Form N-6 RIVERSOURCE OF NEW YORK
Table of Contents
THE SECURITIES ACT OF 1933 | [ ] | |
Post-Effective Amendment No. (File No. ) | [ ] |
THE INVESTMENT COMPANY ACT OF 1940 | [ ] | |
Amendment No. 101 (File No. 811-05213) | [x] |
Depositor’s Telephone Number, including Area Code:
(800) 541-2251
Minneapolis, MN 55474
Table of Contents
Issued by: | RiverSource Life Insurance Co. of New York (RiverSource Life of NY) |
20 Madison
Avenue Extension Albany, NY 12203 Telephone: 1-800-541-2251 Website address: riversource.com/lifeinsurance RiverSource of New York Account 8 | |
Service Center: | RiverSource Life Insurance Co. of New York |
70500
Ameriprise Financial Center Minneapolis, MN 55474 Telephone: 1-800-541-2251 Website address: riversource.com/lifeinsurance |
• | A Fixed Account to which we credit interest. |
• | Indexed Accounts to which we credit interest. |
• | Subaccounts that invest in underlying Funds. |
• | Are NOT deposits or obligations of a bank or financial institution; |
• | Are NOT insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency; and |
• | Are subject to risks including loss of the amount you invested and the policy ending without value. |
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FEES AND EXPENSES | Location in Statutory Prospectus | |||
Charges for Early Withdrawals | If you surrender your policy for its full Cash Surrender Value, or the policy Lapses, during the first ten years and for ten years after requesting an increase in the Specified Amount, you will incur a Surrender Charge. The Surrender Charges are set based on various factors such as the Insureds’ Insurance Ages (or Attained Insurance Ages at the time of a requested increase in the Specified Amount), Risk Classifications, genders and the number of years the policy has been in force (or for the number of years from the effective date of an increase in Specified Amount). The Surrender Charges are shown under the Policy Data page of your policy. | Fee Tables | ||
Transaction Charges | In addition to Surrender Charges, you may also incur charges on other transactions, such as a premium expense charge, partial Surrender Charge, express mail fee, electronic fund transfer fee, and fees imposed when exercising your rights under certain riders and benefits under the policy. If you take a loan against the policy, you will be charged a loan interest rate on any outstanding balance until the loan is paid off. | Fee Tables | ||
Ongoing Fees and Expenses (annual charges) | In
addition to Surrender Charges and transaction charges, an investment in the policy is subject to certain ongoing fees and expenses, including fees and expenses covering the cost of insurance under the policy and the cost of certain optional
benefits available under the policy. Such fees and expenses are set based on various factors such as the Insureds’ Risk Classifications, Issue Ages, genders and the number of years the policy is in force. You should review the rates, fees and
charges under the Policy Data page of your policy. You will also bear expenses associated with the Funds offered under the policy, as shown in the following table: |
Fee Tables | ||
Annual Fee | Minimum | Maximum | ||
Underlying
Fund options (Funds fees and expenses)(1) |
0.26% | 4.14% | ||
(1) As a percentage of fund assets. | ||||
RISKS | ||||
Risk of Loss | You can lose money by investing in this policy including loss of principal. | Principal Risks | ||
Not a Short-Term Investment | The
policy is a long-term investment that is primarily intended to provide a death benefit that we pay to the Beneficiary upon the last surviving Insured’s death. The policy is not suitable as a short-term investment and may not be appropriate for an investor who needs ready access to cash. Your policy has little or no Cash Surrender Value in the early policy years. During early policy years the Cash Surrender Value may be less than the premiums you pay for the policy. Your ability to take partial surrenders is limited. You cannot take partial surrenders during the first policy year. |
Principal Risks |
RISKS | Location
in Statutory Prospectus | |||
Risks Associated with Investment Options | •
You can lose cash value due to adverse investment experience. There is no minimum guaranteed cash value under the Subaccounts of the Variable Account. • If the death benefit is option 2, the death benefit could decrease from the death benefit on the previous Valuation Date due to adverse investment experience. • Your policy could Lapse due to adverse investment experience if the No-Lapse Guarantee is not in effect and you do not pay the premiums needed to maintain coverage. • Each investment option (including the Fixed Account and the Indexed Accounts) has its own unique risks. • You should review the investment options before making an investment decision. |
Principal
Risks The Variable Account and the Funds | ||
Insurance Company Risks | An
investment in the policy is subject to the risks related to us. Any obligations (including under the Fixed Account and the Indexed Accounts) or guarantees and benefits of the policy that exceed the assets of the Variable Account are subject to our
claims-paying ability. If we experience financial distress, we may not be able to meet our obligations to you. More information about RiverSource Life of NY, including our financial strength ratings, is available by contacting us at
1-800-541-2251. Additional information regarding the financial strength of RiverSource Life of NY can be accessed at: strengthandsoundness.com. |
Principal
Risks The General Account | ||
Policy Lapse | Insufficient premium payments, fees and expenses, poor investment performance, full and partial surrenders, and unpaid loans or loan interest may cause the policy to Lapse. There is a cost associated with reinstating a Lapsed policy. Death benefits will not be paid if the policy has Lapsed. | Keeping the Policy in Force | ||
RESTRICTIONS | ||||
Investment Options | •
We reserve any right to limit transfers of value from a Subaccount to one or more Subaccounts or to the Fixed Account to five per policy year, and we may suspend or modify this transfer privilege at any time with any necessary approval of the
Securities and Exchange Commission. • Your transfers among the Subaccounts are subject to policies designed to deter market timing. • The minimum transfer amount from an investment option is $50, if automated, and $250 by mail or telephone. • On the youngest Insured’s Attained Insurance Age 120 anniversary, any Policy Value in the Subaccounts will be transferred to the Fixed Account and may not be transferred to any Indexed Account. • You may only transfer between Subaccounts and the Fixed Account on a Policy Anniversary, unless you automate such transfers. • Restrictions into and out of the Indexed Accounts apply. • We reserve the right to close, merge or substitute Funds as investment options. We also reserve the right, upon notification to you, to close or restrict any Funds. We will obtain any necessary approval of the Securities and Exchange Commission. • We generally limit premium payments in excess of $1,000,000. |
Transfers
Among the Fixed Account, Indexed Accounts and Subaccounts Substitution of Investments Optional Benefits — Investment Allocation Restrictions for Certain Benefit Riders | ||
Optional Benefits | •
Certain restrictions and limitations apply under the policy’s optional benefits. • Certain optional benefits are only available at policy issuance. |
Additional Information About Standard Benefits (Other than Standard Benefits) |
TAXES | Location
in Statutory Prospectus | |||
Tax Implications | •
You should consult with a tax professional to determine the tax implications of an investment in and payments received under the policy. • If your policy is a modified endowment contract, you may have to pay a tax penalty if you take a withdrawal before age 59½. |
Taxes | ||
CONFLICTS OF INTEREST | ||||
Investment Professional Compensation | In
general, we pay selling firms and their sales representatives compensation for selling the policy. In addition to commissions, we may, in order to promote sales of the policies, pay or provide selling firms with other promotional incentives in cash, credit or other compensation. These promotional incentives or reimbursements may be calculated as a percentage of the selling firm’s aggregate, net or anticipated sales and/or total assets attributable to sales of the policy, and/or may be a fixed dollar amount. Selling firms and their sales representatives may have a financial incentive to recommend the policy over another investment. |
Distribution of the Policy | ||
Exchanges | If you already own an insurance policy, some financial representatives may have a financial incentive to offer you a new policy in place of one you already own. You should only exchange an existing policy if you determine, after comparing the features, fees and risks of both policies, that it is better for you to purchase the new policy rather than continue to own your existing policy. | For additional information, see 1035 exchanges under Other Tax Considerations |
• | A Fixed Account, |
• | Indexed Accounts, or |
• | Subaccounts that invest in underlying Funds. |
• | Flexibility. The policy is designed to be flexible. While the at least one of the Insureds are living, you, as the Owner of the policy, may exercise all of the rights and options described in the policy. You may, within limits, (1) change the amount of insurance, (2) borrow or withdraw amounts you have invested, (3) choose when and how much you invest, (4) choose whether your Policy Value or premium will be added to the Specified Amount when determining proceeds payable to the Beneficiary upon the last surviving Insured’s death, and (5) add or delete certain other optional benefits that we make available by rider to your policy, as permitted. |
• | Accessing Your Money. At any time while the policy is in force, you may fully surrender your policy in return for its Cash Surrender Value. A full surrender will terminate your policy and it cannot be reinstated. At any time after the first policy year, you may partially surrender your policy’s Cash Surrender Value. A partial surrender must be at least $500. Partial surrenders will also reduce your Policy Value and death benefit and will increase your risk of Lapse. Full surrenders may be subject to Surrender Charges and partial surrenders are subject to surrender processing fees. |
• | Death Benefit Options. You must choose between death benefit Option 1, Option 2 or Option 3 at the time of your application. After choosing a death benefit option, you may change it at any time prior to the youngest Insured’s Attained Insurance Age 120. |
• | Death Benefit Option 1: Provides for a death benefit that is equal to the greater of (a) the Specified Amount and (b) a percentage of Policy Value. |
• | Death Benefit Option 2: Provides for a death benefit that is equal to the greater of (a) the Specified Amount plus the Policy Value and (b) a percentage of Policy Value. |
• | Death Benefit Option 3: Provides for a death benefit that is equal to the greater of (a) the lesser of (i) the Specified Amount plus premiums paid, less partial surrenders and any partial surrender fees, or (ii) the Death Benefit Option 3 Limit shown in your Policy Data pages; and (b) a percentage of Policy Value. |
• | Loans. You may take a loan from your policy at any time. The maximum amount of a new loan you may take is 90% of the Cash Surrender Value. The minimum loan you may take is $500. When you take a loan, we remove from your investment options an amount equal to your loan and hold that part of your Policy Value in the Fixed Account as loan collateral. We charge interest on your loan. The loan collateral does not participate in the investment performance of the Subaccounts, nor does it receive indexed interest. Taking a loan may have adverse tax consequences, will reduce the death benefit, and will increase your risk of Lapse. |
• | Tax Treatment. The policy is designed to afford the tax treatment of a qualifying life insurance policy under federal law. Generally, under federal tax law, the death benefit under a qualifying life insurance policy is excludable from the gross income of the Beneficiary. In addition, under a qualifying life insurance policy, cash value builds up on a tax deferred basis and transfers of cash value among the available investment options under the policy may be made income tax free. The tax treatment of policy loans and distributions may vary depending on whether the policy is a modified endowment contract. Neither distributions nor loans from a policy that is not a modified endowment contract are subject to the 10% penalty tax. |
• | Optional Benefit Riders: The policy offers additional benefits, or “riders,” that provide you with supplemental benefits under the policy at an additional cost. . These riders, which are only available at policy issue, include: |
• | Rider that provides a partial waiver of the Surrender Charge upon a full surrender (i.e., Accounting Value Increase Rider). |
• | Policy Split Option Rider that permits a policy to be split into two individual permanent plans of life insurance then offered by us for exchange (i.e., Policy Split Option Rider). |
• | Rider that provides an additional, pre-set death benefit if the last surviving Insured dies during the first four years of a policy (i.e., Four-Year Term Rider). |
• | Additional “Standard” Riders, Features and Services. Additional riders, features and services under the policy are summarized below. There are no additional charges associated with these features and services. |
• | Automated Transfers. This feature allows you to automatically transfer Policy Value from either a Subaccount or the Fixed Account to one or more Subaccounts and the Indexed Accounts on a regular basis. Via automated transfers you can take advantage of a dollar cost averaging strategy where you invest in one or more Subaccounts on a regular basis, for example monthly, instead of investing a large amount at one point in time. This systematic approach can help you benefit from fluctuations in Accumulation Unit values caused by the fluctuations in the value of the underlying Fund. |
• | Asset Rebalancing. The automatic rebalancing feature automatically rebalances your Policy Value in the Subaccounts to correspond to your premium allocation designation. Asset rebalancing does not count towards the number of free transfers per policy year. |
• | No-Lapse Guarantee. Guarantees the policy will remain in force over the No-Lapse Guarantee Period even if the Cash Surrender Value is insufficient to pay the monthly deduction. This feature is in effect so long as certain requirements are met. |
• | Riders that help prevent your policy from Lapsing (i.e., Overloan Protection Benefit). |
• | Policy Value Credit. We may periodically apply a credit to your Policy Value. |
CHARGE | WHEN CHARGE IS DEDUCTED | AMOUNT DEDUCTED | |||
Maximum Sales Charge Imposed on Premiums (Load)(a) | When you pay premium. | 6% of each premium payment. | |||
Premium Taxes | When you pay premium as part of the premium expense charge. | A portion of the premium expense charge is used to pay state premium taxes imposed on us by state and governmental subdivisions. See discussion under “Premium Expense Charge.” | |||
Maximum Deferred Sales Charge (Load)(b) | When you surrender your policy for its full Cash Surrender Value, or the policy Lapses, during the first ten years and for ten years after requesting an increase in the Specified Amount. | Rate per $1,000 of initial Specified Amount: | |||
Minimum: $7.3347 — Female, Standard NonTobacco, Insurance Age 20; Male, Standard NonTobacco, Insurance Age 85. | |||||
Maximum: $36.8476– Female, Standard Tobacco, Insurance Age 68; Male, Standard Tobacco, Insurance Age 68. | |||||
Representative Insured: $18.4595– Female, Super Preferred, Nontobacco, Age 55; Male, Standard Nontobacco, Insurance Age 55. | |||||
Other Surrender Fees(c) | When you surrender part of the value of your policy. | The lesser of: | |||
• $25; or | |||||
• 2% of the amount surrendered. | |||||
Transfer Fees | N/A | N/A | |||
Fees for Express Mail and Electronic Fund Transfers of Loan or Surrender Proceeds | When you take a loan or surrender and Proceeds are sent by express mail or electronic fund transfer. | • $30 — United States. | |||
• $35 — International. | |||||
Interest Rate on Loans | Charged daily and due at the end of the policy year. | • 3% for policy years 1-10; | |||
• 1.00% for policy years 11+ | |||||
Overloan Protection Benefit (OPB) | Upon exercise of the benefit. | 3% of the Policy Value | |||
Policy Split Option Rider (PSO) | Upon exercise of the benefit. | $250 | |||
(a) | We call this the premium expense charge in other places in this prospectus. |
(b) | We call this a Surrender Charge in other places in this prospectus, and it is level for the first five policy years and then it decreases monthly until it reaches $0 at the end of year 10. This charge varies based on individual characteristics. The charges shown in the table may not be representative of the charge you will pay. For information about the charge you would pay, contact your sales representative or RiverSource Life of NY at the address or telephone number shown on the first page of this prospectus. |
(c) | We call this the partial Surrender Charge in other places in this prospectus. |
CHARGE | WHEN CHARGE IS DEDUCTED | AMOUNT DEDUCTED |
Policy Fee | $10 per month for initial Specified Amounts below $2,000,000. | |
Cost of Insurance Charge(a) | Monthly. | Monthly rate per $1,000 of Net Amount at Risk: |
Minimum: $0.00000— Female, Super Preferred, Nontobacco Insurance Age 20; Female, Super Preferred, Nontobacco, Insurance Age 20; Duration 1. | ||
Maximum: $49.01164— Male, Standard Tobacco, Insurance Age 85; Male, Standard Tobacco, Insurance Age 85, Duration 35. | ||
Representative Insured: $0.00001– Female, Super Preferred, Nontobacco, Insurance Age 55; Male, Standard, Nontobacco, Age 55: Duration 1. | ||
Administrative Charge(a) | Monthly. | Rate per $1,000 of initial Specified Amount: |
Minimum: $0.064— Female, Super Preferred Nontobacco, Insurance Age 20; Female, Super Preferred Nontobacco, Insurance Age 20; Durations 1-10. | ||
Maximum: $1.672; Male, Standard Tobacco, Age 85; Male, Standard Tobacco, Insurance Age 85; Durations 1-10 | ||
Representative Insured: Female, Super Preferred Nontobacco, Age 55; Male, Standard Nontobacco, Insurance Age 55. | ||
Current: $0.274 per month, Durations 1-10. | ||
Indexed Account Charge(b) | Monthly. | Annual rate of 0.60% applied monthly. |
Mortality and Expense Risk Charge | Monthly. | Annual rate of 0.00% applied monthly to the Variable Account Value. |
Optional Benefit Charges: | ||
(a) | This charge varies based on individual characteristics. The charges shown in the table may not be representative of the charge you will pay. For information about the charge you would pay, contact your sales representative or RiverSource Life of NY at the address or telephone number shown on the first page of this prospectus. |
(b) | The Indexed Account charge is equal to the sum of the charges for all Indexed Accounts. The charge for an Indexed Account is equal to the current Indexed Account charge for that Indexed Account multiplied by the sum of the Segment values corresponding to that Indexed Account as of the Monthly Date. |
CHARGE | WHEN CHARGE IS DEDUCTED | AMOUNT DEDUCTED |
Accounting Value Increase Rider (AVIR)(a) | Monthly. | Monthly rate per $1,000 of Specified Amount: |
Minimum: $0.0329 — Female, Nontobacco, Insurance Age 85; Male Nontobacco, Insurance Age 85. | ||
Maximum: $0.0475 — Female, Nontobacco, Insurance Ages 35-55; Male Nontobacco, Insurance Ages 35-55. | ||
Representative Insured: $0.0475 — Female, Nontobacco, Age 55; Male, Nontobacco, Insurance Age 55. | ||
Four-Year Term Insurance Rider (FYT)(a)(b) | Monthly. | Monthly rate per $1,000 of Net Amount at Risk: |
Minimum: $0.00000 — Female, Super Preferred, Nontobacco, Insurance Age 20; Female, Super Preferred, Nontobacco, Insurance Age 20, Duration 1. | ||
Maximum: $2.46005 — Male, Standard Tobacco, Insurance Age 85; Male, Standard Tobacco, Insurance Age 85; Duration 4. | ||
Representative Insured: $0.00001 – Female, Super Preferred Nontobacco, Insurance Age 55; Male, Standard Nontobacco, Age 55; Duration 1. | ||
(a) | This charge varies based on individual characteristics. The charges shown in the table may not be representative of the charge you will pay. For information about the charge you would pay, contact your sales representative or RiverSource Life of NY at the address or telephone number shown on the first page of this prospectus. |
(b) | This rider will terminate if one of the following circumstances occurs: (1) four-year Anniversary date shown in the policy; or (2) if the PSO rider is exercised. |
Total Annual Fund Expenses | Minimum(%) | Maximum(%) |
(expenses deducted from the fund assets, including management fees, distribution and/or service (12b-1) fees and other expenses) | 0.26 | 4.14 |
Policy Risk | What It Means |
Risks of Poor Investment Performance | If you direct your Net Premiums or transfer your Policy’s Value to a Subaccount that drops in value: |
• You can lose cash values due to adverse investment experience. There is no minimum guaranteed cash value under the Subaccounts of the Variable Account. | |
• If the death benefit option is option 2, the death benefit could decrease from the death benefit on the previous Valuation Date due to adverse investment experience (but at no time will it be less than the Specified Amount). | |
• Your policy could Lapse due to adverse investment experience if the NLG is in not effect and you do not pay the premiums needed to maintain coverage. | |
The Policy is Unsuitable as a Short-term Savings Vehicle | The policy is a long-term investment that provides a death benefit that we pay to the Beneficiary upon the last surviving Insured’s death. |
The policy is not suitable as a short-term investment. Your policy has little or no Cash Surrender Value in the early policy years. Surrender Charges apply to this policy for the first ten years. A new schedule of Surrender Charges will apply for ten years after an increase in the Specified Amount. Surrender Charges can significantly reduce Policy Values. During early policy years the Cash Surrender Value may be less than the premiums you pay for the policy. | |
Your ability to take partial surrenders is limited. You cannot take partial surrenders during the first policy year. | |
Risks of Policy Lapse | If you do not pay the premiums needed to maintain coverage: |
• We will not pay a death benefit if your policy Lapses. | |
• Also, the Lapse may have adverse tax consequences. (See “Tax Risk.”) | |
Your policy may Lapse due to Surrender Charges. | |
• Surrender Charges affect the surrender value, which is a measure we use to determine whether your policy will enter a grace period (and possibly Lapse, which may have adverse tax consequences, see “Tax Risk”). A partial surrender will reduce the Policy Value and the death benefit and may terminate the NLG. | |
If you take a loan against your policy. | |
• Taking a loan increases the risk of: | |
— policy Lapse (which may have adverse tax consequences, see “Tax Risk”); | |
— a permanent reduction of Policy Value; | |
— reducing the death benefit. | |
• Taking a loan may also terminate the NLG. | |
Your policy can Lapse due to poor investment performance. |
Policy Risk | What It Means |
• Your policy could Lapse due to adverse investment experience if the NLG is not in effect and you do not pay the premiums needed to maintain coverage. | |
• The Lapse may have adverse tax consequences (See “Tax Risk”). | |
Exchange/Replacement Risk | You exchange or replace another policy to buy this one. |
• You may pay Surrender Charges on the old policy. | |
• The new policy has Surrender Charges, which may extend beyond those in the old policy. | |
• The new policy’s Surrender Charges may be higher than the Surrender Charges in old policy. | |
• You may be subject to new incontestability and suicide periods on the new policy. | |
• You may be in a higher insurance risk rating category in the new policy which may increase the cost of the policy. | |
• If a partial surrender is taken prior to the exchange, you may have adverse tax consequences. | |
• The exchange may have adverse tax consequences. (See “Tax Risk.”) | |
You use cash values or dividends from another policy to buy this one, without fully surrendering the other policy. | |
• If you borrow from another policy to buy this one, the loan reduces the death benefit on the other policy. If you fail to repay the loan and accrued interest, you could lose the other coverage and you may be subject to income tax if the policy Lapses or is surrendered with a loan against it. You may have adverse tax consequences. (See “Tax Risk.”) | |
• If you surrender cash value from another policy to buy this one, you could lose coverage on the other policy. Also, the surrender may be subject to income tax. You may have adverse tax consequences. (See “Tax Risk.”) | |
Limitations on Access to Cash Value Through Withdrawals | Your
ability to take partial surrenders is limited. You cannot take partial surrenders during the first policy year. |
Possibility of Adverse Tax Consequences | A policy may be classified as a “modified endowment contract” (MEC) for federal income tax purposes when issued. If a policy is not a MEC when issued, certain changes you make to the policy may cause it to become a MEC. |
• Any taxable earnings come out first on surrenders or loans from a MEC policy or an assignment or pledge of a MEC policy. Investment in the policy comes out second. Federal income tax on these earnings will apply. State and local income taxes may also apply. If you are under age 59½, a 10% penalty tax may also apply to these earnings. | |
If you exchange or replace another policy to buy this one. | |
• If you replace the old policy and it is not part of an exchange under Section 1035 of the Code, there may be adverse tax consequences if the total Policy Value (before reductions for outstanding loans, if any) exceeds your investment in the old policy. |
Policy Risk | What It Means |
• If you replace the old policy as part of an exchange under Section 1035 of the Code and there is a loan on the old policy, there may be adverse tax consequences if the total Policy Value (before reductions for the outstanding loan) exceeds your investment in the old policy. | |
• The new policy may be or may become a MEC even if the old policy was not a MEC. See discussion under “Modified Endowment Contracts”. | |
• The exchange may require a portion of the cash value of the old policy to be distributed in order to qualify the new policy as a life insurance policy for federal tax purposes. | |
If your policy Lapses or is fully surrendered with an outstanding policy loan, you may experience a significant tax cost. | |
• You will be taxed on any earnings in the policy. Generally, a policy has earnings to the extent the cash value plus any outstanding loans exceeds the investment in the contract. | |
• For non-MEC policies, it could be the case that a policy with a relatively small existing cash value could have significant as yet untaxed earnings that will be taxed upon Lapse or surrender of the policy. | |
• For MEC policies, earnings are the remaining earnings (any earnings that have not been previously taxed) in the policy, which could be a significant amount depending on the policy. | |
The investments in the Subaccount are not adequately diversified. | |
• If a policy fails to qualify as a life insurance policy because it is not adequately diversified, the policyholder must include in gross income the “income on the contract” (as defined in Section 7702(g) of the Code). | |
Congress may change how a life insurance policy is taxed at any time. | |
The interpretation of current tax law is subject to change by the Internal Revenue Service (IRS) or the courts at any time. | |
• You could lose any or all of the specific federal income tax attributes and benefits of a life insurance policy including tax-deferred accrual of cash values and income tax free death benefits. | |
• For non-MEC policies you could lose your ability to take non-taxable distributions or loans from the policy. | |
• Typically, changes of this type are prospective only, but some or all of the attributes could be affected. | |
The IRS may determine that you are the Owner of the Fund shares held by our Variable Account. | |
• You may be taxed on the income of each Subaccount to the extent of your interest in the Subaccount. | |
Fund Risks | A comprehensive discussion of the risks of each Fund in which the Subaccounts invest may be found in each Fund’s prospectus. Please refer to the prospectuses for the Funds for more information. The investment advisers cannot guarantee that the Funds will meet their investment objectives. |
Policy Risk | What It Means |
Market Risk | Variable life insurance is a complex vehicle that is subject to market risk, including the potential loss of principal invested. |
• You may experience loss in Policy Value due to factors that affect the overall performance of the financial markets. | |
Financial Strength and Claims Paying Ability Risk | All insurance benefits, including the death benefit, and all guarantees, including those related to the Fixed Account and Indexed Accounts, are general account obligations that are subject to the financial strength and claims paying ability of RiverSource of New York. |
Effects of COVID-19 Pandemic | The coronavirus disease 2019 (“COVID-19”) public health crisis presents ongoing significant economic and societal disruption, and has driven significant volatility in the equity and interest rate markets. Any periods of continued high market volatility, and your individual circumstances (e.g., your selected allocations and the timing of any purchase payments, transfers, or withdrawals), will affect values under your policy. As part of how we maintain our strong financial strength and claims-paying ability, we continue to reserve amounts for our contractual obligations in accordance with significant state solvency regulations. The extent to which the COVID-19 pandemic may impact financial markets, investment performance under your policy, and our financial strength and claims-paying ability will depend on future developments, which are highly uncertain and cannot be estimated, including the scope and duration of the pandemic and actions taken by governmental authorities, market participants, and other third parties in response to the pandemic. |
We have implemented comprehensive strategies to address the operating environment spurred by the pandemic. To promote the safety and security of our employees and to assure the continuity of our business operations, we have implemented a work from home protocol for virtually all of our employee population, restricted business travel, and provided resources for complying with the guidance from the World Health Organization, the U.S. Centers for Disease Control and government authorities. We have been satisfying elevated customer service volumes and our operations teams have continued to operate successfully and without disruptions in service. Our pandemic strategy is flexible and scalable and takes into consideration that a pandemic could be widespread and may occur in multiple waves, affecting different communities at different times with varying levels of severity. We cannot, however, predict the impact that natural or man-made disasters and catastrophes, including the COVID-19 pandemic, may have over near- or longer-term periods. | |
Cyber Security and Systems Integrity | Increasingly, businesses are dependent on the continuity, security, and effective operation of various technology systems. The nature of our business depends on the continued effective operation of our systems and those of our business partners. This dependence makes us susceptible to operational and information security risks from cyber-attacks. |
These risks may include the following: |
Policy Risk | What It Means |
• the corruption or destruction of data; | |
• theft, misuse or dissemination of data to the public, including your information we hold; and | |
• denial of service attacks on our website or other forms of attacks on our systems and the software and hardware we use to run them. | |
These attacks and their consequences can negatively impact your policy, your privacy, your ability to conduct transactions on your policy, or your ability to receive timely service from us. There can be no assurance that we, the underlying Funds in your policy, or our other business partners will avoid losses affecting your policy due to any successful cyber-attacks or information security breaches. | |
Conflict of Interest Risks Related to Certain Funds Advised by Columbia Management | We are an affiliate of Ameriprise Financial, Inc., which is the parent company of Columbia Management Investment Advisers, LLC (Columbia Management). Columbia Management acts as investment adviser to several Fund of funds, including managed volatility Funds. As such, it retains full discretion over the investment activities and investment decisions of the Funds. These Funds invest in other registered mutual funds. In providing investment advisory services for the Funds and the underlying funds in which those Funds respectively invest, Columbia Management is, together with its affiliates, including us, subject to competing interests that may influence its decisions. These competing interests typically arise because Columbia Management or one of its affiliates serves as the investment adviser to the underlying Funds and may provide other services in connection with such underlying Funds, and because the compensation we and our affiliates receive for providing these investment advisory and other services varies depending on the underlying Fund. |
Managed Volatility Funds’ Risks | Managed volatility Funds employ a strategy designed to reduce overall volatility and downside risk. These Funds may also be used in conjunction with guaranteed living benefit riders we offer with various annuity contracts. Conflicts may arise because the manner in which these Funds and their strategies are executed by Columbia Management are expected to benefit us by reducing our financial risk and expense in offering guaranteed living benefit riders. Managed volatility Funds employ a strategy to reduce overall volatility and downside risk when markets are declining and market volatility is high. A successful strategy may result in less gain in your Policy Value during rising markets with higher volatility when compared to Funds not employing a managed volatility strategy. Although an investment in the managed volatility Funds may mitigate declines in your Policy Value due to declining equity markets, the Funds’ investment strategies may also curb or decrease your Policy Value during periods of positive performance by the equity markets. There is no guarantee that any of the Funds’ strategies will be successful. Costs associated with running a managed volatility strategy may also adversely impact the performance of managed volatility Funds. |
• | providing the insurance benefits of the policy; |
• | issuing the policy; |
• | administering the policy; |
• | assuming certain risks in connection with the policy; and |
• | distributing the policy. |
Lapse
or surrender at beginning of year |
Maximum
Surrender Charge |
1 | $27,689.23 |
2 | 27,689.23 |
3 | 27,689.23 |
4 | 27,689.23 |
5 | 27,689.23 |
6 | 27,227.12 |
7 | 21,688.81 |
8 | 16,151.66 |
9 | 10,613.35 |
10 | 5,076.20 |
11 | 0.00 |
• | you do not specify the accounts from which you want us to take the monthly deduction; or |
• | the value in the Fixed Account or any Subaccount is insufficient to pay the portion of the monthly deduction you have specified. |
1. | Cost of Insurance: primarily, this is the cost of providing the death benefit under your policy. It depends on: |
• | the amount of the death benefit; |
• | the Policy Value; and |
• | the cost of insurance rate. |
“a” | is the monthly cost of insurance rate based on the each Insured’s Insurance Age, duration, sex and Risk Classification. Generally, the cost of insurance rate will increase as the Attained Insurance Age of each of the Insureds increases. |
We set the rates based on our expectations of mortality, future investment earnings, persistency and expenses. Our current monthly cost of insurance rates are less than the maximum monthly cost of insurance rates guaranteed in the policy. We reserve the right to change rates from time to time; any change will apply to all individuals of the same Risk Classification. However, rates will not exceed the guaranteed maximum monthly cost of insurance rates shown in your policy. All rates are based on the 2017 Commissioners Standard Ordinary (CSO) Smoker and Nonsmoker Mortality Tables, Age Nearest Birthday. | |
“b” | is the death benefit on the Monthly Date divided by 1.0008295381 (which reduces our Net Amount at Risk, solely for computing the cost of insurance, by taking into account assumed monthly earnings at an annual rate of 1%). |
“c” | is the Policy Value on the Monthly Date. At this point, the Policy Value has been reduced by the administrative charge, mortality and expense risk charge, the policy fee and any charges for optional riders. |
“d” | is any flat extra insurance charges we assess as a result of special underwriting considerations. |
(a) × (b) | where: |
12 |
• | Mortality risk — the risk that the cost of insurance charge will be insufficient to meet actual claims. |
• | Expense risk — the risk that the policy fee, administrative charge and the Surrender Charge (described above) may be insufficient to cover the cost of administering the policy. |
CHARGE | WHEN CHARGE IS DEDUCTED | AMOUNT DEDUCTED |
Policy Split Option Rider (PSO) | Upon exercise of the Rider. | $250 |
Overloan Protection Benefit (OPB) | Upon exercise of benefit. | 3% of the Policy Value. |
Four-Year Term Insurance Rider (FYT)(a),(b) | Monthly. | Monthly rate per $1,000 of the cost of insurance amount: |
Minimum: $0.00000 — Female, Super Preferred, Nontobacco, Insurance Age 20; Female, Super Preferred, Nontobacco, Insurance Age 20, Duration 1. | ||
Maximum: $2.3592616 — Male, Standard Tobacco, Insurance Age 85; Male, Standard Tobacco, Insurance Age 85; Duration 4. | ||
Representative Insured: $0.0000147 – Female, Super Preferred Nontobacco, Insurance Age 55; Male, Standard Nontobacco, Age 55; Duration 1. | ||
Accounting Value Increase Rider (AVIR)(a) | Monthly. | Monthly rate per $1,000 of Specified Amount: |
Minimum: $0.0329 — Female, Nontobacco, Insurance, Age 85; Male Nontobacco, Insurance Age 85. | ||
Maximum: $0.0475 — Female, Nontobacco, Insurance Ages 35-55; Male Nontobacco, Insurance Ages 35-55. | ||
Representative Insured: $0.0475 — Female, Nontobacco, Age 55; Male, Nontobacco, Insurance Age 55. | ||
(a) | This charge varies based on individual characteristics. The charges shown in the table may not be representative of the charge you will pay. For information about the charge you would pay, contact your sales representative or RiverSource of New York at the address or telephone number shown on the first page of this prospectus. |
(b) | This rider will terminate if one of the following circumstances occurs: (1) four-year Anniversary date shown in the policy; or (2) if the PSO rider is exercised. |
• | Surrender Charges; |
• | cost of optional insurance benefits; |
• | policy fees; |
• | administrative charges; |
• | mortality and expense risk charges; |
• | Indexed Account charges; |
• | cost of insurance charges; and |
• | annual operating expenses of the Funds, including management fees and other expenses. |
• | diluting the value of an investment in an underlying Fund in which a Subaccount invests; |
• | increasing the transaction costs and expenses of an underlying Fund in which a Subaccount invests; and |
• | preventing the investment adviser(s) of an underlying Fund in which a Subaccount invests from fully investing the assets of the Fund in accordance with the Fund’s investment objectives. |
• | requiring transfer requests to be submitted only by first-class U.S. mail; |
• | not accepting hand-delivered transfer requests or requests made by overnight mail; |
• | not accepting telephone or electronic transfer requests; |
• | requiring a minimum time period between each transfer; |
• | not accepting transfer requests of an agent acting under power of attorney; |
• | limiting the dollar amount that you may transfer at any one time; |
• | suspending the transfer privilege; or |
• | modifying instructions under an automated transfer program to exclude a restricted Fund if you do not provide new instructions. |
• | Each Fund may restrict or refuse trading activity that the Fund determines, in its sole discretion, represents market timing. |
• | Even if we determine that your transfer activity does not constitute market timing under the market timing policies described above which we apply to transfers you make under the policy, it is possible that the underlying Fund’s market timing policies and procedures, including instructions we receive from a Fund, may require us to reject your transfer request. For example, while we will attempt to execute transfers permitted under any asset allocation, dollar-cost averaging or asset rebalancing program that may be described in this prospectus, we cannot guarantee that an underlying Fund’s market timing policies and procedures will do so. Orders we place to purchase Fund shares for the Variable Account are subject to acceptance by the Fund. We reserve the right to reject without prior notice to you any transfer request if the Fund does not accept our order. |
• | Each underlying Fund is responsible for its own market timing policy, and we cannot guarantee that we will be able to implement specific market timing policies and procedures that a Fund has adopted. As a result, a Fund’s returns might be adversely affected, and a Fund might terminate our right to offer its shares through the Variable Account. |
• | Funds that are available as investment options under the policy may also be offered to other intermediaries who are eligible to purchase and hold shares of the Fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a Fund’s market timing policies, we cannot guarantee that other intermediaries purchasing that same Fund’s shares will do so, and the returns of that Fund could be adversely affected as a result. |
• | You must make transfers from the Fixed Account and any subaccounts during a 30-day period starting on a Policy Anniversary, except for automated transfers, which can be set up for monthly, quarterly or semiannual transfer periods. If the amount in the Fixed Account is less than $100, the entire amount can be transferred at any time. |
• | If we receive your request to transfer amounts from the Fixed Account within 30 days before the Policy Anniversary, the transfer will become effective on the anniversary. |
• | If we receive your request on or within 30 days after the Policy Anniversary, the transfer will be effective on the day we receive it. |
• | We will not accept requests for transfers from the Fixed Account at any other time. |
• | If you have made a transfer from the Fixed Account to one or more Subaccounts, you may not make a transfer from those Subaccounts back to the Fixed Account until the next Policy Anniversary. |
• | For mail and telephone transfers — $250 or the entire Subaccount balance, whichever is less. |
• | For automated transfers — $50. |
• | For mail and telephone transfers — $250 or the entire Fixed Account balance minus any outstanding Indebtedness, whichever is less. |
• | For automated transfers — $50. |
• | no transfers from the Fixed Account or Subaccounts to any Indexed Account will be allowed; and |
• | Indexed Account premium allocation percentages will change to allocate all premium and loan repayments to the Fixed Account. |
• | from an Indexed Account Segment prior to Segment maturity, except transfers due to policy loans taken or interest charged on Indebtedness; |
• | from the Fixed Account or any Subaccount to any Indexed Account when the policy is in a transfer restriction period; |
• | from the Fixed Account to any Subaccount or Indexed Account after the youngest Insured’s Attained Insurance Age 120 anniversary. |
• | Only one automated transfer arrangement can be in effect at any time. |
• | You may transfer all or part of the value of a Subaccount to one or more of the other Subaccounts, one or more of the Indexed Accounts and/or to the Fixed Account. |
• | You may transfer all or part of the Fixed Account Value, minus Indebtedness, to one or more of the Subaccounts and/or one or more of the Indexed Accounts. |
• | Either the Fixed Account or one or more of the Subaccounts can be used as the source of Funds for any automated transfer arrangement. The Indexed Accounts may not be used as the source of Funds for any automated transfer arrangement. |
• | You can start or stop this service by written or phone request. You must allow seven days for us to change any instructions that are currently in place. |
• | The minimum transfer amount is $50. |
• | You cannot make automated transfers from the Fixed Account to one or more Subaccounts in an amount that, if continued, would deplete the Fixed Account within 12 months. There is no such restriction on automated transfer arrangements that transfer value from the Fixed Account to one or more of the Indexed Accounts only. |
• | If your policy has entered a transfer restriction period that will last for 12 months, during this period transfers from the Fixed Account or the Subaccounts to any Indexed Account will not be allowed. Any automated transfer arrangement that moves money to an Indexed Account will be terminated. Premiums and loan repayments allocated to an Indexed Account during this period will be redirected to the Fixed Account. |
• | If you made a transfer from the Fixed Account to one or more Subaccounts, you may not make a transfer from those Subaccounts back to the Fixed Account until the next Policy Anniversary. |
• | If you submit your automated transfer request with an application for a policy, automated transfers will not take effect until the policy is issued. |
• | The balance in any account from which you make an automated transfer must be sufficient to satisfy your instructions. If not, we will stop the automated arrangement. |
• | Automated transfers are subject to all other policy provisions and terms including provisions relating to the transfer of money between the Fixed Account and the Subaccounts. (Exception: The maximum number of transfers per year provision does not apply to automated transfers.) |
• | You may make automated transfers by choosing a schedule we provide. |
By
investing an equal number of dollars each month… |
Month | Amount
Invested |
Accumulation
Unit Value |
Number
of Units Purchased | |
Jan | $ 100 | $ 20 | 5.00 | ||
Feb | 100 | 18 | 5.56 | ||
you
automatically buy more units when the per unit market price is low… |
Mar | 100 | 17 | 5.88 | |
→ | Apr | 100 | 15 | 6.67 | |
May | 100 | 16 | 6.25 | ||
June | 100 | 18 | 5.56 | ||
July | 100 | 17 | 5.88 | ||
and
fewer units when the per unit market price is high. |
Aug | 100 | 19 | 5.26 | |
→ | Sept | 100 | 21 | 4.76 | |
Oct | 100 | 20 | 5.00 |
• | Investment objectives: The investment managers and advisers cannot guarantee that the Funds will meet their investment objectives. Please read the Funds’ prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. |
• | Fund name and management: A Fund underlying your policy in which a Subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying Fund is not the same as any publicly-traded retail mutual fund. Each underlying Fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying Fund may differ significantly from any publicly-traded retail mutual fund. |
• | Eligible purchasers: All Funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. The Funds are not available to the public (see “Fund name and management” above). Some Funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future for tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available Funds simultaneously. Although we and the Fund providers do not currently foresee any such disadvantages, the boards of directors or trustees of each Fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate funds. Please refer to the Funds’ prospectuses for risk disclosure regarding simultaneous investments by variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each Fund intends to comply with the diversification requirements under Section 817(h) of the Code. |
• | Funds available under the policy: We seek to provide a broad array of underlying Funds taking into account the fees and charges imposed by each Fund and the policy charges we impose. We select the underlying Funds in which the Subaccounts initially invest and when there is a substitution (see “Substitution of Investments”). We also make all decisions regarding which Funds to retain in a policy, which Funds to add to a policy and which Funds will no longer be offered in a policy. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to, Fund performance, Fund expenses, classes of Fund shares available, size of the Fund, and investment objectives and investing style of the Fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other funds, and portfolio concentration and sector weightings. We also consider the levels and types of revenue, including but not limited to expense payments |
and non-cash compensation that a Fund, its distributor, investment adviser, subadviser, transfer agent or their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the Fund and support of marketing expenses incurred with respect to the Fund. | |
• | Money market Fund yield: In low interest rate environments, money market Fund yields may decrease to a level where the deduction of fees and charges associated with your policy could result in negative net performance. |
• | Risks and conflicts of interest with certain Funds advised by Columbia Management: We are an affiliate of Ameriprise Financial, Inc., which is the parent company of Columbia Management Investment Advisers, LLC (Columbia Management). Columbia Management acts as investment adviser to several Fund of funds, including managed volatility Funds. As such, it retains full discretion over the investment activities and investment decisions of the Funds. These Funds invest in other registered mutual funds. In providing investment advisory services for the Funds and the underlying funds in which those Funds respectively invest, Columbia Management is, together with its affiliates, including us, subject to competing interests that may influence its decisions. These competing interests typically arise because Columbia Management or one of its affiliates serves as the investment adviser to the underlying Funds and may provide other services in connection with such underlying Funds, and because the compensation we and our affiliates receive for providing these investment advisory and other services varies depending on the underlying Fund. |
• | Volatility and volatility management risk with the managed volatility funds: These Funds invest in other registered mutual funds. In addition, managed volatility Funds employ a strategy designed to reduce overall volatility and downside risk. These types of Funds are available under the policies and one or more of these Funds may be offered in other variable annuity and variable life insurance products offered by us. These Funds may also be used in conjunction with guaranteed living benefit riders we offer with various annuity contracts. |
Conflicts may arise because the manner in which these Funds and their strategies are executed by Columbia Management are expected to benefit us by reducing our financial risk and expense in offering guaranteed living benefit riders. Managed volatility Funds employ a strategy to reduce overall volatility and downside risk when markets are declining and market volatility is high. A successful strategy may result in less gain in your Policy Value during rising markets with higher volatility when compared to Funds not employing a managed volatility strategy. Although an investment in the managed volatility Funds may mitigate declines in your Policy Value due to declining equity markets, the Funds’ investment strategies may also curb or decrease your Policy Value during periods of positive performance by the equity markets. There is no guarantee that any of the Funds’ strategies will be successful. Costs associated with running a managed volatility strategy may also adversely impact the performance of managed volatility Funds. | |
While Columbia Management is the investment adviser to the managed volatility Funds, it provides no investment advice to you as whether an allocation to the Funds is appropriate for you. You must decide whether an investment in these Funds is right for you. Additional information on the Funds, including risks and conflicts of interest, is included in their respective prospectuses. Columbia Management advised Fund of funds and managed volatility Funds and their investment objectives are listed in the table below. | |
• | Revenue we receive from the Funds and potential conflicts of interest: |
Expenses We May Incur on Behalf of the Funds | |
When a Subaccount invests in a Fund, the Fund holds a single account in the name of the Variable Account. As such, the Variable Account is actually the shareholder of the Fund. We, through our Variable Account, aggregate the transactions of numerous policy Owners and submit net purchase and redemption requests to the Funds on a daily basis. In addition, we track individual policy Owner transactions and provide confirmations, periodic statements, and other required mailings. These costs would normally be borne by the Fund, but we incur them instead. | |
A complete list of why we may receive this revenue, as well as sources of revenue, is described in detail below. | |
Payments the Funds May Make to Us | |
We or our affiliates may receive from each of the Funds, or their affiliates, compensation including but not limited to expense payments. These payments are designed in part to compensate us for the expenses we may incur on behalf of the Funds. In addition to these payments, the Funds may compensate us for wholesaling activities or to participate in educational or marketing seminars sponsored by the Funds. | |
The amount, type, and manner in which the revenue from these sources is computed vary by Fund. | |
Conflicts of Interest These Payments May Create | |
When we determined the charges to impose under the policies, we took into account anticipated payments from the Funds. If we had not taken into account these anticipated payments, the charges under the policies would have been higher. Additionally, the amount of payment we receive from a Fund or its affiliate may create an incentive for us to include that Fund as an investment option and may influence our decision regarding which Funds to include in the Variable Account as Subaccount options for policy Owners. Funds that offer lower payments or no payments may also have corresponding expense structures that are lower, resulting in decreased overall fees and expenses to shareholders. |
We offer Funds managed by our affiliates Columbia Management and Columbia Wanger Asset Management, LLC (Columbia Wanger). We have additional financial incentive to offer our affiliated Funds because additional assets held by them generally results in added revenue to us and our parent company, Ameriprise Financial, Inc. Additionally, employees of Ameriprise Financial, Inc. and its affiliates, including our employees, may be separately incented to include the affiliated Funds in the products, as employee compensation and business unit operating goals at all levels are tied to the success of the company. Currently, revenue received from our affiliated Funds comprises the greatest amount and percentage of revenue we derive from payments made by the Funds. | |
The Amount of Payments We Receive from the Funds | |
We or our affiliates receive revenue which ranges up to 0.65% of the average daily net assets invested in various Funds offered through this and other variable life insurance and annuity contracts we and our affiliates issue. | |
Why revenues are paid to us: In accordance with applicable laws, regulations and the terms of the agreements under which such revenue is paid, we or our affiliates may receive revenue from the Funds, including but not limited to expense payments and non-cash compensation, for various purposes: |
• | Training and educating sales representatives who sell the policies. |
• | Granting access to our employees whose job it is to promote sales of the policies by authorized selling firms and their sales representatives, and granting access to sales representatives of our affiliated selling firms. |
• | Activities or services we or our affiliates provide that assist in the promotion and distribution of the policies including promoting the Funds available under the policies to policy Owners, authorized selling firms and sales representatives. |
• | Providing sub-transfer agency and shareholder servicing to policy Owners. |
• | Promoting, including and/or retaining the Fund’s investment portfolios as underlying investment options in the policies. |
• | Furnishing personal services to policy Owners, including education of policy Owners regarding the Funds, answering routine inquiries regarding a Fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the Financial Industry Regulatory Authority (FINRA). |
• | Subaccounting services, transaction processing, recordkeeping and administration. |
• | Assets of the Fund’s adviser, subadviser, transfer agent, distributor or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the Fund or on the actual cost of certain services we provide with respect to the Fund. We may receive this revenue either in the form of a cash payment or it may be allocated to us. |
• | Assets of the Fund’s adviser, subadviser, transfer agent, distributor or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the Fund or on the actual cost of certain services we provide with respect to the Fund. We receive this revenue in the form of a cash payment. |
• | laws or regulations change; |
• | the existing Funds become unavailable; or |
• | in our judgment, the Funds no longer are suitable (or are no longer the most suitable) for the Subaccounts. |
• | add new Subaccounts; |
• | combine any two or more Subaccounts; |
• | transfer assets to and from the Subaccounts or the Variable Account; and |
• | eliminate or close any Subaccounts. |
• | cease offering any Subaccount; |
• | add or remove Variable Accounts; |
• | combine the assets of the Variable Account with the assets of any of our other separate accounts; |
• | register or deregister the Variable Account; |
• | operate the Variable Account as a management investment company, unit investment trust, or any other form permitted under securities or other law; |
• | run the Variable Account under the direction of a committee, board, or other group; or |
• | make any changes required by the Investment Company Act of 1940, other federal securities laws or state insurance laws. |
Assumptions | |
Segment Growth Cap: | 7% |
Segment Floor: | 0% |
Segment Participation Rate: | 100% |
Average Segment Value: | $5,000 |
Starting S&P 500 Index value: | 1,000 |
Ending S&P 500 Index value: | 1,200 |
( | 1200 | –1 | ) | = | 20% |
1000 |
a) | 20% (Index Growth Rate) x 100% (Segment Participation Rate) = 20% |
b) | Segment Growth Cap of 7%, but not less than Segment Floor of 0% |
Starting S&P 500 Index value: | 1,000 |
Ending S&P 500 Index value: | 900 |
( | 900 | –1 | ) | = | -10% |
1000 |
a) | -10% (Index Growth Rate) x 100% (Segment Participation Rate) = -10% |
b) | Segment Growth Cap of 7%, but not less than Segment Floor of 0% |
Starting S&P 500 Index value: | 1,000 |
Ending S&P 500 Index value: | 1,050 |
( | 1050 | –1 | ) | = | 5% |
1000 |
a) | 5% (Index Growth Rate) x 100% (Segment Participation Rate) = 5% |
b) | Segment Growth Cap of 7%, but not less than floor of 0% |
• | select a Specified Amount of insurance; |
• | select a death benefit option; |
• | designate a Beneficiary; and |
• | state how premiums are to be allocated among the Fixed Account, the Indexed Accounts and the Subaccounts. |
The two tests are:
• | The date we mail the policy from our Service Center. |
• | The Policy Date (only if the policy is issued in force). |
• | The date your sales representative delivers the policy to you as evidenced by our policy delivery receipt, which you must sign and date. |
• | the Specified Amount; |
• | the Insureds’ genders; |
• | the Insureds’ issue ages; |
• | the Insureds’ Risk Classifications; |
• | premium frequency; and |
• | the death benefit option. |
• | the sum of your Net Premiums, transfer amounts (including loan transfers), Segment maturity reallocations, and any applicable policy value credit allocated to the Fixed Account; plus |
• | interest credited; minus |
• | the sum of amounts surrendered (including any applicable Surrender Charges) and amounts transferred out of the Fixed Account (including loan transfers); minus |
• | any portion of the monthly deduction for the coming month that is allocated to the Fixed Account. |
• | the sum of your Net Premiums, Segment maturity reallocations, and any applicable policy value credit allocated to the Indexed Account; plus |
• | indexed interest credited; minus |
• | the sum of amounts surrendered (including any applicable Surrender Charges) and amounts transferred out (due to loans taken and interest charged on Indebtedness), Segment maturity reallocations allocated to the Fixed Account, any Subaccounts, or another Indexed Account; minus |
• | any portion of the monthly deduction for the coming month that is allocated to the Indexed Account. |
• | adding the Fund’s current net asset value per share, plus the per share amount of any dividend or capital gain distributions, to obtain a current adjusted net asset value per share; then |
• | dividing that sum by the previous adjusted net asset value per share. |
• | additional Net Premiums allocated to the Subaccounts; |
• | any applicable policy value credit allocated to the Subaccounts; |
• | transfers into or out of the Subaccounts; |
• | amounts transferred from Indexed Accounts at Segment maturity; |
• | partial surrenders and partial surrender fees; |
• | Surrender Charges; and |
• | monthly deductions. |
• | changes in underlying Fund net asset value; |
• | Fund dividends distributed to the Subaccounts; |
• | Fund capital gains or losses; and |
• | Fund operating expenses. |
• | the Interim Accounts, proportionally, based on the Interim Account values until exhausted; then |
• | the Segments of the Indexed Accounts starting with the most recently opened Segment(s); then |
• | the next most recently opened Segment(s), and will continue in this manner until the amount required to satisfy the deduction has been met. |
• | the sum of premiums paid; minus |
• | partial surrenders; minus |
• | outstanding Indebtedness; equals or exceeds |
• | the NLG Premiums due since the Policy Date. |
• | a written request; |
• | evidence satisfactory to us that both Insureds (or the last surviving Insured) remain insurable and due proof that the first death occurred before the date of Lapse; |
• | payment of the premium we specify; and |
• | payment or reinstatement of any Indebtedness. |
• | the Specified Amount; or |
• | a percentage of the Policy Value. The percentage is designed to ensure that the policy meets the provisions of federal tax law, which require a minimum death benefit in relation to Policy Value for your policy to qualify as life insurance. |
Attained Insurance Age 120, the death benefit amount is the greater of the following as determined on the Death Benefit Valuation Date:
• | the Policy Value plus the Specified Amount; or |
• | a percentage of Policy Value. The percentage is designed to ensure that the policy meets the provisions of federal tax law, which require a minimum death benefit in relation to Policy Value for your policy to qualify as life insurance. |
1. | the lesser of: |
• | the Specified Amount plus premiums paid, less partial surrenders and any partial surrender fees; or |
• | the Death Benefit Option 3 Limit shown under Policy Data; or |
2. | a percentage of the Policy Value. The percentage is designed to ensure the policy meets the provisions of federal tax law, which require a minimum death benefit in relation to the Policy Value for your policy to qualify as life insurance. |
Example | Option 1 | Option 2 | Option 3 |
Specified Amount | $100,000 | $100,000 | $100,000 |
Policy Value | $ 5,000 | $ 5,000 | $ 5,000 |
Premiums paid | $ 4,000 | $ 4,000 | $ 4,000 |
Death benefit | $100,000 | $105,000 | $104,000 |
Policy Value increases to | $ 8,000 | $ 8,000 | $ 8,000 |
Death benefit | $100,000 | $108,000 | $104,000 |
Policy Value decreases to | $ 3,000 | $ 3,000 | $ 3,000 |
Death benefit | $100,000 | $103,000 | $104,000 |
Attained Insurance Age 120 anniversary, the death benefit amount will be the greater of:
• | the death benefit on the youngest Insured’s Attained Insurance Age 120 anniversary, minus any partial surrenders and partial surrender fees occurring after the youngest Insured’s Attained Insurance Age 120 anniversary; or |
• | the Policy Value on the date of death of the last surviving Insured. |
Attained Insurance Age 120 anniversary, you may make a written request to change the death benefit option once per policy year. A change in the death benefit option also will change the Specified Amount. You do not need to provide additional evidence of insurability.
• | Monthly deduction because the cost of insurance charges depends upon the Specified Amount. |
• | Charges for certain optional insurance benefits. |
• | Your monthly deduction will increase because the cost of insurance charge depends upon the Specified Amount. |
• | Charges for certain optional insurance benefits may increase. |
• | The NLG premiums will increase. |
• | The administrative charge will increase. |
• | The Surrender Charge will increase. A new schedule of Surrender Charges will apply to the amount of any increase in the Specified Amount. |
• | Only one decrease per policy year is allowed. |
• | We reserve the right to limit any decrease to the extent necessary to qualify the policy as life insurance under the Code. |
• | After the decrease, the Specified Amount may not be less than the minimum amount shown in the policy. The minimum amounts shown in the policy are: |
• | In policy years 2-5, the Specified Amount remaining after the decrease may not be less than 75% of the initial Specified Amount. |
• | In policy years 6 -10, the Specified Amount remaining after the decrease may not be less than 50% of the initial Specified Amount. |
• | In policy years 11-15, the Specified Amount remaining after the decrease may not be less than 25% of the initial Specified Amount. |
• | In policy years 16+, the Specified Amount remaining after the decrease must be at least $1,000. |
Maximum reduction in initial Specified Amount in policy year 10: | $100,000 X .50 = | $ 50,000 |
Maximum reduction in increase in Specified Amount during the fourth policy year of increase: | $100,000 X .25 = | +25,000 |
Maximum permitted reduction in current Specified Amount: | $ 75,000 | |
Current Specified Amount before reduction: | $ 200,000 | |
Minus maximum permitted reduction in current Specified Amount: | –75,000 | |
Specified Amount after reduction | $ 125,000 |
• | Your monthly deduction will decrease because the cost of insurance charge depends upon the Specified Amount. |
• | Charges for certain optional insurance benefits may decrease. |
• | The NLG premiums will decrease. |
• | The administrative charge will not change. |
• | The Surrender Charge will not change. |
• | First from the initial Specified Amount when the policy was issued, and |
• | Then from the increases successively following the initial Specified Amount. |
• | the Policy Value on the date of death; plus |
• | the amount of insurance that would have been purchased by the cost of insurance deducted for the policy month during which death occurred, if that cost had been calculated using rates for the correct age and sex; minus |
• | the amount of any outstanding Indebtedness on the date of death. |
Name | Purpose | Is
the Benefit Standard or Optional |
Brief Description of Restrictions / Limitations |
Four-Year Term Insurance Rider (FYT) | FYT provides a Specified Amount of insurance. The FYT death benefit is paid if both Insureds die during the first four policy years. | Optional | •
FYT is only available at issue. • FYT automatically terminates on the four-year Policy Anniversary of the policy. • FYT is not available if either Insured is uninsurable. |
Policy Split Option Rider (PSO) | PSO permits a policy to be split into two individual permanent plans of life insurance then offered by us for exchange, one on the life of each Insured. | Optional | •
PSO is only available at issue. • PSO is not available for Insureds in certain Risk Classifications. • Both Insureds must be between Insurance Ages 20 - 75. • If the policy and this rider are still in force at the oldest Insureds’ 80th insurance anniversary, this rider will automatically terminate. |
Overloan Protection Benefit (OPB) | Protects the policy from Lapsing as a result of the loan balance exceeding the Policy Value when certain conditions are met. | Standard | •
OPB can only be exercised if the death benefit option 1 is in effect. • The policy must be in force for at least 15 years before the OPB can be exercised. • The policy may not be in the grace period to exercise the OPB. |
Accounting Value Increase Rider (AVIR) | If the policy is fully surrendered while the policy is in force and prior to the expiration date of the rider, we will waive a portion of the Surrender Charge. | Optional | •
This rider is available at time of application only with small business owners. • The waiver does not apply to any Surrender Charge due to increases in Specified Amount, or to partial surrenders. • Surrender Charges will not be waived if the policy is being surrendered in exchange for a new insurance policy or contract. |
Paid Up Insurance Option | You may request that we use the Cash Surrender Value of the policy to purchase an amount of paid-up insurance prior to the youngest Insured’s Attained Insurance Age 120. | Optional | •
When the Paid-Up Insurance option is elected, you will forfeit all rights to make future premium payments and all riders will terminate. • The paid-up insurance policy’s death benefit amount, minus its Cash Surrender Value, cannot be greater than your current policy’s death benefit, minus its Policy Value (both as of the date of the paid-up insurance policy’s purchase). |
1. | The month and date on or next following receipt of your written request for coverage to end; or |
2. | The four-year Policy Anniversary, as shown under Policy Data; or |
3. | The date the policy terminates. |
1. | divorce of the Insureds; or |
2. | the federal tax law is changed resulting in removal of the unlimited marital deduction or reduces by at least 50% the level of the estate taxes payable on death; or |
3. | there is a dissolution of a business partnership between the Insureds; or |
4. | there is a dissolution of a business conducted or owned by the Insureds. |
• | The amount waived is a percentage of the Surrender Charge that would apply to the initial Specified Amount. |
• | The waiver does not apply to any Surrender Charge due to increases in Specified Amount, or to partial surrenders. |
• | Surrender Charges will not be waived if the policy is being surrendered in exchange for a new insurance policy or contract. |
• | The policy has been in force for at least 15 years; and |
• | The youngest Insured’s Attained Insurance Age is at least 75 but not greater than 95; and |
• | Policy Indebtedness must be greater than the Specified Amount and greater than or equal to the Indebtedness percentage shown under Policy Data; and |
• | The Cash Surrender Value is sufficient to pay the exercise charge; and |
• | The death benefit option in effect is option 1; and |
• | The policy has not yet entered the grace period; and |
• | The policy is not a modified endowment contract, as defined by Section 7702A of the Internal Revenue Code, and exercising the benefit does not cause the policy to become a modified endowment contract; and |
• | No current or future distributions will be required from the policy to maintain its qualification for treatment as a life insurance policy under the Internal Revenue Code; and |
• | The sum of partial surrenders taken to date are greater than or equal to the amount that can be withdrawn from the policy without creating adverse tax consequences. |
1. | Premium payments are no longer accepted; however, loan repayments will be accepted. |
2. | Monthly deductions will no longer be taken. |
3. | Partial surrenders will no longer be available. |
4. | Additional loans will no longer be available. |
5. | Any outstanding loan will remain and interest will be charged at the current loan interest rate as shown under Policy Data. |
6. | The NLG will no longer be in effect and cannot be reinstated. |
7. | The death benefit option cannot be changed. |
8. | Changes to the Specified Amount will no longer be allowed. |
9. | Any riders attached to the policy will terminate. |
• | make any changes necessary to maintain the status of the policy as life insurance under the Code; |
• | make other changes required under federal or state law relating to life insurance; |
• | suspend or discontinue sale of the policies; and |
• | comply with applicable law. |
• | 90% of the Policy Value minus Surrender Charges. |
• | For phone requests, if loan Proceeds are being sent to your address of record the maximum loan amount is $100,000. |
• | You will be taxed on any earnings in the policy. Generally, a policy has earnings to the extent the cash value plus any outstanding loans exceeds the investment in the contract. |
• | For non-MEC policies, it could be the case that a policy with a relatively small existing cash value could have significant as yet untaxed earnings that will be taxed upon Lapse or surrender of the policy. |
• | For MEC policies, earnings are the remaining earnings (any earnings that have not been previously taxed) in the policy, which could be a significant amount depending on the policy. |
• | A partial surrender will reduce the Policy Value by the amount of the partial surrender and the partial Surrender Charge. (See “Fee Tables” and “Loads, Fees and Charges.”) |
• | A partial surrender will reduce the death benefit by the amount of the partial surrender and charge, or, if the death benefit is based on the applicable percentage of Policy Value, by an amount equal to the applicable percentage times the amount of the partial surrender. |
• | A partial surrender may terminate the NLG. We deduct the surrender amount from total premiums you paid, which may reduce the total below the level required to keep the the NLG in effect. |
• | If Option 1 is in effect, a partial surrender will reduce the Specified Amount by the amount of the partial surrender and charge. This may cause the policy to become a Modified Endowment Contract. We will deduct this decrease from the current Specified Amount in this order: |
First from the initial Specified Amount when the policy was issued; | |
Then from the increases successively following the initial Specified Amount. | |
• | Because they reduce the Specified Amount, partial surrenders may affect the cost of insurance. We will not allow a partial surrender if it would reduce the Specified Amount below the required minimum. (See “Decreases” under “Proceeds Payable Upon Death.”) |
• | If Option 2 is in effect, a partial surrender does not affect the Specified Amount. |
70500 Ameriprise Financial Center
Minneapolis, MN 55474
• | We answer telephone requests promptly, but you may experience delays when call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative. |
• | We will honor any telephone transfer, loan or partial surrender requests believed to be authentic and will use reasonable procedures to confirm that they are. These include asking identifying questions and recording calls. As long as these procedures are followed, neither we nor our affiliates will be liable for any loss resulting from fraudulent requests. |
• | We make telephone transfers, loans and partial surrenders available automatically. If you do not want telephone transfers, loans and partial surrenders to be made from your account, please write and tell us. |
• | payable to you; |
• | mailed to your address of record. |
• | request that payment be wired to your bank account; |
• | pre-authorization required. |
• | you surrender the policy; or |
• | you take a policy loan; or |
• | the last surviving Insured dies. |
• | the NYSE is closed, except for normal holiday and weekend closings; |
• | trading on the NYSE is restricted according to SEC rules; |
• | an emergency, as defined by SEC rules, makes it impractical to sell securities or to value the net assets of the accounts; or |
• | the SEC permits us to delay payment for the protection of security holders. |
Source of Proceeds | Taxable Portion of Pre-death Proceeds |
Non-Modified Endowment Contracts: | Taxable portion of pre-death Proceeds: |
Full surrender: | You will be taxed on the amount received, plus any Indebtedness, minus your investment in the policy.(1) You will be taxed on any earnings in the policy at the time of full surrender — these earnings may be part of the policy cash value or part of loans previously taken. It could be the case that a policy with a relatively small existing Cash Surrender Value could have significant earnings that will be taxed upon surrender of the policy. |
Lapse: | You will be taxed on any Indebtedness minus your investment in the policy.(1) You will be taxed on any earnings in the policy at the time of Lapse — these earnings may be part of the policy cash value or part of loans previously taken. It could be the case that a policy with a relatively small existing Cash Surrender Value could have significant earnings that will be taxed upon Lapse of the policy. |
Partial Surrenders: | Generally, if the amount received is greater than your investment in the policy,(1) the amount in excess of your investment is taxable. However, during the first 15 policy years, a different amount may be taxable if the partial surrender results in or is necessitated by a reduction in benefits. |
Policy loans and assignments and pledges: | None. (2) |
Modified Endowment Contracts:(3) | Taxable portion of pre-death Proceeds: |
Full surrender: | You will be taxed on the amount received, plus any Indebtedness, minus your investment in the policy.(1) You will be taxed on any earnings in the policy at the time of full surrender — these earnings may be part of the policy cash value or part of loans previously taken. Please note, for modified endowment contracts, it is likely that any earnings taken in previous policy loans were taxable and would be included in the investment in the policy. |
Lapse: | You will be taxed on any Indebtedness minus your investment in the policy.(1) You will be taxed on any earnings in the policy at the time of Lapse — these earning may be part of the policy cash value or part of loans previously taken. |
Partial Surrenders: | You will be taxed on the lesser of: |
• the amount received; or | |
• Policy Value minus your investment in the policy.(1) | |
Policy loans and assignments and pledges: | You will be taxed on the lesser of: |
• the amount of the loan/assignment; or |
Source of Proceeds | Taxable Portion of Pre-death Proceeds |
• Policy Value minus your investment in the policy.(1) | |
Payment Options: Pre-death Proceeds (applicable to non-modified endowment contracts and modified endowment contracts): | Option A: Treated as a full surrender; earnings are taxed and may be subject to an additional 10% penalty tax for modified endowment contracts. Interest is taxed (but not subject to an additional 10% IRS penalty tax). |
Options B and C: A portion of each payment is taxed and a portion is considered a return on investment in the policy(1) and not taxed. Any Indebtedness at the time the option is elected is treated as a partial surrender and earnings are taxed (and may be subject to an additional 10% penalty tax for modified endowment contracts). Payments made after the investment in the policy(1) is fully recovered are taxed (and may be subject to an additional 10% penalty tax for modified endowment contracts). | |
(1) | Investment in the policy is generally equal to premiums paid, minus the nontaxable portion of any previous partial surrenders, plus taxable portion of any previous policy loans. (for non-modified endowment contracts, it is unlikely that any previous policy loans were taxable). |
(2) | However, should the policy later be surrendered or Lapse with outstanding Indebtedness, see discussion related to “full surrender” or “Lapse” under “Source of Proceeds” in the “Non-Modified Endowment Contracts” section shown above for the explanation of tax treatment. |
(3) | Any taxable portion of pre-death Proceeds may be subject to a 10% IRS penalty tax (exceptions apply — see “Penalty tax” under “Modified Endowment Contracts.”) |
• | ask us to refund the excess premium that caused the policy to become a modified endowment contract, plus interest; or |
• | ask us to apply the excess premium to your policy at a later date when it would not cause the policy to become a modified endowment contract. |
• | the distribution occurs on or after the date that the Owner attains age 59½; |
• | the distribution is attributable to the Owner becoming disabled (within the meaning of Section 72(m)(7) of the Code); or |
• | the distribution is part of a series of substantially equal periodic payments made at least once a year over the life (or life expectancy) of the Owner or over the joint lives (or life expectancies) of the Owner and the Owner’s Beneficiary. |
• | The last surviving Insured was an employee at any time during the 12-month period before that Insured’s death; |
• | The Insureds are, at the time the contract is issued a director, a highly compensated employee as defined by reference to the qualified plan rules in Section 414(q) or one of the 35% most highly compensated individuals within the meaning of self-insured health plans; |
• | The death benefits are paid to a member of the family of the last surviving Insured, any individual who is the designated Beneficiary of the Insured under the contract (other than the employer), a trust established for the benefit of any such member of the family or designated Beneficiary, or the estate of the last surviving Insured; or |
• | The amount is used to purchase an equity (or capital or profits) interest in the employer from a family member of the last surviving Insured, an individual who is a designated Beneficiary, a trust established for the benefit of a family member or designated Beneficiary, or the estate of the last surviving Insured. |
• | Is notified in writing that the applicable policyholder intends to insure the employee’s life and of the maximum face amount for which the employee could be insured at the time the contract was issued; |
• | Provides written consent to being insured under the contract and that such coverage may continue after the Insured terminates employment; and |
• | Is informed in writing that an applicable policyholder will be a Beneficiary of any Proceeds payable upon the death of the employee. |
• | Economic Benefit Split Dollar: As a general rule for split-dollar life insurance arrangements that are taxed under the economic benefit regime, the Owner of the life insurance contract is treated as providing economic benefits to the non-owner of the contract. The economic benefit regime generally will govern the taxation of endorsement arrangements. Also, a special rule requires the economic benefit regime to apply (and the loan regime not to apply) to any split-dollar life insurance arrangement if: (i) the arrangement is entered into in connection with the performance of services, and the employee or service provider is not the Owner of the life insurance contract; or (ii) the arrangement is entered into between a donor and a donee (for example, a life insurance trust) and the donee is not the Owner of the life insurance contract. |
The value of the economic benefits, reduced by any consideration paid by the non-owner to the Owner, is treated as transferred from the Owner to the non-owner. The possible economic benefits provided to the non-owner can include the value of current life insurance coverage, any portion of the Cash Surrender Value available to the non-owner, and any other economic benefit. The tax consequences of that transfer will depend on the relationship between the Owner and the non-owner. Thus, the transfer may constitute a payment of compensation, a dividend distribution, a gift, or a transfer having a different tax character. Further, depending on the relationship between or among a non-owner and one or more other persons (including a non-owner or non-owners), the economic benefits may be treated as provided from the Owner to the non-owner and as separately provided from the non-owner to such other person or persons (for example, as a payment of compensation from an employer to an employee and as a gift from the employee to the employee’s child). | |
• | Loan (Collateral Assignment) Split Dollar: Under loan regime, the non-owner of the life insurance contract is treated as loaning premium payments to the Owner of the contract. Except for specified arrangements, the loan regime applies to any split-dollar loan. A payment made pursuant to a split-dollar life insurance arrangement is a split-dollar loan and the Owner and non-owner are treated, respectively, as borrower and lender if (i) the payment is made either directly or indirectly by the non-owner to the Owner; (ii) the payment is a loan under general principles of Federal tax law or, if not a loan under general principles of Federal tax law, a reasonable person would expect the payment to be repaid in full to the non-owner (whether with or without interest); and (iii) the repayment is to be made from, or is secured by, either the policy’s death benefit Proceeds or its Cash Surrender Value, or both. A borrower generally may not deduct any interest on a split-dollar. If the split-dollar loan provides for sufficient interest, then the loan generally is subject to the general rules for debt instruments. |
If a split-dollar loan is a below-market loan, then, in general, the loan is recharacterized as a loan with interest at the applicable Federal rate (AFR), coupled with an imputed transfer by the lender to the borrower. The timing, amount, and characterization of the imputed transfers between the lender and borrower of the loan will depend upon the relationship between the lender and the borrower (for example, the imputed transfer is generally characterized as a compensation payment if the lender is the borrower’s employer), and whether the loan is a demand loan or a term loan. |
• | Only securities broker-dealers (“selling firms”) registered with the SEC and members of the FINRA may sell the policy. |
• | The policies are continuously offered to the public through authorized selling firms. We and RiverSource Distributors have a sales agreement with the selling firm. The sales agreement authorizes the selling firm to offer the policies to the public. We agree to pay the selling firm (or an affiliated insurance agency) for policies its sales representatives sell. The selling firm may be required to return sales commissions under certain circumstances including but not limited to when policies are returned under the free look period. |
— | sponsorship of marketing, educational, due diligence and compliance meetings and conferences we or the selling firm may conduct for sales representatives, including subsidy of travel, meal, lodging, entertainment and other expenses related to these meetings; |
— | marketing support related to sales of the policy including for example, the creation of marketing materials, advertising and newsletters; |
— | providing services to policy Owners; and |
— | funding other events sponsored by a selling firm that may encourage the selling firm’s sales representatives to sell the policy. |
• | We pay the commissions and other compensation described above from our assets. |
• | Our assets may include: |
— | revenues we receive from fees and expenses that you will pay when buying, owning and surrendering the policy (see “Fee Tables”); |
— | compensation we or an affiliate receive from a Fund’s investment adviser, subadviser, distributor or an affiliate of any of these (see “The Variable Account and the Funds — The Funds”); and |
— | revenues we receive from other contracts and policies we sell that are not securities and other businesses we conduct. |
• | You do not directly pay the commissions and other compensation described above as the result of a specific charge or deduction under the policy. However, you may pay part or all of the commissions and other compensation described above indirectly through: |
— | fees and expenses we collect from policy Owners, including Surrender Charges; and |
— | fees and expenses charged by the underlying Funds in which the Subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the Funds or an affiliated person. |
• | give selling firms a heightened financial incentive to sell the policy offered in this prospectus over another investment with lower compensation to the selling firm. |
• | cause selling firms to encourage their sales representatives to sell you the policy offered in this prospectus instead of selling you other alternative investments that may result in lower compensation to the selling firm. |
• | cause a selling firm to grant us access to its sales representatives to promote sales of the policy offered in this prospectus, while denying that access to other firms offering similar policies or other alternative investments which may pay lower compensation to the selling firm. |
• | The selling firm pays its sales representatives. The selling firm decides the compensation and benefits it will pay its sales representatives. |
• | To inform yourself of any potential conflicts of interest, ask your sales representative before you buy how the selling firm and its sales representatives are being compensated and the amount of the compensation that each will receive if you buy the policy. |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks long-term growth of capital | AB VPS Large Cap Growth Portfolio (Class A) AllianceBernstein L.P. | 0.67 | 35.48 | 20.45 | 17.43 |
The Portfolio seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of its underlying index, the Alerian Midstream Energy Select Index (the "Index"). | ALPS | Alerian Energy Infrastructure Portfolio: Class I ALPS Advisors, Inc. | 0.95 | -24.85 | 0.78 | - |
Seeks long-term capital growth. Income is a secondary objective. | American Century VP Value, Class IAmerican Century Investment Management, Inc. | 0.73 | 0.98 | 8.83 | 9.73 |
Seeks high total investment return. | BlackRock
Global Allocation V.I. Fund (Class I) BlackRock Advisors, LLC |
0.76 | 21.00 | 9.42 | 6.86 |
Seeks maximum total investment return through a combination of capital growth and current income. | Columbia
Variable Portfolio - Balanced Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.76 | 17.77 | 10.78 | 10.29 |
Seeks to provide shareholders with total return. | Columbia
Variable Portfolio - Commodity Strategy Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70 | -1.29 | 1.06 | - |
Seeks total return, consisting of long-term capital appreciation and current income. | Columbia
Variable Portfolio - Contrarian Core Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.73 | 22.35 | 14.45 | - |
Seeks to provide shareholders with capital appreciation. | Columbia
Variable Portfolio - Disciplined Core Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.66 | 14.12 | 13.03 | 13.19 |
Seeks to provide shareholders with a high level of current income and, as a secondary objective, steady growth of capital. | Columbia
Variable Portfolio - Dividend Opportunity Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.74 | 1.15 | 8.99 | 8.54 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Non-diversified fund that seeks to provide shareholders with high total return through current income and, secondarily, through capital appreciation. | Columbia
Variable Portfolio - Emerging Markets Bond Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.74 | 7.43 | 6.92 | - |
Seeks to provide shareholders with long-term capital growth. | Columbia
Variable Portfolio - Emerging Markets Fund (Class 1) Columbia Management Investment Advisers, LLC |
1.14 | 33.61 | 16.39 | 5.98 |
Seeks to provide shareholders with maximum current income consistent with liquidity and stability of principal. | Columbia
Variable Portfolio - Government Money Market Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.45 | 0.31 | 0.83 | 0.42 |
Seeks to provide shareholders with high current income as its primary objective and, as its secondary objective, capital growth. | Columbia
Variable Portfolio - High Yield Bond Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.67 | 6.67 | 7.41 | 6.69 |
Seeks to provide shareholders with a high total return through current income and capital appreciation. | Columbia
Variable Portfolio - Income Opportunities Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.64 | 5.90 | 7.01 | 6.39 |
Seeks to provide shareholders with a high level of current income while attempting to conserve the value of the investment for the longest period of time. | Columbia
Variable Portfolio - Intermediate Bond Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.49 | 12.58 | 6.07 | 4.79 |
Seeks to provide shareholders with long-term capital growth. | Columbia
Variable Portfolio - Large Cap Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.73 | 34.74 | 17.94 | 15.76 |
Seeks to provide shareholders with long-term capital appreciation. | Columbia Variable Portfolio - Large Cap Index Fund (Class 1)Columbia Management Investment Advisers, LLC | 0.26 | 18.03 | 14.86 | 13.51 |
Seeks to provide shareholders with a level of current income consistent with preservation of capital. | Columbia
Variable Portfolio - Limited Duration Credit Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.48 | 5.90 | 4.25 | 2.94 |
Seeks total return, consisting of current income and capital appreciation. | Columbia
Variable Portfolio - Long Government/Credit Bond Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.50 | 17.25 | 8.85 | - |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks to provide shareholders with growth of capital. | Columbia
Variable Portfolio - Mid Cap Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.84 | 35.42 | 17.01 | 11.94 |
Seeks to provide shareholders with capital appreciation. | Columbia
Variable Portfolio - Overseas Core Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.84 | 9.12 | 6.47 | 5.23 |
Seeks to provide shareholders with long-term growth of capital. | Columbia
Variable Portfolio - Select Large Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.71 | 7.08 | 11.57 | 11.43 |
Seeks to provide shareholders with long-term growth of capital. | Columbia
Variable Portfolio - Select Mid Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.83 | 7.48 | 9.72 | 9.78 |
Seeks to provide shareholders with long-term capital growth. | Columbia
Variable Portfolio - Select Small Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.85 | 9.19 | 7.53 | 9.02 |
Seeks total return, consisting of current income and capital appreciation. | Columbia Variable Portfolio - Strategic Income Fund (Class 1) Columbia Management Investment Advisers, LLC | 0.69 | 6.82 | 6.40 | 5.28 |
Seeks to provide shareholders with current income as its primary objective and, as its secondary objective, preservation of capital. | Columbia
Variable Portfolio - U.S. Government Mortgage Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.46 | 5.09 | 3.93 | 2.81 |
Seeks to provide shareholders with a high level of current income. | CTIVP
® - American Century Diversified Bond Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; American Century Investment Management, Inc., subadviser. |
0.49 | 8.55 | 5.09 | 4.12 |
Non-diversified fund that seeks to provide shareholders with total return that exceeds the rate of inflation over the long term. | CTIVP
® - BlackRock Global Inflation-Protected Securities Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; BlackRock Financial Management, Inc., subadviser; BlackRock International Limited, sub-subadviser. |
0.60 | 9.37 | 5.59 | 4.48 |
Seeks to provide shareholders with current income and capital appreciation. | CTIVP
® - CenterSquare Real Estate Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; CenterSquare Investment Management LLC, subadviser. |
0.79 | -4.87 | 4.80 | 5.72 |
Seeks to provide shareholders with long-term capital growth. | CTIVP
® - Loomis Sayles Growth Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Loomis, Sayles & Company, L.P., subadviser. |
0.69 | 31.93 | 19.01 | 15.90 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks to provide shareholders with long-term capital growth. | CTIVP
® - MFS® Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Massachusetts Financial Services Company, subadviser. |
0.71 | 3.57 | 10.17 | 10.87 |
Seeks to provide shareholders with long-term capital growth. | CTIVP
® - Morgan Stanley Advantage Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Morgan Stanley Investment Management Inc., subadviser. |
0.68 | 75.91 | 25.81 | 17.90 |
Seeks to provide shareholders with long-term growth of capital and income. | CTIVP
® - T. Rowe Price Large Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; T. Rowe Price Associates, Inc., subadviser. |
0.70 | 2.67 | 9.40 | 9.10 |
Seeks to provide shareholders with total return through current income and capital appreciation. | CTIVP
® - TCW Core Plus Bond Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; TCW Investment Management Company LLC, subadviser. |
0.49 | 8.88 | 4.69 | 3.42 |
Seeks to provide shareholders with long-term growth of capital. | CTIVP
® - Victory Sycamore Established Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Wells Capital Management Incorporated, subadviser. |
0.79 | 8.05 | 11.77 | 11.35 |
Seeks to provide shareholders with current income consistent with capital preservation. | CTIVP
® - Wells Fargo Short Duration Government Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Wells Capital Management Incorporated, subadviser. |
0.44 | 3.73 | 2.01 | 1.55 |
Seeks to provide shareholders with long-term capital growth. | CTIVP
® - Westfield Mid Cap Growth Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Westfield Capital Management Company, L.P., subadviser. |
0.83 | 27.50 | 17.42 | 13.70 |
Seeks capital appreciation. | DWS
Alternative Asset Allocation VIP, Class A DWS Investment Management Americas Inc., adviser; RREEF America L.L.C., subadvisor. |
0.80 | 5.71 | 4.50 | 2.66 |
Seeks long-term capital appreciation. Normally invests primarily in common stocks. Invests in securities of companies whose value FMR believes is not fully recognized by the public. Invests in either "growth" stocks or "value" stocks or both. The fund i | Fidelity
® VIP Contrafund® Portfolio Initial Class Fidelity Management & Research Company (FMR) (the Adviser) is the fund's manager. |
0.61 | 30.57 | 16.19 | 13.52 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks long-term growth of capital. Normally invests primarily in common stocks. Normally invests at least 80% of assets in securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. | Fidelity
® VIP Mid Cap Portfolio Initial Class Fidelity Management & Research Company (FMR) (the Adviser) is the fund's manager. |
0.62 | 18.19 | 11.07 | 9.50 |
Seeks a high level of current income and may also seek capital appreciation. | Fidelity
® VIP Strategic Income Portfolio Initial Class Fidelity Management & Research Company (FMR) (the Adviser) is the fund's manager. |
0.67 | 7.52 | 6.27 | 4.83 |
Seeks to maximize income while maintaining prospects for capital appreciation. Under normal market conditions, the fund invests in a diversified portfolio of equity and debt securities. | Franklin
Income VIP Fund - Class 1 Franklin Advisers, Inc. |
0.47 | 0.97 | 7.22 | 6.25 |
Seeks capital appreciation, with income as a secondary goal. Under normal market conditions, the fund invests primarily in U.S. and foreign equity securities that the investment manager believes are undervalued. | Franklin
Mutual Shares VIP Fund - Class 1 Franklin Mutual Advisers, LLC |
0.73 | -4.85 | 6.15 | 7.26 |
Seeks long-term total return. Under normal market conditions, the fund invests at least 80% of its net assets in investments of small capitalization companies. | Franklin
Small Cap Value VIP Fund - Class 1 Franklin Mutual Advisers, LLC |
0.68 | 5.41 | 11.05 | 9.48 |
Seeks total return with a low to moderate correlation to traditional financial market indices. | Invesco
V.I. Balanced-Risk Allocation Fund, Series I Shares Invesco Advisers, Inc. |
0.80 | 10.22 | 7.87 | 6.39 |
Seeks capital appreciation. | Invesco
V.I. Global Fund, Series I Shares (previously Invesco Oppenheimer V.I. Global Fund, Series I Shares) Invesco Advisers, Inc. |
0.77 | 27.64 | 14.84 | 11.64 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks total return. | Invesco
V.I. Global Strategic Income Fund, Series I Shares (previously Invesco Oppenheimer V.I. Global Strategic Income Fund, Series I Shares) Invesco Advisers, Inc. |
0.91 | 3.40 | 4.40 | 3.61 |
Seeks capital appreciation. | Invesco
V.I. Main Street Small Cap Fund®, Series I Shares (previously Invesco Oppenheimer V.I. Main Street Small Cap Fund®, Series I Shares) Invesco Advisers, Inc. |
0.80 | 19.93 | 12.88 | 12.13 |
Seeks long-term capital growth, consistent with preservation of capital and balanced by current income. | Janus
Henderson Balanced Portfolio: Institutional Shares Janus Capital Management LLC |
0.62 | 14.31 | 11.81 | 10.23 |
Seeks to obtain maximum total return, consistent with preservation of capital. | Janus
Henderson Flexible Bond Portfolio: Institutional Shares Janus Capital Management LLC |
0.58 | 10.48 | 4.94 | 4.45 |
Seeks long-term growth of capital. | Janus
Henderson Research Portfolio: Institutional Shares Janus Capital Management LLC |
0.60 | 32.95 | 17.67 | 14.67 |
Seeks long-term capital appreciation. | Lazard
Retirement Global Dynamic Multi-Asset Portfolio - Investor Shares Lazard Asset Management, LLC |
0.90 | 0.96 | 6.71 | - |
Seeks total return. | MFS
® Utilities Series - Initial Class Massachusetts Financial Services Company |
0.79 | 5.90 | 11.37 | 9.20 |
The Fund seeks long-term capital growth by investing primarily in common stocks and other equity securities. | Morgan Stanley VIF Discovery Portfolio, Class I Shares (not available to new investors on or after April 5, 2021) | 0.95 | 152.30 | 37.70 | 20.76 |
Seeks long-term growth of capital by investing primarily in securities of companies that meet the Fund's environmental, social and governance (ESG) criteria. | Neuberger
Berman AMT Sustainable Equity Portfolio (Class I) Neuberger Berman Investment Advisers LLC |
0.92 | 19.56 | 13.05 | 11.62 |
Seeks maximum real return, consistent with preservation of real capital and prudent investment management. | PIMCO
VIT All Asset Portfolio, Institutional Class Pacific Investment Management Company LLC |
1.13 | 8.17 | 8.10 | 4.80 |
Seeks maximum total return, consistent with preservation of capital and prudent investment management. | PIMCO
VIT Total Return Portfolio, Institutional Class Pacific Investment Management Company LLC (PIMCO) |
0.54 | 8.81 | 4.91 | 4.09 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks high current income, consistent with preservation of capital, with capital appreciation as a secondary consideration. Under normal market conditions, the fund invests at least 80% of its net assets in debt securities of any maturity. | Templeton
Global Bond VIP Fund - Class 1 Franklin Advisers, Inc. |
0.49 | -5.07 | 0.91 | 1.81 |
Seeks to provide a high level of total return that is consistent with an aggressive level of risk. | Variable
Portfolio - Aggressive Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.80 | 15.30 | 10.09 | 8.46 |
Seeks to provide a high level of total return that is consistent with a conservative level of risk. | Variable
Portfolio - Conservative Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.65 | 9.55 | 5.58 | 4.55 |
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - Managed Volatility Conservative Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70 | 8.35 | 5.66 | - |
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - Managed Volatility Conservative Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.74 | 9.35 | 6.54 | - |
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - Managed Volatility Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.77 | 11.56 | 8.18 | - |
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - Managed Volatility Moderate Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.72 | 10.63 | 7.47 | - |
Seeks to provide a high level of total return that is consistent with a moderate level of risk. | Variable
Portfolio - Moderate Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.71 | 13.12 | 8.05 | 6.66 |
Seeks to provide a high level of total return that is consistent with a moderately aggressive level of risk. | Variable
Portfolio - Moderately Aggressive Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.77 | 14.26 | 9.09 | 7.55 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks to provide a high level of total return that is consistent with a moderately conservative level of risk. | Variable
Portfolio - Moderately Conservative Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.68 | 11.28 | 6.79 | 5.59 |
Seeks to provide shareholders with a high level of current income while conserving the value of the investment for the longest period of time. | Variable
Portfolio - Partners Core Bond Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; J.P. Morgan Investment Management Inc. and Wells Capital Management Incorporated, subadvisers. |
0.48 | 8.27 | 4.51 | 3.80 |
Seeks to provide shareholders with long-term capital growth. | Variable
Portfolio - Partners Core Equity Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; J.P. Morgan Investment Management Inc. and T. Rowe Price Associates, Inc., subadvisers. |
0.68 | 17.02 | 12.50 | 10.81 |
Seeks to provide shareholders with long-term growth of capital. | Variable
Portfolio - Partners International Core Equity Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Schroder Investment Management North America Inc. (SIMNA Inc.), together with its affiliate, Schroder Investment Management North America Limited (SIMNA Ltd. and together with SIMNA Inc., Schroders), subadviser. |
0.80 | 11.16 | 5.50 | 4.54 |
Seeks to provide shareholders with long-term capital growth. | Variable
Portfolio - Partners International Growth Fund (Class 1) Columbia Management Investment Advisers LLC, adviser; William Blair Investment Management, LLC and Walter Scott & Partners Limited, subadvisers. |
0.87 | 22.62 | 9.05 | 6.84 |
Seeks to provide shareholders with long-term capital growth. | Variable
Portfolio - Partners International Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Pzena Investment Management, LLC and Thompson, Siegel & Walmsley LLC, subadvisers. |
0.84 | -3.82 | 4.18 | 1.76 |
Seeks to provide shareholders with long-term capital growth. | Variable
Portfolio - Partners Small Cap Growth Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Scout Investments, Inc. and Wells Capital Management Incorporated, subadvisers. |
0.87 | 38.77 | 15.24 | 11.58 |
Seeks to provide shareholders with long-term capital appreciation. | Variable
Portfolio - Partners Small Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Segall Bryant & Hamill, LLC and William Blair Investment Management, LLC (William Blair), together with Investment Counselors of Maryland, LLC (ICM and together with William Blair, William Blair Subadvisers), subadvisers. |
0.88 | 4.27 | 7.79 | 7.08 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - U.S. Flexible Conservative Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70 | 6.18 | - | - |
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - U.S. Flexible Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70 | 5.07 | - | - |
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - U.S. Flexible Moderate Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70 | 5.74 | - | - |
Seeks long-term capital appreciation. | Wells
Fargo VT Opportunity Fund - Class 1 Wells Fargo Funds Management, LLC, adviser; Wells Capital Management Inc., sub-adviser. |
0.75 | 21.32 | 15.12 | 12.05 |
Seeks long-term capital appreciation. | Wells
Fargo VT Small Cap Growth Fund - Class 1 Wells Fargo Funds Management, LLC, adviser; Wells Capital Management Inc., sub-adviser. |
0.93 | 58.09 | 22.35 | 15.11 |
Seeks to maximize total return. | Western
Asset Variable Global High Yield Bond Portfolio - Class I Legg Mason Partners Fund Adviser, LLC; Western Asset Management Company, LLC, Western Asset Management Company Limited & Western Asset Management Pte. Ltd., sub-advisors. |
0.84 | 7.32 | 8.18 | 5.82 |
Table of Contents
Table of Contents
STATEMENT OF ADDITIONAL INFORMATION
FOR
RIVERSOURCE® SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE (SVUL NY)
___________, 2021
Issued by: RiverSource Life Insurance Co. of New York
20 Madison Avenue Extension
Albany, NY 12203
Telephone: 1-800-541-2251
(Home Office)
Website address: riversource.com/lifeinsurance
RiverSource of New York Account 8
RiverSource of New York Account 8 is a separate account of RiverSource Life Insurance Co. of New York (RiverSource Life of NY). This Statement of Additional Information (SAI) is not a prospectus. It should be read together with the prospectus dated the same date as this SAI, which may be obtained by writing or calling us at the address and telephone number above.
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Information about RiverSource Life of NY
We are a stock life insurance company organized in 1972 under the laws of the state of New York and are located at 20 Madison Avenue Extension, Albany, NY 12203. Our mailing address is: 70500 Ameriprise Financial Center, Minneapolis, MN 55474.
We conduct a conventional life insurance business in the state of New York. Our primary products currently include fixed and variable annuity contracts and life insurance policies.
OWNERSHIP
RiverSource Life of NY, a New York corporation is a wholly-owned subsidiary of RiverSource Life Insurance Company, a Minnesota Corporation which is a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). The Ameriprise Financial family of companies offers not only insurance and annuities, but also mutual funds, investment certificates and a broad range of financial management services.
STATE REGULATION
We are subject to the laws of New York governing insurance companies and to regulation by the New York State Department of Financial Services (the Department). We file an annual statement in a prescribed form with the Department. Our books and accounts are subject to review by the Department at all times and a full examination of our operations is conducted periodically.
REPORTS
At least once a year we will mail to you, at your last known address of record, a report containing all information required by law or regulation, including a statement showing the current policy value.
RATING AGENCIES
Generally, RiverSource Life of NY does not receive individual ratings from rating agencies but receives the same ratings as its parent, RiverSource Life Insurance Company. Rating agencies evaluate the creditworthiness and claims-paying ability of insurance companies on a number of different factors. These ratings reflect each agencys estimation of our ability to meet our contractual obligations such as paying death benefits and other distributions. As such, the ratings relate to our fixed account and not to the subaccounts. This information generally does not relate to the management or performance of the subaccounts.
For detailed information on the agency rating given to us, see Investor Relations Financial Information Credit Ratings on our website at ameriprise.com or contact your sales representative. You also may view our current ratings by visiting the agency websites directly at:
A.M. Best | www.ambest.com | |
Moodys | www.moodys.com | |
Standard & Poors | www.standardandpoors.com |
A.M. Best Rates insurance companies for their financial strength.
Moodys Rates insurance companies for their financial strength.
Standard & Poors Rates insurance companies for their financial strength.
RIVERSOURCE OF NEW YORK ACCOUNT 8 | ∎ | 3 |
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RiverSource Distributors, Inc. (RiverSource Distributors), our affiliate, serves as principal underwriter for the policy, which is offered on a continuous basis. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is registered with the Securities and Exchange Commission under the Securities Act of 1934 as a broker dealer and is a member of the Financial Industry Regulatory Authority (FINRA). The policies are offered to the public through certain securities broker-dealers that have entered into sales agreements with us and RiverSource Distributors and whose personnel are legally authorized to sell life insurance products. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc.
The aggregate dollar amount of underwriting commissions paid to RiverSource Distributors by RiverSource Life of NY for the variable accounts in 2020 was $24,231,296, in 2019 was $26,589,422 and in 2018 was $27,593,528. RiverSource Distributors retains no underwriting commissions from the sale of the policy.
Non-Principal Risks of Investing in the Policy
Fund of Funds Risk. Funds that are funds of funds (or feeder funds) invest substantially all of their assets in other funds and will therefore bear a pro-rata share of fees and expenses incurred by both funds. This will reduce your investment return.
Money Market Fund Sub-Account Delay of Payment Risk. If, pursuant to SEC rules, a Fund that is a money market fund suspends payment of redemption proceeds in connection with a liquidation of such Fund, we will delay payment of any transfer, partial withdrawal, full surrender, or death benefit from the corresponding Subaccount until the Fund is liquidated.
Mixed and Shared Funding Risk. Fund shares may be sold to our insurance company affiliates or other unaffiliated insurance companies to serve as an underlying investment for variable annuity contracts and variable life insurance policies, pursuant to a practice known as mixed and shared funding. As a result, there is a possibility that a material conflict may arise between the interests of Owners, and other Owners investing in these Funds. If a material conflict arises, we will consider what action may be appropriate, including removing the Fund from the Variable Account or replacing the Fund with another underlying Fund.
Limitations on Use of the Policy
If mandated by applicable law, including, but not limited to, federal anti-money laundering laws, we may be required to reject a premium payment. We may also be required to block an Owners access to Policy Values or to satisfy other statutory obligations. Under these circumstances we may refuse to implement requests for transfers, surrenders or death benefits until instructions are received from the appropriate government authority or a court of competent jurisdiction.
Business Continuity/Disaster Recovery
Disruptive events, including natural or man-made disasters and public health crises may adversely affect our ability to conduct business, including if our employees or the employees of intermediaries or service providers are unable to perform their responsibilities as a result of any such event. Such disruptions to our business operations could interfere with processing of transactions (including the issuance of policies). Also, disruptions may interfere with our ability to receive, pick up and process mail and messages, impact our ability to calculate values, or cause other operational or system issues. Furthermore, these disruptions may persist even if our employees or the employees of intermediaries or service providers are able to work remotely. These events may also impact the issuers of securities in which the Funds invest, which may cause the Funds to lose value. There can be no assurance that RiverSource Life, the Funds or our service providers will avoid losses affecting your policy due to a disaster or other catastrophe.
Our Service Center performs certain administrative services on the contracts and policies we issue. The address and telephone number of our Service Center are listed on the first page of the prospectus.
We also have entered into agreements with certain entities to provide the identified services in connection with the contracts and policies we issue. The entities engaged by RiverSource Life of NY may change over time. Entities that provided a significant amount of services to RiverSource Life of NY, the compensation paid, and the basis for remuneration are listed below.
Ameriprise Financial, Inc. and RiverSource Life Insurance Company are affiliated with RiverSource Life of NY.
4 | ∎ | RIVERSOURCE OF NEW YORK ACCOUNT 8 |
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Name of Service Provider | Services Provided | Principal Business Address | Basis for Remuneration | |||
Ameriprise Financial, Inc. (AFI) | Business affairs management and administrative support related to new business and servicing of existing contracts and policies | 707 Second Avenue South Minneapolis MN 55402 USA |
Expense allocation based primarily on policies in force, secondarily on policies issued or cash sales (for acquisition expenses). | |||
RiverSource Life Insurance Company | Business affairs management and administrative support related to new business and servicing of existing contracts and policies | 707 Second Avenue South Minneapolis MN 55402 USA |
Expense allocation based primarily on policies in force, secondarily on policies issued or cash sales (for acquisition expenses). |
The aggregate dollar amount paid to AFI by RiverSource Life of NY for the services provided in 2020 was $1,057,563, in 2019 was $952,039 and in 2018 was $943,444.
The aggregate dollar amount paid to RiverSource Life Insurance Company by RiverSource Life of NY for the services provided in 2020 was $6,125,075, in 2019 was $6,439,319 and in 2018 was $6,445,669.
RiverSource Life of NY is the custodian of the assets of RiverSource of New York Account 8. RiverSource Life of NY holds these assets for safekeeping, maintains records and accounts relating to the variable account including purchase and redemption transactions, and is responsible for administration of the policies. RiverSource Life of NYs principal offices are located at 20 Madison Avenue Extension, Albany NY 12203.
We established the variable account on Sept. 12, 1985, under New York law. It is registered as a single unit investment trust under the Investment Company Act of 1940. This registration does not involve any SEC supervision of the variable accounts management or investment practices or policies.
The variable account meets the definition of a separate account under federal securities laws. Other variable life insurance policies that are not described in this statement of additional information also invest in subaccounts of the variable account.
Additional Information about the Operation of the Policies
TO BE FILED BY AMENDMENT.
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Independent Registered Public Accounting Firm
TO BE FILED BY AMENDMENT.
TO BE FILED BY AMENDMET.
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Name | Principal Business Address* | Positions and Offices with Depositor | ||
Gumer C. Alvero | 1765
Ameriprise Financial Center Minneapolis, MN 55474 |
Chairman of the Board, President and Chief Executive Officer | ||
Michael J. Pelzel | Senior Vice President—Corporate Tax | |||
Stephen P. Blaske | Senior Vice President and Chief Actuary | |||
Mark Gorham | Director and Vice President - Insurance Product Development | |||
Karen M. Bohn | 6620
Iroquois Trail Edina, MN 55439 |
Director | ||
Ronald L. Guzior | Sax/BST,
LLC 26 Computer Drive West Albany, NY 12205 |
Director | ||
Shweta Jhanji | Senior Vice President and Treasurer |
Name | Principal Business Address* | Positions and Offices with Depositor | ||
Paula J. Minella | Secretary | |||
Gregg L. Ewing | Vice President, Chief Financial Officer and Controller | |||
Lynn Abbott | Vice President – National Sales Manager and Fund Management | |||
Brian E. Hartert | Director |
* | Unless otherwise noted, the business address is 70100 Ameriprise Financial Center, Minneapolis, MN 55474 |
Parent Company/Subsidiary Name | Jurisdiction | |
Ameriprise Financial, Inc.* |
DE | |
Ameriprise Advisor Capital, LLC |
DE | |
Ameriprise Advisor Financing, LLC |
DE | |
Ameriprise Bank, FSB |
Federal | |
Ameriprise Capital Trust I |
DE | |
Ameriprise Capital Trust II |
DE | |
Ameriprise Capital Trust III |
DE | |
Ameriprise Capital Trust IV |
DE | |
Ameriprise Captive Insurance Company |
VT | |
Ameriprise Certificate Company |
DE | |
Investors Syndicate Development Corporation |
NV | |
Ameriprise Holdings, Inc. |
DE | |
Ameriprise India LLP1 |
India | |
Ameriprise India Partner, LLC |
DE | |
Ameriprise Trust Company |
MN | |
AMPF Holding, LLC |
MI | |
American Enterprise Investment Services, Inc.2 |
MN | |
Ameriprise Financial Services, LLC2 |
DE | |
AMPF Property Corporation |
MI | |
Investment Professionals, Inc.2 |
TX | |
Columbia Management Investment Advisers, LLC |
MN | |
Advisory Capital Strategies Group Inc. |
MN | |
Columbia Wanger Asset Management, LLC |
DE | |
Emerging Global Advisors, LLC |
DE | |
GA Legacy, LLC |
DE | |
J. & W. Seligman & Co. Incorporated |
DE | |
Columbia Management Investment Distributors, Inc.2 |
DE | |
Seligman Partners, LLC3 |
DE | |
Lionstone BBP Limited Partner, LLC |
DE | |
Houston BBP, L.P.4 |
DE |
Parent Company/Subsidiary Name | Jurisdiction | |
Lionstone Partners, LLC |
TX | |
Cash Flow Asset Management GP, LLC |
TX | |
Cash Flow Asset Management, L.P.5 |
TX | |
CREAD Special VAD Limited Partner, LLC |
DE | |
Lionstone Advisory Services, LLC |
TX | |
Lionstone CFRE II Real Estate Advisory, LLC |
DE | |
Lionstone Development Services, LLC |
TX | |
LPL 1111 Broadway GP, LLC |
TX | |
LPL 1111 Broadway, L.P.6 |
TX | |
Lionstone VA Five, LLC7 |
DE | |
Lionstone US Value-Add Five, L.P.8 |
DE | |
RiverSource CDO Seed Investments, LLC |
MN | |
Columbia Management Investment Services Corp. |
MN | |
Columbia Threadneedle Investments UK International Limited |
England | |
RiverSource Distributors, Inc.2 |
DE | |
RiverSource Life Insurance Company |
MN | |
Columbia Cent CLO Advisers, LLC |
DE | |
RiverSource Life Insurance Co. of New York |
NY | |
RiverSource NY REO, LLC |
NY | |
RiverSource REO 1, LLC |
MN | |
RiverSource Tax Advantaged Investments, Inc. |
DE | |
AEXP Affordable Housing Portfolio, LLC9 |
DE | |
Ameriprise Asset Management Holdings Singapore (Pte.) Ltd. |
Signapore | |
Ameriprise Asset Management Holdings Hong Kong Limited | Hong
Kong | |
Threadneedle Portfolio Services Hong Kong Limited | Hong
Kong | |
Columbia Threadneedle Investments Japan Co., Ltd. |
Japan | |
Columbia Threadneedle Malaysia Sdn Bhd. |
Malaysia | |
Threadneedle Investments Singapore (Pte.) Ltd. |
Singapore | |
TAM UK International Holdings Limited |
England/Wales | |
Threadneedle Asset Management Oversight Limited |
England/Wales | |
Ameriprise International Holdings GmbH |
Switzerland | |
Ameriprise Asset Management Holdings GmbH |
Switzerland | |
Threadneedle EMEA Holdings 1, LLC | Minnesota,
USA | |
Threadneedle Asset Management Holdings Sàrl** |
Luxembourg | |
CTM Holdings Limited |
Malta | |
Columbia Threadneedle Investments (ME) Limited |
Dubai |
Parent Company/Subsidiary Name | Jurisdiction | |
TAM Investment Limited |
England | |
Threadneedle Holdings Limited |
England | |
TAM UK Holdings Limited |
England | |
Threadneedle Asset Management Holdings Limited** |
England | |
Columbia Threadneedle Foundation |
England | |
TC Financing Limited |
England | |
Threadneedle Asset Management Limited |
England | |
Threadneedle Investment Services Limited |
England | |
Threadneedle Asset Management (Nominees) Limited |
England | |
Convivo Asset Management Limited |
England | |
Sackville TIPP Property (GP) Limited |
England | |
Threadneedle Investment Advisors Limited |
England | |
Threadneedle Portfolio Managers Limited |
England | |
Threadneedle Asset Management Finance Limited |
England | |
TMS Investment Limited |
Jersey | |
Threadneedle International Fund Management Limited |
England | |
Threadneedle International Limited |
England | |
Threadneedle Investments (Channel Islands) Limited |
Jersey | |
Threadneedle Investments Limited |
England | |
Threadneedle Management Services Limited |
England | |
Threadneedle Capital Management Limited |
England | |
Threadneedle Pension Trustees Limited |
England | |
Threadneedle Securities Limited |
England | |
Threadneedle Navigator ISA Manager Limited |
England | |
Threadneedle Pensions Limited |
England | |
Threadneedle Portfolio Services AG |
Switzerland | |
Threadneedle Portfolio Services Limited |
England | |
Threadneedle Property Investments Limited |
England | |
Sackville (CTESIF) GP Sàrl |
Luxembourg | |
Sackville LCW (GP) Limited |
England | |
Sackville LCW Sub LP 1 (GP) Limited |
England | |
Sackville LCW Nominee 1 Limited |
England | |
Sackville LCW Nominee 2 Limited |
England | |
Sackville LCW Sub LP 2 (GP) Limited |
England | |
Sackville LCW Nominee 3 Limited |
England | |
Sackville LCW Nominee 4 Limited |
England | |
Sackville Property (GP) Limited |
England | |
Sackville Property Atlantic (Jersey GP) Limited |
Jersey |
Parent Company/Subsidiary Name | Jurisdiction | |
Sackville Property Curtis (Jersey GP) Limited |
Jersey | |
Sackville Property Hayes (Jersey GP) Limited |
Jersey | |
Sackville UKPEC6 Hayes Nominee 1 Limited |
Jersey | |
Sackville UKPEC6 Hayes Nominee 2 Limited |
Jersey | |
Sackville Property St James (Jersey GP) Limited |
Jersey | |
Sackville UKPEC9 St James Nominee 1 Limited |
Jersey | |
Sackville UKPEC9 St James Nominee 2 Limited |
Jersey | |
Sackville Property Tower (Jersey GP) Limited |
Jersey | |
Sackville UKPEC7 Tower Nominee 1 Limited |
Jersey | |
Sackville UKPEC7 Tower Nominee 2 Limited |
Jersey | |
Sackville Property Victoria (Jersey GP) Limited |
Jersey | |
Sackville SPF IV Property (GP) Limited |
England | |
Sackville SPF IV (GP) No. 1 Limited |
England | |
Sackville SPV IV (GP) No. 2 Limited |
England | |
Sackville SPF IV (GP) No. 3 Limited |
England | |
Sackville Tandem Property (GP) Limited |
England | |
Sackville TPEN Property (GP) Limited |
England | |
Sackville TSP Property (GP) Limited |
England | |
Sackville UK Property Select II (GP) Limited |
England | |
Sackville UK Property Select II (GP) No. 1 Limited |
England | |
Sackville UK Property Select II Nominee (1) Limited |
England | |
Sackville UK Property Select II (GP) No. 2 Limited |
England | |
Sackville UK Property Select II Nominee (2) Limited |
England | |
Sackville UK Property Select II (GP) No. 3 Limited |
England | |
Sackville UK Property Select II Nominee (3) Limited |
England | |
Sackville UK Property Select III (GP) No. 1 Limited |
England | |
Sackville UK Property Select III Nominee (1) Limited |
England | |
Sackville UK Property Select III Nominee (2) Limited |
England | |
Sackville UK Property Select III (GP) No. 2 Limited |
England | |
Sackville UK Property Select III Nominee (3) Ltd |
England | |
Sackville UK Property Select III Nominee (4) Ltd |
England | |
Sackville UK Property Select III (GP) No. 3 Limited |
England | |
Sackville UK Property Select III Nominee (5) Ltd |
England | |
Sackville UK Property Select III Nominee (6) Ltd |
England | |
Sackville UKPEC1 Leeds (GP) Limited |
England | |
Sackville UKPEC1 Leeds Nominee 1 Limited |
England | |
Sackville UKPEC1 Leeds Nominee 2 Limited |
England | |
Sackville UKPEC2 Galahad (GP) Limited |
England |
Parent Company/Subsidiary Name | Jurisdiction | |
Sackville UKPEC3 Croxley (GP) Limited |
England | |
Sackville UKPEC3 Croxley Nominee 1 Limited |
England | |
Sackville UKPEC3 Croxley Nominee 2 Limited |
England | |
Sackville UKPEC4 Brentford (GP) Limited |
England | |
Threadneedle Property Execution 1 Limited |
England | |
Threadneedle Property Execution 2 Limited |
England | |
Threadneedle Management Luxembourg S.A. |
Luxembourg | |
Threadneedle Unit Trust Manager Limited |
England |
* | Publicly-traded company (NYSE: AMP) |
** | The company has non-voting shares held by third parties |
1 | This entity has three partners: Ameriprise Financial, Inc. owns 100% profit sharing ratio with capital contribution of 124,078,760 INR (Indian currency=rupees) & 10 INR owned each by Columbia Management Investment Advisers, LLC & Ameriprise India Partner, LLC |
2 | Registered Broker-Dealer |
3 | This entity is managed by members of onshore hedge fund feeders |
4 | This entity is owned by: Lionstone BBP Limited Partner, LLC (2%) & Teacher Retirement System of Texas (98%) |
5 | This entity is owned by: Lionstone Partners, LLC (99%) & Cash Flow Asset Management GP, LLC (1%). |
6 | This entity is owned by: Lionstone Partners, LLC (99.9%) & LPL 1111 Broadway GP, LLC (0.1%) |
7 | This entity is owned by: Columbia Management Investment Advisers, LLC (83.333%) & Lionstone LVA5 Holdings, LLC (16.667%) |
8 | This entity is owned by: Lionstone VA Five, LLC (3%); Teacher Retirement System of Texas (26.2%); California State Teachers’ Retirement System (26.2%); William Marsh Rice University (5.2%); and Lion |
9 | One-third of this entity is owned by American Express Travel Related Services. |
RiverSource Variable Annuity Account
RiverSource Account F
RiverSource Variable Annuity Fund A
RiverSource Variable Annuity Fund B
RiverSource Variable Account 10
RiverSource Account SBS
RiverSource MVA Account
RiverSource Account MGA
RiverSource Account for Smith Barney
RiverSource Variable Life Separate Account
RiverSource Variable Life Account
RiverSource of New York Variable Annuity Account 1
RiverSource of New York Variable Annuity Account 2
RiverSource of New York Account 4
RiverSource of New York Account 7
RiverSource of New York Account 8
Name
and Principal Business Address* |
Positions
and Offices with Underwriter | |
Lynn Abbott | President | |
Shweta Jhanji | Senior Vice President and Treasurer | |
Paula J. Minella | Secretary | |
Michael J. Mattox | Chief Financial Officer | |
Gumer C. Alvero | Interim Chairman of the Board, Chief Executive Officer and Executive Vice President |
* | The business address is 50611 Ameriprise Financial Center, Minneapolis, MN 55474 |
NAME
OF PRINCIPAL UNDERWRITER |
NET
UNDERWRITING DISCOUNTS AND COMMISSIONS |
COMPENSATION
ON REDEMPTION |
BROKERAGE
COMMISSIONS |
OTHER
COMPENSATION | ||||
RiverSource Distributors, Inc. | $24,231,296 | None | None | None |
RIVERSOURCE OF NEW YORK ACCOUNT 8 | ||
(Registrant) | ||
By: RiverSource Life Insurance Co. of New York | ||
(Depositor) | ||
By: | /s/ Gumer C. Alvero* | |
Gumer
C. Alvero Chairman of the Board, President and Chief Executive Officer |
Signature | Title |
/s/ Gumer C. Alvero* | Chairman
of the Board, President and Chief Executive Officer (Chief Executive Officer) |
Gumer C. Alvero | |
/s/ Mark Gorham* | Director and Vice President - Insurance Product Development |
Mark Gorham | |
/s/ Jason J. Poor* | Director |
Jason J. Poor | |
/s/ Stephen P. Blaske* | Senior Vice President and Chief Actuary |
Stephen P. Blaske | |
/s/ Karen M. Bohn* | Director |
Karen M. Bohn | |
/s/ Ronald L. Guzior* | Director |
Ronald L. Guzior | |
/s/ Shweta Jhanji* | Senior Vice President and Treasurer |
Shweta Jhanji | |
/s/ Gregg L. Ewing * | Vice
President, Chief Financial Officer and Controller (Principal Accounting Officer) (Chief Financial Officer) |
Gregg L. Ewing | |
/s/ Michael J. Pelzel * | Senior Vice President – Corporate Tax |
Michael J. Pelzel | |
/s/ Brian E. Hartert * | Director |
Brian E. Hartert |
/s/ Dixie Carroll | |
Dixie
Carroll Assistant General Counsel and Assistant Secretary |
(d)(1) | Copy of Flexible Premium Survivorship Variable Adjustable Life with Index-Linked Interest Option(s) Life Insurance Policy. |
(d)(6) | Copy of Policy Split Option Rider. |
(d)(7) | Copy of Four-Year Term Insurance Rider. |
(e)(1) | Form of Life and Disability Income Insurance Application |
(k) | Consent and Opinion of Counsel. |
(r) | Form of Initial Summary Prospectus. |
RiverSource Life Insurance Co.
of New York
20 Madison Avenue Extension
Albany, New York 12203
1.800.541.2251
FLEXIBLE PREMIUM SURVIVORSHIP VARIABLE ADJUSTABLE LIFE WITH INDEX-LINKED INTEREST OPTION(S) INSURANCE POLICY
- | Policy continues until surrender, lapse, or the last surviving Insureds death. |
- | Death benefit payable at last surviving Insureds death. |
- | Flexible premiums payable as provided herein. Benefits, values and periods of coverage are based on actual premiums paid, interest credited, investment performance of the Subaccounts and charges. Interest rates and charges are subject to change by Us as described herein. |
- | This policy is nonparticipating. Dividends are not payable. |
- | No-lapse guarantees as described herein. |
- | While the interest earned in an Indexed Account is affected by an external index (es), the policy does not directly invest in any index. |
Insureds: | John Doe | Policy Number: | 9090-1234567 | |||
Jane Doe | ||||||
Policy Date: | September 1, 2022 | Initial Death Benefit Option: |
Option 1 |
Initial Specified Amount: $1,500,000
This is a life insurance policy. It is a legal contract between You, as the owner, and Us, RiverSource Life insurance Company.
PLEASE READ YOUR POLICY CAREFULLY.
In consideration of Your application, receipt of evidence of insurability satisfactory to Us, all outstanding requirements to place your policy In Force have been satisfied, and payment of the initial premium We issue this policy and We promise to pay the death benefit less Indebtedness described in this policy to the beneficiary if We receive proof satisfactory to Us that the last surviving Insured died while this policy was In Force.
The owner and the beneficiary are as named in the application unless they are changed as provided for in this policy.
The amount and duration of the death benefit of this policy may increase or decrease as described herein depending on the investment experience of the Subaccounts.
The Policy Value of this policy may increase or decrease daily depending on the investment experience of the Subaccounts. There is no guaranteed minimum Policy Value.
Your right to examine this policy
You have 10 days to decide if this policy is right for You. If You are not satisfied with it for any reason, return it to Us or Our representative within 10 days after You receive it. If this policy is intended to replace an existing policy, Your right to examine is extended to 60 days or any longer period if required by the state in which it is delivered. We will refund all premiums paid, including any policy fees or other charges, less Indebtedness. The policy will then be considered void from its start.
116947 | 2/22 |
Signed for and issued by RiverSource Life Insurance Co. of New York in Albany, New York, as of the Policy Date shown above.
President:
Vice President Service Operations:
116947 | Page 2 | 2/22 |
TABLE OF CONTENTS
SUBJECT |
PAGE | |||
POLICY DATA |
3 | |||
DEFINITIONS |
4 | |||
THE INSURANCE CONTRACT |
6 | |||
OWNER AND BENEFICIARY |
9 | |||
PREMIUMS |
10 | |||
DEATH BENEFITS |
14 | |||
POLICY CHANGE |
15 | |||
POLICY VALUES |
17 | |||
POLICY SURRENDER |
22 | |||
POLICY LOANS |
23 | |||
SUBACCOUNTS |
25 | |||
INDEXED ACCOUNTS |
26 | |||
TRANSFER OF VALUE AMONG ACCOUNTS |
28 | |||
PAYMENT OF POLICY PROCEEDS |
30 |
116947 | Page 2 | 2/22 |
Policy Data
Insured(s): | Issue Age | Risk Classification | ||||||
John Doe | 55 | Male Standard Nontobacco | ||||||
Jane Doe | 55 | Female Super Preferred Nontobacco | ||||||
Policy Number: | 9790-1234567 | Policy Date: | September 01, 2022 | |||||
Type of Policy: | Flexible Premium Survivorship | Monthly Date: | 01 | |||||
Variable Adjustable Life with | ||||||||
Indexed-Linked Interest | ||||||||
Option(s) | ||||||||
RiverSource Survivorship | Initial Specified Amount: $1,500,000 | |||||||
Variable Universal Life | ||||||||
Minimum Specified | Policy Year 1: | $1,500,000 | Initial Death | |||||
Amount Allowed: | Years 2 - 5: | $1,125,000 | Benefit Option: | 1 | ||||
Years 6 - 10: | $750,000 | |||||||
Years 11 - 15: | $375,000 | Life Insurance | Guideline | |||||
Thereafter: | $1,000 | Qualification Test: | Premium Test | |||||
New York State Department of Financial Services Telephone Number: 1.800.342.3736
|
Premium Information
Initial Premium: | $7,761.36 | No-lapse Guarantee | ||||
Premium: | $646.78 per month | |||||
Scheduled Premium: | $7,761.36 per year | No-lapse Guarantee | ||||
payable Annually | Period: | 20 Years |
Coverage will expire prior to death if no premiums are paid following payment of the initial premium, or subsequent premiums are insufficient to continue coverage. Coverage will expire when the policy values are insufficient to pay the charges assessed on a monthly anniversary. The period for which the policy and coverage will continue In Force will depend on; 1) the amount, timing and frequency of premium payments; 2) changes in the Specified Amount and death benefit option; 3) changes in the interest rates credited to the Fixed Account and in the investment performance of the Subaccounts; 4) changes in the monthly cost of insurance deductions from the Policy Value for this policy and any riders attached to this policy; 5) changes in the premium expense charge, administrative charge, mortality and expense risk rate and policy fee; and 6) loan and partial surrender activity. The payment of scheduled premiums or unscheduled premiums in any amount or frequency will not guarantee that the policy will remain In Force unless the premiums needed to keep the no-lapse guarantee in effect have been paid. At the end of the no-lapse guarantee period, the Cash Surrender Value may not be sufficient to keep this policy In Force without payment of additional premium. The premium required to keep this policy In Force may be higher than the premiums required for the no-lapse guarantee. An additional lump sum premium may be required to keep the
116947-DP | Page 3 | 2/22 |
policy In Force at the termination of the no-lapse guarantee period. You may contact Us for additional information.
Important Information
Cost of insurance rates may be changed based on Our expectations of mortality, future investment earnings, persistency and/or expenses. Any change will apply to all individuals of the same risk classification as the Insured. The cost of insurance rates will never exceed the Guaranteed Maximum Monthly Cost of Insurance Rates as shown in this policy.
Additional amounts credited to the policy value are not guaranteed and We have the right to change interest rates, the premium expense charge, cost of insurance rates, the administrative charge, the mortality and expense risk rate and the policy fee. Interest rates will never be less than the Guaranteed Interest Rate shown in this policy. The premium expense charge will never exceed the Guaranteed Premium Expense Charge shown in this policy. The administrative charge will never exceed the Guaranteed Administrative Charge shown in this policy. The policy fee will never exceed the Guaranteed Policy Fee shown in this policy. The mortality and expense risk rate will never exceed the Guaranteed Mortality and Expense Risk Rate shown in this policy.
Any changes in interest rates, the premium expense charge, cost of insurance rates, the administrative charge, the mortality and expense risk rate and the policy fee may require more premiums to be paid than was illustrated or the policy values may be less than those illustrated.
116947-DP | Page 3A | 2/22 |
Interest and Loan Information
Fixed Account | Guaranteed Loan | |||||
Guaranteed Interest Rate: 1.00% per year | Interest Rate | |||||
Policy Years 1-10: | 3.00% per year | |||||
Guaranteed Interest | Policy Years 11+: | 1.25% per year | ||||
Rate Factor: | 1.0008295381 |
The interest rate applied to the portion of the Policy Value which equals any Indebtedness due Us will be the Fixed Account Guaranteed Interest Rate.
116947-DP | Page 3B | 2/22 |
Fees and Deductions
Guaranteed Premium Expense Charge | Guaranteed Policy Fee | |||||
All Policy Years: | 6.00% | All Policy Years: | $15.00 per month | |||
Guaranteed Administrative Charge | Partial Surrender Fee: | $25 or 2% | ||||
Policy Years 1-20: | $481.50 per month | of amount surrendered, | ||||
Policy Years 21+: | $289.50 per month | whichever is less | ||||
Guaranteed Mortality and Expense Risk Rate | ||||||
All Policy Years: | 0.60% per year |
Table of Surrender Charges
Policy Year |
Beginning of Year | |||||
____1 |
$27,689.23 | |||||
2 |
$27,689.23 | |||||
3 |
$27,689.23 | |||||
4 |
$27,689.23 | |||||
5 |
$27,689.23 | |||||
6 |
$27,227.12 | |||||
7 |
$21,688.81 | |||||
8 |
$16,151.66 | |||||
9 |
$10,613.35 | |||||
10 |
$5,076.20 |
This table applies to the initial Specified Amount for the first 10 policy years. Surrender charges decrease evenly at each Monthly Date between Policy Anniversaries. Additional surrender charges will apply to each increase in Specified Amount for 10 years after the effective date of increase.
Policy Value Credit
Policy Value Credit Requirements
To receive any available credit one of the following conditions must be met:
To receive any available credit the following condition must be met:
There is no policy value credit available on this policy.
1. | the Insureds Attained Insurance Age is at least 20: |
2. | the policy has been In Force for at least 15 years: |
3. | the sum of the premiums paid, minus partial surrenders and partial surrender fees, minus outstanding indebtedness equals or exceeds $500,000: |
4. | the Policy Value minus Indebtedness equals or exceeds $50,000. |
116947-DP | Page 3C | 2/22 |
Life Insurance Qualification Test: Guideline Premium Test
Death Benefit Percentage Table
Youngest | Youngest | Youngest | ||||||||
Insureds | Death | Insureds | Death | Insureds | Death | |||||
Attained | Benefit | Attained | Benefit | Attained | Benefit | |||||
Insurance | Percentage | Insurance | Percentage | Insurance | Percentage | |||||
Age | Age | Age | ||||||||
40 or less | 250 | 55 | 150 | 70 | 115 | |||||
41 | 243 | 56 | 146 | 71 | 113 | |||||
42 | 236 | 57 | 142 | 72 | 111 | |||||
43 | 229 | 58 | 138 | 73 | 109 | |||||
44 | 222 | 59 | 134 | 74 | 107 | |||||
45 | 215 | 60 | 130 | 75-90 | 105 | |||||
46 | 209 | 61 | 128 | 91 | 104 | |||||
47 | 203 | 62 | 126 | 92 | 103 | |||||
48 | 197 | 63 | 124 | 93 | 102 | |||||
49 | 191 | 64 | 122 | 94 | 101 | |||||
50 | 185 | 65 | 120 | 95-119 | 100 | |||||
51 | 178 | 66 | 119 | |||||||
52 | 171 | 67 | 118 | |||||||
53 | 164 | 68 | 117 | |||||||
54 | 157 | 69 | 116 |
116947-DP | Page 3D | 2/22 |
Schedule of Benefits and Riders
Monthly | ||||||
Effective Date | Expiration Date | Cost of Insurance | ||||
Flexible Premium | ||||||
September 01, 2022 | See policy form | See policy form | ||||
Survivorship Variable |
Adjustable Life with
Indexed-Linked Interest
Option(s)
116947-DP | Page 3E | 2/22 |
Payment of Policy Proceeds Option Tables
Option A Interest Rate
Option A Interest Rate: 0.25% Annually
Interest in excess of the Option A Interest Rate may be applied by Us. Excess interest will be determined by Us based on Our expectations of future investment earnings.
Option B Table
Number of | Monthly | |
Years | Payment/$1000 | |
10 |
8.44 | |
15 |
5.66 | |
20 |
4.27 | |
25 |
3.44 | |
30 |
2.88 |
The table above is based on an interest rate of 0.25%
Option C Table
M = Male F = Female
Life Income per $1,000 with
Payment Guaranteed for
Age Payee |
Settlement Beginning In Year |
5 Years | 10 Years | 15 Years | ||||||||||||||||||||||||
M | F | M | F | M | F | |||||||||||||||||||||||
65 | 2030 | 3.53 | 3.16 | 3.48 | 3.14 | 3.39 | 3.09 | |||||||||||||||||||||
65 | 2040 | 3.40 | 3.05 | 3.37 | 3.04 | 3.29 | 3.00 | |||||||||||||||||||||
65 | 2050 | 3.29 | 2.96 | 3.26 | 2.95 | 3.19 | 2.92 | |||||||||||||||||||||
75 | 2030 | 5.20 | 4.63 | 4.93 | 4.49 | 4.51 | 4.23 | |||||||||||||||||||||
75 | 2040 | 4.97 | 4.43 | 4.75 | 4.32 | 4.39 | 4.11 | |||||||||||||||||||||
75 | 2050 | 4.77 | 4.26 | 4.59 | 4.17 | 4.28 | 4.00 | |||||||||||||||||||||
85 | 2030 | 8.20 | 7.57 | 6.90 | 6.60 | 5.50 | 5.41 | |||||||||||||||||||||
85 | 2040 | 7.84 | 7.19 | 6.72 | 6.40 | 5.45 | 5.36 | |||||||||||||||||||||
85 | 2050 | 7.51 | 6.87 | 6.56 | 6.21 | 5.41 | 5.30 |
The table above is based on the Annuity 2000 Mortality Table with 100% Projection Scale G at 0.50% annual effective interest rate. Settlement rates for any year, age, or any combination of year, age and sex not shown above, will be calculated on the same basis as those rates shown in the table above. We will furnish such rates upon request.
116947-DP | Page 3F | 2/22 |
CSO Mortality Tables
2017 Commissioners Standard Ordinary (CSO) Mortality Table adopted by the NAIC on April 6, 2016;
Smoker or Nonsmoker; Male or Female; Ultimate; Age Nearest Birthday.
Guaranteed Maximum Monthly Cost of Insurance Rates per $1,000
Policy | Rate | Policy | Rate | Policy | Rate | |||||
Year | Year | Year | ||||||||
1 | 0.00067 | 23 | 0.66442 | 45 | 25.42428 | |||||
2 | 0.00222 | 24 | 0.82297 | 46 | 27.89751 | |||||
3 | 0.00412 | 25 | 1.02075 | 47 | 30.01949 | |||||
4 | 0.00636 | 26 | 1.26995 | 48 | 32.10498 | |||||
5 | 0.00905 | 27 | 1.57896 | 49 | 34.11941 | |||||
6 | 0.01237 | 28 | 1.93451 | 50 | 36.03542 | |||||
7 | 0.01661 | 29 | 2.35987 | 51 | 37.82075 | |||||
8 | 0.02192 | 30 | 2.88107 | 52 | 39.44824 | |||||
9 | 0.02863 | 31 | 3.58995 | 53 | 41.61815 | |||||
10 | 0.03699 | 32 | 4.36305 | 54 | 43.90294 | |||||
11 | 0.04719 | 33 | 5.27593 | 55 | 46.31240 | |||||
12 | 0.05960 | 34 | 6.35497 | 56 | 48.85291 | |||||
13 | 0.07434 | 35 | 7.58007 | 57 | 51.53237 | |||||
14 | 0.09248 | 36 | 8.94004 | 58 | 54.35877 | |||||
15 | 0.11444 | 37 | 10.39669 | 59 | 57.34027 | |||||
16 | 0.14167 | 38 | 11.94039 | 60 | 60.49052 | |||||
17 | 0.17604 | 39 | 13.55641 | 61 | 63.81950 | |||||
18 | 0.22009 | 40 | 15.15261 | 62 | 67.39404 | |||||
19 | 0.27510 | 41 | 16.76073 | 63 | 71.36150 | |||||
20 | 0.34398 | 42 | 18.69990 | 64 | 76.79739 | |||||
21 | 0.42979 | 43 | 20.78966 | 65 | 83.33333 | |||||
22 | 0.53516 | 44 | 23.04165 |
116947-DP | Page 3G | 2/22 |
Policy Data
Indexed Account Information
Indexed Account Name: | S&P 500 index 1-year point-to-point | |||
Index Detail: | Index Name | Index Weight | ||
S&P 500 index | 100% | |||
Segment Term: | 1 Year | |||
Indexed Interest Period: | 1 Year | |||
Segment Guaranteed Interest Crediting | ||||
Frequency | Annually | |||
Segment Guaranteed Annual Interest Rate: | 0% | |||
Cumulative Guaranteed Indexed Interest Rate: | 0% | |||
Guaranteed Minimum Participation Rate: | 100% | |||
Guaranteed Minimum Segment Growth Cap: | 3% | |||
Guaranteed Minimum Segment Floor: | 0% | |||
Guaranteed Indexed Account Charge: | 0.05% | |||
Sweep Dates: | The 20th day of each calendar month | |||
Segment Cut-off Date: | 1 business day before the Sweep Date | |||
Minimum Transfer Amount: | $25 |
The following describes the method used in calculating the indexed interest for each segment of this Indexed Account. Also, see Indexed Accounts section of Your policy.
Indexed Interest
At the end of each indexed interest period, indexed interest will be credited to the segment and is equal to the average segment value multiplied by the indexed interest rate.
Average Segment Value
For a given segment, the average segment value used in the calculation of Indexed Interest is the average of the values at the end of each segment month over the indexed interest period. A segment month ends on the same day each month as the segment start date.
Indexed Interest Rate
The indexed interest rate reflects any growth in the value of the index, subject to the segment growth cap and segment floor. The indexed interest rate is equal to the lesser of (a x b) - d or (c - d), but will never be less than (e), where:
a) | is the index growth rate for the indexed interest period and is determined by adding together, for all indexes shown above, the results obtained by multiplying each index change rate (calculated as described below) by its index weight shown above. The index change rate is calculated as (B divided by A) minus 1, where: |
A = the final value of the index as of the day before the beginning of the indexed interest period; and
B = the final value of the index as of the day before the end of the indexed interest period;
The final value of an Index used in calculating the index change rate is the value determined by that Indexs provider as the Indexs final value on a business day. A business day is a day on which the New York Stock Exchange is open for business. If We need to determine the final value on any day that is not a business day, We will use the final value for the next business day following that day. If no final value is determined for any Index as of a business day, We will use the final value for the most recent preceding business day for which a final value was determined for that index.
The index change rate does not include gains in the index that come from dividends.
112477-DP | Page 1 | 8/16 |
b) | is the segment participation rate, which is the percentage of the index growth rate that is used to calculate the indexed interest; |
c) | is the segment growth cap, which is the maximum total interest rate for a segment over the indexed interest period, including both the segment guaranteed annual interest rate and the indexed interest rate; |
d) | is the cumulative guaranteed indexed interest rate which is the segment guaranteed annual interest rate compounded annually for the number of years of the indexed interest period; |
e) | is the segment floor, which is the minimum total interest rate for a segment over the indexed interest period, including both the segment guaranteed annual interest rate and the indexed interest rate. |
We will set the index weights, segment participation rate, segment growth cap, and segment floor for a new segment on the segment start date, subject to any guaranteed minimum amounts shown above. We guarantee that no index weight will ever be less than 10% and the sum of index weights will always equal 100%. Once these amounts are set by Us, they will not be changed during the segment term.
112477-DP | Page 2 | 8/16 |
Indexed Account Information
Indexed Account Name: | S&P 500 index 2-year point-to-point | |||
Index Detail: | Index Name | Index Weight | ||
S&P 500 index | 100% | |||
Segment Term: | 2 Year | |||
Indexed Interest Period: | 2 Year | |||
Segment Guaranteed Interest Crediting | ||||
Frequency | Annually | |||
Segment Guaranteed Annual Interest Rate: | 0% | |||
Cumulative Guaranteed Indexed Interest Rate: | 0% | |||
Guaranteed Minimum Participation Rate: | 100% | |||
Guaranteed Minimum Segment Growth Cap: | 5% | |||
Guaranteed Minimum Segment Floor: | 1% | |||
Guaranteed Indexed Account Charge: | 0.05% | |||
Sweep Dates: | The 20th day of each calendar month | |||
Segment Cut-off Date: | 1 business day before the Sweep Date | |||
Minimum Transfer Amount: | $25 |
The following describes the method used in calculating the indexed interest for each segment of this Indexed Account. Also, see Indexed Accounts section of Your policy.
Indexed Interest
At the end of each indexed interest period, indexed interest will be credited to the segment and is equal to the average segment value multiplied by the indexed interest rate.
Average Segment Value
For a given segment, the average segment value used in the calculation of Indexed Interest is the average of the values at the end of each segment month over the indexed interest period. A segment month ends on the same day each month as the segment start date.
Indexed Interest Rate
The indexed interest rate reflects any growth in the value of the index, subject to the segment growth cap and segment floor. The indexed interest rate is equal to the lesser of (a x b) - d or (c - d), but will never be less than (e), where:
a) | is the index growth rate for the indexed interest period and is determined by adding together, for all indexes shown above, the results obtained by multiplying each index change rate (calculated as described below) by its index weight shown above. The index change rate is calculated as (B divided by A) minus 1, where: |
A = the final value of the index as of the day before the beginning of the indexed interest period; and
B = the final value of the index as of the day before the end of the indexed interest period;
The final value of an Index used in calculating the index change rate is the value determined by that Indexs provider as the Indexs final value on a business day. A business day is a day on which the New York Stock Exchange is open for business. If We need to determine the final value on any day that is not a business day, We will use the final value for the next business day following that day. If no final value is determined for any Index as of a business day, We will use the final value for the most recent preceding business day for which a final value was determined for that index.
The index change rate does not include gains in the index that come from dividends.
112477-DP | Page 3 | 8/16 |
b) | is the segment participation rate, which is the percentage of the index growth rate that is used to calculate the indexed interest; |
c) | is the segment growth cap, which is the maximum total interest rate for a segment over the indexed interest period, including both the segment guaranteed annual interest rate and the indexed interest rate; |
d) | is the cumulative guaranteed indexed interest rate which is the segment guaranteed annual interest rate compounded annually for the number of years of the indexed interest period; |
e) | is the segment floor, which is the minimum total interest rate for a segment over the indexed interest period, including both the segment guaranteed annual interest rate and the indexed interest rate. |
We will set the index weights, segment participation rate, segment growth cap, and segment floor for a new segment on the segment start date, subject to any guaranteed minimum amounts shown above. We guarantee that no index weight will ever be less than 10% and the sum of index weights will always equal 100%. Once these amounts are set by Us, they will not be changed during the segment term.
Indexed Interest at Policy Termination other than the end of Grace Period
If policy Termination occurs for any reason other than the end of Grace Period, indexed interest will be credited to open segments that have a segment start date that is greater than one year from the date of Termination and have not reached segment maturity. In these cases only, indexed interest will be one half of the guaranteed minimum segment floor multiplied by the average of the values at the end of each segment month since the segment start date.
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S & P Disclaimers
The S&P 500 Index is a product of S&P Dow Jones Indices LLC (SPDJI), and has been licensed for use by RiverSource Life Insurance Co. of New York (RiverSource Life). Standard & Poors®, S&P® and S&P 500® are registered trademarks of Standard & Poors Financial Services LLC (S&P); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by RiverSource Life. RiverSource Lifes indexed accounts (collectively, the Indexed Accounts) are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, S&P). S&P Dow Jones Indices makes no representation or warranty, express or implied, to the owners of an Indexed Account or any member of the public regarding the advisability of investing in products generally or in the Indexed Accounts particularly or the ability of the S&P 500 Index to track general market performance. S&P Dow Jones Indices only relationship to RiverSource Life with respect to the S&P 500 Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices or its licensors. The S&P 500 Index is determined, composed and calculated by S&P Dow Jones Indices without regard to RiverSource Life or the Indexed Accounts. S&P Dow Jones Indices have no obligation to take the needs of RiverSource Life or the owners of the Indexed Accounts into consideration in determining, composing or calculating the S&P 500 Index. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of the Indexed Accounts or the timing of the issuance or sale of the Indexed Accounts or in the determination or calculation of the equation by which the Indexed Accounts are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of the Indexed Accounts. There is no assurance that investment products based on the S&P 500 Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice. Notwithstanding the foregoing, CME Group Inc. and its affiliates may independently issue and/or sponsor financial products unrelated to the Indexed Accounts currently being offered as an investment option by RiverSource Life, but which may be similar to and competitive with the Indexed Accounts. In addition, CME Group Inc. and its affiliates may trade financial products which are linked to the performance of the S&P 500 Index.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500 INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY RIVERSOURCE LIFE, OWNERS OF THE INDEXED ACCOUNTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND RIVERSOURCE LIFE, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
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DEFINITIONS
The following words are often used in this policy. When We use these words, this is what We mean:
Accumulation Unit
An accounting unit used in the calculation of the value of a Subaccount.
Age Anniversary
An Age Anniversary is the Policy Anniversary on which the Insured becomes a certain Attained Insurance Age.
Attained Insurance Age
Each Insureds Insurance Age plus the number of Policy Anniversaries since the Policy Date. Attained Insurance Age changes only on a Policy Anniversary.
Cash Surrender Value
The policy Proceeds if the policy is surrendered in full. It is the Policy Value minus any Indebtedness, minus surrender charges shown under Policy Data.
Fixed Account
The portion of the Policy Value that earns interest at a fixed rate not less than the guaranteed interest rate as shown under Policy Data.
Fixed Account Value
The portion of the Policy Value that is allocated to the Fixed Account including Indebtedness.
Indebtedness
All existing loans on this policy plus policy loan interest which has either been accrued or added to the policy loan.
Indexed Account
An Indexed Account is the portion of the Policy Value that earns interest based on a change in the value of one or more designated index(es).
An Indexed Account includes a corresponding interim account and multiple segments.
In Force
The Insureds life remains Insured under the terms of this policy.
Insurance Age
The Insurance Age of the Insured on the Policy Date is the issue age shown under Policy Data for each Insured. It is the age We determine from the date of birth listed on the application and is the age on the birthday nearest to the application date.
Insured(s)
The person(s) whose life(ves) is/are Insured by this policy shown under Policy Data.
Monthly Date
It is the same day each month as the Policy Date. If there is no Monthly Date in a calendar month, the Monthly Date will be the first day of the next calendar month.
Net Premium
The portion of a premium paid that is credited to the policy as described in the Policy Values section. It is the premium paid minus the premium expense charge. We reserve the right to change the current premium expense charge based on Our expectations of future investment earnings, persistency, and/or expenses. However, it will never exceed the guaranteed premium expense charge shown under Policy Data.
Policy Anniversary
The same day and month as the Policy Date each year that the policy remains In Force.
Policy Date
It is the date from which Policy Anniversaries, policy years and policy months are determined. Your Policy Date is shown under Policy Data.
Policy Value
On a given date the Policy Value equals the Fixed Account Value plus the Variable Account Value plus the values in the Indexed Account(s).
Proceeds
Proceeds means the amount payable under this policy as follows:
1. | Upon death of the last surviving Insured, prior to the Youngest Insureds Attained Insurance Age 120. Proceeds will be the death benefit minus any Indebtedness, as of that date of that Insureds death; |
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2. | Upon a full surrender of the policy, the Proceeds will be the Cash Surrender Value. |
Pro-Rata Basis
Method for allocating amounts to the Fixed Account and to each of the Subaccounts. It is proportional to the value (minus any Indebtedness in the Fixed Account) that each bear to the total Policy Value, minus Indebtedness, and the values of the Indexed Account(s).
Specified Amount
An amount used to determine the death benefit and the Proceeds payable upon death of the last surviving Insured prior to the Youngest Insureds Attained Insurance Age 120. The initial Specified Amount is shown under Policy Data.
Subaccounts
Each Subaccount is a separate investment division of the Variable Account and invests in a particular portfolio or fund.
Systemic Distribution Program
A Systemic Distribution Program means a series of prescheduled withdrawals of a portion of the policys Cash Surrender Value through policy loans and partial surrenders while an Insured is living, and the policy is in force. The withdrawal will be payable to You and have a defined start date, and either a defined end date or continuation until Written Request to Terminate the arrangement is received by Us. You may request participation in a Systemic Distribution Program by Written Request, or other request acceptable to Us. We reserve the right to discontinue such a program at any time.
Terminate/Termination
This policy is no longer In Force. All insurance coverage under this policy has stopped.
Valuation Date
Any day on which the New York Stock Exchange is open for trading, or any other day on which there is a sufficient degree of trading in the investments of the Subaccounts such that the current value might be materially affected.
Valuation Period
The interval of time commencing at the close of business on each Valuation Date and ending at the close of business on the next Valuation Date.
Variable Account
RiverSource of New York Account 8 established under New York law as a segregated asset account of Ours. We have allocated to the Variable Account a part of Our assets for this and certain other policies. Such assets remain Our property. They cannot be charged, however, with liabilities from any other business We may conduct.
Variable Account Value
The sum of the values of the Subaccounts under this policy.
We, Our, Us
RiverSource Life Insurance Co. of New York
Written Request
A request in a form satisfactory to Us that is signed and dated by You and received at Our corporate office.
Youngest Insured
The Insured with the youngest issue age as shown under Policy Data.
You, Your
The owner of this policy. The owner may be someone other than the Insureds. The owner is shown in the application unless the owner has been changed as provided in this policy.
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THE INSURANCE CONTRACT
Entire Contract
The entire contract between You and Us is as stated in this policy, Your attached application, and any attached supplemental applications, amendments, endorsements and riders.
No one except one of Our corporate officers (President, Vice President, Secretary or Assistant Secretary) can change or waive any of Our rights or requirements under this policy. That person must do so in writing and the change shall not be valid until endorsed or attached to the policy. None of Our representatives or other persons has the authority to change or waive any of Our rights or requirements under this policy.
In issuing this policy, We have relied upon the application. The statements made in the application are considered representations and not warranties. No material misrepresentations made in connection with the application will be used by Us to void the policy or to deny a claim unless that material misrepresentation is part of the application.
After the Policy Date, applications for an increase of the Specified Amount will be attached to and made a part of this policy and will form part of the entire contract.
Any statement concerning tobacco status will be attached to and made a part of this policy and will form part of the entire contract.
Policy Incontestability
After this policy has been In Force during the last surviving Insureds lifetime for two years from the Policy Date, We cannot contest the policy except for nonpayment of premiums or fraud in the procurement of this policy to the extent permitted by applicable state law.
While this policy is contestable, We, on the basis of a material misrepresentation made in the application, may rescind or reform this policy and We may deny a claim.
An additional two-year contestable period will start from the effective date of an increase in Specified Amount which requires evidence of insurability, and We may contest the representations made in the application for the increase in Specified Amount.
If within two years from the effective date of an Insureds reclassification to a more favorable substandard class risk factor or risk classification We find there was a material misrepresentation of information provided to Us on the application for reclassification, and it is discovered on or after the death of the last surviving Insured, the Proceeds payable upon death will be:
1. | The Policy Value on the date of death; plus |
2. | The amount of insurance that the cost of insurance on the Insured(s), which was deducted from the Policy Value for the policy month during which such death occurred, would have purchased using the cost of insurance rates for the Insureds correct prior substandard class risk factor or risk classification; minus |
3. | Any Indebtedness on the date of death. |
If within two years from the effective date of an Insureds reclassification to a more favorable substandard class risk factor or risk classification We find that there was a material misrepresentation of information provided to Us on the application for reclassification, and it is discovered before the death of the last surviving Insured:
1. | The Specified Amount will be adjusted to the amount it would have been had the cost of insurance, on the Monthly Date immediately preceding the date such misrepresentation is discovered, been based on the Insureds prior substandard class risk factor or risk classification. The adjustment will take effect on the Monthly Date on or next following the date such misrepresentation is discovered; and |
2. | The monthly deduction will then be based on the Insureds prior correct substandard class risk factor or risk classification beginning on the Monthly Date on or next following the date such misrepresentation is discovered. |
Suicide Exclusion
Suicide by the last surviving Insured within two years from the Policy Date is not covered by this
116947 | Page 6 | 2/22 |
policy. In this event the only amount payable by Us to the beneficiary will be the premiums which You have paid, minus any Indebtedness and partial surrenders.
If the last surviving Insured commits suicide whether sane or insane within two years from the effective date of:
1. | Any increase in Specified Amount which requires proof of insurability; or |
2. | Any rider attached to this policy; |
then the amount payable by Us with respect to the increased coverage or rider benefit will be limited to the monthly deductions for such additional Specified Amount or rider on the life of either Insured.
Policy Exchange
During the first two policy years, You have the right to exchange the policy for a flexible premium adjustable life policy that provides for benefits that do not vary with the investment experience of the Subaccounts. This is accomplished by a transfer of all of the value in the Subaccounts to the Fixed Account and/or the Indexed Account(s) without charge. The rules for transferring from the Subaccounts to the Fixed Account following a Fixed Account to Subaccount transfer will be waived only once
Misstatement of an Insureds Age or Sex
If an Insureds age or sex (unless issued on a unisex basis) has been misstated, and it is discovered on or after the death of the last surviving Insured, the Proceeds payable upon the last surviving Insureds death will be:
1. | the Policy Value on the date of death; plus |
2. | The amount of insurance that the cost of the insurance on the Insureds, which was deducted from the Policy Value for the policy month during which the last surviving Insureds death occurred, would have purchased had the cost of the insurance been calculated using the cost of insurance rates for the correct age and sex (unless issued on a unisex basis); minus |
3. | Any Indebtedness on the date of death. |
If an Insureds age or sex (unless issued on a unisex basis) has been misstated and it is discovered before the death of the last surviving Insured:
1. | The Specified Amount will be adjusted to the amount it would have been had the cost of insurance, on the Monthly Date immediately preceding the date the misstatement is |
discovered, been based on the Insureds correct age and sex (unless issued on a unisex basis). The adjustment will take effect beginning on the Monthly Date on or next following the date such misstatement is discovered; and |
2. | The monthly deduction will then be based on the Insureds correct age and sex (unless issued on a unisex basis) beginning on the Monthly Date on or next following the date such misstatement is discovered. |
Voting Rights
All policy owners with Variable Account Values will have voting rights. So long as federal law requires, You may have the right to vote at shareholder meetings. If You have voting rights, We will send You a notice of the time and place of any such meetings. The notice will explain matters to be voted upon and how many votes You will have.
Policy Termination
This policy will Terminate on the earliest of the following:
1. | The date You request, by Written Request or other requests acceptable to Us, that coverage ends; |
2. | The date You surrender the policy in full; |
3. | The date of lapse; or |
4. | The date of death of the last surviving Insured. |
Your Written Request to Terminate coverage will be effective as of the date We receive Your Written Request, or a later date if specified in Your request. If We accept a request for Termination by other than Written Request, it will be effective as of the date We receive Your request, or a later date if specified in Your request.
Tax Treatment of this Policy
This policy is intended to qualify for treatment as a life insurance policy under Sections 72, 101, 7702, and other relevant sections of the Internal Revenue Code as they now exist or may later be amended. We reserve the right to endorse this policy to comply with:
1. | Future changes in the Internal Revenue Code; |
2. | Any regulations or rulings issued under the Internal Revenue Code; and |
3. | Any other requirements imposed by the Internal Revenue Service; |
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with respect to remaining qualified for treatment as a life insurance policy under these Internal Revenue Code sections.
If endorsed, We will provide the owner with a copy of any such endorsement. Such endorsement must be approved by the New York State Department of Financial Serivces before it is effective. If such change would diminish the rights and/or benefits under this policy, We will obtain Your prior written consent, unless otherwise provided by applicable New York and Federal law.
We reserve the right to decline any change that would cause this policy to lose its ability to be tested for federal income tax purposes under the CSO mortality tables shown under Policy Data.
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 future actions of any tax authority.
Distribution of Policy Value
If the death benefit, less the Policy Value, ever exceeds three times the distribution threshold as
defined below, We reserve the right to make a distribution of the Policy Value. The distribution would be the amount needed to make the death benefit, less the Policy Value, equal to three times the distribution threshold.
The distribution threshold is equal to:
(a) + (b)
where:
(a) | Is the initial Specified Amount; and |
(b) | Is the amount of any increase in the Specified Amount other than that resulting solely from a change in the death benefit option. |
Any such distribution will be treated as if it was a partial surrender with the following exceptions:
1. | The partial surrender fee will not be applied; and |
2. | The Specified Amount will not be reduced by the distribution amount. |
See the policy change section for details on how to request a change in the Specified Amount and how a change in the death benefit option impacts the Specified Amount.
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OWNER AND BENEFICIARY
Your Rights as Owner of this Policy
As long as the either or both Insureds are living and unless otherwise provided in this policy, You may exercise all rights and privileges provided in this policy or allowed by Us.
Successor Owner
A successor owner becomes the new owner of this policy if You die during the lifetime of either Insured. If no successor owner is living at the time of Your death, ownership will pass to Your estate. The successor owner, if any, is shown in the application unless changed as provided below.
Changing Ownership of this Policy
You can change the ownership of this policy by Written Request on a form satisfactory to Us. A successor owner may also be changed in this same way. The change must be made while an Insured is living. Once the change is received by Us, it will take effect as of the date Your request was signed, or a later date if specified in Your request, subject to any action taken or payment made by Us before We received the change.
Proceeds Paid to Beneficiary upon Death of the Last Surviving Insured
We will pay Proceeds to the beneficiary or beneficiaries which You have named in the application unless You have since changed the beneficiary as provided below. If the beneficiary has been changed, We will pay the Proceeds in accordance with Your last change of beneficiary request.
Only those beneficiaries who are living at the last surviving Insureds death may share in the Proceeds. If no beneficiary survives the last surviving Insured, We will pay the Proceeds to You, if living; otherwise, to Your estate.
Change of Beneficiary by Owner
You may change the beneficiary anytime while an Insured is living by Written Request on a form satisfactory to Us. Once the change is received by Us, it will take effect as of the date Your request was signed, or a later date if specified in Your request, subject to any action taken or payment made by Us before We received the change.
If an irrevocable beneficiary is on record, such beneficiary cannot be changed without the written consent of the irrevocable beneficiary.
Assignment
While an Insured is living, You can only assign this policy or any interest in it by Written Request on a form satisfactory to Us and a copy of any assignment must be submitted to Us. Your interest and the interest of any beneficiary is subject to the interest of the assignee. An assignment is not a change of ownership and an assignee is not an owner as these terms are used in this policy. Any policy Proceeds payable to the assignee will be paid in a single sum.
If an irrevocable beneficiary is on record, the policy cannot be assigned without the written consent of the irrevocable beneficiary.
Any assignment, unless otherwise specified by You, shall take effect as of the date the assignment was signed, subject to any action taken or payment made by Us before We receive the assignment. We are not responsible for the validity or sufficiency of any assignment.
To terminate the assignment, the collateral assignee must release his or her interest in the policy.
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PREMIUMS
Premium Payments
There are three types of premium payments that apply to this policy:
1. | The initial premium; |
2. | Scheduled premiums; and |
3. | Unscheduled premiums. |
Premiums must be paid or mailed to Us at Our corporate office or to an authorized agent. We will give You a receipt if You request one. A check or draft given for all or part of a premium, unless paid upon its presentation to the bank or person drawn on, shall not be considered payment.
We reserve the right to require evidence of insurability or limit the amount of any premium payment that would result in more than a dollar for dollar increase in the death benefit.
Initial Premium
The initial premium is the premium due on or before the Policy Date. The initial premium payment must be received by Us before the policy can become effective, and no insurance will take effect until this amount is paid.
Scheduled Premium
The scheduled premium is the premium shown under Policy Data. It is payable at the stated interval which You selected in the application. However, no scheduled premium may be paid on or after the Youngest Insureds Attained Insurance Age 120 Anniversary except amounts required to keep the policy In Force under the grace period provision.
The scheduled premium will serve only as an indication of Your preference as to the probable future amount and frequency of payments. You may change the amount or frequency at any time by Written Request or other requests acceptable to Us.
Scheduled premiums may be paid annually, semi-annually, or quarterly. Payment at any other interval must be approved by Us. Any scheduled premium payment must be at least $25.
Unscheduled Premium Payments
You can make additional premium payments of at least $25 at any time prior to the Youngest Insureds Attained Insurance Age 120 Anniversary. After that, We will only accept
amounts required to keep the policy In Force under the grace period provision.
Restrictions of Premium Payments
This policy is intended to qualify for treatment as a life insurance policy under Sections 72, 101, 7702, and other relevant sections of the Internal Revenue Code as they now exist or may later be amended.
We reserve the right to refuse premiums and return them with interest, unless the premium is necessary to continue coverage, if such premiums would disqualify this policy from:
1. | Treatment as a life insurance policy under Internal Revenue Code Sections 72, 101, and 7702; or |
2. | Favorable tax treatment under Internal Revenue Code Sections 72 and 101. |
Premium Processing
The Net Premium is allocated to the Fixed Account, the Indexed Account(s), and the Subaccounts according to Your premium allocation percentages in effect. You may change Your premium allocation percentages at any time by Written Request or other requests acceptable to Us.
We reserve the right to limit the percentage of premium that can be allocated to the Fixed Account.
Net Premiums received before the Policy Date will be allocated to the Indexed Account(s), Subaccounts, and in the Fixed Account on the Policy Date in accordance with Your premium allocation percentages in effect. For any premium received on or after the Policy Date, the Net Premium will be allocated in accordance with Your premium allocation percentages in effect.
Premiums allocated to an Indexed Account are first placed in the interim account that corresponds to the Indexed Account selected. Subject to the provisions of this policy, We will transfer the interim account value to a new segment of the Indexed Account on the next sweep date. See the Indexed Accounts section for additional information.
On the Youngest Insureds Attained Age 119 Anniversary, the premium allocation percentages will be set to allocate all premium and loan repayments to the Fixed Account and may not be changed.
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Grace Period
If on a Monthly Date the Cash Surrender Value is less than the monthly deduction for the policy month following such Monthly Date, and the no-lapse guarantee is in effect, a grace period of 61 days will begin.
The grace period will give You time to make a premium payment or loan repayment sufficient to continue Your coverage. Within 30 days following the Monthly Date, We will mail to Your last known address, and to any assignee of record, a notice as to the payment needed.
The premium payment or loan repayment needed will be the lesser of:
1. | An amount so that the Cash Surrender Value is sufficient to pay any overdue monthly deductions, plus the next three monthly deductions; or |
2. | The amount needed to keep the no-lapse guarantee in effect, if it is eligible to be kept in effect, during the grace period and for three months after the end of the grace period. |
If the premium payment or loan repayment is not paid within the grace period, all coverage under this policy will Terminate without value at the end of the 61-day grace period. This type of Termination is known as lapse. The end of the grace period is the date of lapse.
Any payment sent by U.S. mail must be postmarked within the grace period to keep the policy In Force.
If the last surviving Insureds death occurs during the grace period and benefits become payable under the policy, the lesser of the following will be deducted from the Proceeds:
1. | Any overdue monthly deductions; or |
2. | The premium required to keep the no-lapse guarantee in effect, if it is eligible to be kept in effect. |
If the no-lapse guarantee is in effect as described in the next provision, the policy will not enter the grace period.
No-Lapse Guarantee
The no-lapse guarantee provides that during the no-lapse guarantee period shown under Policy Data, this policy will not Terminate even if the Cash Surrender Value is insufficient to pay the monthly deduction on a Monthly Date. Sufficient premium as described below must be paid to keep the no-lapse guarantee in effect.
The no-lapse guarantee will remain in effect if, on each Monthly Date:
(a) | equals or exceeds (b) |
where:
(a) | Is the sum of all premiums paid, minus any partial surrenders and partial surrender fees, and minus any Indebtedness; and |
(b) | Is the no-lapse guarantee premium, shown under Policy Data, times the number of months since the Policy Date, including the current month. |
To keep the no-lapse guarantee in effect, premiums may be paid at any interval so long as the conditions above have been met.
While this policy is kept In Force by the no-lapse guarantee, any monthly deduction amounts that exceed the Policy Value, minus any Indebtedness, will be waived.
If on a Monthly Date sufficient premiums have not been paid to maintain the no-lapse guarantee, the no-lapse guarantee provision will no longer be in effect. Therefore, Your policy will enter the grace period if the Cash Surrender Value is insufficient to pay the monthly deduction.
Within 60 days following the Monthly Date where sufficient premiums have not been paid to maintain the no-lapse guarantee, We will mail to Your last known address, a notice as to the payment needed within the next 60 days to continue the no-lapse guarantee. If the premium is not paid within this period, the no-lapse guarantee will no longer be in effect.
The no-lapse guarantee, however, can be reinstated within two years from the date it was last in effect. The amount needed to reinstate the no-lapse guarantee is an amount equal to:
(a) + (b) + (c) - (d)
where:
(a) | Is the sum of premiums required to keep the no-lapse guarantee in effect to the date of reinstatement assuming a no-lapse guarantee was always in effect since the Policy Date; |
(b) | Is any partial surrenders and partial surrender fees that have been taken up to the date of reinstatement; |
(c) | Is any Indebtedness on the date of reinstatement; |
(d) | Is the total of all premiums paid to the date of reinstatement. |
The no-lapse guarantee premium will change if:
1. | The Specified Amount is increased or decreased; |
2. | The death benefit option is changed; or |
116947 | Page 11 | 2/22 |
3. | Riders are added, changed or Terminated. |
The new no-lapse guarantee premium will apply from the date of the change.
Although Your policy will remain In Force, if You pay only the premium needed to keep the no-lapse guarantee in effect, You may be foregoing the advantage of building up Policy Value.
If the no-lapse guarantee Terminates before the end of the no-lapse guarantee period, the Cash Surrender Value may not be sufficient to keep this policy In Force without payment of an additional premium. At the end of the no-lapse guarantee period, the Cash Surrender Value may not be sufficient to keep this policy In Force without payment of additional premium. The premium required to keep this policy In Force may be higher than the premiums required for the no-lapse guarantee.
Reinstatement
This policy may be reinstated within three years after the end of the grace period, unless it was surrendered for cash. To do this, We will require all of the following:
1. | Your Written Request on a form satisfactory to Us to reinstate the policy; |
2. | Evidence of insurability of the Insured satisfactory to Us that: |
a. | Both Insureds remain insurable; or |
b. | The last surviving Insured remains insurable (in this case, We must receive due proof that the first Insureds death occurred before the date of lapse); |
3. | Payment of the required reinstatement premium or loan repayment amount; and |
4. | Payment or reinstatement of any Indebtedness. |
If the policy is within the no-lapse guarantee period, and the no-lapse guarantee is no longer in effect, but it can be reinstated, the required repayment amount to reinstate the policy is an amount equal to the lesser of:
1. | An amount equal to (a) + (b) + (c) - (d) - (e) |
where: |
(a) | Is the sum of required premiums for the no-lapse guarantee to the date of reinstatement assuming a no-lapse guarantee was always in effect since the Policy Date; |
(b) | Is any partial surrenders and partial surrender fees that have been taken to the date of reinstatement; |
(c) | Is any Indebtedness on the policy at the end of the grace period; |
(d) | Is any Indebtedness repaid on the date of the reinstatement; and |
(e) | Is the total of all premiums paid to the date of reinstatement; or |
2. | An amount equal to (a) + (b) + (c) + (d) - (e) - (f) |
where: |
(a) | Is the surrender charge which will be reinstated to what it would have been if the policy had not lapsed; |
(b) | Is an amount equal to the monthly deductions not taken during the grace period; |
(c) | Is an amount equal to the next 3 monthly deductions that will be taken after reinstatement; |
(d) | Is any Indebtedness on the policy at the end of the grace period; |
(e) | Is any Indebtedness repaid on the date of the reinstatement; and |
(f) | Is the Policy Value as of the last day of the grace period. |
If the policy is within the no-lapse guarantee period, but the no-lapse guarantee is no longer in effect and it cannot be reinstated or the policy is beyond the no-lapse guarantee period, the required repayment amount to reinstate the policy is an amount equal to;
(a) + (b) + (c) + (d) - (e) - (f)
where:
(a) | Is the surrender charge which will be reinstated to what it would have been if the policy had not lapsed; |
(b) | Is an amount equal to the monthly deductions not taken during the grace period; |
(c) | Is an amount equal to the next 3 monthly deductions that will be taken after reinstatement; |
(d) | Is any Indebtedness on the policy at the end of the grace period; |
(e) | Is any Indebtedness repaid on the date of the reinstatement; and |
(f) | Is the Policy Value as of the last day of the grace period. |
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The Policy Value on the date of reinstatement will be equal to:
1. | The Policy Value as of the last day of the grace period; plus |
2. | The required reinstatement premium; plus |
3. | Any premium in excess of the required reinstatement premium; minus |
4. | The monthly deductions not collected during the 61-day grace period. |
Surrender charges will return to what they would have been if the policy had not lapsed. Any Indebtedness on the policy at the end of the grace period will be reinstated unless it is repaid prior to or at the time of reinstatement.
The effective date of a reinstated policy will be the Monthly Date on or next following the date We approve the application for reinstatement.
The Net Premium paid upon reinstatement will be allocated according to Your premium allocation percentages in effect at time of lapse.
The two-year suicide exclusion will start over from the effective date of reinstatement. An additional two-year contestable period will start from the effective date of reinstatement, and We may contest the representations made in the reinstatement application.
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DEATH BENEFITS
Death Benefit Prior to or on the Youngest Insureds Attained Insurance Age 120 Anniversary
The death benefit upon death of the last surviving Insured prior to or on the Youngest Insureds Attained Insurance Age 120 Anniversary will be the greater of:
1. | The amount based on the death benefit option in effect as of the date of the last surviving Insureds death; or |
2. | The Policy Value multiplied by the death benefit percentage found in the death benefit percentage table shown under Policy Data. |
Death Benefit Options
The initial death benefit option is shown under Policy Data. While this policy is In Force, You may change the option as explained in the Policy Change section, or as described in any attached riders or endorsements.
Option 1
The amount under this option will be the Specified Amount.
Option 2
The amount under this option will be the Specified Amount plus the Policy Value of this policy.
The initial Specified Amount is shown under Policy Data. Such amount may be changed as explained in the Policy Change section.
The death benefit option is shown under Policy Data. We reserve the right to make additional death benefit options available under this policy at any time.
Death Benefit After the Youngest Insureds Attained Insurance Age 120 Anniversary
The death benefit upon death of the last surviving Insured after the Youngest Insureds Attained Insurance Age 120 Anniversary will be the greater of:
1. | The death benefit on the Youngest Insureds Attained Insurance Age 120 Anniversary, minus any partial surrenders and partial surrender fees occurring after the Youngest Insureds Attained Insurance Age 120 Anniversary; or |
2. | The Policy Value on the date of death of the last surviving Insureds death. |
Proceeds Payable at the Last Surviving Insureds Death
The Proceeds payable upon death of the last surviving Insured will be:
1. | The death benefit provided by this policy; minus |
2. | The amount required to continue coverage to the date of death without the policy entering the grace period (if death occurs during the grace period); minus |
3. | Any Indebtedness as of the date of death. |
Life Insurance Qualification Test
The life insurance qualification test is used to determine if a policy will qualify as life insurance under applicable tax laws. The life insurance qualification test and death benefit percentage table for this test is shown under Policy Data. The test may not be changed after the Policy Date.
Disclosure
Keeping the policy In Force on or after an Insureds Attained Insurance Age 100 Anniversary raises certain tax issues to which there are currently no clear answers. They include, but are not limited to, the following:
1. | The policy may no longer qualify as life insurance for federal income tax purposes; and |
2. | If the Internal Revenue Service (IRS) takes the position that the policy does not qualify for life insurance for federal income tax purposes on or after an Insureds Attained Insurance Age 100 Anniversary, You could be taxed on any gain in the policy on or after an Insureds Attained Insurance Age 100 Anniversary. |
The IRS has issued guidance regarding these tax concerns by providing a safe harbor for certain insurance policies that extend coverage beyond age 100 (see IRS Revenue Procedure 2010-28). This policy is intended to meet the safe harbor requirements.
We strongly urge You to consult with Your own tax advisor about the income tax consequences on or after an Insureds Attained Insurance Age 100 Anniversary. We accept no responsibility for any tax consequences incurred on or after an Insureds Attained Insurance Age 100 Anniversary.
116947 | Page 14 | 2/22 |
POLICY CHANGE
Request to Change Benefits
While this policy is In Force, You may request to decrease or increase the Specified Amount. You may also request certain changes to the death benefit option. Such changes are subject to the rules below.
Rules for Changing the Specified Amount
You may change the Specified Amount once per year by Written Request. Decreases may only be made after the first policy year. The rules are as follows:
Decreases of the Specified Amount
1. | Any decrease will be effective on the Monthly Date on or next following Our receipt of Your Written Request. Any such decrease will be applied in the following order: |
(a) | against the initial Specified Amount shown under Policy Data; then |
(b) | against the increases successively following the initial Specified Amount. |
2. | The Specified Amount that remains In Force after a requested decrease may not be less than the minimum Specified Amount allowed as shown under Policy Data. |
3. | We reserve the right to decline to make any Specified Amount decrease that We determine would cause this policy to fail to qualify as life insurance under applicable tax laws. |
Increases of the Specified Amount
The following rules apply to any increase in Specified Amount other than that resulting solely from a change in death benefit option:
1. | You must apply for an increase by Written Request on a form satisfactory to Us prior to the Youngest Insureds Attained Insurance Age 86 Anniversary. |
2. | You must furnish satisfactory evidence of insurability of the Insureds. |
3. | Any increase will be subject to Our issue rules and limits at the time of increase. |
4. | The minimum increase in the Specified Amount is $10,000. |
5. | Any increase will be effective on the Monthly Date on or next following the date Your application is approved. |
6. | An additional administrative charge will apply to the amount of any increase in the Specified Amount. |
7. | A new schedule of surrender charges will apply to the amount of any increase in the Specified Amount. |
Changes to the Death Benefit Option
Prior to the Youngest Insureds Attained Insurance Age 120 Anniversary, You may change the death benefit option once per year by Written Request. The change in option will be effective on the Monthly Date on or next following the date We approve Your request.
If the death benefit option is 2, it may be changed to option 1. The new Specified Amount will be the option 2 death benefit as of the effective date of the change.
If the death benefit option is 1, it may be changed to option 2. The new Specified Amount will be the option 1 death benefit minus the Policy Value as of the effective date of the change.
The death benefit after a change may not be less than the minimum Specified Amount allowed as shown under Policy Data.
We reserve the right to decline to make any death benefit option change that We determine would cause this policy to fail to qualify as life insurance under applicable tax laws.
Request to Change Risk Classification or Substandard Class Risk Factor
While this policy is in force and prior to the Youngest Insureds Attained Insurance Age 119 Anniversary, You may apply for a change to a more favorable substandard class risk factor or risk classification for either or both Insureds. Such changes are subject to the rules below.
1. | You must apply for the change by Written Request on a form satisfactory to Us. |
2. | You must furnish satisfactory proof of insurability of the Insured for the change. |
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3. | Any change will be subject to Our |
underwriting | rules and requirements at the |
time | is requested. |
4. | Any change will be effective on the Monthly |
Date | on or next following the date Your |
application | is approved. |
Unless reclassification, premiums, cost of
insurance, administrative charge, and surrender
charges will be based on the new classification.
Updated policy data pages reflecting the new
amounts will be provided.
The reclassification may result in adverse tax
consequences. Consult with Your own tax advisor
before proceeding with the reclassification.
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POLICY VALUES
Policy Value
On a given date the Policy Value equals the Fixed Account Value plus the Variable Account Value plus the values in the Indexed Account(s).
Fixed Account Value
On the Policy Date, the Fixed Account Value equals:
1. | The portion of the initial Net Premiums received prior to or on the Policy Date which are allocated to the Fixed Account; minus |
2. | The portion of the monthly deduction taken from the Fixed Account for the first policy month. |
On any subsequent date, the Fixed Account Value will be calculated as:
(a) + (b) + (c) + (d) + (e) + (f) + (g) - (h) (i) (j)
where:
(a) | Is the Fixed Account Value as of the prior day; |
(b) | Is interest earned on (a) above since the prior day; |
(c) | Is the portion of Net Premiums allocated to the Fixed Account and received since the prior day; |
(d) | The amount of any transfers from the Subaccounts to the Fixed Account, including transfers due to loans taken or interest charged on Indebtedness, since the prior day; |
(e) | Is the amount of any transfers from the Indexed Account(s) to the Fixed Account due to loans taken or interest charged on Indebtedness since the priori day; |
(f) | Is the portion of segment maturity values of any Indexed Account(s) reallocated to the Fixed Account since the prior day; |
(g) | Is any applicable Policy Value credit allocated to the Fixed Account since the prior day; |
(h) | Is the amount of any transfers from the Fixed Account, including loan repayment transfers, to any Subaccounts or Indexed Account(s) since the prior day; |
(i) | Is the amount of any partial surrender and partial surrender fees taken from the Fixed Account since the prior day; and |
(j) | If the date of calculation is a Monthly Date, the portion of the monthly deduction taken from the Fixed Account. |
Variable Account Value
The Variable Account Value is the sum of the values of the Subaccounts.
On the Policy Date, the value of each Subaccount equals:
1. | The portion of the initial Net Premiums received prior to or on the Policy Date which are allocated to the Subaccount; minus |
2. | The portion of the monthly deduction taken from the Subaccount for the first policy month. |
On any subsequent date, the value of each
Subaccount is calculated as:
(a) + (b) + (c) + (d) + (e) - (f) (g) (h)
where:
(a) | Is the value of the Subaccount on the preceding Valuation Date, multiplied by the net investment factor for the current Valuation Period; |
(b) | Is the portion of Net Premiums allocated to the Subaccount and received during the current Valuation Period; |
(c) | Is the amount of any transfers from other Subaccounts or the Fixed Account, including loan repayment transfers, to the Subaccount during the current Valuation Period; |
(d) | Is the portion of segment maturity values of any Indexed Account(s) reallocated to the Subaccounts during the current Valuation Period; |
(e) | Is any applicable Policy Value credit allocated to the Subaccount during the current Valuation Period; |
(f) | Is the amount of any transfers from the Subaccount to other Subaccounts, any Indexed Account(s), or the Fixed Account, including transfers due to loans taken or interest charged on Indebtedness, during the current Valuation Period; |
(g) | Is the amount of any partial surrender and partial surrender fees taken from the Subaccount during the current Valuation Period; and |
(h) | Is the portion of any monthly deduction during the current Valuation Period allocated to the Subaccount for the policy month following the Monthly Date. |
Indexed Account Value
On the Policy Date, the value of an Indexed Account equals:
1. | The portion of the initial Net Premiums received prior to or on the Policy Date which are allocated to the Indexed Account(s); minus |
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2. | The portion of the monthly deduction taken from the Indexed Account(s) for the first policy month. |
These amounts will be applied and remain in the interim account until the next sweep date, subject to the provisions of this policy.
On any subsequent date, the value of an Indexed Account equals the value of the interim account plus the sum of the segment values.
Interim Account Value
On the start date of a new segment of an Indexed Account, the value of the corresponding interim account equals zero.
On any subsequent date, the value of the interim account will be calculated as:
(a) + (b) + (c) + (d) + (e) +(f) - (g) - (h) - (i)
where:
(a) | Is the interim account value as of the prior day; |
(b) | Is interest earned on (a) above since the prior day; |
(c) | Is the portion of Net Premiums allocated to the corresponding Indexed Account(s) and received since the prior day; |
(d) | Is the portion of segment maturity values of any Indexed Account(s) reallocated to the Indexed Account(s) since the prior day; |
(e) | Is the amount of any transfers from the Fixed Account and Subaccounts to the Indexed Account(s), including loan repayment transfers, since the prior day; |
(f) | Is any applicable Policy Value credit allocated to the Indexed Account(s) since the prior day; |
(g) | Is the amount of any transfers from the interim account to the Fixed Account due to loans taken or interest charged on Indebtedness since the prior day; |
(h) | Is the amount of any partial surrender and partial surrender fees taken from the interim account since the prior day; and |
(i) | If the date is a Monthly Date, the portion of the monthly deduction taken from the interim account. |
Segment Value
The value of a segment on the segment start date equals the amount transferred to the segment from the interim account on the
sweep date, plus any amounts reallocated to the Indexed Account from any segment maturing on the same date.
On any subsequent date, the segment value will be calculated as:
(a) + (b) + (c) - (d) - (e) - (f)
where:
(a) | Is the segment value as of the prior day: |
(b) | Is the amount of any segment guaranteed interest earned on (a) above since the prior day; |
(c) | Is any indexed interest credited since the prior day; |
(d) | Is the amount of any transfers from the segment to the Fixed Account due to loans taken or interest charged on Indebtedness since the prior day; |
(e) | Is the amount of any partial surrender and partial surrender fees taken from the segment since the prior day; and |
(f) | If the date is a Monthly Date, is the amount of any monthly deduction taken from the segment. |
Interest Rate Used to Determine the Fixed Account and Interim Account Values
The interest rate applied in the calculation of value of the Fixed Account and interim accounts is the guaranteed interest rate shown under Policy Data. Interest in excess of the guaranteed rate may be applied in the calculation of these values. Excess interest rates used for the Fixed Account and interim accounts may be different. Any change in excess interest rates will be determined by Us based on Our expectations as to future investment earnings.
Interest in excess of the guaranteed interest rate shown under Policy Data will not be applied to the portion of the Policy Value which equals any Indebtedness due Us. Interest in excess of the guaranteed interest rate is nonforfeitable, except indirectly due to any applicable surrender charge.
Segment Guaranteed Interest
We will credit interest according to the segment guaranteed interest crediting frequency shown in the Indexed Account Information section under Policy Data to each segment from the segment start date to segment maturity. The interest is credited at an annual rate equal to the segment
116947 | Page 18 | 2/22 |
guaranteed annual interest rate shown in the Indexed Account Information section under Policy Data. The amount of such interest is called the segment guaranteed interest. Segment guaranteed interest is nonforfeitable, except indirectly due to any applicable surrender charges.
Indexed Interest
Indexed interest, as described in the Indexed Account Information section under Policy Data, will be credited to a segment at the end of each indexed interest period. An indexed interest period starts at the later of:
1. | The segment start date; or |
2. | The end of the previous indexed interest period. |
The end of an indexed interest period will be the same day of the month as the start of the indexed interest period.
Indexed interest will be credited at the end of an indexed interest period only if this policy has been continuously In Force during this period. No indexed interest will be credited as a result of policy Termination occurring prior to the end of the indexed interest period.
Indexed interest credited is nonforfeitable, except indirectly due to any applicable surrender charges.
Order of Deductions from the Policy Value
Any deductions from the Policy Value will be taken from the Fixed Account, minus any Indebtedness, and Subaccounts as detailed in the provision or section of this policy describing each type of deduction, until exhausted.
When the Fixed Account, minus any Indebtedness, and the Subaccounts are exhausted, the deductions will be taken from the following:
1. | The interim accounts, proportionally based on the interim account values until exhausted; |
2. | The segments of the Indexed Account(s) starting with the most recently opened segment(s), then from the next most recently opened segments, and will continue in this manner until the amount required to satisfy the deduction has been |
met. For multiple Indexed Account segments with the same start date, the deduction will be taken proportionally out of those segments based on the values in those segments. |
Deductions from the Policy Value include monthly deductions, partial surrenders, partial surrender fees, loans, any interest charged on Indebtedness and any other adjustments to the Policy Value as a result of exercising a policy provision or rider.
Monthly Deduction
A monthly deduction is made on each Monthly Date prior to the Youngest Insureds Attained Insurance Age 120 Anniversary for the policy fee, administrative charge, cost of insurance, mortality and expense risk charge, indexed account charge, and cost of any riders for the policy month following such Monthly Date.
The monthly deduction for a policy month will be calculated as:
(a) + (b) + (c) + (d) + (e) + (f)
where:
(a) | Is the policy fee; |
(b) | is the administrative charge; |
(c) | Is the cost of insurance for the policy month; |
(d) | Is the mortality and expense risk charge; |
(e) | Is the indexed account charge; and |
(f) | Is the cost of any policy riders for the policy month. |
The monthly deduction will be taken from the Fixed Account and the Subaccounts according to the monthly deduction allocation percentages in effect for this policy. You may choose any whole percentages for the Fixed Account and each Subaccount from 0% to 100%. By Written Request or other requests acceptable to Us, You may change the percentages. Any change will be effective for monthly deductions taken thereafter.
If You do not specify the monthly deduction allocation percentages for the Fixed Account and each Subaccount, or if the value in the Fixed Account or in any Subaccount is insufficient to pay the portion of the monthly deduction so allocated; the monthly deduction will be taken from the Fixed Account and the Subaccounts on a Pro-Rata Basis.
When the Fixed Account, minus any Indebtedness, and Subaccounts are exhausted, the monthly deduction will be made from the Indexed Account(s). Refer to the Order of Deductions from the Policy Value provision for additional information on the order that any monthly
116947 | Page 19 | 2/22 |
deduction will be made from the interim accounts and segments of the Indexed Account(s).
Policy Fee
There is a monthly policy fee deducted each month prior to the Youngest Insureds Attained Insurance Age 120 Anniversary. We reserve the right to change the policy fee based on Our expectations of future investment earnings, persistency, and/or expenses. However, it will never exceed the guaranteed policy fee shown under Policy Data.
Administrative Charge
There is a monthly administrative charge deducted each month prior to the Youngest Insureds Attained Insurance Age 120 Anniversary. We reserve the right to change the administrative charge based on Our expectations of future investment earnings, persistency, and/or expenses. However, it will never exceed the guaranteed administrative charge shown under Policy Data.
Cost of Insurance
The cost of insurance for the policy month is calculated as:
(a + d) x (b - c)
1000
where:
(a) | Is the monthly cost of insurance rate described below; |
(b) | Is the death benefit divided by the Guaranteed Interest Rate Factor shown under Policy Data; |
(c) | Is the Policy Value at the beginning of the policy month. At this point, the Policy Value has been reduced by the monthly deduction except for the part of the monthly deduction that pays for the cost of insurance; and |
(d) | Is the flat extra rate, shown under Policy Data. |
If there have been increases in the Specified Amount, the Policy Value is allocated on a proportional basis to the initial Specified Amount and each subsequent increase.
See the Decreases of the Specified Amount provision of the policy change section for how decreases impact the initial Specified Amount and each subsequent increase.
Cost of Insurance Rate
The cost of insurance rate used in the cost of insurance calculation is based on the sex (unless issued on a unisex basis), Insurance Age, years since issue, and risk classification of each Insured.
The cost of insurance rate used in the cost of insurance calculation for any increase in Specified Amount is based on the sex (unless issued on a unisex basis), Attained Insurance Age at the time of increase, years since increase, and risk classification of each Insured at the time of increase.
We may change cost of insurance rates from time to time. Any change in the cost of insurance rate will apply to all individuals of the same risk classification as the Insured(s). Cost of insurance rates will be determined by Us based on Our expectations of mortality, reinsurance costs, future investment earnings, persistency, and/or expenses. However, the cost of insurance rates will not exceed the guaranteed Maximum Monthly Cost of Insurance Rates shown under Policy Data and are based on the CSO Mortality Tables shown under Policy Data.
Mortality and Expense Risk Charge
The mortality and expense risk charge compensates Us for assuming the mortality and expense risks under the policy. It is equal to
(a) x (b)
12 |
where:
(a) | Is the Variable Account Value; and |
(b) | Is the guaranteed mortality and expense risk rate shown under Policy Data. |
At this point, the Variable Account Value has not been reduced by any part of the monthly deduction.
We reserve the right to change the mortality and expense risk rate based on Our expectations of mortality, reinsurance costs, future investment earnings, persistency, and/or expenses. However, it will never exceed the guaranteed mortality and expense risk rate shown under Policy Data.
Indexed Account Charge
There is an Indexed Account charge deducted each month prior to the Insureds Attained Age 120 Anniversary. The monthly Indexed Account charge is the sum of the charge for each Indexed Account which equals the guaranteed Indexed Account charge for that Indexed Account, as shown under Policy Data, multiplied by the sum of the segment values of the corresponding Indexed Account as of that Monthly Date.
116947 | Page 20 | 2/22 |
We reserve the right to change the Indexed Account charge based on Our expectations of future investment earnings, persistency, and/or expenses. However, it will never exceed the guaranteed Indexed Account charge shown under Policy Data.
Policy Value Credit
We may periodically apply a Policy Value credit to Your Policy Value. The requirements that must be met to receive any Policy Value credit are shown under Policy Data.
The amount of the Policy Value credit is determined by multiplying the policy value credit percentage times the Policy Value minus any Indebtedness at the time the calculation is made.
We reserve the right to calculate and apply any Policy Value credit annually, quarterly or monthly.
Any Policy Value credit will be allocated according to Your premium allocation percentages in effect. Any Policy Value credit is nonforfeitable, except indirectly due to any applicable surrender charge.
We reserve the right to change the Policy Value credit percentage based on Our expectations of future investment earnings, persistency, and/or expenses, However, it will never be less than zero.
Basis Used for Policy Values
Values and reserves are equal to or greater than those required by law. Where required, a detailed statement of the method of computation of values and reserves has been filed with the insurance department of the state in which this policy is delivered.
Receiving Information about the Values of this Policy
At least once a year, without charge, We will send to Your last known address a report that shows:
1. | The Policy Value at the end of the previous and current report periods; |
2. | The current death benefit; |
3. | The premiums paid; |
4. | The interest credited by Us: |
5. | All charges since the last report; |
6. | Indebtedness on this policy; |
7. | The current Cash Surrender Value; |
8. | A notice if the policys Cash Surrender Value will not maintain the insurance In Force for the next year unless further premium payments are made; and |
9. | Any other information required by the state in which this policy is delivered. |
At any time and without charge, We will provide a projection of future death benefits and Policy Values upon Written Request by You.
Paid-Up Option
By Written Request, the Cash Surrender Value of this policy can be used to purchase an amount of paid-up insurance. The request may be made in the 30 days before any Policy Anniversary prior to the Youngest Insureds Attained Insurance Age 120 Anniversary. If You request this option, You will be forfeiting all rights to make future premium payments. Any riders will Terminate. The paid-up insurance policy will be effective of the Policy Anniversary after Your Written Request.
The insurance amount and Cash Surrender Value of the paid-up insurance will be based on the cost of insurance rates guaranteed in this policy, with interest at the Fixed Account guaranteed interest rate shown under Policy Data. This policys death benefit and Policy Value, both as of the date of the paid-up policys purchase, will also be used to compute the paid-up policys insurance amount. The paid-up policys insurance amount, minus its Cash Surrender Value, cannot be greater than this policys death benefit, minus its Policy Value. The amount purchased will remain level and mature on the Policy Anniversary prior to the Youngest Insureds Attained Insurance Age 120 Anniversary. Any Cash Surrender Value of the policy that is not used to purchase the paid-up insurance amount will be paid to You. The amount paid-up insurance will not be less than that required by law of the state in which this policy is delivered.
At any time before the last surviving Insureds death, You may surrender the paid-up insurance for its Cash Surrender Value.
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POLICY SURRENDER
Policy Surrender
You may surrender this policy for its Cash Surrender Value at any time by Written Request, or other requests acceptable to Us. Upon surrender for the full Cash Surrender Value, this policy will Terminate.
The Cash Surrender Value of this policy is:
1. | The Policy Value at the time of surrender; minus |
2. | Any Indebtedness on this policy; minus |
3. | Any applicable surrender charges shown under Policy Data. |
Partial Surrender
Subject to the rules below, You may partially surrender this policy by Written Request, or other requests acceptable to Us for an amount less than the Cash Surrender Value. A partial surrender fee will be applied as shown under Policy Data.
If death benefit option 1 is in effect, both the Specified Amount and the Policy Value will be reduced by the amount of the partial surrender and partial surrender fee. If death benefit option 2 is in effect, the Policy Value will be reduced by the amount of the partial surrender and partial surrender fee.
Various provisions of this policy may be affected by partial surrenders, including the no-lapse guarantee as described in the Premiums section.
Rules for a Partial Surrender
The following rules shall apply to any partial surrender:
1. | Partial surrenders may not be made in the first policy year; |
2. | The minimum amount that may be surrendered is $500; |
3. | The partial surrender amount cannot exceed 90% of the full Cash Surrender Value; and |
4. | Partial surrenders may not be made if the Specified Amount that remains In Force is less than the minimum Specified Amount allowed as shown under Policy Data. |
We reserve the right to decline a request for a partial surrender that We determine would cause this policy to fail to qualify as life insurance under applicable tax laws. You can specify the percentages for the allocation of the partial surrender from the Fixed Account and each Subaccount. If You do not specify the percentages
for allocation of the partial surrender from the Fixed Account and each Subaccount, the surrender will be made from the Fixed Account and the Subaccounts on a Pro-Rata Basis. When the Fixed Account, minus any Indebtedness, and Subaccounts are exhausted, the partial surrender will be made from the Indexed Account(s). Refer to the Order of Deductions from the Policy Value provision for additional information on the order that any partial surrender will be made from the interim accounts and segments of the Indexed Account(s).
Payment of a Surrender
We will normally pay the portion of any surrendered amount from the Subaccounts within seven days after We receive Your Written Request. We reserve the right, however, to suspend or delay the date of any surrender payment from the Subaccounts for any period:
1. | When the New York Stock Exchange is closed; |
2. | When trading on the New York Stock Exchange is restricted; |
3. | When an emergency exists, and as a result: |
(a) | Disposal of securities held in the Subaccounts is impractical; or |
(b) | It is impractical to fairly determine the value of the assets of the Subaccounts; or |
4. | During any other period when the Securities and Exchange Commission, by order, so permits for the protection of security holders. |
Rules and regulations of the Securities and Exchange Commission will govern as to whether the conditions set forth in the above items 2 and 3 exist.
Additionally, for any surrender request from the Fixed Account or Indexed Account(s), We reserve the right to postpone the payment for up to six months after We receive Your Written Request. If We postpone payment more than 10 days after we receive the documentation necessary to complete the surrender, We will also pay You interest at the rate of interest currently in effect for the provision entitled Option A Interest Payments in the Payment of Proceeds section of this policy. However, no interest will be paid if the amount of interest is less than $25.
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POLICY LOANS
Borrowing Money on this Policy
By Written Request or other requests acceptable to Us, You may obtain a loan from Us at any time before the last surviving Insureds death whenever this policy has a Cash Surrender Value. This policy is the only security required for Your loan. We will pay interest on the Policy Value loaned at the guaranteed interest rate shown under Policy Data.
If You do not specify the percentages for allocation of the loan from the Fixed Account and each Subaccount, the loan will be made from the Fixed Account and the Subaccounts on a Pro-Rata Basis.
When the Fixed Account, minus any Indebtedness, and Subaccounts are exhausted, the loan will be taken from the Indexed Account(s). Refer to the Order of Deductions from the Policy Value provision for additional information on the order that any loans will be taken from the interim accounts and segments of the Indexed Account(s).
The amount of any loan and loan interest from the Subaccounts will be transferred from the Subaccounts or Indexed Account(s) to the Fixed Account.
Various provisions of this policy may be affected by loans, including the no-lapse guarantee as described in the Premiums section.
Maximum Loan Value of this Policy
You can borrow an amount up to 90% of the Cash Surrender Value. The maximum loan value is the Policy Value minus surrender charges, minus any existing Indebtedness. We calculate the Policy Value as of the date of the loan. In determining the maximum loan value, We reserve the right to subtract monthly deductions and loan interest for three months.
Interest Rate for a Policy Loan
Loan interest is charged daily and payable at the end of the policy year. If interest is not paid when it is due, it will be added to Your Indebtedness and charged the same interest rate as Your loan.
The additional loan interest will be taken from the Fixed Account and Subaccounts on a Pro-Rata Basis. When the Fixed Account, minus any Indebtedness, and Subaccounts are exhausted, the additional loan interest will be taken from the Indexed Account(s). Refer to the Order of
Deductions from the Policy Value provision for additional information on the order that any loan interest will be taken from the interim accounts and segments of the Indexed Account(s).
The loan interest rate will be based on Our expectations of future investment earnings, persistency, and/or expenses. However, it will never exceed the guaranteed loan interest rate shown under Policy Data. Any change in the loan interest rate will apply to all policies of the same class and duration.
Loan Repayment
Your loan can be repaid in full or in part at any time before the last surviving Insureds death and while this policy is In Force. A loan that exists at the end of the grace period may not be repaid unless this policy is reinstated.
Repayments should be clearly marked as loan repayments; otherwise, they will be credited to this policy as premiums.
Loan repayments will be allocated according to Your premium allocation percentages in effect.
Failure to Repay a Loan
Failure to repay a loan or to pay loan interest will not Terminate this policy unless the Cash Surrender Value is insufficient to cover the monthly deduction as provided in the Grace Period provision. This would happen if Indebtedness exceeded the Policy Value minus surrender charges.
Payment of a Loan
We will normally pay the portion of any loan amount from the Subaccounts within seven days after We receive Your Written Request. We reserve the right, however, to suspend or delay the date of any loan from the Subaccounts for any period:
1. | When the New York Stock Exchange is closed; |
2. | When trading on the New York Stock Exchange is restricted; |
3. | When an emergency exists, and as a result: |
(a) | Disposal of securities held in the Subaccounts is impractical; |
(b) | It is impractical to fairly determine the value of the assets of the Subaccounts; or |
4. | During any other period when the Securities and Exchange Commission, by order, so permits for the protection of security holders. |
116947 | Page 23 | 2/22 |
Rules and regulations of the Securities and Exchange Commission will govern as to whether the conditions set forth in the above items 2 and 3 exist.
Additionally, for any loan from the Fixed Account or Indexed Account(s), We reserve the right to postpone the payment for up to six months after We receive Your Written Request unless the loan is used to pay premiums on any policies You have with Us. If We postpone payment more than 10 days after We receive the documentation necessary to complete the loan, We will also pay You interest at the rate of interest currently in effect for the provision entitled Option A Interest Payments in the Payment of Proceeds section of this policy. However, no interest will be paid if the amount of interest is less than $25.
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SUBACCOUNTS
Subaccount Allocations and Transfers
We convert and credit amounts allocated or transferred to the Subaccounts You specify into Accumulation Units. Accumulation Units are removed from Policy Value when surrenders, transfers or charges are taken from the Subaccounts.
Subaccounts purchase or redeem, as applicable, shares of the fund corresponding to the Subaccounts.
Subaccount Accumulation Units
For each of the Subaccounts, the determination of the number of Accumulation Units to credit to or subtract from Your Policy Value for each transaction is found by dividing: (1) the amount allocated to or transferred from the Subaccount; by (2) the Subaccounts Accumulation Unit value for the Valuation Period in which We processed the transaction request.
Subaccount Accumulation Unit Value
The value of an Accumulation Unit for each of the Subaccounts is arbitrarily set at $1 when the Subaccount is established. The value for any later Valuation Period is found as follows: The Accumulation Unit value for a Subaccount for the last prior Valuation Period is multiplied by such Subaccounts net investment factor for the following Valuation Period. The result is the current Accumulation Unit value. The value of an Accumulation Unit may increase or decrease from one Valuation Period to the next.
Determination of Net Investment Factor
The net investment factor is an index applied to measure the investment performance of a Subaccount from one Valuation Period to the next. The net investment factor of an Accumulation Unit may increase or decrease from one Valuation Period to the next.
To find the net investment factor of any such Subaccount for a Valuation Period, We divide (1) by (2), where:
(1) | Is the net result of: |
(a) | The net asset value per share of the portfolio or fund held in the Subaccount determined at the end of the current Valuation Period; plus |
(b) | The per-share amount of any dividend or capital gain distributions made by the investment held in the Subaccount; and |
(2) | Is the net result of: |
(a) | The net asset value per share of the portfolio or fund held in the Subaccount, determined at the end of the last prior Valuation Period. |
Subaccount Value
The Subaccount value is determined by multiplying the current number of Accumulation Units credited to the Subaccount by the corresponding Accumulation Unit value.
Change of Investments of the Subaccounts
We may substitute the funds in which the Subaccounts invest only if laws or regulations change, the existing funds became unavailable, or in Our judgment, the funds are no longer suitable for the Subaccounts. If any of these situations occur, We have the right to substitute investments. When required, We would first seek the approval of the Securities and Exchange Commission and the insurance regulator of the state where this policy is delivered.
We will notify You of any changes to the Subaccounts or if a Subaccount becomes unavailable.
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INDEXED ACCOUNTS
Indexed Account Overview
You may allocate all or a portion of Your Policy Value to one or more Indexed Account(s), for which interest will be calculated based on the change in the final value of the designated index(es). The Indexed Account(s) available on the Policy Date, as well as how indexed interest is calculated, are shown in the Indexed Account Information section under Policy Data. We may add or discontinue Indexed Account(s).
Discontinuance of Indexed Account(s) by Us
We reserve the right to stop offering one or more Indexed Account(s) for any reason. At that time the following will occur:
1. | The premium allocation percentage in effect for any discontinued Indexed Account will be changed to allocate that percentage to the Fixed Account; |
2. | Any Indexed Account with a segment reallocation percentage allocated to the discontinued Indexed Account will be changed to allocate that percentage to the Fixed Account; and |
3. | No transfers will be allowed to discontinued Indexed Account(s). |
Substitution of an Index
We may substitute a comparable index subject to any approval necessary by the state in which this policy is delivered if:
1. | An index is discontinued; |
2. | The calculation of the index is changed substantially; or |
3. | At Our sole discretion We determine that an index should no longer be used. |
If an index is discontinued or substantially changed, We may mature segments early. We will calculate the indexed interest by multiplying the average segment value as of that date by the indexed interest rate.
The calculation of the indexed interest rate will be adjusted as follows:
1. | It will use an adjusted index change rate that reflects the most recently available final value of the index before it was discontinued or substantially changed; |
2. | It will use an adjusted segment growth cap and segment floor. The adjusted amounts will be equal to: |
(a) x (b)/(c)
where:
(a) | Is the value of the segment growth cap or segment floor set at the beginning of the segment term; |
(b) | Is the number of full months since the end of the last indexed interest period; and |
(c) | Is the number of months in the indexed interest period. |
If We mature a segment early, We will notify You as soon as reasonably practicable.
If We substitute a comparable index at Our discretion, the new index will only apply to new segments.
However, before a substitute index is used, We will notify You and any assignee of record of the substitution.
If no such comparable index is approved or it would not be prudent to substitute such an index, We reserve the right to stop offering the Indexed Account, in which case the value of the discontinued Indexed Account will be transferred to the Fixed Account.
Segment Overview
Segment and Segment Start Date
A segment is the portion of an Indexed Account that is associated with a particular segment start date. A new segment will be created as a result of:
1. | A transfer from the interim account on a sweep date, or |
2. | The reallocation of segment maturity value to the Indexed Account from any segment of any Indexed Account maturing on the same date. |
However, if the sum of these values for an individual Indexed Account, excluding interest in the interim account, is less than the minimum transfer amount, as shown in the Indexed Account Information section under Policy Data:
1. | A new segment of that Indexed Account will not be created; and |
2. | The transfer from the interim account of that Indexed Account will not occur; and |
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3. | The reallocation of any segment maturity value to the Indexed Account will be transferred to the corresponding interim account. |
The date on which amounts are transferred or reallocated to the Indexed Account is referred to as the segment start date. Segment months, segment years, and segment terms are all measured from this date. A segment will continue until the end of the segment term, which is referred to as the segment maturity date.
Segment Term
A segment term is the length of time a segment is open. Each segment begins on its segment start date and ends on its segment maturity date, which is determined by the segment term. The segment term for each Indexed Account is shown in the Indexed Account Information section under Policy Data.
Segment Maturity
Segment maturity is the last day of a segment term.
At segment maturity, the following happens:
1. | Indexed interest is calculated as described in the Indexed Account Information section under Policy Data and credited to the segment resulting in the segment maturity value; |
2. | The segment maturity value is reallocated to the Fixed Account, any available Indexed Account(s), and Subaccounts according to the segment reallocation percentages in effect; |
3. | The maturing segment ends. |
Each available Indexed Account will have a segment reallocation percentage. For the segment reallocation percentage, You may choose any whole percentage for each account from 0% to 100%. The sum of Your segment reallocation percentages must equal 100%. You may change the segment reallocation percentages at any time by Written Request or other request acceptable to Us. Subject to the segment cut-off date, as shown under Policy Data, any change to the segment reallocation percentages will be effective for all segments of an Indexed Account maturing after Our receipt of the request. We reserve the right to restrict the ability to reallocate all or part of the segment maturity value to the Subaccounts and/or Fixed Account based on Our expectations of persistence, utilization, expenses and/or future investment earnings.
In the absence of any instructions from You, the segment maturity value will be reallocated to the
same Indexed Account, if available. If the Indexed Account is not available, the segment maturity value will be reallocated to the Fixed Account.
Once payment of benefits begin for any rider paying benefits due to chronic or terminal illness, the segment reallocation percentages will be set to allocate all amounts to the Fixed Account. The segment reallocation percentages cannot be changed while on claim. Upon expiry of the claim, We must receive written instructions from You in order to change the segment reallocation percentages.
On the Youngest Insureds Attained Insurance Age 119 Anniversary, segment reallocation percentages will be set to allocate any segment maturity value to the Fixed Account and may not be changed.
Sweep Dates
Sweep dates are the dates on which amounts in the interim account are transferred into a new segment of the corresponding Indexed Account. The initial sweep dates as of the issue date are shown in the Indexed Account Information section under Policy Data. We reserve the right to change the day and frequency of the sweep dates. However, sweep dates will not occur less frequently than once per calendar quarter.
Segment Cut-off Date
A segment cut-off date is the date by which We must receive the following instructions in order for those items to be effective on a sweep date:
1. | Instructions for changes to the premium allocation percentages; |
2. | Instructions for changes to the segment reallocation percentages at segment maturity. |
Net Premiums, loan repayments, and transfers must be received by the close of business of any given segment cut-off date to be eligible for transfer on the sweep date. Net Premiums, loan repayments, and transfers received between the segment cut- off date and sweep date will remain in the interim account and may be transferred to a new segment on the next sweep date, subject to the provisions of this policy.
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TRANSFERS OF VALUE AMONG ACCOUNTS
Transfers from the Subaccounts
By Written Request or other requests acceptable to Us, You may transfer all or part of the value of a Subaccount to one or more of the other Subaccounts, one or more of the Indexed Account(s) or to the Fixed Account. The amount transferred, however, must be at least: (1) $250; or (2) the total value of the Subaccount, if less. We reserve the right to limit such transfers to five per policy year. We may suspend or modify this transfer privilege at any time with the necessary approval of the Securities and Exchange Commission and the insurance regulator or the state in which this policy is delivered. The amount of any such transfer to an Indexed Account will be allocated to the corresponding interim account on the date it is received.
We reserve the right, however, to suspend or delay the date of any transfer from the Subaccounts for any period:
1. | When the New York Stock Exchange is closed; |
2. | When trading on the New York Stock Exchange is restricted; |
3. | When an emergency exists, and as a result: |
(a) | Disposal of securities held in the Subaccounts is impractical; or |
(b) | It is impractical to fairly determine the value of the assets of the Subaccounts; or |
4. | During any other period when the Securities and Exchange Commission, by order, so permits for the protection of security holders. |
Rules and regulations of the Securities and Exchange Commission will govern as to whether the conditions set forth in the above items 2 and 3 exist.
Transfers from the Fixed Account to the Subaccounts
By Written Request or other requests acceptable to Us, You may also transfer value from the Fixed Account to the Subaccounts once a year, but only on the Policy Anniversary or within 30 days after such Policy Anniversary. If You make this transfer, You cannot transfer from the Subaccounts back into the Fixed Account
until the next Policy Anniversary. If We receive Your Written Request within 30 days before the Policy Anniversary date, the transfer from the Fixed Account to the Subaccounts will be effective on the Policy Anniversary date. If We receive Your Written Request within 30 days after the Policy Anniversary date, the transfer from the Fixed Account to the Subaccounts will be effective on the date We receive the request. The minimum transfer amount is $250 or the Fixed Account Value minus Indebtedness, if less. The maximum transfer amount is the Fixed Account Value, minus Indebtedness. We may suspend or modify this transfer privilege at any time with the necessary approval of the Securities and Exchange Commission and the insurance regulator of the state in which this policy is delivered.
Additionally, for any transfer request from the Fixed Account to a Subaccount, We reserve the right to postpone the transfer for up to six months after We receive Your Written Request. If We postpone payment more than 10 days after We receive the documentation necessary to complete the transfer, We will also pay You interest at the rate of interest currently in effect for the provision entitled Option A Interest Payments in the Payment of Proceeds section of this policy. However, no interest will be paid if the amount of interest is less than $25.
Transfers from the Fixed Account to one or more of the Indexed Accounts
By Written Request or other request acceptable to Us, You may also transfer from the Fixed Account to one or more of the Indexed Account(s). The maximum amount that may be transferred is the Fixed Account Value minus any Indebtedness minus the value of a transfer to one or more of the Subaccounts occurring on the same day. The amount of any such transfer to an Indexed Account will be allocated to the corresponding interim account on the date it is received.
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Automated Transfers
Automated transfers may also be allowed. By an automated transfer arrangement, You may transfer:
1. | all or part of the value of a Subaccount to one or more of the other Subaccounts, one or more of the Indexed Account(s) and/or to the Fixed Account; or |
2. | all or part of the Fixed Account Value, minus Indebtedness, to one or more of the Subaccounts and/or to one or more of the Indexed Account(s). |
Only one automated transfer arrangement can be in effect at any time. The arrangement may transfer value to multiple accounts including the Fixed Account, Subaccounts and/or Indexed Account(s). Either the Fixed Account or one or more of the Subaccounts can be used as the source of funds for any automated transfer arrangement. The Indexed Account(s) may not be used as the source of funds of any transfer.
The minimum automated transfer amount is $50.
No automated transfer that includes transfers from the Fixed Account to a Subaccount can be set up that, if continued, would deplete the Fixed Account within 12 months. There is no such restriction on the time to deplete the Fixed Account when the automated transfer arrangement transfers value from the Fixed Account to one or more of the Indexed Account(s) only and does not include transfers to any Subaccount.
Transfers Not Allowed
Transfers of value are not allowed for the following conditions:
1. | from an Indexed Account segment prior to segment maturity, except transfers due to policy loans taken or interest charged on Indebtedness; |
2. | from the Fixed Account or any Subaccount to any Indexed Account when the policy is in a transfer restriction period. See the transfer restriction period provision in the Indexed Accounts section for additional information; or |
3. | from the Fixed Account to any Subaccount or Indexed Account after the Insureds Attained Insurance Age 120 |
Anniversary.
Transfers at the Youngest Insureds Attained Insurance Age 120 Anniversary
On the Youngest Insureds Attained Insurance Age 120 Anniversary, any Policy Value in the Subaccounts will be transferred to the Fixed Account.
Transfer Restriction Period
A transfer restriction period is a 12-month period of time which begins on any date there is loan or withdrawal that is not part of a Systematic Distribution Program from a segment of any Indexed Account. Any deduction from a segment due solely to an increase in Indebtedness from interest charged on a loan will not trigger the start of a transfer restriction period.
During this period the following restrictions apply:
1. | no transfers from the Fixed Account or Subaccounts to any Indexed Account(s) will be allowed; and |
2. | Indexed Account premium allocation percentages will change to allocate all premium and loan repayments to the Fixed Account. |
We reserve the right to shorten or eliminate the transfer restriction period. We will exercise this right in a uniform and non-discriminatory manner.
Upon expiry of the transfer restriction period, We must receive Your Written Request or other requests acceptable to Us in order to transfer any amount in the Fixed Account or Subaccounts to any Indexed Account(s) or to change the premium allocation percentage.
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PAYMENT OF POLICY PROCEEDS
Payment of Proceeds upon Death of the Insured
Upon death of the last surviving Insured, the Proceeds will be paid in a single sum unless a payment option has been selected. The date on which the Proceeds are paid in a lump sum or first placed under a payment option is the settlement date. The Proceeds will be paid upon Our receipt of the following:
1. | Due proof of death; |
2. | Information sufficient to determine Our liability and the appropriate payee legally entitled to the Proceeds; and |
3. | If Proceeds depend on the action of parties other than Us, the date that legal impediments to payment are resolved and sufficient evidence is provided to Us. |
Proceeds shall accrue interest at the Option A Interest Rate, shown under Policy Data in the Payment of Policy Proceeds Option Tables, from the date of death to the settlement date
We reserve the right, however, to suspend or delay the portion of the Proceeds upon death that is paid from the value of the Subaccounts for any period:
1. | When the New York Stock Exchange is closed; |
2. | When trading on the New York Stock Exchange is restricted; |
3. | When an emergency exists, and as a result: |
(a) | Disposal of securities held in the Subaccounts is impractical; or |
(b) | It is impractical to fairly determine the value of the assets of the Subaccounts; or |
4. | During any other period when the Securities and Exchange Commission, by order, so permits for the protection of security holders. |
Rules and regulations of the Securities and Exchange Commission will govern as to whether the conditions set forth in the above items 2 and 3 exist.
Payment Options Other than a Single Sum
During an Insureds lifetime, You may request in writing that We pay the Proceeds upon death of the last surviving Insured or upon surrender of the policy under one or more of the payment options as described in the policy or You may change a prior election. You may elect other payment options not shown if We agree.
However, unless We agree otherwise, a payment option may be selected only if the payments are to be made to a natural person in that persons own right. Also, the amount of Proceeds placed under a payment option must be at least $5,000.
Option A - Interest Payments
This option provides for payment of interest on the Proceeds placed under this option at the Option A Interest Rate, shown under Policy Data in the Payment of Policy Proceeds Option Tables, per year compounded annually. We will make regular interest payments at intervals and for a period that is agreeable to both You and Us. At the end of any payment interval, a withdrawal of Proceeds may be made in amounts of at least $100. At any time, all of the Proceeds that remain may be withdrawn or placed under a different payment option approved by Us.
Option B - Payments for a Specified Period
This option provides for monthly payments for a specified number of years. The amount of each monthly payment for each $1,000 placed under this option is shown in the Option B Table under Policy Data in the Payment of Policy Proceeds Option Tables. The monthly payments will not be less than that which would be provided if a single payment immediate annuity contract, then offered by Us to annuitants in the same class were to be purchased for amounts of either:
1. | Upon surrender of the policy, the Cash Surrender Value; or |
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2. | Upon death of the last surviving Insured, the death benefit minus any Indebtedness, as of the date of the last surviving Insureds death. |
Monthly payments for years not shown will be furnished upon request.
Option C - Lifetime Income
This option provides for monthly payments for the life of the person (the payee) who is to receive the income. Payments will be guaranteed for either 5, 10, or 15 years. The amount of each monthly payment for each $1,000 placed under this option will be based on Our Table of Settlement rates in effect at the time of the first payment. The amounts will not be less than those in the Option C Table, shown under Policy Data in the Payment of Policy Proceeds Option Tables, for the sex (unless issued on a unisex basis) and age of the payee on the due date of the first payment. The monthly payments will not be less than that which would be provided if a single payment immediate annuity contract,
then offered by Us to annuitants in the same class were to be purchased for amounts of either:
1. | Upon surrender of the policy, the Cash Surrender Value; or |
2. | Upon death of the last surviving Insured, the death benefit minus any Indebtedness, as of the death of the last surviving Insureds death. |
Monthly income amounts for any age not shown in the Option C Table will be furnished upon request.
Beneficiary Request of Payment Option
After the last surviving Insureds death but before any Proceeds are paid, the beneficiary may select a payment option by Written Request on a form satisfactory to Us.
However, You may provide that the beneficiary will not be permitted to change the payment option You have selected.
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THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK
FLEXIBLE PREMIUM SURVIVORSHIP VARIABLE ADJUSTABLE LIFE WITH INDEX-LINKED INTEREST OPTION(S) INSURANCE POLICY
- | Policy continues until surrender, lapse, or the last surviving Insureds death. |
- | Death benefit payable at last surviving Insureds death. |
- | Flexible premiums payable as provided herein. |
- | This policy is nonparticipating. Dividends are not payable. |
- | While the interest earned in an Indexed Account is affected by an external index (es), the policy does not directly invest in any index. |
RiverSource Life Insurance Co. of New York
20 Madison Avenue Extension
Albany, New York 12203
1.800.541.2251
RiverSource Life Insurance Co. of New York
20 Madison Avenue Extension
Albany, New York 12203
1.800.541.2251
Policy Split Option Rider
Based on the application for this rider, this rider is made a part of the policy. This rider is subject to all policy terms and provision unless this rider changes them. This rider does not increase Your Policy Values.
An exchange under this rider will not qualify as a tax-free exchange under Section 1035 of the Internal Revenue Code (Code) and therefore may be subject to tax consequences. We urge You to consult with Your own tax advisor about the tax consequences of an exchange prior to You exercising this option.
Rider Benefit
While this rider is In Force, this policy may be exchanged, without evidence of insurability, for two individual permanent plans of life insurance We are then issuing, one on each of the Insureds upon the occurrence of one of the following:
1. | a final divorce decree with respect to the marriage of the Insureds is issued by a court of competent jurisdiction in the United States; or |
2. | the Federal estate tax law is changed resulting in removal of the unlimited marital deduction or reduction of the maximum estate tax rate by 50% or more (measured from the effective date of this rider); or |
3. | there is a legal dissolution of a business conducted or owned by the Insureds. |
Conditions for an Exchange
The following conditions must be met in order to make the exchange:
Both Insureds must be living on the exchange date; and
1. | neither Insured can have a substandard class risk factor on the policy to which this rider is attached, if applicable, greater than 2.00; and |
2. | You must request the exchange in writing within one year of the first enactment date of the Federal estate tax law change described above, if applicable; and |
3. | You must request the exchange in writing no sooner than 180 days after and no later than one year after the final divorce decree, if applicable. You must provide Us with a copy of the final divorce decree within the same time period; and |
4. | You must request the exchange in writing within 180 days of the legal dissolution of a business, if applicable, and provide satisfactory evidence that the event has occurred; and |
5. | the owner of each new policy will be the owner of this policy unless otherwise specified in the applications and must have an insurable interest in the Insured. If this policy is assigned, the assignee must consent to the exchange; and |
6. | the policy must be In Force on the exchange date; and |
7. | We must receive payment of the first premium for each new policy on or before the Policy Date of each new policy. |
The New Policy
Each new policy must be an individual permanent plan of life insurance as offered by Us on the exchange date for exchange under this rider, subject to the issue and amount limits of that policy form and Our approval. The new policy will be issued using the rates then in effect, the Insureds Attained Insurance Age, and each Insureds most recent risk classification applicable to this policy.
The initial Specified Amount of each new policy will be equal to one half of the Specified Amount of this policy less one half of any Indebtedness on this policy on the date of the exchange.
One half of the Policy Value of this policy minus one half of any Indebtedness on this policy on the date of the exchange will be applied as premium to each new policy. However, We reserve the right to limit the amount of the premium transferred to each new policy in order to satisfy Section 7702 of the Code.
139582 | 1 | 10/14 |
Effective Date of New Policies
The new policies will become effective on the date We receive Your written request at Our Home Office.
New Policies Cancelled Under Free-Look Provision
If You return either of the new policies under a free-look or right to examine this policy provision, We will refund for each policy returned an amount equal to one half of the Cash Surrender Value of this policy plus all additional premiums paid for the new policy.
Policy Incontestability and Suicide Exclusion Provisions for New Policies
The policy incontestability and suicide exclusion periods of the new policies will be measured from the Policy Date of this policy or from the date of any policy change on this policy which required evidence of insurability.
For any increase or additional riders on the new policies which required evidence of insurability, the incontestability and suicide exclusion periods will be measured from the effective dates of the new policies.
Termination of Riders
Riders attached to this policy will Terminate on the effective date of the policy split option.
Cost of this Rider
There is only a charge for this rider if an exchange is made. The maximum exchange charge shown under Policy Data will be deducted from the Policy Value of this policy on the day prior to the exchange date.
Rider Termination
This rider will terminate on the earliest of the following:
1. | the Monthly Date on or next following receipt of Your written request for coverage to end; or |
2. | the date that the first death of the two Insureds occurs; or |
3. | the Policy Anniversary on which the older of the Insureds reaches Attained Insurance Age 80; or |
4. | the date this policy is exchanged for two individual permanent plans of life insurance under this rider; or |
5. | the expiration date as shown under Policy Data; or |
6. | the date the policy Terminates. |
This rider is issued as of the Policy Date of the policy unless a different date is shown under Policy Data.
RiverSource Life Insurance Co. of New York
Secretary
139582 | 2 | 10/14 |
RiverSource Life Insurance Co. of New York
20 Madison Avenue Extension
Albany, New York 12203
1.800.541.2251
Four Year Term Insurance Rider
In consideration of the application for this rider and the payment of the cost of insurance, this rider is made a part of the policy. This rider is subject to all policy terms and provisions unless this rider changes them.
Definition of Insured(s)
The persons whose lives are insured by the policy.
Definition of Amount of Insurance
The amount of insurance provided by this rider as shown under Policy Data.
Rider Benefit
If We receive proof satisfactory to Us that the last surviving Insured died during the first four policy years and while the policy and this rider are In Force, We will pay the Amount of Insurance as shown under Policy Data for this rider to the beneficiary. The beneficiary is named in the application for the policy.
Subject to the terms of the policy, the Amount of Insurance payable by this rider to the beneficiary may be applied under one of the payment options shown in the policy.
Monthly Deduction for the Cost of this Rider
While this rider is In Force, a monthly deduction for the cost of the rider is taken from the policys value. The amount of the deduction is this riders Amount of Insurance, as shown under Policy Data, divided by 1,000 times the monthly cost of insurance rate.
Cost of Insurance Rate
The cost of insurance rate is the rate applied to this riders Amount of Insurance to determine the monthly deduction. It is based on each Insureds sex, Insurance Age, risk classification and the number of years the policy has been In Force.
We may change the cost of insurance rates from time to time. Any change in the cost of insurance rate will apply to all individuals of the same risk class as each of the Insureds. We will determine cost of insurance rates based on our expectations as
to future mortality experience. The cost of insurance rates will not exceed the Guaranteed Maximum Monthly Cost of Insurance Rates shown under Policy Data. These rates are based on the CSO Mortality Table shown under Policy Data.
Rider Changes
While this rider is In Force you may decrease this riders Amount of Insurance once per policy year by Written Request. Such request may only be made after the first policy year and is subject to the following:
The decrease in the Amount of Insurance will be effective on the Monthly Date on or next following Our receipt of Your Written Request. The Amount of Insurance that remains In Force after a requested decrease may not be less than $50,000.
Effect of Policy Changes on Rider
If the policys Specified Amount is reduced for any reason, We will reduce this riders Amount of Insurance so that is does not exceed the policys new Specified Amount multiplied by 1.22. If this riders Amount of Insurance is reduced, the monthly deduction for the cost of this rider will also be reduced.
Rider Termination
This rider will Terminate on the earliest of the following:
1. | the Monthly Date on or next following receipt of Your written request for coverage to end; or |
2. | the Expiration Date as shown under Policy Data; or |
3. | the date the policy Terminates. |
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Rider Reinstatement
If the policy and this rider lapsed as provided in the policys grace period provision, this rider may be reinstated prior to the Expiration Date if:
1. | this rider was in effect when the policy lapsed; and |
2. | the policy is reinstated; and |
3. | the requirements stated below are met. |
In order to reinstate coverage for this rider, You must:
1. | provide evidence that both Insureds remain insurable, or evidence for the last surviving Insured and due proof that the first death occurred before the date of lapse; and |
2. | pay a premium sufficient to keep this rider in force for three months; and |
3. | pay the monthly deductions that were not collected during the grace period. |
The effective date of reinstatement will be the Monthly Date on or next following the date we approve the application for reinstatement.
Misstatement of Insureds Age or Sex
If an Insureds age or sex has been misstated, the amount payable under this rider upon the last surviving Insureds death will be the Amount of Insurance, if any, that the rider cost for the policy month during which the last surviving Insureds death occurred, would have purchased had the cost of the benefits provided under the rider been calculated using the rider cost of insurance rates for the correct age or sex.
Rider Incontestability
The incontestable provision of the policy also applies to this rider.
Rider Suicide Exclusion
The suicide exclusion provision of the policy also applies to this rider.
Rider Effective Date
The effective date of this rider is the Policy Date of the policy unless a different date is shown under Policy Data.
RiverSource Life Insurance Co. of New York
Secretary
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DOC0120139554 RiverSource Life Insurance Co. of New York, 70500 Ameriprise Financial Center, Minneapolis, MN 55474 Life and Disability Income Reference Number Insurance Application Client ID Always complete Insured Information. INSURED INFORMATION 1. Insured: Insureds Name (First, Middle Initial and Last Name) Male Female Insureds Phone Number (Day) Insureds Phone Number (Evening) Is Insured the Owner? Yes No If you answered No complete this page and Owner Information section. Citizenship: U.S. Other: If Other, Insured is: Resident Alien Resident Alien with Green Card Nonresident Alien Birth Date (MMDDYYYY) State of Birth or Country of Birth U.S. Social Security Number Drivers License (DL) Number DL State of Issuance Occupation Employer Name Individual Income Net Worth Household Income $ $ $ 2. Coverage Questions: IT IS IMPORTANT THAT ANSWERS ARE TRUE, ACCURATE AND COMPLETE TO THE BEST OF YOUR KNOWLEDGE AND BELIEF. ANY MATERIAL MISREPRESENTATION COULD AFFECT YOUR INSURANCE COVERAGE. a. In the past 12 months, has the Insured been hospitalized, placed in hospice care, or been advised by a health care professional to be hospitalized or placed in hospice care on either an inpatient or outpatient basis for any reason other than normal pregnancy? Yes No b. In the past 12 months, has the Insured received treatment or advice from a health care professional for heart disease, chest pain, stroke, cancer (except basal cell carcinoma), kidney failure, liver failure or unexplained weight loss? Yes No c. Has the insured ever used tobacco or nicotine in any form? Yes No Date of Last Use (MMYYYY) d. Personal Physician or Primary Care Provider ( Check here if none.) Doctor or Clinic Name Date Last Seen (MMYYYY) Street Address City State ZIP Code Phone 3. Premium Submitted: Do not include any premium with this application if you: answered Yes to 2a or 2b above; or answered Yes to 2a or 2b in the Second Insured section (if Succession Protector, Succession Select or Survivorship IUL product applied for); or are applying for death benefits totaling over $1,000,000. No money paid with this application Money paid with this application $ If one check is submitted for multiple products, please specify the dollar amount to each product. © 20152016, 2018, 20202022 RiverSource Life Insurance Company. All rights reserved. 139554 Page 1 of 20 G (02/22) 1
DOC0220139554 Complete all applicable sections. JUVENILE INSURANCE (Complete if insured is under age 15.) Is there similar insurance in force or applied for on all siblings? Yes No If no, why? Amount of life insurance already in force on the person responsible for childs primary support $ OWNER INFORMATION (Complete if Owner is different from Insured as shown in the Insured Information section.) IndividualName (First, Middle Initial and Last Name) U.S. Social Security Number Birth Date (MMDDYYYY) Male Female Citizenship: U.S. Other: If Other, Owner is: Resident Alien Resident Alien with Green Card Relationship to Insured Nonresident Alien Does the Owner wish to designate a Successor Owner? Yes No If Yes, Successor Owners Name Relationship to Owner TrustName of Trust RevocableGrantors Taxpayer Identification Number (TIN) IrrevocableTrusts TIN Name of Trustee Date of Trust (MMDDYYYY) Address of Trustee City State ZIP Code Business or Other EntityName TIN Relationship to Insured Federal Tax Classification (if not an individual or trust, above.): Sole Proprietor Partnership S-Corporation C-Corporation Estate Limited Liability Company (LLC) (enter the tax classification: Partnership S-Corporation C-Corporation) Other Check here if Owner is an Exempt Payee (defined in IRS Form W-9 instructions) Exempt Payee Code: 5A Corporation (Code applies to Corporations only). Other Exempt Payees must submit IRS Form W-9 separately. BUSINESS INSURANCE (Complete if insurance is for business purposes.) Type of Business Insurance: Buy/Sell Business Debt Protection Split Dollar Key Person Executive Bonus/GEBA Deferred Compensation (nongovernmental) Other 139554 Page 2 of 20 G (02/22) 1
DOC0320139554 Complete all sections for life insurance products. EXISTING LIFE INSURANCE OR ANNUITIES INSURED: Do you have any other annuities or life insurance currently in force or applied for? Yes No If marked Yes, you must complete all details in the grid below, even if the existing policy is not being replaced. If you answered Yes to any of the questions on the Definition of Replacement (Form 38031), you must check Yes to Being Replaced for any affected policies and you must complete the Disclosure Statement and the Important Notice Regarding Replacement or Change of Life Insurance Policies or Annuity Contracts (Form 38032). Company Policy Number Type Amount Being Replaced Yes No Yes No Yes No Yes No Use Notes section if you have additional insurance coverage information to document. Life External Replacements: If a 1035 Exchange to the RiverSource Life Insurance Co. of New York (RiverSource Life of NY) policy will be requested, the 1035 Exchange Request (Form 38072) must also be completed. Life Internal Replacements: If Being Replaced is checked Yes and you are replacing a RiverSource Life of NY policy, by signing this application, the existing RiverSource Life of NY policy(s) listed above will be surrendered upon underwriting approval unless you inform us otherwise. The cash value should be: applied to the new RiverSource Life of NY policy, or returned to the owner. AGREEMENT TO SELL, TRANSFER OR ASSIGN LIFE INSURANCE Any party to the application is defined as the insured, owner or any beneficiary. Third Party is defined as a viatical settlement entity, life settlement entity, insurance company, other secondary market provider or premium financing entity. 1. Agreements or Incentives Has any Party to the application: Entered, or made plans to enter, into any agreement or contract to sell or assign the ownership of, or a beneficial interest in, the applied for policy; or Been promised or agreed to by any person that they will be given, or have been given, any inducement, fee or compensation as an incentive to purchase the applied for policy; or Received, or will receive, from any person any inducement, fee or compensation as incentive to purchase the applied for policy? Yes No 2. Prior Transactions Has any Party to the application ever: Sold, transferred or assigned any life insurance policy to a Third Party; or Received any inducement, fee or compensation as an incentive to purchase, sell, transfer or assign any life insurance policy? Yes No For any Yes responses to 1 or 2 above, provide details regarding any agreements, incentives or prior transactions. 139554 Page 3 of 20 G (02/22) 1
DOC0420139554 Complete for term life insurance products. LIFE INSURANCE PLAN INFORMATION: Term Life Insurance 1. Life Insurance Plan Information a. Level Term Plans: 30-Year 20-Year 15-Year 10-Year Extended Conversion Period Insured Amount $ b. Other 2. Riders/Options Waiver of Premium Accidental Death Benefit of $ Childrens Insurance Rider (CIR) Units Provide details in CIR section. Other 3. Life Insurance Premiums Annual Premium $ a. Bank Authorization (BA): Monthly Quarterly New BA Authorization Add to Existing BA with Account Number b. Systematic Payout Option (SPO) c. Direct Bill: Quarterly Semiannually Annually d. Card Billing: MasterCard American Express Visa Discover Frequency (not available for initial payment): Monthly Quarterly Semiannually Annually Card Number Expires Do not add security code. e. Other: 4. Life Insurance Beneficiary Term Insurance Option A: Beneficiary is: Insureds designated spouse, if living, otherwise the beneficiaries are the living lawful children of the insured and they will receive equal shares of the proceeds. Insureds Spouses Full Name Option B: Beneficiary is: Insureds designated spouse, if living, otherwise, the beneficiaries are the lawful children of the insured and they will receive equal shares of the proceeds; provided, however, that if a child of the insured has died before the insured, the share which the child would have received if he/she survived the insured will be paid to his/her living lawful children in equal shares. Insureds Spouses Full Name Option C: Other Designation: Name and relationship to the insured (and percentage each beneficiary will receive, if applicable) 139554 Page 4 of 20 G (02/22) 1
DOC0520139554 Complete for universal life and variable universal life insurance products. LIFE INSURANCE PLAN INFORMATION: Universal Life and Variable Universal Life 1. Life Insurance Plan Information Insured Amount $ Purpose of Insurance Foundations Protector (FP) Foundations Universal Life (FUL): Death Benefit Option: 1 (Level) 2 (Variable) 3 (Specified Amount + Premium) Life Insurance Qualification Test (The Life Insurance Qualification Test choice may not be changed): Guideline Premium Test (GPT) Cash Value Accumulation Test (CVAT) Indexed Universal Life (IUL): Death Benefit Option: Death Benefit Option: 1 (Level) 2 (Variable) 3 (Specified Amount + Premium) Life Insurance Qualification Test (The Life Insurance Qualification Test choice may not be changed): Guideline Premium Test (GPT) Cash Value Accumulation Test (CVAT) Complete the Indexed Universal Life Insurance Supplemental Application. Multi-Index UL (MIUL): Death Benefit Option: 1 (Level) 2 (Variable) 3 (Specified Amount + Premium) Life Insurance Qualification Test (The Life Insurance Qualification Test choice may not be changed): Guideline Premium Test (GPT) Cash Value Accumulation Test (CVAT) Complete the Indexed Universal Life Insurance Supplemental Application. Variable Universal Life (VUL): Death Benefit Option: 1 (Level) 2 (Variable) 3 (Specified Amount + Premium) Life Insurance Qualification Test (The Life Insurance Qualification Test choice may not be changed): Guideline Premium Test (GPT) Cash Value Accumulation Test (CVAT) Complete the Variable Product Information section AND the Premium and Monthly Deduction Allocation Form. Other 2. Riders/Options AdvanceSource RiderComplete AdvanceSource Rider application. Waiver of Monthly Deduction (Not available with FP) Waiver of Specified PremiumMonthly Specified Premium $ (Not available with FP) Accidental Death Benefit of $ (Not available with FP) Childrens Insurance Rider (CIR) Units (Not available with FP) Provide details in the CIR section. Automatic Increase Benefit Rider: (Not available with FP) 2% 3% 4% 5% 6% 7% 8% Accounting Value Increase Rider (AVIR)(Not available with FP) Other 3. Life Insurance Premiums Annual Scheduled Premium Lump-Sum Amount to Be Paid on Delivery of Policy $ $ a. Bank Authorization (BA): Monthly Quarterly New BA Authorization Add to Existing BA with Account Number b. Systematic Payout Option (SPO) c. Direct Bill: Quarterly Semiannually Annually d. Other Life Insurance Plan Information: Universal Life and Variable Universal Life Continued on next page... 139554 Page 5 of 20 G (02/22) 1
DOC0620139554 Life Insurance Plan Information: Universal Life and Variable Universal Life Continued 4. Life Insurance BeneficiaryUniversal Life and Variable Universal Life Option A: Beneficiary is: Insureds designated spouse, if living, otherwise the beneficiaries are the living lawful children of the insured and they will receive equal shares of the proceeds. Insureds Spouses Full Name Option B: Beneficiary is: Insureds designated spouse, if living, otherwise, the beneficiaries are the lawful children of the insured and they will receive equal shares of the proceeds; provided, however, that if a child of the insured has died before the insured, the share which the child would have received if he/she survived the insured will be paid to his/her living lawful children in equal shares. Insureds Spouses Full Name Option C: Other Designation: Name and relationship to the insured (and percentage each beneficiary will receive, if applicable) Complete for Succession Protector, Succession Select and Survivorship IUL products. LIFE INSURANCE PLAN INFORMATION: Succession Protector, Succession Select and Survivorship IUL 1. Life Insurance Plan Information Insured Amount $ Purpose of Insurance Succession Protector Survivorship IUL: Death Benefit Option: 1 (Level) 2 (Variable) 3 (Specified Amount + Premium) Life Insurance Qualification Test (The Life Insurance Qualification Test choice may not be changed): Guideline Premium Test (GPT) Cash Value Accumulation Test (CVAT) Complete the Indexed Universal Life Insurance Supplemental Application. Survivorship VUL: Death Benefit Option: 1 (Level) 2 (Variable) 3 (Specified Amount + Premium) Life Insurance Qualification Test (The Life Insurance Qualification Test choice may not be changed): Guideline Premium Test (GPT) Cash Value Accumulation Test (CVAT) Complete the Variable Life Insurance Product Information Section and the Premium and Monthly Deduction Allocation Form Other 2. Riders/Options Four Year Term of $ Policy Split Option Accounting Value Increase Rider (AVIR)(Survivorship IUL only) Other 3. Life Insurance Premiums Annual Scheduled Premium Lump-Sum Amount to Be Paid on Delivery of Policy $ $ a. Bank Authorization (BA): Monthly Quarterly New BA Authorization Add to Existing BA with Account Number b. Systematic Payout Option (SPO) c. Direct Bill: Quarterly Semiannually Annually d. Other 4. Survivorship Beneficiary Designation Name and relationship to the insured (and percentage each beneficiary will receive, if applicable) 139554 Page 6 of 20 G (02/22) 1
DOC0720139554 Complete for Variable Universal Life and Succession Select products. VARIABLE PRODUCT INFORMATION 1. Variable Universal Life and Succession Select InformationCheck each of the following below to indicate your acknowledgement: (Also, complete the Premium and Monthly Deduction Allocation Form.) Adequate Information. You have received the current prospectuses for the policy applied for and any funds involved. Purpose. You agree that this variable type of insurance is in accord with your insurance and financial objectives. Variable values. You understand that the amount of Death Benefit and Policy Value can both increase and decrease; however, the Death Benefit will never be less than any Guaranteed Minimum Death Benefit. Fees and Charges. The fees and charges have been explained to you and are also explained in detail in the policy. 2. Consent for Delivery of Initial Prospectuses on CD-ROM YesBy checking this box, I acknowledge that I have chosen to receive and have received the initial product and fund prospectuses on computer readable compact disk (CD). See details in Consent for Delivery of Initial Prospectus on CD-ROM section. Complete for disability income insurance products. DISABILITY INCOME PLAN INFORMATION 1. Disability Income Insurance Plan Information Base Monthly Benefit Insureds Occupation Class: Waiting Period: $ 1A 2A 3A 3M 30 days 60 days 90 days 4A 4M 5A 5M 180 days 365 days 6A Duration of Benefit: 1 year 3 years 5 years to age 65 to age 67 Disability Provision: Occupation Classes 1A, 2A, 3A & 3M Income Protection Plus with 2 Years Occupation Protection (IPP-2) Occupation Classes 4A, 4M, 5A, 5M & 6A Income Protection Plus with 5 Years Occupation Protection (IPP-5) Occupation Classes 4A, 4M, 5A, 5M & 6A Income Protection Plus (IPP) Occupation Classes 3A, 3M, 4A, 4M, 5A, 5M & 6A Income Protection with Residual Benefits (IPTr) Occupation Classes 1A, 2A, 3A, 3M, 4A, 4M, 5A, Income Protection (IPMod) 5M & 6A 2. Disability Income Insurance Riders/Options Social Benefits Substitute Rider $ per month with Waiting Period of days Supplemental Income Rider $ per month and benefit paid up through month with day waiting period Cost of Living Adjustment Maximum (classes 2A, 3A, 3M, 4A, 4M, 5A, 5M & 6A) Maximum: 3% 4% 5% 6% 7% 8% 9% 10% Future Purchase Option $ Pool Amount Other Disability Income Plan Information Continued on next page... 139554 Page 7 of 20 G (02/22) 1
DOC0820139554 Disability Income Plan Information Continued 3. Disability Income Insurance Premiums Annual Premium $ a. Bank Authorization (BA): Monthly Quarterly New BA Authorization Add to Existing BA with Account Number b. Special Payment Option: Systematic Payout Option (SPO) c. Direct Bill: Quarterly Semiannually Annually d. Card Billing: MasterCard American Express Visa Discover Frequency (not available for initial payment): Monthly Quarterly Semiannually Annually Card Number Expires Do not add security code. e. Other Complete for business overhead expense products. BUSINESS OVERHEAD EXPENSE PROTECTION PLAN INFORMATION 1. Business Overhead Expense Protection Insurance Plan (Cannot be applied for without personal disability income protection in force or applied for with RiverSource Life of NY or other company.) Complete Disability Underwriting Information section. Monthly Benefit $ Insureds Occupation Class: 3A 3M 4A 4M 5A 5M 6A Waiting Period: 30 days 60 days 90 days Benefit Pattern: Level Increasing 2. Business Overhead Expense Protection Insurance Premiums Annual Premium $ a. Bank Authorization (BA): Monthly Quarterly New BA Authorization Add to Existing BA with Account Number b. Special Payment Option Systematic Payout Option (SPO) c. Direct Bill: Quarterly Semiannually Annually d. Card Billing: MasterCard American Express Visa Discover Frequency (not available for initial payment): Monthly Quarterly Semiannually Annually Card Number Expires Do not add security code. e. Other 139554 Page 8 of 20 G (02/22) 1
DOC0920139554 Complete for disability income and business overhead expense products. DISABILITY UNDERWRITING INFORMATION 1. Are you currently actively employed? Yes No a. If yes, number of hours per week Number of weeks per year b. Self-employed? Yes No If yes: i. Date business began (MMYYYY) ii. Type of business or industry iii. Type of business entity: Sole Proprietorship S Corporation Partnership C Corporation Limited Liability Company Other 2. Occupational Duties a. Provide a complete description of your job duties. Include a percentage of time spent on each task. b. Do you manage or supervise others? Yes No If yes, what percent of duties are supervisory? % Number of employees c. Provide any professional designations or educational degrees you hold which are specific to your occupation. 3. Any contemplated change in occupation? Yes No If yes, explain: 4. Previous occupation if changed in the past five years 5. Amount of unearned income $ Source 6. Is the Insured eligible for or does the insured have any disability income insurance through his/her employer? a. Short-term: Yes No at $ per month for months and day waiting period b. Long-term: Yes No at $ per month for months and day waiting period c. If yes to b., is the group long-term disability integrated with Social Security? Yes No d. Is the Insured eligible for benefits under New York State Disability Benefits Law program or under another states required state Cash Sickness disability program? Yes No Disability Underwriting Information Continued on next page... 139554 Page 9 of 20 G (02/22) 1
DOC1020139554 Disability Underwriting Information Continued 7. Existing Disability Income Insurance (all applicants must complete) Insured: Do you have any other disability insurance currently in force or applied for? Yes No If yes, you must complete all details in the grid below even if the existing policy is not being replaced. Insurance Amount/ Being Company Policy Number Type Monthly Income Replaced Yes No Yes No Yes No Yes No Use the Notes section if you have additional insurance coverage information to document. You must check Yes to Being Replaced if: There is any possibility that the new RiverSource Life of NY disability policy will replace another policy, even if it is not yet certain. Premium payments will be discontinued on an existing policy or if the existing policy is surrendered, reduced, annuitized or otherwise terminated, in part or in full. A policy has been applied for with another company and that policy is not or will not be accepted. Complete for Succession Protector, Succession Select and Survivorship IUL life insurance products. SECOND INSURED 1. Second Insured: Second Insureds Name (First, Middle Initial and Last Name) Male Female Second Insureds Phone Number (Day) Second Insureds Phone Number (Evening) Citizenship: U.S Other: If Other, Second Insured is: Resident Alien Resident Alien with Green Card Nonresident Alien Relationship to Insured Birth Date (MMDDYYYY) State of Birth or Country of Birth U.S. Social Security Number Drivers License (DL) Number DL State of Issuance Occupation Employer Name Individual Income Net Worth Household Income $ $ $ Second Insured Continued on next page... 139554 Page 10 of 20 G (02/22) 1
DOC1120139554 Second Insured Continued 2. Coverage Questions: IT IS IMPORTANT THAT ANSWERS ARE TRUE, ACCURATE AND COMPLETE TO THE BEST OF YOUR KNOWLEDGE AND BELIEF. ANY MATERIAL MISREPRESENTATION COULD AFFECT YOUR INSURANCE COVERAGE. a. In the past 12 months, has the Second Insured been hospitalized, placed in hospice care, or been advised by a health care professional to be hospitalized or placed in hospice care on either an inpatient or outpatient basis for any reason other than normal pregnancy? Yes No b. In the past 12 months, has the Second Insured received treatment or advice from a health care professional for heart disease, chest pain, stroke, cancer (except basal cell carcinoma), kidney failure, liver failure or unexplained weight loss? Yes No c. Has the Second Insured ever used tobacco or nicotine in any form? Yes No Date of Last Use (MMYYYY) d. Personal Physician or Primary Care Provider ( Check here if none.) Doctor or Clinic Name Date Last Seen (MMYYYY) Street Address City State ZIP Code Phone Complete for Succession Protector, Succession Select and Survivorship IUL life insurance products. EXISTING LIFE INSURANCE OR ANNUITIES SECOND INSURED: Do you have any other annuities or life insurance currently in force or applied for? Yes No If marked Yes, you must complete all details in the grid below, even if the existing policy is not being replaced. If you answered Yes to any of the questions on the Definition of Replacement (Form 38031), you must check Yes to Being Replaced for any affected policies and you must complete the Disclosure Statement and the Important Notice Regarding Replacement or Change of Life Insurance Policies or Annuity Contracts (Form 38032). Company Policy Number Type Amount Being Replaced Yes No Yes No Yes No Yes No Use Notes section if you have additional insurance coverage information to document. Life External Replacements: If a 1035 Exchange to the RiverSource Life of NY policy will be requested, the 1035 Exchange Request (Form 38072) must also be completed. Life Internal Replacements: If Being Replaced is checked Yes and you are replacing a RiverSource Life of NY policy, by signing this application, the existing RiverSource Life of NY policy(s) listed above will be surrendered upon underwriting approval unless you inform us otherwise. The cash value should be: applied to the new RiverSource Life of NY policy, or returned to the owner. 139554 Page 11 of 20 G (02/22) 1
DOC1220139554 Complete Childrens Insurance Rider section if CIR is applied for. Complete the Notes section for additional information for all products. CHILDRENS Section J INSURANCE RIDER INFORMATION 1. Name(s) of child(ren) to be covered by rider (must be under age 19 and unmarried): Physical/Mental Birth Date Abnormalities Name (First, Full Middle, Last) (MMDDYYYY) Sex at Birth? Male Female Yes No Male Female Yes No Male Female Yes No Male Female Yes No 2. To the best of the applicants knowledge and belief, has anyone listed above received treatment for any disease, physical or mental condition in the past five years? Yes No 3. Do any of the children listed above have any other annuities or life insurance currently in force or applied for? Yes No If yes, provide the total amount in force within answer number 5. 4. Is this insurance intended to replace any existing insurance and/or annuity? Yes No 5. If Yes was checked for 1, 2, 3 or 4 above, explain here: 6. Are there any children under the age of 19 and unmarried not listed above? Yes No If Yes list name: Birth Date (MMDDYYYY) Reason for exclusion NOTES (Include details to any Yes answers or any additional replacement or other information.) 139554 Page 12 of 20 G (02/22) 1
DOC1320139554 Notes Continued (Include details to any Yes answers or any additional replacement or other information.) 139554 Page 13 of 20 G (02/22) 1
DOC1420139554 Notes Continued (Include details to any Yes answers or any additional replacement or other information.) 139554 Page 14 of 20 G (02/22) 1
DOC1520139554 Review Disclosures and Notices below. CREDIT OR CHARGE CARD BILLING AGREEMENT (Not available for initial premium payment. Available with term and disability income insurance products only.) By signing for card billing, you authorize RiverSource Life Insurance Co. of New York to bill your card account for the insurance premiums and frequency indicated in the Plan Information sections applied for and you understand that payments will be automatically billed to your card account. You understand that RiverSource Life Insurance Co. of New York may receive updated card account information from your card company. You understand you may discontinue this payment at any time. The arrangement will remain in effect until you notify RiverSource Life Insurance Co. of New York in writing to cancel it, allowing reasonable time to act on your cancellation. Any such notification shall be effective only with respect to entries initiated after receipt of and reasonable time to act upon such notification, usually 15 days. RiverSource Life Insurance Co. of New York reserves the right to terminate this agreement at any time upon 30 days written notification. CONSENT FOR DELIVERY OF INITIAL PROSPECTUSES ON CD-ROM I understand that I have the right to receive the prospectuses in paper format, which has been offered to me. I have access to and understand how to use the hardware and software that are necessary to view the prospectuses (see CD label for operating requirements). I understand that, in order to retain paper copies of the prospectuses, I must either: A. Print the prospectuses found on the CD, incurring any printing costs myself; or B. Request the prospectuses in paper form free of charge by calling Customer Service toll-free at 1(800) 333-3437. I understand that all future prospectus updates and supplements will be provided to me in paper form unless I sign up for online document delivery on the secure site at ameriprise.com Universal Life/Variable Universal Life Select products If you have applied for this type of insurance, you understand and acknowledge that (1) a projection of future death benefits and policy values will be provided upon written request; (2) surrender charges may apply in certain circumstances; (3) no-lapse guarantee or death benefit guarantee features as applicable to the type of insurance applied for have been adequately described to you and may involve premium in excess of your scheduled premium; and (4) interest at rates in excess of the guaranteed interest rate will accrue on any policy value/fixed account value at rates determined by the company and at the companys discretion. These rates will be based on various factors including, but not limited to, investment income, mortality, persistency and expenses. Universal Life and Variable Universal Life products If you have applied for these insurance products, they include an Accelerated Benefit Rider for Terminal Illness. There is no charge at issue or until the benefit is applied for. You understand that receipt of accelerated death benefits may affect eligibility for public assistance programs and may be taxable. The accelerated benefit creates a lien against the policys death benefit and interest will be added to the lien as it accrues. When benefits are accelerated, an administrative expense charge of $250 is due at the time the initial accelerated benefit is applied for. 139554 Page 15 of 20 G (02/22) 1
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RiverSource Life Insurance Co. of New York, 70500 Ameriprise Financial Center, Minneapolis, MN 55474 Life and Disability Income Insurance Application Agreement and Signature Agreement: By signing this application, you acknowledge that you understand and agree with all of the following terms, conditions and disclosures applicable to the product applied for. You also understand this document may contain disclosures pertaining to products not applied for. Identification and Verification: We are required by law to obtain certain personal information from you that will be used by us to verify your identity. If you do not provide us with the information, we may not be able to issue you a policy or rider. If we are unable to verify your identity, we reserve the right to withdraw your application, rescind your policy and/or rider or take such other steps as we deem reasonable. Conditional Insurance Coverage Prior to Policy Delivery: You agree that an Insured for life or disability insurance will be covered prior to policy delivery only when all of the following requirements have been met: 1. The owner has paid the full first premium, according to the frequency of modal premium payment selected, for all insurance applied for in this application (any check or draft for that payment must be honored by the bank); and 2. The premium has not been returned by the company; and 3. The Insured has submitted all medical and other information required by the companys published underwriting requirements including without limitation, all medical examinations and paramedical examinations (not more than two), medical history interview, blood draw and other information required by the companys published underwriting requirements for the Insureds age and amount applied for; and 4. The Insured is insurable on the Effective Date, as defined below, under the companys published underwriting rules, for the plan of insurance and amount of insurance at the premium rate applied for with no modification. Effective Date: Effective Date as used herein means the later of: (a) the date of this application; or (b) the date of completion of all initial underwriting requirements as specified under the Conditional Insurance Coverage Prior to Policy Delivery paragraph. In cases where the Insured is not insurable for the plan of insurance, amount of insurance, or at the premium rate applied for, coverage begins if and when the company insures the person under a policy accepted by the owner in writing and any additional premium has been paid. For disability coverage, all disability policies specified to be discontinued in this application must also be discontinued before coverage will begin; (this limitation is subject to the incontestability provision in the policy.) Succession Protector/Succession Select products: If the owner has applied for Succession Protector or Succession Select plans of insurance, the requirements in the Conditional Insurance Coverage Prior to Policy Delivery paragraph apply to both Insureds. If one Insured dies before the Effective Date and such individual is otherwise found to be insurable after completion of all initial underwriting requirements as specified under the Conditional Insurance Coverage Prior to Policy Delivery paragraph, and the surviving Insured is also found to be insurable, the owner shall be offered the policy applied for in the application. In cases where both Insureds are not insurable for the plan of insurance, amount of insurance, or at the premium rate applied for, coverage begins if and when the company insures the persons under a policy accepted by the owner in writing and any additional premium has been paid. Amount of Life Insurance Coverage: If coverage begins prior to delivery of the policy under the conditions described above and death of an Insured occurs prior to delivery of the policy, the amount of life insurance coverage on each Insured will be the total requested for that person by this application and any other applications for life insurance on the Insured being considered by the company, up to a maximum of $500,000. Except as limited by this agreement, any coverage provided will be under the terms of the policy or rider applied for. Amount of Disability Insurance Coverage: If conditional coverage begins prior to delivery of the policy under the conditions described above and a disability of the Insured begins prior to delivery of the policy, the disability coverage monthly benefit on the Insured will be the lesser of (1) $3,500 of monthly benefit, (2) the monthly benefit applied for in this application, or (3) the maximum monthly benefit based on the companys published underwriting rules. Coverage on the Insured for this monthly benefit will be provided under the terms of the policy or rider until the first of the following occurs: (1) benefits paid and payable total $500,000 or (2) the Insured is no longer eligible for benefits under the terms of the policy or rider because the Insured is no longer disabled or the maximum benefit period has been reached. When the first of (1) or (2) occur, all benefits will cease and coverage under this agreement and the policy will cease. If coverage becomes effective with delivery of the policy, all benefits and coverage will apply. Term Life Insurance products: You understand that the premium may change. The premium that is charged is not guaranteed and we may charge the full maximum guaranteed premium as shown in the policy. Agreement and Signature Continued on next page... Client Copy Do Not Submit to Corporate Office 139554 G (02/22) 1
Agreement and Signature Continued Companys Responsibilities: You understand that: Only the officers of the company have the authority to decide on insurability and risk classification and to bind the company to insure a proposed Insured. The officers of the company are the President, Vice President, Secretary and Assistant Secretary; If a policy does not go into effect, the companys sole liability will be to refund any premium paid, plus interest if required by law; No change in or waiver of anything in this application or alteration of an insurance policy or rider is binding unless it is in writing and signed by an officer of the company. Qualified Plans Only: You certify that the Owner is qualified under Section 401(a) of the United States Internal Revenue Code. This policy or rider will be issued based on representations by you that the Plan is qualified. Adequate Information: You have received the RiverSource Life Insurance Co. of New York (RiverSource Life of NY) Insurance Products Disclosure. You understand and agree that the company will use and release information about you as described in the RiverSource Life of NY Insurance Products Disclosure. You may inform us not to use information for certain marketing purposes described in the RiverSource Life of NY Insurance Products Disclosure. Electronic Signature: The application and other documents may be signed using an electronic signature. To sign the application today, you may use an electronic signature pad to provide your electronic signature. Once each sub-section is signed, it is bound into a single record. Using the electronic signature pad, signatures will be displayed in real time, encrypted and purged to prevent use of the signatures for any other purpose than those specific to the issuance of the policy. To sign the application from home, you may log onto the secure site on ameriprise.com. Once you click to sign within the secure site on ameriprise.com, it will be bound into a single record. Using the ameriprise.com single electronic signature, the signature will be displayed in real time, encrypted, stored in compliance with the privacy laws and protected from any other uses than those specific to the issuance of the policy. By utilizing the electronic signature pad or the electronic signature process within the secure site on ameriprise.com, you confirm that you have reviewed, understand and accept the entire Document Packet, and you confirm that you wish to utilize your electronic signature to sign all the documents presented. The medical portion of your application will be completed via telephone interview. At the end of the interview you will have the opportunity to provide your verbal consent to sign the medical portion of your application using an electronic voice signature. Upon providing your electronic voice signature, the information gathered during the telephone interview will become part of your insurance application and will be subject to the terms of the Declaration section below. You may stop the application process at any time during the telephone interview. If you choose not to utilize an electronic signature to sign the application, including the medical portion, we will contact you to obtain a written signature. You may obtain a non-electronic version of any applicable electronic documents by sending a signed written request containing your full name and date of birth to: RiverSource Life Insurance Co. of New York, 70500 Ameriprise Financial Center, Attention Insurance Underwriting, Minneapolis, MN 55474. Declaration: You declare that all answers provided are true, accurate and complete to the best of your knowledge and belief; and you understand that all your answers will be a basis for our underwriting analysis for any policy and/or rider issued and that any material misrepresentation could result in the denial of any claims made and/or the rescission of any policy and/or rider issued. You also acknowledge that you have received a copy of this agreement and receipt for any premium paid with this application. You acknowledge that this application will be attached to and made part of the policy. Agreement and Signature Continued on next page... Client Copy Do Not Submit to Corporate Office 139554 G (02/22) 1
Agreement and Signature Continued Authorization and Certification By your signature below, the owner authorizes MIB, Inc., the employer, and consumer reporting agency having information about you and your minor children to give that information to RiverSource Life of NY or its reinsurer. By your signature below, you also authorize RiverSource Life of NY or its reinsurers to make a brief report of your personal health information to MIB, Inc. You understand that you have the right to request a personal interview if an investigative consumer report is obtained. You understand that RiverSource Life of NY will use this information to determine eligibility for insurance and benefits. You agree that a photographic copy of this authorization will be as valid as the original. You agree that this authorization will be valid for 24 months from the date shown below. W-9 Social Security or Taxpayer Identification Number (TIN) Certification: Foreign Account Tax Compliance Act (FATCA) Reporting Information A FATCA exemption code is required for persons submitting this form for accounts maintained outside of the United States by certain foreign financial institutions. If you are only submitting this form for an account you hold in the United States, no code is required. Otherwise, submit IRS Form W-9 separately. As used below, the word I refers to the applicant who is the taxpayer on the policy. Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number, and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and 3. I am a U.S. citizen or other U.S. person (defined below), and 4. The payee is exempt from Foreign Account Tax Compliance Act (FATCA). As used below, the word You refers to the applicant who is the taxpayer on the account. Certification Instructions: check this box if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. Definition of a U.S. Person. For federal tax purposes, you are considered a U.S. Person if you are: An individual who is a U.S. citizen or U.S. resident alien, A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, An estate (other than a foreign estate), or A domestic trust (as defined in Regulations section 301.7701-7). Non-U.S. persons submit the appropriate Form W-8. Form W-9 and Form W-8 and their instructions are available upon request or on irs.gov. The Internal Revenue Service does not require your consent to any provision of this document other than the certifications required to avoid backup withholding. You acknowledge that you or your authorized representative have received a copy of this agreement and signature section of the application. Any person who knowingly and with intent to defraud any insurance company or other person files an application for accident and health insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime, and shall also be subject to a civil penalty not to exceed five thousand dollars and the stated value of the claim for each such violation. Signatures (Insureds under age 15 need not sign.) Insureds Name (Print) State Signed on Date (MMDDYYYY) Insureds Signature (base plan) Second Insureds Signature X X Parent/Legal Guardians Signature Owners Signature (other than Insured) (for Insureds under age 15) X X Receipt All checks must be completed in full and be made payable to the company (not to the advisor). Received from the sum of $ with this application. Agreement and Signature Continued on next page... Client Copy Do Not Submit to Corporate Office 139554 G (02/22) 1
Agreement and Signature Continued Advisors Report Compensation options for Foundations UL, Indexed UL and VUL products only: If no option is chosen, default is option A. Once chosen and submitted, the compensation choice cannot be changed. Not all options may be available for all products or riders. A (Upfront) B (Balanced) C (Level) D (AVIR) Is Insured related to Advisor? Yes No If yes, give relationship. You certify that you personally requested the information in this application and that you truly and accurately recorded on the application the information supplied by the applicant. You are not aware of anything detrimental to the risk that is not recorded in this application. You certify that, to the best of your knowledge and belief, the information provided in this application regarding replacement of existing insurance and annuities is true and accurate. Advisors Name Advisor Number Advisors Signature Date (MMDDYYYY) X Text Team ID Comp % Phone Ext Area Office Number AFIG Only: Financial Institution Name Branch ID Recommending Advisor Information Is this transaction based on a recommendation by an Ameriprise Financial Advisor? Yes No If yes, provide the Recommending Advisor Name and ID below if different than Advisor listed above. Name Advisors Number It is assumed the Recommending Advisor and Advisor listed above are the same, if the Recommending Advisor is not identified. Co-Advisor Information Name Advisor Number Advisor Signature Date (MMDDYYYY) X Text Team ID Comp % Phone Ext Area Office Number Client Copy Do Not Submit to Corporate Office 139554 G (02/22) 1
DOC1720139554 RiverSource Life Insurance Co. of New York, 70500 Ameriprise Financial Center, Minneapolis, MN 55474 Life and Disability Income Insurance Application Agreement and Signature Agreement: By signing this application, you acknowledge that you understand and agree with all of the following terms, conditions and disclosures applicable to the product applied for. You also understand this document may contain disclosures pertaining to products not applied for. Identification and Verification: We are required by law to obtain certain personal information from you that will be used by us to verify your identity. If you do not provide us with the information, we may not be able to issue you a policy or rider. If we are unable to verify your identity, we reserve the right to withdraw your application, rescind your policy and/or rider or take such other steps as we deem reasonable. Conditional Insurance Coverage Prior to Policy Delivery: You agree that an Insured for life or disability insurance will be covered prior to policy delivery only when all of the following requirements have been met: 1. The owner has paid the full first premium, according to the frequency of modal premium payment selected, for all insurance applied for in this application (any check or draft for that payment must be honored by the bank); and 2. The premium has not been returned by the company; and 3. The Insured has submitted all medical and other information required by the companys published underwriting requirements including without limitation, all medical examinations and paramedical examinations (not more than two), medical history interview, blood draw and other information required by the companys published underwriting requirements for the Insureds age and amount applied for; and 4. The Insured is insurable on the Effective Date, as defined below, under the companys published underwriting rules, for the plan of insurance and amount of insurance at the premium rate applied for with no modification. Effective Date: Effective Date as used herein means the later of: (a) the date of this application; or (b) the date of completion of all initial underwriting requirements as specified under the Conditional Insurance Coverage Prior to Policy Delivery paragraph. In cases where the Insured is not insurable for the plan of insurance, amount of insurance, or at the premium rate applied for, coverage begins if and when the company insures the person under a policy accepted by the owner in writing and any additional premium has been paid. For disability coverage, all disability policies specified to be discontinued in this application must also be discontinued before coverage will begin; (this limitation is subject to the incontestability provision in the policy.) Succession Protector/Succession Select products: If the owner has applied for Succession Protector or Succession Select plans of insurance, the requirements in the Conditional Insurance Coverage Prior to Policy Delivery paragraph apply to both Insureds. If one Insured dies before the Effective Date and such individual is otherwise found to be insurable after completion of all initial underwriting requirements as specified under the Conditional Insurance Coverage Prior to Policy Delivery paragraph, and the surviving Insured is also found to be insurable, the owner shall be offered the policy applied for in the application. In cases where both Insureds are not insurable for the plan of insurance, amount of insurance, or at the premium rate applied for, coverage begins if and when the company insures the persons under a policy accepted by the owner in writing and any additional premium has been paid. Amount of Life Insurance Coverage: If coverage begins prior to delivery of the policy under the conditions described above and death of an Insured occurs prior to delivery of the policy, the amount of life insurance coverage on each Insured will be the total requested for that person by this application and any other applications for life insurance on the Insured being considered by the company, up to a maximum of $500,000. Except as limited by this agreement, any coverage provided will be under the terms of the policy or rider applied for. Amount of Disability Insurance Coverage: If conditional coverage begins prior to delivery of the policy under the conditions described above and a disability of the Insured begins prior to delivery of the policy, the disability coverage monthly benefit on the Insured will be the lesser of (1) $3,500 of monthly benefit, (2) the monthly benefit applied for in this application, or (3) the maximum monthly benefit based on the companys published underwriting rules. Coverage on the Insured for this monthly benefit will be provided under the terms of the policy or rider until the first of the following occurs: (1) benefits paid and payable total $500,000 or (2) the Insured is no longer eligible for benefits under the terms of the policy or rider because the Insured is no longer disabled or the maximum benefit period has been reached. When the first of (1) or (2) occur, all benefits will cease and coverage under this agreement and the policy will cease. If coverage becomes effective with delivery of the policy, all benefits and coverage will apply. Term Life Insurance products: You understand that the premium may change. The premium that is charged is not guaranteed and we may charge the full maximum guaranteed premium as shown in the policy. Agreement and Signature Continued on next page... Corporate Office Copy Submit to Corporate Office 139554 Page 17 of 20 G (02/22) 1
DOC1820139554 Agreement and Signature Continued Companys Responsibilities: You understand that: Only the officers of the company have the authority to decide on insurability and risk classification and to bind the company to insure a proposed Insured. The officers of the company are the President, Vice President, Secretary and Assistant Secretary; If a policy does not go into effect, the companys sole liability will be to refund any premium paid, plus interest if required by law; No change in or waiver of anything in this application or alteration of an insurance policy or rider is binding unless it is in writing and signed by an officer of the company. Qualified Plans Only: You certify that the Owner is qualified under Section 401(a) of the United States Internal Revenue Code. This policy or rider will be issued based on representations by you that the Plan is qualified. Adequate Information: You have received the RiverSource Life Insurance Co. of New York (RiverSource Life of NY) Insurance Products Disclosure. You understand and agree that the company will use and release information about you as described in the RiverSource Life of NY Insurance Products Disclosure. You may inform us not to use information for certain marketing purposes described in the RiverSource Life of NY Insurance Products Disclosure. Electronic Signature: The application and other documents may be signed using an electronic signature. To sign the application today, you may use an electronic signature pad to provide your electronic signature. Once each sub-section is signed, it is bound into a single record. Using the electronic signature pad, signatures will be displayed in real time, encrypted and purged to prevent use of the signatures for any other purpose than those specific to the issuance of the policy. To sign the application from home, you may log onto the secure site on ameriprise.com. Once you click to sign within the secure site on ameriprise.com, it will be bound into a single record. Using the ameriprise.com single electronic signature, the signature will be displayed in real time, encrypted, stored in compliance with the privacy laws and protected from any other uses than those specific to the issuance of the policy. By utilizing the electronic signature pad or the electronic signature process within the secure site on ameriprise.com, you confirm that you have reviewed, understand and accept the entire Document Packet, and you confirm that you wish to utilize your electronic signature to sign all the documents presented. The medical portion of your application will be completed via telephone interview. At the end of the interview you will have the opportunity to provide your verbal consent to sign the medical portion of your application using an electronic voice signature. Upon providing your electronic voice signature, the information gathered during the telephone interview will become part of your insurance application and will be subject to the terms of the Declaration section below. You may stop the application process at any time during the telephone interview. If you choose not to utilize an electronic signature to sign the application, including the medical portion, we will contact you to obtain a written signature. You may obtain a non-electronic version of any applicable electronic documents by sending a signed written request containing your full name and date of birth to: RiverSource Life Insurance Co. of New York, 70500 Ameriprise Financial Center, Attention Insurance Underwriting, Minneapolis, MN 55474. Declaration: You declare that all answers provided are true, accurate and complete to the best of your knowledge and belief; and you understand that all your answers will be a basis for our underwriting analysis for any policy and/or rider issued and that any material misrepresentation could result in the denial of any claims made and/or the rescission of any policy and/or rider issued. You also acknowledge that you have received a copy of this agreement and receipt for any premium paid with this application. You acknowledge that this application will be attached to and made part of the policy. Agreement and Signature Continued on next page... Corporate Office Copy Submit to Corporate Office 139554 Page 18 of 20 G (02/22) 1
DOC1920139554 Agreement and Signature Continued Authorization and Certification By your signature below, the owner authorizes MIB, Inc., the employer, and consumer reporting agency having information about you and your minor children to give that information to RiverSource Life of NY or its reinsurer. By your signature below, you also authorize RiverSource Life of NY or its reinsurers to make a brief report of your personal health information to MIB, Inc. You understand that you have the right to request a personal interview if an investigative consumer report is obtained. You understand that RiverSource Life of NY will use this information to determine eligibility for insurance and benefits. You agree that a photographic copy of this authorization will be as valid as the original. You agree that this authorization will be valid for 24 months from the date shown below. W-9 Social Security or Taxpayer Identification Number (TIN) Certification: Foreign Account Tax Compliance Act (FATCA) Reporting Information A FATCA exemption code is required for persons submitting this form for accounts maintained outside of the United States by certain foreign financial institutions. If you are only submitting this form for an account you hold in the United States, no code is required. Otherwise, submit IRS Form W-9 separately. As used below, the word I refers to the applicant who is the taxpayer on the policy. Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number, and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and 3. I am a U.S. citizen or other U.S. person (defined below), and 4. The payee is exempt from Foreign Account Tax Compliance Act (FATCA). As used below, the word You refers to the applicant who is the taxpayer on the account. Certification Instructions: check this box if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. Definition of a U.S. Person. For federal tax purposes, you are considered a U.S. Person if you are: An individual who is a U.S. citizen or U.S. resident alien, A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, An estate (other than a foreign estate), or A domestic trust (as defined in Regulations section 301.7701-7). Non-U.S. persons submit the appropriate Form W-8. Form W-9 and Form W-8 and their instructions are available upon request or on irs.gov. The Internal Revenue Service does not require your consent to any provision of this document other than the certifications required to avoid backup withholding. You acknowledge that you or your authorized representative have received a copy of this agreement and signature section of the application. Any person who knowingly and with intent to defraud any insurance company or other person files an application for accident and health insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime, and shall also be subject to a civil penalty not to exceed five thousand dollars and the stated value of the claim for each such violation. Signatures (Insureds under age 15 need not sign.) Insureds Name (Print) State Signed on Date (MMDDYYYY) Insureds Signature (base plan) Second Insureds Signature X X Parent/Legal Guardians Signature Owners Signature (other than Insured) (for Insureds under age 15) X X Receipt All checks must be completed in full and be made payable to the company (not to the advisor). Received from the sum of $ with this application. Agreement and Signature Continued on next page... Corporate Office Copy Submit to Corporate Office 139554 Page 19 of 20 G (02/22) 1
DOC2020139554 Agreement and Signature Continued Advisors Report Compensation options for Foundations UL, Indexed UL and VUL products only: If no option is chosen, default is option A. Once chosen and submitted, the compensation choice cannot be changed. Not all options may be available for all products or riders. A (Upfront) B (Balanced) C (Level) D (AVIR) Is Insured related to Advisor? Yes No If yes, give relationship. You certify that you personally requested the information in this application and that you truly and accurately recorded on the application the information supplied by the applicant. You are not aware of anything detrimental to the risk that is not recorded in this application. You certify that, to the best of your knowledge and belief, the information provided in this application regarding replacement of existing insurance and annuities is true and accurate. Advisors Name Advisor Number Advisors Signature Date (MMDDYYYY) X Text Team ID Comp % Phone Ext Area Office Number AFIG Only: Financial Institution Name Branch ID Recommending Advisor Information Is this transaction based on a recommendation by an Ameriprise Financial Advisor? Yes No If yes, provide the Recommending Advisor Name and ID below if different than Advisor listed above. Name Advisors Number It is assumed the Recommending Advisor and Advisor listed above are the same, if the Recommending Advisor is not identified. Co-Advisor Information Name Advisor Number Advisor Signature Date (MMDDYYYY) X Text Team ID Comp % Phone Ext Area Office Number Corporate Office Copy Submit to Corporate Office 139554 Page 20 of 20 G (02/22) 1
20 Madison Avenue Extension
Albany, NY 12203
Re: | RiverSource
of New York Account 8, Form N-6 Flexible Premium Survivorship Variable Adjustable Life With Index-Linked Interest Options(s) Insurance Policy RiverSource Survivorship Variable Universal Life Insurance File No. 811-05213 |
/s/ Dixie Carroll | |
Dixie
Carroll Assistant General Counsel and Assistant Secretary |
Issued by: | RiverSource Life Insurance Co. of New York (RiverSource Life of NY) |
20
Madison Avenue Extension Albany, NY 12203 Telephone: 1-800-541-2251 Website address: riversource.com/lifeinsurance RiverSource of New York Account 8 |
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FEES AND EXPENSES | Location in Statutory Prospectus | |||
Charges for Early Withdrawals | If you surrender your policy for its full Cash Surrender Value, or the policy Lapses, during the first ten years and for ten years after requesting an increase in the Specified Amount, you will incur a Surrender Charge. The Surrender Charges are set based on various factors such as the Insureds’ Insurance Ages (or Attained Insurance Ages at the time of a requested increase in the Specified Amount), Risk Classifications, genders and the number of years the policy has been in force (or for the number of years from the effective date of an increase in Specified Amount). The Surrender Charges are shown under the Policy Data page of your policy. | Fee Tables | ||
Transaction Charges | In addition to Surrender Charges, you may also incur charges on other transactions, such as a premium expense charge, partial Surrender Charge, express mail fee, electronic fund transfer fee, and fees imposed when exercising your rights under certain riders and benefits under the policy. If you take a loan against the policy, you will be charged a loan interest rate on any outstanding balance until the loan is paid off. | Fee Tables | ||
Ongoing Fees and Expenses (annual charges) | In
addition to Surrender Charges and transaction charges, an investment in the policy is subject to certain ongoing fees and expenses, including fees and expenses covering the cost of insurance under the policy and the cost of certain optional
benefits available under the policy. Such fees and expenses are set based on various factors such as the Insureds’ Risk Classifications, Issue Ages, genders and the number of years the policy is in force. You should review the rates, fees and
charges under the Policy Data page of your policy. You will also bear expenses associated with the Funds offered under the policy, as shown in the following table: |
Fee Tables | ||
Annual Fee | Minimum | Maximum | ||
Underlying
Fund options (Funds fees and expenses)(1) |
0.26% | 4.14% | ||
(1) As a percentage of fund assets. | ||||
RISKS | ||||
Risk of Loss | You can lose money by investing in this policy including loss of principal. | Principal Risks | ||
Not a Short-Term Investment | The
policy is a long-term investment that is primarily intended to provide a death benefit that we pay to the Beneficiary upon the last surviving Insured’s death. The policy is not suitable as a short-term investment and may not be appropriate for an investor who needs ready access to cash. Your policy has little or no Cash Surrender Value in the early policy years. During early policy years the Cash Surrender Value may be less than the premiums you pay for the policy. Your ability to take partial surrenders is limited. You cannot take partial surrenders during the first policy year. |
Principal Risks |
RISKS | Location
in Statutory Prospectus | |||
Risks Associated with Investment Options | •
You can lose cash value due to adverse investment experience. There is no minimum guaranteed cash value under the Subaccounts of the Variable Account. • If the death benefit is option 2, the death benefit could decrease from the death benefit on the previous Valuation Date due to adverse investment experience. • Your policy could Lapse due to adverse investment experience if the No-Lapse Guarantee is not in effect and you do not pay the premiums needed to maintain coverage. • Each investment option (including the Fixed Account and the Indexed Accounts) has its own unique risks. • You should review the investment options before making an investment decision. |
Principal
Risks The Variable Account and the Funds | ||
Insurance Company Risks | An
investment in the policy is subject to the risks related to us. Any obligations (including under the Fixed Account and the Indexed Accounts) or guarantees and benefits of the policy that exceed the assets of the Variable Account are subject to our
claims-paying ability. If we experience financial distress, we may not be able to meet our obligations to you. More information about RiverSource Life of NY, including our financial strength ratings, is available by contacting us at
1-800-541-2251. Additional information regarding the financial strength of RiverSource Life of NY can be accessed at: strengthandsoundness.com. |
Principal
Risks The General Account | ||
Policy Lapse | Insufficient premium payments, fees and expenses, poor investment performance, full and partial surrenders, and unpaid loans or loan interest may cause the policy to Lapse. There is a cost associated with reinstating a Lapsed policy. Death benefits will not be paid if the policy has Lapsed. | Keeping the Policy in Force | ||
RESTRICTIONS | ||||
Investment Options | •
We reserve any right to limit transfers of value from a Subaccount to one or more Subaccounts or to the Fixed Account to five per policy year, and we may suspend or modify this transfer privilege at any time with any necessary approval of the
Securities and Exchange Commission. • Your transfers among the Subaccounts are subject to policies designed to deter market timing. • The minimum transfer amount from an investment option is $50, if automated, and $250 by mail or telephone. • On the youngest Insured’s Attained Insurance Age 120 anniversary, any Policy Value in the Subaccounts will be transferred to the Fixed Account and may not be transferred to any Indexed Account. • You may only transfer between Subaccounts and the Fixed Account on a Policy Anniversary, unless you automate such transfers. • Restrictions into and out of the Indexed Accounts apply. • We reserve the right to close, merge or substitute Funds as investment options. We also reserve the right, upon notification to you, to close or restrict any Funds. We will obtain any necessary approval of the Securities and Exchange Commission. • We generally limit premium payments in excess of $1,000,000. |
Transfers
Among the Fixed Account, Indexed Accounts and Subaccounts Substitution of Investments Optional Benefits — Investment Allocation Restrictions for Certain Benefit Riders | ||
Optional Benefits | •
Certain restrictions and limitations apply under the policy’s optional benefits. • Certain optional benefits are only available at policy issuance. |
Additional Information About Standard Benefits (Other than Standard Benefits) |
TAXES | Location
in Statutory Prospectus | |||
Tax Implications | •
You should consult with a tax professional to determine the tax implications of an investment in and payments received under the policy. • If your policy is a modified endowment contract, you may have to pay a tax penalty if you take a withdrawal before age 59½. |
Taxes | ||
CONFLICTS OF INTEREST | ||||
Investment Professional Compensation | In
general, we pay selling firms and their sales representatives compensation for selling the policy. In addition to commissions, we may, in order to promote sales of the policies, pay or provide selling firms with other promotional incentives in cash, credit or other compensation. These promotional incentives or reimbursements may be calculated as a percentage of the selling firm’s aggregate, net or anticipated sales and/or total assets attributable to sales of the policy, and/or may be a fixed dollar amount. Selling firms and their sales representatives may have a financial incentive to recommend the policy over another investment. |
Distribution of the Policy | ||
Exchanges | If you already own an insurance policy, some financial representatives may have a financial incentive to offer you a new policy in place of one you already own. You should only exchange an existing policy if you determine, after comparing the features, fees and risks of both policies, that it is better for you to purchase the new policy rather than continue to own your existing policy. | For additional information, see 1035 exchanges under Other Tax Considerations |
Name | Purpose | Is
the Benefit Standard or Optional |
Brief Description of Restrictions / Limitations |
Four-Year Term Insurance Rider (FYT) | FYT provides a Specified Amount of insurance. The FYT death benefit is paid if both Insureds die during the first four policy years. | Optional | •
FYT is only available at issue. • FYT automatically terminates on the four-year Policy Anniversary of the policy. • FYT is not available if either Insured is uninsurable. |
Policy Split Option Rider (PSO) | PSO permits a policy to be split into two individual permanent plans of life insurance then offered by us for exchange, one on the life of each Insured. | Optional | •
PSO is only available at issue. • PSO is not available for Insureds in certain Risk Classifications. • Both Insureds must be between Insurance Ages 20 - 75. • If the policy and this rider are still in force at the oldest Insureds’ 80th insurance anniversary, this rider will automatically terminate. |
Overloan Protection Benefit (OPB) | Protects the policy from Lapsing as a result of the loan balance exceeding the Policy Value when certain conditions are met. | Standard | •
OPB can only be exercised if the death benefit option 1 is in effect. • The policy must be in force for at least 15 years before the OPB can be exercised. • The policy may not be in the grace period to exercise the OPB. |
Accounting Value Increase Rider (AVIR) | If the policy is fully surrendered while the policy is in force and prior to the expiration date of the rider, we will waive a portion of the Surrender Charge. | Optional | •
This rider is available at time of application only with small business owners. • The waiver does not apply to any Surrender Charge due to increases in Specified Amount, or to partial surrenders. • Surrender Charges will not be waived if the policy is being surrendered in exchange for a new insurance policy or contract. |
Paid Up Insurance Option | You may request that we use the Cash Surrender Value of the policy to purchase an amount of paid-up insurance prior to the youngest Insured’s Attained Insurance Age 120. | Optional | •
When the Paid-Up Insurance option is elected, you will forfeit all rights to make future premium payments and all riders will terminate. • The paid-up insurance policy’s death benefit amount, minus its Cash Surrender Value, cannot be greater than your current policy’s death benefit, minus its Policy Value (both as of the date of the paid-up insurance policy’s purchase). |
1. | The month and date on or next following receipt of your written request for coverage to end; or |
2. | The four-year Policy Anniversary, as shown under Policy Data; or |
3. | The date the policy terminates. |
1. | divorce of the Insureds; or |
2. | the federal tax law is changed resulting in removal of the unlimited marital deduction or reduces by at least 50% the level of the estate taxes payable on death; or |
3. | there is a dissolution of a business partnership between the Insureds; or |
4. | there is a dissolution of a business conducted or owned by the Insureds. |
• | The amount waived is a percentage of the Surrender Charge that would apply to the initial Specified Amount. |
• | The waiver does not apply to any Surrender Charge due to increases in Specified Amount, or to partial surrenders. |
• | Surrender Charges will not be waived if the policy is being surrendered in exchange for a new insurance policy or contract. |
• | The policy has been in force for at least 15 years; and |
• | The youngest Insured’s Attained Insurance Age is at least 75 but not greater than 95; and |
• | Policy Indebtedness must be greater than the Specified Amount and greater than or equal to the Indebtedness percentage shown under Policy Data; and |
• | The Cash Surrender Value is sufficient to pay the exercise charge; and |
• | The death benefit option in effect is option 1; and |
• | The policy has not yet entered the grace period; and |
• | The policy is not a modified endowment contract, as defined by Section 7702A of the Internal Revenue Code, and exercising the benefit does not cause the policy to become a modified endowment contract; and |
• | No current or future distributions will be required from the policy to maintain its qualification for treatment as a life insurance policy under the Internal Revenue Code; and |
• | The sum of partial surrenders taken to date are greater than or equal to the amount that can be withdrawn from the policy without creating adverse tax consequences. |
1. | Premium payments are no longer accepted; however, loan repayments will be accepted. |
2. | Monthly deductions will no longer be taken. |
3. | Partial surrenders will no longer be available. |
4. | Additional loans will no longer be available. |
5. | Any outstanding loan will remain and interest will be charged at the current loan interest rate as shown under Policy Data. |
6. | The NLG will no longer be in effect and cannot be reinstated. |
7. | The death benefit option cannot be changed. |
8. | Changes to the Specified Amount will no longer be allowed. |
9. | Any riders attached to the policy will terminate. |
• | make any changes necessary to maintain the status of the policy as life insurance under the Code; |
• | make other changes required under federal or state law relating to life insurance; |
• | suspend or discontinue sale of the policies; and |
• | comply with applicable law. |
CHARGE | WHEN CHARGE IS DEDUCTED | AMOUNT DEDUCTED | |||
Maximum Sales Charge Imposed on Premiums (Load)(a) | When you pay premium. | 6% of each premium payment. | |||
Premium Taxes | When you pay premium as part of the premium expense charge. | A portion of the premium expense charge is used to pay state premium taxes imposed on us by state and governmental subdivisions. See discussion under “Premium Expense Charge.” | |||
Maximum Deferred Sales Charge (Load)(b) | When you surrender your policy for its full Cash Surrender Value, or the policy Lapses, during the first ten years and for ten years after requesting an increase in the Specified Amount. | Rate per $1,000 of initial Specified Amount: | |||
Minimum: $7.3347 — Female, Standard NonTobacco, Insurance Age 20; Male, Standard NonTobacco, Insurance Age 85. | |||||
Maximum: $36.8476– Female, Standard Tobacco, Insurance Age 68; Male, Standard Tobacco, Insurance Age 68. | |||||
Representative Insured: $18.4595– Female, Super Preferred, Nontobacco, Age 55; Male, Standard Nontobacco, Insurance Age 55. | |||||
Other Surrender Fees(c) | When you surrender part of the value of your policy. | The lesser of: | |||
• $25; or | |||||
• 2% of the amount surrendered. | |||||
Transfer Fees | N/A | N/A | |||
Fees for Express Mail and Electronic Fund Transfers of Loan or Surrender Proceeds | When you take a loan or surrender and Proceeds are sent by express mail or electronic fund transfer. | • $30 — United States. | |||
• $35 — International. | |||||
Interest Rate on Loans | Charged daily and due at the end of the policy year. | • 3% for policy years 1-10; | |||
• 1.00% for policy years 11+ | |||||
Overloan Protection Benefit (OPB) | Upon exercise of the benefit. | 3% of the Policy Value | |||
Policy Split Option Rider (PSO) | Upon exercise of the benefit. | $250 | |||
(a) | We call this the premium expense charge in other places in this prospectus. |
(b) | We call this a Surrender Charge in other places in this prospectus, and it is level for the first five policy years and then it decreases monthly until it reaches $0 at the end of year 10. This charge varies based on individual characteristics. The charges shown in the table may not be representative of the charge you will pay. For information about the charge you would pay, contact your sales representative or RiverSource Life of NY at the address or telephone number shown on the first page of this prospectus. |
(c) | We call this the partial Surrender Charge in other places in this prospectus. |
CHARGE | WHEN CHARGE IS DEDUCTED | AMOUNT DEDUCTED |
Policy Fee | $10 per month for initial Specified Amounts below $2,000,000. | |
Cost of Insurance Charge(a) | Monthly. | Monthly rate per $1,000 of Net Amount at Risk: |
Minimum: $0.00000— Female, Super Preferred, Nontobacco Insurance Age 20; Female, Super Preferred, Nontobacco, Insurance Age 20; Duration 1. | ||
Maximum: $49.01164— Male, Standard Tobacco, Insurance Age 85; Male, Standard Tobacco, Insurance Age 85, Duration 35. | ||
Representative Insured: $0.00001– Female, Super Preferred, Nontobacco, Insurance Age 55; Male, Standard, Nontobacco, Age 55: Duration 1. | ||
Administrative Charge(a) | Monthly. | Rate per $1,000 of initial Specified Amount: |
Minimum: $0.064— Female, Super Preferred Nontobacco, Insurance Age 20; Female, Super Preferred Nontobacco, Insurance Age 20; Durations 1-10. | ||
Maximum: $1.672; Male, Standard Tobacco, Age 85; Male, Standard Tobacco, Insurance Age 85; Durations 1-10 | ||
Representative Insured: Female, Super Preferred Nontobacco, Age 55; Male, Standard Nontobacco, Insurance Age 55. | ||
Current: $0.274 per month, Durations 1-10. | ||
Indexed Account Charge(b) | Monthly. | Annual rate of 0.60% applied monthly. |
Mortality and Expense Risk Charge | Monthly. | Annual rate of 0.00% applied monthly to the Variable Account Value. |
Optional Benefit Charges: | ||
(a) | This charge varies based on individual characteristics. The charges shown in the table may not be representative of the charge you will pay. For information about the charge you would pay, contact your sales representative or RiverSource Life of NY at the address or telephone number shown on the first page of this prospectus. |
(b) | The Indexed Account charge is equal to the sum of the charges for all Indexed Accounts. The charge for an Indexed Account is equal to the current Indexed Account charge for that Indexed Account multiplied by the sum of the Segment values corresponding to that Indexed Account as of the Monthly Date. |
CHARGE | WHEN CHARGE IS DEDUCTED | AMOUNT DEDUCTED |
Accounting Value Increase Rider (AVIR)(a) | Monthly. | Monthly rate per $1,000 of Specified Amount: |
Minimum: $0.0329 — Female, Nontobacco, Insurance Age 85; Male Nontobacco, Insurance Age 85. | ||
Maximum: $0.0475 — Female, Nontobacco, Insurance Ages 35-55; Male Nontobacco, Insurance Ages 35-55. | ||
Representative Insured: $0.0475 — Female, Nontobacco, Age 55; Male, Nontobacco, Insurance Age 55. | ||
Four-Year Term Insurance Rider (FYT)(a)(b) | Monthly. | Monthly rate per $1,000 of Net Amount at Risk: |
Minimum: $0.00000 — Female, Super Preferred, Nontobacco, Insurance Age 20; Female, Super Preferred, Nontobacco, Insurance Age 20, Duration 1. | ||
Maximum: $2.46005 — Male, Standard Tobacco, Insurance Age 85; Male, Standard Tobacco, Insurance Age 85; Duration 4. | ||
Representative Insured: $0.00001 – Female, Super Preferred Nontobacco, Insurance Age 55; Male, Standard Nontobacco, Age 55; Duration 1. | ||
(a) | This charge varies based on individual characteristics. The charges shown in the table may not be representative of the charge you will pay. For information about the charge you would pay, contact your sales representative or RiverSource Life of NY at the address or telephone number shown on the first page of this prospectus. |
(b) | This rider will terminate if one of the following circumstances occurs: (1) four-year Anniversary date shown in the policy; or (2) if the PSO rider is exercised. |
Total Annual Fund Expenses | Minimum(%) | Maximum(%) |
(expenses deducted from the fund assets, including management fees, distribution and/or service (12b-1) fees and other expenses) | 0.26 | 4.14 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks long-term growth of capital | AB VPS Large Cap Growth Portfolio (Class A) AllianceBernstein L.P. | 0.67 | 35.48 | 20.45 | 17.43 |
The Portfolio seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of its underlying index, the Alerian Midstream Energy Select Index (the "Index"). | ALPS | Alerian Energy Infrastructure Portfolio: Class I ALPS Advisors, Inc. | 0.95 | -24.85 | 0.78 | - |
Seeks long-term capital growth. Income is a secondary objective. | American Century VP Value, Class IAmerican Century Investment Management, Inc. | 0.73 | 0.98 | 8.83 | 9.73 |
Seeks high total investment return. | BlackRock
Global Allocation V.I. Fund (Class I) BlackRock Advisors, LLC |
0.76 | 21.00 | 9.42 | 6.86 |
Seeks maximum total investment return through a combination of capital growth and current income. | Columbia
Variable Portfolio - Balanced Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.76 | 17.77 | 10.78 | 10.29 |
Seeks to provide shareholders with total return. | Columbia
Variable Portfolio - Commodity Strategy Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70 | -1.29 | 1.06 | - |
Seeks total return, consisting of long-term capital appreciation and current income. | Columbia
Variable Portfolio - Contrarian Core Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.73 | 22.35 | 14.45 | - |
Seeks to provide shareholders with capital appreciation. | Columbia
Variable Portfolio - Disciplined Core Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.66 | 14.12 | 13.03 | 13.19 |
Seeks to provide shareholders with a high level of current income and, as a secondary objective, steady growth of capital. | Columbia
Variable Portfolio - Dividend Opportunity Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.74 | 1.15 | 8.99 | 8.54 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Non-diversified fund that seeks to provide shareholders with high total return through current income and, secondarily, through capital appreciation. | Columbia
Variable Portfolio - Emerging Markets Bond Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.74 | 7.43 | 6.92 | - |
Seeks to provide shareholders with long-term capital growth. | Columbia
Variable Portfolio - Emerging Markets Fund (Class 1) Columbia Management Investment Advisers, LLC |
1.14 | 33.61 | 16.39 | 5.98 |
Seeks to provide shareholders with maximum current income consistent with liquidity and stability of principal. | Columbia
Variable Portfolio - Government Money Market Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.45 | 0.31 | 0.83 | 0.42 |
Seeks to provide shareholders with high current income as its primary objective and, as its secondary objective, capital growth. | Columbia
Variable Portfolio - High Yield Bond Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.67 | 6.67 | 7.41 | 6.69 |
Seeks to provide shareholders with a high total return through current income and capital appreciation. | Columbia
Variable Portfolio - Income Opportunities Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.64 | 5.90 | 7.01 | 6.39 |
Seeks to provide shareholders with a high level of current income while attempting to conserve the value of the investment for the longest period of time. | Columbia
Variable Portfolio - Intermediate Bond Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.49 | 12.58 | 6.07 | 4.79 |
Seeks to provide shareholders with long-term capital growth. | Columbia
Variable Portfolio - Large Cap Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.73 | 34.74 | 17.94 | 15.76 |
Seeks to provide shareholders with long-term capital appreciation. | Columbia Variable Portfolio - Large Cap Index Fund (Class 1)Columbia Management Investment Advisers, LLC | 0.26 | 18.03 | 14.86 | 13.51 |
Seeks to provide shareholders with a level of current income consistent with preservation of capital. | Columbia
Variable Portfolio - Limited Duration Credit Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.48 | 5.90 | 4.25 | 2.94 |
Seeks total return, consisting of current income and capital appreciation. | Columbia
Variable Portfolio - Long Government/Credit Bond Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.50 | 17.25 | 8.85 | - |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks to provide shareholders with growth of capital. | Columbia
Variable Portfolio - Mid Cap Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.84 | 35.42 | 17.01 | 11.94 |
Seeks to provide shareholders with capital appreciation. | Columbia
Variable Portfolio - Overseas Core Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.84 | 9.12 | 6.47 | 5.23 |
Seeks to provide shareholders with long-term growth of capital. | Columbia
Variable Portfolio - Select Large Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.71 | 7.08 | 11.57 | 11.43 |
Seeks to provide shareholders with long-term growth of capital. | Columbia
Variable Portfolio - Select Mid Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.83 | 7.48 | 9.72 | 9.78 |
Seeks to provide shareholders with long-term capital growth. | Columbia
Variable Portfolio - Select Small Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.85 | 9.19 | 7.53 | 9.02 |
Seeks total return, consisting of current income and capital appreciation. | Columbia Variable Portfolio - Strategic Income Fund (Class 1) Columbia Management Investment Advisers, LLC | 0.69 | 6.82 | 6.40 | 5.28 |
Seeks to provide shareholders with current income as its primary objective and, as its secondary objective, preservation of capital. | Columbia
Variable Portfolio - U.S. Government Mortgage Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.46 | 5.09 | 3.93 | 2.81 |
Seeks to provide shareholders with a high level of current income. | CTIVP
® - American Century Diversified Bond Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; American Century Investment Management, Inc., subadviser. |
0.49 | 8.55 | 5.09 | 4.12 |
Non-diversified fund that seeks to provide shareholders with total return that exceeds the rate of inflation over the long term. | CTIVP
® - BlackRock Global Inflation-Protected Securities Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; BlackRock Financial Management, Inc., subadviser; BlackRock International Limited, sub-subadviser. |
0.60 | 9.37 | 5.59 | 4.48 |
Seeks to provide shareholders with current income and capital appreciation. | CTIVP
® - CenterSquare Real Estate Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; CenterSquare Investment Management LLC, subadviser. |
0.79 | -4.87 | 4.80 | 5.72 |
Seeks to provide shareholders with long-term capital growth. | CTIVP
® - Loomis Sayles Growth Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Loomis, Sayles & Company, L.P., subadviser. |
0.69 | 31.93 | 19.01 | 15.90 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks to provide shareholders with long-term capital growth. | CTIVP
® - MFS® Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Massachusetts Financial Services Company, subadviser. |
0.71 | 3.57 | 10.17 | 10.87 |
Seeks to provide shareholders with long-term capital growth. | CTIVP
® - Morgan Stanley Advantage Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Morgan Stanley Investment Management Inc., subadviser. |
0.68 | 75.91 | 25.81 | 17.90 |
Seeks to provide shareholders with long-term growth of capital and income. | CTIVP
® - T. Rowe Price Large Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; T. Rowe Price Associates, Inc., subadviser. |
0.70 | 2.67 | 9.40 | 9.10 |
Seeks to provide shareholders with total return through current income and capital appreciation. | CTIVP
® - TCW Core Plus Bond Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; TCW Investment Management Company LLC, subadviser. |
0.49 | 8.88 | 4.69 | 3.42 |
Seeks to provide shareholders with long-term growth of capital. | CTIVP
® - Victory Sycamore Established Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Wells Capital Management Incorporated, subadviser. |
0.79 | 8.05 | 11.77 | 11.35 |
Seeks to provide shareholders with current income consistent with capital preservation. | CTIVP
® - Wells Fargo Short Duration Government Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Wells Capital Management Incorporated, subadviser. |
0.44 | 3.73 | 2.01 | 1.55 |
Seeks to provide shareholders with long-term capital growth. | CTIVP
® - Westfield Mid Cap Growth Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Westfield Capital Management Company, L.P., subadviser. |
0.83 | 27.50 | 17.42 | 13.70 |
Seeks capital appreciation. | DWS
Alternative Asset Allocation VIP, Class A DWS Investment Management Americas Inc., adviser; RREEF America L.L.C., subadvisor. |
0.80 | 5.71 | 4.50 | 2.66 |
Seeks long-term capital appreciation. Normally invests primarily in common stocks. Invests in securities of companies whose value FMR believes is not fully recognized by the public. Invests in either "growth" stocks or "value" stocks or both. The fund i | Fidelity
® VIP Contrafund® Portfolio Initial Class Fidelity Management & Research Company (FMR) (the Adviser) is the fund's manager. |
0.61 | 30.57 | 16.19 | 13.52 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks long-term growth of capital. Normally invests primarily in common stocks. Normally invests at least 80% of assets in securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. | Fidelity
® VIP Mid Cap Portfolio Initial Class Fidelity Management & Research Company (FMR) (the Adviser) is the fund's manager. |
0.62 | 18.19 | 11.07 | 9.50 |
Seeks a high level of current income and may also seek capital appreciation. | Fidelity
® VIP Strategic Income Portfolio Initial Class Fidelity Management & Research Company (FMR) (the Adviser) is the fund's manager. |
0.67 | 7.52 | 6.27 | 4.83 |
Seeks to maximize income while maintaining prospects for capital appreciation. Under normal market conditions, the fund invests in a diversified portfolio of equity and debt securities. | Franklin
Income VIP Fund - Class 1 Franklin Advisers, Inc. |
0.47 | 0.97 | 7.22 | 6.25 |
Seeks capital appreciation, with income as a secondary goal. Under normal market conditions, the fund invests primarily in U.S. and foreign equity securities that the investment manager believes are undervalued. | Franklin
Mutual Shares VIP Fund - Class 1 Franklin Mutual Advisers, LLC |
0.73 | -4.85 | 6.15 | 7.26 |
Seeks long-term total return. Under normal market conditions, the fund invests at least 80% of its net assets in investments of small capitalization companies. | Franklin
Small Cap Value VIP Fund - Class 1 Franklin Mutual Advisers, LLC |
0.68 | 5.41 | 11.05 | 9.48 |
Seeks total return with a low to moderate correlation to traditional financial market indices. | Invesco
V.I. Balanced-Risk Allocation Fund, Series I Shares Invesco Advisers, Inc. |
0.80 | 10.22 | 7.87 | 6.39 |
Seeks capital appreciation. | Invesco
V.I. Global Fund, Series I Shares (previously Invesco Oppenheimer V.I. Global Fund, Series I Shares) Invesco Advisers, Inc. |
0.77 | 27.64 | 14.84 | 11.64 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks total return. | Invesco
V.I. Global Strategic Income Fund, Series I Shares (previously Invesco Oppenheimer V.I. Global Strategic Income Fund, Series I Shares) Invesco Advisers, Inc. |
0.91 | 3.40 | 4.40 | 3.61 |
Seeks capital appreciation. | Invesco
V.I. Main Street Small Cap Fund®, Series I Shares (previously Invesco Oppenheimer V.I. Main Street Small Cap Fund®, Series I Shares) Invesco Advisers, Inc. |
0.80 | 19.93 | 12.88 | 12.13 |
Seeks long-term capital growth, consistent with preservation of capital and balanced by current income. | Janus
Henderson Balanced Portfolio: Institutional Shares Janus Capital Management LLC |
0.62 | 14.31 | 11.81 | 10.23 |
Seeks to obtain maximum total return, consistent with preservation of capital. | Janus
Henderson Flexible Bond Portfolio: Institutional Shares Janus Capital Management LLC |
0.58 | 10.48 | 4.94 | 4.45 |
Seeks long-term growth of capital. | Janus
Henderson Research Portfolio: Institutional Shares Janus Capital Management LLC |
0.60 | 32.95 | 17.67 | 14.67 |
Seeks long-term capital appreciation. | Lazard
Retirement Global Dynamic Multi-Asset Portfolio - Investor Shares Lazard Asset Management, LLC |
0.90 | 0.96 | 6.71 | - |
Seeks total return. | MFS
® Utilities Series - Initial Class Massachusetts Financial Services Company |
0.79 | 5.90 | 11.37 | 9.20 |
The Fund seeks long-term capital growth by investing primarily in common stocks and other equity securities. | Morgan Stanley VIF Discovery Portfolio, Class I Shares (not available to new investors on or after April 5, 2021) | 0.95 | 152.30 | 37.70 | 20.76 |
Seeks long-term growth of capital by investing primarily in securities of companies that meet the Fund's environmental, social and governance (ESG) criteria. | Neuberger
Berman AMT Sustainable Equity Portfolio (Class I) Neuberger Berman Investment Advisers LLC |
0.92 | 19.56 | 13.05 | 11.62 |
Seeks maximum real return, consistent with preservation of real capital and prudent investment management. | PIMCO
VIT All Asset Portfolio, Institutional Class Pacific Investment Management Company LLC |
1.13 | 8.17 | 8.10 | 4.80 |
Seeks maximum total return, consistent with preservation of capital and prudent investment management. | PIMCO
VIT Total Return Portfolio, Institutional Class Pacific Investment Management Company LLC (PIMCO) |
0.54 | 8.81 | 4.91 | 4.09 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks high current income, consistent with preservation of capital, with capital appreciation as a secondary consideration. Under normal market conditions, the fund invests at least 80% of its net assets in debt securities of any maturity. | Templeton
Global Bond VIP Fund - Class 1 Franklin Advisers, Inc. |
0.49 | -5.07 | 0.91 | 1.81 |
Seeks to provide a high level of total return that is consistent with an aggressive level of risk. | Variable
Portfolio - Aggressive Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.80 | 15.30 | 10.09 | 8.46 |
Seeks to provide a high level of total return that is consistent with a conservative level of risk. | Variable
Portfolio - Conservative Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.65 | 9.55 | 5.58 | 4.55 |
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - Managed Volatility Conservative Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70 | 8.35 | 5.66 | - |
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - Managed Volatility Conservative Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.74 | 9.35 | 6.54 | - |
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - Managed Volatility Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.77 | 11.56 | 8.18 | - |
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - Managed Volatility Moderate Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.72 | 10.63 | 7.47 | - |
Seeks to provide a high level of total return that is consistent with a moderate level of risk. | Variable
Portfolio - Moderate Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.71 | 13.12 | 8.05 | 6.66 |
Seeks to provide a high level of total return that is consistent with a moderately aggressive level of risk. | Variable
Portfolio - Moderately Aggressive Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.77 | 14.26 | 9.09 | 7.55 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Seeks to provide a high level of total return that is consistent with a moderately conservative level of risk. | Variable
Portfolio - Moderately Conservative Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.68 | 11.28 | 6.79 | 5.59 |
Seeks to provide shareholders with a high level of current income while conserving the value of the investment for the longest period of time. | Variable
Portfolio - Partners Core Bond Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; J.P. Morgan Investment Management Inc. and Wells Capital Management Incorporated, subadvisers. |
0.48 | 8.27 | 4.51 | 3.80 |
Seeks to provide shareholders with long-term capital growth. | Variable
Portfolio - Partners Core Equity Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; J.P. Morgan Investment Management Inc. and T. Rowe Price Associates, Inc., subadvisers. |
0.68 | 17.02 | 12.50 | 10.81 |
Seeks to provide shareholders with long-term growth of capital. | Variable
Portfolio - Partners International Core Equity Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Schroder Investment Management North America Inc. (SIMNA Inc.), together with its affiliate, Schroder Investment Management North America Limited (SIMNA Ltd. and together with SIMNA Inc., Schroders), subadviser. |
0.80 | 11.16 | 5.50 | 4.54 |
Seeks to provide shareholders with long-term capital growth. | Variable
Portfolio - Partners International Growth Fund (Class 1) Columbia Management Investment Advisers LLC, adviser; William Blair Investment Management, LLC and Walter Scott & Partners Limited, subadvisers. |
0.87 | 22.62 | 9.05 | 6.84 |
Seeks to provide shareholders with long-term capital growth. | Variable
Portfolio - Partners International Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Pzena Investment Management, LLC and Thompson, Siegel & Walmsley LLC, subadvisers. |
0.84 | -3.82 | 4.18 | 1.76 |
Seeks to provide shareholders with long-term capital growth. | Variable
Portfolio - Partners Small Cap Growth Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Scout Investments, Inc. and Wells Capital Management Incorporated, subadvisers. |
0.87 | 38.77 | 15.24 | 11.58 |
Seeks to provide shareholders with long-term capital appreciation. | Variable
Portfolio - Partners Small Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Segall Bryant & Hamill, LLC and William Blair Investment Management, LLC (William Blair), together with Investment Counselors of Maryland, LLC (ICM and together with William Blair, William Blair Subadvisers), subadvisers. |
0.88 | 4.27 | 7.79 | 7.08 |
Investment Objective | Fund
Adviser/Sub-Adviser |
Current Expenses Ratio [NET] (%) | Average
Annual Total Returns (as of 12/31/2020) | ||
1 Year | 5 Year | 10 Year | |||
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - U.S. Flexible Conservative Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70 | 6.18 | - | - |
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - U.S. Flexible Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70 | 5.07 | - | - |
Pursues total return while seeking to manage the Fund's exposure to equity market volatility. | Variable
Portfolio - U.S. Flexible Moderate Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70 | 5.74 | - | - |
Seeks long-term capital appreciation. | Wells
Fargo VT Opportunity Fund - Class 1 Wells Fargo Funds Management, LLC, adviser; Wells Capital Management Inc., sub-adviser. |
0.75 | 21.32 | 15.12 | 12.05 |
Seeks long-term capital appreciation. | Wells
Fargo VT Small Cap Growth Fund - Class 1 Wells Fargo Funds Management, LLC, adviser; Wells Capital Management Inc., sub-adviser. |
0.93 | 58.09 | 22.35 | 15.11 |
Seeks to maximize total return. | Western
Asset Variable Global High Yield Bond Portfolio - Class I Legg Mason Partners Fund Adviser, LLC; Western Asset Management Company, LLC, Western Asset Management Company Limited & Western Asset Management Pte. Ltd., sub-advisors. |
0.84 | 7.32 | 8.18 | 5.82 |
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