Exhibit 4(b)


 


PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
 •  {P. O. BOX 10648  •  BIRMINGHAM, 
ALABAMA  35202-0648}


 


GUARANTEED ACCOUNT ENDORSEMENT


 


We are amending the Contract to which this
endorsement is attached as described below:


 


1.               The definition for Contract
Value is deleted and replaced by the definition below:


 


Contract
Value:  Prior to the Annuity Commencement Date, the
sum of the Variable Account value and the Guaranteed Account value attributable
to a Contract.


 


2.               The first paragraph of the provision entitled
“Variable Account Value” in the “VARIABLE ACCOUNT” section of your Contract
is deleted and replaced by the paragraph below:


 


Variable Account Value - At any time prior to the Annuity
Commencement Date, the Variable Account Value is equal to:


 


a)                            Purchase Payments allocated to the Variable
Account; plus,


b)                           amounts transferred into the Variable
Account; plus,


c)                            other amounts applied to the Variable Account; plus or
minus,


d)                           investment performance; minus,


e)                            the amount of any surrenders removed from the
Variable Account; minus,


f)                              other charges, fees and premium tax deducted
from the Variable Account.


 


The Variable Account value
equals the sum of the Sub-Account values.


 


3.               A definition for the ‘Guaranteed Account’ is
added to the “DEFINITIONS” provision of your
Contract.


 


Guaranteed
Account:  Includes any Allocation Option we may offer
with interest rate guarantees.


 


4.               The following provisions are added to your
Contract.


 


GUARANTEED
ACCOUNT


 


General
Description - The
Guaranteed Account includes the DCA Fixed Accounts, which are each a part of
the Company’s general account. Amounts allocated to an account in the
Guaranteed Account earn interest from the date they are credited to the
account.


 


We, in our sole discretion,
establish interest rates for each account in the Guaranteed Account. We will
not declare a rate that yields values less than those required by the state in
which the Contract is delivered. Because interest rates vary from time to time,
allocations made to the same account in the Guaranteed Account at different
times may earn interest at different rates.


 


DCA Fixed Accounts – The
DCA Fixed Accounts are available only for Purchase Payments designated for
dollar cost averaging. You may allocate a Purchase Payment to a DCA Fixed
Account only when the value of that DCA Fixed Account is $0. The entire value
of a DCA Fixed Account must be transferred to the Variable Account prior to
allocating a new Purchase Payment to that DCA Fixed Account. Allocations to a
DCA Fixed Account must include instructions regarding transfer frequency and
the Sub-Accounts into which the transfers are to be made.


 


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We will systematically
transfer Purchase Payments allocated to a DCA Fixed Account into the Variable
Account in equal amounts over the period we allow for that DCA Fixed Account. The
interest rate we apply to a Purchase Payment allocated to a DCA Fixed Account
is guaranteed for the period over which transfers are allowed from that DCA
Fixed Account. Interest credited to a DCA Fixed Account will be accumulated and
transferred from the DCA Fixed Account after the last dollar cost averaging
transfer.


 


Guaranteed Account Value - Prior to the Annuity Commencement Date, the
Guaranteed Account value is equal to:


 


a)                                      Purchase Payments allocated to the Guaranteed
Account; plus,


b)                                     interest, and other amounts credited to the
Guaranteed Account; minus,


c)                                      amounts transferred out of the Guaranteed
Account; minus,


d)                                     the amount of any surrenders removed from the
Guaranteed Account; minus,


e)                                      other charges, fees and premium tax deducted
from the Guaranteed Account.


 


For the purposes of interest
crediting, amounts deducted, transferred or withdrawn from accounts in the
Guaranteed Account will be separately accounted for on a “first-in, first-out”
(FIFO) basis.


 


Limitations
on Transfers Involving the DCA Fixed Accounts - You may establish dollar cost averaging
transfers from the DCA Fixed Accounts but transfers into the DCA Fixed Accounts
are not permitted. If dollar cost averaging transfers from a DCA Fixed Account
are terminated, we will transfer any amount remaining in that DCA Fixed Account
into the Sub-Accounts according to the allocation instruction in effect for
that DCA Fixed Account at the time the dollar cost averaging transfers are
terminated, unless you have otherwise instructed us how to allocate the
remaining amount.


 


Suspension
or Delay in Payment of Surrender from Guaranteed Account - The Company may suspend or delay the payment
of a partial or full surrender from the Guaranteed Account for up to six months
where permitted or required, after obtaining the consent of the Commissioner of
the Insurance Regulatory Agency of the state where the Contract is issued. We
will pay interest on delayed payments from the Guaranteed Account as required
by applicable state law.


 


Signed for the Company and made a part of the
Contract as of the Effective Date.


 


PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY


 


	
  

  	
   

  
	
   

  	
  { Secretary }

  	
   

  
			



 


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