Document:

Exhibit 4(ix)

 

EAGLE

LIFE INSURANCE COMPANY

 

6000 Westown Parkway

West Des Moines, Iowa 50266

(866) 526-0995

 

A STOCK LIFE INSURANCE COMPANY

 

We pay the benefits of this Contract, subject to all of its provisions, terms and conditions. We issue this Contract based on the attached Application and payment of the Initial Premium on or before the Contract Date.

 

15 DAY RIGHT TO EXAMINE CONTRACT

 

YOU MAY RETURN THIS CONTRACT TO YOUR AGENT OR OUR HOME OFFICE FOR UP TO 15 DAYS AFTER YOU RECEIVE IT, 30 DAYS IF REPLACEMENT IS INVOLVED. THIS CONTRACT WILL BE VOID UPON OUR, OR OUR AGENT’S, RECEIPT OF YOUR RETURNED CONTRACT. WITHIN 10 DAYS OF THE EARLIER OF OUR, OR OUR AGENT’S, RECEIPT OF YOUR RETURNED CONTRACT, WE WILL REFUND ANY PREMIUM PAID.

 

Signed for the Company at Des Moines, Iowa, on the Contract Date.

 

	
/s/ Debra J. Richardson
    	
 
    	
/s/ D. J. Noble
    
	
Debra J. Richardson
    	
 
    	
D. J. Noble
    
	
Secretary
    	
 
    	
President
    

 

FLEXIBLE PREMIUM DEFERRED ANNUITY CONTRACT WITH INDEX-LINKED
 INTEREST OPTIONS AND A MARKET VALUE ADJUSTMENT

The Market Value Adjustment feature may result in both upward and downward adjustments in
 Partial Withdrawals and Surrender Benefits
 Index Credits currently linked to S&P 500 Index
 10% Penalty-free Withdrawal Option available after 1st Contract Year
 Death Benefit Prior to Maturity
 Monthly Income at Maturity
 No Dividends

Nonparticipating

Although Contract Values may be affected by an external Index, the Contract does not
 participate in any stock or equity investments

This is a legal Contract between You and Us.

READ YOUR CONTRACT CAREFULLY

 

ICC10-INDEX-4-09R

 

1

 

TABLE OF CONTENTS

 

	
Contract Proceeds and Pay-out Provisions
    	
 
    	
Page 12
    
	
Contract Specifications
    	
 
    	
Page 3
    
	
Contract Values Provisions
    	
 
    	
Page 8,9,10,11
    
	
Death Pay-out Provisions
    	
 
    	
Page 14
    
	
Definitions
    	
 
    	
Page 5
    
	
General Provisions
    	
 
    	
Page 6
    
	
Income for Specified Period Factors
    	
 
    	
Page 16
    
	
Joint and Survivor Income Factors
    	
 
    	
Page 18
    
	
Life Income with Specified Period Certain Factors
    	
 
    	
Page 17
    
	
Maturity Pay-out Provisions
    	
 
    	
Page 12
    
	
Premium Provisions
    	
 
    	
Page 7
    
	
Settlement Option Pay-out Provisions
    	
 
    	
Page 15
    
	
Table of Guaranteed Values
    	
 
    	
Page 19
    
	
Value Specifications
    	
 
    	
Page 3a
    
	
Withdrawal and Surrender Pay-out Provisions
    	
 
    	
Page 13
    

 

“Standard & Poor’s®”, “S&P®”, “S&P 500®”, “Standard & Poor’s 500” and “500” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Eagle Life Insurance Company. This Product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing this Product.

 

2

 

CONTRACT SPECIFICATIONS

 

 

	
Contract Number:
    	
 
    	
123456
    
	
Contract Date:
    	
 
    	
January 1,   2010
    
	
Owner:
    	
 
    	
John   Doe
    
	
Annuitant:
    	
 
    	
John   Doe
    
	
Annuitant’s Issue Age:
    	
 
    	
35
    
	
Annuitant’s Sex:
    	
 
    	
M
    
	
Maturity Date:
    	
 
    	
January 1,   2089
    
	
Initial Premium:
    	
 
    	
$20,000
    
	
Planned Premium Mode:
    	
 
    	
Annual
    
	
Planned Premium Amount:
    	
 
    	
$4,000
    
	
Minimum Contract Value Allowed:
    	
 
    	
$2,000
    
	
Minimum Guaranteed Interest Rate (MGIR):
    	
 
    	
1.5%*
    
	
Index used in MVA calculation:
    	
 
    	
The   BofA Merrill Lynch 3-5 Year US Corporate Index (C2A0)
    

 

*Applies to Minimum Guaranteed Surrender Value only.

 

	
Surrender Charge Period:
    	
 
    	
3   Contract Years
    
	
Surrender Charge Percentage:
    	
 
    	
 
    

 

	
 
    	
Contract Year:
    	
 
    	
 
    	
1
    	
 
    	
2
    	
 
    	
3
    	
 
    	
4+
    	
 
    
	
 
    	
Percentage:
    	
 
    	
 
    	
7
    	
 
    	
6
    	
 
    	
5
    	
 
    	
0
    	
 
    

 

 

Nonforfeiture Values: The nonforfeiture values for this contract are calculated by accumulating 87.5% of all premiums, less all withdrawals, at the nonforfeiture interest rate of 1.10%.

 

The minimum contract values provided under this Contract meet or exceed the required minimum nonforfeiture values.

 

Delivery State DOI

Phone Number: Phone # of delivery state DOI

 

ICC10-INDEX-4-09R-3

 

3

 

CONTRACT SPECIFICATIONS

 

	
Contract Number:
    	
 
    	
123456
    
	
Contract Date:
    	
 
    	
January 1,   2010
    
	
Owner:
    	
 
    	
John   Doe
    
	
Annuitant:
    	
 
    	
John   Doe
    
	
Annuitant’s Issue Age:
    	
 
    	
35
    
	
Annuitant’s Sex:
    	
 
    	
M
    
	
Maturity Date:
    	
 
    	
January 1,   2089
    
	
Initial Premium:
    	
 
    	
$20,000
    
	
Planned Premium Mode:
    	
 
    	
Annual
    
	
Planned Premium Amount:
    	
 
    	
$4,000
    
	
Minimum Contract Value Allowed:
    	
 
    	
$2,000
    
	
Minimum Guaranteed Interest Rate (MGIR):
    	
 
    	
1.5%*
    
	
Index used in MVA calculation:
    	
 
    	
The   BofA Merrill Lynch 5-7 Year US Corporate Index (C3A0)
    

 

*Applies to Minimum Guaranteed Surrender Value only.

 

	
Surrender Charge Period:
    	
 
    	
5   Contract Years
    
	
Surrender Charge Percentage:
    	
 
    	
 
    

 

	
 
    	
Contract Year:
    	
 
    	
 
    	
1
    	
 
    	
2
    	
 
    	
3
    	
 
    	
4
    	
 
    	
5
    	
 
    	
6+
    	
 
    	
 
    
	
 
    	
Percentage:
    	
 
    	
 
    	
7
    	
 
    	
6
    	
 
    	
5
    	
 
    	
4
    	
 
    	
3
    	
 
    	
0
    	
 
    	
 
    

 

 

Nonforfeiture Values: The nonforfeiture values for this contract are calculated by accumulating 87.5% of all premiums, less all withdrawals, at the nonforfeiture interest rate of 1.10%.

 

The minimum contract values provided under this Contract meet or exceed the required minimum nonforfeiture values.

 

Delivery State DOI

Phone Number: Phone # of delivery state DOI

 

ICC10-INDEX-4-09R-5

 

3

 

CONTRACT SPECIFICATIONS

 

	
Contract Number:
    	
 
    	
123456
    
	
Contract Date:
    	
 
    	
January 1,   2010
    
	
Owner:
    	
 
    	
John   Doe
    
	
Annuitant:
    	
 
    	
John   Doe
    
	
Annuitant’s Issue Age:
    	
 
    	
35
    
	
Annuitant’s Sex:
    	
 
    	
M
    
	
Maturity Date:
    	
 
    	
January 1,   2089
    
	
Initial Premium:
    	
 
    	
$20,000
    
	
Planned Premium Mode:
    	
 
    	
Annual
    
	
Planned Premium Amount:
    	
 
    	
$4,000
    
	
Minimum Contract Value Allowed:
    	
 
    	
$2,000
    
	
Minimum Guaranteed Interest Rate (MGIR):
    	
 
    	
1.5%*
    
	
Index used in MVA calculation:
    	
 
    	
The   BofA Merrill Lynch 5-7 Year US Corporate Index (C3A0)
    

 

*Applies to Minimum Guaranteed Surrender Value only.

 

	
Surrender Charge Period:
    	
 
    	
7   Contract Years
    
	
Surrender Charge Percentage:
    	
 
    	
 
    

 

	
 
    	
Contract Year:
    	
 
    	
 
    	
1
    	
 
    	
2
    	
 
    	
3
    	
 
    	
4
    	
 
    	
5
    	
 
    	
6
    	
 
    	
7
    	
 
    	
8+
    	
 
    
	
 
    	
Percentage:
    	
 
    	
 
    	
7
    	
 
    	
6
    	
 
    	
5
    	
 
    	
4
    	
 
    	
3
    	
 
    	
2
    	
 
    	
1
    	
 
    	
0
    	
 
    

 

 

Nonforfeiture Values: The nonforfeiture values for this contract are calculated by accumulating 87.5% of all premiums, less all withdrawals, at the nonforfeiture interest rate of 1.10%.

 

The minimum contract values provided under this Contract meet or exceed the required minimum nonforfeiture values.

 

Delivery State DOI

Phone Number: Phone # of delivery state DOI

 

ICC10-INDEX-4-09R-7

 

3

 

VALUE OPTION SPECIFICATIONS

 

FIXED VALUE OPTION

 

	
Initial Premium:
    	
 
    	
0.00
    
	
Initial Interest Rate:
    	
 
    	
1.50%
    
	
Initial Interest Rate Guarantee Period:
    	
 
    	
1st   Contract Year
    
	
Minimum Guaranteed Interest Rate
    	
 
    	
 
    
	
(FV-MGIR):
    	
 
    	
1.00%
    
	
FV-MGIR Guarantee Period:
    	
 
    	
Life   of Contract
    

 

INDEXED VALUE OPTIONS

 

	
Cap Rate Guarantee Period:
    	
 
    	
One   Contract Year
    

 

The above Indexed Value Specification limit applies to each Indexed Value Option listed below.

 

ANNUAL POINT TO POINT VALUE OPTION

 

	
Index:
    	
 
    	
Standard &   Poor’s 500 Composite Stock Price Index
    
	
Initial Premium:
    	
 
    	
$10,000
    
	
Index on Contract Date:
    	
 
    	
800
    
	
Initial Cap Rate:
    	
 
    	
7%
    
	
Guaranteed Minimum Cap Rate:
    	
 
    	
4%
    

 

MONTHLY POINT TO POINT (MPT) VALUE OPTION

 

	
Index:
    	
 
    	
Standard &   Poor’s 500 Composite Stock Price Index
    
	
Initial Premium:
    	
 
    	
$10,000
    
	
Index on Contract Date:
    	
 
    	
800
    
	
MPT Monthly Cap Rate:
    	
 
    	
3%
    
	
MPT Guaranteed Minimum Monthly Cap Rate:
    	
 
    	
1%
    

 

Index Credits may not be reflected in Your Cash Surrender Value due to the calculation of the Minimum Guaranteed Surrender Value described on Page 8.

 

Note: You may check current indices in the Wall Street Journal, in Barron’s, on the Internet, or with Your financial advisor.

 

Index linked returns do not include the portion of returns generated by the underlying Index that comes from dividends.

 

We can change Cap Rates once each Contract Year, subject to guaranteed minimums shown, and based on future anticipated experience.

 

ICC10-INDEX-4-09R

 

4

 

DEFINITIONS

 

In this Contract, these terms mean:

 

	
WE, OUR, US, COMPANY:
    	
 
    	
EAGLE   LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
IIPRC:
    	
 
    	
Interstate   Insurance Product Regulation Commission
    
	
 
    	
 
    	
 
    
	
OWNER, YOU, YOUR:
    	
 
    	
The   person named in the Application or by later changes as the Owner. The Owner   has all rights under this Contract.
    
	
 
    	
 
    	
 
    
	
ANNUITANT:
    	
 
    	
The   person shown on Page 3 whose life is the measuring life for Your Contract.   The Annuitant and Owner must be the same unless the owner is a non-natural   person.
    
	
 
    	
 
    	
 
    
	
PAYEE:
    	
 
    	
The   person to whom We pay Proceeds.
    
	
 
    	
 
    	
 
    
	
BENEFICIARY:
    	
 
    	
The   person or persons shown on the Application or by later changes to whom We pay   death Proceeds. You may change a Beneficiary as this Contract allows.
    
	
 
    	
 
    	
 
    
	
APPLICATION:
    	
 
    	
The   form You filled out to apply for this Contract. We have attached a copy.
    
	
 
    	
 
    	
 
    
	
NOTICE, NOTIFY, NOTIFYING:
    	
 
    	
Written   requests and information We receive at Our Home Office, at address shown on   Page 1, that You sign, and We accept.
    
	
 
    	
 
    	
 
    
	
AGE:
    	
 
    	
The   Annuitant’s Age last birthday.
    
	
 
    	
 
    	
 
    
	
CONTRACT DATE, ISSUE DATE:
    	
 
    	
The   date this Contract becomes effective. This Contract does not take effect   until delivered to You and You have paid the Initial Premium.
    
	
 
    	
 
    	
 
    
	
MATURITY DATE:
    	
 
    	
The   Maturity Date is the last date this Contract can remain in force, is first   Contract Anniversary after Annuitant’s 114th birthday, and is shown on   Page 3.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Please   Note: Annuitization Option is also available and is described on Page 12.
    
	
 
    	
 
    	
 
    
	
INDEX:
    	
 
    	
The   Index is Standard & Poor’s 500 Composite Stock Price Index or any   substituted suitable alternative index.
    
	
 
    	
 
    	
 
    
	
INDEX PRICE:
    	
 
    	
The   Index Price as of any date is the closing Price of the Index on that date.
    
	
 
    	
 
    	
 
    
	
INDEX DATE:
    	
 
    	
The   Index Date is the Contract Date and the same day of each month thereafter. If   the same day does not exist in a month, such as the 31st, We use the first   preceding day. Example: If the Contract Date is January 31, 2009, the   next Index Date is February 28, 2009, and the last day of each month   thereafter.
    
	
 
    	
 
    	
 
    
	
CONTRACT YEAR, ANNIVERSARY:
    	
 
    	
We   compute Contract Years and Anniversaries from the Contract Date. Example: If   the Contract Date is January 1, 2009, the first Contract Year ends on   December 31, 2009, and the first Anniversary falls on January 1,   2010.
    
	
 
    	
 
    	
 
    
	
CAP RATES:
    	
 
    	
The   percentages shown on Page 4. used in calculating the Index Credits as   described on Page 9. We declare the Cap Rates annually in advance. The   Cap Rates will never be less than the Guaranteed Minimum Cap Rate and are   guaranteed for the Cap Rate Guarantee Period shown on Page 4.
    

 

5

 

GENERAL PROVISIONS

 

CONTRACT

 

This Contract, attached Application, and any attached amendments, riders or endorsements make up the entire Contract. All statements made by Applicant on the Application for issuance of the Contract are representations and not warranties. This Contract is approved under authority of IIPRC and issued under Commission Standards.

 

CONTRACT CHANGES

 

No one may change any part of this Contract or waive any provision except You or one of Our officers. Both must agree to the change. All changes must be in writing.

 

CONFORMITY WITH THE IIPRC STANDARDS

 

The provisions of this Contract conform to the minimum requirements of the IIPRC Standards. If any provision of this Contract is in conflict with IIPRC Standards, the Contract is hereby amended to conform with IIPRC Standards for this product type on the Contract Date.

 

CHANGES IN THE LAW

 

We will amend this Contract to comply with any changes in laws governing it or taxation of benefits under it.

 

OWNERSHIP*

 

This Contract belongs to You. You have all rights, subject to the rights of: any irrevocable Beneficiary; any assignee of record with Us; and any restricted Ownership. You may change the Owner by giving Us written Notice. We reserve the right, except to the extent prohibited by applicable state law or regulation, or by the action of the Insurance Commissioner, Bank Commissioner, or any agency or officer performing like functions of the applicable State, to require that any change of Owner will be effective only upon Our acceptance, and to refuse such changes at any time on a non-discriminatory basis. No change applies to any action We take before receiving Notice. A change of Owner does not change the Beneficiary.

 

ASSIGNMENT*

 

You may assign this Contract by giving Us written Notice. We reserve the right, except to the extent prohibited by applicable state law or regulation or by the action of the Insurance Commissioner, Bank Commissioner, or any agency or officer performing like functions of the applicable State, to require that assignment will be effective only upon Our acceptance, and to refuse assignments at any time on a non-discriminatory basis. No assignment applies to any action We take before receiving Notice.

 

*Qualified contracts may not be transferred or assigned. 

 

INCONTESTABILITY

 

We will not contest this Contract after it has been in force during the Annuitant’s lifetime for 2 years from the Issue Date, except in the case of fraud in the procurement of the contract, when permitted by applicable law in the state where the Contract is delivered. Read the Application, a copy of which is attached. If anything is not true or complete to the best of Your knowledge and belief, Notify Us.

 

NONFORFEITABILITY

 

Before the Maturity Date, the Cash Surrender Value is always nonforfeitable.

 

INTEREST RATES

 

The rate and duration of the Fixed Value Initial Interest Rate shown on Page 4 apply only to Your Fixed Value Initial Premium. We declare Our Current Fixed Value Interest Rate in advance and guarantee it will never be less than the Fixed Value Minimum Guaranteed Interest Rate(FV-MGIR). The Minimum Guaranteed Interest Rate (MGIR) shown on Page 3, applies to Minimum Guaranteed Surrender Value only, is based on the average of the 5 Year Constant Maturity Treasury Rate for October of the previous year, and is guaranteed until this Contract terminates. All Interest Rates are calculated as an effective annual rate, compounded daily.

 

6

 

RESERVE BASIS

 

The reserve method and basis for this Contract are on file with the IIPRC.

 

STATEMENT OF VALUES

 

Once each year, We will send You a Statement of Values. Using current information as of no more than 4 months prior to the mailing date, it will show: Beginning and ending dates of the Statement of Values; Premiums paid; Withdrawals and applicable Surrender Charges; Values as described on Pages 8, 9, 10, & 11 before application of MVA; MVA amount used to determine Cash Surrender Value; Interest Rates; and Caps. We will provide additional reports to You upon request at no additional fee.

 

TERMINATION

 

This Contract terminates on the earliest of:

(1)                                  The date You do not maintain Minimum Values as described on Page 11;

(2)                                  The date You choose to exercise the Annuitization Option described on Page 12;

(3)                                  The date You Surrender Your Contract;

(4)                                  The date the Annuitant or Owner dies; or

(5)                                  The Maturity Date.

 

PREMIUM PROVISIONS

 

PAYMENT AND ALLOCATION OF PREMIUMS

 

The Initial Premium, the amount We receive with Your Application, as shown on Page 3, is due on the Contract Date. You may direct all or any portion of Your Initial Premium to either Your Fixed Value Option, either of the Indexed Value Options, or any combination thereof, subject to the Limitations below. You may make Additional Premium payments after the Initial Premium in any amount and frequency, also subject to Limitations below. Your Additional Premiums will automatically go into Your Fixed Value Option as described in Transfer of Additional Premium Payments below.

 

If mandated under applicable law, We may be required to reject a Premium Payment. We may also be required to provide additional information about an Owner and an Owner’s Contract to government regulators.

 

TRANSFER OF ADDITIONAL PREMIUM PAYMENTS

 

We will hold Your Additional Premiums in Your Fixed Value Option, credit Interest as described in Fixed Value Option section, and unless You elect otherwise under Transfer of Values Option, the Premiums and Interest thereon will remain in the Fixed Value Option.

 

LIMITATIONS

(1)                                  Initial Premium

a.                                       The minimum Initial Premium We will accept is $10,000.

b.                                      The minimum required to select allocation to an Indexed Value Option is 10% of Your Initial Premium.

 

(2)                                  Additional Premiums - You may pay Additional Premiums if:

a.                                       The Contract is in force;

b.                                      The Owner/Annuitant is alive;

c.                                       The Additional Premium is at least $1,000; and

d.                                      The maximum cumulative Premium per Owner/Annuitant is $1,000,000.

 

7

 

CONTRACT VALUES PROVISIONS

 

CONTRACT VALUE

 

Your Contract Value equals the sum of:

(1)                                  The value of Your Fixed Value Option; plus

(2)                                  The value of Your Indexed Value Options.

 

We allocate Your Premiums between Your Fixed and/or Indexed Value Options as You direct, subject to Our rules governing Premium allocation. See “PREMIUM PROVISIONS” section above.

 

CASH SURRENDER VALUE

 

The Cash Surrender Value is the amount of Proceeds payable if You Surrender this Contract during the Surrender Charge Period, and is equal to the greater of:

(1)                                  Contract Value minus any applicable Surrender Charges and plus or minus applicable MVA, each calculated as described on Pages 8 & 9; or

(2)                                  Minimum Guaranteed Surrender Value.

 

MINIMUM GUARANTEED SURRENDER VALUE

 

The Surrender Value of Your Contract will never be less than:

(1)                                  87.5% of all Premiums; less

(2)                                  Any Withdrawal Proceeds;

(3)                                  Accumulated at Minimum Guaranteed Interest Rate as shown on Page 3.

 

SURRENDER CHARGE

 

We take a Surrender Charge on Partial Withdrawals or full Surrenders during the Surrender Charge Period. We calculate Surrender Charges as follows:

(1)                                  At Partial Withdrawal, the Withdrawal Amount times the applicable Surrender Charge Percentage shown on Page 3; or

(2)                                  At Surrender, the Contract Value, plus any Penalty-Free Withdrawal Proceeds taken in the last 12 months, times the applicable Surrender Charge Percentage shown on Page 3.

 

8

 

MARKET VALUE ADJUSTMENT (MVA)

 

The Market Value Adjustment is an amount by which we adjust pay-out amounts during the Surrender Charge Period, and is calculated as follows:

 

(1)   At Partial Withdrawal, the Withdrawal Amount times the (MVA Factor minus 1); or

(2)          At Surrender, the sum of Contract Value, plus any Penalty-Free Withdrawal Proceeds taken in the last 12 months, times the (MVA Factor minus 1).

 

The Market Value Adjustment Factor is

 

MVA Factor = [A/B]t

 

Where

A = [ 1 + the Effective Yield* of the appropriate Index on the Contract Date];

B = [ 1 + the Effective Yield* of the appropriate Index on the day before the Withdrawal or Surrender];

t = Number of days from the date of Surrender or Withdrawal to the next anniversary divided by 365, plus the number of whole years from the next anniversary to the end of the surrender charge period.

 

MVA Factor = 1 (one) after the surrender charge period.

 

*Calculated on a semi-annual compounding basis.

 

The MVA can be positive or negative and will never cause the Cash Surrender Value to be greater than the Contract Value or less than the Minimum Guaranteed Surrender Value.

 

MVA Index

 

If: (i) the Index is discontinued; (ii) We are unable to use the Index or; (iii) the calculation of the Index is changed substantially, We may substitute a suitable alternative index approved by the IIPRC and will Notify You.

 

FIXED VALUE OPTION

 

The value of the Fixed Value Option equals:

 

(1)          On Contract Date - the Fixed Value Initial Premium shown on Page 4, if any.

(2)          At each Anniversary:

a.               The value of the Fixed Value Option on the last Anniversary**; plus

b.              Any Premiums paid since the last Anniversary; less

c.               Any Withdrawal Amounts since last Anniversary; plus

d.              Interest credited**; plus or minus

e.               Any Transferred Values on the current Anniversary.

(3)          Between Anniversaries:

a.               The value of the Fixed Value Option on the last Anniversary**; plus

b.              Any Premiums paid since the last Anniversary; less

c.               Any Withdrawal Amounts since the last Anniversary; plus

d.              Interest credited.***

 

**When calculating Values on the first Anniversary or during the first Contract Year (or for the first month or during the first month on the Monthly Point to Point Indexed Value Option), use the Value on the Contract Date.

 

***Never less than FV-MGIR shown on Page 4.

 

9

 

INDEX

 

The Index on the Issue Date is shown on Page 4. If the Index is not available for any Index Date, We will use the Index on the first preceding day for which it is available. Indices are published in the Wall Street Journal. If: (i) the Index is discontinued; (ii) We are unable to use the Index or; (iii) the calculation of the Index is changed substantially, We may substitute a suitable alternative equity index approved by the IIPRC and will Notify You.

 

If the Index is discontinued during a Contract Year, We may transfer the value of Your Indexed Value Options to Your Fixed Value Option and credit the amount transferred with the Current Fixed Value Interest Rate for the remainder of the Contract Year. We treat any portion of the Contract Year in which the amount transferred remained in the Indexed Value Option as a full Contract Year for the purpose of crediting any Index Credits.

 

We may terminate or substitute any of the Indexed Value Options at any time by sending You written Notice at Your last known address at least 60 days in advance of the effective date on which the Indexed Value Option will terminate or be substituted.

 

INDEXED VALUE OPTIONS

 

The value of the Indexed Value Options equals the value of the Annual Point to Point Value Option plus the value of the Monthly Point to Point Value Option.

 

Annual Point to Point Value Option– The value of the Point to Point Value Option equals:

 

(1)          On the Contract Date - The Annual Point to Point Value Option Initial Premium shown on Page 4, if any.

(2)          At each Anniversary:

a.               The value of the Annual Point to Point Value Option on the last Anniversary*; less

b.              Any Withdrawal Amounts since the last Anniversary; plus

c.               Annual Point to Point Value Option Index Credits; plus or minus

d.              Any Transferred Values on the current Anniversary.

(3)          Between Anniversaries:

a.               The value of the Annual Point to Point Value Option on the last Anniversary*; less

b.              Any Withdrawal Amounts since last Anniversary.

 

Monthly Point to Point Value Option– The value of the Monthly Point to Point Value Option equals:

 

(1)          On the Contract Date – The MPT Value Option Initial Premium shown on Page 4, if any.

(2)          At each Anniversary =

a.               The value of the MPT Value Option on the last Anniversary*; less

b.              Any Withdrawal Amounts since the last Anniversary; plus

c.               MPT Value Option Index Credit; plus or minus

d.              Any Transferred Values on the current Anniversary.

(3)          Between Anniversaries =

a.               The value of the MPT Value Option on the last Anniversary*; less

b.              Any Withdrawal Amounts since last Anniversary.

 

*When calculating Values on the first Anniversary or during the first Contract Year (or for the first month or during the first month on the Monthly Point to Point Indexed Value Option), use the Value on the Contract Date.

 

Transferred Values: The values transferred from one Value Option to another Value Option on any Anniversary as provided in the Transfer of Values Option section on Page 11.

 

10

 

TRANSFER OF VALUES OPTION

 

On each Anniversary, You may transfer Your money between Your Fixed and/or Indexed Value Options, subject to a $1,000 minimum to maintain an Indexed Value Option.  We calculate and apply Index Credits before we process transfers.

 

To transfer Your money between Value Options, We must receive Our completed Transfer of Values form on or before the Anniversary on which You want the transfer to occur, or on another date which We may determine later.

 

If mandated under applicable law, We may block an Owner’s account and refuse to process any request for transfer until We receive instructions from the appropriate regulator.

 

MINIMUM VALUES

 

To be maintained, the value of an Indexed Value Option must be at least $1,000. If, through Withdrawals or transfers, You reduce an Indexed Value Option to less than $1,000, We will automatically close that Indexed Value Option and transfer the remaining funds to Your Fixed Value Option on the next Contract Anniversary. To be maintained, Your Contract must contain at least the Minimum Contract Value Allowed as shown on Page 3. If through Withdrawals You reduce Your Contract Value to less than the Minimum Contract Value Allowed, Your Contract will automatically terminate and We will payout any remaining Cash Surrender Value.

 

INDEX CREDITS are added to the Indexed Value Options on the Contract Anniversary and are calculated as follows:

 

Annual Point to Point Index Credits –

(1)           The Index Price on the current Contract Anniversary; less

(2)           The Index Price on the last Anniversary;* divided by

(3)           The Index Price on the last Anniversary;*

(4)           Result not to exceed Cap; multiplied by

(5)                                  The value of the Annual Point to Point Value Option on the last Anniversary;** less any Withdrawal 
 Amounts during the last Contract Year.

 

Monthly Point to Point Index Credits -

(1)                                  The value of the MPT Value Option on the last Anniversary;** less

(2)                                  Any Withdrawal Amounts during the last Contract Year; multiplied by

(3)                                  The MPT Sum.

 

MPT Sum: The MPT Sum is the sum of the twelve MPT Ratios during each Contract Year.

 

MPT Ratios:

·                  Index Price on each monthly Index Date; less

·                  The Index Price on the first preceding monthly Index Date;* divided by

·                  The Index Price on first preceding monthly Index Date;* (result not to exceed MPT Cap).

 

* When calculating an Index Credit for the first Anniversary (or for the first month on the Monthly Point to Point Indexed Value Option) use the applicable Index Price on the Contract Date.

 

**When calculating Values on the first Anniversary or during the first Contract Year (or for the first month or during the first month on the Monthly Point to Point Indexed Value Option), use the Value on the Contract Date.

 

Each Index Credit will never be less than zero (0).

 

 

11

 

CONTRACT PROCEEDS AND PAY-OUT PROVISIONS

 

MINIMUM BENEFITS

 

Any Proceed Pay-outs available under this Contract are at least the minimum required by NAIC Standard Nonforfeiture law for Individual Deferred Annuities, Model #805 using the nonforfeiture rate shown on Page 3. The method of determining the nonforfeiture rate for this Contract is on file with the IIPRC.

 

PREMIUM TAXES

 

If We are required to pay premium taxes, We re-calculate Your Proceeds at pay-out as if We had deducted premium taxes from Your Premiums as We received them.

 

PROCEEDS

 

Proceeds means the amount payable when: You take a Withdrawal; You Surrender this Contract; The Annuitant or Owner dies; or The Contract matures.

 

PAYMENT OF PROCEEDS

 

We pay Proceeds under the Automatic Settlement Option, unless You or Your Beneficiary elect to apply all or part of Death or Maturity Proceeds to provide payments under another Settlement Option or in a lump sum.  We pay Death Proceeds to the Beneficiary on receipt of due proof of Death.  We always pay Withdrawal and Surrender Proceeds in one sum unless You choose the Annuitization Option below. If pay-out is not immediate, We credit Interest on the Proceeds from the date of Withdrawal, Surrender, Maturity, or Death until pay-out. We add this Interest to the Proceeds and pay the greater of:

(1)           The current rate of Interest We declare; or

(2)           Any minimum rate required by the laws of the delivery state.

 

If mandated under applicable law, We may block an Owner’s account and refuse to process any request for Transfer, Withdrawal, Surrender or Death Proceeds until We receive instructions from the appropriate regulator.

 

ADJUSTMENT OF BENEFIT VALUES

 

If We find an error in the stated Age or sex of any Payee after making payments under a Settlement Option, We adjust the benefits to those that the Values of this Contract would have purchased using the correct Age and sex. If We find an error and We have made income payments, We:

(1)           Pay the amount of any under-payments, plus 6% Interest, compounded annually; or

(2)           Charge the amount of any over-payments, plus 6% Interest, compounded annually, against the next income payments.

 

ANNUITIZATION OPTION

 

You may annuitize Your Surrender Proceeds under this Contract after the first Contract Year for a life option with at least 5 years certain.

 

MATURITY PAY-OUT PROVISIONS

MATURITY BENEFIT

 

If the Contract is in force on the Maturity Date, We pay the Maturity Proceeds to the Annuitant as described in Payment of Proceeds section.  The Maturity Proceeds equal the greater of the Contract Value or the Minimum Guaranteed Surrender Value on the Maturity Date. We may change the mode of payment under a Settlement Option so each payment is at least $50.00.

 

Maturity benefits will not be less than those that would be provided by application of the Cash Surrender Value to purchase a single premium immediate annuity at purchase rates available at the time to the same class of Annuitants.

 

12

 

WITHDRAWAL AND SURRENDER PAY-OUT PROVISIONS

 

DEFERRAL OF PAYMENT

 

We may defer payment of any Surrender Proceeds for up to six months from the date You Notify Us, only after We receive written approval of deferral from the Iowa Commissioner of Insurance, and pay interest on the Proceeds as described in the Payment of Proceeds section.

 

WITHDRAWALS

 

Withdrawal Amount is the amount We deduct from Your Contract Value to provide the Withdrawal Proceeds and does not include any Surrender Charges or MVA adjustments. Withdrawal Proceeds include amounts withdrawn under both the Penalty-free Withdrawal and Partial Withdrawal Options as follows and are the actual amounts We pay to the Contract Owner after application of any applicable Surrender Charge and MVA adjustment:

(1)                                  Penalty-free Withdrawal Option

Each Contract Year, after the first, You may take one Penalty-free Withdrawal of up to 10% of Your Contract Value. We determine the amount of Penalty-free Withdrawal Proceeds payable at the time of Withdrawal. Penalty-free Withdrawal Proceeds equal the Penalty-free Withdrawal amount You request. No MVA or Surrender Charges apply to Penalty-free Withdrawals. All Withdrawals taken after the end of the Surrender Charge Period are Penalty-free.

(2)                                  Partial Withdrawal Option

You may make Partial Withdrawals at any time subject to Surrender Charges, MVA, and Minimum Values. We apply MVA and applicable Surrender Charges to:

a.                                       Amounts withdrawn in the first Contract Year;

b.                                      Amounts withdrawn in excess of the Penalty-free Withdrawal Option amount during the Surrender Charge Period; and

c.                                       Any Withdrawals taken after taking a Penalty-free Withdrawal in any Contract Year during the Surrender Charge Period.

 

We calculate MVAs and Surrender Charges as described on Pages 8 & 9, pay You the Withdrawal Proceeds, and adjust Your Values as described in Contract Values Provisions.

 

We deduct Withdrawals first from Your Fixed Value Option, then proportionally from Your Indexed Value Option(s) until We reach the amount You requested. We process Penalty-free Withdrawals before Partial Withdrawals. For example, if You request a Withdrawal in excess of the Penalty-free Withdrawal amount, the Penalty-free Withdrawal Option provision applies to the Penalty-free Withdrawal amount with no Surrender Charge or MVA, and the remaining amount falls under the Partial Withdrawal Option provision, and is affected by any applicable Surrender Charges and MVA.  Some Limitations may apply, see Limitations section below.

 

SURRENDER

 

If You Surrender this Contract, We pay You the Surrender Proceeds in a single sum or under the Annuitization Option. Surrender Proceeds equal the Cash Surrender Value on the date of Surrender.

 

LIMITATIONS

 

(1)                                  No portion of a Surrender taken during the Surrender Charge Period can be Penalty-free.

 

(2)                                  We treat any Penalty-free Withdrawal You take within the 12 months before Surrender as having been made in anticipation of Surrender. Therefore, We apply a Surrender Charge and any applicable MVA to that amount at Surrender.

 

(3)                                  You must maintain Minimum Values, as described on Page 11.

 

13

 

DEATH PAY-OUT PROVISIONS

 

DEATH BENEFIT

 

We will pay the death proceeds of this Contract to the beneficiary(ies) upon receipt of due proof of the Insured’s death. Payment is subject to the provisions, terms and conditions of this Contract.

 

Annuitant’s Death  - The Death Benefit Proceeds payable equal the greater of Contract Value or the Minimum Guaranteed Surrender Value on the Annuitant’s date of death in the case of a non-natural Owner.

 

Owner’s Death  -  The Death Benefit Proceeds payable equal the greater of the Contract Value or the Minimum Guaranteed Surrender Value on the Owner’s date of death.

 

If any Owner, or Annuitant in the case of a non-natural Owner, dies before the Maturity Date, We pay Death Proceeds to the Owner’s Beneficiary. If You did not choose a Settlement Option, the Beneficiary may make a selection within 60 days of Our receiving proof of death.

 

We pay out the entire Death Benefit Proceeds in a lump sum unless:

(1)                    It is payable to the Beneficiary over a 5 year period. Entire Death Benefit Proceeds must be paid within 5 years;

(2)                    It is payable over the lifetime, or life expectancy, of a designated Beneficiary. Payment must begin within one year of the date of death; or

(3)                    The designated Beneficiary is the Owner’s spouse and he or she continues the Contract in his or her name as new Owner.

 

Death after Maturity Date - If any Owner or the Annuitant dies after the Maturity Date and before the payment of the entire Maturity Proceeds, We pay any remaining balance as provided for in the Settlement Option selected, at least as rapidly as under the method of payment in effect at the Annuitant’s death.

 

Note: We pay Death Benefit Proceeds once, at death of the first to die of either an Owner or Annuitant.

 

INTEREST ON DEATH BENEFIT

 

We pay Interest on the Death Proceeds as described in Payment of Proceeds section.

 

BENEFICIARY

 

You named the Beneficiary in the Application. While the Annuitant is alive You may change the Beneficiary by Notifying Us. A change will take effect on the date We receive Notice. Any change is subject to payment or other action We take before receiving Notice.

 

Unless You Notify Us otherwise, these rules apply:

 

(1)                    If You name more than one Beneficiary, and any one Beneficiary dies before the Annuitant, We pay the Death Benefit Proceeds to any surviving Beneficiary(ies).

(2)                    If any Beneficiary dies within 30 days after the Annuitant dies and We receive Notice of the Death before We pay the Death Benefit Proceeds, We pay it as if the Beneficiary died before the Annuitant.

(3)                    If You have not named a Beneficiary when the Annuitant dies, We pay the Death Benefit Proceeds to the Annuitant’s estate.

(4)                    If no named Beneficiary is alive when the Annuitant dies, We pay the Death Benefit Proceeds to the Annuitant’s estate.

(5)                    We pay equal amounts when more than one Beneficiary is to share the Death Benefit Proceeds.

(6)                    When You do not state Beneficiaries by name (such as “children”), We may find who they are from sworn statements and not wait for court records. The word “child” means only a child born to, or adopted by, the Annuitant, it does not mean grandchild or stepchild.

 

14

 

SETTLEMENT OPTION PAY-OUT PROVISIONS

 

These are the guaranteed Pay-out options from which to choose at Maturity or Death of an Owner or Annuitant where there is a non-natural Owner. You may also choose any other Settlement Option We currently offer by Notifying Us. All Settlement Options are for a minimum of 5 years. We pay interest on the Proceeds as described in the Payment of Proceeds section.

 

OPTION 1 - INCOME FOR SPECIFIED PERIOD

 

We pay an income for a specific number of years in equal installments. We guarantee these payments to be at least those shown in Table 1.

 

OPTION 2 - LIFE INCOME

 

We pay equal monthly payments for a specified period certain and then for life.  We guarantee these payments will be at least those shown in Table 2.

 

OPTION 3 - INCOME OF SPECIFIED AMOUNT

 

We pay income of the specified amount until the principal and interest are exhausted.

 

OPTION 4 - JOINT AND SURVIVOR INCOME

 

We pay equal monthly payments during the joint lifetime of the Annuitant and the named Beneficiary/Payee.  We determine the payment by the Age and sex of each person from Table 3. The Annuitant must be at least 50 years old, and the Beneficiary/Payee must be at least 45 years old, at the time of the first monthly payment.

 

AUTOMATIC SETTLEMENT OPTION

 

The Automatic Settlement Option is life income with five years certain unless otherwise provided under the Internal Revenue Code.  If You do not select a Settlement Option within 60 days of Maturity, the Automatic Settlement Option will take effect.

 

INTEREST ON SETTLEMENT OPTIONS

 

We pay at least the minimum rate required by the state of delivery.

 

EXCESS INTEREST

 

Excess Interest is the difference between Our current rates and the minimum rate required. We determine Excess Interest, if any, on Settlement Option amounts. We pay this excess under Option 1, 2, or 4 and add it to the period of payment under Option 3.

 

SUPPLEMENTARY CONTRACT

 

When We receive Notice requesting a Settlement Option, We issue a Supplementary Contract in exchange for this Contract, stating the terms under which We make payments. The Supplementary Contract states to whom We pay any remaining Proceeds if the Payee dies. Once a Supplementary Contract is in effect the method of pay-out cannot be changed and the contract cannot be commuted or assigned.

 

If any Owner of the Supplementary Contract dies before payments are complete, We pay any remaining balance at least as rapidly as under the method of payment in effect on the Owner’s date of death; provided however, that if the Owner is not an individual, then the Annuitant is deemed the Owner for purposes of this requirement.

 

15

 

TABLE 1

 

INCOME FOR SPECIFIED PERIOD FACTORS

 

	
NO. OF YEARS
   PAYABLE
    	
 
    	
MONTHLY
   INSTALLMENTS*
    	
 
    	
NO. OF YEARS
   PAYABLE
    	
 
    	
MONTHLY
   INSTALLMENTS*
    	
 
    
	
1
    	
 
    	
N/A
    	
 
    	
11
    	
 
    	
8.42
    	
 
    
	
2
    	
 
    	
N/A
    	
 
    	
12
    	
 
    	
7.80
    	
 
    
	
3
    	
 
    	
N/A
    	
 
    	
13
    	
 
    	
7.26
    	
 
    
	
4
    	
 
    	
N/A
    	
 
    	
14
    	
 
    	
6.81
    	
 
    
	
5
    	
 
    	
17.49
    	
 
    	
15
    	
 
    	
6.42
    	
 
    
	
6
    	
 
    	
14.72
    	
 
    	
16
    	
 
    	
6.07
    	
 
    
	
7
    	
 
    	
12.74
    	
 
    	
17
    	
 
    	
5.77
    	
 
    
	
8
    	
 
    	
11.25
    	
 
    	
18
    	
 
    	
5.50
    	
 
    
	
9
    	
 
    	
10.10
    	
 
    	
19
    	
 
    	
5.26
    	
 
    
	
10
    	
 
    	
9.18
    	
 
    	
20
    	
 
    	
5.04
    	
 
    

 

* Monthly installments shown are for each $1,000 of net Proceeds applied at 2% Interest, which is subject to change as described on Page 15, Interest On Settlement Options.

 

16

 

TABLE 2

 

LIFE INCOME WITH SPECIFIED PERIOD CERTAIN FACTORS

 

	
 
    	
 
    	
 
    	
 
    	
120
    	
 
    	
240
    	
 
    
	
 
    	
 
    	
Life Only
    	
 
    	
Months Certain
    	
 
    	
Months Certain
    	
 
    
	
Age
    	
 
    	
Male
    	
 
    	
Female
    	
 
    	
Male
    	
 
    	
Female
    	
 
    	
Male
    	
 
    	
Female
    	
 
    
	
15
    	
 
    	
$
    	
2.28
    	
 
    	
$
    	
2.21
    	
 
    	
$
    	
2.28
    	
 
    	
$
    	
2.21
    	
 
    	
$
    	
2.28
    	
 
    	
$
    	
2.21
    	
 
    
	
16
    	
 
    	
$
    	
2.30
    	
 
    	
$
    	
2.23
    	
 
    	
$
    	
2.30
    	
 
    	
$
    	
2.23
    	
 
    	
$
    	
2.30
    	
 
    	
$
    	
2.23
    	
 
    
	
17
    	
 
    	
$
    	
2.32
    	
 
    	
$
    	
2.24
    	
 
    	
$
    	
2.32
    	
 
    	
$
    	
2.24
    	
 
    	
$
    	
2.31
    	
 
    	
$
    	
2.24
    	
 
    
	
18
    	
 
    	
$
    	
2.34
    	
 
    	
$
    	
2.26
    	
 
    	
$
    	
2.34
    	
 
    	
$
    	
2.26
    	
 
    	
$
    	
2.33
    	
 
    	
$
    	
2.26
    	
 
    
	
19
    	
 
    	
$
    	
2.36
    	
 
    	
$
    	
2.28
    	
 
    	
$
    	
2.35
    	
 
    	
$
    	
2.28
    	
 
    	
$
    	
2.35
    	
 
    	
$
    	
2.27
    	
 
    
	
20
    	
 
    	
$
    	
2.37
    	
 
    	
$
    	
2.29
    	
 
    	
$
    	
2.37
    	
 
    	
$
    	
2.29
    	
 
    	
$
    	
2.37
    	
 
    	
$
    	
2.29
    	
 
    
	
21
    	
 
    	
$
    	
2.39
    	
 
    	
$
    	
2.31
    	
 
    	
$
    	
2.39
    	
 
    	
$
    	
2.31
    	
 
    	
$
    	
2.39
    	
 
    	
$
    	
2.31
    	
 
    
	
22
    	
 
    	
$
    	
2.41
    	
 
    	
$
    	
2.33
    	
 
    	
$
    	
2.41
    	
 
    	
$
    	
2.33
    	
 
    	
$
    	
2.41
    	
 
    	
$
    	
2.33
    	
 
    
	
23
    	
 
    	
$
    	
2.44
    	
 
    	
$
    	
2.35
    	
 
    	
$
    	
2.43
    	
 
    	
$
    	
2.35
    	
 
    	
$
    	
2.43
    	
 
    	
$
    	
2.34
    	
 
    
	
24
    	
 
    	
$
    	
2.46
    	
 
    	
$
    	
2.37
    	
 
    	
$
    	
2.46
    	
 
    	
$
    	
2.37
    	
 
    	
$
    	
2.45
    	
 
    	
$
    	
2.36
    	
 
    
	
25
    	
 
    	
$
    	
2.48
    	
 
    	
$
    	
2.39
    	
 
    	
$
    	
2.48
    	
 
    	
$
    	
2.39
    	
 
    	
$
    	
2.47
    	
 
    	
$
    	
2.38
    	
 
    
	
26
    	
 
    	
$
    	
2.50
    	
 
    	
$
    	
2.41
    	
 
    	
$
    	
2.50
    	
 
    	
$
    	
2.41
    	
 
    	
$
    	
2.50
    	
 
    	
$
    	
2.40
    	
 
    
	
27
    	
 
    	
$
    	
2.53
    	
 
    	
$
    	
2.43
    	
 
    	
$
    	
2.53
    	
 
    	
$
    	
2.43
    	
 
    	
$
    	
2.52
    	
 
    	
$
    	
2.42
    	
 
    
	
28
    	
 
    	
$
    	
2.56
    	
 
    	
$
    	
2.45
    	
 
    	
$
    	
2.55
    	
 
    	
$
    	
2.45
    	
 
    	
$
    	
2.55
    	
 
    	
$
    	
2.45
    	
 
    
	
29
    	
 
    	
$
    	
2.58
    	
 
    	
$
    	
2.48
    	
 
    	
$
    	
2.58
    	
 
    	
$
    	
2.47
    	
 
    	
$
    	
2.57
    	
 
    	
$
    	
2.47
    	
 
    
	
30
    	
 
    	
$
    	
2.61
    	
 
    	
$
    	
2.50
    	
 
    	
$
    	
2.61
    	
 
    	
$
    	
2.50
    	
 
    	
$
    	
2.60
    	
 
    	
$
    	
2.49
    	
 
    
	
31
    	
 
    	
$
    	
2.64
    	
 
    	
$
    	
2.52
    	
 
    	
$
    	
2.64
    	
 
    	
$
    	
2.52
    	
 
    	
$
    	
2.63
    	
 
    	
$
    	
2.52
    	
 
    
	
32
    	
 
    	
$
    	
2.67
    	
 
    	
$
    	
2.55
    	
 
    	
$
    	
2.67
    	
 
    	
$
    	
2.55
    	
 
    	
$
    	
2.66
    	
 
    	
$
    	
2.54
    	
 
    
	
33
    	
 
    	
$
    	
2.70
    	
 
    	
$
    	
2.58
    	
 
    	
$
    	
2.70
    	
 
    	
$
    	
2.58
    	
 
    	
$
    	
2.69
    	
 
    	
$
    	
2.57
    	
 
    
	
34
    	
 
    	
$
    	
2.73
    	
 
    	
$
    	
2.61
    	
 
    	
$
    	
2.73
    	
 
    	
$
    	
2.60
    	
 
    	
$
    	
2.72
    	
 
    	
$
    	
2.60
    	
 
    
	
35
    	
 
    	
$
    	
2.77
    	
 
    	
$
    	
2.63
    	
 
    	
$
    	
2.76
    	
 
    	
$
    	
2.63
    	
 
    	
$
    	
2.75
    	
 
    	
$
    	
2.63
    	
 
    
	
36
    	
 
    	
$
    	
2.80
    	
 
    	
$
    	
2.67
    	
 
    	
$
    	
2.80
    	
 
    	
$
    	
2.66
    	
 
    	
$
    	
2.78
    	
 
    	
$
    	
2.65
    	
 
    
	
37
    	
 
    	
$
    	
2.84
    	
 
    	
$
    	
2.70
    	
 
    	
$
    	
2.84
    	
 
    	
$
    	
2.70
    	
 
    	
$
    	
2.82
    	
 
    	
$
    	
2.69
    	
 
    
	
38
    	
 
    	
$
    	
2.88
    	
 
    	
$
    	
2.73
    	
 
    	
$
    	
2.88
    	
 
    	
$
    	
2.73
    	
 
    	
$
    	
2.85
    	
 
    	
$
    	
2.72
    	
 
    
	
39
    	
 
    	
$
    	
2.92
    	
 
    	
$
    	
2.77
    	
 
    	
$
    	
2.92
    	
 
    	
$
    	
2.76
    	
 
    	
$
    	
2.89
    	
 
    	
$
    	
2.75
    	
 
    
	
40
    	
 
    	
$
    	
2.97
    	
 
    	
$
    	
2.80
    	
 
    	
$
    	
2.96
    	
 
    	
$
    	
2.80
    	
 
    	
$
    	
2.93
    	
 
    	
$
    	
2.79
    	
 
    
	
41
    	
 
    	
$
    	
3.01
    	
 
    	
$
    	
2.84
    	
 
    	
$
    	
3.00
    	
 
    	
$
    	
2.84
    	
 
    	
$
    	
2.97
    	
 
    	
$
    	
2.82
    	
 
    
	
42
    	
 
    	
$
    	
3.06
    	
 
    	
$
    	
2.88
    	
 
    	
$
    	
3.05
    	
 
    	
$
    	
2.88
    	
 
    	
$
    	
3.01
    	
 
    	
$
    	
2.86
    	
 
    
	
43
    	
 
    	
$
    	
3.11
    	
 
    	
$
    	
2.92
    	
 
    	
$
    	
3.10
    	
 
    	
$
    	
2.92
    	
 
    	
$
    	
3.06
    	
 
    	
$
    	
2.90
    	
 
    
	
44
    	
 
    	
$
    	
3.16
    	
 
    	
$
    	
2.96
    	
 
    	
$
    	
3.15
    	
 
    	
$
    	
2.96
    	
 
    	
$
    	
3.10
    	
 
    	
$
    	
2.94
    	
 
    
	
45
    	
 
    	
$
    	
3.21
    	
 
    	
$
    	
3.01
    	
 
    	
$
    	
3.20
    	
 
    	
$
    	
3.00
    	
 
    	
$
    	
3.15
    	
 
    	
$
    	
2.98
    	
 
    
	
46
    	
 
    	
$
    	
3.27
    	
 
    	
$
    	
3.06
    	
 
    	
$
    	
3.25
    	
 
    	
$
    	
3.05
    	
 
    	
$
    	
3.20
    	
 
    	
$
    	
3.02
    	
 
    
	
47
    	
 
    	
$
    	
3.33
    	
 
    	
$
    	
3.11
    	
 
    	
$
    	
3.31
    	
 
    	
$
    	
3.10
    	
 
    	
$
    	
3.25
    	
 
    	
$
    	
3.07
    	
 
    
	
48
    	
 
    	
$
    	
3.39
    	
 
    	
$
    	
3.16
    	
 
    	
$
    	
3.37
    	
 
    	
$
    	
3.15
    	
 
    	
$
    	
3.30
    	
 
    	
$
    	
3.12
    	
 
    
	
49
    	
 
    	
$
    	
3.45
    	
 
    	
$
    	
3.21
    	
 
    	
$
    	
3.43
    	
 
    	
$
    	
3.20
    	
 
    	
$
    	
3.35
    	
 
    	
$
    	
3.16
    	
 
    
	
50
    	
 
    	
$
    	
3.52
    	
 
    	
$
    	
3.27
    	
 
    	
$
    	
3.50
    	
 
    	
$
    	
3.26
    	
 
    	
$
    	
3.41
    	
 
    	
$
    	
3.22
    	
 
    
	
51
    	
 
    	
$
    	
3.59
    	
 
    	
$
    	
3.33
    	
 
    	
$
    	
3.56
    	
 
    	
$
    	
3.32
    	
 
    	
$
    	
3.47
    	
 
    	
$
    	
3.27
    	
 
    
	
52
    	
 
    	
$
    	
3.67
    	
 
    	
$
    	
3.40
    	
 
    	
$
    	
3.63
    	
 
    	
$
    	
3.38
    	
 
    	
$
    	
3.52
    	
 
    	
$
    	
3.32
    	
 
    
	
53
    	
 
    	
$
    	
3.74
    	
 
    	
$
    	
3.46
    	
 
    	
$
    	
3.71
    	
 
    	
$
    	
3.45
    	
 
    	
$
    	
3.59
    	
 
    	
$
    	
3.38
    	
 
    
	
54
    	
 
    	
$
    	
3.83
    	
 
    	
$
    	
3.53
    	
 
    	
$
    	
3.79
    	
 
    	
$
    	
3.51
    	
 
    	
$
    	
3.65
    	
 
    	
$
    	
3.44
    	
 
    
	
55
    	
 
    	
$
    	
3.91
    	
 
    	
$
    	
3.61
    	
 
    	
$
    	
3.87
    	
 
    	
$
    	
3.59
    	
 
    	
$
    	
3.71
    	
 
    	
$
    	
3.50
    	
 
    
	
56
    	
 
    	
$
    	
4.01
    	
 
    	
$
    	
3.69
    	
 
    	
$
    	
3.96
    	
 
    	
$
    	
3.66
    	
 
    	
$
    	
3.78
    	
 
    	
$
    	
3.56
    	
 
    
	
57
    	
 
    	
$
    	
4.10
    	
 
    	
$
    	
3.77
    	
 
    	
$
    	
4.05
    	
 
    	
$
    	
3.74
    	
 
    	
$
    	
3.84
    	
 
    	
$
    	
3.63
    	
 
    
	
58
    	
 
    	
$
    	
4.21
    	
 
    	
$
    	
3.86
    	
 
    	
$
    	
4.14
    	
 
    	
$
    	
3.82
    	
 
    	
$
    	
3.91
    	
 
    	
$
    	
3.70
    	
 
    
	
59
    	
 
    	
$
    	
4.32
    	
 
    	
$
    	
3.95
    	
 
    	
$
    	
4.24
    	
 
    	
$
    	
3.91
    	
 
    	
$
    	
3.98
    	
 
    	
$
    	
3.77
    	
 
    
	
60
    	
 
    	
$
    	
4.43
    	
 
    	
$
    	
4.05
    	
 
    	
$
    	
4.35
    	
 
    	
$
    	
4.01
    	
 
    	
$
    	
4.05
    	
 
    	
$
    	
3.84
    	
 
    
	
61
    	
 
    	
$
    	
4.56
    	
 
    	
$
    	
4.15
    	
 
    	
$
    	
4.46
    	
 
    	
$
    	
4.10
    	
 
    	
$
    	
4.12
    	
 
    	
$
    	
3.91
    	
 
    
	
62
    	
 
    	
$
    	
4.69
    	
 
    	
$
    	
4.27
    	
 
    	
$
    	
4.58
    	
 
    	
$
    	
4.21
    	
 
    	
$
    	
4.19
    	
 
    	
$
    	
3.98
    	
 
    
	
63
    	
 
    	
$
    	
4.83
    	
 
    	
$
    	
4.39
    	
 
    	
$
    	
4.70
    	
 
    	
$
    	
4.32
    	
 
    	
$
    	
4.25
    	
 
    	
$
    	
4.06
    	
 
    
	
64
    	
 
    	
$
    	
4.98
    	
 
    	
$
    	
4.51
    	
 
    	
$
    	
4.83
    	
 
    	
$
    	
4.43
    	
 
    	
$
    	
4.32
    	
 
    	
$
    	
4.13
    	
 
    
	
65
    	
 
    	
$
    	
5.14
    	
 
    	
$
    	
4.65
    	
 
    	
$
    	
4.96
    	
 
    	
$
    	
4.55
    	
 
    	
$
    	
4.39
    	
 
    	
$
    	
4.21
    	
 
    
	
66
    	
 
    	
$
    	
5.32
    	
 
    	
$
    	
4.79
    	
 
    	
$
    	
5.10
    	
 
    	
$
    	
4.68
    	
 
    	
$
    	
4.45
    	
 
    	
$
    	
4.29
    	
 
    
	
67
    	
 
    	
$
    	
5.50
    	
 
    	
$
    	
4.95
    	
 
    	
$
    	
5.25
    	
 
    	
$
    	
4.82
    	
 
    	
$
    	
4.51
    	
 
    	
$
    	
4.36
    	
 
    
	
68
    	
 
    	
$
    	
5.70
    	
 
    	
$
    	
5.11
    	
 
    	
$
    	
5.40
    	
 
    	
$
    	
4.96
    	
 
    	
$
    	
4.57
    	
 
    	
$
    	
4.43
    	
 
    
	
69
    	
 
    	
$
    	
5.91
    	
 
    	
$
    	
5.29
    	
 
    	
$
    	
5.56
    	
 
    	
$
    	
5.11
    	
 
    	
$
    	
4.63
    	
 
    	
$
    	
4.50
    	
 
    
	
70
    	
 
    	
$
    	
6.13
    	
 
    	
$
    	
5.48
    	
 
    	
$
    	
5.72
    	
 
    	
$
    	
5.27
    	
 
    	
$
    	
4.68
    	
 
    	
$
    	
4.57
    	
 
    
	
71
    	
 
    	
$
    	
6.37
    	
 
    	
$
    	
5.69
    	
 
    	
$
    	
5.89
    	
 
    	
$
    	
5.44
    	
 
    	
$
    	
4.73
    	
 
    	
$
    	
4.63
    	
 
    
	
72
    	
 
    	
$
    	
6.62
    	
 
    	
$
    	
5.91
    	
 
    	
$
    	
6.06
    	
 
    	
$
    	
5.61
    	
 
    	
$
    	
4.78
    	
 
    	
$
    	
4.69
    	
 
    
	
73
    	
 
    	
$
    	
6.89
    	
 
    	
$
    	
6.16
    	
 
    	
$
    	
6.24
    	
 
    	
$
    	
5.80
    	
 
    	
$
    	
4.82
    	
 
    	
$
    	
4.74
    	
 
    
	
74
    	
 
    	
$
    	
7.18
    	
 
    	
$
    	
6.42
    	
 
    	
$
    	
6.41
    	
 
    	
$
    	
5.98
    	
 
    	
$
    	
4.85
    	
 
    	
$
    	
4.79
    	
 
    
	
75
    	
 
    	
$
    	
7.49
    	
 
    	
$
    	
6.70
    	
 
    	
$
    	
6.59
    	
 
    	
$
    	
6.18
    	
 
    	
$
    	
4.89
    	
 
    	
$
    	
4.83
    	
 
    
	
76
    	
 
    	
$
    	
7.82
    	
 
    	
$
    	
7.01
    	
 
    	
$
    	
6.78
    	
 
    	
$
    	
6.38
    	
 
    	
$
    	
4.91
    	
 
    	
$
    	
4.87
    	
 
    
	
77
    	
 
    	
$
    	
8.17
    	
 
    	
$
    	
7.34
    	
 
    	
$
    	
6.96
    	
 
    	
$
    	
6.58
    	
 
    	
$
    	
4.94
    	
 
    	
$
    	
4.90
    	
 
    
	
78
    	
 
    	
$
    	
8.55
    	
 
    	
$
    	
7.70
    	
 
    	
$
    	
7.14
    	
 
    	
$
    	
6.79
    	
 
    	
$
    	
4.96
    	
 
    	
$
    	
4.93
    	
 
    
	
79
    	
 
    	
$
    	
8.96
    	
 
    	
$
    	
8.09
    	
 
    	
$
    	
7.31
    	
 
    	
$
    	
6.99
    	
 
    	
$
    	
4.98
    	
 
    	
$
    	
4.96
    	
 
    
	
80
    	
 
    	
$
    	
9.39
    	
 
    	
$
    	
8.51
    	
 
    	
$
    	
7.49
    	
 
    	
$
    	
7.20
    	
 
    	
$
    	
4.99
    	
 
    	
$
    	
4.98
    	
 
    
	
81
    	
 
    	
$
    	
9.86
    	
 
    	
$
    	
8.97
    	
 
    	
$
    	
7.65
    	
 
    	
$
    	
7.40
    	
 
    	
$
    	
5.00
    	
 
    	
$
    	
4.99
    	
 
    
	
82
    	
 
    	
$
    	
10.36
    	
 
    	
$
    	
9.46
    	
 
    	
$
    	
7.81
    	
 
    	
$
    	
7.59
    	
 
    	
$
    	
5.01
    	
 
    	
$
    	
5.01
    	
 
    
	
83
    	
 
    	
$
    	
10.89
    	
 
    	
$
    	
10.00
    	
 
    	
$
    	
7.97
    	
 
    	
$
    	
7.78
    	
 
    	
$
    	
5.02
    	
 
    	
$
    	
5.02
    	
 
    
	
84
    	
 
    	
$
    	
11.46
    	
 
    	
$
    	
10.59
    	
 
    	
$
    	
8.11
    	
 
    	
$
    	
7.95
    	
 
    	
$
    	
5.03
    	
 
    	
$
    	
5.02
    	
 
    
	
85
    	
 
    	
$
    	
12.06
    	
 
    	
$
    	
11.22
    	
 
    	
$
    	
8.25
    	
 
    	
$
    	
8.11
    	
 
    	
$
    	
5.03
    	
 
    	
$
    	
5.03
    	
 
    
	
86
    	
 
    	
$
    	
12.71
    	
 
    	
$
    	
11.90
    	
 
    	
$
    	
8.37
    	
 
    	
$
    	
8.26
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.03
    	
 
    
	
87
    	
 
    	
$
    	
13.40
    	
 
    	
$
    	
12.63
    	
 
    	
$
    	
8.49
    	
 
    	
$
    	
8.39
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
88
    	
 
    	
$
    	
14.14
    	
 
    	
$
    	
13.41
    	
 
    	
$
    	
8.59
    	
 
    	
$
    	
8.51
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
89
    	
 
    	
$
    	
14.92
    	
 
    	
$
    	
14.23
    	
 
    	
$
    	
8.68
    	
 
    	
$
    	
8.62
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
90
    	
 
    	
$
    	
15.75
    	
 
    	
$
    	
15.11
    	
 
    	
$
    	
8.77
    	
 
    	
$
    	
8.71
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
91
    	
 
    	
$
    	
16.63
    	
 
    	
$
    	
16.02
    	
 
    	
$
    	
8.84
    	
 
    	
$
    	
8.80
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
92
    	
 
    	
$
    	
17.57
    	
 
    	
$
    	
16.97
    	
 
    	
$
    	
8.91
    	
 
    	
$
    	
8.87
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
93
    	
 
    	
$
    	
18.56
    	
 
    	
$
    	
17.97
    	
 
    	
$
    	
8.97
    	
 
    	
$
    	
8.93
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
94
    	
 
    	
$
    	
19.63
    	
 
    	
$
    	
19.01
    	
 
    	
$
    	
9.02
    	
 
    	
$
    	
8.99
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
95
    	
 
    	
$
    	
20.77
    	
 
    	
$
    	
20.10
    	
 
    	
$
    	
9.06
    	
 
    	
$
    	
9.04
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
96
    	
 
    	
$
    	
22.01
    	
 
    	
$
    	
21.26
    	
 
    	
$
    	
9.10
    	
 
    	
$
    	
9.04
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
97
    	
 
    	
$
    	
23.37
    	
 
    	
$
    	
22.50
    	
 
    	
$
    	
9.12
    	
 
    	
$
    	
9.11
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
98
    	
 
    	
$
    	
24.88
    	
 
    	
$
    	
23.88
    	
 
    	
$
    	
9.14
    	
 
    	
$
    	
9.13
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
99
    	
 
    	
$
    	
26.60
    	
 
    	
$
    	
25.43
    	
 
    	
$
    	
9.16
    	
 
    	
$
    	
9.15
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
100
    	
 
    	
$
    	
28.57
    	
 
    	
$
    	
27.21
    	
 
    	
$
    	
9.17
    	
 
    	
$
    	
9.16
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
101
    	
 
    	
$
    	
30.84
    	
 
    	
$
    	
29.28
    	
 
    	
$
    	
9.17
    	
 
    	
$
    	
9.17
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
102
    	
 
    	
$
    	
33.48
    	
 
    	
$
    	
31.70
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
103
    	
 
    	
$
    	
36.57
    	
 
    	
$
    	
34.56
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
104
    	
 
    	
$
    	
40.20
    	
 
    	
$
    	
37.96
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
105
    	
 
    	
$
    	
44.50
    	
 
    	
$
    	
42.00
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
106
    	
 
    	
$
    	
49.61
    	
 
    	
$
    	
46.86
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
107
    	
 
    	
$
    	
55.74
    	
 
    	
$
    	
52.73
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
108
    	
 
    	
$
    	
63.15
    	
 
    	
$
    	
59.88
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
109
    	
 
    	
$
    	
72.20
    	
 
    	
$
    	
68.70
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
110
    	
 
    	
$
    	
83.42
    	
 
    	
$
    	
79.72
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
111
    	
 
    	
$
    	
97.59
    	
 
    	
$
    	
93.78
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
112
    	
 
    	
$
    	
116.03
    	
 
    	
$
    	
112.26
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
113
    	
 
    	
$
    	
141.56
    	
 
    	
$
    	
138.22
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    
	
114
    	
 
    	
$
    	
187.79
    	
 
    	
$
    	
185.87
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
9.18
    	
 
    	
$
    	
5.04
    	
 
    	
$
    	
5.04
    	
 
    

 

Installments shown are monthly and are for each $1,000 of net Proceeds applied. Based on 2000 Individual Annuity Table, applied at 2% Interest, which is subject to change as described on Page 15, Interest On Settlement Options.

 

17

 

TABLE 3

 

JOINT AND SURVIVOR INCOME FACTORS

 

We will establish values for Age or sex combinations not shown in the table on request. They will be calculated on the same basis as those in this table.

 

	
 
    	
 
    	
Male Age
    	
 
    
	
Female Age
    	
 
    	
45
    	
 
    	
50
    	
 
    	
55
    	
 
    	
60
    	
 
    	
65
    	
 
    	
70
    	
 
    
	
45
    	
 
    	
$
    	
2.79
    	
 
    	
$
    	
2.86
    	
 
    	
$
    	
2.91
    	
 
    	
$
    	
2.95
    	
 
    	
$
    	
2.97
    	
 
    	
$
    	
2.99
    	
 
    
	
50
    	
 
    	
$
    	
2.89
    	
 
    	
$
    	
3.00
    	
 
    	
$
    	
3.09
    	
 
    	
$
    	
3.15
    	
 
    	
$
    	
3.20
    	
 
    	
$
    	
3.23
    	
 
    
	
55
    	
 
    	
$
    	
2.98
    	
 
    	
$
    	
3.13
    	
 
    	
$
    	
3.26
    	
 
    	
$
    	
3.38
    	
 
    	
$
    	
3.47
    	
 
    	
$
    	
3.53
    	
 
    
	
60
    	
 
    	
$
    	
3.06
    	
 
    	
$
    	
3.25
    	
 
    	
$
    	
3.44
    	
 
    	
$
    	
3.61
    	
 
    	
$
    	
3.76
    	
 
    	
$
    	
3.88
    	
 
    
	
65
    	
 
    	
$
    	
3.11
    	
 
    	
$
    	
3.34
    	
 
    	
$
    	
3.59
    	
 
    	
$
    	
3.84
    	
 
    	
$
    	
4.08
    	
 
    	
$
    	
4.28
    	
 
    
	
70
    	
 
    	
$
    	
3.15
    	
 
    	
$
    	
3.41
    	
 
    	
$
    	
3.71
    	
 
    	
$
    	
4.04
    	
 
    	
$
    	
4.39
    	
 
    	
$
    	
4.72
    	
 
    

 

Installments shown are monthly and are for each $1,000 of net Proceeds applied.  Based on 2000 Individual Annuity Table a, applied at 2% Interest, and subject to change as described on Page 15, Interest On Settlement Options.

 

18

 

TABLE OF GUARANTEED VALUES

 

Your Values will never be less than shown here if You pay Your Initial Premium at issue, pay additional Planned Premium Amounts as You indicated on Your Application, and don’t take any Withdrawals. The Cash Surrender Value is calculated as described on Page 8 and equals the greater of the Contract Value less Surrender Charges or the Minimum Guaranteed Surrender Value. The Death Benefit equals the greater of the Contract Value or Minimum Guaranteed Surrender Value.

 

	
End
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
of
    	
 
    	
 
    	
 
    	
Cash
    	
 
    	
 
    	
 
    
	
Contract
    	
 
    	
 
    	
 
    	
Surrender
    	
 
    	
Death
    	
 
    
	
Year
    	
 
    	
Premium(s)
    	
 
    	
Value
    	
 
    	
Benefit
    	
 
    
	
1
    	
 
    	
$
    	
20,000
    	
 
    	
$
    	
18,400
    	
 
    	
$
    	
20,000
    	
 
    
	
2
    	
 
    	
4,000
    	
 
    	
22,320
    	
 
    	
24,000
    	
 
    
	
3
    	
 
    	
4,000
    	
 
    	
26,320
    	
 
    	
28,000
    	
 
    
	
4
    	
 
    	
4,000
    	
 
    	
32,000
    	
 
    	
32,000
    	
 
    
	
5
    	
 
    	
4,000
    	
 
    	
36,000
    	
 
    	
36,000
    	
 
    
	
6
    	
 
    	
4,000
    	
 
    	
40,000
    	
 
    	
40,000
    	
 
    
	
7
    	
 
    	
4,000
    	
 
    	
44,000
    	
 
    	
44,000
    	
 
    
	
8
    	
 
    	
4,000
    	
 
    	
48,000
    	
 
    	
48,000
    	
 
    
	
9
    	
 
    	
4,000
    	
 
    	
52,000
    	
 
    	
52,000
    	
 
    
	
10
    	
 
    	
4,000
    	
 
    	
56,000
    	
 
    	
56,000
    	
 
    
	
11
    	
 
    	
4,000
    	
 
    	
60,000
    	
 
    	
60,000
    	
 
    
	
12
    	
 
    	
4,000
    	
 
    	
64,000
    	
 
    	
64,000
    	
 
    
	
13
    	
 
    	
4,000
    	
 
    	
68,000
    	
 
    	
68,000
    	
 
    
	
14
    	
 
    	
4,000
    	
 
    	
72,132
    	
 
    	
72,132
    	
 
    
	
15
    	
 
    	
4,000
    	
 
    	
76,767
    	
 
    	
76,767
    	
 
    
	
16
    	
 
    	
4,000
    	
 
    	
81,471
    	
 
    	
81,471
    	
 
    
	
17
    	
 
    	
4,000
    	
 
    	
86,245
    	
 
    	
86,245
    	
 
    
	
18
    	
 
    	
4,000
    	
 
    	
91,091
    	
 
    	
91,091
    	
 
    
	
19
    	
 
    	
4,000
    	
 
    	
96,010
    	
 
    	
96,010
    	
 
    
	
20
    	
 
    	
4,000
    	
 
    	
101,003
    	
 
    	
101,003
    	
 
    
	
25
    	
 
    	
4,000
    	
 
    	
127,112
    	
 
    	
127,112
    	
 
    
	
30
    	
 
    	
4,000
    	
 
    	
155,239
    	
 
    	
155,239
    	
 
    
	
Maturity
    	
 
    	
$
    	
156,000
    	
 
    	
$
    	
185,540
    	
 
    	
185,540
    	
 
    
											

 

Minimum Guaranteed Surrender Value at Maturity: $185,540

 

These values are based on the following:

 

Total Initial Premium: $20,000.00

Planned Premium Amount: $4,000.00

Planned Premium Mode: Annual

 

ICC10-INDEX-4-09R-3

 

19

 

TABLE OF GUARANTEED VALUES

 

Your Values will never be less than shown here if You pay Your Initial Premium at issue, pay additional Planned Premium Amounts as You indicated on Your Application, and don’t take any Withdrawals. The Cash Surrender Value is calculated as described on Page 8 and equals the greater of the Contract Value less Surrender Charges or the Minimum Guaranteed Surrender Value. The Death Benefit equals the greater of the Contract Value or Minimum Guaranteed Surrender Value.

 

	
End
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
of
    	
 
    	
 
    	
 
    	
Cash
    	
 
    	
 
    	
 
    
	
Contract
    	
 
    	
 
    	
 
    	
Surrender
    	
 
    	
Death
    	
 
    
	
Year
    	
 
    	
Premium(s)
    	
 
    	
Value
    	
 
    	
Benefit
    	
 
    
	
1
    	
 
    	
$
    	
20,000
    	
 
    	
$
    	
18,400
    	
 
    	
$
    	
20,000
    	
 
    
	
2
    	
 
    	
4,000
    	
 
    	
22,320
    	
 
    	
24,000
    	
 
    
	
3
    	
 
    	
4,000
    	
 
    	
26,320
    	
 
    	
28,000
    	
 
    
	
4
    	
 
    	
4,000
    	
 
    	
30,400
    	
 
    	
32,000
    	
 
    
	
5
    	
 
    	
4,000
    	
 
    	
34,560
    	
 
    	
36,000
    	
 
    
	
6
    	
 
    	
4,000
    	
 
    	
40,000
    	
 
    	
40,000
    	
 
    
	
7
    	
 
    	
4,000
    	
 
    	
44,000
    	
 
    	
44,000
    	
 
    
	
8
    	
 
    	
4,000
    	
 
    	
48,000
    	
 
    	
48,000
    	
 
    
	
9
    	
 
    	
4,000
    	
 
    	
52,000
    	
 
    	
52,000
    	
 
    
	
10
    	
 
    	
4,000
    	
 
    	
56,000
    	
 
    	
56,000
    	
 
    
	
11
    	
 
    	
4,000
    	
 
    	
60,000
    	
 
    	
60,000
    	
 
    
	
12
    	
 
    	
4,000
    	
 
    	
64,000
    	
 
    	
64,000
    	
 
    
	
13
    	
 
    	
4,000
    	
 
    	
68,000
    	
 
    	
68,000
    	
 
    
	
14
    	
 
    	
4,000
    	
 
    	
72,132
    	
 
    	
72,132
    	
 
    
	
15
    	
 
    	
4,000
    	
 
    	
76,767
    	
 
    	
76,767
    	
 
    
	
16
    	
 
    	
4,000
    	
 
    	
81,471
    	
 
    	
81,471
    	
 
    
	
17
    	
 
    	
4,000
    	
 
    	
86,245
    	
 
    	
86,245
    	
 
    
	
18
    	
 
    	
4,000
    	
 
    	
91,091
    	
 
    	
91,091
    	
 
    
	
19
    	
 
    	
4,000
    	
 
    	
96,010
    	
 
    	
96,010
    	
 
    
	
20
    	
 
    	
4,000
    	
 
    	
101,003
    	
 
    	
101,003
    	
 
    
	
25
    	
 
    	
4,000
    	
 
    	
127,112
    	
 
    	
127,112
    	
 
    
	
30
    	
 
    	
4,000
    	
 
    	
155,239
    	
 
    	
155,239
    	
 
    
	
Maturity
    	
 
    	
$
    	
156,000
    	
 
    	
$
    	
185,540
    	
 
    	
$
    	
185,540
    	
 
    

 

Minimum Guaranteed Surrender Value at Maturity:  $185,540 These values are based on the following:

 

Total Initial Premium: $20,000.00

Planned Premium Amount: $4,000.00

Planned Premium Mode: Annual

 

ICC10-INDEX-4-09R-5

 

19

 

TABLE OF GUARANTEED VALUES

 

Your Values will never be less than shown here if You pay Your Initial Premium at issue, pay additional Planned Premium Amounts as You indicated on Your Application, and don’t take any Withdrawals. The Cash Surrender Value is calculated as described on Page 8 and equals the greater of the Contract Value less Surrender Charges or the Minimum Guaranteed Surrender Value. The Death Benefit equals the greater of the Contract Value or Minimum Guaranteed Surrender Value.

 

	
End
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
of
    	
 
    	
 
    	
 
    	
Cash
    	
 
    	
 
    	
 
    
	
Contract
    	
 
    	
 
    	
 
    	
Surrender
    	
 
    	
Death
    	
 
    
	
Year
    	
 
    	
Premium(s)
    	
 
    	
Value
    	
 
    	
Benefit
    	
 
    
	
1
    	
 
    	
$
    	
20,000
    	
 
    	
18,400
    	
 
    	
20,000
    	
 
    
	
2
    	
 
    	
4,000
    	
 
    	
22,320
    	
 
    	
24,000
    	
 
    
	
3
    	
 
    	
4,000
    	
 
    	
26,320
    	
 
    	
28,000
    	
 
    
	
4
    	
 
    	
4,000
    	
 
    	
30,400
    	
 
    	
32,000
    	
 
    
	
5
    	
 
    	
4,000
    	
 
    	
34,560
    	
 
    	
36,000
    	
 
    
	
6
    	
 
    	
4,000
    	
 
    	
38,800
    	
 
    	
40,000
    	
 
    
	
7
    	
 
    	
4,000
    	
 
    	
43,120
    	
 
    	
44,000
    	
 
    
	
8
    	
 
    	
4,000
    	
 
    	
48,000
    	
 
    	
48,000
    	
 
    
	
9
    	
 
    	
4,000
    	
 
    	
52,000
    	
 
    	
52,000
    	
 
    
	
10
    	
 
    	
4,000
    	
 
    	
56,000
    	
 
    	
56,000
    	
 
    
	
11
    	
 
    	
4,000
    	
 
    	
60,000
    	
 
    	
60,000
    	
 
    
	
12
    	
 
    	
4,000
    	
 
    	
64,000
    	
 
    	
64,000
    	
 
    
	
13
    	
 
    	
4,000
    	
 
    	
68,000
    	
 
    	
68,000
    	
 
    
	
14
    	
 
    	
4,000
    	
 
    	
72,132
    	
 
    	
72,132
    	
 
    
	
15
    	
 
    	
4,000
    	
 
    	
76,767
    	
 
    	
76,767
    	
 
    
	
16
    	
 
    	
4,000
    	
 
    	
81,471
    	
 
    	
81,471
    	
 
    
	
17
    	
 
    	
4,000
    	
 
    	
86,245
    	
 
    	
86,245
    	
 
    
	
18
    	
 
    	
4,000
    	
 
    	
91,091
    	
 
    	
91,091
    	
 
    
	
19
    	
 
    	
4,000
    	
 
    	
96,010
    	
 
    	
96,010
    	
 
    
	
20
    	
 
    	
4,000
    	
 
    	
101,003
    	
 
    	
101,003
    	
 
    
	
25
    	
 
    	
4,000
    	
 
    	
127,112
    	
 
    	
127,112
    	
 
    
	
30
    	
 
    	
4,000
    	
 
    	
155,239
    	
 
    	
155,239
    	
 
    
	
Maturity
    	
 
    	
$
    	
156,000
    	
 
    	
$
    	
185,540
    	
 
    	
$
    	
185,540
    	
 
    
											

 

Minimum Guaranteed Surrender Value at Maturity: $185,540

 

These values are based on the following:

 

Total Initial Premium: $20,000.00

Planned Premium Amount: $4,000.00

Planned Premium Mode: Annual

 

 

ICC10-INDEX-4-09R-7

 

19

 

EAGLE

LIFE INSURANCE COMPANY

 

[P. O. Box 71279]

[Des Moines, Iowa 50325-0279]

 

FLEXIBLE PREMIUM DEFERRED ANNUITY CONTRACT WITH INDEX-LINKED INTEREST 
 OPTIONS

 

Index Credits currently linked to the S&P 500 Index

With Market Value Adjustment Provision

Which May Increase or Decrease Cash Surrender Values

Death Benefit Prior to Maturity

Monthly Income at Maturity

No Dividends

 

ICC10-INDEX-4-09RExhibit 10(v)

COINSURANCE AGREEMENT

 

This Coinsurance Agreement (this “Agreement”), effective as of January 1, 2010, is by and between Eagle Life Insurance Company, a corporation organized under the laws of the State of Iowa (hereinafter referred to as the “Reinsurer”), and American Equity Investment Life Insurance Company, a company organized under the laws of the State of Iowa (hereinafter referred to as the “Company”).

 

The Company and the Reinsurer mutually agree to enter into a reinsurance transaction under the terms and conditions stated herein. This Agreement is an indemnity reinsurance agreement solely between the Company and the Reinsurer, and the performance of the obligations of each party under this Agreement shall be rendered solely to the other party. In no instance, except as set forth in the insolvency provisions of this Agreement, shall anyone other than the Company or the Reinsurer have any rights under this Agreement, and the Company shall be and shall remain the only party hereunder that is liable to any insured or beneficiary under the policy reinsured hereunder.

 

ARTICLE I
 Definitions

 

As used in this Agreement, the following terms shall have the following meanings (definitions are applicable to both the singular and the plural forms of each term defined in this Article):

 

1.1                            “Account Value” means the amount payable on a Policy upon full surrender excluding the surrender charge, determined in a manner consistent with the amounts reported quarterly in Schedule D.

 

1.2                            “Accrual Rate” means the weighted average crediting rate on policies in force at the end of the most recent calendar quarter, plus 2.50%.

 

1.3                            “Business Day” means any day that is not a Saturday, Sunday or other day on which national banking institutions are required or permitted by law or executive order to be closed.

 

1.4                            “Commission Allowance” shall have the meaning set forth in Schedule C. 

 

1.5                            “Effective Date” shall have the meaning set forth in Section 2.1.

 

1.6                            “Expense Allowances” shall have the meaning set forth in Schedule C.

 

1.7                            “Insurance Taxes and Charges” means all insurance taxes (not including any federal, state or local tax measured by net income) and Guaranty Fund assessments related to the Reinsured Policies.

 

1.8                            “Monthly Accounting Report” means the report required to be prepared in accordance with Section 8.2 and Schedule B.

 

 

1.9                            “Policy” means any individual insurance policy described in Schedule A and all endorsements, riders, benefits, and amendments thereto.

 

1.10                      “Policy Benefits” shall mean partial surrenders, full surrenders, death claims, annuity payouts under Supplementary Contracts, and all other contractual benefits.

 

1.11                      “Premiums” means the gross considerations for the Policies reinsured hereunder.

 

1.12                      “Quarterly Accounting Report” means the report required to be prepared in accordance with Section 8.2 and Schedule D.

 

1.13                      “Quota Share” means the percentage of risk assumed by the Reinsurer with respect to the Reinsured Policies, as set forth in Schedule A.

 

1.14                      “Reinsurance Premium” shall mean the Quota Share of Premiums on Reinsured Policies as set forth in Schedule A.

 

1.15                      “Reinsured Policies” shall mean all Policies reinsured under this Agreement, as set forth in Schedule A, including any amendments, riders or endorsements attached thereto and all Supplementary Contracts written by the Company on or following the Effective Date through, but excluding, the date this Agreement is terminated.

 

1.16                      “Reserves” means Exhibit 5 policy reserves as defined under statutory accounting principles.

 

1.17                      “Settlement Amount” means the net amount due and payable to either party with respect to any Monthly Accounting Period as set forth in Section 8.3.

 

1.18                      “Supplementary Contracts” means all supplementary contracts, whether with or without life contingencies, issued by the Company in exchange for a Reinsured Policy.

 

1.19                      “Terminal Accounting and Settlement” as described in Section 10.1 means the final accounting and payment of any amount due either party upon the termination of this Agreement.

 

ARTICLE II
 Coverage

 

2.1                            Coverage. For Policies issued on or after January 1, 2010, (the “Effective Date”), the Company agrees to cede to the Reinsurer, and the Reinsurer agrees to indemnify the Company for the Quota Share of the risks under the Policies as of the Effective Date. The liability of the Reinsurer with respect to its share of the risks under the Reinsured Policies including liability for Policy Benefits under the Reinsured Policies shall begin simultaneously with that of the Company, but not prior to the Effective Date.

 

2.2                            Conditions. The reinsurance hereunder is subject to the same limitations, terms and conditions as the applicable Reinsured Policies hereunder, except as otherwise provided in this Agreement.

 

2

 

2.3                            Exclusions. This Agreement does not apply to any risks except those risks under the applicable Reinsured Policy hereunder.

 

ARTICLE III
 General Provisions

 

3.1                            Confidentiality. In performing the obligations arising under this Agreement, Reinsurer may have access to and receive disclosure of certain information from Company which is confidential or proprietary (hereinafter “Confidential Information”). Confidential Information includes all information provided by Company to Reinsurer except (a) information which Reinsurer has confirmed is publicly known, so long as it is not publicly known through the acts or omissions of Reinsurer; or (b) information which is legally required to be disclosed by Reinsurer under a requirement of a governmental agency or a court of law having jurisdiction, but only if Reinsurer discloses only that information which, in the reasonable opinion of its counsel, is required to be disclosed. Reinsurer agrees that it will not disclose the Confidential Information to a third party other than to carry out the Reinsurer’s obligations under this Agreement. Reinsurer further agrees not to appropriate any Confidential Information for its own use either during the course of or subsequent to termination of this Agreement. If Reinsurer discloses the Confidential Information to a third party in order to perform the obligations under this Agreement, the Reinsurer will disclose to the Company and will require the third party to agree to the confidentiality standards set forth in this paragraph. Company has the right, but not the obligation, to audit the Confidential Information in the possession of Reinsurer to detect use of the Confidential Information which is in violation of this Coinsurance Agreement. Reinsurer’s obligations with respect to the confidentiality and security of the Confidential Information shall survive termination of this Agreement. All Confidential Information in any medium and any copies thereof shall be promptly returned to Company or destroyed at Company’s option upon request of Company or upon termination of this Agreement.

 

Notwithstanding anything in this Section 3.1 to the contrary, Company agrees that Reinsurer may disclose to analysts, rating agencies and/or any other parties approved in advance by Company, information limited to (i) the existence this Agreement; (ii) the quota share amount and total dollar amount of reinsurance hereunder (premiums, benefits, and expenses); and (iii) the terms of the Policies, but specifically excluding contract specific data from the pricing models for the Policies and/or the identities of any of Company’s sales agents.

 

3.2                            Inspection. Either party or its designated representative may upon advance notice of at least ten (10) Business Days inspect, at the offices of the Company or the Reinsurer, as the case may be, where such records are located, and conduct reasonable audits of, the papers and any and all other books or documents of the Company or the Reinsurer reasonably relating to the Reinsured Policies and the administrative responsibilities hereunder, during normal business hours for such period as this Agreement is in effect or for as long thereafter as the Company or the Reinsurer, as the case may be, seeks performance by the other party pursuant to the terms of this Agreement. The information obtained shall be used only for purposes relating to the reinsurance provided under this Agreement and shall not be disclosed to any person without the express permission of the

 

3

 

other party, except to the extent that disclosure is required by law. Each party will bear its own out of pocket costs in conducting investigations under this Section. Each party’s rights under this Section 3.2 shall survive termination of this Agreement until all Reinsured Policies have expired by their terms.

 

3.3                            Misunderstandings and Oversights. If any delay, omission, error or failure to pay amounts due or to perform any other act required by this Agreement is unintentional and caused by misunderstanding, accident, or oversight, the Company and the Reinsurer shall adjust the situation to what it would have been had the misunderstanding, accident or oversight not occurred. The party first discovering such misunderstanding, accident or oversight, or act resulting from the misunderstanding or oversight, shall notify the other party in writing promptly upon discovery thereof and the parties shall act to correct such misunderstanding or oversight promptly upon receipt of such notice. However, this Section 3.3 shall not be construed as a waiver by either party of its right to enforce strictly the terms of this Agreement.

 

3.4                            Misstatement. In the event that the liability provided by a Reinsured Policy is increased or decreased because of a misstatement of fact, the reinsurance hereunder shall increase or decrease proportionate to the Quota Share thereunder.

 

3.5                            Policy Changes. The Company and the Reinsurer shall share, based upon the applicable Quota Share, in any increase or decrease in the Company’s liability that results from any change in the terms or conditions of any Reinsured Policy arising from the insured’s addition or deletion of riders.

 

3.6                            Compliance with Applicable Laws and Regulations.

 

(a)                                  Agreements to be Construed in Accordance with Existing Law. It is the intention of the parties that this Agreement and related documents shall comply with all applicable federal and state laws and regulations in such a way that a Reinsured Policy remains reinsured on the quota share reinsurance plan.

 

(b)                                 Amendment Upon Failure to Comply. In the event that it is determined by a regulatory authority, or by either party upon the advice of regulatory authorities that this Agreement or related documents fail to conform to the requirements of existing applicable laws and regulations, the parties shall exercise reasonable efforts to reach an agreement to amend the Agreement or related documents so as to return the parties to the economic position that they would have been in had no such change occurred, or so that both parties share proportionately in the economic detriment of such change. If the parties are unable to reach an agreement to amend the Agreement or related documents, then the party adversely affected by the change shall have the right to bring its dispute to arbitration in accordance with the provisions of Article XII, but in no event will this Agreement terminate prior to resolution of the dispute in arbitration.

 

(c)                                  Standard of Care. The Reinsurer agrees to perform the duties set forth herein in a manner consistent with general life insurance and with a standard of care equal to the standards it uses on similar policies that it directly writes and in accordance with

 

4

 

applicable laws and regulations. The Reinsurer shall maintain all licenses, obtain all regulatory approvals and comply with all regulatory requirements necessary to perform its obligations contemplated under this Agreement.

 

3.7                            Setoff and Recoupment. Any debts or credits, matured or unmatured, regardless of when they arose or were incurred, in favor of or against either the Company or the Reinsurer with respect to this Agreement, are deemed mutual debts or credits, as the case may be, and shall be set off, and only the net balance shall be allowed or paid.

 

ARTICLE IV
 Payments

 

4.1                            Premiums. The Company will pay the Quota Share of Premiums on Reinsured Policies as shown in Schedule A.

 

4.2                            Policy Benefits. The Reinsurer shall pay its Quota Share of all Policy Benefits including death benefits, withdrawals, surrenders, and annuity payouts under Supplementary Contracts on Reinsured Policies as shown in Schedule A.

 

4.3                            Commission and Expense Allowances. The Reinsurer shall pay its Quota Share of all Commission and Expense Allowances on Reinsured Policies as shown in Schedule C.

 

4.4                            Insurance Taxes and Charges. The Reinsurer shall pay its Quota Share of all Insurance Taxes and Charges on Reinsured Policies.

 

4.5                            Payments. All payments made pursuant to this Agreement shall be made in immediately available U.S. funds.

 

ARTICLE V

Reserves

 

5.1                            Reserves. The Reinsurer shall establish and maintain appropriate Reserves with respect to the Reinsured Policies and shall hold its Quota Share of Reserves with respect to the Reinsured Policies hereunder.

 

ARTICLE VI
 Credited Rates/Non-Guaranteed Elements

 

6.1                            Credited Rates/Non-Guaranteed Elements. The Company shall be responsible for determining credited interest rates and other non-guaranteed elements of the Reinsured Policies. The Company may not change the credited interest rate or any other non-guaranteed elements on existing Reinsured Policies without the Reinsurer’s consent, which shall not be unreasonably withheld.

 

5

 

ARTICLE VII
 Administration

 

7.1.                         Policy Administration. The Company shall provide all required, necessary and appropriate claims, administrative and other services with respect to the Reinsured Policies The Company shall use reasonable care in its underwriting, administration and claims practices with respect to the Reinsured Policies and in administering and performing its duties under this Agreement and such practices, administration and performance shall (a) be consistent with the Company’s existing practices, administration and performance and underwriting guidelines; (b) conform with law; (c) not be fraudulent and (d) be no less favorable than those used by the Company with respect to other policies of the Company not reinsured by the Reinsurer. The Company shall not outsource any underwriting functions, administrative functions or claims administration with respect to the Reinsured Policies.

 

7.2                            Record Keeping. Company shall maintain all records and correspondence for services performed by Company hereunder relating to the Reinsured Policies in accordance with industry standards of insurance record keeping. In addition, the records shall be made available for examination, audit, and inspection by any State Insurance Department within whose jurisdiction the Company or the Reinsurer operates. The Company and Reinsurer further agree that in the event of the termination of this Agreement, any such records in the possession of the Reinsurer shall promptly be duplicated and forwarded to the Company unless otherwise instructed.

 

The Company shall establish and maintain an adequate system of internal controls and procedures for financial reporting relating to the Reinsured Policies including associated documentation and shall make such documentation available for examination and inspection by the Reinsurer.

 

7.3                            Indemnification and Control of Defense.

 

(a)                                  The Reinsurer shall have no duty or obligation to defend against any legal action or proceeding brought against the Company. The Reinsurer shall fully cooperate with the Company’s efforts to defend such legal action or proceeding and will make available to the Company and its counsel such evidence relevant to such actions or proceedings as the Reinsurer may have as a result of performing its obligations under this Agreement.

 

(b)                                 The Reinsurer shall not be liable to the Company for actions within the scope of the Reinsurer’s actual authority in performing its obligations to the Company under this Agreement when such performance is in accordance with the standard expressed in Section 3.6(c) “Standard of Care.”

 

(c)                                  The Company shall indemnify and hold harmless and defend the Reinsurer against any costs (including reasonable attorney’s fees) or expenses, damages or judgments whatsoever which the Reinsurer may suffer as a result of the Reinsurer being named as a party defendant in any suit instituted by any persons to whom a Reinsured Policy has been issued, or by any beneficiary, heir, legatee, or personal 

 

6

 

representative of such policyholder, where the Reinsurer’s actions relevant to the suit are within the scope of the Reinsurer’s actual authority in performing its obligations to the Company under this Agreement and were performed in accordance with the standard expressed in Section 3.6(c) “Standard of Care.”

 

(d)                                 The Reinsurer shall indemnify and hold harmless and defend the Company against any costs (including reasonable attorney’s fees) or expenses, damages or judgments whatsoever which the Company may suffer as a result of the Company being named as a party defendant in any suit instituted by any persons to whom a Reinsured Policy has been issued, or by any beneficiary, heir, legatee, or personal representative of such policyholder, where the Reinsurer’s actions relevant to the suit are within its obligations to the Company under this Agreement and were not performed in accordance with the standard expressed in Section 3.6(c) “Standard of Care.”

 

(e)                                  Any party entitled to indemnification under this Agreement shall (1) give prompt notice to the party from whom indemnification is sought of any claim with respect to which it seeks indemnification; (2) permit such indemnifying party to assume and control defense of such claim with counsel reasonably satisfactory to the indemnified party; provided, however, that any party entitled to indemnification hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such separate counsel shall be paid by the person employing separate counsel unless (a) the indemnifying party has agreed to pay such fees and expenses or (b) the indemnifying party shall have failed to assume the defense of such claim and to employ counsel reasonably satisfactory to such party. No indemnifying party shall be subject to any liability for any settlement made without its consent except where the indemnifying party has failed to assume the defense of such claim and to employ counsel reasonably satisfactory to the indemnified party. An indemnifying party who elects not to assume the defense of a claim will not be obligated to pay the fees and expenses of more than one counsel at any one time for all parties indemnified by such indemnifying party with respect to such claim, which counsel shall be designated in writing by the indemnified party and shall be reasonably acceptable to the indemnifying party.

 

ARTICLE VIII
 Accounting and Settlement

 

8.1                            Insurance Accounting. The Company shall maintain separate books of account with respect to any Reinsured Policy, setting forth the data required in Schedules B and D.

 

8.2                            Monthly Accounting Reports. Within eight (8) Business Days following the end of each Monthly Accounting Period, the Company shall supply the Reinsurer with a Monthly Accounting Report with the information as shown in Schedule B. Within fifteen (15) calendar days following the end of each calendar quarter, the Company shall supply the Reinsurer with a Quarterly Accounting Report with the information shown in Schedule D.

 

7

 

The Company will supply additional financial information, as reasonably needed, for the Reinsurer to comply with changes in Statutory, GAAP, and SEC reporting and disclosure requirements that may occur subsequent to the inception of this Agreement.

 

8.3                            Settlements. On or before the 15th day of each month, the Company will determine an estimated Settlement Amount for that month in accordance with Schedule B. If the estimated Settlement Amount is positive, the Company will pay that amount to the Reinsurer. If the estimated Settlement Amount is negative, the Reinsurer will pay that amount to the Company. Payments of the estimated Settlement Amount shall be due by the fifteenth (15th) Calendar Day of each month.

 

Within ten (10) Business Days following the end of each Monthly Accounting Period, the Company or Reinsurer, as the case may be, shall pay the difference between the final Settlement Amount as reported on the Monthly Accounting Report and the estimated Settlement Amount previously paid for the applicable Monthly Accounting Period.

 

If any estimated or final monthly Settlement Amount payment is not paid by the due date, interest shall accumulate at the Accrual Rate from the due date of the payment until such time that the Settlement Amount is paid. If the estimated Settlement Amount payment for any month is not within 25% of the final Settlement Amount payment, interest shall accrue on the difference between the final Settlement Amount payment and the estimated Settlement Amount payment at the Accrual Rate from the due date of the estimated Settlement Amount payment until such time that the final Settlement Amount is paid.

 

8.4                            Reconciliation. Each party shall have the right to review all individual components of transactions reflected in the Monthly Accounting Reports, and to request adjustments, as appropriate. Any amount due either party in connection with such adjustment shall be paid within ten (10) Business Days of the receipt of notice that additional amounts are due.

 

8.5                            Interest Payments. Payment due to either the Reinsurer or the Company shall accrue interest at the Accrual Rate if unpaid by the due date.

 

ARTICLE IX
 Term and Termination

 

9.1                            Term and Duration. Subject to the provisions of Sections 9.3, 9.4, 9.5, 9.6 and 9.7, this Agreement shall be unlimited as to its duration.

 

9.2                            Reinsurer’s Liability. The liability of the Reinsurer with respect to a Reinsured Policy shall terminate on the date the liability of the Company on such Reinsured Policy is terminated.

 

9.3                            Termination. Should Reinsurer at any time:

 

(a)             become insolvent;

(b)             file a petition in bankruptcy;

(c)             go into liquidation or rehabilitation;

(d)             have a receiver appointed; or

 

8

 

(e)             have its Company Action Level Risk Based Capital ratio as defined by the NAIC drop below 150%,

 

the Company shall have the right to terminate this Agreement immediately upon notice to the Reinsurer.

 

9.4                            Termination Due to Nonpayment. Either party may terminate this Agreement if the other party fails to pay, when due, any amounts due under this Agreement provided that the delinquent party has been given at least twenty (20) Business Days advance written notice of its intent to terminate for that reason. Either party may avoid termination pursuant to this Section 9.4 by paying all amounts that are delinquent and then due on or before the date upon which the Agreement would have terminated in accordance with the notice from the other party. The other party shall provide written notice to the curing party that the default has been adequately cured.

 

9.5                            Termination for Material Breach. In addition to all other rights and remedies, either party may terminate this Agreement by providing the other party with a minimum of thirty (30) calendar days prior written notice in the event the other party commits a material breach of any provision of the Agreement. Said notice must specify the nature of said material breach. The breaching party shall have twenty (20) Business Days from the date of the breaching party’s receipt of the foregoing notice to cure said material breach to the reasonable satisfaction of the non-breaching party. If the breach is cured, the other party shall provide written notice to the curing party that the breach has been adequately cured. In the event the breaching party fails to cure the material breach within said twenty (20) Business Day period, then at the option of the non-breaching party and upon notice, this Agreement will terminate upon expiration of the thirty (30) day notice period. Notwithstanding the foregoing, the parties shall cooperate with each other to affect a cure of any breach of the terms of this Agreement.

 

9.6                            Termination by Reinsurer. The Reinsurer has the right to terminate this agreement with respect to new business at any time by giving thirty (30) calendar days written notice to the Company.

 

9.7                            Termination by the Company. The Company has the right to terminate this agreement with respect to new business at any time by giving thirty (30) calendar days written notice to the Reinsurer. The Company has the right to recapture this business after a period of 10 years. If the Company exercises its right to recapture the business, the Reinsurer shall pay to the Company its Quota Share of the Account Values of the Reinsured Policies and the Company will pay a recapture fee to the Reinsurer equal to the Reinsurer’s Quota Share of the unamortized Commission and Expense Allowances with the amortization period of the Commission and Expense Allowances corresponding to the initial surrender charge period of each policy form.

 

9

 

ARTICLE X

Payments Upon Termination of Agreement

 

10.1         Payments on Termination.

 

(a)                                  In the event that this Agreement shall be terminated under Sections 9.3, 9.4 or 9.5 a net accounting and settlement as to any balance due under this Agreement shall be undertaken by the parties to this Agreement (the “Terminal Accounting and Settlement”), which calculations shall be performed as of the day that is thirty (30) calendar days from the date that the liability of the Reinsurer shall have finally terminated (the “Terminal Accounting Date”).

 

(b)                                 The Company shall supply the Reinsurer with a final Schedule B as of the Terminal Accounting Date and the Settlement Amount will be paid as due pursuant to Section 8.3.

 

(c)                                  In addition to the final Settlement Amount payment, the Reinsurer shall pay to the Company its Quota Share of the Reserves of the Reinsured Policies.

 

(d)                                 Any payment required under the Terminal Accounting and Settlement by the Company shall be paid by the Company no later than thirty (30) calendar days after the Terminal Accounting Date. Payments made after such time shall accrue interest in accordance with Section 8.5. In the event that the calculation for the payment required under the Terminal Accounting and Settlement cannot be accurately calculated by such date, then an estimate shall be paid, with a supplemental accounting being made when the accurate information shall become available.

 

10.2                           Supplemental Accounting. In the event that, subsequent to the Terminal Accounting and Settlement an adjustment is made with respect to any amount taken into account in the Terminal Accounting and Settlement, a supplemental accounting shall be made. Any net amount owed to the Reinsurer or the Company by reason of such supplemental accounting, plus any interest due accumulated at the Accrual Rate to the date of payment, shall be paid promptly upon the completion of such supplemental accounting.

 

ARTICLE XI

Insolvency

 

11.1                      Payments. In the event of the insolvency of the Company, payments due the Company on all reinsurance made, ceded, renewed or otherwise becoming effective under this Agreement shall be payable by the Reinsurer directly to the Company or to its liquidator, receiver, or statutory successor on the basis of the liability of the Company under Reinsured Policies without diminution because of the insolvency of the Company, or because the conservator, liquidator, or statutory successor has failed to pay all or a portion of any claims.

 

11.2                      Executory Contract. It is expressly understood that this Agreement is an executory contract as long as both parties are required to perform under this Agreement. On the insolvency of

 

10

 

the Reinsurer, if this Agreement is not confirmed by the Reinsurer and given status as an “Administrative Expense”, then the Company may terminate for nonperformance without additional payment other than those required under Section 10.1.

 

ARTICLE XII

Dispute Resolution

 

12.1                           Dispute Resolution. If a dispute, controversy, or claim arises out of or relates to this Agreement, its termination or non-renewal, or the alleged breach thereof, and if said dispute cannot be settled through direct discussions, the parties agree to first endeavor to settle the dispute in an amicable manner by mediation administered by the American Arbitration Association (“AAA”) under its Commercial Mediation Rules, before resorting to arbitration. If the matter has not been resolved pursuant to mediation within thirty (30) calendar days of the commencement of such mediation (which period may be extended by mutual agreement in writing), then any unresolved dispute, controversy, or claim arising out of or relating to this Agreement, its termination or non-renewal, or the breach thereof, shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the AAA, and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The arbitration shall be conducted by a sole arbitrator or, at the election of either party, before a panel of three arbitrators. Selection of the arbitrator(s) shall be in accordance with the Commercial Arbitration Rules of the AAA. The arbitrator(s) shall allow each party to conduct limited relevant discovery. The arbitrator(s) shall have no authority to award punitive damages or any damages not measured by the prevailing party’s actual damages, and may not, in any event, make any ruling, finding or award that does not conform to the terms and conditions of this Agreement and applicable state and federal laws. All fees and expenses of arbitration shall be borne by the parties equally. However, each party shall bear the expense of its own counsel, experts, witnesses, and preparation and presentation of the arbitration matter. Any such arbitration shall be conducted in West Des Moines, Iowa.

 

ARTICLE XIII
 DAC Tax

 

13.1         Party. The term “party” will refer to either contracting company as appropriate.

 

13.2                           Other Terms. The terms “Net Positive Consideration”, “Specified Policy Acquisition Expenses” and “General Deductions Limitation” used in this Article are defined by reference to Regulation Section 1.848-2 and Code Section 848.

 

13.3                      DAC Tax Election. The parties to this Agreement make the election set forth below pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations issued under Section 848 of the Internal Revenue Code of 1986, as amended (the “Code”). This election shall be effective for taxable year 2010 and for all subsequent taxable years for which this Agreement remains in effect.

 

11

 

(a)                                  The party with the Net Positive Consideration for this Agreement for each taxable year will capitalize Specified Policy Acquisition Expenses with respect to this Agreement without regard to the General Deductions Limitation of Code Section 848(c)(1).

 

(b)                              Both parties agree to exchange information pertaining to the amount of net consideration under this Agreement each year, or as otherwise required by the Internal Revenue Service, to ensure consistency.

 

(c)                                  The Company will submit a schedule to the Reinsurer by May 1 of each year with its calculation of the net consideration for the preceding calendar year. This schedule will be accompanied by a statement signed by an officer of the Company attesting to the calculation contained in said schedule. The Reinsurer may contest such calculation by providing an alternative calculation to the Company in writing within thirty (30) calendar days of the Reinsurer’s receipt of the Company’s calculation.

 

(d)                                 If the Reinsurer contests the Company’s calculation, the parties will act in good faith to reach an agreement as to the correct amount within thirty (30) calendar days of the date that the Company receives the Reinsurer’s alternative calculation. If the parties reach an agreement on the net consideration calculation, each party will report the agreed upon amount in its income tax return for the preceding calendar year. If the parties are unable to reach an agreement on the amount of net consideration, then the dispute shall be resolved pursuant to Article XII of this Agreement. If Reinsurer does not contest the Company’s calculation the parties will utilize the calculation provided by the Company for reporting purposes in their respective income tax returns for the preceding year.

 

ARTICLE XIV

Miscellaneous Provisions

 

14.1                           Headings and Schedules. Headings used herein are not a part of this Agreement or related documents and shall not affect the terms hereof. The attached Schedules A, B, C, and D are a part of this Agreement.

 

14.2                           Notices. All notices and communications hereunder shall be in writing and shall become effective when received. Any written notice shall be sent by either certified or registered mail, return receipt requested, or overnight delivery service (providing for delivery receipt) or delivered by hand. All notices or communications under this Agreement shall be addressed as follows:

 

12

 

If to the Company:

 

American Equity Investment Life Insurance Company

6000 Westown Parkway

West Des Moines, IA 50266

Attention: John Matovina

 

If to the Reinsurer:

 

Eagle Life Insurance Company

6000 Westown Parkway

West Des Moines IA 50266

Attention: Marla Lacey

 

14.3                           Successors and Assigns. This Agreement and related documents cannot be assigned by either party without the prior written consent of the other and is subject to the approval of the Insurance Commissioner for the State of Iowa. The provisions of this Agreement and related documents shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successor and assigns as permitted herein. The Reinsurer shall retain its Quota Share of the risks under this Agreement without the benefit of reinsurance.

 

14.4                          Execution in Counterparts. This Agreement and related documents may be executed by the parties hereto in any number of counterparts, and by each of the parties hereto in separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

14.5                           Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto. This Agreement supersedes all prior discussions, negotiations, understandings, commitments and agreements with respect to the subject matter hereof. Any amendment or modification of this Agreement will not be effective unless made in writing and signed by the parties hereto, and is subject to the approval of the Insurance Commissioner for the State of Iowa.

 

14.6                           Regulatory Approval of Amendments. When and if, under insurance, public health or other applicable laws or regulations, the approval of any amendment to this Agreement or related documents by one or more federal, state or local regulatory authorities is required, the amendment shall not take effect unless and until all such necessary approvals have been received by the Company.

 

14.7                           Governing Law. This Agreement and related documents shall be governed by and construed in accordance with the laws of the State of Iowa.

 

14.8                           Waivers and Remedies. The waiver by any of the parties of any other party’s prompt and complete performance or breach or violation, of any provisions of this Agreement and related documents shall not operate or be construed as a waiver of any subsequent breach or violation, and the waiver by any of the parties to exercise any right or remedy which it

 

13

 

may possess hereunder shall not operate or be construed as a bar to the exercise of such right or remedy by such party upon the occurrence of any subsequent breach or violation.

 

14.9                           Severability. In the event any section or provision of this Agreement or related documents is found to be void and unenforceable by a court of competent jurisdiction, the remaining sections and provisions of this Agreement or related documents shall nevertheless be binding upon the parties with the same force and effect as though the void or unenforceable part had not been severed or deleted.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representative.

 

	
EAGLE 
   LIFE INSURANCE COMPANY
    	
AMERICAN EQUITY INVESTMENT 
   LIFE INSURANCE COMPANY
    
	
 
    	
 
    
	
By:
    	
/s/ Debra Richardson
    	
 
    	
By:
    	
/s/ John Matovina
    
	
Name:
    	
Debra Richardson
    	
 
    	
Name:
    	
John Matovina
    
	
Title:
    	
Executive Vice President
    	
 
    	
Title:
    	
Chief Financial Officer
    
	
Date:
    	
01-27-11
    	
 
    	
Date:
    	
01-27-11
    

 

14

 

SCHEDULE A

 

CONTRACTS AND RISKS REINSURED

 

Company agrees to cede to the Reinsurer, and the Reinsurer agrees to accept from the Company the Quota Share reinsurance participation for the risks as scheduled below:

 

The Quota Share will equal 100%.

 

Reinsured Contracts

 

Premier Eagle 12 (FXRG-2-09) Effective date of this Schedule: Policies issued on or after January 1, 2010.

 

State variations of the listed products are included under this agreement

 

15

 

SCHEDULE B

 

MONTHLY ACCOUNTING REPORT

 

(For qualified and non-qualified business, separately)

(All amounts are net of reinsurance to other reinsurers)

 

	
I.
    	
Premiums
    	
 
    
	
II.
    	
Policy Benefits
    	
 
    
	
Ill.
    	
Commission Allowance
    	
 
    
	
IV.
    	
Acquisition Expense Allowance
    	
 
    
	
V.
    	
Maintenance Expense Allowance
    	
 
    
	
VI.
    	
Insurance Taxes and Charges
    	
 
    
	
VII.
    	
Net (I - 11 - Ill - IV — V — VI)
    	
 
    
	
VIII.
    	
Reinsured %
    	
 
    
	
IX.
    	
Settlement Amount (VII times VIII)
    	
 
    

 

16

 

SCHEDULE C

 

COMMISSION AND EXPENSE ALLOWANCES FOR REINSURED POLICIES

 

The Reinsurer will grant to the Company the Quota Share of the following commission and expense allowances on the Reinsured Policies:

 

Expense Allowances

 

1.        Per policy Expense Allowances

	
Acquisition Expense
    	
 
    	
$
    	
250
    	
 
    
	
Maintenance Expense (Annual Amount)
    	
 
    	
$
    	
48
    	
 
    

 

The Maintenance Expense Allowance will be calculated on a monthly basis as follows:

 

(C/12) * (A + B)/2 where

 

A is the number of policies inforce as of the beginning of each month, and

B is the number of policies inforce as of the end of the each month, and

C is the annual per policy expense allowance.

 

2.        Marketing Expense Allowance

 

The Marketing Expense Allowance shall be equal to one percent (1.00%) of Premiums.

 

Commission Allowances

 

The commission allowance shall be an amount as determined by the Company based upon its published commission schedules, and shall be based on the commissions actually paid.

 

17

 

SCHEDULE D

 

QUARTERLY ACCOUNTING REPORT

 

(All amounts are net of reinsurance to other reinsurers)

 

	
I
    	
Beginning Account Value
    	
 
    
	
II.
    	
Premiums
    	
 
    
	
Ill.
    	
Interest Credited
    	
 
    
	
IV.
    	
Policy Benefits
    	
 
    
	
V.
    	
Surrender Charges
    	
 
    
	
VI.
    	
Ending Account Value  
    (I + II + Ill - IV — V)
    	
 
    
	
VII.
    	
Ending Policy Count
    	
 
    
	
VIII.
    	
Ending Reserves
    	
 
    
	
IX.
    	
Ending Cash Surrender Values
    	
 
    

 

18

 

AMENDMENT NO. 1 TO COINSURANCE AGREEMENT

 

This is Amendment No. 1 to that certain Coinsurance Agreement, effective July 1, 2009, (“Effective Date”) previously entered into by and between Eagle Life Insurance Company, a corporation organized under the laws of the State of Iowa (“Reinsurer”) and American Equity Investment Life Insurance Company, a company organized under the laws of the State of Iowa (“Company”).

 

WHEREAS, pursuant to the terms of the Coinsurance Agreement referenced above, the Company and the Reinsurer entered into a reinsurance transaction whereby the Company agreed to cede to the Reinsurer, and the Reinsurer agreed to indemnify the Company for the Quota Share of the risks under certain Policies identified in Schedule A to said Coinsurance Agreement as of the Effective Date; and

 

WHEREAS, the Parties have determined it is in their mutual best interests to amend the Coinsurance Agreement with respect to certain terms and conditions.

 

NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

 

1.          The Parties hereby waive any requirement of prior notice with respect to terminating the Agreement as to new business, and agree that no new business with respect to the Policies identified in Schedule A will be ceded after September 30, 2010.

2.          The Parties hereby agree to amend the recapture provisions of the Agreement so that the Company will recapture, on October 1, 2010, the Policies ceded pursuant to the Agreement as of September 30, 2010.

3.          The Parties agree that the Reinsurer shall pay to the Company the sum of $85,843,325 which represents the net amount due from the Reinsurer pursuant to Section 9.7 of the Agreement.

 

Signed and dated as set forth below with an Effective Date of October 1, 2010.

 

	
EAGLE LIFE INSURANCE COMPANY
    	
AMERICAN EQUITY INVESTMENT
   LIFE INSURANCE COMPANY
    
	
 
    	
 
    
	
By:
    	
/s/ Debra J. Richardson
    	
 
    	
By:
    	
/s/ John M. Matovina
    
	
Name:
    	
Debra J. Richardson
    	
 
    	
Name:
    	
John M. Matovina
    
	
Title:
    	
Executive Vice President
    	
Title:
    	
Chief Financial Officer
    
	
Date:
    	
December 29, 2010
    	
Date:
    	
December 29, 2010

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