The first paragraph in the “Risk Factors – Impact of Partial Surrenders – Prior to Maturity” section is deleted in its entirety and replaced as follows:
If You take a partial surrender before the Segment Maturity Date, the Investment Base will be reduced proportionally based on the percentage of Segment Value that is withdrawn. In particular, if the Segment Value is lower than the Investment Base at the time of a partial surrender, which would generally be dependent upon the performance of the Index in addition to other factors (See “Valuing Your Investment – Indexed Account(s) Value” for more information), then the Investment Base is reduced by an amount that is more than the dollar amount withdrawn. Reductions to the Investment Base will negatively impact the Segment Value for the remainder of the Segment duration and will result in a lower Segment Value on the Segment Maturity Date. On the Segment Maturity Date, the Segment Value is calculated first and then any partial surrenders will reduce the Investment Base for new Segments by the dollar amount withdrawn.
The Annuity Contract
“The Annuity Contract – Contract Fees and Charges: Fees and Transaction Costs” section is deleted in its entirety and replaced with the following:
There is no annual contract fee.
For the Annual Fee Indexed Accounts, there is a fee deducted from the Index rate of return (whether positive or negative). The Annual Fee is multiplied by the number of years in the Segment to determine the fee that is deducted on the Segment Maturity Date.
Transaction costs which We may incur to purchase or sell the hypothetical portfolio, as measured by the proxy value, will generally decrease the Segment Value the day after the Segment start date. These transaction costs are included in the proxy value used to determine the Segment Value and will generally decrease over the duration of the Segment and if a Segment is held to maturity, there are no transaction costs. On the Segment Maturity Date, the Segment Value will be based solely on the index returns and the applicable cap, upside participation rate, buffer or floor, and for the Annual Fee Indexed Accounts only, the applicable fee.
Returns of the iShares U.S. Real Estate ETF are reduced by any underlying fund fees or expenses.
The third paragraph of the “The Annuity Contract – Owner” section in is deleted in its entirety and replaced as follows:
The Owner may be a non-natural person (e.g. irrevocable trust or corporation) or a revocable trust if We agree. If the Owner or any joint Owner is a non-natural person or a revocable trust, the Annuitant will be deemed to be the Owner for any provision or benefit using the age or life of the Owner. When the contract is owned by a revocable trust or irrevocable grantor trust, the annuitant(s) selected must be the grantor(s) of the trust to assure compliance with Section 72(s) of the Code. Any provisions based on age will be based on the age of the oldest Annuitant. These include Payments to Beneficiaries, Purchase Payments and Surrender provisions. If the Owner or any joint Owner is a non-natural person or revocable trust, the Annuitant may not be changed, and a Contingent Annuitant may not be named.
Investment Options
The first paragraph of the “Investment Options – Indexed Accounts: Discontinuation and Substitution of Indexes and Indexed Accounts” section is deleted in its entirety and replaced as follows:
We reserve the right to add, remove or substitute an Index at any time if an Index is discontinued by the Index provider or We no longer have the right to use the Index, there is a substantial change in the calculation of the Index, hedging instruments become difficult to acquire or the cost of hedging becomes excessive. If We discontinue use of an index (without substituting an alternative index), We will end the Segment as of the date of the discontinuation and the Segment Value on that date will not change (unless you take a partial surrender). On the next Contract Anniversary, You may transfer to the Fixed Account or any available Indexed Account. If We do not receive instructions from You, the value will be transferred to the Fixed Account.
Transfers
The fourth paragraph of the “Transfers” section is deleted in its entirety and replaced as follows:
We also reserve the right to limit in Our sole discretion how the Contract Value can be allocated among the Fixed and available Indexed Accounts, such as requiring a minimum amount in each Segment or limiting the number of open Segments. Currently, there are no limitations in place.
