After the Policy is issued,
insurance coverage under the Policy will be deemed to have begun as of the Policy Date. The Policy Date is usually the date that the Policy is issued. In some instances the Policy
Date is administratively backdated to save age as permitted under state insurance law. In such cases, the initial Premium will be applied to the Policy using current day pricing net of all applicable charges from the Policy Date to the current day. The Policy Date is the date used
to determine Policy years, Policy months, and Policy monthly, quarterly, semi-annual and annual anniversaries.
Right to Examine and Cancel the Policy
Pursuant to state insurance law, the Policy owner may cancel the Policy during the right to examine period ("free-look").
The free-look period expires 10 days after the Policy owner receives the Policy (or longer if required by state law). The applicable free look period is stated on the face page of your Policy.
To exercise the right to cancel the Policy during the free-look period, return the Policy to the sales representative who sold
it to you or return it to us at our Home Office, stated in the prospectus, along with your written cancellation request on a form we provide. Your written request must be received, if returned by means other than U.S. mail, or post-marked, if
returned by U.S. mail, by the last day of the free look period. Within 7 days, we will refund the amount prescribed by the law of the state in which we issued the policy. This amount will be either the initial Premium payment (plus any additional
Premium submitted during the free look period) or the Policy's Cash Value (see section III.A for information on surrender processing). If the Policy is canceled, we will treat the Policy as if it was never issued.
Depending on the right to examine law of the state in which a policy was issued, initial Net Premium designated to be
allocated to the variable investment options ("Sub-Accounts") may not be so allocated immediately upon issuance of the Policy. If a policy was issued in a state that requires us to refund the initial Premium upon exercise of the free-look
provision, we will hold all of the initial Net Premium designated to be allocated to the Sub-Accounts in the available money market Sub-Account or elected fixed account until the free-look period expires. Within two days after expiration of the free-look period, we will transfer the Cash Value allocated to the Sub-Accounts based on the allocation instructions in effect at the
time of the transfer. If a policy was issued in a state that requires us to refund the Cash Value upon exercise of the free-look provision, we will allocate all of the initial Net
Premium to the available money market Sub-Account or elected fixed account. Within two days, we will allocate all of the Cash Value to the designated Sub-Accounts based on the
allocation instructions in effect at that time. Any initial Net Premium designated to be allocated to fixed investment options will be so allocated immediately upon issue of the Policy.
U.S. Patriot Act / Anti-Money Laundering
Before Nationwide will issue a Policy, it must take certain steps to comply with federal laws intended to combat terrorism
and money laundering.
Nationwide will
conduct a screen of each Policy owner name against the list maintained by the U.S. Department of Treasury's Office of Foreign Asset Control (OFAC). If a positive identification is
made, Nationwide may be required to (i) reject and report the transaction, or (ii) block the transaction, place the funds or assets in a separate blocked transaction account, and report the matter to OFAC. These procedures will also be followed in connection with loan transactions, Policy
owner changes, and payment of any surrender or Death Benefit proceeds.
Nationwide will comply with all
applicable requirements of the Bank Secrecy Act. Nationwide will monitor Policy transactions as outlined in our anti-money laundering program for suspicious activity and other
violations of anti-money laundering laws, rules, and regulations. Nationwide will not accept cash.
C. Additional Premium Payments
The Policy is a flexible premium policy, and it provides flexibility to pay Premiums at the Policy owner’s
discretion. When applying for a Policy, a Policy owner will determine a planned periodic premium that provides for the payment of level Premiums of fixed intervals over a specified period of time. Each Policy owner may request to receive a Premium reminder
notice on either an annual, semi-annual, quarterly, or monthly basis; however, the Policy owner is not required to pay planned periodic premiums.
Payment of the planned periodic premium will not guarantee that a Policy will remain In Force. Instead, continuation of the
Policy depends upon the Policy’s Cash Surrender Value. Except to the extent the conditions of the Guaranteed Policy Continuation Provision, if applicable, detailed in the prospectus are met, even if planned periodic premiums are paid, the
Policy will lapse any time the Cash Surrender Value is insufficient to pay the current monthly deduction and a grace period expires without sufficient payment.
Additional Premium
payments will be allocated according to the most recent instructions submitted in good order. Allocations must add up to 100%.