application for it, if any, form the entire contract between
you and us.



Only statements that you have made in consideration for this Contract will be used to void this
Contract, or to defend a claim based on it. Such statements are treated as representations and not
warranties.



Changes — Waivers





No changes or waivers of the terms of this Contract are valid unless made in writing and are signed
by our President, Vice President, or Secretary. No other person or agent has authority to change
or waive any provision of this Contract. We reserve the right both to administer and to change the
terms of this Contract to conform to pertinent laws and governmental regulations and rulings.



Nonparticipating





This Contract does not pay dividends or share in the Company’s divisible surplus.



Misstatement





If the age of a person is misstated, payments shall be adjusted to the amount that would have been
payable based on the correct age. If payments based on the correct age would have been higher, we
will pay the underpaid amount promptly in one (1) sum, with interest. If payments based on the
correct age would have been lower, we may deduct the overpaid amount, with interest, from
succeeding payments. We may also pursue other remedies at law or in equity.



Required Reports





At least once each Contract Year, we will send you a report of your current values. We will also
provide any other information required by law. These reports will stop when this Contract is fully
surrendered, or on a Commencement Date, whichever is first.



The reports will be mailed to your last known address. If permitted by law, in lieu of that we may
deliver these and other required documents in electronic form. The reported values will be based
on the information in our possession at the time that we prepare the report. We may adjust the
reported values at a later date if that information proves to be incorrect or has changed.



Exclusive Benefit





Your rights as Owner of this Contract are for the exclusive benefit of you and your Beneficiaries.
Your rights as Owner of this Contract are nonforfeitable by us.



State Law





All factors, values, benefits, and reserves under this Contract will not be less than those
required by the law of the state in which this Contract is delivered.



Claims of Creditors




To the extent allowed by law, your rights as Owner of this Contract and all values and benefits
under it are not subject to the claims of creditors or to legal process.



AILIC





-9-









 








Company Liability




We will not be liable for any loss that is related to a failure by you, or by any person having
rights or benefits under this Contract, to comply with pertinent laws or governmental regulations
or rulings.



Voting Rights





To the extent required by law, we will vote all shares of the Funds held in the Separate Account at
regular and special shareholder meetings of the Funds. We will vote the shares attributable to
this Contract in accordance with instructions received from you, or if applicable, from the Person
Controlling Payments. If there is a change in the law that permits us to vote the shares of the
Funds without such instructions, then we reserve the right to do so.



Incontestability





This Contract shall not be contestable by us.



Discharge of Liability





We shall be discharged from all liability to the extent of each payment that is made for a
withdrawal, surrender, Annuity Benefit, or Death Benefit.



Transfer by the Company





We reserve the right to transfer our obligations under this Contract to another qualified life
insurance company under an assumption reinsurance arrangement. We may make such a transfer without
your consent.



Taxes





Some states impose on the Company a premium tax or other taxes on annuities. If a premium tax or
other tax is charged or due, we reserve the right to deduct this amount from the Purchase Payment
or Account Value at the time that it is imposed.



PURCHASE PAYMENTS




Purchase Payments





One (1) or more Purchase Payments may be paid to us at any time before the Annuity Commencement
Date, so long as:




	 	1)	 	you are still living; and
	 
	 	2)	 	this Contract has not been surrendered.





The initial Purchase Payment must be paid to us on or before the Contract Effective Date. Each
Purchase Payment must be received by us at our Administrative Office. Each Purchase Payment is
subject to any minimums or maximums that we set from time to time. Upon request, we will provide
you with a receipt as proof of payment.



Allocation of Purchase Payments





We will allocate Purchase Payments to the available Sub-Accounts and Fixed Account options
according to your instructions. Those instructions must be made by Written Request. Allocations
must be made in whole percentages. The minimum amount that can be allocated to the Fixed
Accumulation Account Option or to a Sub-Account is $10. The minimum amount that can be allocated
to a Fixed Account option other than the Fixed Accumulation Account is $2000. We may require that
Purchase Payments be allocated temporarily to the Fixed Accumulation Account or to a money market
Sub-Account during the Right to Cancel period. We may, in our sole discretion, restrict or
prohibit allocations to Fixed Account options or Sub-Accounts from time to time on a
nondiscriminatory basis.



AILIC





-10-









 








FIXED ACCOUNT




Fixed Account





The Fixed Account is part of the Company’s general account. The values of the Fixed Account are
not dependent upon the investment performance of the Sub-Accounts.



Fixed Account Options





The Fixed Account options available as of the Contract Effective Date are listed on the Contract
Specifications page. We may add or delete Fixed Account options at any time. A Fixed Account
option will not be available to you if it has a guarantee period that ends after the Annuity
Commencement Date.



Interest Crediting





Amounts held under a Fixed Account option will be credited with interest at an annual effective
rate that is at least equal to the Fixed Account Guaranteed Interest Rate. The Fixed Account
Guaranteed Interest Rate is set out on the Contract Specifications page. We may from time to time
pay a higher current interest rate for any of the Fixed Account options. Such higher rate would be
as declared by our Board of Directors in its discretion. Once declared, such rate will be credited
until changed.



Interest on amounts held under a Fixed Account option is earned daily. We will stop crediting
interest on an amount as of the date that it is transferred, withdrawn, surrendered, or applied to
charges. We will stop crediting interest on an amount that is applied to a settlement option as of
the Commencement Date.



The interest rate credited to each Purchase Payment allocated to the Fixed Accumulation Account
will not be changed for at least twelve (12) months following the date on which it was received.
Thereafter, the interest rate credited will not be changed more frequently than once per calendar
quarter. In the case of transfers from other Fixed Account options or the Sub-Accounts to the
Fixed Accumulation Account Option, the interest rate will not be changed more frequently than once
per calendar quarter.



The interest rate credited to an amount that is held under a Fixed Account option that has a
guarantee period will not be changed until the end of that period. The guarantee period is
measured from the date that the amount is allocated or transferred to that option.



Renewal





An amount that is allocated or transferred to a Fixed Account option that has a guarantee period
will mature at the end of that period. When an amount matures, you may transfer it to any of the
Fixed Account options or Sub-Accounts that are then available to you under this Contract. To do
so, a Written Request must be received within the thirty (30) day period that ends on the date that
the amount matures.



If you do not transfer the amount, then it will be applied to a new guarantee period under the same
Fixed Account option if it is then available to you. The interest rate for the new period will be
the then current rate for that option. If that option is not available, then the amount will be
transferred to the Fixed Accumulation Account.



Such a transfer or renewal will be effective on the day after the amount matures.



AILIC





-11-









 








Fixed Account Value




The Fixed Account Value for this Contract at any time is equal to:




	 	1)	 	Purchase Payment(s) that are allocated to the Fixed Account options; plus
	 
	 	2)	 	amounts transferred to the Fixed Account; plus
	 
	 	3)	 	interest credited to the Fixed Account; less
	 
	 	4)	 	any withdrawals, surrender, deductions, and transfers from the Fixed Account;
and less
	 
	 	5)	 	other charges and adjustments made as described elsewhere in this Contract.





SEPARATE ACCOUNT




General Description





The variable benefits under this Contract are provided through the Separate Account.



The income, if any, and any gains or losses, realized or unrealized, on the Separate Account will
be credited to or charged against the amounts allocated to such account. This credit or charge
will be made without regard to other income, gains, or losses of the Company. The amounts
allocated to the Separate Account and the earnings on those amounts are the property of the
Company. However, the Separate Account is not chargeable with any other liabilities of the Company
to the extent that it is equal to the reserves and other contractual liabilities under all of the
policies, annuities, and other contracts identified with it. The Company is not, and does not hold
itself out to be, a trustee with respect to such amounts.



We have the right to transfer certain assets from the Separate Account to our general account. We
may transfer any assets that are in excess of the required reserves and other contractual
liabilities under all of the policies, annuities, and other contracts identified with the Separate
Account. We may make these transfers in our sole discretion at any time and without prior notice.



We may merge or combine the Separate Account with any other separate account of the Company. We
may transfer the assets of the Separate Account to another life insurance company by means of a
merger or reinsurance. We may convert the Separate Account into a managed separate account. We
may de-register the Separate Account under the Investment Company Act of 1940. Such a change will
be made in accordance with pertinent laws. It will be made only after obtaining any approvals that
may be needed, including those of the Ohio Department of Insurance and the Securities and Exchange
Commission.



Sub-Accounts of the Separate Account





The Separate Account is divided into Sub-Accounts. All of the Sub-Accounts that are available as
of the Contract Effective Date are listed on the Contract Specifications page. Each of the
Sub-Accounts invests exclusively in shares of an underlying Fund. These Funds are shown on the
Contract Specifications page. Any amounts of income on the shares of a Fund will be reinvested in
additional shares of that Fund at its Net Asset Value. Any gains on the shares of a Fund will also
be reinvested.



We may add or delete Sub-Accounts. We may substitute shares of a different Fund or different class
or series of a Fund for shares held in a Sub-Account. We may merge or combine Sub-Accounts. Such
a change will be made in accordance with pertinent laws. It will be made only after obtaining any
approvals that may be needed.



AILIC





-12-









 








Valuation of Assets




Shares of Funds held by each Sub-Account will be valued at their Net Asset Value at the end of each
Valuation Period, as reported by each such Fund.



Variable Account Value





Purchase Payment(s) that are allocated to a Sub-Account, and amounts that are transferred to a
Sub-Account, are converted into Accumulation Units. The number of Accumulation Units credited is
determined by dividing the dollar amount directed to that Sub-Account by the value of the
Accumulation Unit for that Sub-Account at the end of the Valuation Period during which the amount
is received.



The following events will result in the cancellation of an appropriate number of Accumulation Units
of a Sub-Account:




	 	1)	 	a transfer from a Sub-Account;
	 
	 	2)	 	the surrender or a withdrawal of the Variable Account Value;
	 
	 	3)	 	the payment of a Death Benefit;
	 
	 	4)	 	the application of the Variable Account Value to a settlement option; or
	 
	 	5)	 	the deduction of the charges, fees, or other adjustments described in this
Contract.





Accumulation Units will be canceled as of:




	 	1)	 	the end of the Valuation Period during which we receive a Written Request that
gives rise to such cancellation;
	 
	 	2)	 	the Commencement Date; or
	 
	 	3)	 	the end of the Valuation Period on which a charge, fee, or other adjustment is
due.





At any time, the Variable Account Value for this Contract is equal to the sum of the values of your
interest in each Sub-Account. The value of your interest in a Sub-Account is equal to the number
of your Accumulation Units for that Sub-Account multiplied by the Accumulation Unit Value for that
Sub-Account. These values are determined as of the end of the preceding Valuation Period.



Accumulation Unit Value




The initial Accumulation Unit Value for the Money Market Sub-Account was set at $1.00. The initial
Accumulation Unit Value for each of the other Sub-Accounts was set at $10.00. After that, the
Accumulation Unit Value at the end of each Valuation Period is the Accumulation Unit Value as of
the end of the prior Valuation Period multiplied by the Net Investment Factor. The Net Investment
Factor is described below. The Accumulation Unit Values will vary as a result of the varying
investment experience of the Funds.



AILIC





-13-









 








The Net Investment Factor is a measure of the investment performance of a Sub-Account from one
Valuation Period to the next. Each Sub-Account has a Net Investment Factor for each Valuation
Period. The Net Investment Factor may be greater than one, or it may be less than one. This means
that the Accumulation Unit Value for each Sub-Account may increase or it may decrease. The Net
Investment Factor for any Sub-Account for any Valuation Period is determined by dividing (1) by (2)
and then subtracting (3) from the result, where:




	 	1)	 	is equal to:






a) the Net Asset Value per share of the Fund held in the Sub-Account, determined at the
end of the applicable Valuation Period; plus




b) the per share amount of any dividend or net capital gain distributions made by the
Fund held in the Sub-Account, if the “ex-dividend” date occurs during the applicable
Valuation Period; plus or minus




c) a per share charge or credit for any taxes reserved for, which is determined by the
Company to have resulted from the investment operations of the Sub-Account;




	 	2)	 	is the Net Asset Value per share of the Fund held in the Sub-Account,
determined at the end of the preceding Valuation Period; and
	 
	 	3)	 	is the sum of the Mortality and Expense Risk Charge and the Administration
Charge to be deducted from the Sub-Account for the number of days in the applicable
Valuation Period.





TRANSFERS




Prior to a Commencement Date, you may transfer amounts in a Sub-Account or Fixed Account
option as set out below.



Transfers From a Fixed Account Option





If allowed by the Company, in its sole discretion, you may transfer amounts from a Fixed Account
option to another Fixed Account option or to a Sub-Account. No transfer from a Fixed Account
option is allowed during the first Contract Year. If a transfer is being made from a Fixed Account
option pursuant to the Renewal provision of this Contract, then the entire amount that has matured
may be transferred. Other transfers from a Fixed Account option during a Contract Year may not
exceed the greater of $500 or twenty percent (20%) of the value of that option as of the most
recent Contract Anniversary. We may, in our sole discretion, restrict or prohibit this type of
transfer or the availability of any Fixed Account option or Sub-Account from time to time on a
nondiscriminatory basis.



Transfers From a Sub-Account





If allowed by the Company, in its sole discretion, you may transfer amounts from a Sub-Account to
another Sub-Account or to a Fixed Account option. Amounts transferred from a Fixed Account option
to the Sub-Accounts may not be transferred back to a Fixed Account option for a period of six (6)
months from the date of transfer. We may, in our sole discretion, restrict or prohibit this type
of transfer or the availability of any Sub-Account or Fixed Account option from time to time on a
nondiscriminatory basis.



Other Transfer Rules





A transfer must be made by Written Request. The minimum transfer amount is $500 or the balance of
the Sub-Account or Fixed Account option, if less.



We will charge a Transfer Fee on each transfer over a certain number per year. The amount of the
Transfer Fee, and the number of transfers that may be made before it applies, are set out on the
Contract Specifications page.




AILIC





-14-









 








We may modify our transfer procedures at any time and at our sole discretion. Such modifications
could be applied to transfers to or from some or all of the Sub-Accounts or Fixed Account options,
and may include, but not be limited to, the following:




	 	1)	 	the requirement of a minimum time period between each transfer;
	 
	 	2)	 	the means for submitting a Written Request; or
	 
	 	3)	 	limits on the dollar amount that may be transferred between available
Sub-Accounts or Fixed Account options at any one time.





FEES AND CHARGES




Mortality and Expense Risk Charge





The Mortality and Expense Risk Charge is shown on the Contract Specifications page. It is deducted
daily from each of the Sub-Accounts. This deduction is made to compensate us for assuming the
mortality and expense risks under this Contract.



Administration Charge





The Administration Charge is shown on the Contract Specifications page. It is deducted daily from
each of the Sub-Accounts. This deduction is made to reimburse us for certain expenses that are
incurred in the administration of this Contract and the Separate Account.



Contract Maintenance Fee





The Contract Maintenance Fee (“Fee”) is shown on the Contract Specifications page. It is deducted
as of the Valuation Date after each Contract Anniversary that this Contract is in effect until the
Commencement Date. The full annual Fee will also be deducted at the time of a surrender. The Fee
will be deducted pro-rata from each Sub-Account in which the Contract has an interest at that time.
The Fee does not apply to the Fixed Account.



After the Commencement Date, if Variable Dollar payments are to be made, the Fee will be deducted
pro-rata from each payment. This deduction will result in a reduction in the amount of such
payment.



We may waive the Fee in whole or in part in our sole discretion.



SURRENDER AND WITHDRAWALS




Surrender





You may surrender this Contract in full for the Account Value at any time prior to the Annuity
Commencement Date. The amount available for surrender will be the Account Value at the end of the
Valuation Period in which the Written Request is received. Any fees and charges, loans or
applicable premium tax or other taxes not previously deducted, will be deducted as part of the
calculation of the Account Value. A surrender must be made by Written Request. In the case of a
surrender, this Contract will be terminated.



Withdrawals





You may take withdrawals from this Contract at any time prior to the Annuity Commencement Date. A
withdrawal must be made by Written Request. The amount of any withdrawal must be at least $500.
No withdrawal can be made that would reduce the Account Value of this Contract to less than the
Minimum Termination Value. The Minimum Termination Value is set out on the Contract Specifications
page.



A withdrawal will result in the cancellation of Accumulation Units from each of the applicable
Sub-Accounts and/or a reduction of your Fixed Account Value. Unless you state otherwise in your
request for a withdrawal, the reduction in each Sub-Account and Fixed Account option will be in the
same proportion as the reduction in the total Account Value.



AILIC





-15-









 








Exchanges, Transfers, and Rollovers




An amount paid on a withdrawal or surrender may be paid to or for another annuity or tax-qualified
account in an exchange, transfer, or rollover to the full extent allowed by federal tax law.



Termination





We reserve the right to terminate this Contract at any time that the Account Value is less than the
Termination Minimum Value. The Termination Minimum Value is set out on the Contract Specifications
page. If we terminate this Contract, we will pay you the Account Value less any fees and charges,
loans, or applicable premium tax or other taxes not previously deducted.



Deferral of Payment





The Company has the right to suspend or delay the date of payment of a withdrawal or surrender of
the Variable Account Value at certain times. We may do this for any period:




	 	1)	 	when the New York Stock Exchange is closed, or when trading on the New York
Stock Exchange is restricted; or
	 
	 	2)	 	when an emergency exists (as determined by the Securities and Exchange
Commission) as a result of which:






a) the disposal of securities in the Separate Account is not reasonably practicable; or




b) it is not reasonably practicable to determine fairly the value of the net assets in
the Separate Account; or




	 	3)	 	when the Securities and Exchange Commission so permits for the protection of
security holders.





The Company further reserves the right to delay payment of a withdrawal or surrender of your Fixed
Account Value. We may delay such payment for up to six (6) months after we receive your Written
Request.



OWNERSHIP PROVISIONS




Ownership of Separate Account





The Company has absolute ownership of the assets in the Separate Account. We are not, and do not
hold ourselves out to be, a trustee in respect of any amounts under the Separate Account.



Owner





The Owner of this Contract is the person or persons shown as Owner on the Contract Specifications
page, or the person or persons you designate under the Transfer of Ownership provision of this
Contract.



Unless it is stated otherwise, the Owner may exercise all of the ownership rights under this
Contract.



If you or a joint owner is a non-natural person, then the age of the eldest Annuitant will be
treated as the age of such Owner for all purposes under this Contract.



AILIC





-16-









 








Joint Ownership




If this is a Tax-Qualified Contract, then no joint owner is permitted except where the Contract is
owned by multiple plan sponsors or trustees.



If this is not a Tax-Qualified Contract, then two (2) persons may jointly own this Contract. If
there are joint owners, then either one of them acting alone may make transfers among the
Sub-Accounts and the Fixed Account options. In addition, either one of them acting alone may make
or change Purchase Payment allocations. All of the other rights of ownership must be exercised by
joint action.



Assignment





If this is a Tax-Qualified Contract, then you may not pledge, charge, encumber, or in any way
assign your interest in this Contract.



If this is not a Tax-Qualified Contract, then you may assign all or any part of your rights under
this Contract except your rights to:




	 	1)	 	designate or change a Beneficiary;
	 
	 	2)	 	designate or change an Annuitant;
	 
	 	3)	 	transfer ownership; and
	 
	 	4)	 	elect a settlement option.





The person to whom you make an assignment is called an assignee.



We are not responsible for the validity of any assignment. An assignment must be made by Written
Request. We will not be bound by an assignment until we acknowledge it. An assignment is subject
to any payment made or any action that we take before we acknowledge it. An assignment may be
ended only by the assignee or as provided by law.



If an assignment is allowed, the rights of an assignee, including the right to any payment under
this Contract, come before the rights of an Owner, Annuitant, Beneficiary, or other payee.



Transfer of Ownership





If this is a Tax-Qualified Contract, then you may not transfer, sell, or in any way alienate your
interest in this Contract except to the limited extent provided in the tax qualification
endorsement.



If this is not a Tax-Qualified Contract, then you may transfer ownership at any time during your
lifetime. A transfer must be made by Written Request. Except as otherwise elected or as required
by law, it will not cancel a designation of an Annuitant or Beneficiary or a settlement option
election.



Successor Owner





In some cases, your spouse may succeed to the ownership of this Contract after your death.
Specifically, if you die before the Annuity Commencement Date and your spouse is the surviving
joint owner or sole surviving Beneficiary under this Contract, he or she will become the successor
owner of this Contract if:




	 	1)	 	you make that Written Request before your death; or
	 
	 	2)	 	after your death, your spouse makes that Written Request within one (1) year of
your death and before the Death Benefit Commencement Date.





As successor owner, your spouse will then succeed to all rights of ownership under this Contract
except the right to name another successor owner.



AILIC





-17-









 








Community Property




If you live in a community property state and have a spouse at any time while you own this
Contract, the laws of that state may vary your ownership rights.



ANNUITANT PROVISIONS




Annuitant





If this is a Tax-Qualified Contract, then the Annuitant is the Owner, or if the Owner is the plan
sponsor or trustee, then the Annuitant is the designated person covered under the Plan for whose
benefit this annuity contract was purchased.



If this is not a Tax-Qualified Contract, then the Annuitant is the person or persons designated by
you under the Designation of Annuitant provision of this Contract; if you do not designate an
Annuitant or if no Annuitant designated by you is surviving, then the Annuitant will be each Owner
who is a natural person.



Designation of Annuitant





If this is a Tax-Qualified Contract and the Owner is the plan sponsor or trustee, then the
Annuitant must be designated before the Contract Effective Date. The designation must be made by
Written Request, and cannot be changed.



If this is not a Tax-Qualified Contract, then except as provided below, you may make or change a
designation of Annuitant at any time before the Annuity Commencement Date. The designation of
Annuitant may not be made or changed if you or a joint owner is a non-natural person. For this
purpose, a trustee is considered to be a non-natural person. A designation of Annuitant must be
made by Written Request. Except as otherwise elected or as required by law, it will not cancel a
designation of a Beneficiary or a settlement option election. A designation may name two (2) or
more natural persons jointly as the Annuitant. On the death of a joint Annuitant, the survivor
will become the sole Annuitant. A designation may name a contingent Annuitant. A contingent
Annuitant will become the Annuitant only if there is no surviving primary Annuitant.



BENEFICIARY PROVISIONS




Beneficiary





If there is a joint owner and that joint owner survives you, that joint owner is the Beneficiary,
regardless of any designation made by you. If there is no joint owner who survives you, then the
Beneficiary is the person or persons that you designate under the Designation of Beneficiary
provision of this Contract. If there is no joint owner or Beneficiary designated by you that
survives you, then your estate will be the Beneficiary.



A Beneficiary will be deemed not to have survived you if he or she dies within thirty (30) days
after your death.



Designation of Beneficiary





Unless you have specified that a prior designation is irrevocable, you may make or change a
designation of Beneficiary at any time before the Annuity Commencement Date. A designation of
Beneficiary must be made by Written Request. Except as otherwise elected or as required by law, it
will not cancel a designation of an Annuitant or a settlement option election.



You may designate two (2) or more persons jointly as the Beneficiary. Unless you state otherwise,
joint Beneficiaries that survive you will be entitled to equal shares. You may also designate one
(1) or more persons as contingent Beneficiary. Unless you state otherwise, a contingent
Beneficiary will be entitled to a benefit only if there is no primary Beneficiary that survives
you.



AILIC





-18-









 








ANNUITY BENEFIT




Annuity Commencement Date





The Annuity Commencement Date is set out on the Contract Specifications page. You may change the
Annuity Commencement Date by Written Request. Such a request must be made at least thirty (30)
days prior to the date that Annuity Benefit payments are to begin.



If this is a Tax-Qualified Contract, then generally the Annuity Commencement Date must be no later
than the Contract Anniversary following your 70th birthday. If this is not a Tax-Qualified
Contract, then generally the Annuity Commencement Date must be no later than the Contract
Anniversary following the 85th birthday of the elder of you or a joint owner, if any, or five (5)
years after the Contract Effective Date, whichever is later. In either case, it can be later only
if we agree.



Annuity Benefit Amount





The Account Value as of the Annuity Commencement Date, reduced by any fees and charges, loans, or
applicable premium tax or other taxes not previously deducted, will be used to provide Annuity
Benefit payments under this Contract.



Annuity Benefit Payments





Annuity Benefit payments will be made to the Annuitant as payee unless:




	 	1)	 	amounts are paid as a transfer or rollover to or as a tax-free exchange for an
annuity or tax-qualified account as permitted by federal tax law; or
	 
	 	2)	 	you are not the Annuitant, and you elect to have Annuity Benefit payments made
to you as payee.





Annuity Benefit payments that are still payable after the death of the payee will be made to the
contingent payee that you designate. If there is no such payee or contingent payee surviving, then
such payments will be made to the person or persons designated as contingent payee by the last
payee who received payments. Failing that, such payments will be made to the estate of the last
payee who received payments.



A designation or change of a payee or contingent payee must be made by Written Request. Unless you
have specified that a prior designation is irrevocable, you may change the payee or contingent
payee at any time.



In any event, the Annuitant will be the person on whose life Annuity Benefit payments are based.
No change of payee or contingent payee at any time will change this.



Form of Annuity Benefit





Annuity Benefit payments will be made annually under the terms of Option B with a fixed period of
ten (10) years, as described in the SETTLEMENT OPTIONS section of this Contract.



In lieu of that, you may elect to have Annuity Benefit payments made pursuant to any other
available option that is described in the SETTLEMENT OPTIONS section of this Contract. Such an
election must be made before the Annuity Commencement Date. You may change your election so long
as we receive your request for a change at least thirty (30) days prior to the date that Annuity
Benefit payments are scheduled to begin.



Any election or change of election must be made by Written Request.



If this is a Tax-Qualified Contract, then an election of a settlement option may be subject to
restrictions stated in the tax qualification endorsement. If this is not a Tax-Qualified Contract,
then an election is subject to the DISTRIBUTION RULES section of this Contract.



AILIC





-19-









 








DEATH BENEFIT




Death Benefit





A Death Benefit will be paid under this Contract if, before the Annuity Commencement Date and
before this Contract is surrendered:




	 	1)	 	you or a joint owner dies; or
	 
	 	2)	 	you or a joint owner is a non-natural person, and the Annuitant dies; or
	 
	 	3)	 	this is a Tax-Qualified Contract, and the Annuitant dies.





If a Death Benefit becomes payable:




	 	1)	 	it will be in lieu of all other benefits under this Contract; and
	 
	 	2)	 	all other rights under this Contract will be terminated except for rights
related to the Death Benefit.





No Death Benefit will be paid on your death if your spouse becomes the successor owner of this
Contract. Only one (1) Death Benefit will be paid under this Contract.



Death Benefit Amount




The amount of the Death Benefit will be based on the greater of:





	 	1)	 	the Account Value on the Death Benefit Valuation Date;
	 
	 	2)	 	the total of all Purchase Payments, reduced proportionally for any withdrawals.





The reduction for withdrawals will be in the same proportion that the Account Value was reduced on
the date of the withdrawal.



As of the Death Benefit Valuation Date, the amount of the Death Benefit will be allocated among the
Sub-Accounts and Fixed Account options. The allocation will be in the same proportion as each
Account’s value is to the total Account Value as of the end of the Valuation Period that precedes
the Death Benefit Valuation Date. After this allocation, the amount of the Death Benefit to be
paid will be based on the Account Value.



The Death Benefit will be reduced by any applicable premium tax or other taxes not previously
deducted. The Death Benefit will also be reduced by any outstanding loans.



Step Up in Account Value for Successor Owner





If your spouse becomes the successor owner of this Contract, the Account Value will be increased to
equal the amount of the Death Benefit which would have been payable if your spouse had not become
the successor owner. This increase will occur as of the date that would have been the Death
Benefit Valuation Date. If the Account Value is increased under this provision, we will add the
amount of the increase to the Fixed Accumulation Account.



If the Death Benefit that would have been payable is equal to the Account Value as of the date that
would have been the Death Benefit Valuation Date, then there will be no such change to the Account
Value.



The election to become successor owner will be deemed to be instructions as to the form of Death
Benefit. Therefore, the date that would have been the Death Benefit Valuation Date will be the
later of the date that we receive Due Proof of Death, or the date we receive the successor owner
election. This date will never be later than one (1) year after the date of your death.



AILIC





-20-









 








Transfers After Death




Between the Death Benefit Valuation Date and the Death Benefit Commencement Date, the Beneficiary
may transfer funds among Sub-Accounts and Fixed Account options. Such transfers are subject to the
limitations set out in the TRANSFERS section of this Contract.



Death Benefit Commencement Date





The Beneficiary may designate the Death Benefit Commencement Date by Written Request. This request
must be made within one (1) year of your death. If no designation is made, then the Death Benefit
Commencement Date will be one (1) year after your death. No Death Benefit will be paid until we
receive Due Proof of Death.



Death Benefit Payments





Death Benefit payments will be made to the Beneficiary as payee unless:




	 	1)	 	amounts are paid as a transfer or rollover to or as a tax-free exchange for an
annuity or tax-qualified account as permitted by federal tax law; or
	 
	 	2)	 	the Beneficiary is a non-natural person, and elects to have Annuity Benefit
payments made to a payee to whom the Beneficiary is obligated to make corresponding
payments.





Death Benefit payments that are still payable after the death of the Beneficiary will be made to
the contingent payee designated as part of a Death Benefit settlement option election made by you.
If there is no such contingent payee surviving, then such payments will be made to the person or
persons designated as contingent payee by the Beneficiary. Failing that, such payments will be
made to the estate of the last payee who received payments.



A designation or change of a payee or contingent payee must be made by Written Request. A
Beneficiary may not change a contingent payee designation made as part of a Death Benefit
settlement option election made by you. A Beneficiary may make or change any other payee or
contingent payee designation at any time.



The Beneficiary will be the person on whose life Death Benefit payments under a settlement option
will be based. No change of payee or contingent payee at any time will change this. A Beneficiary
that is a non-natural person may elect to have payments based on the life of a person to whom the
Beneficiary is obligated. Such an election shall be made by Written Request before the Death
Benefit Commencement Date.



Form of Death Benefit





Death Benefit payments will be made annually under the terms of Option A with a period certain of
four (4) years, as described in the SETTLEMENT OPTIONS section of this Contract.



In lieu of that, you may elect at any time before your death to have Death Benefit payments made in
one (1) lump sum or pursuant to any available option described in the SETTLEMENT OPTIONS section of
this Contract. You may change your election of a settlement option at any time before your death.



If you do not make any such election, the Beneficiary may make that election at any time after your
death and before the Death Benefit Commencement Date. A Beneficiary may change his or her own
election of a settlement option so long as we receive the request for a change at least thirty (30)
days prior to the date that Death Benefit payments are scheduled to begin.



Any election or change of election must be made by Written Request.



If this is a Tax-Qualified Contract, then an election of a settlement option is subject to
restrictions stated in the tax qualification endorsement. If this is not a Tax-Qualified Contract,
then an election is subject to the DISTRIBUTION RULES section of this Contract.



AILIC





-21-









 








DISTRIBUTION RULES

(IF NOT A TAX-QUALIFIED ANNUITY)




Application of Section





If this is a Tax-Qualified Contract, then it is subject to the distribution rules set out in the
tax qualification endorsement. If this is not a Tax-Qualified Contract, then the distribution
rules set out in this section apply.



Rules Before Annuity Commencement Date





If you or the joint owner, if any, dies before the Annuity Commencement Date, the Death Benefit
under the DEATH BENEFIT section of this Contract must be paid:




	 	1)	 	in full within five (5) years of such death; or
	 
	 	2)	 	over the life of the Beneficiary or over a period certain not exceeding his or
her life expectancy, with payments at least annually starting within one (1) year of
such death.





However, if your spouse becomes the successor owner of this Contract after your death, then:




	 	1)	 	this rule will not apply at the time of your death; and
	 
	 	2)	 	if your spouse later dies before the Annuity Commencement Date, then this rule
will apply upon the death of your spouse, with your spouse being treated as the Owner
for purposes of this rule.





Rules On or After Annuity Commencement Date





If the Person Controlling Payments under this Contract dies on or after the Annuity Commencement
Date, then any amounts still payable under this Contract must be paid at least as rapidly as
payments were being made at the time of such death.



Rules On or After Death Benefit Commencement Date





If the Beneficiary dies on or after the Death Benefit Commencement Date, any amounts still payable
under this Contract must be paid at least as rapidly as payments were being made at the time of
such death.



SETTLEMENT OPTIONS




Conditions





Payments under a settlement option are subject to any minimum amounts, payment intervals, and other
terms or conditions that we may from time to time require. If we change our minimums, we may
change any current or future payment amounts and/or payment intervals to conform to the change.
More than one (1) settlement option may be elected if the requirements for each settlement option
elected are satisfied. Once payment begins under a settlement option, the settlement option may
not be changed.



All elected settlement options must comply with pertinent laws and governmental regulations and
rulings.



If more than one (1) person is the payee under a settlement option, payments will be made to the
payees jointly. No more than two (2) persons may be initial payees under a joint and survivor
settlement option.



If payment under a settlement option depends on whether a specified person is still alive, we may
at any time require proof that such person is still living. We will require proof of the age of
any person on whose life payments are based.



AILIC





-22-









 








Benefit Payments




Payments may be calculated and paid:




	 	1)	 	as Fixed Dollar payments;
	 
	 	2)	 	as Variable Dollar payments; or
	 
	 	3)	 	as a combination of both.





The amount to be applied to Variable Dollar payments is the Variable Account Value as of the end of
the Valuation Period that precedes the Commencement Date. It will include the amount of any
transfer to Variable Dollar payments that is made from the Fixed Account as of that same time. It
will be reduced by the amount of any transfer to Fixed Dollar payments that is to be made from the
Separate Account on the Commencement Date. An amount that is transferred from the Fixed Account
will be allocated among the Sub-Accounts by Written Request.



The amount to be applied to Fixed Dollar payments is the Fixed Account Value as of the Commencement
Date. It will include the amount of any transfer to Fixed Dollar payments that is made from the
Separate Account on that date. It will not include the amount of any transfer to Variable Dollar
payments that is made from the Fixed Account as of the end of the Valuation Period that precedes
the Commencement Date.



In each case, the amount to be applied to payments will be reduced by any fees and charges, loans,
or applicable premium tax or other taxes not previously deducted.



No transfers between Fixed Dollar payments and Variable Dollar payments will be allowed after the
Commencement Date. Twelve (12) months or more after the Commencement Date, the Person Controlling
Payments may transfer all or part of the Benefit Units upon which Variable Dollar payments are
based from the Sub-Account(s) then held, to Benefit Units in other Sub-Account(s) that are then
available. Such transfers of Benefit Units may not occur more than once in any twelve (12) month
period. Such transfers are subject to the other limitations set out in the TRANSFERS section of
this Contract.



Fixed Dollar Payments





Fixed Dollar payments are determined as follows. We start with the amount to be applied to Fixed
Dollar payments, expressed in thousands of dollars. This amount is then multiplied by the amount
of the periodic payment per $1,000 of value. This payment is obtained from the Settlement Option
Table for the option that is elected. Fixed Dollar payments will remain level for the duration of
the payment period.



Variable Dollar Payments





The Variable Dollar base payment is determined as follows. We start with the amount to be applied
to Variable Dollar payments, expressed in thousands of dollars. This amount is then multiplied by
the amount of the periodic payment per $1,000 of value. This payment is obtained from the
Settlement Option Table for the option that is elected.



The number of Benefit Units in each Sub-Account held for Variable Dollar payments is determined as
follows. We divide the dollar amount of the Variable Dollar base payment from each Sub-Account by
the Benefit Unit Value for that Sub-Account as of the Commencement Date. The number of Benefit
Units in each Sub-Account will change if the Person Controlling Payments makes transfers among
Sub-Accounts. The Benefit Units in each Sub-Account will change proportionally to a change in the
base payment due to any change in the payment interval or as specified by the settlement option.
Otherwise, the number of Benefit Units remains fixed during the payment period.



The actual amount of each Variable Dollar payment will reflect the investment performance of the
Sub-Account(s) selected. It may vary from payment to payment. The total amount of each Variable
Dollar payment will be equal to the sum of the payments from each Sub-Account. We will deduct a
pro-rata portion of the Contract Maintenance Fee from this total.




AILIC





-23-









 








The payment from each Sub-Account is found by multiplying the number of Benefit Units held in that
Sub-Account for such Variable Dollar payments by the Benefit Unit Value for that Sub-Account. We
do this as of the end of the fifth Valuation Period before the date that the payment is due.



The Benefit Unit Value for each Sub-Account is originally established in the same manner as
Accumulation Unit Values. For any date after that, the value of a Benefit Unit for a Sub-Account
is determined by multiplying the Benefit Unit Value as of the end of the preceding Valuation Period
by the Net Investment Factor. This factor is determined as set forth in the Accumulation Unit
Value provision of this Contract. The product is then multiplied by the assumed daily investment
factor for the number of days in the Valuation Period. The factor is based on the assumed net
investment rate for the Settlement Option Table that is used to fix the base payment. This factor
shall be no greater than [0.99997236], which is the factor based on a net investment rate of [one
percent (1%)] per year, compounded annually, as reflected in the guaranteed Settlement Option
Tables.



Limitation on Election of Settlement Option





Fixed periods shorter than five (5) years are generally not available. A fixed period of less than
five (5) years is available only as a Death Benefit settlement option.



Settlement Option Computations





The Annuity 2000 Mortality Table for blended lives (60% female/40% male) with interest at
[ one percent (1%) ] per year, compounded annually, is used to compute all
guaranteed settlement option factors, values, and benefits under this Contract.



Available Settlement Options





The available settlement options are set out below.



Option A Income for a Fixed Period



We will make periodic payments for a fixed period. The first payment will be paid as of the last
day of the initial payment interval. The maximum time over which we will make payments or money
will be held by us is thirty (30) years. The Option A Table applies to this Option.



Option B Life Annuity with Payments for at Least a Fixed Period



We will make periodic payments for at least a fixed period. If the person on whose life payments
are based lives longer than the fixed period, then we will make payments until his or her death.
The first payment will be paid as of the last day of the initial payment interval. The Option B
Table applies to this Option.



Option C Joint and One-half Survivor Annuity



We will make periodic payments until the death of the primary person on whose life payments are
based; thereafter, we will make one-half (1/2) of the periodic payment until the death of the
secondary person on whose life payments are based. The first payment will be paid as of the last
day of the initial payment interval. The Option C Table applies to this Option.



We will make periodic payments in any other form of settlement option that is acceptable to us at
the time of an election.



Commuted Values




Commuted values are not available unless we agree otherwise.



AILIC





-24-









 








Settlement Option Tables




The Option Tables show the payments that we will make at sample payment intervals for each $1,000
applied based on the guaranteed settlement option factors. Amounts may vary with the payment
interval and the age of the person on whose life payments are based. Upon request, we will provide
information on the payments that we will make for other payment intervals and ages.



OPTION A TABLE — INCOME FOR A FIXED PERIOD

Payments for fixed number of years for each $1,000 applied.




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Term of	 	 	 	 	 	Semi-	 	 	 	 
	Payments	 	Annual	 	Annual	 	Quarterly	 	Monthly
	 
	Years
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1
	 	$	[1,010.00]	 	 	$	[503.74]	 	 	$	[251.55]	 	 	$	[83.78]	 
	2
	 	 	[507.51]	 	 	 	[253.12]	 	 	 	[126.40]	 	 	 	[42.10]	 
	3
	 	 	[340.02]	 	 	 	[169.58]	 	 	 	[84.68]	 	 	 	[28.20]	 
	4
	 	 	[256.28]	 	 	 	[127.82]	 	 	 	[63.83]	 	 	 	[21.25]	 
	5
	 	 	[206.03]	 	 	 	[102.76]	 	 	 	[51.31]	 	 	 	[17.09]	 
	6
	 	 	[172.54]	 	 	 	[86.05]	 	 	 	[42.97]	 	 	 	[14.31]	 
	7
	 	 	[148.62]	 	 	 	[74.12]	 	 	 	[37.01]	 	 	 	[12.32]	 
	8
	 	 	[130.69]	 	 	 	[65.18]	 	 	 	[32.55]	 	 	 	[10.84]	 
	9
	 	 	[116.74]	 	 	 	[58.22]	 	 	 	[29.07]	 	 	 	[9.68]	 
	10
	 	 	[105.58]	 	 	 	[52.65]	 	 	 	[26.29]	 	 	 	[8.75]	 
	11
	 	 	[96.45]	 	 	 	[48.10]	 	 	 	[24.02]	 	 	 	[8.00]	 
	12
	 	 	[88.84]	 	 	 	[44.31]	 	 	 	[22.12]	 	 	 	[7.37]	 
	13
	 	 	[82.41]	 	 	 	[41.10]	 	 	 	[20.52]	 	 	 	[6.83]	 
	14
	 	 	[76.90]	 	 	 	[38.35]	 	 	 	[19.15]	 	 	 	[6.37]	 
	15
	 	 	[72.12]	 	 	 	[35.97]	 	 	 	[17.96]	 	 	 	[5.98]	 
	16
	 	 	[67.94]	 	 	 	[33.88]	 	 	 	[16.92]	 	 	 	[5.63]	 
	17
	 	 	[64.25]	 	 	 	[32.04]	 	 	 	[16.00]	 	 	 	[5.33]	 
	18
	 	 	[60.98]	 	 	 	[30.41]	 	 	 	[15.18]	 	 	 	[5.05]	 
	19
	 	 	[58.05]	 	 	 	[28.95]	 	 	 	[14.45]	 	 	 	[4.81]	 
	20
	 	 	[55.41]	 	 	 	[27.63]	 	 	 	[13.80]	 	 	 	[4.59]	 






The values stated for years 1-4 are available only as a Death Benefit option




AILIC





-25-









 








OPTION B TABLE — LIFE ANNUITY

Monthly payments by age of the person named for each $1,000 applied.




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Number of Months Certain
	Age	 	0	 	60	 	120	 	180	 	240
	 
	55
	 	$	[3.25]	 	 	$	[3.24]	 	 	$	[3.22]	 	 	$	[3.18]	 	 	$	[3.12]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	56
	 	 	[3.33]	 	 	 	[3.33]	 	 	 	[3.30]	 	 	 	[3.26]	 	 	 	[3.18]	 
	57
	 	 	[3.42]	 	 	 	[3.42]	 	 	 	[3.39]	 	 	 	[3.34]	 	 	 	[3.25]	 
	58
	 	 	[3.52]	 	 	 	[3.51]	 	 	 	[3.48]	 	 	 	[3.42]	 	 	 	[3.32]	 
	59
	 	 	[3.62]	 	 	 	[3.61]	 	 	 	[3.58]	 	 	 	[3.51]	 	 	 	[3.40]	 
	60
	 	 	[3.73]	 	 	 	[3.72]	 	 	 	[3.68]	 	 	 	[3.60]	 	 	 	[3.47]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	61
	 	 	[3.85]	 	 	 	[3.83]	 	 	 	[3.79]	 	 	 	[3.69]	 	 	 	[3.54]	 
	62
	 	 	[3.97]	 	 	 	[3.95]	 	 	 	[3.90]	 	 	 	[3.79]	 	 	 	[3.62]	 
	63
	 	 	[4.10]	 	 	 	[4.08]	 	 	 	[4.02]	 	 	 	[3.89]	 	 	 	[3.69]	 
	64
	 	 	[4.24]	 	 	 	[4.22]	 	 	 	[4.14]	 	 	 	[4.00]	 	 	 	[3.77]	 
	65
	 	 	[4.39]	 	 	 	[4.36]	 	 	 	[4.27]	 	 	 	[4.10]	 	 	 	[3.84]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	66
	 	 	[4.55]	 	 	 	[4.52]	 	 	 	[4.41]	 	 	 	[4.21]	 	 	 	[3.91]	 
	67
	 	 	[4.72]	 	 	 	[4.68]	 	 	 	[4.56]	 	 	 	[4.33]	 	 	 	[3.99]	 
	68
	 	 	[4.90]	 	 	 	[4.86]	 	 	 	[4.71]	 	 	 	[4.44]	 	 	 	[4.05]	 
	69
	 	 	[5.10]	 	 	 	[5.04]	 	 	 	[4.87]	 	 	 	[4.55]	 	 	 	[4.12]	 
	70
	 	 	[5.30]	 	 	 	[5.24]	 	 	 	[5.03]	 	 	 	[4.67]	 	 	 	[4.18]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	71
	 	 	[5.53]	 	 	 	[5.45]	 	 	 	[5.21]	 	 	 	[4.78]	 	 	 	[4.24]	 
	72
	 	 	[5.77]	 	 	 	[5.68]	 	 	 	[5.39]	 	 	 	[4.89]	 	 	 	[4.29]	 
	73
	 	 	[6.03]	 	 	 	[5.92]	 	 	 	[5.57]	 	 	 	[5.00]	 	 	 	[4.34]	 
	74
	 	 	[6.31]	 	 	 	[6.18]	 	 	 	[5.76]	 	 	 	[5.11]	 	 	 	[4.38]	 
	75
	 	 	[6.61]	 	 	 	[6.45]	 	 	 	[5.95]	 	 	 	[5.21]	 	 	 	[4.42]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	76
	 	 	[6.93]	 	 	 	[6.74]	 	 	 	[6.15]	 	 	 	[5.31]	 	 	 	[4.45]	 
	77
	 	 	[7.28]	 	 	 	[7.04]	 	 	 	[6.35]	 	 	 	[5.40]	 	 	 	[4.48]	 
	78
	 	 	[7.66]	 	 	 	[7.37]	 	 	 	[6.55]	 	 	 	[5.48]	 	 	 	[4.50]	 
	79
	 	 	[8.07]	 	 	 	[7.71]	 	 	 	[6.75]	 	 	 	[5.56]	 	 	 	[4.52]	 
	80
	 	 	[8.51]	 	 	 	[8.07]	 	 	 	[6.94]	 	 	 	[5.63]	 	 	 	[4.54]	 






AILIC





-26-









 








OPTION C TABLE — JOINT AND ONE-HALF SURVIVOR ANNUITY

Monthly payments by ages of the persons named for each $1,000 applied.*




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Primary	 	Secondary Age
	Age	 	60	 	61	 	62	 	63	 	64	 	65	 	66	 	67	 	68	 	69	 	70
	 
	60
	 	$	[3.39]	 	 	$	[3.42]	 	 	$	[3.44]	 	 	$	[3.46]	 	 	$	[3.48]	 	 	$	[3.50]	 	 	$	[3.52]	 	 	$	[3.54]	 	 	$	[3.56]	 	 	$	[3.57]	 	 	$	[3.59]	 
	61
	 	 	[3.47]	 	 	 	[3.49]	 	 	 	[3.52]	 	 	 	[3.54]	 	 	 	[3.56]	 	 	 	[3.59]	 	 	 	[3.61]	 	 	 	[3.63]	 	 	 	[3.65]	 	 	 	[3.66]	 	 	 	[3.68]	 
	62
	 	 	[3.54]	 	 	 	[3.57]	 	 	 	[3.59]	 	 	 	[3.62]	 	 	 	[3.65]	 	 	 	[3.67]	 	 	 	[3.69]	 	 	 	[3.72]	 	 	 	[3.74]	 	 	 	[3.76]	 	 	 	[3.78]	 
	63
	 	 	[3.61]	 	 	 	[3.64]	 	 	 	[3.67]	 	 	 	[3.70]	 	 	 	[3.73]	 	 	 	[3.76]	 	 	 	[3.79]	 	 	 	[3.81]	 	 	 	[3.83]	 	 	 	[3.86]	 	 	 	[3.88]	 
	64
	 	 	[3.69]	 	 	 	[3.72]	 	 	 	[3.76]	 	 	 	[3.79]	 	 	 	[3.82]	 	 	 	[3.85]	 	 	 	[3.88]	 	 	 	[3.91]	 	 	 	[3.93]	 	 	 	[3.96]	 	 	 	[3.98]	 
	65
	 	 	[3.77]	 	 	 	[3.80]	 	 	 	[3.84]	 	 	 	[3.88]	 	 	 	[3.91]	 	 	 	[3.94]	 	 	 	[3.98]	 	 	 	[4.01]	 	 	 	[4.04]	 	 	 	[4.07]	 	 	 	[4.09]	 
	66
	 	 	[3.85]	 	 	 	[3.89]	 	 	 	[3.93]	 	 	 	[3.97]	 	 	 	[4.00]	 	 	 	[4.04]	 	 	 	[4.08]	 	 	 	[4.11]	 	 	 	[4.14]	 	 	 	[4.18]	 	 	 	[4.21]	 
	67
	 	 	[3.93]	 	 	 	[3.97]	 	 	 	[4.02]	 	 	 	[4.06]	 	 	 	[4.10]	 	 	 	[4.14]	 	 	 	[4.18]	 	 	 	[4.22]	 	 	 	[4.25]	 	 	 	[4.29]	 	 	 	[4.32]	 
	68
	 	 	[4.01]	 	 	 	[4.06]	 	 	 	[4.11]	 	 	 	[4.15]	 	 	 	[4.20]	 	 	 	[4.24]	 	 	 	[4.28]	 	 	 	[4.33]	 	 	 	[4.37]	 	 	 	[4.41]	 	 	 	[4.44]	 
	69
	 	 	[4.10]	 	 	 	[4.15]	 	 	 	[4.20]	 	 	 	[4.25]	 	 	 	[4.30]	 	 	 	[4.34]	 	 	 	[4.39]	 	 	 	[4.44]	 	 	 	[4.48]	 	 	 	[4.53]	 	 	 	[4.57]	 
	70
	 	 	[4.18]	 	 	 	[4.24]	 	 	 	[4.29]	 	 	 	[4.34]	 	 	 	[4.40]	 	 	 	[4.45]	 	 	 	[4.50]	 	 	 	[4.55]	 	 	 	[4.60]	 	 	 	[4.65]	 	 	 	[4.70]	 








 




			
	*	 	Payments after the death of the primary payee will be one-half (1/2) of the amount shown.





AILIC





-27-









 













Individual Flexible Premium Deferred Variable Annuity Contract

NONPARTICIPATING — NO DIVIDENDS




AILIC