EX-99.(26)(D)(1) 2 dex9926d1.htm FORM OF SPECIMEN FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY Form of Specimen Flexible Premium Variable Life Insurance Policy

LOGO

   

John Hancock Life Insurance Company of New York

A Stock Company

 

LIFE INSURED

   

[John J. Doe]

POLICY NUMBER

   

[12 345 678]

PLAN NAME

   

[Majestic VCOLIX]

FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY

ADJUSTABLE DEATH BENEFIT

BENEFIT PAYABLE ON LIFE INSURED’S DEATH

FLEXIBLE PREMIUMS PAYABLE TO AGE 121 DURING THE LIFE INSURED’S LIFETIME

NON-PARTICIPATING (NOT ELIGIBLE FOR DIVIDENDS)

Subject to the conditions and provisions of this policy, while the policy is in force, and upon the death of the Life Insured, John Hancock Life Insurance Company of New York (“the Company”) agrees to pay the Insurance Benefit to the beneficiary in a lump sum, and to provide the other benefits, rights, and privileges, if any, of the policy.

The Insurance Benefit is described in Section 6. If the Company makes other plans of payment available other than a lump sum, then a Beneficiary may request written election of any such other plans in lieu of a lump sum.

Your premiums are added to your Policy Value. You may allocate them to one or more of the Investment Accounts and to the Fixed Account, subject to Section 16, and any other applicable provisions of the policy.

The portion of your Policy Value that is in an Investment Account will vary from day to day. The amount is not guaranteed; it may increase or decrease, depending on the investment experience of the underlying Subaccounts for the Investment Accounts that you have chosen.

The portion of your Policy Value that is in the Fixed Account will accumulate, after deductions, at rates of interest we determine. Such rates will not be less than the Fixed Account Annual Rate shown in Section 1.

The amount of the Insurance Benefit, or the duration of the insurance coverage, or both, may be variable or fixed under specified conditions and may increase or decrease as described in Section 6.

READ YOUR POLICY CAREFULLY. It is a contract between you and us.

RIGHT TO RETURN POLICY. If for any reason you are not satisfied with your policy, you may return it for cancellation by delivering or mailing it to us or to the agent who sold it. If this policy does not replace another policy, you may return it within TEN days after receiving it and we will refund in full the payment made. If it replaces another policy, you may return it within SIXTY days after receiving it and we will refund the Policy Value as of the date we receive the policy, plus any charges and deductions taken for the policy. The policy will be void from the beginning.

 

Signed for the Company by:

   

LOGO

    LOGO

 

                09MAJVCOLIX

    MCV0109ANY                

    

                                    Policy Provisions

    

Section

1.   

Policy Specifications

2.   

Table of Rates

3.   

Definitions

4.   

Qualification as Life Insurance

5.   

Total Face Amount

6.   

Insurance Benefit

7.   

Interest On Proceeds

8.   

Premiums

9.   

Grace Period

10.   

Policy Termination

11.   

Reinstatement

12.   

Coverage at and after Age 121

13.   

Policy Value

14.   

Loan Account, Fixed Account, Investment Accounts

15.   

Separate Account and Subaccounts

16.   

Allocations and Transfers

17.   

Loans

18.   

Surrenders and Withdrawals

19.   

Owner and Beneficiary

20.   

Assignment

21.   

Misstatements

22.   

Suicide

23.   

Incontestability

24.   

The Contract

25.   

Right to Postpone Payment of Benefits

26.   

Claims Of Creditors

27.   

Reports To Owner

28.   

How Values Are Computed

29.   

Flexible Factors

 

                2

    NY                

 

1. POLICY SPECIFICATIONS

 

 

Life Insured      [JOHN DOE]    Plan Name     

[Majestic VCOLIX]

Age at Policy Date      [35]    Policy Number     

[12 345 678]

[Sex]      [MALE]    Issue Date     

[January 1, 2009]

Risk Classification     

[Standard] [Non Smoker]

    Policy Date     

[January 1, 2009]

Additional Ratings     

[not applicable]

Owner, Beneficiary     

As designated in the application or subsequently changed

Death Benefit Option at Issue     

[Option 1]

Life Insurance Qualification

Test Elected

     

[Cash Value Accumulation Test]

        Base Face Amount at Issue     

$[500,000]

        Supplemental Face Amount at Issue     

$[600,000]

                 
        Total Face Amount at Issue     

$[1,100,000]

Governing Law     

[New York]

PREMIUMS AT ISSUE
Premium Mode     

[Annual]

           
Planned Premium     

$ [16,947.00 per year]

           
Minimum Initial Premium     

$ [3,728.30]

           

Notice: This policy provides life insurance coverage for the lifetime of the Life Insured if sufficient premiums are paid to provide coverage until the Life Insured reaches Age 121. Premium payments in addition to the Planned Premium shown may need to be made to keep this policy and coverage in force. Keeping the policy and coverage in force will be affected by factors such as: changes in the current Cost of Insurance rates; changes in the Administrative Charge, Base Face Amount Charge, Asset-Based Risk Charge, or Deferred Premium Charge; the amount, timing and frequency of premium payments; the interest rate being credited to the Fixed Account; the investment experience of the Investment Accounts; changes to the Death Benefit Option; changes in the Total Face Amount; loan activity; withdrawals; and deductions for any applicable Supplementary Benefit riders that are attached to, and made a part of, this policy. Also refer to the Grace Period and Policy Termination provisions in Sections 9 and 10.

Additional amounts are not guaranteed and we have the right to change the amount of interest credited to the policy, the amount of cost of insurance and other expense charges deducted under the policy which may require more premium paid than was illustrated or the cash values may be less than those illustrated.

Additional interest will not be credited on the Loan Account.

 

                3

    MCV0309ANY

 

1. POLICY SPECIFICATIONS (continued) – Policy [12 345 678]

 

 

             

SCHEDULE OF SUPPLEMENTAL FACE AMOUNTS

        
                        
     

Supplemental Face Amount At Issue

    $[   600,000]  
     

Maximum Increasing Supplemental Face Amount

    $[1,050,000]  
     

Maximum Total Supplemental Face Amount

    $[1,650,000]  
                        
                                
   

The Supplemental Face Amount will increase at the beginning of each Policy Year for Policy Years 2 to [ XX ] by [ XX.XX ]% of the Total Face Amount that is in effect immediately prior to the beginning of each such Policy Year. The Total Supplemental Face Amount will not exceed the Maximum Total Supplemental Face Amount shown above.

        
                                
                      
                                
   

The Supplemental Face Amount will increase at the beginning of each Policy Year for Policy Years 2 to [ XX ] by $ [XX,XXX.XX ]. The Total Supplemental Face Amount will not exceed the Maximum Total Supplemental Face Amount shown above.

        
                                
         Effective at
    Beginning of    
Policy Year		        Supplemental    
Face Amount
Increases		    Total
    Supplemental    
Face Amount		          
      1    $0    $   600,000       
    2    $  50,000    $   650,000       
    3    $  50,000    $   700,000       
    4    $  75,000    $   775,000       
    5    $  75,000    $   850,000       
    6    $100,000    $   950,000       
    7    $100,000    $1,050,000       
    8    $100,000    $1,150,000       
    9    $150,000    $1,300,000       
    10    $150,000    $1,450,000       
    11    $200,000    $1,650,000       
      12 to 86    $0    $1,650,000       
              
                                  

 

                            3 (continued)

   MCV0309A                            

 

1. POLICY SPECIFICATIONS (continued) – Policy [12 345 678]

 

 

OTHER BENEFITS AND SPECIFICATIONS

[Not Applicable]

 

                3 (continued)

    MCV0309A                

 

1. POLICY SPECIFICATIONS (continued) – Policy [12 345 678]

 

 

MAXIMUM EXPENSE CHARGES

Monthly Deductions: the following charges are deducted every month from the Policy Value

 

Deferred Premium Charge

       

Charge calculated at the end of the first and every subsequent Policy Year in which premiums are paid. Rather than deducting the full charge amount at that time, the charge will be deferred by spreading deductions for it over 10 Policy Years in 120 equal monthly amounts beginning on the next Annual Processing Date. The total monthly deduction for this charge at any time will be the sum of all monthly amounts then being deducted for all applicable charge amounts. The percentages as shown below:

 

Policy Years    Percentages
1 - 20    13%
21+    9%

 

Administrative Charge

     

$15.00

Base Face Amount Charge

     

$[0.3050] per $1000 of Base Face Amount at issue for the first 10 Policy Years.

Cost of Insurance Charge

     

Determined in accordance with Section 13. Maximum monthly rates per $1,000 are shown in Section 2.

Asset-Based Risk Charge

     

Percentage of Investment Accounts deducted monthly as shown below:

 

Policy Years   

Percentage of Investment

Account assets

[1]    [0.08636]%
[2-15]    [0.08636]%
[16+]    [0.08636]%

Other Charges

 

Replacement Fee

       

Charge deducted from the Policy Value if this policy is surrendered during the first 10 Policy Years (the Charge Period) and such surrender is in connection with the purchase of a Replacement Policy. The charge deducted will be equal to the percentage shown below multiplied by the lesser of either the sum of premiums paid during the first Policy Year or the Replacement Fee Calculation Limit shown under the Table of Values of this Section 1.

Charge Period

(Policy Year)

    Percentage   

Charge Period

(Policy Year)

    Percentage
1    [35.00]%    7    [35.00]%
2    [35.00]%    8    [26.25]%
3    [35.00]%    9    [17.50]%
4    [35.00]%    10    [8.75]%
5    [35.00]%    11+    [0.00]%
6    [35.00]%      

Percentages shown are at the beginning of each Policy Year. A proportionate grading percentage applies for other Policy Months.

 

Unscheduled Supplemental

Face Amount Increase

Charge

     

$2.2355 per $1000 of Unscheduled Supplemental Face Amount Increase deducted monthly for 10 Policy Years from the date of increase

Supplementary Benefit rider

charges

     

Charges for applicable riders are shown under Supplementary Benefits of this Section 1.

 

                3A

    MCV03A09A                

 

1. POLICY SPECIFICATIONS (continued) – Policy [12 345 678]

 

 

TABLE OF VALUES

Refer to your policy provisions for details on the terms and values shown in this table.

 

Minimum Total Face Amount

    $ 100,000  

Minimum Base Face Amount

    $   50,000  

Minimum Total Face Amount Decrease

    $   50,000  

Maximum Supplemental Face Amount

   

Allocation Date

   

[10TH day after the Issue Date]  

Fixed Account Annual Rate

    Not less than 3%  

Loan Interest Credited Annual Rate

    3%  

Maximum Loan Interest Charged Annual Rate

   

Policy Years 1-10

    4.00%

Policy Years 11+

    3.25%

Minimum Loan Amount

    $ 500

Minimum Withdrawal Amount

    $ 500

Death Benefit Discount Factor

    1.0024663

Maximum Transfer Fee

(See Section 16 for Transfer Restrictions)

    $25

Fixed Account Maximum Transfer Percentage

    25%

Fixed Account Maximum Transfer Amount

    $2,000

Investment Account Maximum Transfer Amount

    $ 1,000,000

Replacement Fee Calculation Limit

    $[37,283.00]

Maximum Monthly Rates are based on the 2001 Commissioners Standard Ordinary Sex Distinct Aggregate ANB Ultimate Mortality Tables. We have the right to change the Monthly Rate per $1,000 of Net Amount at Risk imposed, never to exceed the maximums shown is Section 2. Such changes may require additional premium payments other than those illustrated and may result in policy values being less than those illustrated.

 

                3B

    MCV03B09ANY                

 

2. TABLE OF RATES– Policy [12 345 678]

 

A. RATE TABLE

 

  Age   

Maximum Monthly

Rates per $1,000 of

Net Amount at Risk

   

Minimum

Death

Benefit

Factors

       Age   

Maximum Monthly

Rates per $1,000 of

Net Amount at Risk

   

Minimum

Death

Benefit

Factors

   
   

35

    0.1008    4.7450       79      5.4132    1.3397     
    36    0.1067    4.5828       80      6.0417    1.3160     
    37    0.1117    4.4264       81      6.7617    1.2937     
    38    0.1200    4.2753       82      7.5145    1.2729     
    39    0.1284    4.1299       83      8.3304    1.2535     
    40    0.1376    3.9898       84      9.2413    1.2351     
    41    0.1492    3.8549       85    10.2754    1.2179     
    42    0.1634    3.7252       86    11.4349    1.2019     
    43    0.1793    3.6007       87    12.7150    1.1871     
    44    0.1993    3.4812       88    14.1052    1.1734     
    45    0.2211    3.3668       89    15.5935    1.1607     
    46    0.2419    3.2572       90    17.1705    1.1490     
    47    0.2645    3.1520       91    18.6733    1.1382     
    48    0.2779    3.0511       92    20.2654    1.1276     
    49    0.2938    2.9534       93    21.9737    1.1171     
    50    0.3138    2.8590       94    23.8121    1.1065     
    51    0.3389    2.7679       95    25.7927    1.0951     
    52    0.3732    2.6801       96    27.6414    1.0824     
    53    0.4117    2.5960       97    29.6537    1.0670     
    54    0.4594    2.5154       98    31.8509    1.0471     
    55    0.5156    2.4385       99    34.2595    1.0198     
    56    0.5751    2.3651       100    36.9086    1.0000     
    57    0.6389    2.2951       101    39.0636    1.0000     
    58    0.6917    2.2283       102    41.4176    1.0000     
    59    0.7522    2.1640       103    43.9954    1.0000     
    60    0.8254    2.1022       104    46.8241    1.0000     
    61    0.9162    2.0429       105    49.9370    1.0000     
    62    1.0266    1.9864       106    53.3732    1.0000     
    63    1.1497    1.9327       107    57.1846    1.0000     
    64    1.2789    1.8818       108    61.4290    1.0000     
    65    1.4151    1.8334       109    66.1820    1.0000     
    66    1.5523    1.7873       110    71.5388    1.0000     
    67    1.6897    1.7433       111    77.6268    1.0000     
    68    1.8393    1.7010       112    83.3333    1.0000     
    69    1.9916    1.6603       113    83.3333    1.0000     
    70    2.1732    1.6211       114    83.3333    1.0000     
    71    2.3766    1.5835       115    83.3333    1.0000     
    72    2.6482    1.5473       116    83.3333    1.0000     
    73    2.9318    1.5131       117    83.3333    1.0000     
    74    3.2301    1.4806       118    83.3333    1.0000     
    75    3.5614    1.4496       119    83.3333    1.0000     
    76    3.9235    1.4200       120    83.3333    1.0000     
    77    4.3457    1.3918       121    0          1.0000     
    78    4.8401    1.3650                 

For Age 121 and above, the Maximum Monthly Rate per $1,000 of Net Amount at Risk is 0 and the Minimum Death Benefit Factor is 1.0000.

Maximum Monthly Rates are the same for the Base Face Amount and the Supplemental Face Amount and have been adjusted for any applicable Additional Ratings that are applied to the Cost of Insurance Rates as shown in Section 1.

 

                4

    MCV0409A                

 

3. DEFINITIONS

 

The term “Additional Rating” is an increase in the Cost of Insurance that is applied when a Life Insured does not meet, at a minimum, our underwriting requirements for the standard Risk Classification.

The term “Age” means, on any policy anniversary, the age of the person in question at his or her birthday nearest that date.

The term “Annual Processing Date” means every 12th Processing Date starting with the Processing Date next after the Policy Date.

The term “Business Day” means any day that we are open for business and the New York Stock Exchange is open for trading. The net asset value of the underlying shares of a Subaccount will be determined at the end of each Business Day. We will deem each Business Day to end at the close of regularly scheduled trading of the New York Stock Exchange (currently 4:00 p.m. Eastern Time) on that day.

The term “date” means a calendar day ending at midnight local time at our Service Office.

The term “Fixed Account” is that part of the Policy Value which reflects the value you have in our general account.

The term “Fund” means each division, with a specific investment objective, of a Series Fund.

The term “in force” means that the policy has not terminated in accordance with Section 9, 10, or surrendered in accordance with Section 18.

The term “Investment Account” means that part of the Policy Value which reflects the value you have in one of our Subaccounts.

The term “Issue Date” is the date shown in Section 1 of this policy from which the Suicide and Incontestability provisions are applied. Issue Date is also used to determine the Allocation Date shown in Section 1.

The term “Loan Account” is that part of the Policy Value which reflects amounts transferred from the Fixed Account or the Investment Accounts as collateral for a policy loan.

The term “Minimum Initial Premium” means the minimum premium needed to put the policy in force and is shown in Section 1.

The term “Net Cash Surrender Value” equals the Policy Value less the Policy Debt.

The term “Net Policy Value” equals the Policy Value less the value in the Loan Account.

The term “Planned Premium” means the premium that is selected in the application for the policy, which is intended to be paid on a regular modal basis. It is shown in Section 1.

The term “Policy Date” is the date from which charges for the first Monthly Deduction are calculated. The Policy Date is shown in Section 1. Policy Years, Policy Months, and Policy Anniversaries are determined from the Policy Date.

The term “Policy Debt” as of any date equals (a) plus (b) plus (c), minus (d), where:

 

 

(a)

is the total amount of loans borrowed as of such date;

 

 

(b)

is the total amount of any unpaid loan interest charges borrowed against the policy on a Policy Anniversary;

 

 

(c)

is any interest charges accrued from the last Policy Anniversary to the current date; and

 

 

(d)

is the total amount of loan repayments as of such date.

The term “Policy Value” is the sum of the values in the Loan Account, the Investment Accounts, and the Fixed Account.

The term “Policy Year” means (a) or (b) below whichever is applicable.

 

 

(a)

The first Policy Year is the period beginning on the Policy Date and ending on the Business Day immediately preceding the first Annual Processing Date.

 

 

(b)

Each subsequent Policy Year is the period beginning on an Annual Processing Date and ending on the Business Day immediately preceding the next Annual Processing Date.

 

                5

    MCV0509ANY

 

3. DEFINITIONS (continued)

 

 

The term “Processing Date” means the first day of a Policy Month. A Policy Month shall begin on the day in each calendar month that corresponds to the day of the calendar month on which the Policy Date occurred. If the Policy Date is the 29th, 30th, or 31st day of a calendar month, then for any calendar month that has fewer days, the first day of the Policy Month will be the last day of such calendar month. The Policy Date is not a Processing Date.

The term “Replacement Policy” means a new policy purchased in connection with the surrender and replacement of this policy, including, but not limited to, a replacement intended to qualify as a tax free exchange under Section 1035 of the Internal Revenue Code.

The term “Separate Account” means Separate Account B of John Hancock Life Insurance Company of New York.

The term “Series Fund” means a series type mutual fund registered under the Investment Company Act of 1940 as an open-end diversified management investment company.

The term “Service Office” is the office that we designate to service this policy as shown on the back cover of your policy.

The term “Subaccount” refers to one of the subaccounts of the Separate Account.

The term “Surrender Date” means the end of the Business Day on which we receive at our Service Office your written request for full surrender of the policy.

The terms “we”, “us”, and “our” refer only to the Company.

The term “written request” is your request to us which must be in a form satisfactory to us, signed and dated by you, and filed at our Service Office or, if permitted by our administrative practices, an electronic mail message (“e-mail”) received by us at the internet address specified by us for receipt of such messages.

The terms “you” and “your” refer only to the Owner of this policy.

 

 

4. QUALIFICATION AS LIFE INSURANCE

 

It is intended that this policy comply with the “Definition of Life Insurance” set forth in the Internal Revenue Code, so that, notwithstanding any other provisions of the policy to the contrary, it will be considered as life insurance for federal income tax purposes. We reserve the right to make any reasonable adjustments to the terms or conditions of this policy if it becomes necessary to allow it to qualify as life insurance. This provision should not be construed to guarantee that this policy will receive tax treatment as life insurance or that the tax treatment of life insurance will never be changed by the future actions of any tax authority. One of the following tax qualification tests will apply to the policy. The test you elected is shown in Section 1. Your election cannot be changed after issue.

Guideline Premium Test

Under this test, if at any time the premiums received under the policy exceed the amount allowable for such tax qualification, such excess amount shall be removed from the policy as of the date of its payment, together with interest thereon from such date, and any appropriate adjustment in the Death Benefit shall be made as of such date. This excess amount shall be refunded to you no later than 60 days after the end of the applicable Policy Year. If this excess amount is not refunded by then, the Total Face Amount under the policy shall be increased retroactively so that at no time is the Death Benefit ever less than the amount necessary to ensure or maintain such tax qualification. In no event, however, will we refuse to accept any premium necessary to prevent the policy from terminating but only if such premium payment would result in a zero Policy Value at the end of the Policy Year. In addition, the Minimum Death Benefit, as described in Section 6, must be maintained.

Cash Value Accumulation Test

Under this test, the Minimum Death Benefit, as described in Section 6, must be maintained.

Effect on Life Insurance Qualification Tests

A change in Death Benefit Option or Total Face Amount, or certain other policy changes, will often change the policy’s limits under the Life Insurance Qualification Test that you elected.

We reserve the right to refuse or limit any request for a change if the change would cause the policy to fail to qualify as life insurance for tax purposes.

 

6

 

5. TOTAL FACE AMOUNT

 

The Total Face Amount is made up of two components: (i) the Base Face Amount, and (ii) any Supplemental Face Amount. Minimum Base Face Amount and the Minimum Total Face Amount limits are shown in Section 1. Scheduled increases in any Supplemental Face Amount are elected on the application and if approved, these amounts, when they are to become effective and the Maximum Increasing Supplemental Face Amount will be shown in Section 1. If you later request that an approved scheduled increase should not become effective or request a decrease in your Supplemental Face Amount coverage, we will abide by your request but we reserve the right to not put into effect all approved scheduled increases for subsequent Policy Years. You may not increase your Base Face Amount of insurance under this policy.

Increase in Supplemental Face Amount

After the first Policy Year, while the Life Insured is alive and the policy is in force, unscheduled changes to the Supplemental Face Amount may be requested in writing. Such increases will not be approved if the Life Insured does not continue to qualify for their same Risk Classification that applied when this policy was issued. Increases are limited to one per Policy Year and are subject to the maximum and minimum amounts of unscheduled changes. All requested changes will be subject to our approval.

Approval of any unscheduled increase in Supplemental Face Amount is subject to our normal underwriting practices, including evidence of insurability. All requested and approved unscheduled increases in Supplemental Face Amount will be subject to a monthly charge deducted as described in Section 1, not to exceed the Unscheduled Supplemental Face Amount Increase Charge shown in Section 1, under Maximum Expense Charges. A minimum premium payment may also be required. When a requested change becomes effective, a change in future Planned Premiums will automatically be effected. Any change will be effective on the next Annual Processing Date after our approval.

Reduction of Total Face Amount

You may request a reduction in Total Face Amount any time after the first Policy Year while this policy is in force. The Minimum Total Face Amount Decrease is shown in Section 1. Any reduction in the Total Face Amount generally will be implemented by first reducing any Supplemental Face Amount, although we reserve the right to allow a reduction in Base Face Amount first. Without our prior approval, the Base Face Amount cannot be reduced below the minimum as shown in Section 1. Any reduction in Supplemental Face Amount or Base Face Amount will be effective on the next Processing Date after our approval.

 

 

6. INSURANCE BENEFIT

 

If the Life Insured dies while the policy is in force, we will pay the Insurance Benefit upon receipt of due proof of death of the Life Insured, subject to any applicable provisions of the policy. If the Life Insured dies on or after the date we receive a request from you to surrender the policy, no Insurance Benefit will be paid. We will pay the amount payable under the Surrenders and Withdrawals provision instead.

Insurance Benefit

The Insurance Benefit payable is:

 

 

(a)

the Death Benefit as described below; plus

 

 

(b)

any amounts payable under any Supplementary Benefit riders as a result of the Life Insured’s death that form part of the contract; less

 

 

(c)

any outstanding Policy Debt at the date of death.

If the Life Insured dies during a grace period, the Death Benefit will equal the Death Benefit in effect immediately prior to such period less any outstanding Monthly Deductions due.

Death Benefit

The Death Benefit will depend on whether Option 1 or Option 2 is in effect on the date of the Life Insured’s death.

Death Benefit Options

Under Option 1, the Death Benefit is equal to the Total Face Amount at the date of death of the Life Insured. Under Option 2, the Death Benefit is equal to the Total Face Amount at the date of death of the Life Insured plus the Policy Value at the date of death of the Life Insured.

 

                7

    MCV0709ANY

 

6. INSURANCE BENEFIT (continued)

 

 

If any withdrawals are made, the Death Benefit, whether Option 1 or Option 2 is in effect, will be less than it would have been if no withdrawals were made. Withdrawals reduce the Death Benefit by reducing:

 

 

(a)

the Total Face Amount if Option 1 is in effect, as specified in Section 18; or

 

 

(b)

the Policy Value if Option 2 is in effect.

Change of Death Benefit Option

You may request in writing to change your Death Benefit Option from Option 2 to Option 1 at any time after the first Policy Year, while the policy is in force. The change will be effective on the next Processing Date, and the Total Face Amount after the change will be equal to the Total Face Amount immediately before the change plus the Policy Value as of the effective date of the change.

You may not change your Death Benefit Option from Option 1 to Option 2.

Minimum Death Benefit

The sum of the Death Benefit as described above and the benefit payable upon the death of the Life Insured under any Supplementary Benefit riders will never be less than the Minimum Death Benefit. The Minimum Death Benefit is equal to the Minimum Death Benefit Factor for the Age of the Life Insured multiplied by the greater of the Policy Value or the Cash Surrender Value as defined in the Internal Revenue Code on the date of death of the Life Insured. The Minimum Death Benefit Factors are shown in Section 2. However, at no time will the Minimum Death Benefit be less than the amount required to maintain qualification of this policy as a life insurance contract for federal income tax purposes. If you elect the Cash Value Accumulation Test as the life insurance qualification test, we reserve the right to modify the Minimum Death Benefit Factors shown in Section 2, retroactively if necessary, to maintain qualification of this policy as a life insurance contract for federal income tax purposes, notwithstanding any other provisions of this policy to the contrary. In no event will we refuse to accept any premium necessary to prevent the policy from terminating.

If the Minimum Death Benefit that results from this calculation exceeds the Total Face Amount, we reserve the right to:

 

 

(a)

distribute to you a portion of the Policy Value such that the resulting Minimum Death Benefit does not exceed the Total Face Amount; or

 

 

(b)

if we should decide to accept the additional death benefit, it will be subject to our normal underwriting practices including evidence of insurability.

 

 

7. INTEREST ON PROCEEDS

 

We will pay interest on the Insurance Benefit proceeds from the date of death as stipulated by the state where the policy is delivered. If the state does not specify the interest rate, we will use the rate for insurance benefits left on deposit with us.

 

 

8. PREMIUMS

 

The Minimum Initial Premium is shown in Section 1. No insurance will take effect under this policy until our underwriters approve issuance of this policy and the conditions specified in the application form have been satisfied, including receipt of at least the Minimum Initial Premium at our Service Office.

Subsequent premiums can be paid at any time at our Service Office, and in any amount subject to the limits described below. On request, we will give you a receipt signed by one of our officers.

If coverage under the policy takes effect in accordance with the provisions of the application, we will process any premium payment as of the end of the Business Day the payment is received at our Service Office, subject to the limitations of the life insurance qualification test elected by you and to our maximum limits then in effect, unless one of the following exceptions applies.

 

 

(i)

We will process a payment received prior to the Policy Date as if received on the Policy Date.

 

 

(ii)

We will process the portion of any premium payment for which we require evidence of the Life Insured’s continued insurability on the first Business Day after we have received such evidence and found it satisfactory to us.

 

 

(iii)

If our receipt of any premium payment (or portion thereof) would cause the policy not to qualify as a “life insurance contract” under the federal income tax laws, we will not process such payment or portion. However, in the case of certain other tax situations, we will process the payment (or portion thereof) on the first Business Day after we have received satisfactory written instructions from you.

 

8

 

8. PREMIUMS (continued)

 

 

You may pay premiums until the Life Insured reaches Age 121, at which time Monthly Deductions cease and no further premiums may then be paid as described in Section 12.

If any premium payment would result in the Minimum Death Benefit exceeding the Total Face Amount, we reserve the right to either refund the premium or to require additional underwriting, including evidence of insurability, for any increase in the Minimum Death Benefit.

Continuation of Insurance Upon Discontinuance of Premium Payments

If you discontinue paying premiums, we will continue taking the Monthly Deductions from the Policy Value. Your insurance coverage will continue subject to the Grace Period, and Policy Termination provisions in Sections 9 and 10.

 

 

9. GRACE PERIOD

 

Default

The policy and any Supplementary Benefit riders will go into default if, at the beginning of any Policy Month, the Net Cash Surrender Value is less than or equal to zero after we take the Monthly Deduction that is due for that month.

Grace Period Duration

We will allow 61 days from the date the policy goes into default, for you to pay the amount that is required to bring the policy out of default. No earlier than and within 30 days after the date we determine there is a deficiency in the Net Cash Surrender Value which has caused the policy to go into default, we will send notice to your last known address, specifying the amount you must pay to bring the policy out of default. If we have notice of a policy assignment on file at our Service Office, we will also mail a copy of the notice of the amount due to the assignee on record.

Default Payment

The amount required to bring the policy out of default, referred to as the Default Payment, is equal to (a) plus (b) where:

 

(a)

is the amount necessary to bring the Net Cash Surrender Value to zero if it is less than zero at the date of default; and

 

(b)

is an amount equal to 3 times the Monthly Deduction due on the date of default.

When payment is received, any expense charges which are past due and unpaid will be immediately deducted from the Net Policy Value. If the Default Payment has not been paid by the end of the grace period, the policy will terminate. Upon termination of the policy, the remaining Net Cash Surrender Value, if any, will be paid to the Owner. If the Life Insured dies while the policy is in default, then we will deduct from the Insurance Benefit proceeds all Monthly Deductions due and unpaid as of the date of the Life Insured’s death. No Insurance Benefit under the policy or any Supplementary Benefit riders will be in effect after the policy terminates.

 

 

10. POLICY TERMINATION

 

This policy terminates on the earliest of the following events:

 

 

(a)

the end of the grace period for which we have not received the amount necessary to bring the policy out of default;

 

 

(b)

surrender of the policy for its Net Cash Surrender Value; or

 

 

(c)

the death of the Life Insured.

 

 

11. REINSTATEMENT

 

If the policy terminates at the end of a grace period in which you did not make a required payment, the policy may be reinstated within 3 years from the date of default. The policy cannot be reinstated if it has been surrendered for its Net Cash Surrender Value.

The requirements for reinstatement are as follows:

 

 

(1)

we must receive written request for reinstatement;

 

 

(2)

reinstatement is subject to our normal underwriting practices including evidence of insurability for the Life Insured, and for any insureds covered under any Supplementary Benefit rider that you wish to reinstate;

 

 

(3)

we must receive at our Service Office a premium equal to the amount that was required to bring the policy out of default immediately prior to termination, plus the amount needed to keep the policy in force for at least the next 3 Policy Months.

 

                9

    MCV0909ANY

 

11. REINSTATEMENT (continued)

 

 

Requirements (2) and (3) must be satisfied within 60 days after the date we receive written request for reinstatement.

If we approve your request,

 

(a)

the reinstatement date will be the date we receive the required payment at our Service Office;

 

(b)

the Base Face Amount, and any Supplemental Face Amount will be reinstated to the same amounts as they were on the date the policy terminated;

 

(c)

the Policy Value on the date of reinstatement, prior to the crediting of any premium paid on the reinstatement, will be equal to the Policy Value on the date the policy terminated.

If a Schedule of Supplemental Face Amounts is shown is Section 1 which includes increases that would have otherwise become effective except for this policy having been terminated after being in default, such increases in Supplemental Face Amount will be effective on the next Annual Processing Date after the reinstatement date.

 

 

12. COVERAGE AT AND AFTER AGE 121

 

Provided the policy is in force after the Life Insured’s Age 121, we will continue the policy subject to the stipulations below.

Death Benefit

Any Supplemental Face Amount will be terminated, thereby reducing the Death Benefit by such amount. Apart from this change, the Death Benefit will be determined in the same respect as specified in Section 6.

Premiums and Monthly Deductions

We will not accept any further premium payments. We will cease to take Monthly Deductions for charges listed in Section 1.

Credited Interest

We will continue to credit interest monthly to the Fixed Account portion of the Policy Value.

Policy Debt and Default

New loans will not be allowed. Loan interest will continue to be charged if there is an outstanding loan. Loan repayments will be accepted. The policy will go into default at any time the Policy Debt exceeds the Policy Value, and Section 9, Grace Period, and Section 17, Loans, will apply.

Withdrawals

Withdrawals will not be allowed.

Transfers

Transfers can continue to be made as described in Section 16.

NOTE: This policy may not qualify as life insurance after Age 100, and may, therefore, be subject to adverse tax consequences. Please consult a tax advisor before choosing to continue the policy after Age 100.

 

 

13. POLICY VALUE

 

The Policy Value on the Issue Date (before the first Monthly Deduction is taken at the end of that day) is equal to the initial premium or premiums paid on or before such date. For any premiums received prior to the Issue Date, we will credit interest at the rate of return then being earned on allocations to the current money market Investment Account.

The Policy Value, once the initial premium payment(s) are allocated, will at any time be equal to the sum of values in the Loan Account, the Investment Accounts, and the Fixed Account. Investment allocation of the initial premium payment(s) and any subsequent premium payments will be in accordance with the Allocations provision of Section 16.

While a loan exists, we will treat the amounts you pay as premiums unless you request in writing that they be treated as loan repayments. If you instruct us to do so, we will first deduct from such payments the amount of accrued interest on loans and then deduct the amount specified as a loan repayment before applying any balance remaining as a premium payment.

Monthly Deductions

A deduction is due and will be taken from your Policy Value as of the Policy Date and as of each applicable Processing Date. Monthly Deductions are calculated from the Policy Date. If, at your request, we set the Policy Date to a date which precedes the date on which we receive the initial premium, Monthly Deductions due for the period prior to receipt of the initial premium will be taken on the later of the date we receive the initial premium and the date our underwriters approve issuance of this policy.

Unless we agree otherwise, or you do not have sufficient funds in an account, we will take Monthly Deductions from the Investment Accounts and the Fixed Account in the same proportion that the Policy Value in each of these accounts bears to the Net Policy Value immediately prior to the deduction.

Monthly Deductions are due until the Policy Anniversary on which the Life Insured reaches Age 121 at which time we will cease to take any further Monthly Deductions as described in Section 12.

 

10

 

13. POLICY VALUE (continued)

 

 

The Monthly Deduction for any Policy Month that will be deducted from your Policy Value consists of charges (a) through (f) listed below, where:

 

(a)

is the Asset-Based Risk Charge;

 

(b)

is the Base Face Amount Charge, if any;

 

(c)

is the Administrative Charge;

 

(d)

is the Deferred Premium Charge;

 

(e)

is the sum of the charges for riders which are part of the policy, if any, provided such charges are deducted from the Policy Value; and

 

(f)

is the Cost of Insurance Charge, as described below.

Mortality and expense risks are borne by us.

Cost of Insurance Charge

The rates for the Cost of Insurance Charge, as of the Policy Date and subsequently for each increase in Total Face Amount, are based on the Life Insured’s Sex, if applicable, Age, Risk Classification, and duration that the coverage has been in force.

The Cost of Insurance Charge for a specific Policy Month is the charge for the Net Amount at Risk, including any Additional Ratings and any Supplementary Benefit riders which are part of the policy. The charge for the Net Amount at Risk is an amount equal to the per dollar cost of insurance rate for that month multiplied by the Net Amount at Risk, and will be based on our expectations of future mortality, persistency, investment earnings, expense experience, capital and reserve requirements, and tax assumptions. The Maximum Monthly Rates at any age are shown in Section 2 as a rate per $1,000 of Net Amount at Risk. To get the maximum rate per dollar, the rate shown must be divided by 1,000. Each Cost of Insurance Charge is deducted in advance of the applicable insurance coverage for which we are at risk.

The Cost of Insurance calculation will reflect any adjustment for the Minimum Death Benefit.

We review our Cost of Insurance rates from time to time, and may re-determine Cost of Insurance rates at that time on a basis that does not discriminate unfairly within any class of lives insured.

Net Amount at Risk

The Net Amount at Risk is the amount determined by subtracting (a) from the greater of (b) or (c) where:

 

(a)

is the Policy Value at the end of the immediately preceding Business Day less all charges due on the Policy Date or Processing Date;

 

(b)

is the Total Face Amount plus the death benefit payable under any Supplementary Benefit riders where charges are deducted from the Policy Value and are based on the Net Amount at Risk, divided by the Death Benefit Discount Factor shown in Section 1 plus the Policy Value for policies electing Death Benefit Option 2; and

 

(c)

is the amount defined in (a) multiplied by the applicable Minimum Death Benefit Factor for the Life Insured’s Age as shown in Section 1.

 

 

14. LOAN ACCOUNT, FIXED ACCOUNT, INVESTMENT ACCOUNTS

 

The sum of the values you have in the Loan Account, the Fixed Account, and the Investment Accounts, as described below, comprise the Policy Value.

Loan Account Value

The amount you have in the Loan Account at any time equals:

 

(a)

amounts transferred to it for loans or borrowed loan interest; plus

 

(b)

interest credited to it; less

 

(c)

amounts transferred from it for loan repayment.

For details regarding the Loan Account, see Section 17.

Fixed Account Value

The amount you have in the Fixed Account at any time equals:

 

(a)

premiums allocated to it; plus

 

(b)

amounts transferred to it; plus

 

(c)

interest credited to it; less

 

(d)

amounts deducted from it; less

 

(e)

amounts transferred from it; less

 

(f)

amounts withdrawn from it.

 

                11

    MCV1109ANY

 

14. LOAN ACCOUNT, FIXED ACCOUNT, INVESTMENT ACCOUNTS (continued)

 

 

We will determine the rate or rates of interest to be credited to the Fixed Account. Any additional interest will be credited no less frequently than annually. Additional interest is nonforfeitable after crediting except indirectly due to the replacement fee being applied. The rate or rates of interest will be determined prospectively and will be based on our expectations for the Fixed Account’s future investment earnings, persistency, mortality, expense and reinsurance costs and future tax, reserve, and capital requirements, but in no event will the minimum credited interest be less than the Fixed Account Annual Rate shown in Section 1. The rate or rates of interest will be determined on a uniform basis for life insureds with the same timing and amount of premium, same amount of Policy Debt, and whose policies have been in force for the same length of time. For all transactions, interest is calculated from the date of the transaction.

Investment Account Value

The amount you have in an Investment Account at any time equals the number of units in that Investment Account multiplied by the unit value of the corresponding Subaccount at that time.

The number of units in an Investment Account at any time equals (a) minus (b), where:

 

 

(a)

is the number of units credited to the Investment Account because of:

 

 

(1)

premiums allocated to it; and

 

 

(2)

amounts transferred to it; and

 

 

(b)

is the number of units canceled from the Investment Account because of:

 

 

(1)

amounts deducted from it;

 

 

(2)

amounts transferred from it; and

 

 

(3)

amounts withdrawn from it.

The number of units credited or canceled for a given transaction is equal to the dollar amount of the transaction, divided by the unit value on the Business Day of the transaction. See the Unit Value Calculation provision in Section 15 for details on how unit values are determined.

 

 

15. SEPARATE ACCOUNT AND SUBACCOUNTS

 

Each Subaccount of the Separate Account purchases shares of corresponding Funds of a Series Fund. The assets of the Separate Account are the property of the Company. They are used to support the Policy Values of variable life insurance policies. Income, gains, and losses of the Separate Account are credited to, or charged against, the Separate Account without regard to other income, gains and losses. The part of the assets that is equal to the Investment Account values in respect of all variable life insurance policies will not be charged with liabilities from any other business we conduct. We can transfer to our general account, Separate Account assets in excess of the liabilities of the Separate Account arising under the variable life insurance policies supported by the Separate Account.

Right to Make Changes

In order to best serve the interest of the owners of policies such as this or for carrying out the purposes of such policies, we may make certain Separate Account and/or Subaccount changes. Any changes will be made only to the extent and in the manner permitted by applicable laws. Also, when required by law, we will obtain your approval of the changes and approval from any appropriate regulatory authority.

The changes we may make are the following:

 

 

(a)

To operate a Separate Account in any form permitted under the Investment Company Act of 1940, or in any other form permitted by law.

 

 

(b)

To take any action necessary to comply with or obtain and continue any exemptions from the Investment Company Act of 1940.

 

 

(c)

To create new separate accounts, or to combine any two or more separate accounts including the Separate Account, or to de-register the Separate Account under the Investment Company Act of 1940, or to transfer assets between the Separate Account and other separate accounts.

 

12

 

15. SEPARATE ACCOUNT AND SUBACCOUNTS (continued)

 

 

 

(d)

To transfer any assets in a Subaccount to another Subaccount, or to add, combine or remove Subaccounts.

 

 

(e)

To substitute, for the investment company shares held in any Subaccount, another class of shares of the investment company or the shares of another investment company or any other investment permitted by law.

The investment policy of a Subaccount within the Separate Account shall not be materially changed unless a statement of the change is first filed with any jurisdiction requiring such a filing. In the event of such a change in investment policy, and while this policy is in force, you may elect a transfer to the Fixed Account as described in Section 16.

Unit Value Calculation

We will determine the unit values for each Subaccount as of the end of each Business Day.

The unit value for each Subaccount was established at $10 for the first Business Day that an amount was allocated, or transferred to the particular Subaccount. For any subsequent Business Day, the unit value for that Subaccount is obtained by multiplying the unit value for the immediately preceding Business Day by the net investment factor for the particular Subaccount on such subsequent Business Day.

Net Investment Factor

The net investment factor for a Subaccount on any Business Day is equal to (a) divided by (b) where:

 

 

(a)

is the net asset value of the underlying Fund shares held by that Subaccount as of the end of such Business Day before any policy transactions are made on that day; and

 

 

(b)

is the net asset value of the underlying Fund shares held by that Subaccount as of the end of the immediately preceding Business Day after all policy transactions were made for that day.

We reserve the right to adjust the above formula for any taxes determined by us to be attributable to the operations of the Subaccount.

 

 

16. ALLOCATIONS AND TRANSFERS

 

Allocations

We process premiums as described in Section 13. Any premiums credited to the Policy Value prior to the Allocation Date, as shown in Section 1, will automatically be invested in the current money market Investment Account. On the Allocation Date (or on the date such premium is received, if later), we will reallocate the amount in the current money market Investment Account attributable to any such premium in accordance with the allocation instructions then in effect. We will allocate all other premiums and credits to the Fixed Account and to any Investment Accounts in accordance with the allocation instructions then in effect. Initial allocation instructions are elected in your application for this policy.

You may elect to change your allocation instructions at any time. A change can be elected by written request or by internet notification if a currently valid written authorization to make changes in this manner is on file with us. A change will be effective as of the end of the Business Day on which we receive notice satisfactory to us. Instructions to us must express allocation percentages as greater than or equal to zero and less than or equal to 100%, and the sum of the allocation percentages must equal 100%. Allocation percentages must be whole numbers.

The date for allocation percentage changes will be as of the end of the Business Day on which we are contacted, as described above, to make the changes.

Transfers

In the same way as described above in the Allocations provision, instructions may be given to us at any time while the policy is in force to transfer portions of your Policy Value among the Investment Accounts and the Fixed Account. Transfers are subject to the restrictions described below.

General Restrictions on Transfers

You can make up to 2 transfers per calendar month. You can transfer 100% of the Policy Value to the current money market Investment Account after this limit has been reached. If such transfer to the current money market Investment Account is made, no subsequent transfers from the current money market Investment Account to another Investment Account may be made within 30 days.

In lieu of the two transfers per month restriction, we may permit a corporation or a trust established by a corporation that purchases this policy as a means to finance liabilities created by an employee benefit plan to rebalance the investment options in its policies within the following limits:

 

(i)

during the 10 calendar day period after any Policy Values are transferred from one Investment Account into a second Investment Account, the values can only be transferred out the second Investment Account if they are transferred into the money market Investment Account; and

 

                13

    MCV1309ANY

 

16. ALLOCATIONS AND TRANSFERS (continued)

 

 

 

(ii)

any Policy Values that would otherwise not be transferable by application of the 10 day limit described above and that are transferred into the money market Investment Account may not be transferred out of the money market Investment Account into other accounts (Fixed or Investment) for 30 calendar days.

There is no charge for the first 12 transfers in any Policy Year. If you make more than 12 transfers in any Policy Year, a transfer fee not to exceed the Maximum Transfer Fee shown in Section 1 will apply to each subsequent transfer in the Policy Year. We will consider all transfer requests made on the same Business Day as one transfer. Transfers made pursuant to the Asset Allocation Balancer or Dollar Cost Averaging options described below are not subject to the foregoing general restrictions. Without our approval, the maximum amount that may be transferred to or from an Investment Account in any Policy Year may not exceed the Investment Account Maximum Transfer Amount shown in Section 1.

This policy was not designed for professional market timing organizations or other persons or entities that use short-term or frequent transfers among investment accounts. If in our judgment it is necessary to avoid harm to long-term investors in an Investment Account that may result from such activity, we may terminate transfer privileges and impose additional restrictions beyond those described above to discourage disruptive short-term and frequent transfers. These additional restrictions may include restricting:

 

(a)

the number of transfers made during a defined period but not less than one transfer per month;

 

(b)

the dollar amount of transfers, with the exception of amounts less than $10,000 per transfer;

 

(c)

the method used to submit transfers (for example: we may require that all transfer requests be submitted in writing via U.S. mail); and

 

(d)

transfers into and out of any/all Investment Accounts, except the money market Investment Account.

Should any of the above restrictions be applied, they will be applied uniformly to all policy owners with this type of policy that are subject to the restrictions.

Restrictions on Transfers or Payments to the Fixed Account

We may impose restrictions on the number, frequency, and amount of transfers and premium payments into the Fixed Account. Currently, the maximum amount that may be transferred or paid into the Fixed Account in any Policy Year is $1,000,000, less premiums previously paid or transferred to the Fixed Account in such Policy Year. Upon request, we will consider waiving this restriction.

You may transfer the Policy Value from any of the Investment Accounts to the Fixed Account without incurring any transfer charges, regardless of the number of transfers previously made, provided such transfers occur:

 

(a)

within 18 months after the Issue Date, as shown in Section 1; or

 

(b)

within the later of (i) or (ii) where (i) is 60 days from the effective date of a material change in the investment objectives of the Subaccount from which the Policy Value will be transferred, and (ii) is 60 days from the notification date of such change.

Restrictions on Transfers out of the Fixed Account

The maximum amount that you can transfer out of the Fixed Account in any one Policy Year is limited to the greater of:

 

(a)

the Fixed Account Maximum Transfer Percentage shown in Section 1 multiplied by the value in the Fixed Account at the previous Annual Processing Date; and

 

(b)

the Fixed Account Maximum Transfer Amount shown in Section 1.

Any transfer out of the Fixed Account may not involve a transfer to the current money market Investment Account.

Asset Allocation Balancer Transfers

If you elect this option, we will automatically transfer amounts among your specified Investment Accounts in order to maintain your designated percentage in each account. We will effect the transfers at specified intervals you select which may be either annually, semi-annually, quarterly or monthly. When you change your premium allocation instructions, your Asset Allocation Balancer will change so the two are identical. This change will automatically occur unless you instruct us otherwise, or a Dollar Cost Averaging request is in effect. We reserve the right to cease to offer this option as of 90 days after we send you written notice.

Dollar Cost Averaging Transfers

If you elect this option, we will automatically transfer amounts each month from one Investment Account to one or more of the other Investment Accounts or the Fixed Account. You must select the amount to be transferred and the accounts. If the value in the Investment Account from which the transfer is being made is insufficient to cover the transfer amount, we will not effect the transfer and we will notify you. We reserve the right to cease to offer this option as of 90 days after we send you written notice.

 

14

 

17. LOANS

 

At any time while this policy is in force and sufficient loan value is available, you can obtain a loan by written request. Each loan must be for at least the Minimum Loan Amount shown in Section 1. We may require a loan agreement from you as the policy is the only security for the loan. We may defer loans as provided by law or as provided in Section 25. Loans, except those used to pay premiums on policies with us, may not be made if the policy is in the Grace Period as described in Section 9.

Available Loan Value

The available loan value on any date will be an amount equal to (i) the Net Cash Surrender Value, less (ii) the Monthly Deductions then being deducted from the Policy Value multiplied by the number of months remaining in the Policy Year, less (iii) an amount determined as follows:

 

(a)

Deduct (ii) above from (i) above.

 

(b)

Multiply the result by the difference between the effective annual rate then being charged on loans and the effective annual rate then being credited on the Loan Account.

In no event, however, will the Available Loan Value be less than 90% of the Net Cash Surrender Value. Values will be determined, subject to Section 25, as of the end of the Business Day on which the loan application is received at our Service Office.

Loan Account

When you take out a loan, or when loan charges are borrowed, we will transfer amounts from the Fixed Account and the Investment Accounts, as applicable, into the Loan Account. Amounts we transfer into the Loan Account cover the loan principal. A Loan Subaccount exists for each Investment Account and for the Fixed Account. Amounts transferred to the Loan Account are allocated to the appropriate Loan Subaccount to reflect the account from which the transfer was made. We will allocate the amounts to be transferred in the same proportion that your value in the Subaccounts bears to the new Policy Value, unless you request otherwise and designate different proportions. When an amount to be transferred is allocated to an Investment Account, we will redeem units of that Investment Account sufficient in value to cover the allocated amount. These transfers do not count as a transfer for the purposes of the Transfer provisions described in Section 16.

Interest is credited to the Loan Account and interest is also charged on the Policy Debt, as described in the Loan Interest Charged and the Loan Interest Credited provisions.

Loan Interest Charged

Interest will accrue daily on loans. Loan interest will be payable on each Annual Processing Date and on the date the loan is settled. Interest may be paid in advance at the equivalent effective rate. In the event that you do not pay the loan interest charged in any Policy Year, it will be borrowed against the policy and added to the Policy Debt in arrears at the Policy Anniversary. We will allocate the amount borrowed for interest payment in the same proportion that your value in the Fixed Account and the Investment Accounts bears to the Net Policy Value as of the Policy Anniversary.

The effective loan interest charged rate will not exceed the Maximum Loan Interest Charged Annual Rate shown in Section 1. We will increase the Loan Interest Charged Annual Rate at any time it is determined that the rate being charged would cause a loan to be taxable under any applicable ruling, regulation, or court decision. In such case, we will increase the Loan Interest Charged Annual Rate to an amount that would result in the transaction being treated as a loan under federal tax law.

Loan interest will continue to be charged, as described in Section 12, when Monthly Deductions and premium payments cease at the Life Insured’s Age 121.

Loan Interest Credited

Loan interest will accrue daily to amounts in the Loan Account. The Loan Interest Credited Annual Rate is shown in Section 1.

Loan Repayment

You may repay the Policy Debt in whole or in part at any time prior to the death of the Life Insured and while the policy is in force. When you make a loan payment or repay a loan, we credit the amount remaining after deduction of the loan interest charges, specified above, to the Loan Account, and make a transfer to the Fixed Account and the Investment Accounts, as applicable.

 

                15

    MCV1509ANY

 

17. LOANS (continued)

 

 

Upon loan repayment, the same proportionate amount of the entire loan as was borrowed from the Fixed Account will be repaid to the Fixed Account. The remainder of the loan repayment will be allocated to the appropriate Investment Accounts in accordance with the allocation instructions then in effect.

Subject to any rider, endorsement, or other provisions, while a loan exists, we will treat any amounts you pay as premiums, unless you request in writing that they be treated as loan repayments.

Excess Indebtedness

Excess Indebtedness is the amount, if any, by which Policy Debt exceeds Policy Value. We will determine Policy Value as of the close of the Business Day. If Excess Indebtedness occurs on any date, the policy, including all policy benefits (i.e., the Base Face Amount, any Supplemental Face Amount and any Supplementary Benefit riders), will be in default, as of the date in question. No earlier than and within 30 days after the date we determine there is an Excess Indebtedness, we will send notice of such Excess Indebtedness to your last know address and to the last know address of any assignee on record with us. The policy will terminate on the 61st day after we send notice if Excess Indebtedness is not repaid to us by that date.

 

 

18. SURRENDERS AND WITHDRAWALS

 

Surrender of the Policy

You may surrender this policy upon written request for its Net Cash Surrender Value at any date prior to the death of the Life Insured. We will determine the Net Cash Surrender Value on the Surrender Date. We will process the request and pay the Net Cash Surrender Value only if we have not received due proof that the Life Insured died prior to the Surrender Date. In calculating the Net Cash Surrender Value, we will deduct a Replacement Fee if during the Charge Period for such fee as shown in Section 1, you surrender this policy under circumstances where we determine that proceeds of such surrender will be applied to a Replacement Policy. After we receive your written request to surrender the policy, no insurance will be in force.

Withdrawals

Once per Policy Month after the first Policy Anniversary, you may request a withdrawal of part of the Net Cash Surrender Value if available. Withdrawals are subject to the following conditions:

 

(a)

without our approval, each withdrawal must be for at least the Minimum Withdrawal Amount shown in Section 1;

 

(b)

after the withdrawal, the remaining Net Cash Surrender Value must be at least equal to 3 times the Monthly Deductions at the time of the withdrawal;

 

(c)

we will process the withdrawal, thereby reducing the Policy Value, as of the end of the Business Day on which we receive your written request;

 

(d)

we will reduce the amount of the withdrawal if the amount in all accounts is not sufficient to pay the withdrawal;

 

(e)

you may specify which Investment Accounts as well as the Fixed Account from which we should make the withdrawal. If we do not receive such instructions, we will allocate the deduction of the withdrawal in the same proportion that the value in the Fixed Account and the Investment Accounts bears to the Net Policy Value; and

 

(f)

we will reduce the amount of the withdrawal if it would otherwise cause the Base Face Amount to fall below the Minimum Base Face Amount shown in Section 1.

If Death Benefit Option 1 is in effect at the time of the withdrawal, the Total Face Amount of the policy will be reduced:

 

a)

by the amount of the withdrawal, if at the time of the withdrawal the Death Benefit equals the Total Face Amount; otherwise

 

b)

by the amount, if any, by which the withdrawal exceeds the difference between the Minimum Death Benefit and the Total Face Amount, divided by the applicable Minimum Death Benefit Factor for the Life Insured’s Age as shown in the Table of Rates in Section 2.

Withdrawals will reduce the Supplemental Face Amount first, and then the Base Face Amount but we may allow a reduction in Base Face Amount prior to fully reducing the Supplemental Face Amount. If the Death Benefit on any given day is equal to the Policy Value times the applicable Minimum Death Benefit Factor, withdrawals on such day will reduce the Death Benefit by the amount withdrawn times the applicable Minimum Death Benefit Factor until the Death Benefit is equal to the Total Face Amount. Your Death Benefit will continue to be determined in accordance with Sections 6 and 12, subject to these provisions.

If Death Benefit Option 2 is in effect, an amount equal to any withdrawal will be deducted from the Policy Value. Withdrawals will not affect the Total Face Amount. Your Death Benefit will continue to be determined in accordance with Sections 6 and 12.

 

16

 

18. SURRENDERS AND WITHDRAWALS (continued)

 

 

Change to a Fixed Paid-Up Benefit

At any time after the first Policy Anniversary, while this policy has a Net Cash Surrender Value, you may choose to continue your coverage under this policy as guaranteed paid-up life insurance. We will apply the entire Net Cash Surrender Value of your policy to provide an amount of guaranteed paid-up life insurance calculated using the guaranteed maximum mortality charges and 4% interest, subject to the following conditions:

 

 

(a)

the Net Cash Surrender Value will be determined as of the end of the Business Day on which we receive your Written Request for this option, and

 

 

(b)

the Policy Value after this determination will be the net single premium for the amount of paid-up life insurance using 4% interest and the guaranteed maximum mortality charges, and

 

 

(c)

for policyholder tax compliance purposes, the definition of life insurance test will be the Cash Value Accumulation Test, and

 

 

(d)

the Flexible Premium Variable Universal Life coverage cannot be reinstated after the date you elect this option.

 

 

19. OWNER AND BENEFICIARY

 

Until the Life Insured’s death, without the consent of any revocable beneficiaries, you can receive any amount payable under the policy and exercise all rights and privileges granted by the policy.

Change of Owner

Until the Life Insured’s death, you can change the ownership of the policy by written request. The change will take effect as of the date you signed the written request. It will not apply to any payments we made or any action we may have taken before we received your written request.

Trustee Owner

Should the owner be a trustee, payment to the trustee(s) of any amount to which the trustee(s) is (are) entitled under the policy, either by death or otherwise, will fully discharge us from all liability under the policy to the extent of the amount so paid.

Joint Ownership

Two or more owners will own the policy as joint tenants with right of survivorship, unless otherwise requested on the application or in any subsequent assignment of the policy. On death of any of the owners, the deceased owner’s interest in the policy passes to the surviving owner(s).

Successor Owner

If an owner dies prior to the death of the Life Insured, a named successor owner will, if then living, have all the owner’s rights and interest in the policy. The owner, with the consent of any irrevocable beneficiary, can cancel or change the designation of successor owner prior to the death of the Life Insured by agreement in writing with us.

The following four provisions will apply unless there is a beneficiary appointment in force that provides otherwise.

Beneficiary Classification

You can appoint beneficiaries for the Insurance Benefit in three classes: primary, secondary, and final. Beneficiaries in the same class will share equally in the Insurance Benefit payable to them.

Payment To Beneficiaries

We will pay the Insurance Benefit:

 

(a)

to any primary beneficiaries who are alive when the life insured dies; or

 

(b)

if no primary beneficiary is then alive, to any secondary beneficiaries who are then alive; or

 

(c)

if no primary or secondary beneficiary is then alive, to any final beneficiaries who are then alive.

Change of Beneficiary

Until the Life Insured’s death, you can change the beneficiary by written request unless you make an irrevocable designation. An irrevocable designation cannot be changed without the consent of the irrevocable beneficiary. We are not responsible if the change does not achieve your purpose. The change will take effect as of the date you signed such request. It will not apply to any payments we made or any action we may have taken before we received your written request.

Death of Beneficiary

If no beneficiary is alive when the Life Insured dies, the Insurance Benefit will be payable to you; or if you are the Life Insured, to your estate. Unless otherwise provided, if a beneficiary dies before the seventh day after the death of the Life Insured, we will pay the Insurance Benefit as if the beneficiary had died before the Life Insured.

 

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20. ASSIGNMENT

 

Your interest in this policy may be assigned with the written consent of any irrevocable beneficiary. Your interest, any interest of the Life Insured and of any revocable Beneficiary shall be subject to the terms of the assignment, but such assignment shall not affect the interest of any irrevocable beneficiary.

We will not be on notice of any assignment unless it is in writing, nor will we be on notice until the original or a duplicate of the original assignment has been received at our Service Office. We assume no responsibility for the validity or sufficiency of any assignment.

 

 

21. MISSTATEMENTS

 

If the age or sex of the Life Insured was misstated in the application, we will, if necessary, change the Base Face Amount, any Supplemental Face Amount, and every other benefit to that which would have been purchased at the correct age or sex by the most recent Cost of Insurance Charge.

 

 

22. SUICIDE

 

If the Life Insured commits suicide, within 2 years from the Issue Date, the policy will terminate on the date of such suicide and we will pay (in place of all other benefits, if any) an amount equal to the premiums paid less the amount of any Policy Debt on the date of death and less any withdrawals.

If the Life Insured commits suicide, after 2 years from the Issue Date or within 2 years from:

 

 

(a)

the date we approve a schedule of increasing Supplemental Face Amount;

 

 

(b)

the effective date of any unscheduled increase in Supplemental Face Amount; or

 

 

(c)

the date of an increase in Death Benefit resulting from any payment of premium we are authorized to refuse under Section 4;

the benefits payable under the policy will not include the amount of such Death Benefit increase but will include the amount of premium that pertains to the increase.

Under this provision we may obtain evidence of the manner and cause of death of the Life Insured.

 

 

23. INCONTESTABILITY

 

This policy shall be incontestable after it has been in force during the lifetime of the Life Insured for two years from the Issue Date, except for policy termination, or any provision for reinstatement or policy change requiring evidence of insurability. Any contest will be based on material misrepresentation.

In the case of reinstatement or any policy change requiring evidence of insurability, the incontestable period shall be two years from the effective date of such reinstatement or policy change and contest will be based on statements made in the reinstatement application. In addition, for a policy change involving the approval of a schedule of increasing Supplemental Face Amount, the contestable period shall be two years from the date we approve such schedule.

Any premium payment which we accept subject to insurability, and any increase in the Death Benefit resulting from such payment, shall be considered a policy change for purposes of this Section and will be subject to contest for a period of two years from the date of the policy change.

Under this provision to obtain evidence of the manner and cause of death of the Life Insured.

 

 

24. THE CONTRACT

 

The written application for the policy is attached at issue. The entire contract between the applicant and us consists of the policy, such application, and any riders and endorsements. However, additional written requests or applications for policy changes or acceptance of excess payment may be submitted to us after issue and such additional requests may become part of the policy. Nothing is incorporated by reference. All statements made in any application shall be deemed representations and not warranties. We will use no statement made by or on behalf of the Life Insured to defend a claim under the policy unless it is in a written application.

An exchange of this policy for a new policy on a different plan may be made by agreement between you and us.

We reserve the right to make any changes necessary in order to keep this policy in compliance with any changes in federal or state tax laws. Other changes in this policy may be made by agreement between you and us. Only the President, Vice President, the Secretary, or an Assistant Secretary of the Company has authority to waive or agree to change in any respect any of the conditions or provisions of the policy, or to extend credit or to make an agreement for us.

 

                18

   

 

25. RIGHT TO POSTPONE PAYMENT OF BENEFITS

 

We reserve the right to postpone the payment of Net Cash Surrender Value, withdrawals, policy loans, or partial withdrawals, except when used to make a premium payment and the portion of the Insurance Benefit that depends on Investment Account values, for any period during which:

 

 

(a)

the New York Stock Exchange (Exchange) is closed for trading (other than customary week-end and holiday closings), or trading on the Exchange is otherwise restricted;

 

 

(b)

an emergency exists as defined by the Securities and Exchange Commission (SEC), or the SEC requires that trading be restricted; or

 

 

(c)

the SEC permits a delay for the protection of policyholders.

Except when used to make a premium payment we also reserve the right to postpone payments, including loans, for up to 6 months if such payments are based on values that do not depend on the investment performance of the Investment Accounts. We may also postpone payments for up to 6 months when coverage is provided under paid-up life insurance, as outlined is Section 18.

If we do not mail or deliver a requested payment within 10 working days of the date we receive the documentation necessary to complete the transaction, we will pay interest from such date, provided the interest is at least $25.00. The rate of interest we pay will be the same as the rate of interest we then currently pay on policy proceeds left on deposit with us. At our option, the interest will either be added to and become part of the total payment or we will pay it separately.

In addition, we may defer transfers under the circumstances stated in (a), (b) and (c) above, and in the Allocations and Transfers provision.

 

 

26. CLAIMS OF CREDITORS

 

The proceeds and any income payments under the policy will be exempt from the claims of creditors to the extent permitted by law. These proceeds and payments may not be assigned or withdrawn before becoming payable without our agreement.

 

 

27. REPORTS TO OWNER

 

Within 30 days after each Policy Anniversary, we will send you a report at no charge showing:

 

(a)

the Death Benefit;

 

(b)

the Policy Value;

 

(c)

the current allocation in the Fixed Account, the Loan Account, and each of the Investment Accounts;

 

(d)

the value of the units in each chosen Investment Account;

 

(e)

the Loan Account balance and loan interest charged since the last report;

 

(f)

the premiums paid and policy transactions for the year; and

 

(g)

any further information required by law.

Upon request, we will provide you with a report of projected future values. We will provide one report annually without charge. For additional reports you request, we reserve the right to charge a reasonable fee, not to exceed $50.

 

 

28. HOW VALUES ARE COMPUTED

 

We provide Net Cash Surrender Values that are at least equal to those required by law. We base minimum Net Cash Surrender Values on the 2001 Commissioners Standard Ordinary Sex Distinct Aggregate ANB Ultimate Mortality Tables, with substandard ratings as applicable. However, if this policy is issued on a unisex basis, we base minimum Net Cash Surrender Values on the 2001 Commissioners Standard Ordinary Male Aggregate ANB Ultimate Mortality Table, with substandard ratings as applicable. We also use these tables in determining Guaranteed Maximum Cost of Insurance Charges. Reserves will be at least as great as the minimum required by the law.

A detailed statement of the method of computing the values of this policy has been filed with the State of New York Insurance Department.

 

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    MCV1909ANY

 

29. FLEXIBLE FACTORS

 

When determining the rate of interest to be used in crediting interest to the portion of the Policy Value in the Fixed Account, and any changes in that rate, we will consider the following factors: expected mortality and persistency experience; expected general account investment earnings; and expected operating expenses. We will consider the same factors when we determine the actual cost of insurance; the deductions for Deferred Premium charge; Administrative charge; Base Face Amount charge; Asset-Based Risk charge; and whenever changes are made to any of these charges. We will not try to recover any losses in earlier years by increasing your charges in later years.

Adjustments to flexible factors will be by class and be determined by us from time to time based on future expectations for such factors.

 

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Communications about this policy may be sent to the Company’s Service Office, which is currently at [197 Clarendon Street, Boston, Massachusetts 02117. Our toll-free number is 1-800-521-1234].

Home Office: 100 Summit Lake Drive, Valhalla, New York 10595

 

 

Flexible Premium Variable Universal Life Insurance policy

Adjustable Death Benefit

Benefit payable on Life Insured’s death

Flexible premiums payable to Age 121 during the Life Insured’s lifetime

Non-Participating (Not eligible for dividends)

 

09MAJVCOLIX

    MCVBP09ANY