GOLDEN AMERICAN MINIMUM GURANTEED
LIFE INSURANCE COMPANY ACCUMULATION BENEFIT RIDER
Golden American is a stock company domiciled in Delaware.
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GOLDEN AMERICAN LIFE INSURANCE COMPANY
(HEREINAFTER CALLED WE, US AND OUR)
The Contract to which this Rider is attached is hereby modified by the
provisions of this Rider. This Rider's provisions control where there is a
conflict between this Rider and the Contract.
Where used in this Rider, the term Contract shall mean Certificate when this
Rider is attached to a Certificate. This Rider is effective as of the Contract
Date unless a different date, the Rider Date, is stated below. The term Credit
is as defined in the Contract. If not defined in the Contract to which this
Rider is attached, the Credit shall be zero.
MINIMUM GUARANTEED ACCUMULATION BENEFIT
This Rider provides a Minimum Guaranteed Accumulation Benefit ("MGAB") on the
Benefit Date. The Benefit Date is shown on the Schedule Page. On the Benefit
Date, if this Rider is in effect, the MGAB is added to the Contract's
Accumulation Value. Immediately thereafter, this Rider will terminate.
The MGAB is equal to the greater of: (1) the MGAB Base on the Benefit Date less
the Accumulation Value of the Contract on the Benefit Date and (2) zero.
MGAB BASE
If this Rider is effective as of the Contract Date, the initial MGAB Base is
equal to the initial premium paid for the Contract plus any Credits. If this
Rider is added to a Contract after the Contract Date, the initial MGAB Base
shall be equal to the Accumulation Value on the Rider Date. Thereafter, the MGAB
Base is increased by Eligible Premiums paid and Credits thereon, and reduced by
any Prorata Partial Withdrawal Adjustments, reduced by transfer Adjustments, and
accumulated at the MGAB Rate.
Eligible premium, and any applicable Credits, are premiums added to the Contract
within [2] years after the Rider Date. Premium paid more than [two] years after
the Rider Date will not be included in the calculation of the MGAB Base.
The MGAB Base is calculated separately for the Accumulation Value allocated
between the Special Funds and non-Special Funds. The MGAB Base for determining
the MGAB on the Benefit Date equals the sum of: (1) the lesser of the MGAB Base
allocated to Special Funds and the Accumulation Value in Special Funds and (2)
the MGAB Base for non-Special Funds.
MGAB RATE
The MGAB Rate is equal to the rate stated on the Schedule Page for this Rider.
SPECIAL FUNDS
Where used in this Rider the Special Funds, if any, are listed on the Schedule
Page. The Company reserves the right to classify newly available divisions as
Special Funds from the date of their availability to the Owner. The Company may
reclassify an existing division as a Special Fund or remove such designation.
Such reclassification shall be made with 30 days notice to Contract Owners, and
will apply to amounts transferred or otherwise added to such division after the
date of change.
PRORATA PARTIAL WITHDRAWAL ADJUSTMENT
The MGAB Base and MGAB Charge Base will be reduced by Prorata Partial Withdrawal
Adjustments each time a partial withdrawal is made. The Prorata Partial
Withdrawal Adjustment is equal to (1) divided by (2), multiplied by (3), where:
(1) is the Accumulation Value withdrawn; (2) is the Accumulation Value
immediately prior to withdrawal; and (3) is the amount of MGAB Base or MGAB
Charge Base (as appropriate) immediately prior to the withdrawal. Separate
adjustments will apply to Special and non-Special Funds.
TRANSFER ADJUSTMENT
The MGAB Base and MGAB Charge Base will be reduced for each transfer within
[three] years before the Benefit Date. The Transfer Adjustment is equal to (1)
divided by (2), multiplied by (3), where: (1) is the Accumulation Value
transferred; (2) is the Accumulation Value immediately prior to a transfer; and
(3) is the amount of MGAB Base or MGAB Charge Base (as appropriate) immediately
prior to the transfer. Special adjustments will apply to Special and non-Special
Funds.
APPLYING THE MGAB
On the Benefit Date the MGAB is calculated and added to the Accumulation Value.
Allocation of the benefit to the divisions of the Variable Separate Account is
done proportionately based on the amount of Accumulation Value invested in each
division on the date the MGAB is applied. If no part of the Contract's
Accumulation Value is invested in the Variable Separate Account, the MGAB will
be allocated to the Liquid Asset Division, or its successor, unless otherwise
directed by you prior to the Benefit Date. Once the MGAB has been applied, the
Contract's Accumulation Value will reflect the MGAB and it shall be subject to
all rights available to you. The benefit is not treated as premium in the
determination of any Contract or Rider benefits, and you will receive no Credit.
MGAB WAITING PERIOD
The Waiting Period is the period from the Rider Date to the Benefit Date. During
the Waiting Period, Rider Charges apply. This Rider may not be cancelled during
the Waiting Period, except as provided in this Rider.
MGAB CHARGES
Charges for this Rider will be deducted from the Contract's Accumulation Value.
The rate and frequency of deduction of charges are stated on the Schedule Page.
Deduction dates are measured from the Contract Date. The charge is a percentage
of the MGAB Charge Base, as of the deduction date. It is deducted in arrears
from the portion of Accumulation Value allocated to the Variable Separate
Account in proportion to the Accumulation Value in each division. If there is
insufficient Accumulation Value in the separate account, charges will be
deducted from the Fixed Division nearest maturity. An MVA adjustment may be
applied to charges deducted from the Fixed Division. We may charge less than the
maximum. The maximum charge is stated on the Schedule Page. No charges will be
deducted after the Benefit Date.
If the Contract to which the Rider is attached is terminated by surrender,
cancellation or application of the Contract's value to an Income Benefit, the
Rider charge for the current period will be deducted from the Accumulation Value
prior to termination of the Contract. Charges will be calculated using the MGAB
Charge Base immediately prior to termination.
MGAB CHARGE BASE
The MGAB Charge Base is equal to the initial MGAB Base, plus Eligible Premiums
paid, plus any credits there on, reduced by Prorata Partial Withdrawal and
Transfer Adjustments. The MGAB Charge Base is calculated separately for
Accumulation Value allocated to Special Funds and non-Special Funds.
TRANSFERS
Net transfers from Special to non-Special Funds will reduce the MGAB Base and
MGAB Charge Base allocated to Special Funds on a pro-rata basis. If such
transfer is made more than 3 years before the Benefit Date, there will be a
corresponding increase in the MGAB Base and MGAB Charge Base for non-Special
Funds. The amount of such increase will equal the lesser of the reduction in
MGAB Base and MGAB Charge Base allocated to Special Funds and the net
Accumulation Value transferred.
Net transfers from non-Special Funds will reduce the MGAB Base and MGAB Charge
Base allocated to the non-Special Funds on a prorata basis. If the transfer is
made more than 3 years before the Benefit Date, there will be a corresponding
increase in the MGAB Base and MGAB Charge Base for Special Funds. If applicable,
the resulting increase in the MGAB Base and MGAB Charge Base allocated to
Special Funds will equal the reduction in the MGAB Base and MGAB Charge Base
allocated to non-Special Funds, respectively.
CANCELLATION OF RIDER
If an Option to Cancel Date is shown in the schedule, the Owner may cancel this
Rider on the Cancel Date. A written request to cancel must be received by the
Company in the 30 day period prior to the Cancel Date. Upon cancellation of this
Rider, no further charges for this Rider will be deducted and all rights under
this Rider shall cease. No Rider benefits will be paid at cancellation nor will
Rider Charges be refunded. The Company may make available other Rider
Cancellation dates.
RIDER TERMINATION
This Rider will terminate immediately upon occurrence of any of the following:
1. If the Contract to which this Rider is attached terminates;
2. If you die, unless the Contract is continued on the life of your
spouse, in which case the Rider will continue with your surviving
spouse as Owner;
3. If you are not a natural person and the Annuitant dies;
4. If the ownership of this Contract changes and the new Owner is other
than the spouse of the previous Owner.
5. If the Accumulation Value is insufficient to cover the MGAB Charge
deduction.
This Rider has no surrender value or other non-forfeiture benefits upon
termination. Prior to the Benefit Date this Rider does not provide any benefits.
Rider Date: _________________________
(if other than Contract Date)
Signed: /s/ Barnett Chernow
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Barnett Chernow