GOLDEN AMERICAN EXCLUDED FUNDS AND
LIFE INSURANCE COMPANY TRANSFER ENDORSEMENT
Golden American is a stock company domiciled in Delaware.
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On the Endorsement Effective Date, the provisions of the Contract to which this
endorsement is attached are amended as follows. If no Endorsement Effective Date
is shown, the Endorsement Effective Date is the same as the Contract Date. Where
used in this Endorsement, the term Contract shall include any Certificate to
which this Endorsement is attached. The terms used in this Endorsement shall be
interpreted to apply only to the portion of the Contract values allocated to
Excluded Funds.
When the Owner elects to invest in an Excluded Fund, as defined herein,
components of the Death Benefit of the Contract that represent the portion of
the Accumulation Value invested in Excluded Funds will be calculated in
accordance with this endorsement. When an investment is made in an Excluded
Fund, any guarantee of the Contract regarding a Death Benefit in excess of the
Accumulation Value (except Cash Surrender Value) will not apply to amounts
invested in Excluded Funds and may be permanently affected by such investment
regardless of any future allocation of Accumulation Value.
DEATH BENEFIT
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For each Death Benefit component described in the Contract, except Cash
Surrender Value where applicable, the portion that represents Excluded Funds
will equal the Accumulation Value allocated to Excluded Funds.
For purposes of allocating each such Death Benefit component between Excluded
Funds and non-Excluded Funds, the following rules apply. For each component of
Death Benefit described in the Contract, a corresponding Excluded Funds Death
Benefit Base is maintained. Each Excluded Funds Death Benefit Base has the same
definition as the Death Benefit component of the Contract with respect to
premiums, credits, and withdrawals, except that it applies only to investment in
Excluded Funds.
TRANSFERS
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Transfers from Excluded Funds to non-Excluded Funds will reduce all Death
Benefit component(s) for Excluded Funds on a prorata basis. Except with respect
to any Maximum Guaranteed Death Benefit, the resulting increase in each
non-Excluded Funds Death Benefit Base will equal the lesser of the reduction in
the Death Benefit component for Excluded Funds and the net Accumulation Value
transferred. With respect to the Maximum Guaranteed Death Benefit, where
applicable, the resulting increase in the non-Excluded Funds Maximum Guaranteed
Death Benefit Base will equal the reduction in the Maximum Guaranteed Death
Benefit for Excluded Funds.
Transfers from non-Excluded Funds to Excluded Funds will reduce each
non-Excluded Funds Death Benefit Base on a prorata basis. The resulting increase
in the Death Benefit component(s) for Excluded Funds will equal the reduction in
non-Excluded Funds Death Benefit Base.
Adjustments for transfers involving Excluded Funds and Special Funds, where
applicable, will be calculated separately from adjustments for transfers
involving Excluded Funds and non-Special Funds. Special Funds, if any, are
described in the Contract.
EXCLUDED FUNDS
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Where used in this Endorsement, as of the Endorsement Date, Excluded Funds are
as listed on the Schedule. We may add newly available divisions as Excluded
Funds. We may also reclassify an existing division as a Excluded Fund or remove
such designation upon 30 days notice to you. Such re-classification will apply
to amounts transferred or otherwise added to such division after the date of
change.
RESTRICTED FUNDS
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Restricted Funds are subject to limits as to amount which may be invested or
transferred into such divisions. The designation of a division as a Restricted
Fund may be changed upon 30 days notice to the Owner with regard to future
transfers and premium payments into such division. When a new division is made
available it may be designated as a Restricted Fund. If so designated the rules
regarding its restrictions will be sent to the Owner. Also listed below are the
total Contract limits for Restricted Funds.
THRESHOLDS
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MAXIMUM
ALLOCATION % OF MAXIMUM
ACCUMULATION VALUE PREMIUM % DOLLAR CAP
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Contract Limits 30% 99.999% $9,999,999
THRESHOLDS
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Each Restricted Fund has one or more thresholds at which point no further
amounts may be allocated to that division. Compliance with a threshold is
verified whenever there is a transaction initiated which is subject to such
threshold (premium payments, transfers, withdrawals). A threshold is applied to
the total Accumulation Value of each Restricted Fund. Thresholds may be changed
by the Company for new premiums, transfers or withdrawals by Restricted Fund
upon 30 day notice.
DOLLAR CAP
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The Dollar cap is the dollar amount at which no further Accumulation Value may
be added to Restricted Funds.
PREMIUM THRESHOLD
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The threshold for premium by Restricted Fund limits the amount of any premium
which may be allocated to that division. Should a request for allocation to a
Restricted Fund exceed the limit in effect for that division or for the
Contract, any excess over that amount shall be allocated prorata to any
non-Restricted Fund(s) in which the Contract is then invested. Should the
Contract not be invested in other non-Restricted Funds, the excess will be
invested in the Specially Designated Division, unless we receive written
instructions to do otherwise. Premium allocations must also satisfy the
Allocation Threshold.
ALLOCATION THRESHOLD
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Allocations into a Restricted Fund are limited to that amount such that the
Accumulation Value in that Restricted Fund after such allocation does not exceed
the threshold for that division and does not cause the Contract's total limit on
allocation to Restricted Funds to be exceeded. If the amount of an allocation
would cause either limit to be exceeded, the allocation will only be executed to
the extent the lower limit would allow.
Allocations from a Restricted Fund will be allowed even if the amount remaining
in the Restricted Fund after an allocation exceeds the Allocation Threshold. If
a program of allocations over time is authorized by us, verification of the
threshold will be performed at the initiation of such program. If such program
is modified at a later date, a testing of thresholds will be done at that time.
THRESHOLDS - EFFECT ON WITHDRAWALS
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If a withdrawal is requested while any Accumulation Value is allocated to
Restricted Funds and the Allocation Threshold percentage is currently exceeded,
the percentage for funds invested in Restricted Funds for the total Contract
after taking into account the withdrawal may not be higher than prior to the
withdrawal. Should the calculated effect of a withdrawal result in the total
Contract threshold being exceeded, the excess portion of the withdrawal will be
processed prorata from all variable divisions.
Systematic withdrawals, while the Contract has investments in Restricted Funds,
if not withdrawn prorata from all divisions, shall be monitored annually to
assure threshold compliance. Should the effect of such withdrawals cause a
Restricted Fund to exceed its threshold, the divisions from which the
withdrawals are processed may be adjusted to assure that the percentage of
Accumulation Value in the Restricted Funds does not increase.
THRESHOLD PROCESSING
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For the purpose of calculating any thresholds, the values for the divisions will
be determined using the prior day's closing index of investment experience.
All other provisions of the Contract to which this Endorsement is attached
remain unchanged.
Endorsement Effective Date:
Signed: /s/ Barnett Chernow
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Barnett Chernow