Sales Guide. Flexible Premium Deferred Annuity. Issued by American National Insurance Company Offered exclusively through Legacy Marketing Group

Sales Guide Flexible Premium Deferred Annuity Issued by American National Insurance Company Offered exclusively through Legacy Marketing Group FOR BR...
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Sales Guide Flexible Premium Deferred Annuity Issued by American National Insurance Company Offered exclusively through Legacy Marketing Group

FOR BROKER USE ONLY. For training purposes only. Not for use with the public. Products, strategies, and certain settlement options are not approved in all states. Consult the contract for more information.

Table of Contents Safety and Security Overcome Market Anxiety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 American National Insurance Company—Strength That Inspires Confidence . . . . . . . . . . . . . . . . . . . . . . 2 A Closer Look at BenchMark RelianceSM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Cash Value Strategies®* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Access to Annuity Cash Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Definitions and Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Practical Tips for Sales Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Key Questions for Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Sales Ideas To Resolve Client Concerns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Contract Setup Scenarios—Owner-Driven Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Tax-Qualified Annuities Available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Sample Annuity Application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Sample Authorization To Transfer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Three Simple Steps To Get Paid Quickly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Prevent Delays by Avoiding These Common Errors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Support and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Client Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Producer Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Resources To Answer Your Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

We hope this guide answers your questions and provides ideas to help you sell BenchMark RelianceSM. For further information, please call the specific resources listed at the back of this guide or refer to our LegacyNet secure website at https:\\secure.legacynet.com. To provide you with quick access to the latest version of this guide, we’ve also made it available on LegacyNet. Visit the secure site regularly for the most current BenchMark RelianceSM Sales Guide.

* Cash Value Strategies® is a service mark of Legacy Marketing Group. FOR BROKER USE ONLY — AN1545F0403_R0305

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Safety and Security Overcome Market Anxiety Clients watching their hard-earned retirement dollars dwindle in a long-term bear market are understandably anxious. BenchMark RelianceSM annuities calm client fears with solid guarantees, immediate growth opportunities, and the reliability of a highly rated carrier.You can help transform client uncertainty into possibility with: • Extra first-year interest choices to jump-start earnings. • Strong minimum interest guarantees. • Generous liquidity options, including a Confinement Waiver that doesn’t require annuitization. Five Cornerstone Guarantees appeal to clients’ desires for security and control. Clients have the right to: • Access 10% of their Annuity Cash Value each contract year, including the first year.* • Choose from four Cash Value Strategies®** for each premium payment. • Elect a settlement option after the first contract year. • Receive interest on 100% of their principal, less any surrender charges. • Earn no less than a guaranteed interest rate on 100% of premiums.

American National Insurance Company— Strength That Inspires Confidence Chartered in 1905, American National Insurance Company has become an industry leader, ranking among the larger insurance companies in the United States. Its financial strength has earned high ratings from the industry’s most respected independent rating services. Please refer to the Strength and Security insert for more information or visit the Company’s website at www.anico.com.

* Withdrawals in excess of the surrender charge-free amount may be subject to applicable surrender charges, retroactive interest adjustments, and/or market value adjustments. Withdrawals may be subject to income tax, and a 10% federal income tax penalty may apply to withdrawals taken before age 591⁄ 2. ** Cash Value Strategies® is a service mark of Legacy Marketing Group. FOR BROKER USE ONLY — AN1545F0403_R0305

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A Closer Look at BenchMark Reliance SM Objective

• Traditional fixed annuities with minimum interest guarantees and competitive extra benefits. • Strength of a highly rated insurance carrier.

Differentiation

• Extra first-year interest options of 2%, 4%, 6%, or 8% to increase competitiveness. • Cornerstone Guarantees. • Generous liquidity options. • Confinement Waiver that does not require annuitization. • Settlement options that may help with long-term care planning.

Premium

• $10,000 minimum initial premium. • $1 million maximum initial premium plus additional premiums without home office approval.

Additional Premiums

• $2,000 minimum additional premium. • Accepted in first 10 contract years. • Limited to no more than 50% of total first-year premium each year. • $1 million maximum without home office approval. • Extra first year interest applies regardless of when premium is received within the first 10 years.

Issue Age Limits

Owner(s) age limits vary by product version selected. Extra: 0-99. Extra 2: 0-99. Extra 4: 0-95. Extra 6: 0-90. Extra 8: 0-85. Joint owners must be spouses. If the owner is an entity, the annuitant(s) must meet the age requirements shown above and joint annuitants must be spouses.

Cash Value Strategies ®*

Guaranteed One-Year Current Market Strategy Interest is credited at a declared rate for a 12-month period. American National credits an interest rate driven by available current market investments. Upon renewal, the crediting rate is determined by American National’s net investment portfolio. This rate will be the same as the investment portfolio that determines the Guaranteed One-Year Strategy. This strategy has a retroactive interest adjustment. Guaranteed One-Year Strategy A declared-rate strategy that credits interest at a rate determined by American National’s net investment portfolio for a 12-month

* Cash Value Strategies® is a service mark of Legacy Marketing Group. FOR BROKER USE ONLY — AN1545F0403_R0305

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Cash Value Strategies ®* (continued)

period. The renewal rate for this strategy is the same as the rate credited on new premiums allocated to this strategy. This strategy has a retroactive interest adjustment. Index 10-Year Treasury Strategy Credits an interest rate determined by the yields paid on 10-year U.S. Treasury notes. The monthly crediting rate is based on an average of the interest (yields) paid on these notes, less an administrative charge. In no case will the current administrative charge exceed the guaranteed maximum charge outlined on the data page of the contract. A market value adjustment applies when more than 10% of the Annuity Cash Value is accessed in a contract year. This adjustment can be positive or negative and is applicable only until the 10th anniversary of each premium payment. Index Corporate Bond Strategy Credits an interest rate determined by the performance of the investment-grade corporate bond market, as measured by the Lehman Brothers Intermediate Corporate Bond Index (LBICBI). The monthly crediting rate is based on an average of the interest (yields) paid on these bonds, less an administrative charge. In no case will the current administrative charge exceed the guaranteed maximum charge outlined on the data page of the contract. A market value adjustment applies when more than 10% of the Annuity Cash Value is accessed in a contract year. This adjustment can be positive or negative and is applicable only until the 10th anniversary of each premium payment. Strategy transfers are not available.

Access** to Annuity Cash Value

Withdrawals Free of Surrender Charges Currently 10% of the Annuity Cash Value is available each contract year, including the first year, or for qualified contracts, the greater of 10% or the minimum required distributions associated with this contract. “Checkbook” Access $500 minimum per draft; drafts must be payable to the owner’s financial institution.“Checkbook”available upon policyholder request. Two drafts may be written per year without charge; subsequent drafts in the same year will be charged a fee of $25 per draft. Not available on all contracts. Systematic Income Option Annual, semiannual, quarterly, or monthly withdrawals are available. If transferred electronically, withdrawals are not subject to administrative charge. Otherwise, a $5 fee per check applies. This option is also available on 403(b) and pension plan contracts. Substantially Equal Periodic Payments (SEPP) Allows for withdrawals before age 591⁄2 without income tax penalties under provisions IRC 72(q) and 72(t). See the enrollment form for restrictions.

* Cash Value Strategies® is a service mark of Legacy Marketing Group. ** Withdrawals in excess of the surrender charge-free amount may be subject to applicable surrender charges, retroactive interest adjustments, and/or market value adjustments. Withdrawals may be subject to income tax, and a 10% federal income tax penalty may apply to withdrawals taken before age 591⁄ 2. FOR BROKER USE ONLY — AN1545F0403_R0305

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Access* to Annuity Cash Value (continued)

Confinement Waiver Available if the owner (or both owners in the case of joint owners) is confined to a hospital, hospice facility, or nursing home for 60 consecutive days. (See Page 8 for more information.)

Settlement Options

After the first contract year (or within the first contract year for Settlement Options 7, 8, and 9), the contract can be annuitized. The issue age and minimum payout period vary, depending on the product version.

Death Benefit

Lump sum payout—the greater of surrender value or return of premium, less withdrawals. Settlement option—the greater of Annuity Cash Value, +/- strategy adjustments, or the minimum guaranteed Annuity Cash Value.

Minimum Guaranteed Annuity Cash Value

Equals the total of all premium payments, plus the interest computed at the minimum guaranteed interest rate for each premium payment, minus withdrawals and any associated surrender charges, minus monthly deductions.

Commissions

Please refer to LegacyNet for the latest Compensation Schedule. The Compensation Schedule is posted on the LMG Service Center under Other Tools.

* Withdrawals in excess of the surrender charge-free amount may be subject to applicable surrender charges, retroactive interest adjustments, and/or market value adjustments. Withdrawals may be subject to income tax, and a 10% federal income tax penalty may apply to withdrawals taken before age 591⁄ 2. FOR BROKER USE ONLY — AN1545F0403_R0305

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Cash Value Strategies ®* Four different Cash Value Strategies®* are available on BenchMark RelianceSM. With your guidance, clients can choose the strategy or combination of strategies that best help them achieve their retirement goals. Strategies may be selected for each premium payment.

Item

Guaranteed One-Year Current Market Strategy

Guaranteed One-Year Strategy

Index 10-Year Treasury Strategy

Index Corporate Bond Strategy

Strategy Description

Declared-rate strategy that credits an interest rate driven by available current market investments and is applicable for the first 12 months of each premium.

The interest rate for this strategy is declared for each one-year term.

Credits an interest rate determined by the yields of 10-year U.S. Treasury notes. The monthly crediting rate is based on an average of the interest (yields) paid on these notes, less an administrative charge.

Credits an interest rate determined by the performance of the investmentgrade corporate bond market as measured by the Lehman Brothers Intermediate Corporate Bond Index (LBICBI). The yield credited is an average of the interest or yields paid on these bonds, less an administrative charge.

Administrative Charges

NA

NA

Guaranteed maximum of 2.50% of the strategy cash value per year.

Guaranteed maximum of 2.50% of the strategy cash value per year.

Premium Allocation

Up to 100% of premium may be allocated to this strategy.

Up to 100% of premium may be allocated to this strategy.

Up to 100% of premium may be allocated to this strategy.

Up to 100% of premium may be allocated to this strategy.

Strategy Transfers

No transfers to or from this strategy.

No transfers to or from this strategy.

No transfers to or from this strategy.

No transfers to or from this strategy.

Strategy Adjustments

A retroactive interest adjustment applies whenever more than 10% of Annuity Cash Value is accessed in any contract year. Rather than the quoted yield, the contractual minimum interest rate will be credited from the beginning of the premium year to the date of the withdrawal. Any remaining Annuity Cash Value will earn the quoted yield for the balance of the 12-month period. The adjustment does not impact crediting for previous years.

A retroactive interest adjustment applies whenever more than 10% of Annuity Cash Value is accessed in any contract year. Rather than the quoted yield, the contractual minimum interest rate will be credited from the beginning of the premium year to the date of the withdrawal. Any remaining Annuity Cash Value will earn the quoted yield for the balance of the 12-month period. The adjustment does not impact crediting for previous years.

A market value adjustment (MVA) applies whenever more than 10% of Annuity Cash Value is accessed in any contract year. The MVA is based on a formula that recognizes changes in averages of the 10-year Treasuries over time. The MVA may be positive or negative and is applicable only until the 10th anniversary of each premium payment.

A market value adjustment (MVA) applies whenever more than 10% of Annuity Cash Value is accessed in any contract year. The MVA is based on a formula that recognizes changes in averages of the corporate bonds over time. The MVA may be positive or negative and is applicable only until the 10th anniversary of each premium payment.

* Cash Value Strategies® is a service mark of Legacy Marketing Group. FOR BROKER USE ONLY — AN1545F0403_R0305

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Rate Lock Clients enjoy the security of a rate lock on the Guaranteed One-Year Strategies. For premiums received from 1035 Exchanges and transfers, the declared rate will be locked in for 45 days from the date the application is received in the Administrative Office. Note: The locked-in interest rate will apply whether the current rates are higher or lower than the rate when the application and transfer paperwork were received by Legacy.

FOR BROKER USE ONLY — AN1545F0403_R0305

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Access* to Annuity Cash Value BenchMark RelianceSM annuities work best as a wealth accumulation tool when allowed to grow long term at a steady pace. However, when emergencies arise, clients have several options for accessing their money. Withdrawals are taken from each Cash Value Strategy®** based on a percentage of the Annuity Cash Value it represents, unless the owner requests a different election.

Withdrawals Free of Surrender Charge Each contract year, including the first year, currently up to 10% of the Annuity Cash Value may be withdrawn without surrender charge. If the minimum required distribution is greater than 10%, surrender charges will not be assessed. “Checkbook” Access Available upon request by the owner, the “checkbook”brings peace of mind and eliminates the need for forms and mail time. Two drafts can be written per contract year without an additional charge. Each draft thereafter incurs a processing charge of $25. The minimum draft amount is $500, and the draft must be made payable to the owner’s financial institution. The “checkbook”request is a part of the application packet. A “checkbook”is available to certain trusts and individual U.S. residents and only for nonqualified and IRA contracts. Systematic Withdrawals For clients who need regular access to their Annuity Cash Values, systematic income is available on an annual, semiannual, quarterly, or monthly basis. The minimum withdrawal amount is $100. There is no administrative charge if withdrawals are received electronically. Otherwise, there is a $5 charge per check. Confinement Waiver A portion of the Annuity Cash Value is available without surrender charge if the owner† (or both owners in the case of joint owners) is confined for at least 60 consecutive days to a: • Nursing home. • Hospice facility. • Hospital. The percentage of the Annuity Cash Value that may be withdrawn without a surrender charge is determined by the owner’s† issue age: • 70 or below = 100%. • 71 to 80 = 50%. • 81 and above = 25%. These percentages include any remaining surrender charge-free amount. The waiver is available only once during the life of the contract. Please see the contract for full requirements and disclosures. A qualifying injury must be sustained, or qualifying illness must first manifest itself, while the contract is inforce. Withdrawals under this provision must be requested no later than 90 days after the confinement ends. See contract for details.

Substantially Equal Periodic Payments (SEPP) The SEPP option allows for withdrawals before age 591⁄2 without income tax penalties. See the enrollment form for restrictions. * Withdrawals in excess of the surrender charge-free amount may be subject to applicable surrender charges, retroactive interest adjustments, and/or market value adjustments. Withdrawals may be subject to income tax, and a 10% federal income tax penalty may apply to withdrawals taken before age 591⁄ 2. ** Cash Value Strategies® is a service mark of Legacy Marketing Group. † If the annuity is owned by an entity, the annuitant(s) must meet confinement qualifications. FOR BROKER USE ONLY — AN1545F0403_R0305

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Definitions and Terms Access Withdrawal, election of a settlement option, surrender, or payment of a death benefit. Annuitant The person(s) named on the data page whose age and sex is used to determine the amount of settlement option payments on the maturity date. If the owner is an entity, joint annuitants must be spouses. Annuity Cash Value The sum of all strategy cash values. Beneficiary The person(s) designated by the owner(s) to receive the death benefit or any remaining settlement option payments. Upon the death of the owner after the maturity date, the beneficiary succeeds to the rights of the owner. Commissions • Go to LegacyNet for the current Compensation Schedule. • Issue ages 0-75, full commission paid. • Issue ages 76 and above, commission rate is reduced. • No chargebacks upon death or surrender after the free-look period. • Elective trailing commissions available. Death Benefit The greater of the surrender value or the return of premiums (less withdrawals) regardless of issue age. When the beneficiary elects a settlement option, this amount is the greater of the Annuity Cash Value (+/- any strategy adjustments) or the minimum guaranteed Annuity Cash Value. Grace Period A 30-day window following a premium renewal date. During this period, the owner may make a withdrawal or surrender the contract without incurring retroactive interest adjustments. Surrender charges will still apply. Group Membership Required in states where the contract is filed as a group (rather than individual) contract. Options include: Addendum to Trust for Employer Groups, Consumers’ Group Trust, and InterNational Consumers Alliance (INCA). Refer to the State Approval Matrix on LegacyNet to determine which options are available in your state. Issue Ages Owner(s) and annuitant age limits vary by product version selected. Extra:

0-99.

Extra 2: 0-99. Extra 4: 0-95. Extra 6: 0-90. Extra 8: 0-85. Joint owners must be spouses. If the owner is an entity, the annuitant(s) must meet the age requirements shown above and joint annuitants must be spouses. FOR BROKER USE ONLY — AN1545F0403_R0305

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Market Value Adjustment (MVA) This strategy adjustment applies only if you have premiums in the Index Strategies. It is triggered when more than the surrender charge-free withdrawal amount is accessed in any contract year. The adjustment can be positive or negative. The MVA ceases after 10 years from the date of each premium. Maturity Date The maturity date is 30 days before the date payments are scheduled to begin under a settlement option. It is shown on the contract data page and may not be changed by the owner. Nonqualified A contract funded with after-tax dollars. Owner An individual or entity (e.g., a trust) with an ownership right in the the contract. Joint owners must be spouses and exercise ownership rights jointly. Qualified contracts cannot have joint owners. Qualified For purposes of this contract,“qualified”is defined as a contract issued in connection with a tax-qualified retirement arrangement such as an IRA, SEP-IRA, or TSA [403(b)]. Retroactive Interest Adjustment Applies upon accessing values in the Guaranteed One-Year or Guaranteed One-Year Current Market strategies. Does not apply during the 30-day grace period or if less than the surrender charge-free withdrawal amount is accessed in any contract year. Settlement Options Methods elected by the owner or beneficiary (upon owner’s death) for receiving payments of the contract’s proceeds. Settlement options are available any time after the first contract year; however, Options 7, 8, and 9 can be elected during the first contract year. The issue age and minimum payout period vary based on product version. Available options are: 1. Interest—Payments of interest at not less than 1.5% per year. Interest will be paid or will accrue each year. The amount remaining at the end of the period will be paid in a lump sum or in another approved manner. The minimum duration is either five or 10 years, depending on the product version purchased and the contract year in which the option is elected. 2. Fixed payments—Payments for a fixed period from five to 30 years or a fixed amount to be paid over not less than five or 10 years (depending on product and year option is elected) until the premium and interest are entirely paid. 3. Life annuity—Payments over the annuitant’s life. If the annuitant dies before the first payment, no payments will be due. 4. Life annuity with a period certain—Payments for as long as the annuitant lives. If the annuitant dies before the selected period certain is over, payments will continue until the end of the period certain. A period certain of five, 10, 15, or 20 years is available. 5. Joint and survivor annuity—Payments for as long as either the annuitant or the joint annuitant lives. When the first annuitant dies, payments will continue in an amount equal to 100%, 662⁄3%, or 50% of the original payments, as selected. 6. Joint and survivor annuity with a period certain—Payments for as long as either the annuitant or the joint annuitant lives. When the first annuitant dies, payments will continue in an amount equal to 100%, 662⁄3%, or 50% of the original payments, as selected. If the second annuitant dies before the selected period certain is over, payments will continue until the end of the period certain. FOR BROKER USE ONLY — AN1545F0403_R0305

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7. Guaranteed interest income for a specified period—Interest-only payments guaranteed for a specified period. The period specified must be equal to or less than the Annuitant’s life expectacy based on the mortality table that satisfies the United States Center for Medicare and Medicaid Services guidelines. Available only on the Extra, Extra 2, and Extra 4 product versions. 8. Life income for a specified period—Fixed monthly payments of principal and interest guaranteed for a specified period. The period specified must be equal to or less than the Annuitant’s life expectacy based on the mortality table that satisfies the United States Center for Medicare and Medicaid Services guidelines. Available only on the Extra, Extra 2, and Extra 4 product versions. 9. Guaranteed income for a Specified payout period—Equal monthly payments of principal and interest guaranteed for a specified payment period, with a lump sum payable at the end of the period. The owner may specify the percentage (from 0% to 99%) of the value applied to effect this Settlement Option to be paid out in a lump sum at the end of the specified period. The specified payment period must be equal to or less than the Annuitant’s life expectancy based on the mortality table that satisfies the United States Center for Medicare and Medicaid Services’ guidelines. Medicaid Disclosure: Legacy Marketing Group, its representatives and American National Insurance Company do not give legal or tax advice. Medicaid eligibility rules are complex, vary by state and are subject to change. There are many factors that determine whether a person qualifies for Medicaid. When certain annuity settlement options are elected and annuity parents actually begin, the annuity may possible be excluded by a state in determining whether the owner is eligible for Medicaid but only if certain government guidelines are satisfied (For example: payments must be non-commutable, non-assignable, nontransferable and irrevocable). We will not be responsible as a result of your clients’inability to qualify for Medicaid.You and your client should consult an attorney specializing in elder law before an annuity is purchased in connection with Medicaid planning.

Strategy Cash Value The sum of all premium payments: • Plus interest credited. • Minus withdrawals adjusted for surrender charges, retroactive interest adjustments, and market value adjustments. • Minus any applicable deductions, including charges for optional benefits or riders.

Surrender Charge Schedule Year Since Premium Received 1 2 3 4 5 6 7 8 9 10 11 +

BenchMark RelianceSM Extra

BenchMark RelianceSM Extra 2

BenchMark RelianceSM Extra 4

BenchMark RelianceSM Extra 6

BenchMark RelianceSM Extra 8

12% 11 10 9 8 7 6 5 4 2 0

12% 12 11 10 9 8 7 6 4 2 0

12% 12 11 11 10 9 8 6 4 2 0

12% 12 11 11 10 10 8 6 4 2 0

12% 12 12 11 11 10 8 6 4 2 0

Withdrawals Free of Surrender Charge Currently 10% of the Annuity Cash Value may be withdrawn each contract year without a surrender charge. For qualified contracts, the surrender charge-free amount is the greater of 10% or the minimum required distributions associated with the contract. FOR BROKER USE ONLY — AN1545F0403_R0305

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Practical Tips for Sales Success Key Questions for Clients • Do you want to avoid fluctuation and instead have a safe, stable interest rate credited to your retirement savings? • Would you like to jump-start your earnings with extra first-year interest on all premiums regardless of when premiums are received within the first 10 contract years? • Would you like your retirement savings to grow tax deferred? • Would you feel more confident and secure if you could draw from your retirement savings in case of emergency?

BenchMark Reliance SM Solution

Clients’ Concern Safety, security, and a stable rate of return during fluctuating markets.

Competitive declared rate, plus choice of 2%, 4%, 6%, or 8% extra first-year interest. Clients have the right to: • Earn interest on 100% of principal. • Currently access 10% of Annuity Cash Value annually without surrender charge. • Choose a settlement option after the first year. • Earn no less than a guaranteed interest rate on 100% of premium. • Choose from four Cash Value Strategies®.*

Strength of a highly rated, stable carrier.

American National has one of the highest asset-to-liability ratios in the industry. Rated A+ (Superior) for financial strength by A.M. Best as of August 2003.

Paying for the high cost of long-term care, especially if they do not qualify for long-term care insurance.

Settlement Options 7, 8, and 9 may help with long-term care planning. Medicaid eligibility rules vary by state.You should contact an attorney specializing in elder care law before recommending the purchase of an annuity to your client.

* Cash Value Strategies® is a service mark of Legacy Marketing Group. FOR BROKER USE ONLY — AN1545F0403_R0305

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Contract Setup Scenarios—Owner-Driven Contract Owner

Annuitant

Death of

Death Claim Payments

Individual

Individual

Individual owner

Death benefit is paid to beneficiary in lump sum or settlement option under the 5-Year Rule.* If beneficiary is owner’s surviving spouse, he or she may continue the contract.

Individual

Different individual

Annuitant

Owner becomes annuitant.

Individual

Joint (other than owner)

One annuitant

Contract remains inforce with surviving annuitant as sole annuitant.

Individual

Joint

Both annuitants

If owner is alive, owner becomes annuitant. If owner is not alive, death benefit is paid to beneficiary in lump sum or settlement option under the 5-Year Rule.* If beneficiary is owner’s surviving spouse, he or she may continue the contract.

Individual

Joint

Owner

Death benefit is paid to beneficiary in lump sum or settlement option under the 5-Year Rule.* If beneficiary is owner’s surviving spouse, he or she may continue the contract.

Joint spousal

Individual or joint

Both owners

Death benefit paid to beneficiary in lump sum or settlement option under the 5-Year Rule.*

Joint spousal

Individual or joint

One owner

Death benefit paid to joint owner in lump sum or settlement option under the 5-Year Rule.* Spouse, as joint owner, may elect to continue the contract.

Joint spousal

Different joint individuals

One annuitant

Contract remains in force.

Joint spousal

Different joint individuals

Both annuitants

Owners become joint annuitants.

Joint spousal

Different individual

Annuitant

Owners become joint annuitants.

Trust for the benefit of the owner or annuitant

Individual or joint

One annuitant

The death benefit is paid to beneficiary. As a general rule, consider making the beneficiary the trust—or in the case of joint annuitants—both annuitants. If the trust is beneficiary, the death benefit must be paid as a lump sum within one year. If beneficiary is owner’s surviving spouse or a trust holding this contract solely for the benefit of the decedent’s spouse, the trust may continue the contract for the benefit of the surviving spouse.

* 5-Year Rule: If a non-spouse beneficiary elects to take the death benefit as a settlement option, it must be for at least five years or over the lifetime of the beneficiary. The election must be made within one year of the death. Spousal beneficiaries are not subject to the forced distribution 5-Year Rule or to the requirement that they elect a settlement option within one year of death. This chart provides general guidelines only for nonqualified contracts and does not cover all possible scenarios. Death is assumed to occur prior to the contract’s maturity date. Neither American National Insurance Company nor its representatives or affiliates give legal or tax advice. Each client’s situation is unique and should be reviewed by his or her attorney or accountant prior to electing or changing owners, annuitants, or beneficiaries of a contract. Beneficiary designations should be reviewed annually to ensure proceeds are paid to the intended recipient(s). FOR BROKER USE ONLY — AN1545F0403_R0305

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Tax-Qualified Annuities Available Contract Type

Owner

Annuitant

Premiums Accepted

IRA

Individual

Same person

Rollovers and transfers with a minimum $10,000 initial premium payment. Once established, additional premium payments of $2,000 are accepted as current year contributions.

SEP-IRA

Individual

Same person

Rollovers and transfers with a minimum $10,000 initial premium payment. Once established, additional premium payments of $2,000 are accepted as current year contributions.

Roth IRA

Individual

Same person

Rollovers and transfers with a minimum $10,000 initial premium payment. Once established, additional premium payments of $2,000 are accepted as current year contributions.

403(b)

Individual

Same person

Transfers only with a minimum $10,000 initial premium payment. No ongoing premiums accepted unless as a transfer from another 403(b).

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Sample Annuity Application

Sara

J.

Anderson

Stanley

124 Main St. Grove

AZ

517

R.

Anderson

124 Main St. 85702

555-0480

Grove

AZ

517

555-0480 63

60 444-44-4444 2/15/43

555-55-5555 5/21/40

IN

Married

Megan Anderson-Jones

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85702

SC

Married

Daughter

15

100

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BenchMark Reliance Extra 4

64,000 36,000

Guaranteed One-Year Index 10-Year Treasury

50 50

Flagstaff, AZ

14

John Williams

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September

2003

53354

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Sample Authorization To Transfer

ABC Insurance Company 24 E. Jefferson, Ellison, IN 48127 800 555-5527 Sara J. Anderson and Stanley R. Anderson Sara J. Anderson Stanley R. Anderson 13A4078916

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444-44-4444 555-55-5555

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Flagstaff, AZ

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18

September

2003

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Three Simple Steps To Get Paid Quickly 1. In many states, you may not solicit business prior to your appointment with a carrier. Contact our New Business Team for assistance. 2. Complete the application, New Business processing form, and client disclosure. All relevant sections must be filled out correctly and completely. Any amendments created after the application is submitted must be signed by the client and will delay commissions. 3. Submit business to your upline manager or our New Business Team: Petaluma New Business: 800-395-1053

Rome New Business: 800-300-0519

Regular mail: Legacy Marketing Group P.O. Box 7873 San Francisco, CA 94120-7873

Regular mail: Legacy Marketing Group P.O. Box 100216 Rome, GA 30162-7216

Overnight delivery: Legacy Marketing Group 2090 Marina Avenue Petaluma, CA 94954-6714

Overnight delivery: Legacy Marketing Group 25 Legacy Drive Northwest Rome, GA 30165-1390

Prevent Delays by Avoiding These Common Errors Expedite the processing of your clients’ applications and the issuance of your commission by ensuring client applications are complete. Common errors on the application include: • No witness signature—The witness can be anyone, including you, other than the owner or annuitant. A new application will be required if this step is omitted. • Confusion about “issue state”—Specify the state where the annuity application is signed. • Incorrect tax status listed—Choose one: - “Nonqualified”—Premium (basis) has already been taxed. This includes 1035 Exchanges. - “Tax qualified”—Premium has never been taxed. This includes IRAs and pension plans. - “Rollover”—Premium received from a qualified account that is reinvested within 60 days. - “Direct Transfer”—Premium disbursements made payable to American National Insurance Company and sent directly from the existing carrier (including banks and brokerage accounts). • Incorrect signature for trust owner—All trustees must sign on the “By”line unless the trust specifies otherwise. • Incomplete joint owner and annuitant address—Complete all address information for each person.“Same”is not acceptable. • Product name omitted—Indicate “BenchMark RelianceSM.” • Information crossed out—Cross out mistakes with a single line. Do not use correction fluid or tape. The owner, not you, must initial any changes. • Replacement requirements not met—Check “will replace”and complete the Notice Regarding Replacement (NRR) if premium is being transferred from a life insurance or annuity contract. Be sure to use the most up-to-date NRR, available on LegacyNet’s DocWarehouse. NRR form numbers and revision dates must be accurate or transfer paperwork will be returned. Our carriers require NRRs even if individual states do not.

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Common errors on the transfer forms are: • Incomplete information—Complete sections 1 and 7 on all transfer forms. • No signature guarantee—Include a signature guarantee if funds are currently held in a mutual fund. • Amount of liquidation not marked—Indicate the amount of the partial liquidation, unless a money market or mutual fund is to be fully liquidated.

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Support and Resources Client Materials • BenchMark RelianceSM client brochure (AN1546F). • Client brochure inserts (AN1547F-AN1551F). • Cash Value Strategies®* inserts (AN1553F-AN1556F). • Policyholder Guide to Settlement Option 9 (AN1669F).

Producer Tools Visit our LegacyNet secure website at https:\\secure.legacynet.com for: • Product Highlight Sheet (AN1552F). • Sales Guide (AN1545F). • Preapproved ads. • Product availability. • Interest rates. • State approvals. • Commission and hierarchy information. • PowerPoint presentations. • Supplies. • Status on new business. • Current sales promotions. • State-specific forms under DocWarehouse. • eAlice online sales illustration software. eAlice offers the same features as the CD version, but with added information sharing and better screen displays. Note: BenchMark RelianceSM will not be included in the CD version of ALICE. • Producer Guide to Settlement Options 7&8 (AN1612F1003). • Producer Guide to Settlement Option 9 (AN1668F1104). To order supplies, call 800-395-1053, Ext. 4004, or order online at LegacyNet.

* Cash Value Strategies® is a service mark of Legacy Marketing Group. FOR BROKER USE ONLY — AN1545F0403_R0305

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Resources To Answer Your Questions Petaluma, CA Legacy Marketing Group 2090 Marina Avenue Petaluma, CA 94954-6714

Rome, GA Legacy Marketing Group 25 Legacy Drive Northwest Rome, GA 30165-1390

Mailing Address Legacy Marketing Group P.O. Box 7873 San Francisco, CA 94120-7873

Mailing Address Legacy Marketing Group P.O. Box 100216 Rome, GA 30162-7216

Phone Number 800-395-1053

Phone Number 800-300-0519

Main Fax Number 800-211-5641

Main Fax Number 706-368-5990

Extensions Claims Commissions Marketing Field Support Supply New Business Policyholder Services

Extensions New Business Policyholder Services

4017 4014

4091 4084

4002 4004 4016 4015

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Notes

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Index A Access...................................................................9 Additional Premiums..........................................3 American National Insurance Company ..........2 Annuitant.............................................................9 Annuity Cash Value .............................................9

N Nonqualified......................................................10 O Owner ................................................................10 P Practical Tips for Sales Success ........................12 Premium...............................................................3 Prevent Delays by Avoiding These Common Errors................................20–21 Producer Tools ...................................................22 Product Summary ...........................................3–5

B Beneficiary............................................................9 C Cash Value Strategies®.................................3–4, 6 Charges to Client ................................................6 “Checkbook”Access........................................4, 8 Client Materials .................................................22 Commissions ...................................................5, 9 Confinement Waiver .......................................5, 8 Contract Setup Scenarios .................................13 Cornerstone Guarantees ....................................2 Crediting Rates ............................................3–4, 6

Q Qualified ............................................................10 R Rate Lock .............................................................7 Resources .....................................................22, 23 Retroactive Interest Adjustment ......................10 S Sales Ideas To Resolve Client Concerns ..........12 Sample Annuity Application ......................15–16 Sample Authorization To Transfer .............17–19 SEPP .................................................................4, 8 Settlement Options.................................5, 10–11 Strategy Cash Value...........................................11 Support and Resources.....................................22 Surrender Charge Schedule .............................11 Systematic Withdrawals..................................4, 8

D Death Benefit...................................................5, 9 Definitions and Terms...................................9–11 E Extra First-Year Interest ......................................3 F Features and Benefits..........................................3–5 G Grace Period ........................................................9 Group Membership ............................................9 Guaranteed Annuity Cash Value....................2, 5

T Tax-Qualified Annuities Available ...................14 Three Simple Steps To Get Paid Quickly ........20

I Issue Ages ........................................................3, 9

W Withdrawals Free of Surrender Charge...4, 8, 11

K Key Questions for Clients ................................12 L Liquidity Features............................................4, 8 M Market Value Adjustment .................................10 Maturity Date ....................................................10

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American National Insurance Company Galveston, TX

Products distributed through

dba: Legacy Marketing Insurance Services (CA Only) P.O. Box 7873, San Francisco, CA 94120-7873 Telephone: 800-395-1053 • Fax: 800-211-5641 www.legacynet.com

Policy Form Nos.: AN-PBE0603-10-0, AN-PBE0603-10-2, AN-PBE0603-10-4, AN-PBE0603-10-6, AN-PBE0603-10-8 Policy forms, endorsements, and numbers may vary, and the contract may not be available in all jurisdictions. FOR BROKER USE ONLY. Not for use with the general public for the purchase of annuity or insurance coverage. This sales guide is meant to be an introduction of the product only. BenchMark RelianceSM includes many other important details for you to consider in determining its appropriateness for your clients. Prior to representing this product, you will need to be contracted, appointed, and trained. Products, riders, and certain settlement options are not approved in all states. See contract for details. The information contained in this sales guide is subject to change without notice. AN1545F0403_R0305

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