0001193125-16-541126.txt : 20160414 0001193125-16-541126.hdr.sgml : 20160414 20160414132537 ACCESSION NUMBER: 0001193125-16-541126 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 20160414 DATE AS OF CHANGE: 20160414 EFFECTIVENESS DATE: 20160501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONWIDE VLI SEPARATE ACCOUNT 4 CENTRAL INDEX KEY: 0001041357 IRS NUMBER: 314156830 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-31725 FILM NUMBER: 161571221 BUSINESS ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 BUSINESS PHONE: 614-249-7111 MAIL ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONWIDE VLI SEPARATE ACCOUNT 4 CENTRAL INDEX KEY: 0001041357 IRS NUMBER: 314156830 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08301 FILM NUMBER: 161571222 BUSINESS ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 BUSINESS PHONE: 614-249-7111 MAIL ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 0001041357 S000009474 NATIONWIDE VLI SEPARATE ACCOUNT 4 C000025928 The Best of America Next Generation FPVUL C000026839 The Best of America ChoiceLife FPVUL 485BPOS 1 d135497d485bpos.htm BOA NEXT GENERATION FPVUL BOA Next Generation FPVUL
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-6
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 File No. 333-31725
Pre-Effective Amendment No. □
Post-Effective Amendment No. 38 ☑
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 File No. 811-08301
Amendment No. 219 ☑
(Check appropriate box or boxes.)
Nationwide VLI Separate Account-4
(Exact Name of Registrant)
Nationwide Life Insurance Company
(Name of Depositor)
One Nationwide Plaza, Columbus, Ohio 43215
(Address of Depositor's Principal Executive Offices) (Zip Code)
(614) 249-7111
Depositor's Telephone Number, including Area Code
Mark Howard, Executive Vice President, Chief Legal and Governance Officer,
One Nationwide Plaza, Columbus, Ohio 43215
(Name and Address of Agent for Service)
May 1, 2016
Approximate Date of Proposed Public Offering
It is proposed that this filing will become effective (check appropriate box)
□ immediately upon filing pursuant to paragraph (b)
☑ on May 1, 2016 pursuant to paragraph (b)
□ 60 days after filing pursuant to paragraph (a)(1)
□ on (date) pursuant to paragraph (a)(1)
If appropriate, check the following box:
□ this post-effective amendment designates a new effective date for a previously filed post-effective amendment.

 

The Best of America Next Generation® FPVUL
Individual Flexible Premium Variable Universal Life Insurance Policies
Issued by
Nationwide Life Insurance Company
through its
Nationwide VLI Separate Account-4
The date of this prospectus is May 1, 2016.
This prospectus contains basic information about the policies that should be understood before investing. Read this prospectus carefully and keep it for future reference.
Variable life insurance policies are complex products with unique benefits and advantages. There are costs and charges associated with these benefits and advantages - costs and charges that are different, or do not exist at all within other life insurance products. With help from financial consultants and advisors, purchasers are encouraged to compare and contrast the costs and benefits of the policy described in this prospectus against those of other life insurance products, especially other variable life insurance products offered by Nationwide and its affiliates. Nationwide offers a wide array of products, many with different charges, benefit features, and underlying investment options. This process of comparison and analysis should aid in determining whether the purchase of the policy described in this prospectus is consistent with the purchaser’s life insurance objectives, risk tolerance, investment time horizon, marital status, tax situation, and other personal characteristics and needs.
To obtain additional information, including free copies of prospectuses for the underlying mutual funds or a copy of the Statement of Additional Information, or to make service or transaction requests, contact Nationwide using any of the methods described in Contacting the Service Center.
These securities have not been approved or disapproved by the SEC nor has the SEC passed upon the accuracy or adequacy of the prospectus. Any representation to the contrary is a criminal offense.
This prospectus is not an offering in any jurisdiction where such offering may not lawfully be made. Not all Riders, terms, conditions, benefits, programs, features, and investment options are available or approved for use in every state. Contact Nationwide to review a copy of the policy and any Riders or endorsements. This prospectus contains all material rights and features of the policy.
The policy is NOT: insured by the Federal Deposit Insurance Corporation; a bank deposit; available in every state; or insured or endorsed by a bank or any federal government agency.
The policy may decrease in value to the point of being valueless because of poor Investment Experience.
The purpose of this policy is to provide life insurance protection for the beneficiary named by the policy owner. If the purchaser’s primary need is not life insurance protection, then purchasing this policy may not be in the best interest of the purchaser. Nationwide makes no claim that the policy is in any way similar or comparable to a systematic investment plan of a mutual fund.
If this policy is being purchased to replace existing life insurance, the purchaser should carefully consider the benefits, features, and costs of this policy versus those of the policy being replaced.
Nationwide offers a variety of variable universal life policies. Despite offering substantially similar features and investment options, certain policies may have lower overall charges than others including the policy described herein. These differences in charges may be attributable to differences in sales and related expenses incurred in one distribution channel versus another.
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In Summary: Policy Benefits
Death Benefit
The primary benefit of this policy is life insurance coverage. Nationwide will pay the Death Benefit Proceeds upon the Insured's death if the Insured dies while the policy is In Force. The policy is In Force when: the policy has been issued; the Insured is living; the policy has not been surrendered for its Cash Surrender Value; and the policy has not Lapsed.
Death Benefit Options
Note: The Death Benefit will be the greater of the amount produced by the death benefit option in effect on the date of the Insured's death or the Minimum Required Death Benefit, see The Minimum Required Death Benefit.
Death Benefit Option 1: The Death Benefit will be the Total Specified Amount as of the Insured's date of death.
Death Benefit Option 2: The Death Benefit will be the Total Specified Amount plus the Cash Value as of the Insured's date of death.
Death Benefit Option 3: The Death Benefit will be the Total Specified Amount plus the accumulated premium account (which consists of all Premium payments plus interest), less any partial surrenders, as of the Insured's date of death.
Choice of Policy Proceeds
The Policy Proceeds may be paid in a lump sum, or a variety of options that will pay out over time.
Coverage Flexibility
Subject to conditions, the policy owner may choose to:
• change the death benefit option;
• increase or decrease the Base Policy Specified Amount and/or Rider Specified Amount;
• change beneficiaries; and
• change ownership of the policy.
Continuation of Coverage is Guaranteed
The policy will remain In Force during the policy continuation period as long as sufficient Premium is paid to meet the requirements set forth in Guaranteed Policy Continuation Provision.
Access to Cash Value
Subject to conditions, the policy owner may:
• take a policy loan, see Policy Loans.
• take a partial surrender, see Partial Surrender.
• surrender the policy for its Cash Surrender Value at any time while the policy is In Force, see Full Surrender.
Premium Flexibility
The policy owner will select a Premium payment plan for the policy at the time of application. Within limits, the policy owner may vary the frequency and amount of Premium payments, see Premium Payments and Unfavorable Investment Experience.
Investment Options
Net Premium may be allocated among fixed and/or variable investment options available in the policy.
The policy currently offers a fixed investment option which will earn interest daily, see Fixed Account.
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The variable investment options offered under the policy correspond to mutual funds designed to be the underlying investment options of variable insurance products. Nationwide VLI Separate Account-4 contains one Sub-Account for each of the underlying mutual funds offered in the policy.
Transfer Requests
Policy owners may request to transfer allocations between available investment options of the policy (i.e., the Fixed Account and Sub-Accounts). Requests to transfer allocations between policy investment options will be processed in the Valuation Period they are received at the Service Center as long as the request is in good order. Requests that are not in good order may be delayed or returned, see Contacting the Service Center. Transfer requests may be subject to policies and procedures intended to reduce the potentially detrimental impact that disruptive trading has on Sub-Account Investment Experience, see Transfers Among and Between Policy Investment Options.
Taxes
Earnings on the policy are generally not taxable to the policy owner, unless withdrawn from the policy. This is known as tax deferral. In addition, beneficiaries generally will not have to include Death Benefit Proceeds as taxable income, see Taxes.
Unlike other variable insurance products Nationwide offers, Individual Flexible Premium Variable Universal Life Insurance Policies do not require distributions to be made before Insured's death, see Taxes.
Assignment
Policy owners may assign the policy as collateral for a loan or another obligation while the policy is In Force, see Assigning the Policy.
Examination Right
For a limited time, the policy owner may cancel the policy and receive a refund, see To Cancel (Examination Right).
Riders
The policy owner may purchase one or more of the Riders listed below, subject to availability in the state where the policy is issued. There may be additional charges assessed for elected Riders and Rider charges may vary based upon the individual characteristics of the Insured. Operation and benefits of the Riders described in this prospectus may vary by the state where the policy is issued.
• Adjusted Sales Load Life Insurance Rider
• Children's Insurance Rider
• Long-Term Care Rider
• Spouse Life Insurance Rider
• Accidental Death Benefit Rider
• Premium Waiver Rider
• Change of Insured Rider (no charge)
• Additional (insurance) Protection Rider
• Deduction (of Fees and Expenses) Waiver Rider
• Policy Guard Rider
In Summary: Policy Risks
State Variations
Due to variations in state law, many features of the policy described in this prospectus may be different or may not be available at all depending on the state in which the policy is issued.
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Possible variations include, but are not limited to, Rider terms and availability, availability of certain investment options, free look rights, policy exchange rights, policy Lapse and/or reinstatement requirements, and the duration of suicide and incontestability periods. Variations due to state law are subject to change without notice at any time. To review a copy of the policy and any Riders or endorsements for the state in which the policy will be issued, the policy owner can contact the Service Center, see Contacting the Service Center.
Risk of Increase in Current Fees and Charges
Nationwide may change policy and/or Rider charges and rates under the policy at any time. Changes in policy and/or Rider charges and rates will vary based upon changes in Nationwide's future expectations related to items such as company investment earnings, mortality experience, persistency experience, expenses, including reinsurance expenses, and taxes. Nationwide will provide advance notice of any increase in policy and/or Rider charges.
If a change in the charges or rates causes an increase to the policy and/or Rider charges, the policy's Cash Value could decrease. If a change in the charges or rates causes a decrease to the policy and/or Rider charges, the policy's Cash Value could increase. Policy and Rider charges will not exceed the maximum charges shown in the fee tables, see In Summary: Fee Tables and Standard Policy Charges.
Improper Use
Variable universal life insurance is not suitable as an investment vehicle for short-term savings. It is designed for long-term financial planning. Policy owners accessing the Cash Value in the early policy years could incur potentially substantial surrender charges.
Unfavorable Investment Experience
The Sub-Accounts may generate unfavorable Investment Experience. Poor Investment Experience and the deduction of policy and Sub-Account charges may lower the policy’s Cash Value potentially resulting in a Lapse of insurance coverage.
Note: The policy owner selects the Premium amount and frequency shown in the policy illustration to show Nationwide how much Premium the policy owner intends to pay and when. Illustrated Premium and hypothetical rates of return are not guaranteed. Investment Experience varies over time, is rarely the same year-over-year, and may be negative. Because the policy is a variable universal life insurance policy with the potential for unfavorable Investment Experience, including extended periods of significant stock market decline, additional Premium may be required to meet a policy owner's goals and/or to prevent the policy from Lapsing. Generally, variable universal life insurance is considered a long-term investment. Policy owners should weigh the investment risk and costs associated with the policy against their objectives, time horizon, risk tolerance, and ability to pay additional Premium if necessary.
Risk of Policy Lapse
Cash Value can be reduced by Investment Experience, policy loans, partial surrenders and the deduction of policy charges. Whenever Cash Value is insufficient to cover the policy’s charges, the policy is at risk of Lapse; the policy could terminate without value and insurance coverage would cease.
Limitation of Access To Cash Value
A policy owner can access Cash Value through loans and partial surrenders, subject to limitations. Limitations include the amount and frequency of the loan or partial surrender, see Policy Loans and Surrenders. Once a loan or surrender is taken, Cash Value will be reduced by the amount of the policy loan and/or the partial surrender and any associated charges.
Adverse Tax Consequences
Existing federal tax laws that benefit this policy may change at any time. These changes could alter the favorable federal income tax treatment the policy enjoys, such as the deferral of taxation on the gains in the policy's Cash Value and the exclusion of the Death Benefit Proceeds from the taxable income of the policy's beneficiary. Partial and full surrenders from the policy may be subject to taxes. The income tax treatment of the surrender of Cash Value is different in the event the policy is treated as a modified endowment contract under the Code. Generally, tax treatment of modified endowment
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contracts is less favorable when compared to a life insurance policy that is not a modified endowment contract. For example, distributions and loans from modified endowment contracts may currently be taxed as ordinary income and not a return of investment, see Taxes.
The proceeds of a life insurance policy are includible in the gross estate of the Insured for federal income tax purposes if either (a) the proceeds are payable to the executor of the estate of the Insured, or (b) the Insured, at any time within three years prior to his or her death, possessed any incident of ownership in the policy. For this purpose, the Treasury Regulations provide that the term "incident of ownership" is to be construed very broadly, and includes any right that the Insured may have with respect to the economic benefits in the policy. Consult a qualified tax advisor on all tax matters involving the policy described herein.
Fixed Account Transfer Restrictions and Limitations
In addition to the Sub-Accounts available under the policy, Net Premium can be allocated to the Fixed Account. Prior to the policy's Maturity Date, the policy owner may make transfers involving the Fixed Account subject to transfer restrictions, without penalty or adjustment. These transfers will be in dollars and Nationwide may limit the frequency and dollar amount of transfers involving the Fixed Account. See Fixed Account Transfers for details about restrictions that apply to transfers to and from the Fixed Account.
Sub-Account Limitations
Frequent trading among the Sub-Accounts may dilute the value of Accumulation Units, cause the Sub-Account to incur higher transaction costs, and interfere with the Sub-Accounts' ability to pursue their stated investment objectives. This could result in less favorable Investment Experience and a lower Cash Value. Nationwide has instituted procedures to minimize disruptive transfers. While Nationwide expects these procedures to reduce the adverse effect of disruptive transfers, it cannot ensure that it has eliminated these risks.
Sub-Account Investment Risk
A comprehensive discussion of the risks of each underlying mutual fund may be found in the mutual fund’s prospectus. Read each mutual fund's prospectus before investing. Free copies of each mutual fund's prospectus may be obtained by contacting the Service Center.
In Summary: Fee Tables
The following tables describe the fees and expenses assessed under the policy. The rates in these tables may be rounded up to the nearest one-hundredth decimal. These tables should be read in conjunction with the corresponding section of this prospectus that describes the fee or expense in more detail. All charges deducted from the policy's Cash Value are taken proportionally from the Sub-Accounts and the Fixed Account except where noted.
The first table describes the fees and expenses that a policy owner will pay at the time the policy owner buys the policy, surrenders the policy, or transfers Cash Value between investment options.
Transaction Fees
Charge When Charge Is Deducted Amount Deducted
Sales Load Charge1 Upon making a Premium payment Maximum:
$25 from each $1,000 of Premium 		Current:
$5 from each $1,000 of Premium
Premium Taxes Charge1 Upon making a Premium payment $35 per $1,000 of Premium payment
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Transaction Fees
Charge When Charge Is Deducted Amount Deducted
Surrender Charge2 Upon full surrender; Upon policy Lapse; Upon a decrease to the Base Policy Specified Amount Maximum:
$25,590 		Minimum:
$2,337 		Representative:
$3,408
Representative - For an age 35 male non-tobacco preferred with a Base Policy Specified Amount and a Total Specified Amount of $500,000 and Death Benefit Option 1 From the policy's available Cash Value
Illustration Charge3 Upon requesting an illustration Maximum:
$25 		Current:
$0
Partial Surrender Fee Upon a partial surrender Maximum:
the lesser of $25 or 2% of amount surrendered 		Current:
$0
Short-Term Trading Fee4 Upon transfer of Sub-Account value out of a Sub-Account within 60 days after allocation to that Sub-Account 1% of the amount transferred from the Sub-Account within 60 days of allocation to that Sub-Account
† This charge will vary based upon the individual characteristics of the Insured. Representative charges shown in the table may not be representative of the charge that a particular policy owner will pay. Policy owners can request an illustration of specific costs and/or see the Policy Data Pages for information about specific charges of the policy.
1 The maximum Sales Load Charge and the Premium Taxes Charge (collectively "Premium Load") represent the maximums that may be charged in any policy year, see Premium Load.
2 For purposes of this table, for a full surrender occurring in the first year from the Policy Date, the charge calculations assume an aggregate first year Premium in excess of the surrender target premium. The surrender target premium is an assumed Premium payment amount used in calculating the Surrender Charge. The Surrender Charge is based on the lesser of the surrender target premium and the Premiums paid in the first year from the Policy Date. The surrender target premium varies by: the Insured's sex; issue age; underwriting class; and the Base Policy Specified Amount (including any increases). The maximum Surrender Charge calculation assumes: a male; age 85 or older; tobacco; a Base Policy Specified Amount and Total Specified Amount of $500,000, Death Benefit Option 1; and policy year one. The minimum charge calculation assumes: a female; issue age 0; a Base Policy Specified Amount and Total Specified Amount of $500,000; Death Benefit Option 1 and policy year one.
3 The policy owner will be expected to pay the Illustration Charge at the time of the request. This charge will not be deducted from Cash Value.
4 Short-term trading fees are only assessed in connection with Sub-Accounts that correspond to underlying mutual funds that assess a short-term trading fee, see Short-Term Trading Fees.
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The next table describes the fees and expenses that a policy owner will pay periodically while the policy is In Force, not including mutual fund operating expenses.
Periodic Charges
Charge When Charge Is Deducted Amount Deducted From Cash Value
Cost Of Insurance Charge1† Monthly Minimum:
$0.04 		Maximum:
$83.33 		Representative:
$0.14
Representative – An age 35 male; non-tobacco preferred; Base Policy Specified Amount and Total Specified Amount $500,000; Death Benefit Option 1 Per $1,000 Of Net Amount At Risk –
From the policy's available Cash Value
Flat Extra Charge2 Monthly Maximum:
$2.08 per $1,000 of Net Amount
At Risk for each Flat Extra assessed
Mortality and Expense Risk Charge3 Monthly Maximum :
A monthly rate of $0.50 Per $1,000 of Cash Value
Proportionately from the Sub-Accounts only
Administrative Charge4 Monthly Maximum:
$10 		Current:
$10
From the policy's available Cash Value
Policy Loan Interest Charge5 Annually Maximum:
$39 		Current:
$39
Per $1,000 of an outstanding policy loan
† This charge will vary based upon the individual characteristics of the Insured. Representative charges shown in the table may not be representative of the charge that a particular policy owner will pay. Policy owners can request an illustration of specific costs and/or see the Policy Data Pages for information about specific charges of the policy.
1 The Cost of Insurance Charge varies by: the Insured's sex; age; underwriting class; any Substandard Ratings; the year from the Policy Date; and the Base Policy Specified Amount. Cost of Insurance charges are taken from the policy's Cash Value at the beginning of the month starting with the Policy Date. The charge is not pro rated should the policy terminate before the beginning of the next month.
2 The Flat Extra is a component in the calculation of the base policy Cost of Insurance Charge and any Rider Cost of Insurance Charge. It is only applicable if certain factors result in an Insured having a Substandard Rating. Under no circumstance will the assessment of a Flat Extra Charge result in the Cost of Insurance Charge exceeding the maximum Cost of Insurance Charge, see Cost of Insurance.
3 On a current basis, during policy years one through 15, the Mortality and Expense Risk Charge is $0.50 per $1,000 on the first $25,000 of Cash Value, and $0.25 per $1,000 on Cash Values of $25,001 up to $250,000. For Cash Values above $250,000, the charge is $0.08 per $1,000. Beginning in the policy year 16, the charge is $0.50 per $1,000 on the first $25,000 of Cash Value, and $0.08 per $1,000 of Cash Value over $25,000. The charge is only assessed against Cash Value allocated to Sub-Accounts.
4 After the first policy year, the monthly maximum amount is $7.50, and the monthly current amount is $5.
5 The Policy Loan Interest Charge is described in more detail in Policy Loans.
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The next table describes the fees and expenses associated with Riders that a policy owner will pay periodically while the policy is In Force, not including mutual fund operating expenses.
Periodic Charges For Riders
Charge When Charge Is Deducted Amount Deducted From Cash Value
Adjusted Sales Load Life Insurance Rider Charge Monthly $0.14
Per $1,000 of aggregate monthly Premiums
and 1% of Premium Load replaced – Waived from the policy’s available Cash Value
Children's Insurance Rider Charge Monthly $0.43 Per $1,000 of Rider Specified Amount –
From the policy's available Cash Value
Long-Term Care Rider Charge† Monthly Minimum:
$0.02 		Maximum:
$28.65 		Representative:
$0.02
Representative - An age 35 male; non-tobacco preferred;Long-Term Care Rider Specified Amount $500,000; Death Benefit Option 1 Per $1,000 of Rider Net Amount At Risk -
From the policy's available Cash Value
Spouse Life Insurance Rider Charge† Monthly Minimum:
$0.10 		Maximum:
$10.23 		Representative:
$0.11
Representative Spouse - An age 35 female; non-tobacco; and Spouse Life Insurance Rider Specified Amount $100,000 Per $1,000 of Spouse Death Benefit -
From the policy's available Cash Value
Accidental Death Benefit Rider Charge† Monthly Minimum:
$0.05 		Maximum:
$0.75 		Representative:
$0.06
Representative - An age 35 male; non-tobacco preferred; and Accidental Death Benefit $100,000 Per $1,000 of Accidental Death Benefit -
From the policy's available Cash Value
Premium Waiver Rider Charge1† Monthly Minimum:
$42 		Maximum:
$315 		Representative:
$42
Representative - An age 35 male; non-tobacco preferred Per $1,000 of Premium Waiver Benefit -
From the policy's available Cash Value
Additional (Insurance) Protection Rider Charge2† Monthly Minimum:
$0.01 		Maximum:
$83.33 		Representative:
$0.04
Representative - An age 35 male; non-tobacco preferred; Additional Death Benefit $250,000 Per $1,000 of Rider Net Amount at Risk –
From the policy's available Cash Value
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Periodic Charges For Riders
Charge When Charge Is Deducted Amount Deducted From Cash Value
Deduction (of Fees and Expenses) Waiver Rider Charge3† Monthly Minimum:
$90 		Maximum:
$860 		Representative:
$90
Representative - An age 35 male; non-tobacco preferred; Total Specified Amount of $500,000; Death Benefit Option 1 Per $1,000 of Deduction Waiver Benefit –
From the policy's available Cash Value
Policy Guard Rider Charge4† Upon Invoking The Rider Minimum:
$6.50 		Maximum:
$46.00 		Representative:
$37.00
Representative – Attained Age 85; Cash Value $500,000; Indebtedness of $480,000 Deducted from each $1,000 of the policy's Cash Value
† This charge will vary based upon the individual characteristics of the Insured. Representative charges shown in the table may not be representative of the charge that a particular policy owner will pay. Policy owners can request an illustration of specific costs and/or see the Policy Data Pages for information about specific charges of the policy.
1 The charge calculations assume monthly Premium payments of $1,000, the waiver of which would occur in the event of the Insured's total disability for six consecutive months. For policies issued before July 13, 2006, the maximum charge for this Rider is $105.
2 The monthly charge is a product of the Rider's monthly cost of insurance charge and the Rider Death Benefit, see Additional (Insurance) Protection Rider.
3 The charge calculation assumes total monthly periodic charges of $1,000 (not including this Rider's cost, and any loan amount interest [which are meant to be excluded]). These charges would be waived in the event of the Insured's total disability for six consecutive months.
4 The level of Indebtedness as a percentage of Cash Value that will allow the policy owner to invoke the Rider will vary with the attained age of the Insured. Generally, the higher the Insured's attained age, the higher the level of Indebtedness must be to invoke the Rider, see Policy Guard Rider.
The next table shows the minimum and maximum total operating expenses, as of December 31, 2015, charged by the underlying mutual funds that a policy owner may periodically pay while the policy is In Force. More detail concerning each mutual fund's fees and expenses is contained in the mutual fund's prospectus.
Total Annual Mutual Fund Operating Expenses  
    Minimum   Maximum  
Total Annual Mutual Fund Operating Expenses
(expenses that are deducted from the mutual fund assets, including management fees, distribution (12b-1) fees, and other expenses) 		  0.13%   3.08%  
Policy Investment Options
Policy owners designate how Net Premium payments are allocated among the Sub-Accounts and/or the Fixed Account. Allocation instructions must be in whole percentages and the sum of the allocations must equal 100%.
Fixed Account
Nationwide's obligations under the Fixed Account are backed by assets of its general account. The general account contains all of Nationwide's assets other than those in this and other Nationwide separate accounts and is used to support Nationwide's annuity and insurance obligations.
Subject to applicable law, Nationwide has sole discretion over the investment of assets of the general account and policy owners do not share in the investment experience of, or have any preferential claim on, those assets. Nationwide bears the full investment risk for all amounts allocated to the Fixed Account.
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Because of exemptive and exclusionary provisions, interests in the Fixed Account have not been and will not be registered under the Securities Act of 1933 and the general account has not been registered as an investment company under the Investment Company Act of 1940. Accordingly, neither the general account nor any interests therein are subject to the provisions of these acts. Nationwide has been advised that the staff of the SEC has not reviewed the disclosure in this prospectus relating to the Fixed Account. Disclosure regarding the Fixed Account, however, is subject to certain generally-applicable provisions of the federal securities laws relating to accuracy and completeness of statements made in prospectuses.
Minimum Guaranteed Interest Rate
Nationwide guarantees that Cash Value allocated to the Fixed Account will accrue interest daily at an effective annual rate that Nationwide determines without regard to the actual investment experience of the general account. Interest crediting rates are set at the beginning of each calendar quarter but are subject to change at any time. Nationwide will credit any interest in excess of the guaranteed interest crediting rate at its sole discretion. Nationwide may not credit any interest in excess of the guaranteed interest crediting rate and different rates may apply to different Premium allocations or exchanges.
Currently, the Fixed Account is the only fixed investment option available under the policy. In the future, Nationwide may offer one or more additional fixed accounts with characteristics that differ from those of the current option, but is under no obligation to do so. The effective annual rate Nationwide declares for the Fixed Account will never be less than 3%.
Interest Crediting Risks and Lapse
The policy owner assumes the risk that the actual credited interest rate may not exceed the guaranteed interest crediting rate. Premiums applied to the policy at different times may receive different interest crediting rates. The interest crediting rate may also vary for new Premium versus Sub-Account transfers. Interest credited to the Fixed Account may be insufficient to pay the policy's charges. Additional Premium payments may be required over the life of the policy to prevent it from Lapsing.
Nationwide Claims-Paying Ability
Guaranteed benefits or interest crediting associated with the Fixed Account is a general account obligation of Nationwide. Therefore, any guaranteed benefit, interest crediting, and the policy owner's right to receive payment, is subject to Nationwide’s claims-paying ability and may be subordinate to other claims on the general account in the event Nationwide becomes insolvent.
Restrictions on Transfers to and from the Fixed Account
Prior to the policy's Maturity Date, the policy owner may make transfers involving the Fixed Account. These transfers will be in dollars. Nationwide may impose limits on the dollar amount, percentage of Cash Value, number, and/or frequency of transfers involving the Fixed Account, see Fixed Account Transfers for details about restrictions that apply to transfers to and from the Fixed Account.
Variable Investment Options
The variable investment options available under the policy are Sub-Accounts that correspond to mutual funds that are registered with the SEC. The mutual funds' registration with the SEC does not involve the SEC's supervision of the management or investment practices or policies of the mutual funds. The mutual funds are designed primarily as investments for variable annuity contracts and variable life insurance policies issued by insurance companies.
Each Sub-Account's assets are held separately from the assets of the other Sub-Accounts. The result is that each Sub-Account operates independently of the other Sub-Accounts so the income or losses of one Sub-Account will not affect the Investment Experience of any other Sub-Account.
Underlying mutual funds in the separate account are NOT publicly traded mutual funds. They are only available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies, or in some cases, through participation in certain qualified pension or retirement plans.
The investment advisors of the underlying mutual funds may manage publicly traded mutual funds with similar names and investment objectives. However, the underlying mutual funds are NOT directly related to any publicly traded mutual fund. Policy owners should not compare the performance of a publicly traded fund with the performance of underlying mutual funds participating in the separate account. The performance of the underlying mutual funds could differ substantially from that of any publicly traded funds.
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The particular underlying mutual funds available under the policy may change from time to time. Specifically, underlying mutual funds or underlying mutual fund share classes that are currently available may be removed or closed off to future investment. New underlying mutual funds or new share classes of currently available underlying mutual funds may be added. In the case of new share class additions, future allocations may be limited to the new share classes. The policy owner will receive notice of any such changes that effect the policy. Not all underlying mutual funds may be available in every state.
Some underlying mutual funds may assess short-term trading fees. The separate account will collect the short-term trading fee at the time of the transfer by reducing the amount transferred. All short-term trading fees collected are remitted to the underlying mutual fund, see Short-Term Trading Fees and Appendix A: Sub-Account Information.
In the future, additional underlying mutual funds managed by certain financial institutions, brokerage firms, or their affiliates may be added to the separate account. These additional underlying mutual funds may be offered exclusively to purchasing customers of the particular financial institution or brokerage firm, or through other exclusive distribution arrangements.
The Sub-Accounts available through this policy invest in underlying mutual funds of the companies listed below. For a complete list of the available Sub-Accounts, see Appendix A: Sub-Account Information. For more information on the underlying mutual funds, refer to the prospectus for the mutual fund. To obtain free copies of prospectuses for the underlying mutual funds, policy owners can contact Nationwide using any of the methods described in Contacting the Service Center.
• AllianceBernstein Variable Products Series Fund, Inc.
• American Century Variable Portfolios II, Inc.
• American Century Variable Portfolios, Inc.
• BlackRock Variable Series Funds, Inc.
• Delaware VIP Trust
• Deutsche Variable Series II
• Dimensional
• Dreyfus
• Dreyfus Investment Portfolios
• Dreyfus Variable Investment Fund
• Federated Insurance Series
• Fidelity Variable Insurance Products Fund
• Franklin Templeton Variable Insurance Products Trust
• Goldman Sachs Variable Insurance Trust
• Guggenheim Variable Fund
• Invesco
• Ivy Funds Variable Insurance Portfolios
• Janus Aspen Series
• Lord Abbett Series Fund, Inc.
• MFS® Variable Insurance Trust
• MFS® Variable Insurance Trust II
• Nationwide Variable Insurance Trust
• Neuberger Berman Advisers Management Trust
• Northern Lights Variable Trust
• Oppenheimer Variable Account Funds
• PIMCO Variable Insurance Trust
• T. Rowe Price Equity Series, Inc.
• The Universal Institutional Funds, Inc.
• VanEck VIP Trust
• Wells Fargo Variable Trust
 
 
Valuation of Accumulation Units
Nationwide accounts for the value of a policy owner's interest in the Sub-Accounts by using Accumulation Units. The value of each Accumulation Unit varies daily based on the Investment Experience of the underlying mutual fund in which the Sub-Account invests. Nationwide uses each underlying mutual fund's Net Asset Value (NAV) to calculate the daily Accumulation Unit value for the corresponding Sub-Account. Note, however, that the Accumulation Unit value will not equal the underlying mutual fund's NAV. This daily Accumulation Unit valuation process is referred to as "pricing" the Accumulation Units, see How Sub-Account Investment Experience is Determined.
Accumulation Units are priced as of the New York Stock Exchange's (NYSE) close of business, normally 4:00 p.m. EST, on each day that it is open. Nationwide will price Accumulation Units on each day that the NYSE is open for business. Any transactions received after the close of the NYSE will be priced as of the next Valuation Period. Nationwide will not price Accumulation Units on these recognized holidays:
• New Year's Day
• Martin Luther King, Jr. Day
 
 
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• Presidents' Day
• Good Friday
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving
• Christmas
In addition, Nationwide will not price Accumulation Units if:
(1) trading on the NYSE is restricted;
(2) an emergency exists making disposal or valuation of securities held in the separate account impracticable; or
(3) the SEC, by order, permits a suspension or postponement for the protection of security holders.
SEC rules and regulations govern when the conditions described in items (1) and (2) exist.
How Sub-Account Investment Experience is Determined
Sub-Account allocations are accounted for in Accumulation Units. A policy owner's interest in the Sub-Accounts is represented by the number of Accumulation Units owned by the policy owner. The number of Accumulation Units associated with a given Sub-Account allocation is determined by dividing the dollar amount allocated to the Sub-Account by the Accumulation Unit value for the Sub-Account. The number of Sub-Account Accumulation Units owned by a policy owner will not change except when Accumulation Units are redeemed to process a requested surrender, transfer, loan, or to take policy charges, or when additional Accumulation Units are purchased with Premium and loan repayments.
Initially, Nationwide sets the Accumulation Unit value at $10 for each Sub-Account. Thereafter, the daily value of Accumulation Units in a Sub-Account will vary depending on the Investment Experience of the underlying mutual fund in which the Sub-Account invests. Nationwide accounts for these performance fluctuations by using a "net investment factor," as described below, in the daily Sub-Account valuation calculations. Changes in the net investment factor may not be directly proportional to changes in the NAV of the mutual fund shares.
Nationwide determines the net investment factor for each Sub-Account on each Valuation Period by dividing (a) by (b), where:
(a) is the sum of:
• the NAV per share of the mutual fund held in the Sub-Account as of the end of the current Valuation Period; and
• the per share amount of any dividend or income distributions made by the mutual fund held in the Sub-Account (if the date of the dividend or income distribution occurs during the current Valuation Period); plus or minus
• a per share charge or credit for any taxes reserved for as a result of the Sub-Account's investment operations if changes to the law result in a modification to the tax treatment of the separate account; and
(b) is the NAV per share of the mutual fund held in the Sub-Account determined as of the end of the immediately preceding Valuation Period.
Nationwide determines the Sub-Account’s Accumulation Unit value at the end of each Valuation Period. The Accumulation Unit value for any Valuation Period is determined by multiplying the Accumulation Unit value as of the prior Valuation Period by the net investment factor for the Sub-Account for the current Valuation Period.
Transfers Among and Between the Policy Investment Options
Sub-Account Transfers
Policy owners may request transfers to or from the Sub-Accounts once per Valuation Period, subject to the terms and conditions described in this prospectus and the prospectuses of the underlying mutual funds. Transfers will be implemented by redeeming Accumulation Units from the Sub-Account(s) indicated by the policy owner and using the redemption proceeds to purchase Accumulation Units in another Sub-Account(s) as directed by the policy owner. The net result is that the policy owner's Cash Value will not change (except due to standard market fluctuations), but the number and allocation of Accumulation Units within the policy will change.
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Neither the policies nor the mutual funds are designed to support active trading strategies that require frequent movement between or among Sub-Accounts (sometimes referred to as "market-timing" or "short-term trading"). A policy owner who intends to use an active trading strategy should consult his/her registered representative and request information on other Nationwide policies that offer mutual funds that are designed specifically to support active trading strategies.
Nationwide discourages (and will take action to deter) short-term trading in this policy because the frequent movement between or among Sub-Accounts may negatively impact other investors in the policy. Short-term trading can result in:
• the dilution of the value of the investors' interests in the mutual fund;
• mutual fund managers taking actions that negatively impact performance (i.e., keeping a larger portion of the mutual fund assets in cash or liquidating investments prematurely in order to support redemption requests); and/or
• increased administrative costs due to frequent purchases and redemptions.
To protect investors in this policy from the negative impact of these practices, Nationwide has implemented, or reserves the right to implement, several processes and/or restrictions aimed at eliminating the negative impact of active trading strategies. Nationwide cannot guarantee that attempts to deter active trading strategies will be successful.
If Nationwide is unable to deter active trading strategies, the performance of the Sub-Accounts that are actively traded may be adversely impacted. Policy owners remaining in the affected Sub-Account will bear any resulting increased costs.
Short-Term Trading Fees
Some underlying mutual funds assess a short-term trading fee in connection with transfers from a Sub-Account that occur within 60 days after the date of the allocation to the Sub-Account. The fee is assessed against the amount transferred and is paid to the underlying mutual fund. These fees compensate the mutual fund for any negative impact on fund performance resulting from short-term trading. Some underlying mutual funds may refer to short-term trading fees as "redemption fees." See Appendix A: Sub-Account Information for a complete list of available underlying mutual funds, including those that assess short-term trading fees.
U.S. Mail Restrictions
Nationwide monitors transfer activity in order to identify those who may be engaged in harmful trading practices. Transaction reports are produced and examined. Generally, a policy may appear on these reports if the policy owner (or a third party acting on their behalf) engages in a certain number of "transfer events" in a given period. A "transfer event" is any transfer, or combination of transfers, occurring in a given Valuation Period. For example, if a policy owner executes multiple transfers involving 10 Sub-Accounts in one Valuation Period, this counts as one transfer event. A single transfer occurring in a given Valuation Period that involves only two Sub-Accounts (or one Sub-Account if the transfer is made to or from a fixed investment option) will also count as one transfer event.
As a result of this monitoring process, Nationwide may restrict the form in which transfer requests will be accepted. In general, Nationwide will adhere to the following guidelines:
Trading Behavior Nationwide's Response
Six or more transfer events in one calendar quarter Nationwide will mail a letter to the policy owner notifying them that:
(1) they have been identified as engaging in harmful trading practices; and
(2) if their transfer events exceed 11 in two consecutive calendar quarters or 20 in one calendar year, the policy owner will be limited to submitting transfer requests via U.S. mail.
More than 11 transfer events in two consecutive calendar quarters
OR
More than 20 transfer events in one calendar year 		Nationwide will automatically limit the policy owner to submitting transfer requests via U.S. mail.
For purposes of Nationwide's transfer policy, U.S. mail includes standard U.S. mail, expedited U.S. mail, and expedited delivery via private carrier.
Each January 1st, Nationwide will start the monitoring anew, so that each policy starts with zero transfer events each January 1. See, however, the Other Restrictions provision below.
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Managers of Multiple Policies
Some investment advisors/representatives manage the assets of multiple Nationwide policies pursuant to trading authority granted or conveyed by multiple policy owners. These multi-policy advisors will be required by Nationwide to submit all transfer requests via U.S. mail.
Other Restrictions
Nationwide reserves the right to refuse or limit transfer requests, or take any other action it deems necessary, in order to protect policy owners and beneficiaries from the negative investment results that may result from short-term trading or other harmful investment practices employed by some policy owners (or third parties acting on their behalf). In particular, trading strategies designed to avoid or take advantage of Nationwide's monitoring procedures (and other measures aimed at curbing harmful trading practices) that are nevertheless determined by Nationwide to constitute harmful trading practices, may be restricted.
Any restrictions that Nationwide implements will be applied consistently and uniformly. The policy owner will be notified if a transfer request is rejected. If a short-term trading fee is assessed, the policy owner will receive a confirmation notice.
Underlying Mutual Fund Restrictions and Prohibitions
Pursuant to regulations adopted by the SEC, Nationwide is required to enter into written agreements with the underlying mutual funds which allow the underlying mutual funds to:
(1) request the taxpayer identification number, international taxpayer identification number, or other government issued identifier of any policy owner;
(2) request the amounts and dates of any purchase, redemption, transfer, or exchange request ("transaction information"); and
(3) instruct Nationwide to restrict or prohibit further purchases or exchanges by policy owners that violate policies established by the underlying mutual fund (whose policies may be more restrictive than Nationwide’s policies).
Nationwide is required to provide such transaction information to the underlying mutual funds upon their request. In addition, Nationwide is required to restrict or prohibit further purchases or requests to exchange into an underlying mutual fund upon instruction from the underlying mutual fund. Nationwide and any affected policy owner may not have advance notice of such instructions from an underlying mutual fund to restrict or prohibit further purchases or requests to exchange into an underlying mutual fund. If an underlying mutual fund refuses to accept a purchase or request to exchange into the underlying mutual fund, Nationwide will keep any affected policy owner in their current underlying mutual fund allocation.
Fixed Account Transfers
Prior to the policy's Maturity Date, the policy owner may make transfers involving the Fixed Account. These transfers will be in dollars. Nationwide may impose limits on the dollar amount, percentage of Cash Value, number, and/or frequency of transfers involving the Fixed Account. Contact the Service Center for information regarding restrictions in effect for the Fixed Account at the time of a Premium payment or transfer request.
Transfers to and/or from the Fixed Account may be restricted as follows:
• Transfers to and/or from may be prohibited during the first policy year
• Only one transfer to and/or from may be permitted every 12 months
Transfers to the Fixed Account may be restricted as follows:
• Transfers to that exceed 20% of the value allocated to the Sub-Accounts (as of the end of the prior Valuation Period) may not be permitted
• Transfers to that would result in the Fixed Account value exceeding 30% of the total Cash Value may not be permitted.
Transfers from the Fixed Account may be restricted as follows:
• Transfers from, of more than 20% of the Fixed Account value in any policy year (as of the end of the previous policy year), may not be permitted.
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Amounts transferred to the Fixed Account may be credited interest at different rates, see Fixed Account. Transfers from the Fixed Account will be on a last-in, first-out basis (LIFO). Any restrictions that Nationwide implements will be applied consistently and uniformly.
Contacting the Service Center
All inquiries, paperwork, information requests, service requests, and transaction requests should be made to the Service Center:
• by telephone at 1-800-848-6331 (TDD 1-800-238-3035)
• by mail to Nationwide Life Insurance Company, P.O. Box 182835, Columbus, Ohio 43218-2835
• by fax at 1-888-634-4472
• by Internet at www.nationwide.com.
Nationwide reserves the right to restrict or remove the ability to submit service requests via Internet, phone, or fax upon written notice.
Not all methods of communication are available for all types of requests. To determine which methods are permitted for a particular request, refer to the specific transaction provision in this prospectus, or call the Service Center. Requests submitted by means other than described in this prospectus could be returned or delayed.
Service and transaction requests will generally be processed in the Valuation Period they are received at the Service Center as long as the request is in good order, see Valuation of Accumulation Units. Good order generally means that all necessary information to process the request is complete and in a form acceptable to Nationwide. If a request is not in good order, Nationwide will take reasonable actions to obtain the information necessary to process the request. Requests that are not in good order may be delayed or returned. Nationwide reserves the right to process any transaction request sent to a location other than the Service Center in the Valuation Period it is received at the Service Center. On any day the post office is closed, Nationwide is unable to retrieve service and transaction requests that are submitted by mail. This will result in a delay of the delivery of those requests to the Service Center.
Nationwide may be required to provide information about a specific policy to government regulators. If mandated under applicable law, Nationwide may be required to reject a Premium payment and to refuse to process transaction requests for transfers, surrenders, loans, and/or Death Benefit Proceeds until instructed otherwise by the appropriate regulator.
Nationwide will use reasonable procedures to confirm that instructions are genuine and Nationwide will not be liable for following instructions that it reasonably determined to be genuine. Nationwide may record telephone requests. Telephone and computer systems may not always be available. Any telephone system or computer can experience outages or slowdowns for a variety of reasons. The outages or slowdowns could prevent or delay processing. Although Nationwide has taken precautions to support heavy use, it is still possible to incur an outage or delay. To avoid technical difficulties, submit transaction requests by mail.
The Policy
General Information
The policy is a legal contract. It will comprise and be evidenced by: a written contract; any Riders; any endorsements; the Policy Data Pages; and the application, including any supplemental application. The benefits described in the policy and this prospectus, including any optional Riders or modifications in coverage, may be subject to Nationwide’s underwriting and approval. In addition to the terms and conditions of the policy, policy owner rights are governed by this prospectus and protected by federal securities laws and regulations. Nationwide will consider the statements made in the application as representations, and will rely on them as being true and complete. However, Nationwide will not void the policy or deny a claim unless a statement is a material misrepresentation. If a policy owner makes an error or misstatement on the application, Nationwide will adjust the Death Benefit and Cash Value accordingly.
Due to state law variations, the terms, benefits, programs and Riders described in this prospectus may vary or may not be available depending on the state in which the policy is issued. Possible state law variations include, but are not limited to, Rider terms, availability of certain investment options, free look rights, policy exchange rights, policy Lapse and/or
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reinstatement requirements, and surrender charge, suicide, and incontestability durations. This prospectus describes all the material features of the policy. State variations are subject to change without notice at any time. To review a copy of the policy and any Riders or endorsements for the state in which the policy will be issued, contact the Service Center.
Any modification or waiver of Nationwide’s rights or requirements under the policy must be in writing and signed by Nationwide’s president or corporate secretary. No agent may bind Nationwide by making any promise not contained in the policy.
Nationwide may modify the policy, its operations, or the separate account’s operations to meet the requirements of any law or regulation issued by a government agency to which the policy, Nationwide, or the separate account is subject. Nationwide may modify the policy to assure that it continues to qualify as a life insurance policy under federal tax laws. Nationwide will notify policy owners of all modifications and will make appropriate endorsements to the policy.
The policy is nonparticipating, meaning that Nationwide will not be contributing any operating profits or surplus earnings toward the policy Proceeds.
To the extent permitted by law, policy benefits are not subject to any legal process on the part of a third-party for the payment of any claim, and no right or benefit will be subject to the claims of creditors (except as may be provided by assignment).
It is important to remember that the portion of any amounts allocated to Nationwide’s general account and any guaranteed benefits Nationwide may provide under the policy exceeding the value of amounts held in the separate account are subject to Nationwide’s claims paying ability.
Any money Nationwide pays, or that is paid to Nationwide, must be in the currency of the United States of America.
In order to comply with the USA Patriot Act and rules promulgated thereunder, Nationwide has implemented procedures designed to prevent policies described in this prospectus from being used to facilitate money laundering or the financing of terrorist activities.
Nationwide’s businesses are highly dependent upon its computer systems and those of its business partners. This makes Nationwide potentially susceptible to operational and information security risks resulting from a cyber-attack. These risks include direct risks, such as theft, misuse, corruption and destruction of data maintained by Nationwide, and indirect risks, such as denial of service attacks on service provider websites and other operational disruptions that impede Nationwide’s ability to electronically interact with service providers. Cyber-attacks affecting Nationwide, the underlying mutual funds, intermediaries, and other service providers may adversely affect Nationwide and Policy Values. In connection with any such cyber-attacks, Nationwide and/or its service providers and intermediaries may be subject to regulatory fines and financial losses and/or reputational damage. Cyber security risks may also impact the issuers of securities in which the underlying mutual funds invest, which may cause the underlying mutual funds to lose value. Although Nationwide undertakes substantial efforts to protect its computer systems from cyber-attacks, including internal processes and technological defenses that are preventative or detective, and other controls designed to provide multiple layers of security assurance, there can be no guarantee that Nationwide, its service providers, or the underlying mutual funds will avoid losses affecting the policy due to cyber-attacks or information security breaches in the future.
In the event that Policy Values are adversely affected as a result of the failure of Nationwide’s cyber-security controls, Nationwide will take reasonable steps to restore Policy Values to the levels that they would have been had the cyber-attack not occurred. Nationwide will not, however, be responsible for any adverse impact to Policy Values that result from the policy owner or its designee’s negligent acts or failure to use reasonably appropriate safeguards to protect against cyber-attacks.
Policy Owner and Beneficiaries
Policy Owner
The policy belongs to the owner named in the application or as a result of a valid assignment. The policy owner may name a contingent owner who will become the policy owner if the policy owner dies before Proceeds become payable. Otherwise, ownership will pass to the policy owner's estate, if the policy owner is not the Insured.
Policy Owner Rights
The policy owner may exercise all policy rights in accordance with policy terms while the policy is In Force, subject to Nationwide’s approval. These rights include, but are not limited to, the following:
• changing the policy owner, contingent owner, and beneficiary;
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• assigning, exchanging, and/or converting the policy;
• requesting transfers, policy loans, and partial surrenders or a complete surrender; and
• changing insurance coverage such as death benefit option changes, adding or removing Riders, and/or increasing or decreasing the Total Specified Amount.
These rights are explained in greater detail throughout this prospectus.
Subject to Nationwide’s approval, the policy owner may name a different policy owner or contingent owner while the policy is In Force by submitting a written request to the Service Center. Any such change request will become effective as of the date signed, however, it will not affect any payment made or action taken before the change is received and recorded by Nationwide. There may be adverse tax consequences to changing parties of the policy.
Beneficiaries
The principal right of a beneficiary is to receive the Death Benefit Proceeds if the Insured dies while the policy is In Force. While the policy is In Force, a policy owner may name more than one beneficiary, designate primary and contingent beneficiaries, change or add beneficiaries, and/or direct Nationwide to distribute the Proceeds other than as described below.
If a primary beneficiary dies before the Insured, Nationwide will pay the Death Benefit Proceeds to the surviving primary beneficiaries. Unless specified otherwise by the policy owner, Nationwide will pay multiple primary beneficiaries in equal shares. A contingent beneficiary will become the primary beneficiary if all primary beneficiaries die before the Insured and before any Proceeds become payable. A policy owner may name more than one contingent beneficiary. Unless specified otherwise by the policy owner, Nationwide will also pay multiple contingent beneficiaries in equal shares.
Requests to change or add beneficiaries must be submitted in writing to the Service Center. Nationwide may require that the policy owner send the policy for endorsement before the change is recorded. Any such change request will become effective as of the date signed, however, it will not affect any payment made or action taken before the change is received and recorded by Nationwide.
To Purchase
The policy is available for Insureds between the issue ages of 0 and 85. To purchase the policy, prospective purchasers must submit a completed application and the required initial Premium payment.
Nationwide must receive evidence of insurability that satisfies its underwriting standards (this may require a medical examination) before it will issue a policy. Nationwide can provide prospective purchasers with the details of its underwriting standards upon request. Nationwide reserves the right to reject any application for any reason permitted by law. Additionally, Nationwide reserves the right to modify its underwriting standards on a prospective basis for newly issued policies at any time.
The minimum initial Base Policy Specified Amount in most states is $50,000 for non-preferred policies and $100,000 for preferred policies. The basic distinction between the non-preferred and preferred underwriting classifications is that Nationwide expects the Insured under a preferred policy to live longer. Nationwide reserves the right to modify the minimum Base Policy Specified Amount on a prospective basis for newly issued policies at any time.
Coverage
Nationwide will issue the policy only if the underwriting process has been completed, the application is approved, and the proposed Insured is alive and in the same condition of health as described in the application. However, full insurance coverage will take effect only after the minimum initial Premium is paid. Monthly charges are deducted from the policy’s Cash Value beginning on the Policy Date.
Coverage Effective Date
Insurance coverage will begin and be In Force on the Policy Date shown on the Policy Data Page. For a change in the Base Policy Specified Amount and/or Rider Specified Amount, the effective date will be on the next monthly anniversary from the Policy Date after Nationwide approves the request. It will end upon the Insured's death, once the Proceeds are paid or when the policy matures. Coverage will also end if the policy Lapses.
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Temporary Insurance Coverage
Temporary Insurance Coverage
Temporary insurance coverage (of an amount equal to the Total Specified Amount, up to $1,000,000) may be available for no charge before full insurance coverage takes effect. Prospective purchasers must submit a temporary insurance agreement and make an initial Premium payment. The amount of this initial Premium payment will depend on the initial Total Specified Amount, choice of death benefit option, and any Riders elected. Temporary insurance coverage will remain In Force for no more than 60 days from the date of the temporary insurance agreement. If full coverage is denied, the temporary insurance coverage will terminate five days from the date Nationwide mails a termination notice (accompanied by a refund equal to the Premium payment made). If full coverage is approved, the temporary insurance coverage will terminate on the date that full insurance coverage takes effect. Allocation of the initial Net Premium will be determined by the right to examine law of the state in which the policy is issued.
To Cancel (Examination Right)
Under state law a policy owner may, for a limited time, cancel the policy and receive a refund (commonly referred to as the "free look" period). The length of the free look period depends on state law and may vary depending on whether the policy was purchased to replace another policy. The minimum "free look" period is 10 days.
In order to cancel the policy during the free look period, a policy owner must submit a written cancellation request and return the policy either to the sales representative or to the Service Center. Nationwide will honor free look cancellation requests received by the last day of the free look period (if returned by US mail, the request must be post-marked by the last day of the free look period).
Free look cancellation requests received after the close of business on the date the free look period expires will not be canceled free of charge. If the policy is canceled, Nationwide will treat the policy as if it was never issued.
Within seven days of a free look cancellation request, Nationwide will refund the amount prescribed by state law. The amount Nationwide refunds will be Cash Value or, in certain states, the greater of the initial Premium payment or the policy's Cash Value.
Allocation of Net Premium During Free Look Period
Where state law requires the return of initial Premium for free look cancellations, Nationwide will allocate initial Net Premium to the Fixed Account as instructed. Nationwide will allocate initial Net Premium allocated to the Sub-Accounts to the available money market Sub-Account until the free look period expires. At the expiration of the free look period, Nationwide will transfer the amount held in the money market Sub-Account to the requested Sub-Accounts based on the allocation instructions in effect at the time of the transfer.
Where state law requires the return of Cash Value, Nationwide will allocate all of the initial Net Premium to the designated Sub-Accounts and Fixed Account based upon the allocation instructions in effect at the time, .
Premium Payments
The policy does not require a scheduled payment of Premium to keep it In Force. The policy will remain in effect as long as the conditions that cause the policy to Lapse do not exist, see Unfavorable Investment Experience. Upon request, we will furnish Premium receipts.
Initial Premium
The amount of initial Premium will depend on the initial Total Specified Amount of insurance, the death benefit option, and any Riders elected. Generally, the higher the required initial Total Specified Amount, the higher the initial Premium will be. Similarly, because Death Benefit Option 2 and Death Benefit Option 3 provide for a potentially greater Death Benefit than Death Benefit Option 1, Death Benefit Option 2 and Death Benefit Option 3 may require a higher amount of initial Premium. Also, the age, health, and activities of the Insured will affect Nationwide’s determination of the risk of issuing the policy. In general, the greater this risk, the higher the initial Premium required.
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Whether Nationwide will issue full insurance coverage depends on the Insured meeting all underwriting requirements, payment of the initial Premium, and delivery of the policy while the Insured is alive. Nationwide will not delay delivery of the policy to increase the likelihood that the Insured is not still living. Depending on the outcome of the underwriting process, more or less Premium may be necessary to issue the policy. If Nationwide does not issue the policy, the Premium payment will be returned within two business days.
The policy owner may pay the initial Premium to the Service Center or to an authorized representative. The initial Premium payment must be at least $50, equal to the minimum monthly Premium. The initial Premium payment will not be applied to the policy until the underwriting process is complete. Allocation of initial Net Premium will be determined by the right to examine law of the state or territory where the policy is issued, see Right to Cancel (Examination Right).
Subsequent Premium payments will be allocated according to the allocation instructions in effect at the time the Premium is received.
Subsequent Premiums
This policy does not require a payment of a scheduled Premium amount to keep it In Force. It will remain In Force as long as the conditions that cause a policy to Lapse do not exist, see Lapse and Unfavorable Investment Experience. Premium payment reminder notices will be sent according to the Premium payment schedule selected by the policy owner. Additional Premium payments must be submitted to the Service Center. Each Premium payment must be at least $50. Upon request, Nationwide will furnish Premium payment receipts. Policy owners may make additional Premium payments at any time while the policy is In Force and prior to the Maturity Date, subject to the following:
• Nationwide may require satisfactory evidence of insurability before accepting any additional Premium payment that results in an increase in the policy's Net Amount At Risk.
• Nationwide will refund Premium payments that exceed the applicable premium limit established by the Code to qualify the policy as a contract for life insurance.
• Nationwide will monitor Premiums paid and will notify policy owners when the policy is in jeopardy of becoming a modified endowment contract, see Taxes.
• Nationwide may require that policy Indebtedness be repaid before accepting any additional Premium payments.
Cash Value
Nationwide will determine the Cash Value at least monthly. Cash Value will fluctuate daily and there is no guaranteed Cash Value. At the end of any given Valuation Period, the Cash Value is equal to the sum of:
• the value of the Accumulation Units allocated to the Sub-Accounts, see Valuation of Accumulation Units;
• amounts allocated to the Fixed Account, including credited interest; and
• amounts allocated to the policy loan account (only if a loan was taken), including credited interest, see Policy Loans.
Surrenders and policy charges and deductions will reduce the Cash Value of the policy. If Cash Value is a factor in calculating a benefit associated with the policy, such as the Death Benefit or a benefit associated with an elected Rider, the value of that benefit will also fluctuate, including being reduced due to surrenders and policy charge deductions. If the policy is surrendered or Lapses, the Cash Value will be reduced by the amount of any Indebtedness.
On any date during the policy year, the Cash Value equals the Cash Value on the preceding Valuation Period, plus any Net Premium applied since the previous Valuation Period, minus any policy charges, plus or minus any investment results, and minus any partial surrenders.
To Change Coverage
After the first policy year, the policy owner may request to change the Total Specified Amount. To change the Total Specified Amount, the policy owner must submit a written request to the Service Center. Changes to the Total Specified Amount will become effective on the next monthly policy anniversary after Nationwide approves the request unless the policy owner requests and Nationwide approves a different date. However, no change will take effect unless the Cash Surrender Value would be sufficient to keep the policy In Force for at least three months. Nationwide may limit the number of Total Specified Amount changes to one increase and one decrease each policy year. Changes to the Total Specified Amount will typically alter the Death Benefit.
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Increases
To increase the Total Specified Amount, the policy owner must provide satisfactory evidence of insurability. The Insured must be Attained Age 85 or younger at the time of the request. Any request to increase the Total Specified Amount must be at least $10,000. An increase in the Total Specified Amount may cause an increase in the Net Amount At Risk. Because the Cost of Insurance Charge is based on the Net Amount At Risk, and because there will be a separate cost of insurance rate for the increase, this will usually cause the policy's Cost of Insurance Charge to increase. An additional Surrender Charge schedule will also apply whenever the Base Policy Specified Amount is increased. An increase in the Base Policy Specified Amount and/or Rider Specified Amount may cause an increase to the amount of subsequent Premium payments needed to keep the policy from Lapsing, see Lapse.
Decreases
The policy owner may request to decrease the Total Specified Amount. Nationwide applies Total Specified Amount decreases to the most recent Base Policy Specified Amount and/or Rider Specified Amount increase and continues applying the decrease backwards while still maintaining the original Total Specified Amount. Nationwide will deny any request to reduce the Base Policy Specified Amount below the minimum Base Policy Specified Amount shown on the Policy Data Page. Nationwide will also deny any request that would disqualify the policy as a contract for life insurance.
To Exchange
The policy owner has an exchange right under the policy. At any time within the first 24 months of coverage from the Policy Date, the policy owner may surrender the policy and use the Cash Surrender Value to purchase a new policy on the Insured's life without evidence of insurability.
To invoke this right, the policy must be In Force and not in the Grace Period, and the policy owner must submit a written request to the Service Center on approved forms.
The new policy may be one of Nationwide’s available fixed benefit individual life insurance policies. The death benefit on the new policy may not be greater than the Death Benefit on this policy immediately prior to the exchange date. The new policy will have the same Total Specified Amount, Policy Date, and issue age. Nationwide will base Premium payments on the rates in effect for the same sex, Attained Age, and underwriting class of the Insured on the exchange date, unless otherwise required by state law. The policy owner may transfer Indebtedness to the new policy.
Exchange requests must be made on Nationwide forms and submitted to the Service Center. The policy must be In Force and not in a Grace Period. The policy owner must pay a Surrender Charge if applicable and surrender the policy to Nationwide. The policy owner must pay any money due on the exchange (any amount needed to ensure that the Cash Surrender Value of the new policy is the same as the Cash Surrender Value of this policy). The policy owner may request that any excess of the Cash Surrender Value of this policy over the Cash Surrender Value of the new policy be paid to the policy owner. The exchange may have adverse tax consequences. The new policy will take effect on the exchange date only if the Insured is alive. This policy will terminate when the new policy takes effect.
After the first 24 months of coverage, the policy owner may still surrender the policy and use the Cash Surrender Value to purchase a new policy on the Insured's life. However, issuance of the new policy will depend on the Insured providing satisfactory evidence of insurability.
To Terminate or Surrender
There are several ways that the policy can terminate. The policy will automatically terminate when the Insured dies, the policy matures, or the Grace Period ends. The policy will also terminate if it is fully surrendered.
Terminating the policy may result in adverse tax consequences.
Generally, if the policy has a Cash Surrender Value in excess of the Premiums paid, upon surrender the excess will be included in the policy owner’s income for federal tax purposes, see Taxes. The Cash Surrender Value will be reduced by outstanding Indebtedness, see Policy Loans.
To Assign
The policy owner may assign any or all rights under the policy while it is In Force, subject to Nationwide’s approval. The beneficiary's interest will be subject to the person or entity to which the policy owner assigned rights. Assignments must be in writing on a form satisfactory to Nationwide. Assignments will become effective on the date signed, unless otherwise
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specified by the policy owner, and are subject to any payments or actions taken by Nationwide before it is received and recorded at the Service Center. Nationwide is not responsible for the sufficiency or validity of any assignment. Assignments will be subject to any Indebtedness, policy liens, garnishments, court orders, and any previous assignments.
Reminders, Reports and Illustrations
Nationwide will send scheduled Premium payment reminders and transaction confirmations to policy owners upon request. Nationwide will also send semi-annual and annual statements that show:
• the Total Specified Amount;
• minimum monthly Premiums;
• Premiums paid;
• all charges since the last report;
• the current Cash Value;
• the Cash Surrender Value; and
• Indebtedness.
Confirmations of individual financial transactions, such as transfers, partial Surrenders, and loans are generated and mailed automatically. Copies may be obtained by contacting the Service Center. Alternatively, policy owners may receive information faster and reduce the amount of mail received by signing up for the eDelivery program. Go to www.nationwide.com/login to change document delivery preferences.
Nationwide will send these reminders and reports to the address provided on the application unless directed otherwise. At any time after the first policy year, policy owners may ask for an illustration of future benefits and values under the policy, see Illustration Charge.
IMPORTANT NOTICE REGARDING DELIVERY
OF SECURITY HOLDER DOCUMENTS
When multiple copies of the same disclosure document(s), such as prospectuses, supplements, proxy statements and semi-annual and annual reports are required to be mailed to multiple policy owners in the same household, Nationwide will mail only one copy of each document, unless notified otherwise by the policy owner(s). Household delivery will continue for the life of the policies. A policy owner can revoke their consent to household delivery and reinstitute individual delivery by contacting the Service Center. Individual delivery will resume within 30 days after receiving such notification.
Standard Policy Charges
Deductions for charges are taken from Premium payments and/or the Cash Value, as applicable, to compensate Nationwide for the services and benefits provided, the costs and expenses incurred, and the risks assumed. Certain expenses may be recovered utilizing more than one charge. Nationwide may generate a profit from any of the charges assessed under the policy.
Monthly charges are deducted from Cash Value beginning on the Policy Date. Charges are taken proportionally from the Sub-Accounts and the Fixed Account, except for the Mortality and Expense Risk Charge which is only deducted proportionally from the Sub-Accounts. Charges taken against allocations to the Sub-Accounts are assessed by redeeming Accumulation Units. The number of Accumulation Units redeemed is determined by dividing the dollar amount of the charge by the Accumulation Unit value for the Sub-Account. Nationwide does not deduct policy charges or Rider charges from the Cash Value attributable to the policy loan account. For a complete description of how interest is credited and charged, see Policy Loans.
Policy and Rider charges reflect costs and risks associated with issuing the policy and Rider(s). Certain charges will vary based upon the individual characteristics of the Insured. The Insured is assigned to an underwriting class based upon his/her age, sex (if not unisex classified), smoker status, type of evidence of insurability, and insurability status. The policy owner can request an illustration of specific costs and/or see the Policy’s Data Pages for information about specific charges of their policy.
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Nationwide may change policy and/or Rider charges and rates under the policy at any time. Changes in policy and/or Rider charges and rates will vary by changes in future expectations for factors including, but not limited to, Nationwide’s investment earnings, mortality experience, persistency experience, expenses, including reinsurance expenses, and taxes. Changes to policy and/or Rider charges and rates will be on a uniform basis for Insured's of the same Issue Age, sex, rate class, rate type, any Substandard Rating, Base Policy Specified Amount and Spouse Life Insurance Rider Specified Amount (if applicable) whose policies have been In Force for the same length of time. If a change in the charges or rates causes an increase to the policy and/or Rider charges, the policy's Cash Value could decrease. If a change in the charges or rates causes a decrease to the policy and/or Rider charges, the policy's Cash Value could increase. Any changes will be determined in accordance with state law. Policy and Rider charges will never exceed the maximum charges shown in the fee tables, see In Summary: Fee Tables.
Premium Load
Premium Load is comprised of the Sales Load and Premium Taxes. It will vary by policy based on the amount of Premium paid. It is deducted from each Premium payment to partially reimburse Nationwide for sales expenses and Premium taxes, and other expenses, including acquisition costs. The Premium Load also provides revenue to compensate Nationwide for assuming risks associated with the policy, and revenue that may be a profit.
Sales Load
Sales Load (as part of the Premium Load) is deducted from each Premium payment to cover sales expenses. The current Sales Load is $5 per $1,000 of Premium. The guarantee maximum Sales Load is $25 per $1,000 of Premium.
Nationwide may waive the Sales Load on the initial Premium paid into this policy as part of a Nationwide sponsored exchange program to another Nationwide policy as permitted under the securities laws and/or rules or by order of the SEC.
Premium Taxes
Premium Taxes (as part of the Premium Load) are deducted from each Premium payment to reimburse Nationwide for state and local premium taxes (at the estimated rate of 2.25%) and for federal premium taxes (at the estimated rate of 1.25%). The current (and guaranteed maximum) Premium Tax is $35 per $1,000 of Premium. This amount is not the actual amount of the tax liability Nationwide incurs. It is an estimated amount. If the actual tax liability is more or less, Nationwide will not adjust the charge retroactively.
Short-Term Trading Fees
Some mutual funds offered under the policy may assess (or reserve the right to assess) a short-term trading fee (sometimes called "redemption fee" by the mutual fund) in connection with transfers from a Sub-Account that occur within 60 days after the date of allocation to the Sub-Account.
Short-Term Trading Fees are intended to compensate the mutual fund (and policy owners with interests allocated in the Sub-Account) for the negative impact on mutual fund performance that may result from frequent, short-term trading strategies. Short-Term Trading Fees are not intended to affect the large majority of policy owners not engaged in such strategies.
Any Short-Term Trading Fee assessed by any mutual fund available in conjunction with the policy will equal 1% of the amount determined to be engaged in short-term trading. Short-Term Trading Fees will only apply to those Sub-Accounts corresponding to mutual funds that charge such fees (see the mutual fund's prospectus). Any Short-Term Trading Fees paid are retained by the mutual fund and are part of the mutual fund's assets. Policy owners are responsible for monitoring the length of time allocations are held in any particular Sub-Account. Nationwide will not provide advance notice of the assessment of any applicable Short-Term Trading Fee.
For a complete list of the Sub-Accounts that assess (or reserve the right to assess) a Short-Term Trading Fee, see Appendix A: Sub-Account Information.
If a Short-Term Trading Fee is assessed, the mutual fund will charge the separate account 1% of the amount determined to be engaged in short-term trading. The separate account will then pass the Short-Term Trading Fee on to the specific policy owner that engaged in short-term trading by deducting an amount equal to the Short-Term Trading Fee from that policy owner's Sub-Account value. All such fees will be remitted to the mutual fund; none of the fee proceeds will be retained by Nationwide or the separate account.
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When multiple allocations are made to a Sub-Account that is subject to Short-Term Trading Fees, transfers out of that Sub-Account will be considered to be made on a first in/first out (FIFO) basis for purposes of determining Short-Term Trading Fees. In other words, Accumulation Units held the longest time will be treated as being transferred first, and Accumulation Units held for the shortest time will be treated as being transferred last.
Some transactions are not subject to Short-Term Trading Fees, including:
• scheduled and systematic transfers, such as those associated with dollar cost averaging programs and asset rebalancing programs (if available);
• policy loans;
• full or partial surrenders; or
• payment of the Proceeds.
New share classes of certain currently available mutual funds may be added as investment options under the policy. These new share classes may require the assessment of Short-Term Trading Fees. When these new share classes are added, new Premiums and transfers to the Sub-Accounts in question may be limited to the new share class.
Illustration Charge
Illustration Charges are not deducted from Premium payments or Cash Value; rather they are paid at the time of an illustration request. Nationwide currently waives the Illustration Charge. The charge is intended to compensate Nationwide for the administrative costs of generating illustrations. Nationwide may elect in the future to assess an Illustration Charge. It will not exceed $25 per illustration requested.
Partial Surrender Fee
The policy owner may request a partial surrender after the first year from the Policy Date while the policy is In Force. The charge for a partial surrender compensates Nationwide for the administrative costs in calculating and generating the surrender amount. The maximum fee is the lesser of $25 or 2% of the dollar amount of the partial surrender. However, currently, there is no charge for a partial surrender. The Cash Value available for a partial surrender is subject to any Indebtedness.
Surrender Charge
A surrender charge will apply if the policy is surrendered or Lapsed. A surrender charge may apply if the Base Policy Specified Amount is decreased. There are two components of the surrender charge meant to cover policy underwriting, or the underwriting component, and sales expenses, or the sales component, including processing the application, conducting any medical exams, determining insurability and the Insured's underwriting class, and establishing policy records. The surrender charge equals the underwriting component and 26.5% of the sales component. The Surrender Charge is deducted based on the following schedule:
Policy year calculated from the Policy Date or
effective date of Base Policy Specified Amount increase: 		  Percentage of Initial
Surrender Charge
1
   100%
2
   100%
3
   90%
4
   80%
5
   70%
6
   60%
7
   50%
8
   40%
9
   30%
After 9
   0
The underwriting component is the product of the Base Policy Specified Amount, divided by 1,000, and the administrative target premium. The administrative target premium is actuarially derived, and is used to determine how much to charge per Premium payment for underwriting expenses. The administrative target premium varies by the Insured's age when the policy was issued.
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The sales expense component is the lesser of the following two amounts: The first amount is the product of the Base Policy Specified Amount, divided by 1,000, and the surrender target premium. The surrender target premium is actuarially derived, and is used to figure out how much to charge per Premium payment for sales expenses. The surrender target premium varies by: the Insured's sex; issue age; and the underwriting class. The second amount is the sum of all Premium payments made during the first year from the Policy Date.
Nationwide will calculate a separate surrender charge based on the initial Base Policy Specified Amount and each increase in the Base Policy Specified Amount, which are referred to as "segments". The surrender charge for each segment, when added together, will equal the total surrender charge. A surrender charge will also apply when the aggregate surrenders exceed 25% of a segment's Base Policy Specified Amount. Nationwide defers and accrues the charge on partial surrenders that do not exceed 25% of the segment's Base Policy Specified Amount. Once partial surrenders exceed 25%, the current and accrued charge will be assessed against the policy’s Cash Value. In determining the 25% level, Nationwide uses a last in-first out method, so that the latest segment reaches the 25% level first. Nationwide may change this practice and assess the surrender charge against all partial surrenders. The surrender charge for a decrease in the Base Policy Specified Amount will be calculated as if the policy was surrendered, though only a portion will be deducted from the policy's Cash Value. The amount of surrender charge deducted will be a product of the surrender charge and the decrease in Base Policy Specified Amount divided by the Base Policy Specified Amount before the decrease.
The surrender charge will typically be greater for a policy with: an older Insured; a male insured; a higher Specified Amount; more first year Premium; or a higher-risk Insured. If the Death Benefit option is changed and the change does not result in a different Net Amount At Risk, no surrender charge will be deducted.
The surrender charge may be waived if the policy is surrendered in exchange for a plan of permanent fixed life insurance offered by Nationwide, subject to the following:
• the exchange and waiver may be subject to new evidence of insurability and underwriting approval; and
• the following Riders have not been invoked:
❍ Premium Waiver Rider;
❍ Deduction (of Fees and Expenses Waiver Rider); or
❍ Long-Term Care Rider.
A new surrender charge may apply to the policy received in the exchange.
Cost of Insurance Charge
A Cost of Insurance Charge is deducted proportionally from Sub-Account and Fixed Account allocations on the Policy Date and on each monthly anniversary of the Policy Date. The charge is intended to cover Nationwide’s expenses associated with providing expected mortality benefits and assuming certain risks associated with the policy, and to cover other expenses, including acquisition costs, and state and federal taxes. Nationwide may also profit from this charge.
The Cost of Insurance is the product of the Net Amount At Risk and the cost of insurance rate. The cost of insurance rate will vary by the Insured's age, sex, underwriting class, any Substandard Ratings, how long the policy has been In Force, and the Base Policy Specified Amount and Spouse Life Insurance Rider Specified Amount (if applicable). The cost of insurance rate is based on Nationwide’s expectations as to future mortality and expense experience, investment earnings, persistency, and taxes.
There will be a separate cost of insurance rate for the initial Base Policy Specified Amount and any Base Policy Specified Amount increase. The cost of insurance rate(s) will never be greater than what is shown on the Policy Data Pages.
Flat Extras and Substandard Ratings
Nationwide may inquire about the occupation and activities of the Insured through the underwriting process. If the activities or occupation of the Insured cause an increased health or accident risk, it may result in the Insured receiving a Substandard Rating. If this is the case, Nationwide may add an additional component to the Cost of Insurance Charge called a "Flat Extra Charge." The Flat Extra Charge accounts for the increased risk of providing life insurance when one or more of these factors apply to the Insured. The Flat Extra Charge is a component of the total Cost of Insurance Charge, so if applied it will be deducted from Cash Value on the Policy Date and the monthly anniversary of the Policy Date. The
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monthly Flat Extra Charge is between $0.00 and $2.08 per $1,000 of the Net Amount At Risk. If a Flat Extra Charge is applied, it is shown in the Policy Data Pages. In no event will the Flat Extra Charge result in the Cost of Insurance Charge exceeding the maximum charge shown in In Summary: Fee Tables.
Nationwide will uniformly apply a change in any cost of insurance rate for Insureds of the same age, sex, underwriting class, Substandard Ratings, and Base Policy Specified Amount and Spouse Life Insurance Rider Specified Amount (if applicable), if the policies have been In Force for the same length of time. If a change in the cost of insurance rates causes an increase to a policy’s Cost of Insurance Charge, the policy's Cash Value could decrease. If a change in the cost of insurance rates causes a decrease to the policy’s Cost of Insurance Charge, the policy's Cash Value could increase.
Mortality and Expense Risk Charge
A Mortality and Expense Risk Charge is deducted monthly from the Cash Value allocated to the Sub-Accounts. The charge will vary by policy based on the amount of Cash Value allocated to the Sub-Accounts and the length of time the policy has been In Force. The charge compensates Nationwide for assuming the risk associated with mortality and expense risk costs. The mortality risk is that the Insured will not live as long as expected. The expense risk is that the costs of issuing and administering the policy will be more than expected. This charge is in addition to any charges assessed by the mutual funds underlying the Sub-Accounts.
Though the maximum guaranteed mortality and expense risk charge is higher, currently, Nationwide deductes this monthly charge according to the following schedule. During the first through 15 years from the Policy Date, the charge is $0.50 per $1,000 on the first $25,000 of Cash Value allocated to the Sub-Accounts, and $0.25 per $1,000 on $25,001 up to $250,000 of Cash Value allocated to the Sub-Accounts. This charge is $0.08 per $1,000 of Cash Value allocated to the Sub-Accounts over $250,000. Beginning in Policy year 16, this charge is: $0.50 per $1000 on the first $25,000 of the Cash Value allocated to the Sub-Accounts, and $0.08 per $1,000 of the Cash Value allocated to the Sub-Accounts over $25,000.
Administrative Charge
An administrative charge is deducted proportionally from the policy's Sub-Account and Fixed Account allocations on the Policy Date and each monthly anniversary of the Policy Date. The charge reimburses Nationwide for the costs of maintaining the policy, including accounting and record-keeping. The charge is currently $10 per month through the first year from the Policy Date and $5 per month thereafter. The maximum guaranteed charge is $10 per month through the first year from the Policy Date and $7.50 per month thereafter.
Mutual Fund Operating Expenses
In addition to the policy charges, there are also charges associated with the mutual funds in which the Sub-Accounts invest. Policy owners do not pay these charges directly, but these charges do affect the value of the assets allocated to the Sub-Accounts because these charges are reflected in the underlying mutual fund prices that Nationwide subsequently uses to value Sub-Account units. The underlying mutual funds' prospectuses contain additional information about these charges. Policy owners may contact the Service Center to receive, free of charge, copies of the prospectuses for any of the underlying mutual funds available under the policy.
Reduction of Charges
The policy may be purchased by individuals, corporations, and other entities. Nationwide may reduce or eliminate certain charges (Sales Load, Surrender Charge, administrative charges, Cost of Insurance Charge, or other charges) where the size or nature of the group allows Nationwide to realize savings with respect to sales, underwriting, administrative, or other costs. Where prohibited by state law, Nationwide will not reduce charges associated with the policy.
Nationwide determines the eligibility and the amount of any reduction by examining a number of factors, including: the number of policies owned with different insureds; the total premium Nationwide expects to receive; the total cash value of commonly owned policies; the nature of the relationship among individual insureds; the purpose for which the policies are being purchased; the length of time Nationwide expects the individual policies to be in force; and any other circumstances which are rationally related to the expected reduction in expenses.
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Nationwide may lower commissions to the selling broker-dealer and/or increase charge back of commissions paid for policies sold with reduced or eliminated charges. Policy owners should consult with a registered representative about reductions available and, where appropriate, obtain an illustration demonstrating the impact of any reduced charges on the policy.
Nationwide may change both the extent and the nature of the charge reductions. Any charge reductions will be applied in a way that is not unfairly discriminatory to policy owners and will reflect the differences in costs of services provided.
Entities considering purchasing the policy should note that in 1983, the U.S. Supreme Court held in Arizona Governing Committee v. Norris that certain annuity benefits provided by employers' retirement and fringe benefit programs may not vary between men and women on the basis of sex. The policies are based upon actuarial tables that distinguish between men and women unless the purchaser is an entity and requests non-sex distinct tables be used for underwriting. The policies generally provide different benefits to men and women of the same age. Accordingly, employers and employee organizations should consider, in consultation with legal counsel, the impact of Norris on any employment related insurance or benefit program before purchasing the policy.
A Note on Charges
During a policy's early years, the expenses Nationwide incurs in distributing and establishing the policy exceed the deductions. Nevertheless, Nationwide expects to make a profit over time because variable life insurance is intended to be a long-term financial investment. Accordingly, Nationwide has designed the policy with features and investment options that it believes support and encourage long-term ownership.
Nationwide makes many assumptions and accounts for many economic and financial factors when establishing the policy's fees and charges. The following is a discussion of some of the factors that are relevant to the policy's pricing structure.
Distribution, Promotional, and Sales Expenses
Distribution, promotional, and sales expenses include amounts paid to broker-dealer firms as commissions, expense allowances, and marketing allowances. Nationwide refers to these expenses collectively as "total compensation."
Nationwide has the ability to customize the total compensation package of its broker-dealer firms. Nationwide may vary the form of compensation paid or the amounts paid as commission, expense allowance, or marketing allowance; however, the total premium based compensation will not exceed the maximum, which is 99% of first year premiums and 3% of renewal premium after the first year. Commission may also be paid on an asset-based amount instead of a premium based amount. If an asset-based commission is paid, it will not exceed 0.45% of the non-loaned cash value per year.
Marketing allowance is based on a firm’s ability and demonstrated willingness to promote and market Nationwide’s products. How any marketing allowance is spent is determined by the firm, but generally will be used to finance firm activities that may contribute to the promotion and marketing of Nationwide’s products.
The actual amount and/or forms of total compensation paid depend on factors such as the level of premiums Nationwide receives from respective broker-dealer firms and the scope of services the firms provide. Some broker-dealer firms may not receive maximum total compensation.
Individual registered representatives typically receive a portion of the commissions/total compensation paid, depending on their arrangement with their broker-dealer firm. Policy owners should consult the registered representative to know the exact compensation arrangement associated with this policy.
Information on Underlying Mutual Fund Service Fee Payments
Nationwide's Relationship with the Underlying Mutual Funds
The underlying mutual funds incur expenses each time they sell, administer, or redeem their shares. The separate account aggregates policy owner purchase, redemption, and transfer requests and submits net or aggregated purchase/redemption requests to each underlying mutual fund daily. The separate account (not the policy owners) is the underlying mutual fund shareholder. When the separate account aggregates transactions, the underlying mutual fund does not incur the expense of processing individual transactions it would normally incur if it sold its shares directly to the public. Nationwide incurs these expenses instead.
Nationwide also incurs the distribution costs of selling the policy (as discussed above), which benefit the underlying mutual funds by providing policy owners with Sub-Account options that correspond to the underlying mutual funds.
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An investment advisor or subadvisor of an underlying mutual fund or its affiliates may provide Nationwide or its affiliates with wholesaling services that assist in the distribution of the policy and may pay Nationwide or its affiliates to participate in educational and/or marketing activities. These activities may provide the advisor or subadvisor (or their affiliates) with increased exposure to persons involved in the distribution of the policy.
Types of Payments Nationwide Receives
In light of the above, the underlying mutual funds or their affiliates make certain payments to Nationwide or its affiliates (the "payments"). The amount of these payments is typically based on a percentage of assets invested in the underlying mutual funds attributable to the policies and other variable policies Nationwide and its affiliates issue, but in some cases may involve a flat fee. These payments are made for various purposes, including payments for the services provided and expenses incurred by the Nationwide companies in promoting, marketing and administering the policies and underlying funds. Nationwide may realize a profit on the payments received.
Nationwide or its affiliates receive the following types of payments:
• Underlying mutual fund 12b-1 fees, which are deducted from underlying mutual fund assets;
• Sub-transfer agent fees or fees pursuant to administrative service plans adopted by the underlying mutual fund, which may be deducted from underlying mutual fund assets; and
• Payments by an underlying mutual fund's advisor or subadvisor (or its affiliates). Such payments may be derived, in whole or in part, from the advisory fee, which is deducted from underlying mutual fund assets and is reflected in mutual fund charges.
Furthermore, Nationwide benefits from assets invested in affiliated underlying mutual funds (i.e., Nationwide Variable Insurance Trust) because these affiliates receive compensation from the underlying mutual funds for investment advisory, administrative, transfer agency, distribution, and/or other services provided. Overall, Nationwide may receive more revenue with respect to affiliated underlying mutual funds than unaffiliated underlying mutual funds.
Nationwide took into consideration the anticipated mutual fund service fee payments from the underlying mutual funds when it determined the charges imposed under the policies (apart from fees and expenses imposed by the underlying mutual funds). Without these mutual fund service fee payments, Nationwide would have imposed higher charges under the policy.
Amount of Payments Nationwide Receives
For the year ended December 31, 2015, the underlying mutual fund service fee payments Nationwide and its affiliates received from the underlying mutual funds did not exceed 0.75% (as a percentage of the average daily net assets invested in the underlying mutual funds) offered through the policy or other variable policies that Nationwide and its affiliates issued. Payments from investment advisors or subadvisors to participate in educational and/or marketing activities have not been taken into account in this percentage.
Most underlying mutual funds or their affiliates have agreed to make payments to Nationwide or its affiliates, although the applicable percentages may vary from underlying mutual fund to underlying mutual fund and some may not make any payments at all. Because the amount of the actual payments Nationwide or its affiliates receive depends on the assets of the underlying mutual funds attributable to the policy, Nationwide and its affiliates may receive higher payments from underlying mutual funds with lower percentages (but greater assets) than from underlying mutual funds that have higher percentages (but fewer assets).
For policies owned by an employer sponsored retirement plan subject to ERISA, upon a plan trustee’s request, Nationwide will provide a best estimate of plan-specific, aggregate data regarding the amount of underlying mutual fund service fee payments Nationwide received in connection with the plan’s investments either for the previous calendar year or plan year, if the plan year is not the same as a calendar year.
Identification of Underlying Mutual Funds
Nationwide may consider several criteria when identifying the underlying mutual funds, including some or all of the following: investment objectives, investment process, investment performance, risk characteristics, investment capabilities, experience and resources, investment consistency, and fund expenses. Nationwide also considers whether the underlying mutual fund's advisor or subadvisor is an affiliate or whether the underlying mutual fund, its advisor, its subadvisor(s), or an affiliate will make mutual fund service fee payments to Nationwide or its affiliates.
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There may be underlying mutual funds with lower fees and expenses, as well as other variable policies that offer underlying mutual funds with lower fees and expenses. Policy owners should consider all of the fees and charges of the policy in relation to its features. Higher policy fees and charges and underlying mutual fund fees and expenses have a direct effect on the policy’s investment performance.
Policy Riders and Rider Charges
Riders are available for purchase to design the policy to meet the policy owner’s specific needs. The policy owner may purchase any Rider (except for both the Premium Waiver and Deduction of Fees and Expenses Waiver Riders, simultaneously). Once the policy is In Force, to add a Rider, Nationwide may require further evidence of insurability. The policy owner may only elect the Adjusted Sales Load Life Insurance Rider when purchasing the policy.
The availability, operation, and benefits of the Riders may vary by the state where the policy is issued. The policy owner will be charged for a Rider: so long as the policy remains In Force and the Rider's term has not expired; until the benefit has been paid; or the policy owner decides he or she no longer need the benefit and contacts the Service Center in writing.
Adjusted Sales Load Life Insurance Rider
The benefit associated with the Adjusted Sales Load Life Insurance Rider is the replacement of all or a portion of the up-front Premium Load (comprised of the Sales Load and Premium Taxes) with a monthly Rider charge. A policy owner may elect the number of years (from one to seven) that Premium Load would be replaced. A Premium Load would be assessed on any amount that is not replaced by the Rider.
Availability
This Rider is only available to purchase at the time of application.
Adjusted Sales Load Life Insurance Rider Charge
A monthly Adjusted Sales Load Life Insurance Rider Charge is assessed to compensate Nationwide for the sales and premium tax expenses that it will not collect in the form of Premium Load. The aggregate monthly Rider charges will be greater than the amount Nationwide would have deducted as Premium Load. The monthly charge is the product of aggregate Premiums paid since the Policy Date, the portion of Premium Load replaced (expressed as a whole percentage of Premiums paid), and the factor of 0.0001354. The Rider's charge may vary. Each Premium payment made during the selected Rider period will cause the Rider's charge to increase. How long the Rider charge is assessed will also vary. The Rider charge will be assessed for nine policy years, plus the number of years (from one to seven) that Premium Load is replaced (with a maximum Rider charge period of 15 years). However, if a policy owner stops making Premium payments during that one to seven-year period, the Rider charge will only be assessed for nine policy years, plus the number of years that Premium payments were actually made.
For example, upon election, the policy owner anticipated making Premium payments for five years. Therefore, the policy owner could expect to have the Rider charge assessed for 14 years (nine years plus five years). However, the policy owner actually makes the last Premium payment in policy year three, and does not make any additional Premium payments. Since the policy owner did not get full "use" of the Rider (the policy owner only received three years worth of Premium Load replacement), the Rider charge will only be assessed for 12 policy years (nine years plus the three years' worth of benefit received).
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If the policy terminates within the first 10 policy years, Nationwide will deduct from the Cash Surrender Value an amount to compensate it for the Premium Load waived, but not recovered, as a Rider charge. The amount deducted from the Cash Surrender Value will equal the product of the actual Premium Load replaced by the Rider (in dollars) and the percentage from the following table that corresponds to the number of years the policy has been In Force.
Policy Year   Percentage
1
   100%
2
   90%
3
   80%
4
   70%
5
   60%
6
   50%
7
   40%
8
   30%
9
   20%
10
   10%
11 and later
   0%
For example, the policy owner elected to replace the Premium Load for seven years. During the fifth policy year, the policy owner terminates the policy. During the five years the policy was In Force, $10,000 of Premium was paid. The amount of Premium Load that the Rider replaced is $400 ($40 for each $1,000 of Premium). Therefore, Nationwide will deduct $240 (60% of $400) from the policy’s Cash Surrender Value.
The Adjusted Sales Load Life Insurance Rider Charge is deducted proportionally from the Sub-Account and Fixed Account allocations. Because the Adjusted Sales Load Life Insurance Rider Charge is deducted from the policy's Cash Value, purchasing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value.
Children's Term Insurance Rider
Subject to underwriting approval, a policy owner may purchase term life insurance on the Insured's children at any time while the policy is In Force. If an insured child dies while the policy is In Force and before the Maturity Date, the policy pays a benefit to the named beneficiary. The insurance coverage for each insured child will continue (as long as the policy is In Force) until the earlier of: (1) the policy anniversary on or next following the date the Insured's child turns age 22; or (2) the policy anniversary on which the Insured would have reached Attained Age 65. Subject to certain conditions specified in the Rider, the Rider may be converted into a policy on the life of the insured child without evidence of insurability. The Rider will be effective until the Rider's term expires, until the benefit is paid, or until the Rider is terminated by written request to the Service Center.
Children’s Term Insurance Rider Charge
A monthly Children's Term Insurance Rider Charge will be deducted if this Rider is elected. The Children’s Term Insurance Rider Charge compensates Nationwide for providing term insurance on the lives of each Insured child. The Rider charge is $0.43 per $1,000 of the Children's Term Insurance Rider's Specified Amount and will be assessed as long as the policy is In Force and the Rider is in effect. The Rider charge will be the same, even if the number of children covered under the Rider changes. Nationwide may decline a request to add another child based on underwriting standards.
The Children's Term Insurance Rider Charge will be deducted proportionally from the Sub-Account and Fixed Account allocations. Because the Children’s Term Insurance Rider Charge is deducted from the policy's Cash Value, purchasing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value.
Long-Term Care Rider
The benefit associated with the Long-Term Care Rider is that, upon the Insured meeting certain eligibility requirements, the policy owner is paid a monthly benefit to assist with the expenses associated with nursing home care or home health care. Benefit payments represent an advance of a portion of the Total Specified Amount which will ultimately reduce the Cash Surrender Value and Death Benefit. In addition, if the remaining Death Benefit is less than 10% of the base Policy Specified Amount minus any Indebtedness when the Insured dies and the Rider is In Force, a residual Death Benefit of 10% of the quantity base Policy Specified Amount minus any Indebtedness will be paid. The Long-Term Care Rider has no Cash Surrender Value and no loan values.
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The maximum monthly benefit, which is determined by Nationwide at the time a request for benefits under the terms of the Rider is submitted, will be the lesser of:
(1) 2% of Long-Term Care Specified Amount in effect; or
(2) the per diem amount allowed by the Health Insurance Portability and Accountability Act times the number of days in the month.
The maximum lifetime benefit under any combination of home health care benefits and long-term care facility benefits is equal to the lesser of the Long-Term Care Specified Amount or the Total Specified Amount minus Indebtedness.
A policy owner may request to receive a monthly benefit less than the maximum subject to any minimum monthly benefit. Choosing a lesser amount could extend the length of the benefit period of the Long-Term Care Rider.
Decreases in the Total Specified Amount will result in a corresponding decrease in the Long-Term Care Specified Amount only if the Total Specified Amount is less than the Long-Term Care Specified Amount after the decrease.
State regulation of long-term care benefits will result in differences in this Rider's name, covered services, criteria for eligibility of benefit payment, cost of insurance charge factors, maximum monthly benefit amounts, minimum monthly benefit amounts, and availability of the 10% residual Death Benefit. State variations are subject to change without notice at any time. Contact the Service Center to obtain a copy of the Long-Term Care Rider applicable to the policy.
Availability
Subject to Nationwide's underwriting approval, the Long-Term Care Rider may be purchased at any time while the policy is In Force. If purchased six months or more after the Policy Date, Nationwide will require new evidence of insurability. Underwriting and approval of the Long-Term Care Rider is separate and distinct from underwriting and approval of the policy and Additional (insurance) Protection Rider. Therefore, it is possible that the underwriting risk class for the Long-Term Care Rider could differ from the policy and Additional (insurance) Protection Rider or that an Insured could qualify for the policy and Additional (insurance) Protection Rider and still be declined for the Long-Term Care Rider. There is a free look period associated with this Rider. Within 30 days of receipt of the Rider, the policy owner may return it to the sales representative who sold it, or to the Service Center. The Rider will be void and related charges will be refunded to the policy owner, see To Cancel (Examination Right).
Invoking the Rider
To invoke this Rider, the Insured must be certified by a licensed health care practitioner as: (1) having a severe cognitive impairment or (2) unable to do at least two of the following activities of daily living: bathing, continence, dressing, eating, using the toilet facilities, or transferring (moving into or out of bed, chair, or wheelchair) for a period of at least 90 days. The Insured must also be receiving qualified long-term care services specified in a plan of care submitted to Nationwide.
In addition, a 90-day waiting period, referred to as an "elimination period," must be satisfied before benefits are paid. Benefits will not be retrospectively paid for the elimination period. The elimination period can be satisfied by any combination of days of long-term care facility stay or days of home health care, as those terms are defined in the Rider. These days of care or services need not be continuous, but must be accumulated within a continuous period of 730 days. The elimination period has to be satisfied only once while the Rider is in effect. The benefit associated with the Rider may not cover all long-term care costs incurred. The benefits paid in association with the Rider are intended to be "qualified long-term care insurance" under federal tax law, and generally will not be taxable to the policy owner, see Taxes. See a tax advisor about the use of this Rider.
Terminating the Rider
This Rider will terminate when the policy matures, the Insured dies, the Policy Guard Rider is invoked, the Rider is terminated by written request to the Service Center, or the policy is terminated.
Long-Term Care Referral Service
If the Rider is elected, the Insured will have access to a national long-term care services referral network via a toll-free telephone number. Services include free consultation and tailored information to assist in planning and implementing a care plan. These services are currently provided through a third party. There is no separate additional charge for this service. This service is subject to availability and may be modified, suspended, or discontinued at any time upon 30 days written notice.
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Long-Term Care Rider Charge
A monthly charge is deducted from the Cash Value if this Rider is elected. The charge compensates Nationwide for providing long-term care benefits upon the Insured meeting certain eligibility requirements. The Rider Charge is the product of a long-term care cost of insurance rate and the lesser of the Long-Term Care Rider's Specified Amount and the policy's Net Amount At Risk. The long-term care cost of insurance rate is based on Nationwide’s expectations as to the Insured’s potential need for long-term care over time and will vary by the Insured's sex, Attained Age (in some states Issue Age), underwriting class, and any Substandard Ratings.
The Rider Charge will be deducted proportionally from the Sub-Accounts and Fixed Account allocations. Because the Rider Charge is deducted from the Cash Value, electing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value. Additionally, any benefits paid pursuant to this Rider will reduce the Cash Surrender Value and Death Benefit.
Note: The Long-Term Care Rider’s charge will be waived while Long-Term Care Rider benefits are being paid; however, all other monthly deductions will continue to be charged as long as the policy’s Cash Surrender Value is sufficient. If the policy's Cash Surrender Value is insufficient to cover all other monthly deductions while benefits are being paid under the Rider, all monthly deductions will be waived and the policy will not Lapse. This includes monthly deductions for other In Force Riders. Premium requirements for any death benefit guarantee feature of the policy or any elected Rider are not waived. Once the Long-Term Care Rider benefit is no longer being paid, e.g. the available benefit amount is exhausted or the Insured recovers, additional Premium may be necessary to prevent the policy from Lapsing. As a protection against unintentional Lapse, the policy owner may designate at least one other person to receive the notice of Lapse or termination of the policy for nonpayment of Premium, in addition to the policy owner.
Limitations
While Long-Term Care Rider benefits are being paid, the following are not permitted: loans, partial Surrenders, changes to the Total Specified Amount, changes in underwriting classification, rider additions, or changes in death benefit option.
The Rider does not provide a benefit for qualified long-term care services that result from suicide attempts, the commission of felonies, alcoholism or drug addiction, non-organic mental or psychoneurotic disorders, or war; or preexisting conditions not disclosed in the application if the need for services begins during the first six months after the Long-Term Care Rider effective date.
Claims
Written notice of a claim must be given within 30 days after the Insured begins receiving qualified long-term care services. Written proof of claim, consisting of detailed documentation that describes and confirms the Insured is chronically ill and is receiving qualified long-term care services, must be given within 90 days. If Nationwide determines that a benefit trigger has not been met, it will follow internal and external review processes consistent with applicable laws and regulations in the state of issue. The policy owner must give immediate notice when the receipt of qualified long-term care services has ceased or is no longer required. Nationwide, at its own expense, has the right to have the Insured examined as often as it may reasonably require while Long-Term Care Rider benefits are being paid.
Spouse Life Insurance Rider
The benefit associated with the Spouse Life Insurance Rider is a death benefit payable upon the death of the spouse named on the application ("Insured Spouse") to the designated beneficiary. If no beneficiary is designated, the benefit is payable to the Insured.
This Rider may be purchased at any time while the policy is In Force, subject to underwriting approval and the following age restrictions:
• the Insured must be between Attained Age 21 and 59 (this Rider is no longer available on or after the policy anniversary on which the Insured reaches Attained Age 59); and
• the Insured Spouse must be between Attained Age 18 and 69 at the time this Rider is elected.
This Rider will terminate on the earliest of: the policy anniversary on which the Insured Spouse reaches Attained Age 70, the date the Policy Guard Rider is invoked, the date the Rider is converted to a new policy, the date the policy matures, or until the Rider or policy is terminated by written request to the Service Center.
This Rider has a conversion right. The Insured Spouse may exchange this Rider's benefit for a level premium, level benefit, permanent plan of whole life insurance, subject to limitations.
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Spouse Life Insurance Rider Charge
A monthly Rider charge is deducted if this Rider is elected. The Spouse Life Insurance Rider Charge compensates Nationwide for providing term insurance on the life of the Insured Spouse. The Rider charge is the product of the Spouse Life Insurance Rider's Specified Amount and the Insured Spouse life insurance cost of insurance rate. The Insured Spouse life insurance cost of insurance rate is based on Nationwide’s expectations as to the mortality of the Insured Spouse. The Insured Spouse life insurance cost of insurance rate will vary by the Insured Spouse's sex, Attained Age, underwriting class, any Substandard Ratings, and the Spouse Life Insurance Rider's Specified Amount.
The Spouse Life Insurance Rider Charge will be deducted proportionally from the Sub-Account and Fixed Account allocations. Because the Spouse Life Insurance Rider Charge is deducted from Cash Value, purchasing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value. Decreases in the Base Policy Specified Amount may result in a corresponding decrease in the Spouse Life Insurance Rider's Specified Amount.
Accidental Death Benefit Rider
Subject to Nationwide’s underwriting approval, this Rider may be elected at any time. The Rider pays a benefit, in addition to the Death Benefit, to the named beneficiary upon the Insured's accidental death. The benefit continues until the Insured reaches Attained Age 70. The policy owner will be charged for this Rider: so long as the policy remains In Force and the Rider's term has not expired; until the benefit has been paid or until the policy owner terminates the Rider in writing at the Service Center.
The charge for this benefit is deducted from the policy's Cash Value, therefore this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value. Otherwise, the benefit of this Rider and the Death Benefit are independent of one another.
Accidental Death Benefit Rider Charge
The charge for this Rider compensates Nationwide for providing coverage in the event of the Insured's accidental death, meaning the Insured's death as a result of bodily injury caused by external, violent and accidental means from a cause other than a risk not assumed. The charge is the product of the Accidental Death Benefit Rider Specified Amount and the accidental death benefit cost of insurance rate. The accidental death benefit cost of insurance rate is based on Nationwide’s expectations as to the likelihood of the Insured's accidental death. The accidental death benefit cost of insurance rate will vary by the Insured's sex, Attained Age, underwriting class and any Substandard Ratings.
Premium Waiver Rider
Subject to Nationwide’s underwriting approval, the policy owner may purchase this Rider at any time.
Rider Benefit
The benefit associated with the Premium Waiver Rider is a monthly credit to the policy upon the Insured's total disability for six consecutive months not caused by a risk not assumed. Risks not assumed vary by state. Contact the Service Center to obtain a copy of the Premium Waiver Rider applicable to the policy.
The amount credited to the policy will be the lesser of:
• the Premium specified by the policy owner; or
• the average actual monthly Premiums paid over the last 36 months prior to the disability (or such shorter period of time that the policy has been In Force).
The monthly credit applied pursuant to the Rider may not be sufficient to keep the policy from Lapsing. Purchasing this Rider could help preserve the Death Benefit.
Benefit Duration
If the Insured is younger than age 63 at the time of the total disability, the Rider coverage continues until the Insured turns age 65. If the Insured is age 63 or older at the time of the total disability, the Rider coverage continues for two years. This Rider is effective until the Rider's term expires (unless a benefit is being paid under the Rider) or until the Rider is terminated by written request to the Service Center.
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Interaction with the Deduction (of Fees and Expenses) Waiver Rider
This Rider cannot be elected if the Deduction (of Fees and Expenses) Waiver Rider is elected. During the first three years from the Policy Date, the benefit payable under that Rider is sufficient to keep the policy from Lapsing where as the benefit payable under the Premium Waiver Rider is not sufficient to keep the policy from Lapsing, see Deduction (of Fees and Expenses) Waiver Rider.
Premium Waiver Rider Charge
A monthly Premium Waiver Rider Charge will be deducted if this Rider is elected. The Premium Waiver Rider Charge compensates Nationwide for crediting the policy with the amount of scheduled due and payable Premium payments upon the Insured's total disability for six consecutive months.
The Rider Charge is the product of the Rider's benefit (the monthly policy credit) and the premium waiver cost rate. The premium waiver cost rate is based on Nationwide’s expectations as to likelihood of the Insured's total disability for six consecutive months. The premium waiver cost rates will vary by policy based on the Insured's sex, Attained Age, underwriting class, and any Substandard Ratings.
The Premium Waiver Rider Charge will be deducted proportionally from the Sub-Account allocations and Fixed Account. Because the Premium Waiver Rider Charge is deducted from Cash Value, purchasing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value.
Change of Insured Rider
The Rider is only available in connection with policies issued to corporate entities or in other business contexts where the primary purpose is to provide protection or benefits to employees. The Rider is not available to individuals outside of these limited business purposes. The benefit associated with the Change of Insured Rider is that the policy owner may designate a new Insured at any time after the Policy Date, subject to insurability and the conditions below. If this Rider is invoked, the policy charges after the change will be based on the underwriting classification and characteristics of the new Insured.
The amount of insurance coverage after the change date will be the Total Specified Amount shown on the application to change the Insured provided that (1) the policy continues to qualify as life insurance under the Code, and (2) such Total Specified Amount equals or exceeds the minimum Total Specified Amount shown on the Policy Data Pages. Coverage of the new Insured will become effective on the change date. Coverage of the previous Insured will terminate on the day before the change date. The change date is the first monthly anniversary on or next following the date the change of Insured conditions are met. The Policy Date will not change.
Change of Insured conditions:
(1) At the time of the change, the new Insured must have the same business relationship to the policy owner as did the previous Insured.
(2) The new Insured may be required to submit satisfactory evidence of insurability.
(3) The new Insured must satisfy Nationwide’s underwriting requirements.
(4) The policy must be In Force and not be in a Grace Period at the time of the change.
(5) The new Insured must have been at least age 18 on the Policy Date.
(6) The policy owner must make written application to change the Insured to the Service Center.
Federal income tax consequences may result from a change in insured. For federal income tax purposes the substitution of a new insured is treated as an exchange of the policy for another life insurance policy. Because the new insured is not the same as the insured that was substituted, the tax free treatment for policy exchanges under Code Section 1035 may not be available because the requirement that the insured under the policy relate to the same individual would not be met; consequently, the excess Cash Surrender Value over the investment in the policy would be taxable as ordinary income. The foregoing is not comprehensive and cannot replace personalized advice provided by a competent tax professional. The policy owner should seek competent tax advice regarding the tax treatment of the policy when contemplating a change of insured.
Change of Insured Rider Charge
There is no charge associated with the Change of Insured Rider.
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Additional (insurance) Protection Rider
The benefit associated with the Additional (insurance) Protection Rider is term life insurance on the Insured, in addition to that under the base policy. The Death Benefit Proceeds attributable to the Additional (insurance) Protection Rider are payable to the beneficiary upon the Insured's death if the Additional (insurance) Protection Rider is still In Force. The Additional (insurance) Protection Rider has no cash value and no loanable value nor does it modify any cash or loan values of the base policy. Policy owners should request illustrations showing the impact of purchasing coverage with and without the Additional (insurance) Protection Rider.
Subject to Nationwide’s underwriting approval, this Rider may be purchased at any time while the policy is In Force and until the Insured reaches Attained Age 85. If purchased after the Policy Date, Nationwide will require evidence of insurability. The death benefit option for the base policy will also be the death benefit option for the Additional (insurance) Protection Rider.
The Additional (insurance) Protection Rider coverage terminates on the earliest of the following dates:
• The date the Insured dies;
• The Maturity Date of the base policy;
• The date the Rider and/or base policy Lapse; or
• The date the policy terminates for any reason.
The policy owner cannot extend the Additional (insurance) Protection Rider coverage beyond the policy's Maturity Date, see Extending Coverage Beyond the Maturity Date.
Additional (insurance) Protection Rider Impact
Cost of Insurance Charges
Electing coverage under the Additional (insurance) Protection Rider, as opposed to electing coverage only under the base policy, should lower the policy owner's overall cost of insurance. This is due in part to the broker-dealer firm receiving less overall compensation for selling a policy with the Additional (insurance) Protection Rider. It is also possible that less Premium may be required to maintain to the Death Benefit over the life of the policy or that increased Premium may be needed if the Additional (insurance) Protection Rider is not purchased.
Guaranteed Policy Continuation Provision
This provision protects the policy from Lapse under certain conditions, see Guaranteed Policy Continuation Provision. However, coverage elected under the Additional (insurance) Protection Rider is not covered by this provision beyond the fifth policy year. In comparison, the base policy may provide longer coverage, see Lapse.
Additional (insurance) Protection Rider Charge
A monthly Additional (insurance) Protection Rider Charge will be deducted if the Rider is elected. The Additional (insurance) Protection Rider Charge compensates Nationwide for providing term life insurance on the Insured.
The monthly cost of insurance charge for this Rider is determined by multiplying the Rider monthly cost of insurance rate by the Rider death benefit. The Rider death benefit will be based on the elected Death Benefit and may vary monthly. The Additional (insurance) Protection Rider cost of insurance rate is based on Nationwide’s expectation as to the Insured's mortality and expense experience. The Additional (insurance) Protection Rider cost of insurance rate will vary by the Insured's sex, Attatined Age, underwriting class, any Substandard Ratings, and the Total Specified Amount.
The Additional (insurance) Protection Rider Charge will be deducted proportionally from the Sub-Account and Fixed Account allocations. Because the Additional (insurance) Protection Rider Charge is deducted from Cash Value, purchasing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on the Cash Value.
Deduction (of Fees and Expenses) Waiver Rider
Subject to Nationwide’s underwriting approval, this Rider can be elected at any time so long as the policy is In Force and it is before the Policy Date on or following the date the Insured reaches age 59.
36

 

Rider Benefit
The benefit associated with this Rider is a waiver of the policy's monthly deductions if the Insured becomes totally disabled, as defined in the Rider, for at least six consecutive months. No benefit is available if total disability results from a risk not assumed; risks not assumed may vary by state. Contact the Service Center to obtain a copy of the Deduction (of Fees and Expenses) Waiver Rider applicable to the policy.
Disability During the First Three Years from the Policy Date
If the Insured becomes totally disabled for six consecutive months within the first three years from the Policy Date, the benefit is a credit to the policy in an amount necessary to keep the policy In Force as opposed to a waiver of the monthly deductions. The Cash Value will increase by the amount in which the minimum monthly premium exceeds the monthly deductions, just as if the minimum monthly premium had been paid.
Disability Following the First Three Years from the Policy Date
If the Insured becomes totally disabled for six consecutive months any time after the first three years from the Policy Date, the benefit is a waiver of the policy's monthly deductions. For example, if the policy owner becomes totally disabled for six consecutive months two years and eight months from the Policy Date, for the first four months, the benefit would be a credit equal to the amount necessary to keep the policy In Force. After that, the Rider's benefit becomes a waiver of the policy's monthly charges.
Following the third year from the Policy Date, the Rider's benefit alone may not be sufficient to keep the policy from Lapsing. The policy owner may need to make additional premium payments to prevent Lapse. However, while the Rider's benefit is being paid, it will cost less on a monthly basis to keep the policy In Force.
Benefit Duration
The benefit duration depends on the Insured's age when total disability begins. Before age 60, the benefit continues for as long as the Insured is totally disabled (even if that disability extends past when the Insured reaches age 65). The benefit will end if you invoke the Policy Guard Rider. Between ages 60 and 63, the benefit continues until the Insured turns age 65. From age 63, the benefit lasts only for two years.
Interaction with Premium Waiver Rider

This Rider cannot be elected if the Premium Waiver Rider is elected. During the first three years from the Policy Date, the benefit payable under this Rider appears to be the same as the benefit payable under the Premium Waiver Rider, i.e., both Riders credit amounts to the policy. However, the monthly credit under this Rider will be sufficient to keep the policy from Lapsing but only during the first three years from the Policy Date. The benefit under the Premium Waiver Rider is not guaranteed to be sufficient to keep the policy from Lapsing, see Premium Waiver Rider.
Deduction (of Fees and Expenses) Waiver Rider Charge
The charge for this Rider compensates Nationwide for the risks assumed in crediting and/or waiving policy charges during the Insured's total disability. The charge is the product of the amount of periodic charges deducted from the policy on a monthly basis (excluding the cost for this Rider) and the deduction waiver cost rate. The deduction waiver cost rate is based on Nationwide’s expectations as to the likelihood of the Insured's total disability for six consecutive months. The deduction waiver cost rate varies by the Insured's sex, Attained Age, underwriting class, and any Substandard Ratings.
The charge for this Rider is deducted proportionately from the Sub-Account and Fixed Account allocations; therefore, purchasing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value.
Policy Guard Rider
A policy owner is able to prevent the policy from Lapsing due to Indebtedness by invoking the Policy Guard Rider, which provides a guaranteed paid-up insurance benefit. The Rider is designed to enable the policy owner of a policy with a substantially depleted Cash Value, due to Indebtedness, to potentially avoid the negative tax consequences associated with Lapsing the policy.
Note: Neither the IRS nor the courts have ruled on the tax consequences of invoking the Policy Guard Rider. It is possible that the IRS or a court could assert that the Indebtedness should be treated as a distribution, all or a portion of which could be taxable when the Rider is invoked. Consult with a tax advisor regarding the risks associated with invoking this Rider.
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Availability
All policies for which the guideline premium/cash value corridor life insurance qualification test is elected will automatically receive the Policy Guard Rider (state law permitting). The Rider is dormant until specifically invoked by the policy owner, at which time a one-time charge is assessed.
This Rider is not available for policies for which the cash value accumulation life insurance qualification test was elected.
Eligibility
The policy owner is eligible to invoke the Rider upon meeting the following conditions:
• Indebtedness reaches a certain percentage of the policy's Cash Value (the percentage will range from 84% to 99% based upon the life insurance qualification test and the Insured's Attained Age);
• The Insured is Attained Age 75 or older;
• The policy is currently In Force and has been In Force for at least 15 years;
• The policy's Cash Value is at least $100,000; and
• All amounts available for partial surrender not subject to federal income tax have been taken.
The first time the policy's Indebtedness reaches the percentage that makes the policy eligible for the Rider, Nationwide will notify the policy owner of the policy's eligibility to invoke the Rider. The letter will also describe the Rider, its cost, and its guaranteed benefits. The Rider may be invoked at any time, provided that the above conditions are met.
Note: The Long-Term Care Rider, the Spouse Life Insurance Rider, and the Deduction (of Fees and Expenses) Waiver Rider will terminate or will need to be terminated by the policy owner prior to invoking the Policy Guard Rider. An election to invoke the Policy Guard Rider is irrevocable.
After Nationwide receives a request to invoke the Rider, Nationwide will adjust the policy as follows:
(1) If not already in effect, the death benefit option will be changed to Death Benefit Option 1.
(2) The Total Specified Amount will be adjusted to equal the lesser of: (1) the Total Specified Amount immediately before the Rider was invoked; or (2) the Total Specified A mount that will cause the Death Benefit to equal the Minimum Required Death Benefit immediately after the charge for the Rider is deducted. This "new" Total Specified Amount will be used to calculate the Death Benefit pursuant to The Death Benefit provision.
(3) Any non-loaned Cash Value (after deduction of the Policy Guard Rider charge) will be transferred to the Fixed Account, where it will earn the minimum guaranteed fixed interest rate of the base policy (shown on the Policy Data Page).
After the above adjustments are made, the Indebtedness will continue to grow at the policy's loan charged rate, and the amount in the policy loan account will continue to earn interest at the policy's loan crediting rate. No additional policy charges will be assessed. No further loans may be taken from the policy and no withdrawals may be taken from the policy (except for a full policy surrender). Cash Value may not be transferred out of the Fixed Account. The Death Benefit will be the greater of the Total Specified Amount or the Minimum Required Death Benefit. The policy will remain as described above for the duration of the policy.
Policy Guard Rider Charge
The Policy Guard Rider Charge is a one-time charge deducted at the time the Rider is invoked, and is assessed against the Cash Value allocated to the Sub-Accounts and the Fixed Account. The charge is intended to cover the administrative costs and to compensate Nationwide for the risks associated with the Rider's guaranteed paid-up death benefit. The charge is the product of the policy's Cash Value and an age-based factor ranging from 0.15% to 15.70% as shown in the Policy Data Pages.
If the Cash Value less Indebtedness is insufficient to satisfy the charge, the Rider cannot be invoked without repaying enough Indebtedness to cover the charge.
Invoking the Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value. Additionally, any benefits paid pursuant to this Rider will reduce the Cash Surrender Value.
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Policy Owner Services
Dollar Cost Averaging
Dollar cost averaging is an investment strategy designed to reduce the investment risks associated with market fluctuations and promote a more stable Cash Value and Death Benefit over time. A policy owner may elect to participate in the dollar cost averaging program at the time of application or at a later date by submitting an election form to the Service Center. An election to participate in the program that is submitted after application will be effective at the end of the Valuation Period coinciding with the date requested or, if that date has passed or no date is specified, at the end of the Valuation Period during which the request was received, or the end of the free look period, whichever is later.
There is no charge for dollar cost averaging and dollar cost averaging transfers do not count as transfer events. Dollar cost averaging transfers will continue to be processed until there is no more value left in the originating investment option(s) or until a policy owner instructs Nationwide to terminate the service. Policy owners may direct Nationwide to automatically transfer specific amounts from the Fixed Account and the:
• Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class I
• Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class I
• Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class I
to any other Sub-Account. Certain Sub-Accounts may or may not be available depending on when the policy was purchased, see Appendix A: Sub-Account Information for details on Sub-Account availability. Transfers from the Fixed Account must be no more than 1/30th of the Fixed Account value at the time the program is elected.
Nationwide does not assure the success of these strategies and cannot guarantee that dollar cost averaging will result in a profit or protect against a loss. A policy owner should carefully consider his or her financial ability to continue these programs over a long enough period of time to purchase Accumulation Units when their value is low, as well as when their value is high. Nationwide may modify, suspend, or discontinue these programs at any time. Nationwide will notify policy owners in writing 30 days before doing so.
Enhanced Dollar Cost Averaging
Periodically, Nationwide may offer enhanced dollar cost averaging programs. When offered, these programs will be available only at the time of application. All or a portion of the initial Premium may be applied to a program. Subsequent Premium is not eligible for inclusion in the program. Under an enhanced dollar cost averaging program, the interest rate credited to the initial Premium allocated to the Fixed Account will be greater than the interest rate credited to standard Fixed Account allocations. Enhanced dollar cost averaging programs will last for one year and Cash Value attributable to the enhanced dollar cost averaging program will be transferred from the Fixed Account to the selected Sub-Account(s) based on the following schedule:
Beginning of Month   Fraction of Cash
Value Transferred
2
   1/11
3
   1/10
4
   1/9
5
   1/8
6
   1/7
7
   1/6
8
   1/5
9
   1/4
10
   1/3
11
   1/2
12
   Remaining Amount
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Asset Rebalancing
A policy owner may elect to participate in an asset rebalancing program. Asset rebalancing involves the automatic rebalancing of the Cash Value in the chosen Sub-Accounts (up to 20) on a periodic basis. Cash Value allocated to the Fixed Account is not eligible for asset rebalancing. A policy owner can schedule asset rebalancing to occur every three, six, or 12 months on days when Nationwide prices Accumulation Units. There is no charge for asset rebalancing and it does not count as a transfer event.
A policy owner may elect to participate in an asset rebalancing program at the time of application or at a later date by submitting an election form to the Service Center. Unless elected otherwise, asset rebalancing will not affect the allocation of Premiums paid after beginning the program. Manual transfers will not automatically terminate the program. Termination of asset rebalancing will only occur as a result of specific instruction by a policy owner to do so. Nationwide may modify, suspend, or discontinue asset rebalancing programs at any time.
Automated Income Monitor
Automated Income Monitor is an optional systematic partial surrender and/or policy loan program that may be elected at any time, at no additional cost. This program is only available to policies that are not modified endowment contracts.
Automated Income Monitor programs are intended for policy owners who wish to take an income stream of scheduled payments from the Cash Value of the policy. The income stream is generated via partial surrenders until the policy cost basis is depleted, then through policy loans. Taking partial surrenders and/or policy loans may result in adverse tax consequences, will reduce policy values and therefore limit the ability to accumulate Cash Value, and may increase the likelihood the policy will Lapse. Before requesting the Automated Income Monitor program, policy owners should consult with financial and tax advisors.
At the time of application for a program, Nationwide will provide policy owners with an illustration of the proposed income stream and impacts to the Cash Value, Cash Surrender Value, and Death Benefit. Policy owners must submit this illustration along with an application when electing an Automated Income Monitor program. Programs will commence at the beginning of the next monthly anniversary after Nationwide receives the election form and illustration. On each policy anniversary thereafter Nationwide will provide an updated In Force illustration to assist policy owners in determining whether to continue, modify, or discontinue an elected program. Policy owners may request modification or termination of a program at any time by written request to the Service Center.
A policy owner’s program will be based on the policy's Cash Surrender Value at the time of election and each succeeding policy anniversary, and on the following elections:
(1) Payment type:
(a) Fixed Amount: If a policy owner elected payments of a fixed amount, the amount received will not vary with policy Investment Experience; however, the length of time the elected payment amount can be sustained will vary based on the illustration assumptions below and the policy's Investment Experience; or
(b) Fixed Duration: If a policy owner elected payments for a fixed duration, the amount received during the first year will be based on the illustration assumptions below. After the first year, the amount will vary based on the illustration assumptions and policy Investment Experience to maintain the elected duration.
(2) Illustration assumptions:
(a) an assumed variable rate of return specified by the policy owner from the available options stated in the election form;
(b) minimum Cash Surrender Value targeted by the policy owner to have remaining on the policy's Maturity Date, or other date specified by the policy owner. This dollar amount is used to calculate available income. It is not guaranteed to be the Cash Surrender Value on the specified date;
(c) a policy owner may also request a change of death benefit option, or a decrease in Base Policy Specified Amount to be effective in conjunction with commencing a program or to occur at a future date; and
(d) payment frequency: monthly; quarterly; semi-annually; or annually. Payments on a monthly basis are made by direct deposit (electronic funds transfer) only.
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Generally, higher variable rate of return assumptions, a lower target Cash Surrender Value, and Death Benefit Option 1, will result in larger projected payments or longer projected durations. However, larger payments or longer duration may increase the likelihood the policy will Lapse.
Note: Policy owners are responsible for monitoring the policy to prevent Lapse. Nationwide will provide annual In Force illustrations based on current Cash Surrender Values and the elected illustration assumptions to assist policy owners with preventing Lapse. Policy owners may request modification or termination of a program at any time by written request to the Service Center.
Automated Income Monitor programs are subject to the following additional conditions:
(1) To prevent adverse tax consequences, a policy owner can authorize Nationwide to make scheduled payments via policy loan when:
(a) the policy's cost basis is reduced to zero;
(b) a partial surrender within the first 15 policy years would be a taxable event;
(c) or to prevent the policy from becoming a MEC, see Taxes.
  Note: Partial surrenders and policy loans taken under the Automated Income Monitor program are subject to the same terms and conditions as other partial surrenders and policy loans, see Partial Surrender and Policy Loans.
(2) While a program is in effect, no Premium payment reminder notices will be sent; however, Premium payments will be accepted.
(3) Programs will terminate on the earliest of the following:
(a) Nationwide’s receipt at the Service Center of a written request to terminate participation;
(b) at the time the policy enters a Grace Period or terminates for any reason;
(c) at the time of a requested partial surrender or policy loan outside the program;
(d) upon a change of policy owner;
(e) for income based on a fixed duration, the end of the period the policy owner specified at the time of election;
(f) on any policy anniversary when the current Cash Surrender Value is less than or equal to the target Cash Surrender Value assumption the policy owner specified;
(g) at any time the scheduled partial surrender or policy loan would cause the policy to fail to qualify as life insurance under Section 7702 of the Code; or
(h) the policy's Maturity Date.
Additionally, the program will terminate when one of the following Riders is invoked or begins providing benefits: the Policy Guard Rider and the Long-Term Care Rider.
Nationwide will notify policy owners upon termination of an Automated Income Monitor program. In addition, Nationwide may modify, suspend, or discontinue Automated Income Monitor programs at any time. Nationwide will notify policy owners in writing 30 days before doing so.
Policy Loans
After the expiration of the free look period and while the policy is In Force, a policy owner may take a policy loan. A policy loan will be effective as of the date Nationwide receives the policy owner's written request at the Service Center. Nationwide reserves the right to require written requests to be submitted on current Nationwide forms. Notwithstanding anything to the contrary set forth in this prospectus, Nationwide currently accepts requests submitted via telephone, subject to dollar amount limitations and payment and other restrictions to prevent fraud. Nationwide reserves the right to discontinue acceptance of telephonic requests at any time upon written notice. Contact the Service Center for current limitations and restrictions.
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Taking a policy loan may increase the risk of Lapse and may result in adverse tax consequences. Unpaid loan interest charges accrue daily at a compounded annual interest rate and can cause the policy's Indebtedness to grow significantly. The policy owner should request an illustration demonstrating the impact of a policy loan on the policy's Cash Value, Cash Surrender Value, and Death Benefit Proceeds.
Loan Amount
The minimum loan amount is $200. At the time of a loan request, policy Indebtedness cannot exceed 90% of the Cash Value allocated to the Sub-Accounts plus 100% of the Cash Value allocated to the Fixed Account, plus 100% of the policy loan account, less any Surrender Charge. Nationwide pays the policy loan to the policy owner with assets from its general account. Nationwide then uses the policy's Cash Value as collateral for the loan as described below.
Collateral and the Policy Loan Account
As collateral for the policy loan, Nationwide deducts an amount equal to the policy loan from the policy's Cash Value. Collateral amounts are transferred from the Cash Value to the policy loan account (which is part of Nationwide's general account). Because the policy loan account does not participate in the Investment Experience of the Sub-Accounts, policy loans can permanently affect the Death Benefit Proceeds and the Cash Value of the policy, even if repaid. The policy loan account may be subject to Nationwide's creditors in the event of insolvency.
Amounts transferred from the policy's Cash Value equal to the policy loan account are deducted from the Sub-Accounts in the same proportion as the Sub-Account allocations, unless the policy owner has instructed otherwise. Nationwide will only transfer amounts from the Fixed Account if the loan amount exceeds 90% of the Cash Value allocated to the Sub-Accounts.
The policy owner will earn interest on the collateral held in the policy loan account. Interest will accrue daily at no less than the guaranteed minimum rate stated on the Policy Data Pages. The interest earned on the policy loan account may be different than the rate earned on Cash Value allocated to the Fixed Account.
Interest Charged
Nationwide charges interest against policy Indebtedness. Indebtedness is the total amount of all outstanding policy loans, including principal and compounded interest due. The maximum interest rate Nationwide may charge against Indebtedness is 3.90% per annum, see In Summary: Fee Tables for current interest charged rates. Rates may change and may vary by policy year. Policy loan interest charges may provide revenue for risk charges and profit.
If policy loan interest is not paid when due, policy Indebtedness will continue to compound at the interest rate in effect, see When Interest is Charged and Credited below. If not paid when due, Nationwide will deduct an amount equal to the unpaid interest from the policy's Cash Value and add it to the policy loan account causing the original policy loan amount (now, "Indebtedness") to increase by the amount of the unpaid interest charged. Amounts deducted from the policy's Cash Value as unpaid interest charges will be deducted from the Sub-Accounts and the Fixed Account in the same manner as a new loan.
Note: Over time, unpaid loan interest charges can cause the policy's Indebtedness to be significant. In some cases, policy Indebtedness may be significant enough to cause the policy to Lapse. In general, it is advantageous to repay Indebtedness and at a minimum, the interest charged on Indebtedness, at least annually.
Indebtedness is considered a part of the policy's Cash Value, therefore, upon a full surrender, Lapse, or maturity, the amount received in the original loan request(s), plus unpaid loan interest charged is considered "received" under the Code and may result in adverse tax consequences, see Surrender, Lapse, Maturity in Taxes.
When Interest is Charged and Credited
Interest charged against Indebtedness accrues daily. Interest earned on collateral also accrues daily. Nationwide will deduct interest charged on Indebtedness from the policy's Cash Value, and credit interest earned on collateral to the Cash Value:
• Annually, at the end of a policy year;
• At the time a new loan is requested;
• When a loan repayment is made;
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• Upon the Insured's death;
• Upon policy Lapse and/or;
• Upon a full surrender of the policy.
In most cases, the interest earned on collateral and credited to the Cash Value will be less and in some cases, significantly less, than the interest charged against the Cash Value.
Repayment
The policy owner may repay all or part of policy Indebtedness at any time while the policy is In Force. The minimum loan repayment amount, if any, is stated in the policy. The policy owner should contact the Service Center to obtain loan pay-off amounts.
Note: Interest earned on collateral is not deducted from Indebtedness to calculate loan pay off amounts. If a loan repayment is made, the policy owner's Cash Value is credited with interest earned on collateral and the amount of the loan repayment is deducted from the policy's Indebtedness.
Nationwide will treat any payments made as Premium payments, unless the policy owner specifies that the payment should be applied against the policy's Indebtedness. It may be beneficial for the policy owner to repay Indebtedness before making additional Premium payments because Premium Load charges are deducted from Premium payments but not from loan repayments.
If the policy owner makes a loan repayment, it will be applied to the Sub-Accounts and the Fixed Account in accordance with the allocation instructions in effect at the time the payment is received, unless the policy owner indicates otherwise.
Repaying Indebtedness will cause the Death Benefit and net Cash Surrender Value to increase accordingly.
Lapse
The policy is at risk of Lapsing when the Cash Surrender Value is insufficient to cover the monthly policy charges, including Rider charges, see Unfavorable Investment Experience. A policy owner can avoid Lapsing the policy by paying the amount required by the Guaranteed Policy Continuation Provision, or, if elected, by invoking the Policy Guard Rider to prevent the policy from Lapsing due to Indebtedness. Before any Lapse, there is a Grace Period during which a policy owner can take action to prevent the Lapse. Subject to certain conditions, a policy owner may reinstate a policy that has Lapsed.
Guaranteed Policy Continuation Provision
The policy provides for a Guaranteed Policy Continuation Period. The policy will not Lapse during the Guaranteed Policy Continuation Period if the policy owner pays the Policy Continuation Premium amount shown on the Policy Data Pages.
The Policy Continuation Premium required will vary by the Insured's age, sex, underwriting class, any Substandard Ratings, the Total Specified Amount and any Riders elected.
If a policy owner has made any changes to the policy after it is issued, including any policy loans or partial surrenders, increases or decreases to the Total Specified Amount, adding or terminating a Rider, and/or changing the death benefit option, the Policy Continuation Premium may change. A change will result in reissued Policy Data Pages which will show the Policy Continuation Premium. Upon request and for no charge, Nationwide will determine whether Premium payments, minus any Indebtedness and partial surrenders, are sufficient to keep the Guaranteed Policy Continuation Provision in effect.
The Guaranteed Policy Continuation Period will begin when Nationwide issues the policy and will continue for the lesser of 30 years, or the number of years until the Insured reaches Attained Age 65, from the Policy Date. For policies issued on Insured's age 55 or older on the Policy Date, the Guaranteed Policy Continuation Period is 10 years.
When the Guaranteed Policy Continuation Period ends, if the Cash Surrender Value remains insufficient to cover the monthly policy charges, the policy is at risk of Lapsing and a Grace Period will begin. There is no separate additional charge for the Guaranteed Policy Continuation Provision.
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Grace Period
If the Cash Surrender Value on any monthly anniversary date is not sufficient to cover the current monthly deductions, then a Grace Period will begin. At the beginning of a Grace Period, the policy owner will receive a notice from Nationwide that will indicate the amount of Premium that must be paid to avoid Lapsing the policy. This amount is equal to the lesser of four times the current monthly deductions, or, the Premium that will bring the guaranteed policy continuation provision back into effect. If not paid within 61 days, the policy and all Riders will Lapse.
The Grace Period will not alter the operation of the policy or the payment of Proceeds.
Reinstatement
A policy owner may reinstate a Lapsed policy by:
(1) submitting, at any time within three years after the end of the Grace Period (or longer if required by state law) and before the Maturity Date, a written request to the Service Center to reinstate the policy;
(2) providing evidence of insurability satisfactory to Nationwide;
(3) paying sufficient Premium to keep the policy In Force for three months (or less if required by state law) from the date of reinstatement, or, if the policy is in the Guaranteed Policy Continuation Period, paying the lesser of (a) and (b) where:
(a) is the amount of Premium sufficient to keep the policy In Force for three months from the date of reinstatement; and
(b) is the amount of Premium sufficient to bring the Guaranteed Policy Continuation Provision into effect;
(4) paying sufficient Premium to cover all policy charges that were due and unpaid during the Grace Period; and
(5) repaying or reinstating any Indebtedness that existed at the end of the Grace Period.
The policy owner may also reinstate coverage under certain Riders subject to satisfactory evidence of insurability.
If the policy is reinstated, the Cash Value on the date of reinstatement will be set equal to the lesser of the Surrender Charge corresponding to the policy year in which the policy is reinstated or the Cash Value at the end of the most recent Grace Period. Nationwide will add any Premiums or loan repayments that were made to reinstate the policy to the Cash Value.
The Sub-Account allocations that were in effect at the start of the Grace Period will be reinstated, unless the policy owner indicates otherwise.
Surrenders
Full Surrender
The policy may be surrendered for the Cash Surrender Value at any time while it is In Force. A surrender will be effective as of the date Nationwide receives the policy owner’s written surrender request at the Service Center. Nationwide reserves the right to require written requests to be submitted on current Nationwide forms. Notwithstanding anything to the contrary set forth in this prospectus, Nationwide currently accepts requests submitted via telephone, subject to dollar amount limitations and payment and other restrictions to prevent fraud. Nationwide reserves the right to discontinue acceptance of telephonic requests at any time upon written notice. Contact the Service Center for current limitations and restrictions. Nationwide may also require the policy owner to return the policy. Nationwide may postpone payment of that portion of the Cash Surrender Value attributable to the Fixed Account for up to six months.
Policy Restoration after a Full Surrender
Prior to the Insured's death, Nationwide will permit restoration of a surrendered policy pursuant to established procedures to meet the requirements of state insurance law regarding the replacement of life insurance (i.e., use of the Proceeds from a surrendered policy to purchase a new policy). Restored policies will be treated as if they were never surrendered for all purposes, including Investment Experience, interest, and deduction of charges, see Policy Restoration Procedure in the Statement of Additional Information.
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Partial Surrender
After the policy has been In Force for one year, the policy owner may request a partial surrender of the policy's Cash Surrender Value. During the first 10 policy years, the amount of a partial surrender cannot exceed 10% of the Cash Surrender Value as of the beginning of the policy year. Nationwide may limit partial surrenders to one per year from the Policy Date. The minimum amount of any partial surrender request is $200.
When a partial surrender is taken, Nationwide will reduce the Cash Value by the partial surrender amount. The Base Policy Specified Amount will also be reduced by the amount necessary to prevent an increase in the Net Amount At Risk. However, the reduction to the Base Policy Specified Amount will not be greater than the excess of the partial surrender amount over the preferred partial surrender amount (a preferred partial surrender is a partial surrender that occurs before the 15th policy anniversary and does not exceed 10% of the Cash Surrender Value as of the beginning of the policy year). In any event, a partial surrender will reduce the Cash Value in each Sub-Account the same proportion as the current allocations.
Partial surrenders may be subject to income tax penalties. They could also cause the policy to become a "modified endowment contract" under the Code, which could change the income tax treatment of any distribution from the policy, see Periodic Withdrawals, Non-Periodic Withdrawals, and Loans.
Notwithstanding anything to the contrary set forth in this prospectus, requests submitted via telephone will be accepted subject to dollar amount limitations and payment restrictions to prevent fraud. Nationwide reserves the right to discontinue acceptance of telephonic requests at any time upon written notice to the policy owner. Contact the Service Center for current limitations and restrictions on partial surrenders.
Reduction of Base Policy Specified Amount on a Partial Surrender
Nationwide will reduce the Cash Value of the policy by the amount of any partial surrender in the same proportion as how Cash Value is allocated among the Sub-Accounts. Nationwide will only reduce the Cash Value attributable to the Fixed Account when allocations in the Sub-Accounts are insufficient to cover the amount of the partial surrender.
Nationwide may reduce the Base Policy Specified Amount to ensure that the Net Amount At Risk does not increase due to a partial surrender. Because the policy’s Net Amount At Risk is the same before and after the reduction, a partial surrender by itself does not alter the policy's cost of insurance. The policy's charges going forward will be based on a new Base Policy Specified Amount that will change the calculation of those charges. Depending on changes in variables such as the Cash Value, these charges may increase or decrease after the reduction in Base Policy Specified Amount. However, Nationwide will not reduce the Base Policy Specified Amount when a preferred partial surrender is taken. A preferred partial surrender is a surrender taken before the 15th year from the Policy Date, the maximum aggregate annual amount of which is no more than 10% of the policy's Cash Surrender Value as of the beginning of that year.
Any reduction to the Base Policy Specified Amount will be made in the following order:
• against the most recent increase in the Base Policy Specified Amount;
• against the next most recent increases in the Base Policy Specified Amount in succession; and
• against the Base Policy Specified Amount under the original application.
The Death Benefit
Calculation of the Death Benefit
The Death Benefit will be calculated when Nationwide has received (at the Service Center) all information required to process the claim for Death Benefit Proceeds, including, but not limited to, proof that the Insured has died and any other information Nationwide may reasonably require. The Death Benefit may be subject to an adjustment if an error or misstatement was made upon application, or if the Insured dies by suicide.
While the policy is In Force, the Death Benefit will never be less than the Base Policy Specified Amount. The Death Benefit will depend on the death benefit option elected, certain Riders, and the tax test elected as discussed in greater detail below. The Death Benefit may vary with the Cash Value of the policy, which is affected by Investment Experience, Indebtedness, and any due and unpaid monthly deductions that accrued during a Grace Period.
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Death Benefit Options
Policy owners have a choice of one of three available death benefit options under the policy. If a death benefit option is not selected, Nationwide will issue the policy with Death Benefit Option 1. Not all death benefit options are available in all states.
Note: The Death Benefit will be the greater of the amount produced by the death benefit option in effect on the date of the Insured's death or the Minimum Required Death Benefit, see The Minimum Required Death Benefit.
Death Benefit Option 1: The Death Benefit will be the Total Specified Amount as of the Insured's date of death.
Death Benefit Option 2: The Death Benefit will be the Total Specified Amount plus the Cash Value as of the Insured's date of death.
Death Benefit Option 3: The Death Benefit will be the Total Specified Amount plus the accumulated premium account (which consists of all Premium payments plus interest), less any partial surrenders, as of the Insured's date of death.
The interest rate attributable to the accumulated premium account is referred to as the Death Benefit Option 3 Interest Rate and is stated on the Policy Data Page. The amount of the accumulated premium account will be no less than zero and no greater than twice the Total Specified Amount..
The Minimum Required Death Benefit
The policy has a Minimum Required Death Benefit. The Minimum Required Death Benefit is the lowest Death Benefit that will qualify the policy as life insurance under Section 7702 of the Code.
The tax tests for life insurance generally require that the policy have a significant element of life insurance and not be primarily an investment vehicle. At the time the policy is issued, the policy owner irrevocably elects one of the following tests to qualify the policy as life insurance under Section 7702 of the Code:
• the cash value accumulation test; or
• the guideline premium/cash value corridor test.
If a specific test is not elected, Nationwide will issue the policy with the guideline premium/cash value corridor test. If the cash value accumulation test is elected, the Policy Guard Rider is not available.
Cash Value Accumulation Test
The cash value accumulation test determines the Minimum Required Death Benefit by multiplying the Cash Value by a percentage calculated as described in the Code. The percentages depend upon the Insured's age, sex, and underwriting classification. Under the cash value accumulation test, there is no limit to the amount that may be paid in Premiums as long as there is sufficient Death Benefit in relation to the Cash Value at all times.
Guideline Premium/Cash Value Corridor Test
The guideline premium/cash value corridor test determines the Minimum Required Death Benefit by comparing the Death Benefit to an applicable percentage of the Cash Value. These percentages are set out in the Code, but the percentage varies only by the Attained Age of the Insured.
In deciding which test to elect for the policy, consider the following:
• The cash value accumulation test generally allows flexibility to pay more Premium, subject to Nationwide's approval of any increase in the policy's Net Amount At Risk that would result from higher Premium payments. Premium payments under the guideline premium/cash value corridor test are limited by Section 7702 of the Code.
• Generally, the guideline premium/cash value corridor test produces a higher Death Benefit in the early years of the policy while the cash value accumulation test produces a higher Death Benefit in the policy's later years.
• Monthly cost of insurance charges that vary with the amount of the Death Benefit may be greater during the years when the elected test produces a higher Death Benefit.
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Regardless of which test is elected, Nationwide will monitor compliance to ensure that the policy meets the statutory definition of life insurance under the Code. As a result, the Proceeds payable under a policy should be excludable from gross income of the beneficiary for federal income tax purposes. Nationwide may refuse additional Premium payments or return Premium payments so that the policy continues to meet the Code's definition of life insurance. Consult a qualified tax advisor on all tax matters involving the policy.
Changes in the Death Benefit Option
After the first year from the Policy Date, the policy owner may elect to change the Death Benefit option under the policy from either Option 1 to Option 2, or from Option 2 to Option 1. The policy owner may not change from or to Option 3. Nationwide will permit only one change of Death Benefit option per policy year. The effective date of a change will be the monthly anniversary date following the date the change is approved.
For any change in the Death Benefit option to become effective, the Cash Surrender Value after the change must be sufficient to keep the policy In Force for at least three months.
Upon effecting a death benefit option change, the Total Specified Amount may be changed (either increased or decreased) so that the Net Amount At Risk is the same before the change and after the change on the date of the change. Because the policy's Net Amount At Risk remains the same before and after the change, changing the death benefit option and preserving the Net Amount At Risk by itself does not alter the policy charges. The policy charges going forward will be based on the adjusted Total Specified Amount. Depending on changes in factors such as fluctuations in the policy's Cash Value, these charges may increase or decrease after the death benefit option change.
The policy owner should request an illustration demonstrating the impact of a change in the policy's death benefit option.
Nationwide will refuse a death benefit option change that would reduce the Total Specified Amount to a level where the Premium already paid would exceed any premium limitations under the Code.
Where the policy owner has selected the guideline premium/cash value corridor test, a change in death benefit option will not be permitted if it results in the total Premium paid exceeding any premium limitations under Section 7702 of the Code.
Incontestability
Nationwide will not contest payment of the Death Benefit based on the initial Total Specified Amount after the policy has been In Force during the Insured's lifetime for two years from the Policy Date, and, in some states, within two years from a reinstatement date. For any change in Total Specified Amount requiring evidence of insurability, Nationwide will not contest payment of the Death Benefit based on such increase after it has been In Force during the Insured's lifetime for two years from its effective date, and, in some states, within two years from a subsequent reinstatement date. The incontestability period in some states may be less than two years.
Suicide
If the Insured dies by suicide within two years from the Policy Date, and, in some states, within two years of a reinstatement date, Nationwide will pay no more than the sum of the Premiums paid, less any Indebtedness, and less any partial surrenders. Similarly, if the Insured dies by suicide within two years from the date an application for an increase in the Total Specified Amount was accepted by Nationwide, and, in some states, within two years from a subsequent reinstatement date, Nationwide will pay no more than the Death Benefit Proceeds associated with insurance that has been In Force for at least two years from the Policy Date, plus the Cost of Insurance Charges associated with any increase in Total Specified Amount that has been In Force for a shorter period. The suicide period in some states may be less than two years.
Proceeds Upon Maturity
If the policy is In Force on the Maturity Date, Nationwide will pay the Proceeds to the policy owner.
Normally, the Proceeds will be paid within seven days after receipt of the policy owner’s written request for payment of Proceeds at the Service Center. Nationwide may postpone payment of the Proceeds on the days that it is unable to price Accumulation Units, see Valuation of Accumulation Units. The Proceeds will equal the policy's Cash Value minus any Indebtedness. The policy is terminated once the Proceeds are paid.
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Extending Coverage Beyond the Maturity Date
Nationwide may offer to extend coverage beyond the Maturity Date to coincide with the Insured's death, at which time the Proceeds will be paid to the beneficiary. During this coverage extension, the policy owner will still be able to request partial surrenders, and if elected, the Long-Term Care Rider will remain in effect (though there will be no charge for it). The termination of some policy and/or Rider benefits will coincide with the policy's Maturity Date (unless the policy owner decides otherwise). The extension of coverage will either be for the Cash Value (as defined below) or for the Total Specified Amount (subject to the law of the state in which the policy owner lived at the time the policy was purchased), at the policy owner’s choice.
If coverage is extended beyond the policy's Maturity Date, Nationwide will endorse the policy so that:
(1) if extended for the Total Specified Amount, the policy's Total Specified Amount will be equal to the Base Policy Specified Amount and will be adjusted to what it was when the Insured reached Attained Age 70, subject to any partial surrenders;
(2) no changes to the Base Policy Specified Amount and/or Total Specified Amount will be permitted (as they are the same);
(3) no changes to the death benefit option will be allowed;
(4) no additional Premium payments will be allowed;
(5) no additional monthly periodic charges will be deducted; however, loan interest will continue to be charged on Indebtedness;
(6) 100% of the policy's Cash Value will be transferred to the Fixed Account;
(7) if coverage is extended for the policy’s Cash Value, the policy's Death Benefit will become the Cash Value, regardless of the previous death benefit option choice;
(8) if the Policy Guard Rider is in effect prior to the extension of coverage beyond the Maturity Date, the Total Specified Amount will continue to be defined as the adjusted Total Specified Amount; and
(9) if the Additional (insurance) Protection Rider is in effect, the extension of coverage beyond the Maturity Date will not apply to the Rider Specified Amount.
Note: Partial surrenders will affect the Base Policy Specified Amount (and thus Total Specified Amount) of a policy with Death Benefit Option 1 based on the Insured's Attained Age at the time the partial surrender is requested. While the Insured is between the Attained Age of 71 and 90, a partial surrender will decrease the Base Policy Specified Amount proportionately. If the Insured is Attained Age 91 or older, a partial surrender will reduce the Proceeds by an amount proportionate to the ratio of the partial surrender to the Cash Value prior to the partial surrender.
The coverage beyond the Maturity Date will not occur when the policy would fail the definition of life insurance under the Code.
The primary purpose of coverage extension is to continue the life insurance coverage, and avoid current income taxes on any earnings in excess of the cost basis if the maturity Proceeds are taken, see Surrendering the Policy; Maturity.
Assuming no Indebtedness on the Maturity Date and no partial surrenders or loans are taken after the Maturity Date, the Proceeds after the Maturity Date will equal or exceed the Proceeds at maturity. However, because the loan interest rate charged may be greater than loan interest credited, if Indebtedness exists on or after the Maturity Date, Proceeds after the Maturity Date may be less than the Proceeds at maturity.
The Payout Options
Treatment of Unclaimed Property
Every state has unclaimed property laws which generally declare life insurance policies to be abandoned after a period of inactivity of three to five years from the policy Maturity Date or the date Nationwide becomes informed that a Death Benefit is due and payable. For example, if the payment of a Death Benefit has been triggered, but, if after a thorough search, Nationwide is still unable to locate the beneficiary of the Death Benefit, or the beneficiary does not come forward to claim the Death Benefit in a timely manner, the Death Benefit will be surrendered and placed in a non-interest bearing account. While in the non-interest bearing account, Nationwide will continue to perform due diligence required by state
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law. Once the state mandated period has expired, Nationwide will escheat the Death Benefit to the abandoned property division or unclaimed property office of the state in which the beneficiary or the policy owner last resided, as shown on Nationwide’s books and records, or to Ohio, Nationwide’s state of domicile. If a claim is subsequently made, the state is obligated to pay any such amount (without interest) to the designated recipient upon presentation of proper documentation.
To prevent escheatment, it is important to update beneficiary designations - including complete names, complete addresses, phone numbers, and social security numbers - as they change. Such updates should be sent to the Service Center.
Policy Settlement Options
Proceeds (Death Benefit, maturity Proceeds, or Cash Surrender Value) may be paid out in a lump sum, or in another form that is elected at application.
At any time before the Proceeds become payable, a policy owner may request to change the payout option by writing to the Service Center.
If more than one payout option is elected, at least $2,000 must be apportioned to each option and each payment (made at the specified interval) must be at least $20. The settlement options below are based on predetermined fixed payments.
If the policy owner does not make an election as to the form of the Proceeds, upon the Insured's death, the beneficiary may make the election. Changing the beneficiary of the policy will revoke the payout option(s) in effect at that time. Proceeds are neither assignable nor subject to claims of creditors or legal process. If the beneficiary does not make an election, Nationwide will pay the Proceeds in a lump sum.
Normally, Nationwide will make a lump sum payment of the Proceeds within seven days after the written request for payment is received at the Service Center. However, Nationwide may postpone payment of the Proceeds from the Fixed Account and/or on the days that it is unable to price Sub-Account Accumulation Units, see Valuation of Accumulation Units. Proceeds are paid from Nationwide’s general account. For payout options other than lump sum, Nationwide will issue a settlement contract in exchange for the policy.
Note that for the remainder of Payment of Policy Proceeds provision, "payee" means the person(s) entitled to the Proceeds.
Interest Income Option
If the Interest Income Option is elected, Nationwide retains the Proceeds and credits the Proceeds with interest at an annually determined rate of at least 2.5% per annum, compounded annually. Nationwide will determine annually whether any interest in excess of 2.5% will be credited. The interest can be credited at the end of 12-, six, three, or one month intervals.
At any time, the policy owner can withdraw any remaining Proceeds and accumulated interest by submitting a written request to the Service Center. Upon the payee’s death, the remaining Proceeds and accumulated interest will be paid to the payee’s estate.
Income for a Fixed Period Option
If the Income for a Fixed Period Option is elected, Nationwide retains the Proceeds and makes payments to the payee at specified intervals over a certain number of years, not to exceed 30. Each payment will consist of a portion of the Proceeds plus interest at an annually determined rate of at least 2.5% per annum, compounded annually. Nationwide will determine annually if any interest in excess of 2.5% will be credited. The payments can be paid at the beginning of 12-, six, three, or one month intervals.
At any time, the payee may withdraw any remaining Proceeds and accumulated interest by submitting a written request to the Service Center. Upon the payee’s death, the remaining Proceeds and accumulated interest will be paid to the payee’s estate.
Life Income with Payments Guaranteed Option
If the Life Income with Payments Guaranteed Option is elected, Nationwide will retain the Proceeds and make payments to the payee at specified intervals for a guaranteed period (10, 15, or 20 years) and, if the payee is still living at the end of the guaranteed period, the payments will continue for the rest of the payee’s life. During the guaranteed period,
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Nationwide will pay interest on the remaining Proceeds at a rate of at least 2.5% per annum, compounded annually. Nationwide will determine annually if any interest in excess of 2.5% will be paid. The Proceeds can be paid at the beginning of 12-, six, three, or one month intervals.
Once payments begin under this option, withdrawals are not permitted. If a payee dies before the guaranteed period has elapsed, Nationwide will make the remaining payments to the payee’s estate. If the payee dies after the guaranteed period has elapsed, no further payments will be made.
Fixed Income for Varying Periods Option
If the Fixed Income for Varying Periods Option is elected, Nationwide will retain the Proceeds and pay a fixed amount at specified intervals until the Proceeds and accumulated interest have been exhausted. The total amount payable each year may not be less than 5% of the original Proceeds. Nationwide will credit interest on the remaining Proceeds at a rate of at least 2.5% per annum, compounded annually. Nationwide will determine annually if any interest in excess of 2.5% will be credited. The Proceeds can be paid at the beginning of 12-, six, three, or one month intervals.
At any time, the payee may withdraw any remaining Proceeds and accumulated interest by submitting a written request to the Service Center. Upon the payee’s death, Nationwide will pay the remaining Proceeds and accumulated interest to the payee’s estate.
Joint and Survivor Life Option
If the Joint and Survivor Life Option was elected, Nationwide will retain the Proceeds and make equal payments to the payees at specified intervals for the life of the last surviving payee. The Proceeds can be paid at the beginning of 12-, six, three, or one month intervals.
Once payments begin under this option, withdrawals are not permitted. Payments will cease upon the death of the last surviving payee. Nationwide will make no payments to the last surviving payee's estate. It is possible that only one payment will be made under this option if both payees die prior to the first payment.
Alternate Life Income Option
If the Alternate Life Income Option is elected, Nationwide will use the Proceeds to purchase an annuity with the payee as annuitant. The amount payable will be 102% of the current individual immediate annuity purchase rate on the date of the individual immediate annuity is elected. The Proceeds can be paid at the end of 12-, six, three, or one month intervals. Since the payments are based on the payee’s lifetime, the payee may not withdraw any amount designated to this option once payments begin. Payments will cease upon the payee’s death. No payments will be made to the payee’s estate.
Taxes
The tax treatment of life insurance policies under the Internal Revenue Code ("Code") is complex and the tax treatment of the policy will depend on the policy owner's particular circumstances. The policy owner should seek competent tax advice regarding the tax treatment of the policy given their situation. The following discussion provides a general overview of the Code's provisions relating to certain common life insurance policy transactions. Some of the items discussed below may not be applicable to the life insurance policy described herein. It is not and cannot be comprehensive, and it cannot replace personalized advice provided by a competent tax professional.
Types of Taxes
Federal Income Tax
Generally, the United States assesses a tax on income, which is broadly defined to include all items of income from whatever source, unless specifically excluded. Certain expenditures can reduce income for tax purposes and correspondingly the amount of tax payable. These expenditures are called deductions. While there are many more income tax concepts under the Code, the concepts of "income" and "deduction" are the most fundamental to the federal income tax treatment that pertains to this policy.
Federal Transfer Tax
In addition to the income tax, the United States also assesses a tax on some or all of the value of certain transfers of property made by gift while a person is living (the federal gift tax), and by bequest or otherwise at the time of a person's death (the federal estate tax).
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The federal gift tax is imposed on the value of the property (including cash) transferred by gift. Each donor is allowed to exclude an amount per recipient from the value of present interest gifts. In addition, each donor is allowed a credit against the tax on five million dollars in lifetime gifts (calculated after taking into account the applicable exclusion amount). An unlimited marital deduction may be available for certain lifetime gifts made by the donor to the donor's spouse.
The American Taxpayer Relief Act ("ATRA") enacted on January 1, 2013, permanently provides for a maximum federal estate tax rate of 40% with an annually inflation adjusted $5 million exemption for estates of persons dying after December 31, 2012.
Under current law, an unlimited marital deduction is available for federal estate tax purposes for certain amounts that pass to the surviving spouse.
If the transfer is made to someone two or more generations younger than the transferor, the transfer may be subject to the federal generation-skipping transfer tax ("GSTT"). The GSTT provisions generally apply to the same transfers that are subject to estate or gift taxes. The GSTT is imposed at a flat rate equal to the maximum estate tax rate subject to any applicable exemptions. As with the estate tax, ATRA permanently provides for a GSTT tax rate of 40% with an annually inflation adjusted $5 million exemption.
State and Local Taxes
State and local estate, inheritance, income and other tax consequences of ownership or receipt of policy proceeds depend on the circumstances of each policy owner or beneficiary. While these taxes may or may not be substantial in every policy owner's case, state by state differences of these taxes preclude a useful description of them in this prospectus.
Buying the Policy
Federal Income Tax
Generally, the Code treats life insurance premiums as a nondeductible expense for income tax purposes.
Federal Transfer Tax
Generally, the Code treats the payment of premiums on a life insurance policy as a gift when the premium payment benefits someone else (such as when premium payments are paid by someone other than the policy owner). Gifts are not generally included in the recipient's taxable income. If the policy owner (whether or not they are the insured) transfers ownership of the policy to another person, the transfer may be subject to a federal gift tax.
Investment Gain in the Policy
The income tax treatment of changes in the policy's cash value depends on whether the policy is "life insurance" under the Code. If the policy meets the definition of life insurance, then the increase in the policy's cash value is not included in the policy owner's taxable income for federal income tax purposes unless it is distributed to the policy owner before the death of the insured.
To qualify as life insurance, the policy must meet certain tests set out in Section 7702 of the Code. Nationwide will monitor the policy's compliance with Code Section 7702, and take whatever steps are necessary to stay in compliance.
Diversification
In addition to meeting the tests required under Section 7702, Section 817(h) of the Code requires that the investments of the separate account be adequately diversified. Regulations under Code Section 817(h) provide that a variable life policy that fails to satisfy the diversification standards will not be treated as life insurance unless such failure was inadvertent, is corrected, and the policy owner or the issuer pays an amount to the IRS. If the failure to diversify is not corrected, the income and gain in the policy would be treated as taxable ordinary income for federal income tax purposes.
Nationwide will also monitor compliance with Code Section 817(h) and the regulations applicable to Section 817(h) and, to the extent necessary, take appropriate action to remain in compliance.
Representatives of the IRS have informally suggested, from time to time, that the number of underlying investment options available or the number of transfer opportunities available under a variable insurance product may be relevant in determining whether the product qualifies for the desired tax treatment. In 2003, the IRS issued formal guidance, in Revenue Ruling 2003-91, that indicates that if the number of underlying investment options available in a variable insurance product does not exceed 20, the number of underlying investment options alone would not cause the policy to
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not qualify for the desired tax treatment. The IRS has also indicated that exceeding 20 underlying investment options may be considered a factor, along with other factors including the number of transfer opportunities available under the policy, when determining whether the policy qualifies for the desired tax treatment. The revenue ruling did not indicate the number of underlying investment options, if any, that would cause the policy to not provide the desired tax treatment. Should the U.S. Secretary of the Treasury issue additional rules or regulations limiting: the number of underlying investment options, transfers between underlying investment options, exchanges of underlying investment options or changes in the investment objectives of underlying investment options such that the policy would no longer qualify as life insurance under Section 7702 of the Code, Nationwide will take whatever steps are available to remain in compliance.
Based on the above, the policy should be treated as life insurance for federal income tax purposes.
Periodic Withdrawals, Non-Periodic Withdrawals and Loans
The tax treatment described in this section applies to withdrawals and loans, premiums Nationwide accepts but then returns to meet the Code's definition of life insurance, and amounts used to pay the premium on any rider to the policy.
The income tax treatment of distributions of cash from the policy depends on whether the policy is also a "modified endowment contract" under the Code. Generally, the income tax consequences of owning a life insurance policy that is not a modified endowment contract are more advantageous than the tax consequences of owning a life insurance policy that is a modified endowment contract.
The policies offered by this prospectus may or may not be issued as modified endowment contracts. If a policy is issued as a modified endowment contract, it will always be a modified endowment contract; a policy that is not issued as a modified endowment contract can become a modified endowment contract due to subsequent transactions with respect to the policy, such as payment of additional premiums. If the policy is not issued as a modified endowment contract, Nationwide will monitor it and advise the policy owner if the payment of a premium, or other transaction, may cause the policy to become a modified endowment contract. It is only with the policy owner's written authorization that Nationwide will permit the policy to become a modified endowment policy. Otherwise, Nationwide will reject the requested action or refund any Premium paid in excess of the modified endowment limits.
Depending on the policy owner's circumstances, the use of the cash value of the policy to pay for the cost of any rider added to the base policy, could be treated as a distribution, and would be subject to the rules described below. Policy owners should seek competent tax advice regarding the tax treatment of the addition of any rider to the policy, based on the policy owner's individual facts and circumstances.
In general, interest the policy owner pays on a loan from a policy will not be deductable. Also, if a loan from a policy that is not a modified endowment contract is outstanding when the policy is canceled or lapses, the amount of the outstanding indebtedness will be added to the amount distributed and will be taxed accordingly. Before taking a policy loan, the policy owner should consult a tax advisor as to the tax consequences.
When the Policy is Life Insurance that is a Modified Endowment Contract
Section 7702A of the Code defines modified endowment contracts as those life insurance policies issued or materially changed on or after June 21, 1988 on which the total premiums paid during the first 7 years exceed the amount that would have been paid if the policy provided for paid up benefits after 7 level annual premiums. Under certain conditions, a policy may become a modified endowment contract, or may become subject to a new 7 year testing period as a result of a "material change" or a "reduction in benefits" as defined by Section 7702A(c) of the Code.
All modified endowment contracts issued to the same owner by the same company during a single calendar year are required to be aggregated and treated as a single policy for purposes of determining the amount that is includible in income when a distribution occurs.
The Code provides special rules for the taxation of surrenders, partial surrenders, loans, collateral assignments, and other pre-death distributions from modified endowment contracts. Under these special rules, such transactions are taxable to the extent that at the time of the transaction the cash value of the policy exceeds the 'investment in the contract' (generally, the net Premiums paid for the policy). In addition, a 10% tax penalty generally applies to the taxable portion of such distributions unless the policy owner is over age 59½ or disabled, or the distribution is part of a series of substantially equal periodic payments as defined in the Code.
When the Policy is Life Insurance that is NOT a Modified Endowment Contract
If the policy is not issued as a modified endowment contract, Nationwide will monitor premiums paid and will notify the policy owner when the policy is in jeopardy of becoming a modified endowment contract.
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Distributions from life insurance policies that are not modified endowment contracts generally are treated as being first from the investment in the contract, and then from the income in the policy. Because premium payments are generally nondeductible, distributions not in excess of investment in the contract are generally not includible in income; instead, they reduce the owner's investment in the contract.
However, if a policy is not a modified endowment contract, a cash distribution during the first 15 years after a policy is issued that causes a reduction in death benefits may still be fully or partially taxable to the policy owner pursuant to Section 7702(f)(7) of the Code. The policy owner should carefully consider this potential tax ramification and seek further information before requesting any changes in the terms of the policy.
In addition, unlike a modified endowment contract, a loan from a life insurance policy that is not a modified endowment contract is not taxable when made, although it can be treated as a distribution if it is forgiven during the owner's lifetime. Distributions from policies that are not modified endowment contracts are not subject to the 10% early distribution penalty tax.
Surrender, Lapse, Maturity
A full surrender, cancellation of the policy by lapse, or the maturity of the policy on its maturity date may have adverse income tax consequences. If the amount received (or are deemed received upon maturity) plus total policy indebtedness exceeds the investment in the policy, then the excess generally will be treated as taxable ordinary income, regardless of whether or not the policy is a modified endowment contract. In certain circumstances, for example when the policy indebtedness is very large, the amount of tax could exceed the amount distributed to the policy owner at surrender.
The purpose of the maturity date extension feature is to permit the policy to continue to be treated as life insurance for tax purposes. Although Nationwide believes that the extension provision will cause the policy to continue to be treated as life insurance after the initially scheduled maturity date, that result is not certain due to a lack of specificity in the guidance on the issue. The policy owner should consult with a qualified tax advisor regarding the possible adverse tax consequences that could result from an extension of the scheduled maturity date.
Additional Medicare Tax
Effective January 1, 2013, Section 1411 of the Code imposes a surtax of 3.8% on certain net investment income received by individuals and certain trusts and estates. The surtax is imposed on the lesser of (a) net investment income or (b) the excess of the modified adjusted gross income over a threshold amount. For individuals, the threshold amount is $250,000 (married filing jointly); $125,000 (married filing separately); or $200,000 (single, head of household with qualifying person, or qualifying widow(er) with dependent child). The threshold for an estate or trust that is subject to the surtax is generally equal to the dollar amount at which the highest tax bracket under section 1(e) begins for the taxable year; for 2016, that amount is $12,400.
Modified adjusted gross income is equal to adjusted gross income with several modifications; the policy owner should consult with a tax advisor regarding how to determine the policy owner's modified adjusted gross income for purposes of determining the applicability of the surtax.
Net investment income includes, but is not limited to, interest, dividends, capital gains, rent and royalty income, and income from nonqualified annuities; and may include taxable distributions from, and gain from the sale or surrenders of, life insurance policies.
Net investment income does not include, among other things, distributions from certain qualified plans (such as IRAs, Roth IRAs, and plans described in Internal Revenue Code Sections 401(a), 401(k), 403(a), 403(b) or 457(b)); however, such distributions, to the extent that they are includible in income for federal income tax purposes are includible in modified adjusted gross income.
Sale of a Life Insurance Policy
If a life insurance policy is sold for a gain, all or a portion of the gain will be treated as ordinary income. In Revenue Ruling 2009-13, the IRS concluded that the amount of gain realized from the sale of a life insurance policy is equal to the amount received (which can include relief from, or assumption of debt) over the owner's basis in the policy. The portion of the gain that is equal to the excess of the cash surrender value over the investment in the policy would be treated as ordinary income; any additional gain would be short or long-term capital gain, depending on the holding period. The ruling also
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concluded that the owner's basis in the policy that is used to calculate the gain resulting from the sale of the life insurance policy is the investment in the policy reduced by the cost of insurance previously paid out of the cash value. Consequently, a sale may result in more gain than a surrender for the same amount.
Exchanging the Policy for Another Life Insurance Policy
Generally, policy owners will be taxed on amounts received in excess of premium payments when the policy is surrendered in full. If, however, the policy is exchanged for another life insurance policy, modified endowment contract, or annuity contract, the transaction will not be taxed on the excess amount if the exchange meets the requirements of Code Section 1035. To meet Section 1035 requirements, the insured named in the policy must be the insured for the new policy. Generally, the new policy or contract will be treated as having the same issue date and tax basis as the old policy or contract.
If the policy or contract is subject to a policy indebtedness that is discharged as part of the exchange transaction, the discharge of the indebtedness may be taxable. Policy owners should consult with their personal tax or legal advisors in structuring any policy exchange transaction.
Federal Income Taxation of Death Benefits
Death of Insured
The death benefit is generally excludable from the beneficiary's gross income under the Internal Revenue Code by reason of the insured’s death. However, if the policy had been transferred to a new policy owner for valuable consideration (e.g., through a sale of the policy), a portion of the death benefit may be includible in the beneficiary's gross income when it is paid.
The payout option selected by the policy's beneficiary may affect how the payments received by the beneficiary are taxed. Under the various payout options, the amount payable to the beneficiary may include earnings on the death benefit, which will be taxable as ordinary income. For example, if the beneficiary elects to receive interest only, then the entire amount of the interest payment will be taxable to the beneficiary; if a periodic payment (whether for a fixed period or for life) is selected, then a portion of each payment will be taxable interest income, and a portion will be treated as the nontaxable payment of the death benefit. The policy's beneficiaries should consult with their tax advisors to determine the tax consequences of electing a payout option, based on their individual circumstances.
Accelerated Death Benefits
The death benefit under a life insurance policy may be distributed at a time earlier than the death of the insured, and all or a portion of the distribution may still be excludable from gross income under Section 101 of the Code.
Terminal Illness
The death benefit under a life insurance policy may be distributed when the insured is considered a "terminally ill individual" as that term is defined under the Internal Revenue Code. In this situation the distribution is treated as paid by reason of death of the insured and will generally be excluded from the beneficiary’s gross income, see Federal Income Taxation of Death Benefits.
Long-Term Care
A long-term care rider issued with a life insurance policy or one that is subsequently added to the policy may allow for distribution of all or a portion of the death benefit upon the insured being certified as a "chronically ill individual" as that term is defined under the Internal Revenue Code. If the long-term care rider meets the requirements of a qualified long-term care insurance contract as specified under Section 7702B of the Internal Revenue Code, then a distribution of all or a portion of the death benefit will generally be excluded from income under the Code. The long-term care rider issued with this life insurance policy is intended to be a qualified long-term care insurance contract under Section 7702B of the Internal Revenue Code.
The amount of the long-term care benefit that is excludable from gross income is limited by the Internal Revenue Code, on an annual basis, to the greater of the HIPAA per diem amount or the amount of actual qualifying long-term care expenses incurred, reduced by any reimbursements received for qualifying long-term care services provided for the insured. While the long-term care rider issued with this life insurance policy pays a long-term care benefit that is limited to the HIPAA per diem amount (an indemnity contract), Nationwide cannot guarantee that the long-term care benefit will be treated as tax free. If multiple indemnity contracts are owned on a single insured, then the payments received from these contracts are
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aggregated for purposes of determining whether the amounts received exceed the greater of the HIPAA per diem amount or the amount of actual qualifying long-term care expenses incurred. Therefore it is highly recommended that the policy owner consult their tax advisor when contemplating the amount of long-term care benefit to be taken under the long-term care rider.
The long-term care rider may pay benefits if the insured is receiving qualified long-term care services outside of the United States. It is the responsibility of the Policy Owner to determine if collecting benefits while outside the United States will subject the Policy Owner to taxation in the United States, the country of residence, or any other foreign jurisdiction.
Payment of long-term care rider charges will be made through deductions from the cash value of the life policy. These deductions from the cash value are considered to be distributions from the life policy for federal tax purposes. The federal tax treatment of such distributions are governed by section 72(e)(11) which provides that the deductions will reduce the investment in the contract and will not be included in income even if the policy owner has recovered all of their investment in the contract.
The payment of long-term care benefits made to the policy owner of the long-term care rider will be reported on a Form 1099-LTC. In addition, deductions from the cash value of the life insurance policy to pay for long-term care rider charges during the calendar year will be reported on Form 1099-R.
This discussion of the tax treatment of the long-term care rider is not meant to be all inclusive. Due to the complexity of these rules, and because they are affected by the policy owner's facts and circumstances, the policy owner should consult with legal and tax counsel and other competent advisors regarding these matters.
Federal Transfer (Estate, Gift and Generation Skipping Transfer) Taxes
When the insured dies, the death benefit will generally be included in the insured's federal gross estate if: (1) the proceeds were payable to or for the benefit of the insured's estate; or (2) the insured held any "incident of ownership" in the policy at death or at any time within three years of death. An incident of ownership, in general, is any right in the policy that may be exercised by the policy owner, such as the right to borrow on the policy or the right to name a new beneficiary.
If the beneficiary is two or more generations younger than the insured, the death benefit may be subject to the GSTT. Pursuant to regulations issued by the U.S. Secretary of the Treasury, Nationwide may be required to withhold a portion of the proceeds and pay them directly to the IRS as the GSTT payment.
If the policy owner is not the insured or a beneficiary, payment of the death benefit to the beneficiary will be treated as a gift to the beneficiary from the policy owner.
Special Considerations for Corporations
Special federal income tax considerations for life insurance policies owned by employers
Sections 101(j) and 6039I of the Code provide special rules regarding the tax treatment of death benefits that are payable under life insurance policies owned by the employer of the insured. These provisions are generally effective for life insurance policies issued after August 17, 2006. If a life insurance policy was issued on or before August 17, 2006, but materially modified after that date, it will be treated as having been issued after that date for purposes of Section 101(j). Policies issued after August 17, 2006 pursuant to a Section 1035 exchange generally are excluded from the operation of these provisions, provided that the policy received in the exchange does not have a material increase in death benefit or other material change with respect to the old policy.
Section 101(j) provides the general rule that, with respect to an employer-owned life insurance policy, the amount of death benefit payable directly or indirectly to the employer that may be excluded from income cannot exceed the sum of premiums and other payments paid by the policy owner for the policy. Consequently, under this general rule, the entire death benefit, less the cost to the policy owner, will be taxable. Although Section 101(j) is not clear, if lifetime distributions from the policy are made as a nontaxable return of premium, it appears that the reduction would apply for Section 101(j) purposes and reduce the amount of premiums for this purpose.
There are two exceptions to this general rule of taxability, provided that statutory notice, consent, and information requirements are satisfied. First, if proper notice and consent are given and received, and if the insured was an employee at any time during the 12-month period before the insured's death, then Section 101(j) would not apply.
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Second, if proper notice and consent are given and received and, at the time that the policy is issued, the insured is either a director, a "highly compensated employee" (within the meaning of Section 414(q) of the Code without regard to paragraph (1)(B)(ii) thereof), or a "highly compensated individual" (within the meaning of Section 105(h)(5), except "35%" is substituted for "25%" in paragraph (C) thereof), then Section 101(j) would not apply.
Code Section 6039I requires any policy owner of an employer-owned policy to file an annual return showing (a) the number of employees of the policy owner, (b) the number of such employees insured under employee-owned policies at the end of the year, (c) the total amount of insurance in force with respect to those policies at the end of the year, (d) the name, address, taxpayer identification number and type of business of the policy owner, and (e) that the policy owner has a valid consent for each insured (or, if all consents are not obtained, the number of insured employees for whom such consent was not obtained). Proper recordkeeping is also required by this section.
It is the employer's responsibility to (a) provide the proper notice to each insured, (b) obtain the proper consent from each insured, (c) inform each insured in writing that the employer-owner will be the beneficiary of any proceeds payable upon the death of the insured, and (d) file the annual return required by Section 6039I. If the employer-owner fails to provide the necessary notice and information, or fails to obtain the necessary consent, the death benefit will be taxable when received. If the employer-owner fails to file a properly completed return under Section 6039I, a penalty may apply.
Limitation on interest and other business deductions
Section 264 of the Code imposes a number of limitations on the interest and other business deductions that may otherwise be available to businesses that own life insurance policies. In addition, the premium paid by a business for a life insurance policy is not deductible as a business expense or otherwise if the business is directly or indirectly a beneficiary of the policy.
For purposes of the alternative minimum tax ("AMT") that may be imposed on corporations, the death benefit from a life insurance policy, even though excluded from gross income for normal tax purposes, is included in "adjusted current earnings" for AMT purposes. In addition, although increases to the cash surrender value of a life insurance policy are generally excluded from gross income for normal income tax purposes, such increases are included in adjusted current earnings for income tax purposes.
Due to the complexity of these rules, and because they are affected by the policy owner's facts and circumstances, the policy owner should consult with legal and tax counsel and other competent advisors regarding these matters.
Federal appellate and trial courts have examined the economic substance of transactions involving life insurance policies owned by corporations. These cases involved relatively large loans against the policy's cash value as well as tax deductions for the interest paid on the policy loans by the corporate policy owner to the insurance company. Under the particular factual circumstances in these cases, the courts determined that the corporate policy owners should not have taken tax deductions for the interest paid. Accordingly, the court determined that the corporations should have paid taxes on the amounts deducted. Corporations should consider, in consultation with tax advisors familiar with these matters, the impact of these decisions on the corporation's intended use of the policy.
Business Uses of the Policy
The life insurance policy may be used in various arrangements, including nonqualified deferred compensation or salary continuance plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans, and others. The tax consequences of these plans may vary depending on the particular facts and circumstances of each individual arrangement. Therefore, if the policy owner is contemplating using the policy in any arrangement the value of which depends in part on its tax consequences, the policy owner should be sure to consult a tax advisor as to tax attributes of the arrangement.
Non-Resident Aliens and Other Persons Who are Not Citizens of the United States
Special income tax laws and rules apply to non-resident aliens of the United States including certain withholding requirements with respect to pre-death distributions from the policy. In addition, foreign law may impose additional taxes on the policy, the death benefit, or other distributions and/or ownership of the policy.
In addition, special gift, estate and GSTT laws and rules may apply to non-resident aliens, and to transfers to persons who are not citizens of the United States, including limitations on the marital deduction if the surviving or donee spouse is not a citizen of the United States.
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If the policy owner is a non-resident alien, or a resident alien, or if any of the policy's beneficiaries (including the policy owner's spouse) are not citizens of the United States, the policy owner should confer with a competent tax advisor with respect to the tax treatment of this policy.
If the policy owner, the insured, the beneficiary, or other person receiving any benefit or interest in or from the policy, are not both a resident and citizen of the United States, there may be a tax imposed by a foreign country that is in addition to any tax imposed by the United States. The foreign law (including regulations, rulings, treaties with the United States, and case law) may change and impose additional or increased taxes on the policy, payment of the death benefit, or other distributions and/or ownership of the policy.
FATCA
Under Sections 1471 through 1474 of the Internal Revenue Code (commonly referred to as FATCA), distributions from a policy to a foreign financial institution or to a nonfinancial foreign entity, each as described by FATCA, may be subject to United States tax withholding at a flat rate equal to 30% of the taxable amount of the distribution, irrespective of the status of any beneficial owner of the policy or of the distribution. Nationwide may require you to provide certain information or documentation (e.g., Form W-9 or Form W-8BEN) to determine its withholding requirements under FATCA.
Withholding and Tax Reporting
Distribution of taxable income from a life insurance policy, including a life insurance policy that is a modified endowment contract, is subject to federal income tax withholding. Generally, the recipient may elect not to have the withholding taken from the distribution. Nationwide will withhold income tax unless the policy owner advises Nationwide, in writing, of their request not to withhold. If the policy owner requests that taxes not be withheld, or if the taxes withheld are insufficient, the policy owner may be liable for payment of an estimated tax.
A policy owner is not permitted to waive withholding if the payee does not provide Nationwide with a taxpayer identification number; or if Nationwide receives notice from the Internal Revenue Service that the taxpayer identification number furnished by the payee is incorrect. In that instance, a distribution will be subject to withholding rates established by Section 3405 of the Code and will be applied against the amount of income that is distributed.
However, interest earned on a death benefit may be subject to mandatory back-up withholding. Mandatory backup withholding means that Nationwide is required to withhold taxes on income earned at the rate established by Section 3406 of the Code. Mandatory backup withholding may arise if Nationwide has not been provided a taxpayer identification number, or if the IRS notifies Nationwide that back-up withholding is required.
In certain employer-sponsored life insurance arrangements, participants may be required to report for income tax purposes, one or more of the following:
• the value each year of the life insurance protection provided;
• an amount equal to any employer-paid Premiums;
• some or all of the amount by which the current value exceeds the employer's interest in the policy; and/or
• interest that is deemed to have been forgiven on a loan that Nationwide deems to have been made by the employer.
Participants in an employer-sponsored plan relating to this policy should consult with the sponsor or the administrator of the plan, and/or with their personal tax or legal advisor to determine the tax consequences, if any, of their employer-sponsored life insurance arrangements.
Taxes and the Value of the Policy
For federal income tax purposes, a separate account is not a separate entity from the company. Thus, the tax status of the separate account is not distinct from our status as a life insurance company. Investment income and realized capital gains on the assets of the separate account are reinvested and taken into account in determining the value of Accumulation Units. As a result, such investment income and realized capital gains are automatically applied to increase reserves under the policies.
At present, Nationwide does not expect to incur any federal income tax liability that would be chargeable to the Accumulation Units. Based upon these expectations, no charge is being made against the policy's Accumulation Units for federal income taxes. If, however, Nationwide determines that taxes may be incurred, Nationwide reserves the right to assess a charge for these taxes.
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Nationwide may also incur state and local taxes (in addition to those described in the discussion of the Premium Taxes) in several states. At present, these taxes are not significant. If they increase, however, charges for such taxes may be made that would decrease the value of the policy's Accumulation Units.
Tax Changes
The foregoing is a general discussion of various tax matters pertaining to life insurance policies. It is based on our understanding of federal tax laws as currently interpreted by the IRS, is general and is not intended as tax advice. The policy owner should consult their independent legal, tax and/or financial advisor.
The Code has been subjected to numerous amendments and changes, and it is reasonable to believe that it will continue to be revised. The United States Congress has, in the past, considered numerous legislative proposals that, if enacted, could change the tax treatment of life insurance policies. For example the "FY 2013, Budget of the United States Government" includes a proposal which, if enacted, would affect the treatment of corporate owned life insurance policies by limiting the availability of certain interest deductions for companies that purchase those policies. No proposed statutory language has been released yet, so the specifics of the proposal cannot be addressed herein. Such a proposal, if enacted, could have an adverse tax impact on the ownership of life insurance by or for the benefit of business entities. It is reasonable to believe that such proposals, and future proposals, may be enacted into law. The U.S. Treasury Department may amend existing regulations, issue new regulations, or adopt new interpretations of existing law that may differ from its current positions on these matters. In addition, current state law (which is not discussed herein) and future amendments to state law may affect the tax consequences of the policy.
Any or all of the foregoing may change from time to time without any notice, and the tax consequences arising out of a policy may be changed retroactively. There is no way of predicting if, when, or to what extent any such change may take place. Nationwide makes no representation as to the likelihood of the continuation of these current laws, interpretations, and policies.
Nationwide Life Insurance Company
Nationwide, the depositor, is a stock life insurance company organized under Ohio law in March 1929, with its home office at One Nationwide Plaza, Columbus, Ohio 43215. Nationwide is a provider of life insurance, annuities, and retirement products. It is admitted to do business in all states, the District of Columbia, Guam, the U.S. Virgin Islands, and Puerto Rico.
Nationwide is a member of the Nationwide group of companies. Nationwide Mutual Insurance Company and Nationwide Mutual Fire Insurance Company (the "Companies") are the ultimate controlling persons of the Nationwide group of companies. The Companies were organized under Ohio law in December 1925 and 1933 respectively. The Companies engage in a general insurance and reinsurance business, except life insurance.
Nationwide VLI Separate Account-4
Organization, Registration, and Operation
Nationwide VLI Separate Account-4 is a separate account established under Ohio law. Nationwide owns the assets in this account and is obligated to pay all benefits under the policies. Nationwide may use the separate account to support other variable life insurance policies that it issues. The separate account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940 ("1940 Act") and qualifies as a "separate account" within the meaning of federal securities laws. For purposes of federal securities laws, the separate account is, and will remain, fully funded at all times. This registration does not involve the SEC's supervision of the separate account's management or investment practices or policies.
The separate account is divided into Sub-Accounts that invest in shares of the underlying mutual funds. Nationwide buys and sells the mutual fund shares at their respective NAV. Any dividends and distributions from a mutual fund are reinvested at NAV in shares of that mutual fund.
Income, gains, and losses, whether or not realized, from the assets in the separate account will be credited to, or charged against, the separate account without regard to Nationwide's other income, gains, or losses. Income, gains, and losses credited to, or charged against, a Sub-Account reflect the Sub-Account's own Investment Experience and not the investment experience of Nationwide's other assets. The separate account's assets are held separately from Nationwide’s other assets and are not part of Nationwide’s general account. Nationwide may not use the separate account's assets to
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pay any of its liabilities other than those arising from the policies. Nationwide will hold assets in the separate account equal to its liabilities. The separate account may include other Sub-Accounts that are not available under the policies, and are not discussed in this prospectus.
Nationwide does not guarantee any money placed in this separate account. The value of each Sub-Account will increase or decrease, depending on the Investment Experience of the corresponding mutual fund. A policy owner could lose some or all of their money.
Addition, Deletion, or Substitution of Mutual Funds
Where permitted by applicable law, Nationwide reserves the right to:
• remove, close, combine, or add Sub-Accounts and make new Sub-Accounts available;
• substitute shares of another mutual fund, which may have different fees and expenses, for shares of an existing mutual fund;
• transfer assets supporting the policies from one Sub-Account to another, or from one separate account to another;
• combine the separate account with other separate accounts, and/or create new separate accounts;
• deregister the separate account under the 1940 Act, or operate the separate account or any Sub-Account as a management investment company under the 1940 Act or as any other form permitted by law; and
• modify the policy provisions to reflect changes in the Sub-Accounts and the separate account to comply with applicable law.
Nationwide reserves the right to make other structural and operational changes affecting this separate account.
Nationwide will provide notice of any of the changes above. Also, to the extent required by law, Nationwide will obtain the required orders, approvals, and/or regulatory clearance from the appropriate government agencies (such as the various insurance regulators or the SEC). Also, to the extent required by state law, Nationwide will accept an irrevocable election from the policy owner to transfer 100% of the policy's Cash Value to the Fixed Account if received within 60 days after the date the policy owner received notification of a material change in the investment policy of the separate account.
Substitution of Securities
Nationwide may substitute, eliminate, or combine shares of another underlying mutual fund for shares already purchased or to be purchased in the future if either of the following occurs:
(1) shares of a current underlying mutual fund are no longer available for investment; or
(2) further investment in an underlying mutual fund is inappropriate.
No substitution of shares may take place without the prior approval of the SEC. All affected policy owners will be notified in the event there is a substitution, elimination, or combination of shares.
The substitute mutual fund may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future Premium, or both. Nationwide may close Sub-Accounts to allocations of Premiums or policy value, or both, at any time in its sole discretion. The mutual funds, which sell their shares to the Sub-Accounts pursuant to participation agreements, also may terminate these agreements and discontinue offering their shares to the Sub-Accounts.
Deregistration of the Separate Account
Nationwide may deregister Nationwide VLI Separate Account-4 under the 1940 Act in the event the separate account meets an exemption from registration under the 1940 Act, if there are no shareholders in the separate account or for any other purpose approved by the SEC.
All policy owners will be notified in the event Nationwide deregisters Nationwide VLI Separate Account-4.
Voting Rights
Although the separate account owns the mutual fund shares, policy owners are the beneficial owner of those shares. When a matter involving a mutual fund is subject to shareholder vote, unless there is a change in existing law, Nationwide will vote the separate account's shares only as instructed by policy owners.
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When a shareholder vote occurs, a policy owner will have the right to instruct Nationwide how to vote. The weight of each vote is based on the number of mutual fund shares that corresponds to the amount of Cash Value a policy has allocated to that mutual fund's Sub-Account (as of a date set by the mutual fund). Nationwide will vote shares for which no instructions are received in the same proportion as those that are received. What this means is that when only a small number of policy owners vote, each vote has a greater impact on, and may control the outcome of the vote.
Material Conflicts
The underlying mutual funds may be offered through separate accounts of other insurance companies, as well as through other separate accounts of Nationwide. Nationwide does not anticipate any disadvantages to this. However, it is possible that a conflict may arise between the interests of the variable account and one or more of the other separate accounts in which these underlying mutual funds participate.
Material conflicts may occur due to a change in law affecting the operations of variable life insurance policies and variable annuity contracts, or differences in the voting instructions of the policy owners and those of other companies. If a material conflict occurs, Nationwide will take whatever steps are necessary to protect policy owners and variable annuity payees, including withdrawal of the variable account from participation in the underlying mutual fund(s) involved in the conflict.
Legal Proceedings
Nationwide Life Insurance Company
Nationwide Financial Services, Inc. (NFS, or collectively with its subsidiaries, "the Company") was formed in November 1996. NFS is the holding company for Nationwide Life Insurance Company (NLIC), Nationwide Life and Annuity Insurance Company (NLAIC) and other companies that comprise the life insurance and retirement savings operations of the Nationwide group of companies (Nationwide). This group includes Nationwide Financial Network (NFN), an affiliated distribution network that markets directly to its customer base. NFS is incorporated in Delaware and maintains its principal executive offices in Columbus, Ohio.
The Company is subject to legal and regulatory proceedings in the ordinary course of its business. The Company's legal and regulatory matters include proceedings specific to the Company and other proceedings generally applicable to business practices in the industries in which the Company operates. These matters are subject to many uncertainties, and given their complexity and scope, their outcomes cannot be predicted. Regulatory proceedings could also affect the outcome of one or more of the Company's litigation matters. Furthermore, it is often not possible to determine the ultimate outcomes of the pending regulatory investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty. Some matters, including certain of those referred to below, are in very preliminary stages, and the Company does not have sufficient information to make an assessment of the plaintiffs' claims for liability or damages. In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period. In many of the cases, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available. The Company believes, however, that based on currently known information, the ultimate outcome of all pending legal and regulatory matters is not likely to have a material adverse effect on the Company's condensed consolidated financial position. Nonetheless, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that such outcomes could materially affect the Company's condensed consolidated financial position or results of operations in a particular quarter or annual period.
The various businesses conducted by the Company are subject to oversight by numerous federal and state regulatory entities, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the Internal Revenue Service, the Federal Reserve Bank and state insurance authorities. Such regulatory entities may, in the normal course, be engaged in general or targeted inquiries, examinations and investigations of the Company and/or its affiliates. The financial services industry has been the subject of increasing scrutiny in connection with a broad spectrum of regulatory issues; with respect to all such scrutiny directed at the Company and/or its affiliates, the Company is cooperating with regulators. The Company will cooperate with Nationwide Mutual Insurance Company (NMIC) insofar as any inquiry, examination or investigation encompasses NMIC’s operations.
On August 15, 2001, NFS and NLIC were named in a lawsuit filed in the United States District Court for the District of Connecticut entitled Lou Haddock, as trustee of the Flyte Tool & Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc. and Nationwide Life Insurance Company. On November 18, 2009, the plaintiffs filed a
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sixth amended complaint amending the list of named plaintiffs and claiming to represent a class of qualified retirement plan trustees under the Employee Retirement Income Security Act of 1974 (ERISA) that purchased variable annuities from NLIC. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that NLIC and NFS breached ERISA fiduciary duties by allegedly accepting service payments from certain mutual funds. The complaint seeks damages in an amount equivalent to some or all of the payments allegedly received by NFS and NLIC, other unspecified relief for restitution, declaratory and injunctive relief, and attorneys fees. On November 6, 2009, the Court granted the plaintiffs motion for class certification. On October 21, 2010, the District Court dismissed NFS from the lawsuit. On February 6, 2012, the Second Circuit Court of Appeals vacated the November 6, 2009 order granting class certification and remanded the case back to the District Court for further consideration. On September 6, 2013, the District Court granted the plaintiffs motion for class certification. On December 11, 2014, the plaintiffs filed a 7th Amended Complaint adding another sub class of defendants that held trust platform products. On December 11, 2014, plaintiff filed a motion for preliminary approval of settlement. On January 5, 2015, the Court signed the Order Preliminarily Approving Settlement and Approving Form and Manner of Notice. On March 31, 2015, the Court held a Fairness Hearing. On April 9, 2015, the Court entered the Final Order and Consent Judgment. The Company has paid the loss amount. In November 2015, the settlement administrator mailed settlement checks to class members.
Nationwide Investment Services Corporation
The general distributor, NISC, is not engaged in any litigation of any material nature.
Financial Statements
The Statement of Additional Information ("SAI") contains the financial statements of Nationwide VLI Separate Account-4 and the consolidated financial statements of Nationwide Life Insurance Company and subsidiaries (the Company). Policy owners may obtain a copy of the SAI FREE OF CHARGE by contacting the Service Center. Please consider the consolidated financial statements of the Company only as bearing on Nationwide’s ability to meet the obligations under the policy. Policy owners should not consider the consolidated financial statements of the Company as affecting the investment performance of the assets of the separate account.
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Appendix A: Sub-Account Information
Below is a list of the available Sub-Accounts and information about the corresponding underlying mutual funds in which they invest. The underlying mutual funds in which the Sub-Accounts invest are designed primarily as investments for variable annuity contracts and variable life insurance policies issued by insurance companies. There is no guarantee that the investment objectives will be met.
Please refer to the prospectus for each underlying mutual fund for more detailed information.
   
Designations Key:
STTF: The underlying mutual fund corresponding to this Sub-Account assesses (or reserves the right to assess) a short-term trading fee, see Short-Term Trading Fees.
FF: The underlying mutual fund corresponding to this Sub-Account primarily invests in other mutual funds. Therefore, a proportionate share of the fees and expenses of any acquired funds are indirectly borne by investors. As a result, investors in this Sub-Account may incur higher charges than if the assets were invested in an underlying mutual fund that does not invest in other mutual funds. Refer to the prospectus for this underlying mutual fund for more information.
VOL: This underlying mutual fund uses a volatility management strategy to reduce a policy owner’s exposure to equity investments when equity markets are volatile which may limit investment losses in a down market. However, use of such a strategy may also limit the growth of the policy’s Cash Value. Allocation to this type of investment option may result in foregone investment gains that could otherwise be realized by investing in riskier investment options.
AllianceBernstein Variable Products Series Fund, Inc. - AB VPS Dynamic Asset Allocation Portfolio: Class A
This Sub-Account is only available in policies issued before May 1, 2014
Investment Advisor: AllianceBernstein L.P.
Investment Objective: To maximize total return consistent with the Adviser’s determination of reasonable risk.
AllianceBernstein Variable Products Series Fund, Inc. - AB VPS Growth and Income Portfolio: Class A
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: AllianceBernstein L.P.
Investment Objective: Long-term growth of capital.
AllianceBernstein Variable Products Series Fund, Inc. - AB VPS Small/Mid Cap Value Portfolio: Class A
Investment Advisor: AllianceBernstein L.P.
Investment Objective: Long-term growth of capital.
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: Long-term total return using a strategy that seeks to protect against U.S. inflation.
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class I
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: Capital growth by investing in common stocks. Income is a secondary objective.
American Century Variable Portfolios, Inc. - American Century VP Mid Cap Value Fund: Class I
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: Long-term capital growth with income as a secondary objective.
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class II
Investment Advisor: BlackRock Advisors, LLC
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: Seek high total investment return.
Delaware VIP Trust - Delaware VIP Small Cap Value Series: Service Class
Investment Advisor: Delaware Management Company, Inc.
Investment Objective: The fund seeks capital appreciation.
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Deutsche Variable Series II - Deutsche Global Income Builder VIP: Class A
Investment Advisor: Deutsche Investment Management Americas Inc.
Investment Objective: The fund seeks to maximize income while maintaining prospects for capital
appreciation.  
Dimensional - DFA Inflation-Protected Securities Portfolio
Investment Advisor: Dimensional Fund Advisors LP
Investment Objective: To provide inflation protection and earn current income consistent with inflation-protected securities.
Dreyfus Investment Portfolios - Small Cap Stock Index Portfolio: Service Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: The Dreyfus Corporation
Investment Objective: To match performance of the S&P SmallCap 600 Index®.
Dreyfus Socially Responsible Growth Fund, Inc. (The): Initial Shares
This Sub-Account is only available in policies issued before May 1, 2003
Investment Advisor: The Dreyfus Corporation
Investment Objective: Capital growth with current income as a secondary goal.
Dreyfus Stock Index Fund, Inc.: Initial Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: The Dreyfus Corporation
Investment Objective: To match performance of the S&P 500.
Dreyfus Variable Investment Fund - Appreciation Portfolio: Initial Shares
This Sub-Account is only available in policies issued before May 1, 2016
Investment Advisor: The Dreyfus Corporation
Sub-advisor: Fayez Sarofim & Co.
Investment Objective: The fund seeks long-term capital growth consistent with the preservation of capital. Its secondary goal is current income.
Dreyfus Variable Investment Fund - Opportunistic Small Cap Portfolio: Initial Shares
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: The Dreyfus Corporation
Investment Objective: The fund seeks capital growth.
Federated Insurance Series - Federated Managed Tail Risk Fund II: Primary Shares
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: Federated Global Investment Management Corp.
Sub-advisor: Federated Global Investment Management Corp., Federated Investment Management Company, Federated Equity Management Company of Pennsylvania
Investment Objective: To create an allocation mix which will maximize return while capturing the benefits of asset class diversification in periods of market volatility.
Federated Insurance Series - Federated Quality Bond Fund II: Primary Shares
Investment Advisor: Federated Investment Management Company
Investment Objective: Current income.
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2010 Portfolio: Service Class
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Strategic Advisers Inc. Boston MA
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective: High total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
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Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2020 Portfolio: Service Class
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Strategic Advisers Inc. Boston MA
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective: High total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2030 Portfolio: Service Class
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Strategic Advisers Inc. Boston MA
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective: High total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
Fidelity Variable Insurance Products Fund - VIP Energy Portfolio: Service Class 2
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective: Capital appreciation.
Designation: STTF
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: Reasonable income.
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited, Fidelity Investments Japan Limited
Investment Objective: Capital appreciation.
Fidelity Variable Insurance Products Fund - VIP High Income Portfolio: Service Class
This Sub-Account is only available in policies issued before May 1, 2015
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: High level of current income while also considering growth of capital.
Fidelity Variable Insurance Products Fund - VIP Investment Grade Bond Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: Fidelity Investments Money Management, Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: High level of current income.
Fidelity Variable Insurance Products Fund - VIP Mid Cap Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: Long-term growth of capital.
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Fidelity Variable Insurance Products Fund - VIP Overseas Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited, Fidelity Investments Japan Limited
Investment Objective: Long-term capital growth.
Fidelity Variable Insurance Products Fund - VIP Value Strategies Portfolio: Service Class
This Sub-Account is only available in policies issued before May 1, 2006
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: Capital appreciation.
Franklin Templeton Variable Insurance Products Trust - Franklin Founding Funds Allocation VIP Fund: Class 2
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Franklin Templeton Services, LLC
Investment Objective: Capital appreciation with income as a secondary goal.
Designation: FF
Franklin Templeton Variable Insurance Products Trust - Franklin Income VIP Fund: Class 2
Investment Advisor: Franklin Advisers, Inc.
Investment Objective: Maximum income while maintaining prospects for capital appreciation.
Franklin Templeton Variable Insurance Products Trust - Franklin Rising Dividends VIP Fund: Class 1
This Sub-Account is only available in policies issued before May 1, 2006
Investment Advisor: Franklin Advisory Services, LLC
Investment Objective: Long-term capital appreciation, with preservation of capital as an important consideration.
Franklin Templeton Variable Insurance Products Trust - Franklin Small Cap Value VIP Fund: Class 1
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Franklin Advisory Services, LLC
Investment Objective: Long-term total return.
Franklin Templeton Variable Insurance Products Trust - Templeton Developing Markets VIP Fund: Class 2
This Sub-Account is only available in policies issued before April 30, 2014
Investment Advisor: Templeton Asset Management, Ltd.
Investment Objective: Long-term capital appreciation.
Franklin Templeton Variable Insurance Products Trust - Templeton Foreign VIP Fund: Class 1
This Sub-Account is no longer available to receive transfers or new premium payments effective May 1, 2005
Investment Advisor: Templeton Investment Counsel, LLC
Investment Objective: Long-term capital growth.
Franklin Templeton Variable Insurance Products Trust - Templeton Foreign VIP Fund: Class 2
This Sub-Account is only available in policies issued before April 30, 2014
Investment Advisor: Templeton Investment Counsel, LLC
Investment Objective: Long-term capital growth.
Franklin Templeton Variable Insurance Products Trust - Templeton Global Bond VIP Fund: Class 2
Investment Advisor: Franklin Advisers, Inc.
Investment Objective: High current income, consistent with preservation of capital, with capital appreciation as a secondary consideration.
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Goldman Sachs Variable Insurance Trust - Goldman Sachs Global Trends Allocation Fund: Service Shares
This Sub-Account is only available in policies issued before May 1, 2014
Investment Advisor: Goldman Sachs Asset Management, L.P.
Investment Objective: Seeks to achieve investment results that approximate the performance of the GS Global Markets Navigator Index (the "Index").
Guggenheim Variable Fund - Multi-Hedge Strategies
Investment Advisor: Guggenheim Investments
Investment Objective: Capital appreciation consistent with the return and risk characteristics of the hedge fund universe and, secondarily, to achieve these returns with low correlation to and less volatility than equity indices.
Invesco - Invesco V.I. American Franchise Fund: Series I Shares
This Sub-Account is only available in policies issued before May 1, 2012
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: seek capital growth.
Invesco - Invesco V.I. Balanced-Risk Allocation Fund: Series I Shares
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: Total return with a low to moderate correlation to traditional financial market indices.
Invesco - Invesco V.I. Mid Cap Core Equity Fund: Series I Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: Long-term growth of capital.
Invesco - Invesco V.I. Mid Cap Growth Fund: Series I Shares
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: Capital growth.
Ivy Funds Variable Insurance Portfolios - Asset Strategy
Investment Advisor: Waddell & Reed Investment Management Company
Investment Objective: To seek to provide total return.
Ivy Funds Variable Insurance Portfolios - High Income
Investment Advisor: Waddell & Reed Investment Management Company
Investment Objective: To seek to provide total return through a combination of high current income and capital appreciation.
Ivy Funds Variable Insurance Portfolios - Mid Cap Growth
This Sub-Account is only available in policies issued before May 1, 2014
Investment Advisor: Waddell & Reed Investment Management Company
Investment Objective: To seek to provide growth of capital.
Janus Aspen Series - Balanced Portfolio: Service Shares
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term capital growth, consistent with preservation of capital and balanced by current income.
Janus Aspen Series - Forty Portfolio: Service Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
Janus Aspen Series - Global Technology Portfolio: Service Shares
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
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Janus Aspen Series - Overseas Portfolio: Service Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
Lord Abbett Series Fund, Inc. - Total Return Portfolio: Class VC
Investment Advisor: Lord, Abbett & Co. LLC
Investment Objective: The Fund’s investment objective is to seek income and capital appreciation to produce a high total return.
MFS® Variable Insurance Trust - MFS New Discovery Series: Initial Class
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: To seek capital appreciation.
MFS® Variable Insurance Trust - MFS Value Series: Initial Class
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: To seek capital appreciation.
MFS® Variable Insurance Trust II - MFS Massachusetts Investors Growth Stock Portfolio: Initial Class
This Sub-Account is only available in policies issued before March 27, 2015
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: To seek capital appreciation.
Nationwide Variable Insurance Trust - American Century NVIT Multi Cap Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: American Century Investment Management, Inc.
Investment Objective: The Fund seeks capital appreciation, and secondarily current income.
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II
Investment Advisor: Capital Research and Management Company
Investment Objective: The fund seeks to provide high total return (including income and capital gains) consistent with preservation of capital over the long term.
Designation: FF
Nationwide Variable Insurance Trust - American Funds NVIT Bond Fund: Class II
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Capital Research and Management Company
Investment Objective: The Fund seeks to maximize an investors level of current income and preserve the investor's capital.
Nationwide Variable Insurance Trust - American Funds NVIT Global Growth Fund: Class II
Investment Advisor: Capital Research and Management Company
Investment Objective: The Fund is designed for investors seeking capital appreciation through stocks.
Nationwide Variable Insurance Trust - American Funds NVIT Growth Fund: Class II
This Sub-Account is only available in policies issued before May 1, 2014
Investment Advisor: Capital Research and Management Company
Investment Objective: The Fund is designed for investors seeking capital appreciation principally through investment in stocks.
Nationwide Variable Insurance Trust - American Funds NVIT Growth-Income Fund: Class II
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Capital Research and Management Company
Investment Objective: The fund seeks to achieve long-term growth of capital and income.
Designation: FF
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Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Federated Investment Management Company
Investment Objective: The Fund seeks to provide high current income.
Nationwide Variable Insurance Trust - Invesco NVIT Comstock Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Invesco Advisers, Inc.
Investment Objective: The Fund’s investment objective is to seek capital growth and income through investments in equity securities, including common stocks, preferred stocks, and convertible securities.
Nationwide Variable Insurance Trust - Loring Ward NVIT Capital Appreciation Fund: Class P
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: LWI Financial Inc.
Investment Objective: To provide growth of capital, and secondarily current income.
Designation: FF
Nationwide Variable Insurance Trust - Loring Ward NVIT Moderate Fund: Class P
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: LWI Financial Inc.
Investment Objective: Seeks a high level of total return consistent with a moderate level of risk.
Designation: FF
Nationwide Variable Insurance Trust - Neuberger Berman NVIT Multi Cap Opportunities Fund: Class I
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Management LLC
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - Neuberger Berman NVIT Socially Responsible Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Management LLC
Investment Objective: The Fund seeks long-term growth of capital by investing primarily in securities of companies that meet the fund's financial criteria and social policy.
Nationwide Variable Insurance Trust - NVIT Bond Index Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks to match the performance of the Barclays U.S. Aggregate Bond Index ("Aggregate Bond Index") as closely as possible before the deduction of Fund expenses.
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Aggressive Fund seeks maximum growth of capital consistent with a more aggressive level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks a high level of total return through investment in both equity and fixed income securities.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks growth of capital, but also seeks income consistent with a less aggressive level of risk as compared to other Cardinal Funds.
Designation: FF
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Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks a high level of total return consistent with a conservative level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Managed Growth & Income Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: Seeks a high level of total return through investment in both equity and fixed-income securities, consistent with preservation of capital
Designation: FF, VOL
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Managed Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: Seeks growth primarily and investment income secondarily.
Designation: FF, VOL
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks a high level of total return consistent with a moderate level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks growth of capital, but also seeks income consistent with a moderately aggressive level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The fund seeks a high level of total return consistent with a moderately conservative level of risk.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Core Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: The Fund seeks a high level of current income consistent with preserving capital.
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Fixed Income LLC
Investment Objective: The fund seeks long-term total return consistent with reasonable risk.
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Lazard Asset Management, LLC and Standard Life Investments
Investment Objective: The Fund seeks long-term capital growth by investing primarily in equity securities of companies located in emerging market countries.
Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: The fund seeks as high level of income as is consistent with the preserving of capital.
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Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class I
This Sub-Account is only available in policies issued before April 26, 2014
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Lazard Asset Management LLC
Investment Objective: The Fund seeks long-term capital growth by investing primarily in equity securities of companies in Europe, Australasia, the Far East and other regions, including developing countries.
Nationwide Variable Insurance Trust - NVIT International Index Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks to match the performance of the Morgan Stanley Capital International Europe, Australasia and Far East Index ("MSCI EAFE® Index") as closely as possible before the deduction of Fund expenses.
Nationwide Variable Insurance Trust - NVIT International Index Fund: Class II
This Sub-Account is only available in policies issued before April 26, 2014
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks to match the performance of the Morgan Stanley Capital International Europe, Australasia and Far East Index ("MSCI EAFE® Index") as closely as possible before the deduction of Fund expenses.
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Aggressive Fund seeks maximum growth of capital consistent with a more aggressive level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Balanced Fund seeks a high level of total return through investment in both equity and fixed-income securities.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Capital Appreciation Fund seeks growth of capital, but also seeks income consistent with a less aggressive level of risk as compared to other NVIT Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Conservative Fund seeks a high level of total return consistent with a conservative level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Managed Growth & Income Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: Seeks a high level of total return through investment in both equity and fixed-income securities, consistent with preservation of capital.
Designation: FF, VOL
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Nationwide Variable Insurance Trust - NVIT Investor Destinations Managed Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: Seeks growth primarily and investment income secondarily.
Designation: FF, VOL
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Moderate Fund seeks a high level of total return consistent with a moderate level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Moderately Aggressive Fund seeks growth of capital, but also seeks income consistent with a moderately aggressive level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Moderately Conservative Fund seeks a high level of total return consistent with a moderately conservative level of risk.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Large Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Boston Advisors, LLC
Investment Objective: The Fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Mid Cap Index Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks capital appreciation.
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Federated Investment Management Company
Investment Objective: The Fund seeks as high a level of current income as is consistent with preserving capital and maintaining liquidity.
Nationwide Variable Insurance Trust - NVIT Multi Sector Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Logan Circle Partners, L.P.
Investment Objective: The Fund seeks to provide above average total return over a market cycle of three to five years.
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Invesco Advisers, Inc. and American Century Investment Management, Inc.
Investment Objective: The Fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Dimensional Fund Advisors LP; JPMorgan Investment Management Inc.
Investment Objective: The Fund seeks long-term capital appreciation.
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Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Massachusetts Financial Services Company; Smith Asset Management Group; and Winslow Capital Management, LLC
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Massachusetts Financial Services Company; Wellington Management Company, LLP; The Boston Company Asset Management, LLC
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Management LLC; Wells Capital Management, Inc.
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: American Century Investment Management, Inc.; Thompson, Siegel & Walmsley LLC; WEDGE Capital Management L.L.P.
Investment Objective: The fund seeks long-term capital appreciation.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: OppenheimerFunds, Inc.; Wellington Management Company, LLP
Investment Objective: The Fund seeks capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Epoch Investment Partners, Inc.; JPMorgan Investment Management Inc.
Investment Objective: The Fund seeks capital appreciation.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Jacobs Levy Equity Management, Morgan Stanley Investment Management Inc; OppenheimerFunds, Inc.; Putnam Investment Management, LLC
Investment Objective: The Fund seeks capital appreciation.
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: HighMark Capital Management, Inc.
Investment Objective: The Fund seeks total return through a flexible combination of capital appreciation and current income.
Nationwide Variable Insurance Trust - NVIT Real Estate Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Brookfield Investment Management, Inc.
Investment Objective: The Fund seeks current income and long-term capital appreciation.
Nationwide Variable Insurance Trust - NVIT S&P 500® Index Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: Long-term capital appreciation.
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: The Fund seeks to provide a high level of current income while preserving capital and minimizing fluctuations in share value.
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Nationwide Variable Insurance Trust - NVIT Small Cap Index Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks to match the performance of the Russell 2000® Index.
Nationwide Variable Insurance Trust - Templeton NVIT International Value Fund: Class I
This Sub-Account is only available in policies issued before May 1, 2014
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Templeton Investment Counsel, LLC
Investment Objective: The Fund seeks to maximize total return consisting of capital appreciation and/or current income.
Neuberger Berman Advisers Management Trust - AMT Mid-Cap Growth Portfolio: S Class Shares
Investment Advisor: Neuberger Berman Management LLC
Sub-advisor: Neuberger Berman, LLC
Investment Objective: The Fund seeks growth of capital.
Neuberger Berman Advisers Management Trust - AMT Short Duration Bond Portfolio: I Class Shares
This Sub-Account is only available in policies issued before May 1, 2012
Investment Advisor: Neuberger Berman Management LLC
Sub-advisor: Neuberger Berman Fixed Income LLC
Investment Objective: Highest available current income consistent with liquidity and low risk to principal; total return is a secondary goal.
Neuberger Berman Advisers Management Trust - AMT Socially Responsive Portfolio: I Class Shares
This Sub-Account is only available in policies issued before May 1, 2008
Investment Advisor: Neuberger Berman Management LLC
Sub-advisor: Neuberger Berman, LLC
Investment Objective: Long-term growth by investing primarily in securities of companies that meet financial criteria and social policy.
Northern Lights Variable Trust - TOPS Managed Risk Balanced ETF Portfolio: Class 3
Investment Advisor: ValMark Advisers, Inc.
Sub-advisor: Milliman, Inc.
Investment Objective: Seeks to provide income and capital appreciation with less volatility than the fixed income and equity markets.
Designation: FF, VOL
Northern Lights Variable Trust - TOPS Managed Risk Growth ETF Portfolio: Class 3
Investment Advisor: ValMark Advisers, Inc.
Sub-advisor: Milliman, Inc.
Investment Objective: Seeks capital appreciation with less volatility than the equity markets.
Designation: FF, VOL
Northern Lights Variable Trust - TOPS Managed Risk Moderate Growth ETF Portfolio: Class 3
Investment Advisor: ValMark Advisers, Inc.
Sub-advisor: Milliman, Inc.
Investment Objective: Seeks capital appreciation with less volatility than the equity markets.
Designation: FF, VOL
Oppenheimer Variable Account Funds - Oppenheimer Discovery Mid Cap Growth Fund/VA: Non-Service Shares
This Sub-Account is only available in policies issued before May 1, 2003
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: Capital appreciation.
Oppenheimer Variable Account Funds - Oppenheimer Global Fund/VA: Non-Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The Fund seeks capital appreciation.
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Oppenheimer Variable Account Funds - Oppenheimer Global Strategic Income Fund/VA: Non-Service Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The Fund seeks total return.
Oppenheimer Variable Account Funds - Oppenheimer International Growth Fund/VA: Non-Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The Fund seeks capital appreciation.
Oppenheimer Variable Account Funds - Oppenheimer Main Street Fund®/VA: Non-Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The Fund seeks capital appreciation.
Oppenheimer Variable Account Funds - Oppenheimer Main Street Small Cap Fund®/VA: Non-Service Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: Capital appreciation.
PIMCO Variable Insurance Trust - All Asset Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Sub-advisor: Research Affiliates
Investment Objective: Seeks maximum real return consistent with preservation of capital and prudent investment management. The portfolio seeks to achieve its investment objective by investing under normal circumstances substantially all of its assets in Institutional Class Shares of the Underlying PIMCO Funds
Designation: FF
PIMCO Variable Insurance Trust - CommodityRealReturn® Strategy Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum real return, consistent with prudent investment management.
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum total return consistent with preservation of capital and prudent investment management.
PIMCO Variable Insurance Trust - Low Duration Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum total return, consistent with preservation of capital and prudent investment management.
PIMCO Variable Insurance Trust - Total Return Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum total return consistent with preservation of capital and prudent investment management.
Putnam Variable Trust - Putnam VT Growth & Income Fund: Class IB
This Sub-Account is only available in policies issued before May 1, 2005
Investment Advisor: Putnam Investment Management, LLC
Sub-advisor: Putnam Investments Limited
Investment Objective: Capital growth and current income.
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Putnam Variable Trust - Putnam VT International Equity Fund: Class IB
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: Putnam Investment Management, LLC
Sub-advisor: Putnam Investments Limited and The Putnam Advisory Company, LLC
Investment Objective: Capital appreciation.
Putnam Variable Trust - Putnam VT Voyager Fund: Class IB
This Sub-Account is only available in policies issued before May 1, 2005
Investment Advisor: Putnam Investment Management, LLC
Sub-advisor: Putnam Investments Limited
Investment Objective: Capital appreciation.
T. Rowe Price Equity Series, Inc. - T. Rowe Price Health Sciences Portfolio: II
Investment Advisor: T. Rowe Price Associates, Inc.
Investment Objective: Long-term capital appreciation.
The Universal Institutional Funds, Inc. - Core Plus Fixed Income Portfolio: Class I
This Sub-Account is only available in policies issued before May 1, 2009
Investment Advisor: Morgan Stanley Investment Management Inc.
Investment Objective: Above-average total return over a market cycle of three to five years by investing primarily in a diversified portfolio of fixed income securities.
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class I
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: Morgan Stanley Investment Management Inc.
Investment Objective: High total return by investing primarily in fixed income securities of government and government-related issuers and, to a lesser extent, of corporate issuers in emerging market countries.
VanEck VIP Trust - VanEck VIP Emerging Markets Fund: Initial Class
This Sub-Account is only available in policies issued before May 1, 2002
Investment Advisor: Van Eck Associates Corporation
Investment Objective: Long-term capital appreciation by investing primarily in equity securities in emerging markets around the world.
VanEck VIP Trust - VanEck VIP Global Hard Assets Fund: Initial Class
Investment Advisor: Van Eck Associates Corporation
Investment Objective: Long-term capital appreciation by investing primarily in hard asset securities. Income is a secondary consideration.
Wells Fargo Variable Trust - VT Small Cap Growth Fund: Class 2 (formerly, Wells Fargo Advantage Variable Trust - Wells Fargo Advantage VT Small Cap Growth Fund: Class 2)
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Wells Fargo Funds Management, LLC
Sub-advisor: Wells Fargo Asset Management
Investment Objective: Seeks long-term capital appreciation.
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Appendix B: Definitions
Accumulation Unit – The measure of an investment in, or share of, a Sub-Account. Accumulation Unit values are initially set at $10 for each Sub-Account.
Attained Age – A person's Issue Age plus the number of full years since the Policy Date.
Base Policy Specified Amount – The amount of insurance coverage selected under the base policy, excluding any Rider Specified Amount.
Cash Surrender Value – The Cash Value minus Indebtedness and any surrender charge.
Cash Value – The total of amounts allocated to the Sub-Accounts, the policy loan account, and the Fixed Account.
Code – The Internal Revenue Code of 1986, as amended.
Death Benefit – The amount paid upon the Insured's death, before the deduction of any Indebtedness or due and unpaid policy charges.
Fixed Account – An investment option that is funded by Nationwide's general account.
Grace Period – A 61-day period after which the Policy will Lapse if sufficient payments are not made to prevent Lapse.
In Force – Any time during which benefits are payable under the policy and any elected Rider(s).
Indebtedness – The total amount of all outstanding policy loans, including principal and interest due.
Insured – The person whose life is insured under the policy, and whose death triggers payment of the Death Benefit.
Investment Experience – The market performance of a mutual fund/Sub-Account.
Issue Age – A person's age based on their last birthday on or before the Policy Date.
Lapse – The policy terminates without value.
Long-Term Care Specified Amount – The elected Long-Term Care Rider benefit amount adjusted for any post issue increases and decreases. This amount must be at least 10% of the Total Specified Amount and no more than 100% of the Total Specified Amount.
Maturity Date – The policy anniversary on which the Insured reaches age 100.
Minimum Required Death Benefit – The lowest Death Benefit that will qualify the policy as life insurance under the Code.
Nationwide – Nationwide Life Insurance Company, us, we, or our.
Net Amount At Risk – The policy's base Death Benefit minus the policy's Cash Value.
Net Asset Value (NAV) – The price of each share of a mutual fund in which a Sub-Account invests. NAV is calculated by subtracting the mutual fund's liabilities from its total assets, and dividing that figure by the number of shares outstanding. Nationwide uses NAV to calculate the value of Accumulation Units. NAV does not reflect deductions made for charges taken from the Sub-Accounts.
Net Premium – Premium after transaction charges, but before any allocation to an investment option.
Policy Data Page(s) – The Policy Data Page(s) contains more detailed information about the policy, some of which is unique to the policy owner, the beneficiary, and the Insured.
Policy Date – The date the policy takes effect as shown on the Policy Data Page. Policy years, months, and anniversaries are measured from this date.
Policy owner or Owner – The person or entity named as the owner on the application, or the person or entity assigned ownership rights.
Policy Proceeds or Proceeds – Policy Proceeds may constitute the Death Benefit, or the amount payable if the policy matures or is surrendered, adjusted to account for any unpaid charges, Indebtedness and Rider benefits.
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Premium – Amount(s) paid to purchase and maintain the policy.
Premium Load – The aggregate of the sales load and premium tax charges.
Rider – An optional benefit purchased under the policy. Rider availability and Rider terms may vary depending on the state in which the policy was issued.
Rider Specified Amount – The portion of the Total Specified Amount attributable to the Additional (insurance) Protection Rider.
SEC – The Securities and Exchange Commission.
Service Center – The department of Nationwide responsible for receiving all service and transaction requests relating to the policy. For service and transaction requests submitted other than by telephone (including fax requests), the Service Center is Nationwide's mail and document processing facility. For service and transaction requests communicated by telephone, the Service Center is Nationwide’s operations processing facility, see Contacting the Service Center.
Sub-Account(s) – The mechanism used to account for allocations of Net Premium and Cash Value among the policy's variable investment options.
Substandard Rating – An underwriting classification based on medical and/or non-medical factors used to determine what to charge for life insurance based on characteristics of the Insured beyond traditional factors for standard risks, which include age, sex, and smoking habits of the Insured. Substandard Ratings are shown in the Policy Data Pages as rate class multiples (medical factors) and/or monthly flat extras (medical and/or non-medical factors). The higher the rate class multiple or monthly flat extra, the greater the risk assessed and the higher the cost of coverage.
Total Specified Amount – The sum of the Base Policy Specified Amount and the Rider Specified Amount, if applicable.
Valuation Period – The period during which Nationwide determines the change in the value of the Sub-Accounts. One Valuation Period ends and another begins with the close of trading on the NYSE.
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Outside back cover page
To learn more about the policy, the policy owner should read the Statement of Additional Information (the "SAI") dated the same date as this prospectus. For a free copy of the SAI, to receive personalized illustrations of Death Benefits, Net Cash Surrender Values, and Policy Account Values, and to request other information about the policy contact the Service Center:
• by telephone at 1-800-848-6331
• by mail to Nationwide Life Insurance Company
P.O. Box 182835
Columbus, OH 43218-2835
The SAI has been filed with the SEC and is incorporated by reference into this prospectus. The SEC maintains an Internet website (http://www.sec.gov) that contains the SAI and other information about Nationwide Life Insurance Company and the policy. Information about Nationwide Life Insurance Company and the policy (including the SAI) may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC, or may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC, 100 F Street NE, Washington, DC 20549. Additional information on the operation of the Public Reference Room may be obtained by calling the SEC at (202) 551-8090.
Investment Company Act of 1940 Registration File No. 811-08301
Securities Act of 1933 Registration File No. 333-31725

The Best of America® Choice Life FPVUL
Individual Flexible Premium Variable Universal Life Insurance Policies
Issued by
Nationwide Life Insurance Company
through its
Nationwide VLI Separate Account-4
The date of this prospectus is May 1, 2016.
This prospectus contains basic information about the policies that should be understood before investing. Read this prospectus carefully and keep it for future reference.
Variable life insurance policies are complex products with unique benefits and advantages. There are costs and charges associated with these benefits and advantages - costs and charges that are different, or do not exist at all within other life insurance products. With help from financial consultants and advisors, purchasers are encouraged to compare and contrast the costs and benefits of the policy described in this prospectus against those of other life insurance products, especially other variable life insurance products offered by Nationwide and its affiliates. Nationwide offers a wide array of products, many with different charges, benefit features, and underlying investment options. This process of comparison and analysis should aid in determining whether the purchase of the policy described in this prospectus is consistent with the purchaser’s life insurance objectives, risk tolerance, investment time horizon, marital status, tax situation, and other personal characteristics and needs.
To obtain additional information, including free copies of prospectuses for the underlying mutual funds or a copy of the Statement of Additional Information, or to make service or transaction requests, contact Nationwide using any of the methods described in Contacting the Service Center.
These securities have not been approved or disapproved by the SEC nor has the SEC passed upon the accuracy or adequacy of the prospectus. Any representation to the contrary is a criminal offense.
This prospectus is not an offering in any jurisdiction where such offering may not lawfully be made. Not all Riders, terms, conditions, benefits, programs, features, and investment options are available or approved for use in every state. Contact Nationwide to review a copy of the policy and any Riders or endorsements. This prospectus contains all material rights and features of the policy.
The policy is NOT: insured by the Federal Deposit Insurance Corporation; a bank deposit; available in every state; or insured or endorsed by a bank or any federal government agency.
The policy may decrease in value to the point of being valueless because of poor Investment Experience.
The purpose of this policy is to provide life insurance protection for the beneficiary named by the policy owner. If the purchaser’s primary need is not life insurance protection, then purchasing this policy may not be in the best interest of the purchaser. Nationwide makes no claim that the policy is in any way similar or comparable to a systematic investment plan of a mutual fund.
If this policy is being purchased to replace existing life insurance, the purchaser should carefully consider the benefits, features, and costs of this policy versus those of the policy being replaced.
Nationwide offers a variety of variable universal life policies. Despite offering substantially similar features and investment options, certain policies may have lower overall charges than others including the policy described herein. These differences in charges may be attributable to differences in sales and related expenses incurred in one distribution channel versus another.
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In Summary: Policy Benefits
Death Benefit
The primary benefit of this policy is life insurance coverage. Nationwide will pay the Death Benefit Proceeds upon the Insured's death if the Insured dies while the policy is In Force. The policy is In Force when: the policy has been issued; the Insured is living; the policy has not been surrendered for its Cash Surrender Value; and the policy has not Lapsed.
Death Benefit Options
Note: The Death Benefit will be the greater of the amount produced by the death benefit option in effect on the date of the Insured's death or the Minimum Required Death Benefit, see The Minimum Required Death Benefit.
Death Benefit Option 1: The Death Benefit will be the Total Specified Amount as of the Insured's date of death.
Death Benefit Option 2: The Death Benefit will be the Total Specified Amount plus the Cash Value as of the Insured's date of death.
Death Benefit Option 3: The Death Benefit will be the Total Specified Amount plus the accumulated premium account (which consists of all Premium payments plus interest), less any partial surrenders, as of the Insured's date of death.
Choice of Policy Proceeds
The Policy Proceeds may be paid in a lump sum, or a variety of options that will pay out over time.
Coverage Flexibility
Subject to conditions, the policy owner may choose to:
• change the death benefit option;
• increase or decrease the Base Policy Specified Amount and/or Rider Specified Amount;
• change beneficiaries; and
• change ownership of the policy.
Continuation of Coverage is Guaranteed
The policy will remain In Force during the policy continuation period as long as sufficient Premium is paid to meet the requirements set forth in Guaranteed Policy Continuation Provision.
Access to Cash Value
Subject to conditions, the policy owner may:
• take a policy loan, see Policy Loans.
• take a partial surrender, see Partial Surrender.
• surrender the policy for its Cash Surrender Value at any time while the policy is In Force, see Full Surrender.
Premium Flexibility
The policy owner will select a Premium payment plan for the policy at the time of application. Within limits, the policy owner may vary the frequency and amount of Premium payments, see Premium Payments and Unfavorable Investment Experience.
Investment Options
Net Premium may be allocated among fixed and/or variable investment options available in the policy.
The policy currently offers a fixed investment option which will earn interest daily, see Fixed Account.
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The variable investment options offered under the policy correspond to mutual funds designed to be the underlying investment options of variable insurance products. Nationwide VLI Separate Account-4 contains one Sub-Account for each of the underlying mutual funds offered in the policy.
Transfer Requests
Policy owners may request to transfer allocations between available investment options of the policy (i.e., the Fixed Account and Sub-Accounts). Requests to transfer allocations between policy investment options will be processed in the Valuation Period they are received at the Service Center as long as the request is in good order. Requests that are not in good order may be delayed or returned, see Contacting the Service Center. Transfer requests may be subject to policies and procedures intended to reduce the potentially detrimental impact that disruptive trading has on Sub-Account Investment Experience, see Transfers Among and Between Policy Investment Options.
Taxes
Earnings on the policy are generally not taxable to the policy owner, unless withdrawn from the policy. This is known as tax deferral. In addition, beneficiaries generally will not have to include Death Benefit Proceeds as taxable income, see Taxes.
Unlike other variable insurance products Nationwide offers, Individual Flexible Premium Variable Universal Life Insurance Policies do not require distributions to be made before Insured's death, see Taxes.
Assignment
Policy owners may assign the policy as collateral for a loan or another obligation while the policy is In Force, see Assigning the Policy.
Examination Right
For a limited time, the policy owner may cancel the policy and receive a refund, see To Cancel (Examination Right).
Riders
The policy owner may purchase one or more of the Riders listed below, subject to availability in the state where the policy is issued. There may be additional charges assessed for elected Riders and Rider charges may vary based upon the individual characteristics of the Insured. Operation and benefits of the Riders described in this prospectus may vary by the state where the policy is issued.
• Adjusted Sales Load Life Insurance Rider
• Children's Insurance Rider
• Long-Term Care Rider
• Spouse Life Insurance Rider
• Accidental Death Benefit Rider
• Premium Waiver Rider
• Change of Insured Rider (no charge)
• Additional (insurance) Protection Rider
• Deduction (of Fees and Expenses) Waiver Rider
• Policy Guard Rider
In Summary: Policy Risks
State Variations
Due to variations in state law, many features of the policy described in this prospectus may be different or may not be available at all depending on the state in which the policy is issued.
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Possible variations include, but are not limited to, Rider terms and availability, availability of certain investment options, free look rights, policy exchange rights, policy Lapse and/or reinstatement requirements, and the duration of suicide and incontestability periods. Variations due to state law are subject to change without notice at any time. To review a copy of the policy and any Riders or endorsements for the state in which the policy will be issued, the policy owner can contact the Service Center, see Contacting the Service Center.
Risk of Increase in Current Fees and Charges
Nationwide may change policy and/or Rider charges and rates under the policy at any time. Changes in policy and/or Rider charges and rates will vary based upon changes in Nationwide's future expectations related to items such as company investment earnings, mortality experience, persistency experience, expenses, including reinsurance expenses, and taxes. Nationwide will provide advance notice of any increase in policy and/or Rider charges.
If a change in the charges or rates causes an increase to the policy and/or Rider charges, the policy's Cash Value could decrease. If a change in the charges or rates causes a decrease to the policy and/or Rider charges, the policy's Cash Value could increase. Policy and Rider charges will not exceed the maximum charges shown in the fee tables, see In Summary: Fee Tables and Standard Policy Charges.
Improper Use
Variable universal life insurance is not suitable as an investment vehicle for short-term savings. It is designed for long-term financial planning. Policy owners accessing the Cash Value in the early policy years could incur potentially substantial surrender charges.
Unfavorable Investment Experience
The Sub-Accounts may generate unfavorable Investment Experience. Poor Investment Experience and the deduction of policy and Sub-Account charges may lower the policy’s Cash Value potentially resulting in a Lapse of insurance coverage.
Note: The policy owner selects the Premium amount and frequency shown in the policy illustration to show Nationwide how much Premium the policy owner intends to pay and when. Illustrated Premium and hypothetical rates of return are not guaranteed. Investment Experience varies over time, is rarely the same year-over-year, and may be negative. Because the policy is a variable universal life insurance policy with the potential for unfavorable Investment Experience, including extended periods of significant stock market decline, additional Premium may be required to meet a policy owner's goals and/or to prevent the policy from Lapsing. Generally, variable universal life insurance is considered a long-term investment. Policy owners should weigh the investment risk and costs associated with the policy against their objectives, time horizon, risk tolerance, and ability to pay additional Premium if necessary.
Risk of Policy Lapse
Cash Value can be reduced by Investment Experience, policy loans, partial surrenders and the deduction of policy charges. Whenever Cash Value is insufficient to cover the policy’s charges, the policy is at risk of Lapse; the policy could terminate without value and insurance coverage would cease.
Limitation of Access To Cash Value
A policy owner can access Cash Value through loans and partial surrenders, subject to limitations. Limitations include the amount and frequency of the loan or partial surrender, see Policy Loans and Surrenders. Once a loan or surrender is taken, Cash Value will be reduced by the amount of the policy loan and/or the partial surrender and any associated charges.
Adverse Tax Consequences
Existing federal tax laws that benefit this policy may change at any time. These changes could alter the favorable federal income tax treatment the policy enjoys, such as the deferral of taxation on the gains in the policy's Cash Value and the exclusion of the Death Benefit Proceeds from the taxable income of the policy's beneficiary. Partial and full surrenders from the policy may be subject to taxes. The income tax treatment of the surrender of Cash Value is different in the event the policy is treated as a modified endowment contract under the Code. Generally, tax treatment of modified endowment
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contracts is less favorable when compared to a life insurance policy that is not a modified endowment contract. For example, distributions and loans from modified endowment contracts may currently be taxed as ordinary income and not a return of investment, see Taxes.
The proceeds of a life insurance policy are includible in the gross estate of the Insured for federal income tax purposes if either (a) the proceeds are payable to the executor of the estate of the Insured, or (b) the Insured, at any time within three years prior to his or her death, possessed any incident of ownership in the policy. For this purpose, the Treasury Regulations provide that the term "incident of ownership" is to be construed very broadly, and includes any right that the Insured may have with respect to the economic benefits in the policy. Consult a qualified tax advisor on all tax matters involving the policy described herein.
Fixed Account Transfer Restrictions and Limitations
In addition to the Sub-Accounts available under the policy, Net Premium can be allocated to the Fixed Account. Prior to the policy's Maturity Date, the policy owner may make transfers involving the Fixed Account subject to transfer restrictions, without penalty or adjustment. These transfers will be in dollars and Nationwide may limit the frequency and dollar amount of transfers involving the Fixed Account. See Fixed Account Transfers for details about restrictions that apply to transfers to and from the Fixed Account.
Sub-Account Limitations
Frequent trading among the Sub-Accounts may dilute the value of Accumulation Units, cause the Sub-Account to incur higher transaction costs, and interfere with the Sub-Accounts' ability to pursue their stated investment objectives. This could result in less favorable Investment Experience and a lower Cash Value. Nationwide has instituted procedures to minimize disruptive transfers. While Nationwide expects these procedures to reduce the adverse effect of disruptive transfers, it cannot ensure that it has eliminated these risks.
Sub-Account Investment Risk
A comprehensive discussion of the risks of each underlying mutual fund may be found in the mutual fund’s prospectus. Read each mutual fund's prospectus before investing. Free copies of each mutual fund's prospectus may be obtained by contacting the Service Center.
In Summary: Fee Tables
The following tables describe the fees and expenses assessed under the policy. The rates in these tables may be rounded up to the nearest one-hundredth decimal. These tables should be read in conjunction with the corresponding section of this prospectus that describes the fee or expense in more detail. All charges deducted from the policy's Cash Value are taken proportionally from the Sub-Accounts and the Fixed Account except where noted.
The first table describes the fees and expenses that a policy owner will pay at the time the policy owner buys the policy, surrenders the policy, or transfers Cash Value between investment options.
Transaction Fees
Charge When Charge Is Deducted Amount Deducted
Sales Load Charge1 Upon making a Premium payment Maximum:
$25 from each $1,000 of Premium 		Current:
$5 from each $1,000 of Premium
Premium Taxes Charge1 Upon making a Premium payment $35 per $1,000 of Premium payment
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Transaction Fees
Charge When Charge Is Deducted Amount Deducted
Surrender Charge2 Upon full surrender; Upon policy Lapse; Upon a decrease to the Base Policy Specified Amount Maximum:
$25,590 		Minimum:
$2,337 		Representative:
$3,408
Representative - For an age 35 male non-tobacco preferred with a Base Policy Specified Amount and a Total Specified Amount of $500,000 and Death Benefit Option 1 From the policy's available Cash Value
Illustration Charge3 Upon requesting an illustration Maximum:
$25 		Current:
$0
Partial Surrender Fee Upon a partial surrender Maximum:
the lesser of $25 or 2% of amount surrendered 		Current:
$0
Short-Term Trading Fee4 Upon transfer of Sub-Account value out of a Sub-Account within 60 days after allocation to that Sub-Account 1% of the amount transferred from the Sub-Account within 60 days of allocation to that Sub-Account
† This charge will vary based upon the individual characteristics of the Insured. Representative charges shown in the table may not be representative of the charge that a particular policy owner will pay. Policy owners can request an illustration of specific costs and/or see the Policy Data Pages for information about specific charges of the policy.
1 The maximum Sales Load Charge and the Premium Taxes Charge (collectively "Premium Load") represent the maximums that may be charged in any policy year, see Premium Load.
2 For purposes of this table, for a full surrender occurring in the first year from the Policy Date, the charge calculations assume an aggregate first year Premium in excess of the surrender target premium. The surrender target premium is an assumed Premium payment amount used in calculating the Surrender Charge. The Surrender Charge is based on the lesser of the surrender target premium and the Premiums paid in the first year from the Policy Date. The surrender target premium varies by: the Insured's sex; issue age; underwriting class; and the Base Policy Specified Amount (including any increases). The maximum Surrender Charge calculation assumes: a male; age 85 or older; tobacco; a Base Policy Specified Amount and Total Specified Amount of $500,000, Death Benefit Option 1; and policy year one. The minimum charge calculation assumes: a female; issue age 0; a Base Policy Specified Amount and Total Specified Amount of $500,000; Death Benefit Option 1 and policy year one.
3 The policy owner will be expected to pay the Illustration Charge at the time of the request. This charge will not be deducted from Cash Value.
4 Short-term trading fees are only assessed in connection with Sub-Accounts that correspond to underlying mutual funds that assess a short-term trading fee, see Short-Term Trading Fees.
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The next table describes the fees and expenses that a policy owner will pay periodically while the policy is In Force, not including mutual fund operating expenses.
Periodic Charges
Charge When Charge Is Deducted Amount Deducted From Cash Value
Cost Of Insurance Charge1† Monthly Minimum:
$0.04 		Maximum:
$83.33 		Representative:
$0.14
Representative – An age 35 male; non-tobacco preferred; Base Policy Specified Amount and Total Specified Amount $500,000; Death Benefit Option 1 Per $1,000 Of Net Amount At Risk –
From the policy's available Cash Value
Flat Extra Charge2 Monthly Maximum:
$2.08 per $1,000 of Net Amount
At Risk for each Flat Extra assessed
Mortality and Expense Risk Charge3 Monthly Maximum :
A monthly rate of $0.50 Per $1,000 of Cash Value
Proportionately from the Sub-Accounts only
Administrative Charge4 Monthly Maximum:
$10 		Current:
$10
From the policy's available Cash Value
Policy Loan Interest Charge5 Annually Maximum:
$39 		Current:
$39
Per $1,000 of an outstanding policy loan
† This charge will vary based upon the individual characteristics of the Insured. Representative charges shown in the table may not be representative of the charge that a particular policy owner will pay. Policy owners can request an illustration of specific costs and/or see the Policy Data Pages for information about specific charges of the policy.
1 The Cost of Insurance Charge varies by: the Insured's sex; age; underwriting class; any Substandard Ratings; the year from the Policy Date; and the Base Policy Specified Amount. Cost of Insurance charges are taken from the policy's Cash Value at the beginning of the month starting with the Policy Date. The charge is not pro rated should the policy terminate before the beginning of the next month.
2 The Flat Extra is a component in the calculation of the base policy Cost of Insurance Charge and any Rider Cost of Insurance Charge. It is only applicable if certain factors result in an Insured having a Substandard Rating. Under no circumstance will the assessment of a Flat Extra Charge result in the Cost of Insurance Charge exceeding the maximum Cost of Insurance Charge, see Cost of Insurance.
3 On a current basis, during policy years one through 15, the Mortality and Expense Risk Charge is $0.50 per $1,000 on the first $25,000 of Cash Value, and $0.25 per $1,000 on Cash Values of $25,001 up to $250,000. For Cash Values above $250,000, the charge is $0.08 per $1,000. Beginning in the policy year 16, the charge is $0.50 per $1,000 on the first $25,000 of Cash Value, and $0.08 per $1,000 of Cash Value over $25,000. The charge is only assessed against Cash Value allocated to Sub-Accounts.
4 After the first policy year, the monthly maximum amount is $7.50, and the monthly current amount is $5.
5 The Policy Loan Interest Charge is described in more detail in Policy Loans.
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The next table describes the fees and expenses associated with Riders that a policy owner will pay periodically while the policy is In Force, not including mutual fund operating expenses.
Periodic Charges For Riders
Charge When Charge Is Deducted Amount Deducted From Cash Value
Adjusted Sales Load Life Insurance Rider Charge Monthly $0.14
Per $1,000 of aggregate monthly Premiums
and 1% of Premium Load replaced – Waived from the policy’s available Cash Value
Children's Insurance Rider Charge Monthly $0.43 Per $1,000 of Rider Specified Amount –
From the policy's available Cash Value
Long-Term Care Rider Charge† Monthly Minimum:
$0.02 		Maximum:
$28.65 		Representative:
$0.02
Representative - An age 35 male; non-tobacco preferred;Long-Term Care Rider Specified Amount $500,000; Death Benefit Option 1 Per $1,000 of Rider Net Amount At Risk -
From the policy's available Cash Value
Spouse Life Insurance Rider Charge† Monthly Minimum:
$0.10 		Maximum:
$10.23 		Representative:
$0.11
Representative Spouse - An age 35 female; non-tobacco; and Spouse Life Insurance Rider Specified Amount $100,000 Per $1,000 of Spouse Death Benefit -
From the policy's available Cash Value
Accidental Death Benefit Rider Charge† Monthly Minimum:
$0.05 		Maximum:
$0.75 		Representative:
$0.06
Representative - An age 35 male; non-tobacco preferred; and Accidental Death Benefit $100,000 Per $1,000 of Accidental Death Benefit -
From the policy's available Cash Value
Premium Waiver Rider Charge1† Monthly Minimum:
$42 		Maximum:
$315 		Representative:
$42
Representative - An age 35 male; non-tobacco preferred Per $1,000 of Premium Waiver Benefit -
From the policy's available Cash Value
Additional (Insurance) Protection Rider Charge2† Monthly Minimum:
$0.01 		Maximum:
$83.33 		Representative:
$0.04
Representative - An age 35 male; non-tobacco preferred; Additional Death Benefit $250,000 Per $1,000 of Rider Net Amount at Risk –
From the policy's available Cash Value
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Periodic Charges For Riders
Charge When Charge Is Deducted Amount Deducted From Cash Value
Deduction (of Fees and Expenses) Waiver Rider Charge3† Monthly Minimum:
$90 		Maximum:
$860 		Representative:
$90
Representative - An age 35 male; non-tobacco preferred; Total Specified Amount of $500,000; Death Benefit Option 1 Per $1,000 of Deduction Waiver Benefit –
From the policy's available Cash Value
Policy Guard Rider Charge4† Upon Invoking The Rider Minimum:
$6.50 		Maximum:
$46.00 		Representative:
$37.00
Representative – Attained Age 85; Cash Value $500,000; Indebtedness of $480,000 Deducted from each $1,000 of the policy's Cash Value
† This charge will vary based upon the individual characteristics of the Insured. Representative charges shown in the table may not be representative of the charge that a particular policy owner will pay. Policy owners can request an illustration of specific costs and/or see the Policy Data Pages for information about specific charges of the policy.
1 The charge calculations assume monthly Premium payments of $1,000, the waiver of which would occur in the event of the Insured's total disability for six consecutive months. For policies issued before July 13, 2006, the maximum charge for this Rider is $105.
2 The monthly charge is a product of the Rider's monthly cost of insurance charge and the Rider Death Benefit, see Additional (Insurance) Protection Rider.
3 The charge calculation assumes total monthly periodic charges of $1,000 (not including this Rider's cost, and any loan amount interest [which are meant to be excluded]). These charges would be waived in the event of the Insured's total disability for six consecutive months.
4 The level of Indebtedness as a percentage of Cash Value that will allow the policy owner to invoke the Rider will vary with the attained age of the Insured. Generally, the higher the Insured's attained age, the higher the level of Indebtedness must be to invoke the Rider, see Policy Guard Rider.
The next table shows the minimum and maximum total operating expenses, as of December 31, 2015, charged by the underlying mutual funds that a policy owner may periodically pay while the policy is In Force. More detail concerning each mutual fund's fees and expenses is contained in the mutual fund's prospectus.
Total Annual Mutual Fund Operating Expenses  
    Minimum   Maximum  
Total Annual Mutual Fund Operating Expenses
(expenses that are deducted from the mutual fund assets, including management fees, distribution (12b-1) fees, and other expenses) 		  0.13%   3.08%  
Policy Investment Options
Policy owners designate how Net Premium payments are allocated among the Sub-Accounts and/or the Fixed Account. Allocation instructions must be in whole percentages and the sum of the allocations must equal 100%.
Fixed Account
Nationwide's obligations under the Fixed Account are backed by assets of its general account. The general account contains all of Nationwide's assets other than those in this and other Nationwide separate accounts and is used to support Nationwide's annuity and insurance obligations.
Subject to applicable law, Nationwide has sole discretion over the investment of assets of the general account and policy owners do not share in the investment experience of, or have any preferential claim on, those assets. Nationwide bears the full investment risk for all amounts allocated to the Fixed Account.
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Because of exemptive and exclusionary provisions, interests in the Fixed Account have not been and will not be registered under the Securities Act of 1933 and the general account has not been registered as an investment company under the Investment Company Act of 1940. Accordingly, neither the general account nor any interests therein are subject to the provisions of these acts. Nationwide has been advised that the staff of the SEC has not reviewed the disclosure in this prospectus relating to the Fixed Account. Disclosure regarding the Fixed Account, however, is subject to certain generally-applicable provisions of the federal securities laws relating to accuracy and completeness of statements made in prospectuses.
Minimum Guaranteed Interest Rate
Nationwide guarantees that Cash Value allocated to the Fixed Account will accrue interest daily at an effective annual rate that Nationwide determines without regard to the actual investment experience of the general account. Interest crediting rates are set at the beginning of each calendar quarter but are subject to change at any time. Nationwide will credit any interest in excess of the guaranteed interest crediting rate at its sole discretion. Nationwide may not credit any interest in excess of the guaranteed interest crediting rate and different rates may apply to different Premium allocations or exchanges.
Currently, the Fixed Account is the only fixed investment option available under the policy. In the future, Nationwide may offer one or more additional fixed accounts with characteristics that differ from those of the current option, but is under no obligation to do so. The effective annual rate Nationwide declares for the Fixed Account will never be less than 3%.
Interest Crediting Risks and Lapse
The policy owner assumes the risk that the actual credited interest rate may not exceed the guaranteed interest crediting rate. Premiums applied to the policy at different times may receive different interest crediting rates. The interest crediting rate may also vary for new Premium versus Sub-Account transfers. Interest credited to the Fixed Account may be insufficient to pay the policy's charges. Additional Premium payments may be required over the life of the policy to prevent it from Lapsing.
Nationwide Claims-Paying Ability
Guaranteed benefits or interest crediting associated with the Fixed Account is a general account obligation of Nationwide. Therefore, any guaranteed benefit, interest crediting, and the policy owner's right to receive payment, is subject to Nationwide’s claims-paying ability and may be subordinate to other claims on the general account in the event Nationwide becomes insolvent.
Restrictions on Transfers to and from the Fixed Account
Prior to the policy's Maturity Date, the policy owner may make transfers involving the Fixed Account. These transfers will be in dollars. Nationwide may impose limits on the dollar amount, percentage of Cash Value, number, and/or frequency of transfers involving the Fixed Account, see Fixed Account Transfers for details about restrictions that apply to transfers to and from the Fixed Account.
Variable Investment Options
The variable investment options available under the policy are Sub-Accounts that correspond to mutual funds that are registered with the SEC. The mutual funds' registration with the SEC does not involve the SEC's supervision of the management or investment practices or policies of the mutual funds. The mutual funds are designed primarily as investments for variable annuity contracts and variable life insurance policies issued by insurance companies.
Each Sub-Account's assets are held separately from the assets of the other Sub-Accounts. The result is that each Sub-Account operates independently of the other Sub-Accounts so the income or losses of one Sub-Account will not affect the Investment Experience of any other Sub-Account.
Underlying mutual funds in the separate account are NOT publicly traded mutual funds. They are only available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies, or in some cases, through participation in certain qualified pension or retirement plans.
The investment advisors of the underlying mutual funds may manage publicly traded mutual funds with similar names and investment objectives. However, the underlying mutual funds are NOT directly related to any publicly traded mutual fund. Policy owners should not compare the performance of a publicly traded fund with the performance of underlying mutual funds participating in the separate account. The performance of the underlying mutual funds could differ substantially from that of any publicly traded funds.
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The particular underlying mutual funds available under the policy may change from time to time. Specifically, underlying mutual funds or underlying mutual fund share classes that are currently available may be removed or closed off to future investment. New underlying mutual funds or new share classes of currently available underlying mutual funds may be added. In the case of new share class additions, future allocations may be limited to the new share classes. The policy owner will receive notice of any such changes that effect the policy. Not all underlying mutual funds may be available in every state.
Some underlying mutual funds may assess short-term trading fees. The separate account will collect the short-term trading fee at the time of the transfer by reducing the amount transferred. All short-term trading fees collected are remitted to the underlying mutual fund, see Short-Term Trading Fees and Appendix A: Sub-Account Information.
In the future, additional underlying mutual funds managed by certain financial institutions, brokerage firms, or their affiliates may be added to the separate account. These additional underlying mutual funds may be offered exclusively to purchasing customers of the particular financial institution or brokerage firm, or through other exclusive distribution arrangements.
The Sub-Accounts available through this policy invest in underlying mutual funds of the companies listed below. For a complete list of the available Sub-Accounts, see Appendix A: Sub-Account Information. For more information on the underlying mutual funds, refer to the prospectus for the mutual fund. To obtain free copies of prospectuses for the underlying mutual funds, policy owners can contact Nationwide using any of the methods described in Contacting the Service Center.
• AllianceBernstein Variable Products Series Fund, Inc.
• American Century Variable Portfolios II, Inc.
• American Century Variable Portfolios, Inc.
• BlackRock Variable Series Funds, Inc.
• Delaware VIP Trust
• Deutsche Variable Series II
• Dimensional
• Dreyfus
• Dreyfus Investment Portfolios
• Dreyfus Variable Investment Fund
• Federated Insurance Series
• Fidelity Variable Insurance Products Fund
• Franklin Templeton Variable Insurance Products Trust
• Goldman Sachs Variable Insurance Trust
• Guggenheim Variable Fund
• Invesco
• Ivy Funds Variable Insurance Portfolios
• Janus Aspen Series
• Lord Abbett Series Fund, Inc.
• MFS® Variable Insurance Trust
• MFS® Variable Insurance Trust II
• Nationwide Variable Insurance Trust
• Neuberger Berman Advisers Management Trust
• Northern Lights Variable Trust
• Oppenheimer Variable Account Funds
• PIMCO Variable Insurance Trust
• T. Rowe Price Equity Series, Inc.
• The Universal Institutional Funds, Inc.
• VanEck VIP Trust
• Wells Fargo Variable Trust
 
 
Valuation of Accumulation Units
Nationwide accounts for the value of a policy owner's interest in the Sub-Accounts by using Accumulation Units. The value of each Accumulation Unit varies daily based on the Investment Experience of the underlying mutual fund in which the Sub-Account invests. Nationwide uses each underlying mutual fund's Net Asset Value (NAV) to calculate the daily Accumulation Unit value for the corresponding Sub-Account. Note, however, that the Accumulation Unit value will not equal the underlying mutual fund's NAV. This daily Accumulation Unit valuation process is referred to as "pricing" the Accumulation Units, see How Sub-Account Investment Experience is Determined.
Accumulation Units are priced as of the New York Stock Exchange's (NYSE) close of business, normally 4:00 p.m. EST, on each day that it is open. Nationwide will price Accumulation Units on each day that the NYSE is open for business. Any transactions received after the close of the NYSE will be priced as of the next Valuation Period. Nationwide will not price Accumulation Units on these recognized holidays:
• New Year's Day
• Martin Luther King, Jr. Day
 
 
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• Presidents' Day
• Good Friday
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving
• Christmas
In addition, Nationwide will not price Accumulation Units if:
(1) trading on the NYSE is restricted;
(2) an emergency exists making disposal or valuation of securities held in the separate account impracticable; or
(3) the SEC, by order, permits a suspension or postponement for the protection of security holders.
SEC rules and regulations govern when the conditions described in items (1) and (2) exist.
How Sub-Account Investment Experience is Determined
Sub-Account allocations are accounted for in Accumulation Units. A policy owner's interest in the Sub-Accounts is represented by the number of Accumulation Units owned by the policy owner. The number of Accumulation Units associated with a given Sub-Account allocation is determined by dividing the dollar amount allocated to the Sub-Account by the Accumulation Unit value for the Sub-Account. The number of Sub-Account Accumulation Units owned by a policy owner will not change except when Accumulation Units are redeemed to process a requested surrender, transfer, loan, or to take policy charges, or when additional Accumulation Units are purchased with Premium and loan repayments.
Initially, Nationwide sets the Accumulation Unit value at $10 for each Sub-Account. Thereafter, the daily value of Accumulation Units in a Sub-Account will vary depending on the Investment Experience of the underlying mutual fund in which the Sub-Account invests. Nationwide accounts for these performance fluctuations by using a "net investment factor," as described below, in the daily Sub-Account valuation calculations. Changes in the net investment factor may not be directly proportional to changes in the NAV of the mutual fund shares.
Nationwide determines the net investment factor for each Sub-Account on each Valuation Period by dividing (a) by (b), where:
(a) is the sum of:
• the NAV per share of the mutual fund held in the Sub-Account as of the end of the current Valuation Period; and
• the per share amount of any dividend or income distributions made by the mutual fund held in the Sub-Account (if the date of the dividend or income distribution occurs during the current Valuation Period); plus or minus
• a per share charge or credit for any taxes reserved for as a result of the Sub-Account's investment operations if changes to the law result in a modification to the tax treatment of the separate account; and
(b) is the NAV per share of the mutual fund held in the Sub-Account determined as of the end of the immediately preceding Valuation Period.
Nationwide determines the Sub-Account’s Accumulation Unit value at the end of each Valuation Period. The Accumulation Unit value for any Valuation Period is determined by multiplying the Accumulation Unit value as of the prior Valuation Period by the net investment factor for the Sub-Account for the current Valuation Period.
Transfers Among and Between the Policy Investment Options
Sub-Account Transfers
Policy owners may request transfers to or from the Sub-Accounts once per Valuation Period, subject to the terms and conditions described in this prospectus and the prospectuses of the underlying mutual funds. Transfers will be implemented by redeeming Accumulation Units from the Sub-Account(s) indicated by the policy owner and using the redemption proceeds to purchase Accumulation Units in another Sub-Account(s) as directed by the policy owner. The net result is that the policy owner's Cash Value will not change (except due to standard market fluctuations), but the number and allocation of Accumulation Units within the policy will change.
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Neither the policies nor the mutual funds are designed to support active trading strategies that require frequent movement between or among Sub-Accounts (sometimes referred to as "market-timing" or "short-term trading"). A policy owner who intends to use an active trading strategy should consult his/her registered representative and request information on other Nationwide policies that offer mutual funds that are designed specifically to support active trading strategies.
Nationwide discourages (and will take action to deter) short-term trading in this policy because the frequent movement between or among Sub-Accounts may negatively impact other investors in the policy. Short-term trading can result in:
• the dilution of the value of the investors' interests in the mutual fund;
• mutual fund managers taking actions that negatively impact performance (i.e., keeping a larger portion of the mutual fund assets in cash or liquidating investments prematurely in order to support redemption requests); and/or
• increased administrative costs due to frequent purchases and redemptions.
To protect investors in this policy from the negative impact of these practices, Nationwide has implemented, or reserves the right to implement, several processes and/or restrictions aimed at eliminating the negative impact of active trading strategies. Nationwide cannot guarantee that attempts to deter active trading strategies will be successful.
If Nationwide is unable to deter active trading strategies, the performance of the Sub-Accounts that are actively traded may be adversely impacted. Policy owners remaining in the affected Sub-Account will bear any resulting increased costs.
Short-Term Trading Fees
Some underlying mutual funds assess a short-term trading fee in connection with transfers from a Sub-Account that occur within 60 days after the date of the allocation to the Sub-Account. The fee is assessed against the amount transferred and is paid to the underlying mutual fund. These fees compensate the mutual fund for any negative impact on fund performance resulting from short-term trading. Some underlying mutual funds may refer to short-term trading fees as "redemption fees." See Appendix A: Sub-Account Information for a complete list of available underlying mutual funds, including those that assess short-term trading fees.
U.S. Mail Restrictions
Nationwide monitors transfer activity in order to identify those who may be engaged in harmful trading practices. Transaction reports are produced and examined. Generally, a policy may appear on these reports if the policy owner (or a third party acting on their behalf) engages in a certain number of "transfer events" in a given period. A "transfer event" is any transfer, or combination of transfers, occurring in a given Valuation Period. For example, if a policy owner executes multiple transfers involving 10 Sub-Accounts in one Valuation Period, this counts as one transfer event. A single transfer occurring in a given Valuation Period that involves only two Sub-Accounts (or one Sub-Account if the transfer is made to or from a fixed investment option) will also count as one transfer event.
As a result of this monitoring process, Nationwide may restrict the form in which transfer requests will be accepted. In general, Nationwide will adhere to the following guidelines:
Trading Behavior Nationwide's Response
Six or more transfer events in one calendar quarter Nationwide will mail a letter to the policy owner notifying them that:
(1) they have been identified as engaging in harmful trading practices; and
(2) if their transfer events exceed 11 in two consecutive calendar quarters or 20 in one calendar year, the policy owner will be limited to submitting transfer requests via U.S. mail.
More than 11 transfer events in two consecutive calendar quarters
OR
More than 20 transfer events in one calendar year 		Nationwide will automatically limit the policy owner to submitting transfer requests via U.S. mail.
For purposes of Nationwide's transfer policy, U.S. mail includes standard U.S. mail, expedited U.S. mail, and expedited delivery via private carrier.
Each January 1st, Nationwide will start the monitoring anew, so that each policy starts with zero transfer events each January 1. See, however, the Other Restrictions provision below.
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Managers of Multiple Policies
Some investment advisors/representatives manage the assets of multiple Nationwide policies pursuant to trading authority granted or conveyed by multiple policy owners. These multi-policy advisors will be required by Nationwide to submit all transfer requests via U.S. mail.
Other Restrictions
Nationwide reserves the right to refuse or limit transfer requests, or take any other action it deems necessary, in order to protect policy owners and beneficiaries from the negative investment results that may result from short-term trading or other harmful investment practices employed by some policy owners (or third parties acting on their behalf). In particular, trading strategies designed to avoid or take advantage of Nationwide's monitoring procedures (and other measures aimed at curbing harmful trading practices) that are nevertheless determined by Nationwide to constitute harmful trading practices, may be restricted.
Any restrictions that Nationwide implements will be applied consistently and uniformly. The policy owner will be notified if a transfer request is rejected. If a short-term trading fee is assessed, the policy owner will receive a confirmation notice.
Underlying Mutual Fund Restrictions and Prohibitions
Pursuant to regulations adopted by the SEC, Nationwide is required to enter into written agreements with the underlying mutual funds which allow the underlying mutual funds to:
(1) request the taxpayer identification number, international taxpayer identification number, or other government issued identifier of any policy owner;
(2) request the amounts and dates of any purchase, redemption, transfer, or exchange request ("transaction information"); and
(3) instruct Nationwide to restrict or prohibit further purchases or exchanges by policy owners that violate policies established by the underlying mutual fund (whose policies may be more restrictive than Nationwide’s policies).
Nationwide is required to provide such transaction information to the underlying mutual funds upon their request. In addition, Nationwide is required to restrict or prohibit further purchases or requests to exchange into an underlying mutual fund upon instruction from the underlying mutual fund. Nationwide and any affected policy owner may not have advance notice of such instructions from an underlying mutual fund to restrict or prohibit further purchases or requests to exchange into an underlying mutual fund. If an underlying mutual fund refuses to accept a purchase or request to exchange into the underlying mutual fund, Nationwide will keep any affected policy owner in their current underlying mutual fund allocation.
Fixed Account Transfers
Prior to the policy's Maturity Date, the policy owner may make transfers involving the Fixed Account. These transfers will be in dollars. Nationwide may impose limits on the dollar amount, percentage of Cash Value, number, and/or frequency of transfers involving the Fixed Account. Contact the Service Center for information regarding restrictions in effect for the Fixed Account at the time of a Premium payment or transfer request.
Transfers to and/or from the Fixed Account may be restricted as follows:
• Transfers to and/or from may be prohibited during the first policy year
• Only one transfer to and/or from may be permitted every 12 months
Transfers to the Fixed Account may be restricted as follows:
• Transfers to that exceed 20% of the value allocated to the Sub-Accounts (as of the end of the prior Valuation Period) may not be permitted
• Transfers to that would result in the Fixed Account value exceeding 30% of the total Cash Value may not be permitted.
Transfers from the Fixed Account may be restricted as follows:
• Transfers from, of more than 20% of the Fixed Account value in any policy year (as of the end of the previous policy year), may not be permitted.
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Amounts transferred to the Fixed Account may be credited interest at different rates, see Fixed Account. Transfers from the Fixed Account will be on a last-in, first-out basis (LIFO). Any restrictions that Nationwide implements will be applied consistently and uniformly.
Contacting the Service Center
All inquiries, paperwork, information requests, service requests, and transaction requests should be made to the Service Center:
• by telephone at 1-800-848-6331 (TDD 1-800-238-3035)
• by mail to Nationwide Life Insurance Company, P.O. Box 182835, Columbus, Ohio 43218-2835
• by fax at 1-888-634-4472
• by Internet at www.nationwide.com.
Nationwide reserves the right to restrict or remove the ability to submit service requests via Internet, phone, or fax upon written notice.
Not all methods of communication are available for all types of requests. To determine which methods are permitted for a particular request, refer to the specific transaction provision in this prospectus, or call the Service Center. Requests submitted by means other than described in this prospectus could be returned or delayed.
Service and transaction requests will generally be processed in the Valuation Period they are received at the Service Center as long as the request is in good order, see Valuation of Accumulation Units. Good order generally means that all necessary information to process the request is complete and in a form acceptable to Nationwide. If a request is not in good order, Nationwide will take reasonable actions to obtain the information necessary to process the request. Requests that are not in good order may be delayed or returned. Nationwide reserves the right to process any transaction request sent to a location other than the Service Center in the Valuation Period it is received at the Service Center. On any day the post office is closed, Nationwide is unable to retrieve service and transaction requests that are submitted by mail. This will result in a delay of the delivery of those requests to the Service Center.
Nationwide may be required to provide information about a specific policy to government regulators. If mandated under applicable law, Nationwide may be required to reject a Premium payment and to refuse to process transaction requests for transfers, surrenders, loans, and/or Death Benefit Proceeds until instructed otherwise by the appropriate regulator.
Nationwide will use reasonable procedures to confirm that instructions are genuine and Nationwide will not be liable for following instructions that it reasonably determined to be genuine. Nationwide may record telephone requests. Telephone and computer systems may not always be available. Any telephone system or computer can experience outages or slowdowns for a variety of reasons. The outages or slowdowns could prevent or delay processing. Although Nationwide has taken precautions to support heavy use, it is still possible to incur an outage or delay. To avoid technical difficulties, submit transaction requests by mail.
The Policy
General Information
The policy is a legal contract. It will comprise and be evidenced by: a written contract; any Riders; any endorsements; the Policy Data Pages; and the application, including any supplemental application. The benefits described in the policy and this prospectus, including any optional Riders or modifications in coverage, may be subject to Nationwide’s underwriting and approval. In addition to the terms and conditions of the policy, policy owner rights are governed by this prospectus and protected by federal securities laws and regulations. Nationwide will consider the statements made in the application as representations, and will rely on them as being true and complete. However, Nationwide will not void the policy or deny a claim unless a statement is a material misrepresentation. If a policy owner makes an error or misstatement on the application, Nationwide will adjust the Death Benefit and Cash Value accordingly.
Due to state law variations, the terms, benefits, programs and Riders described in this prospectus may vary or may not be available depending on the state in which the policy is issued. Possible state law variations include, but are not limited to, Rider terms, availability of certain investment options, free look rights, policy exchange rights, policy Lapse and/or
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reinstatement requirements, and surrender charge, suicide, and incontestability durations. This prospectus describes all the material features of the policy. State variations are subject to change without notice at any time. To review a copy of the policy and any Riders or endorsements for the state in which the policy will be issued, contact the Service Center.
Any modification or waiver of Nationwide’s rights or requirements under the policy must be in writing and signed by Nationwide’s president or corporate secretary. No agent may bind Nationwide by making any promise not contained in the policy.
Nationwide may modify the policy, its operations, or the separate account’s operations to meet the requirements of any law or regulation issued by a government agency to which the policy, Nationwide, or the separate account is subject. Nationwide may modify the policy to assure that it continues to qualify as a life insurance policy under federal tax laws. Nationwide will notify policy owners of all modifications and will make appropriate endorsements to the policy.
The policy is nonparticipating, meaning that Nationwide will not be contributing any operating profits or surplus earnings toward the policy Proceeds.
To the extent permitted by law, policy benefits are not subject to any legal process on the part of a third-party for the payment of any claim, and no right or benefit will be subject to the claims of creditors (except as may be provided by assignment).
It is important to remember that the portion of any amounts allocated to Nationwide’s general account and any guaranteed benefits Nationwide may provide under the policy exceeding the value of amounts held in the separate account are subject to Nationwide’s claims paying ability.
Any money Nationwide pays, or that is paid to Nationwide, must be in the currency of the United States of America.
In order to comply with the USA Patriot Act and rules promulgated thereunder, Nationwide has implemented procedures designed to prevent policies described in this prospectus from being used to facilitate money laundering or the financing of terrorist activities.
Nationwide’s businesses are highly dependent upon its computer systems and those of its business partners. This makes Nationwide potentially susceptible to operational and information security risks resulting from a cyber-attack. These risks include direct risks, such as theft, misuse, corruption and destruction of data maintained by Nationwide, and indirect risks, such as denial of service attacks on service provider websites and other operational disruptions that impede Nationwide’s ability to electronically interact with service providers. Cyber-attacks affecting Nationwide, the underlying mutual funds, intermediaries, and other service providers may adversely affect Nationwide and Policy Values. In connection with any such cyber-attacks, Nationwide and/or its service providers and intermediaries may be subject to regulatory fines and financial losses and/or reputational damage. Cyber security risks may also impact the issuers of securities in which the underlying mutual funds invest, which may cause the underlying mutual funds to lose value. Although Nationwide undertakes substantial efforts to protect its computer systems from cyber-attacks, including internal processes and technological defenses that are preventative or detective, and other controls designed to provide multiple layers of security assurance, there can be no guarantee that Nationwide, its service providers, or the underlying mutual funds will avoid losses affecting the policy due to cyber-attacks or information security breaches in the future.
In the event that Policy Values are adversely affected as a result of the failure of Nationwide’s cyber-security controls, Nationwide will take reasonable steps to restore Policy Values to the levels that they would have been had the cyber-attack not occurred. Nationwide will not, however, be responsible for any adverse impact to Policy Values that result from the policy owner or its designee’s negligent acts or failure to use reasonably appropriate safeguards to protect against cyber-attacks.
Policy Owner and Beneficiaries
Policy Owner
The policy belongs to the owner named in the application or as a result of a valid assignment. The policy owner may name a contingent owner who will become the policy owner if the policy owner dies before Proceeds become payable. Otherwise, ownership will pass to the policy owner's estate, if the policy owner is not the Insured.
Policy Owner Rights
The policy owner may exercise all policy rights in accordance with policy terms while the policy is In Force, subject to Nationwide’s approval. These rights include, but are not limited to, the following:
• changing the policy owner, contingent owner, and beneficiary;
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• assigning, exchanging, and/or converting the policy;
• requesting transfers, policy loans, and partial surrenders or a complete surrender; and
• changing insurance coverage such as death benefit option changes, adding or removing Riders, and/or increasing or decreasing the Total Specified Amount.
These rights are explained in greater detail throughout this prospectus.
Subject to Nationwide’s approval, the policy owner may name a different policy owner or contingent owner while the policy is In Force by submitting a written request to the Service Center. Any such change request will become effective as of the date signed, however, it will not affect any payment made or action taken before the change is received and recorded by Nationwide. There may be adverse tax consequences to changing parties of the policy.
Beneficiaries
The principal right of a beneficiary is to receive the Death Benefit Proceeds if the Insured dies while the policy is In Force. While the policy is In Force, a policy owner may name more than one beneficiary, designate primary and contingent beneficiaries, change or add beneficiaries, and/or direct Nationwide to distribute the Proceeds other than as described below.
If a primary beneficiary dies before the Insured, Nationwide will pay the Death Benefit Proceeds to the surviving primary beneficiaries. Unless specified otherwise by the policy owner, Nationwide will pay multiple primary beneficiaries in equal shares. A contingent beneficiary will become the primary beneficiary if all primary beneficiaries die before the Insured and before any Proceeds become payable. A policy owner may name more than one contingent beneficiary. Unless specified otherwise by the policy owner, Nationwide will also pay multiple contingent beneficiaries in equal shares.
Requests to change or add beneficiaries must be submitted in writing to the Service Center. Nationwide may require that the policy owner send the policy for endorsement before the change is recorded. Any such change request will become effective as of the date signed, however, it will not affect any payment made or action taken before the change is received and recorded by Nationwide.
To Purchase
The policy is available for Insureds between the issue ages of 0 and 85. To purchase the policy, prospective purchasers must submit a completed application and the required initial Premium payment.
Nationwide must receive evidence of insurability that satisfies its underwriting standards (this may require a medical examination) before it will issue a policy. Nationwide can provide prospective purchasers with the details of its underwriting standards upon request. Nationwide reserves the right to reject any application for any reason permitted by law. Additionally, Nationwide reserves the right to modify its underwriting standards on a prospective basis for newly issued policies at any time.
The minimum initial Base Policy Specified Amount in most states is $50,000 for non-preferred policies and $100,000 for preferred policies. The basic distinction between the non-preferred and preferred underwriting classifications is that Nationwide expects the Insured under a preferred policy to live longer. Nationwide reserves the right to modify the minimum Base Policy Specified Amount on a prospective basis for newly issued policies at any time.
Coverage
Nationwide will issue the policy only if the underwriting process has been completed, the application is approved, and the proposed Insured is alive and in the same condition of health as described in the application. However, full insurance coverage will take effect only after the minimum initial Premium is paid. Monthly charges are deducted from the policy’s Cash Value beginning on the Policy Date.
Coverage Effective Date
Insurance coverage will begin and be In Force on the Policy Date shown on the Policy Data Page. For a change in the Base Policy Specified Amount and/or Rider Specified Amount, the effective date will be on the next monthly anniversary from the Policy Date after Nationwide approves the request. It will end upon the Insured's death, once the Proceeds are paid or when the policy matures. Coverage will also end if the policy Lapses.
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Temporary Insurance Coverage
Temporary Insurance Coverage
Temporary insurance coverage (of an amount equal to the Total Specified Amount, up to $1,000,000) may be available for no charge before full insurance coverage takes effect. Prospective purchasers must submit a temporary insurance agreement and make an initial Premium payment. The amount of this initial Premium payment will depend on the initial Total Specified Amount, choice of death benefit option, and any Riders elected. Temporary insurance coverage will remain In Force for no more than 60 days from the date of the temporary insurance agreement. If full coverage is denied, the temporary insurance coverage will terminate five days from the date Nationwide mails a termination notice (accompanied by a refund equal to the Premium payment made). If full coverage is approved, the temporary insurance coverage will terminate on the date that full insurance coverage takes effect. Allocation of the initial Net Premium will be determined by the right to examine law of the state in which the policy is issued.
To Cancel (Examination Right)
Under state law a policy owner may, for a limited time, cancel the policy and receive a refund (commonly referred to as the "free look" period). The length of the free look period depends on state law and may vary depending on whether the policy was purchased to replace another policy. The minimum "free look" period is 10 days.
In order to cancel the policy during the free look period, a policy owner must submit a written cancellation request and return the policy either to the sales representative or to the Service Center. Nationwide will honor free look cancellation requests received by the last day of the free look period (if returned by US mail, the request must be post-marked by the last day of the free look period).
Free look cancellation requests received after the close of business on the date the free look period expires will not be canceled free of charge. If the policy is canceled, Nationwide will treat the policy as if it was never issued.
Within seven days of a free look cancellation request, Nationwide will refund the amount prescribed by state law. The amount Nationwide refunds will be Cash Value or, in certain states, the greater of the initial Premium payment or the policy's Cash Value.
Allocation of Net Premium During Free Look Period
Where state law requires the return of initial Premium for free look cancellations, Nationwide will allocate initial Net Premium to the Fixed Account as instructed. Nationwide will allocate initial Net Premium allocated to the Sub-Accounts to the available money market Sub-Account until the free look period expires. At the expiration of the free look period, Nationwide will transfer the amount held in the money market Sub-Account to the requested Sub-Accounts based on the allocation instructions in effect at the time of the transfer.
Where state law requires the return of Cash Value, Nationwide will allocate all of the initial Net Premium to the designated Sub-Accounts and Fixed Account based upon the allocation instructions in effect at the time, .
Premium Payments
The policy does not require a scheduled payment of Premium to keep it In Force. The policy will remain in effect as long as the conditions that cause the policy to Lapse do not exist, see Unfavorable Investment Experience. Upon request, we will furnish Premium receipts.
Initial Premium
The amount of initial Premium will depend on the initial Total Specified Amount of insurance, the death benefit option, and any Riders elected. Generally, the higher the required initial Total Specified Amount, the higher the initial Premium will be. Similarly, because Death Benefit Option 2 and Death Benefit Option 3 provide for a potentially greater Death Benefit than Death Benefit Option 1, Death Benefit Option 2 and Death Benefit Option 3 may require a higher amount of initial Premium. Also, the age, health, and activities of the Insured will affect Nationwide’s determination of the risk of issuing the policy. In general, the greater this risk, the higher the initial Premium required.
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Whether Nationwide will issue full insurance coverage depends on the Insured meeting all underwriting requirements, payment of the initial Premium, and delivery of the policy while the Insured is alive. Nationwide will not delay delivery of the policy to increase the likelihood that the Insured is not still living. Depending on the outcome of the underwriting process, more or less Premium may be necessary to issue the policy. If Nationwide does not issue the policy, the Premium payment will be returned within two business days.
The policy owner may pay the initial Premium to the Service Center or to an authorized representative. The initial Premium payment must be at least $50, equal to the minimum monthly Premium. The initial Premium payment will not be applied to the policy until the underwriting process is complete. Allocation of initial Net Premium will be determined by the right to examine law of the state or territory where the policy is issued, see Right to Cancel (Examination Right).
Subsequent Premium payments will be allocated according to the allocation instructions in effect at the time the Premium is received.
Subsequent Premiums
This policy does not require a payment of a scheduled Premium amount to keep it In Force. It will remain In Force as long as the conditions that cause a policy to Lapse do not exist, see Lapse and Unfavorable Investment Experience. Premium payment reminder notices will be sent according to the Premium payment schedule selected by the policy owner. Additional Premium payments must be submitted to the Service Center. Each Premium payment must be at least $50. Upon request, Nationwide will furnish Premium payment receipts. Policy owners may make additional Premium payments at any time while the policy is In Force and prior to the Maturity Date, subject to the following:
• Nationwide may require satisfactory evidence of insurability before accepting any additional Premium payment that results in an increase in the policy's Net Amount At Risk.
• Nationwide will refund Premium payments that exceed the applicable premium limit established by the Code to qualify the policy as a contract for life insurance.
• Nationwide will monitor Premiums paid and will notify policy owners when the policy is in jeopardy of becoming a modified endowment contract, see Taxes.
• Nationwide may require that policy Indebtedness be repaid before accepting any additional Premium payments.
Cash Value
Nationwide will determine the Cash Value at least monthly. Cash Value will fluctuate daily and there is no guaranteed Cash Value. At the end of any given Valuation Period, the Cash Value is equal to the sum of:
• the value of the Accumulation Units allocated to the Sub-Accounts, see Valuation of Accumulation Units;
• amounts allocated to the Fixed Account, including credited interest; and
• amounts allocated to the policy loan account (only if a loan was taken), including credited interest, see Policy Loans.
Surrenders and policy charges and deductions will reduce the Cash Value of the policy. If Cash Value is a factor in calculating a benefit associated with the policy, such as the Death Benefit or a benefit associated with an elected Rider, the value of that benefit will also fluctuate, including being reduced due to surrenders and policy charge deductions. If the policy is surrendered or Lapses, the Cash Value will be reduced by the amount of any Indebtedness.
On any date during the policy year, the Cash Value equals the Cash Value on the preceding Valuation Period, plus any Net Premium applied since the previous Valuation Period, minus any policy charges, plus or minus any investment results, and minus any partial surrenders.
To Change Coverage
After the first policy year, the policy owner may request to change the Total Specified Amount. To change the Total Specified Amount, the policy owner must submit a written request to the Service Center. Changes to the Total Specified Amount will become effective on the next monthly policy anniversary after Nationwide approves the request unless the policy owner requests and Nationwide approves a different date. However, no change will take effect unless the Cash Surrender Value would be sufficient to keep the policy In Force for at least three months. Nationwide may limit the number of Total Specified Amount changes to one increase and one decrease each policy year. Changes to the Total Specified Amount will typically alter the Death Benefit.
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Increases
To increase the Total Specified Amount, the policy owner must provide satisfactory evidence of insurability. The Insured must be Attained Age 85 or younger at the time of the request. Any request to increase the Total Specified Amount must be at least $10,000. An increase in the Total Specified Amount may cause an increase in the Net Amount At Risk. Because the Cost of Insurance Charge is based on the Net Amount At Risk, and because there will be a separate cost of insurance rate for the increase, this will usually cause the policy's Cost of Insurance Charge to increase. An additional Surrender Charge schedule will also apply whenever the Base Policy Specified Amount is increased. An increase in the Base Policy Specified Amount and/or Rider Specified Amount may cause an increase to the amount of subsequent Premium payments needed to keep the policy from Lapsing, see Lapse.
Decreases
The policy owner may request to decrease the Total Specified Amount. Nationwide applies Total Specified Amount decreases to the most recent Base Policy Specified Amount and/or Rider Specified Amount increase and continues applying the decrease backwards while still maintaining the original Total Specified Amount. Nationwide will deny any request to reduce the Base Policy Specified Amount below the minimum Base Policy Specified Amount shown on the Policy Data Page. Nationwide will also deny any request that would disqualify the policy as a contract for life insurance.
To Exchange
The policy owner has an exchange right under the policy. At any time within the first 24 months of coverage from the Policy Date, the policy owner may surrender the policy and use the Cash Surrender Value to purchase a new policy on the Insured's life without evidence of insurability.
To invoke this right, the policy must be In Force and not in the Grace Period, and the policy owner must submit a written request to the Service Center on approved forms.
The new policy may be one of Nationwide’s available fixed benefit individual life insurance policies. The death benefit on the new policy may not be greater than the Death Benefit on this policy immediately prior to the exchange date. The new policy will have the same Total Specified Amount, Policy Date, and issue age. Nationwide will base Premium payments on the rates in effect for the same sex, Attained Age, and underwriting class of the Insured on the exchange date, unless otherwise required by state law. The policy owner may transfer Indebtedness to the new policy.
Exchange requests must be made on Nationwide forms and submitted to the Service Center. The policy must be In Force and not in a Grace Period. The policy owner must pay a Surrender Charge if applicable and surrender the policy to Nationwide. The policy owner must pay any money due on the exchange (any amount needed to ensure that the Cash Surrender Value of the new policy is the same as the Cash Surrender Value of this policy). The policy owner may request that any excess of the Cash Surrender Value of this policy over the Cash Surrender Value of the new policy be paid to the policy owner. The exchange may have adverse tax consequences. The new policy will take effect on the exchange date only if the Insured is alive. This policy will terminate when the new policy takes effect.
After the first 24 months of coverage, the policy owner may still surrender the policy and use the Cash Surrender Value to purchase a new policy on the Insured's life. However, issuance of the new policy will depend on the Insured providing satisfactory evidence of insurability.
To Terminate or Surrender
There are several ways that the policy can terminate. The policy will automatically terminate when the Insured dies, the policy matures, or the Grace Period ends. The policy will also terminate if it is fully surrendered.
Terminating the policy may result in adverse tax consequences.
Generally, if the policy has a Cash Surrender Value in excess of the Premiums paid, upon surrender the excess will be included in the policy owner’s income for federal tax purposes, see Taxes. The Cash Surrender Value will be reduced by outstanding Indebtedness, see Policy Loans.
To Assign
The policy owner may assign any or all rights under the policy while it is In Force, subject to Nationwide’s approval. The beneficiary's interest will be subject to the person or entity to which the policy owner assigned rights. Assignments must be in writing on a form satisfactory to Nationwide. Assignments will become effective on the date signed, unless otherwise
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specified by the policy owner, and are subject to any payments or actions taken by Nationwide before it is received and recorded at the Service Center. Nationwide is not responsible for the sufficiency or validity of any assignment. Assignments will be subject to any Indebtedness, policy liens, garnishments, court orders, and any previous assignments.
Reminders, Reports and Illustrations
Nationwide will send scheduled Premium payment reminders and transaction confirmations to policy owners upon request. Nationwide will also send semi-annual and annual statements that show:
• the Total Specified Amount;
• minimum monthly Premiums;
• Premiums paid;
• all charges since the last report;
• the current Cash Value;
• the Cash Surrender Value; and
• Indebtedness.
Confirmations of individual financial transactions, such as transfers, partial Surrenders, and loans are generated and mailed automatically. Copies may be obtained by contacting the Service Center. Alternatively, policy owners may receive information faster and reduce the amount of mail received by signing up for the eDelivery program. Go to www.nationwide.com/login to change document delivery preferences.
Nationwide will send these reminders and reports to the address provided on the application unless directed otherwise. At any time after the first policy year, policy owners may ask for an illustration of future benefits and values under the policy, see Illustration Charge.
IMPORTANT NOTICE REGARDING DELIVERY
OF SECURITY HOLDER DOCUMENTS
When multiple copies of the same disclosure document(s), such as prospectuses, supplements, proxy statements and semi-annual and annual reports are required to be mailed to multiple policy owners in the same household, Nationwide will mail only one copy of each document, unless notified otherwise by the policy owner(s). Household delivery will continue for the life of the policies. A policy owner can revoke their consent to household delivery and reinstitute individual delivery by contacting the Service Center. Individual delivery will resume within 30 days after receiving such notification.
Standard Policy Charges
Deductions for charges are taken from Premium payments and/or the Cash Value, as applicable, to compensate Nationwide for the services and benefits provided, the costs and expenses incurred, and the risks assumed. Certain expenses may be recovered utilizing more than one charge. Nationwide may generate a profit from any of the charges assessed under the policy.
Monthly charges are deducted from Cash Value beginning on the Policy Date. Charges are taken proportionally from the Sub-Accounts and the Fixed Account, except for the Mortality and Expense Risk Charge which is only deducted proportionally from the Sub-Accounts. Charges taken against allocations to the Sub-Accounts are assessed by redeeming Accumulation Units. The number of Accumulation Units redeemed is determined by dividing the dollar amount of the charge by the Accumulation Unit value for the Sub-Account. Nationwide does not deduct policy charges or Rider charges from the Cash Value attributable to the policy loan account. For a complete description of how interest is credited and charged, see Policy Loans.
Policy and Rider charges reflect costs and risks associated with issuing the policy and Rider(s). Certain charges will vary based upon the individual characteristics of the Insured. The Insured is assigned to an underwriting class based upon his/her age, sex (if not unisex classified), smoker status, type of evidence of insurability, and insurability status. The policy owner can request an illustration of specific costs and/or see the Policy’s Data Pages for information about specific charges of their policy.
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Nationwide may change policy and/or Rider charges and rates under the policy at any time. Changes in policy and/or Rider charges and rates will vary by changes in future expectations for factors including, but not limited to, Nationwide’s investment earnings, mortality experience, persistency experience, expenses, including reinsurance expenses, and taxes. Changes to policy and/or Rider charges and rates will be on a uniform basis for Insured's of the same Issue Age, sex, rate class, rate type, any Substandard Rating, Base Policy Specified Amount and Spouse Life Insurance Rider Specified Amount (if applicable) whose policies have been In Force for the same length of time. If a change in the charges or rates causes an increase to the policy and/or Rider charges, the policy's Cash Value could decrease. If a change in the charges or rates causes a decrease to the policy and/or Rider charges, the policy's Cash Value could increase. Any changes will be determined in accordance with state law. Policy and Rider charges will never exceed the maximum charges shown in the fee tables, see In Summary: Fee Tables.
Premium Load
Premium Load is comprised of the Sales Load and Premium Taxes. It will vary by policy based on the amount of Premium paid. It is deducted from each Premium payment to partially reimburse Nationwide for sales expenses and Premium taxes, and other expenses, including acquisition costs. The Premium Load also provides revenue to compensate Nationwide for assuming risks associated with the policy, and revenue that may be a profit.
Sales Load
Sales Load (as part of the Premium Load) is deducted from each Premium payment to cover sales expenses. The current Sales Load is $5 per $1,000 of Premium. The guarantee maximum Sales Load is $25 per $1,000 of Premium.
Nationwide may waive the Sales Load on the initial Premium paid into this policy as part of a Nationwide sponsored exchange program to another Nationwide policy as permitted under the securities laws and/or rules or by order of the SEC.
Premium Taxes
Premium Taxes (as part of the Premium Load) are deducted from each Premium payment to reimburse Nationwide for state and local premium taxes (at the estimated rate of 2.25%) and for federal premium taxes (at the estimated rate of 1.25%). The current (and guaranteed maximum) Premium Tax is $35 per $1,000 of Premium. This amount is not the actual amount of the tax liability Nationwide incurs. It is an estimated amount. If the actual tax liability is more or less, Nationwide will not adjust the charge retroactively.
Short-Term Trading Fees
Some mutual funds offered under the policy may assess (or reserve the right to assess) a short-term trading fee (sometimes called "redemption fee" by the mutual fund) in connection with transfers from a Sub-Account that occur within 60 days after the date of allocation to the Sub-Account.
Short-Term Trading Fees are intended to compensate the mutual fund (and policy owners with interests allocated in the Sub-Account) for the negative impact on mutual fund performance that may result from frequent, short-term trading strategies. Short-Term Trading Fees are not intended to affect the large majority of policy owners not engaged in such strategies.
Any Short-Term Trading Fee assessed by any mutual fund available in conjunction with the policy will equal 1% of the amount determined to be engaged in short-term trading. Short-Term Trading Fees will only apply to those Sub-Accounts corresponding to mutual funds that charge such fees (see the mutual fund's prospectus). Any Short-Term Trading Fees paid are retained by the mutual fund and are part of the mutual fund's assets. Policy owners are responsible for monitoring the length of time allocations are held in any particular Sub-Account. Nationwide will not provide advance notice of the assessment of any applicable Short-Term Trading Fee.
For a complete list of the Sub-Accounts that assess (or reserve the right to assess) a Short-Term Trading Fee, see Appendix A: Sub-Account Information.
If a Short-Term Trading Fee is assessed, the mutual fund will charge the separate account 1% of the amount determined to be engaged in short-term trading. The separate account will then pass the Short-Term Trading Fee on to the specific policy owner that engaged in short-term trading by deducting an amount equal to the Short-Term Trading Fee from that policy owner's Sub-Account value. All such fees will be remitted to the mutual fund; none of the fee proceeds will be retained by Nationwide or the separate account.
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When multiple allocations are made to a Sub-Account that is subject to Short-Term Trading Fees, transfers out of that Sub-Account will be considered to be made on a first in/first out (FIFO) basis for purposes of determining Short-Term Trading Fees. In other words, Accumulation Units held the longest time will be treated as being transferred first, and Accumulation Units held for the shortest time will be treated as being transferred last.
Some transactions are not subject to Short-Term Trading Fees, including:
• scheduled and systematic transfers, such as those associated with dollar cost averaging programs and asset rebalancing programs (if available);
• policy loans;
• full or partial surrenders; or
• payment of the Proceeds.
New share classes of certain currently available mutual funds may be added as investment options under the policy. These new share classes may require the assessment of Short-Term Trading Fees. When these new share classes are added, new Premiums and transfers to the Sub-Accounts in question may be limited to the new share class.
Illustration Charge
Illustration Charges are not deducted from Premium payments or Cash Value; rather they are paid at the time of an illustration request. Nationwide currently waives the Illustration Charge. The charge is intended to compensate Nationwide for the administrative costs of generating illustrations. Nationwide may elect in the future to assess an Illustration Charge. It will not exceed $25 per illustration requested.
Partial Surrender Fee
The policy owner may request a partial surrender after the first year from the Policy Date while the policy is In Force. The charge for a partial surrender compensates Nationwide for the administrative costs in calculating and generating the surrender amount. The maximum fee is the lesser of $25 or 2% of the dollar amount of the partial surrender. However, currently, there is no charge for a partial surrender. The Cash Value available for a partial surrender is subject to any Indebtedness.
Surrender Charge
A surrender charge will apply if the policy is surrendered or Lapsed. A surrender charge may apply if the Base Policy Specified Amount is decreased. There are two components of the surrender charge meant to cover policy underwriting, or the underwriting component, and sales expenses, or the sales component, including processing the application, conducting any medical exams, determining insurability and the Insured's underwriting class, and establishing policy records. The surrender charge equals the underwriting component and 26.5% of the sales component. The Surrender Charge is deducted based on the following schedule:
Policy year calculated from the Policy Date or
effective date of Base Policy Specified Amount increase: 		  Percentage of Initial
Surrender Charge
1
   100%
2
   100%
3
   90%
4
   80%
5
   70%
6
   60%
7
   50%
8
   40%
9
   30%
After 9
   0
The underwriting component is the product of the Base Policy Specified Amount, divided by 1,000, and the administrative target premium. The administrative target premium is actuarially derived, and is used to determine how much to charge per Premium payment for underwriting expenses. The administrative target premium varies by the Insured's age when the policy was issued.
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The sales expense component is the lesser of the following two amounts: The first amount is the product of the Base Policy Specified Amount, divided by 1,000, and the surrender target premium. The surrender target premium is actuarially derived, and is used to figure out how much to charge per Premium payment for sales expenses. The surrender target premium varies by: the Insured's sex; issue age; and the underwriting class. The second amount is the sum of all Premium payments made during the first year from the Policy Date.
Nationwide will calculate a separate surrender charge based on the initial Base Policy Specified Amount and each increase in the Base Policy Specified Amount, which are referred to as "segments". The surrender charge for each segment, when added together, will equal the total surrender charge. A surrender charge will also apply when the aggregate surrenders exceed 25% of a segment's Base Policy Specified Amount. Nationwide defers and accrues the charge on partial surrenders that do not exceed 25% of the segment's Base Policy Specified Amount. Once partial surrenders exceed 25%, the current and accrued charge will be assessed against the policy’s Cash Value. In determining the 25% level, Nationwide uses a last in-first out method, so that the latest segment reaches the 25% level first. Nationwide may change this practice and assess the surrender charge against all partial surrenders. The surrender charge for a decrease in the Base Policy Specified Amount will be calculated as if the policy was surrendered, though only a portion will be deducted from the policy's Cash Value. The amount of surrender charge deducted will be a product of the surrender charge and the decrease in Base Policy Specified Amount divided by the Base Policy Specified Amount before the decrease.
The surrender charge will typically be greater for a policy with: an older Insured; a male insured; a higher Specified Amount; more first year Premium; or a higher-risk Insured. If the Death Benefit option is changed and the change does not result in a different Net Amount At Risk, no surrender charge will be deducted.
The surrender charge may be waived if the policy is surrendered in exchange for a plan of permanent fixed life insurance offered by Nationwide, subject to the following:
• the exchange and waiver may be subject to new evidence of insurability and underwriting approval; and
• the following Riders have not been invoked:
❍ Premium Waiver Rider;
❍ Deduction (of Fees and Expenses Waiver Rider); or
❍ Long-Term Care Rider.
A new surrender charge may apply to the policy received in the exchange.
Cost of Insurance Charge
A Cost of Insurance Charge is deducted proportionally from Sub-Account and Fixed Account allocations on the Policy Date and on each monthly anniversary of the Policy Date. The charge is intended to cover Nationwide’s expenses associated with providing expected mortality benefits and assuming certain risks associated with the policy, and to cover other expenses, including acquisition costs, and state and federal taxes. Nationwide may also profit from this charge.
The Cost of Insurance is the product of the Net Amount At Risk and the cost of insurance rate. The cost of insurance rate will vary by the Insured's age, sex, underwriting class, any Substandard Ratings, how long the policy has been In Force, and the Base Policy Specified Amount and Spouse Life Insurance Rider Specified Amount (if applicable). The cost of insurance rate is based on Nationwide’s expectations as to future mortality and expense experience, investment earnings, persistency, and taxes.
There will be a separate cost of insurance rate for the initial Base Policy Specified Amount and any Base Policy Specified Amount increase. The cost of insurance rate(s) will never be greater than what is shown on the Policy Data Pages.
Flat Extras and Substandard Ratings
Nationwide may inquire about the occupation and activities of the Insured through the underwriting process. If the activities or occupation of the Insured cause an increased health or accident risk, it may result in the Insured receiving a Substandard Rating. If this is the case, Nationwide may add an additional component to the Cost of Insurance Charge called a "Flat Extra Charge." The Flat Extra Charge accounts for the increased risk of providing life insurance when one or more of these factors apply to the Insured. The Flat Extra Charge is a component of the total Cost of Insurance Charge, so if applied it will be deducted from Cash Value on the Policy Date and the monthly anniversary of the Policy Date. The
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monthly Flat Extra Charge is between $0.00 and $2.08 per $1,000 of the Net Amount At Risk. If a Flat Extra Charge is applied, it is shown in the Policy Data Pages. In no event will the Flat Extra Charge result in the Cost of Insurance Charge exceeding the maximum charge shown in In Summary: Fee Tables.
Nationwide will uniformly apply a change in any cost of insurance rate for Insureds of the same age, sex, underwriting class, Substandard Ratings, and Base Policy Specified Amount and Spouse Life Insurance Rider Specified Amount (if applicable), if the policies have been In Force for the same length of time. If a change in the cost of insurance rates causes an increase to a policy’s Cost of Insurance Charge, the policy's Cash Value could decrease. If a change in the cost of insurance rates causes a decrease to the policy’s Cost of Insurance Charge, the policy's Cash Value could increase.
Mortality and Expense Risk Charge
A Mortality and Expense Risk Charge is deducted monthly from the Cash Value allocated to the Sub-Accounts. The charge will vary by policy based on the amount of Cash Value allocated to the Sub-Accounts and the length of time the policy has been In Force. The charge compensates Nationwide for assuming the risk associated with mortality and expense risk costs. The mortality risk is that the Insured will not live as long as expected. The expense risk is that the costs of issuing and administering the policy will be more than expected. This charge is in addition to any charges assessed by the mutual funds underlying the Sub-Accounts.
Though the maximum guaranteed mortality and expense risk charge is higher, currently, Nationwide deductes this monthly charge according to the following schedule. During the first through 15 years from the Policy Date, the charge is $0.50 per $1,000 on the first $25,000 of Cash Value allocated to the Sub-Accounts, and $0.25 per $1,000 on $25,001 up to $250,000 of Cash Value allocated to the Sub-Accounts. This charge is $0.08 per $1,000 of Cash Value allocated to the Sub-Accounts over $250,000. Beginning in Policy year 16, this charge is: $0.50 per $1000 on the first $25,000 of the Cash Value allocated to the Sub-Accounts, and $0.08 per $1,000 of the Cash Value allocated to the Sub-Accounts over $25,000.
Administrative Charge
An administrative charge is deducted proportionally from the policy's Sub-Account and Fixed Account allocations on the Policy Date and each monthly anniversary of the Policy Date. The charge reimburses Nationwide for the costs of maintaining the policy, including accounting and record-keeping. The charge is currently $10 per month through the first year from the Policy Date and $5 per month thereafter. The maximum guaranteed charge is $10 per month through the first year from the Policy Date and $7.50 per month thereafter.
Mutual Fund Operating Expenses
In addition to the policy charges, there are also charges associated with the mutual funds in which the Sub-Accounts invest. Policy owners do not pay these charges directly, but these charges do affect the value of the assets allocated to the Sub-Accounts because these charges are reflected in the underlying mutual fund prices that Nationwide subsequently uses to value Sub-Account units. The underlying mutual funds' prospectuses contain additional information about these charges. Policy owners may contact the Service Center to receive, free of charge, copies of the prospectuses for any of the underlying mutual funds available under the policy.
Reduction of Charges
The policy may be purchased by individuals, corporations, and other entities. Nationwide may reduce or eliminate certain charges (Sales Load, Surrender Charge, administrative charges, Cost of Insurance Charge, or other charges) where the size or nature of the group allows Nationwide to realize savings with respect to sales, underwriting, administrative, or other costs. Where prohibited by state law, Nationwide will not reduce charges associated with the policy.
Nationwide determines the eligibility and the amount of any reduction by examining a number of factors, including: the number of policies owned with different insureds; the total premium Nationwide expects to receive; the total cash value of commonly owned policies; the nature of the relationship among individual insureds; the purpose for which the policies are being purchased; the length of time Nationwide expects the individual policies to be in force; and any other circumstances which are rationally related to the expected reduction in expenses.
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Nationwide may lower commissions to the selling broker-dealer and/or increase charge back of commissions paid for policies sold with reduced or eliminated charges. Policy owners should consult with a registered representative about reductions available and, where appropriate, obtain an illustration demonstrating the impact of any reduced charges on the policy.
Nationwide may change both the extent and the nature of the charge reductions. Any charge reductions will be applied in a way that is not unfairly discriminatory to policy owners and will reflect the differences in costs of services provided.
Entities considering purchasing the policy should note that in 1983, the U.S. Supreme Court held in Arizona Governing Committee v. Norris that certain annuity benefits provided by employers' retirement and fringe benefit programs may not vary between men and women on the basis of sex. The policies are based upon actuarial tables that distinguish between men and women unless the purchaser is an entity and requests non-sex distinct tables be used for underwriting. The policies generally provide different benefits to men and women of the same age. Accordingly, employers and employee organizations should consider, in consultation with legal counsel, the impact of Norris on any employment related insurance or benefit program before purchasing the policy.
A Note on Charges
During a policy's early years, the expenses Nationwide incurs in distributing and establishing the policy exceed the deductions. Nevertheless, Nationwide expects to make a profit over time because variable life insurance is intended to be a long-term financial investment. Accordingly, Nationwide has designed the policy with features and investment options that it believes support and encourage long-term ownership.
Nationwide makes many assumptions and accounts for many economic and financial factors when establishing the policy's fees and charges. The following is a discussion of some of the factors that are relevant to the policy's pricing structure.
Distribution, Promotional, and Sales Expenses
Distribution, promotional, and sales expenses include amounts paid to broker-dealer firms as commissions, expense allowances, and marketing allowances. Nationwide refers to these expenses collectively as "total compensation."
Nationwide has the ability to customize the total compensation package of its broker-dealer firms. Nationwide may vary the form of compensation paid or the amounts paid as commission, expense allowance, or marketing allowance; however, the total premium based compensation will not exceed the maximum, which is 99% of first year premiums and 3% of renewal premium after the first year. Commission may also be paid on an asset-based amount instead of a premium based amount. If an asset-based commission is paid, it will not exceed 0.45% of the non-loaned cash value per year.
Marketing allowance is based on a firm’s ability and demonstrated willingness to promote and market Nationwide’s products. How any marketing allowance is spent is determined by the firm, but generally will be used to finance firm activities that may contribute to the promotion and marketing of Nationwide’s products.
The actual amount and/or forms of total compensation paid depend on factors such as the level of premiums Nationwide receives from respective broker-dealer firms and the scope of services the firms provide. Some broker-dealer firms may not receive maximum total compensation.
Individual registered representatives typically receive a portion of the commissions/total compensation paid, depending on their arrangement with their broker-dealer firm. Policy owners should consult the registered representative to know the exact compensation arrangement associated with this policy.
Information on Underlying Mutual Fund Service Fee Payments
Nationwide's Relationship with the Underlying Mutual Funds
The underlying mutual funds incur expenses each time they sell, administer, or redeem their shares. The separate account aggregates policy owner purchase, redemption, and transfer requests and submits net or aggregated purchase/redemption requests to each underlying mutual fund daily. The separate account (not the policy owners) is the underlying mutual fund shareholder. When the separate account aggregates transactions, the underlying mutual fund does not incur the expense of processing individual transactions it would normally incur if it sold its shares directly to the public. Nationwide incurs these expenses instead.
Nationwide also incurs the distribution costs of selling the policy (as discussed above), which benefit the underlying mutual funds by providing policy owners with Sub-Account options that correspond to the underlying mutual funds.
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An investment advisor or subadvisor of an underlying mutual fund or its affiliates may provide Nationwide or its affiliates with wholesaling services that assist in the distribution of the policy and may pay Nationwide or its affiliates to participate in educational and/or marketing activities. These activities may provide the advisor or subadvisor (or their affiliates) with increased exposure to persons involved in the distribution of the policy.
Types of Payments Nationwide Receives
In light of the above, the underlying mutual funds or their affiliates make certain payments to Nationwide or its affiliates (the "payments"). The amount of these payments is typically based on a percentage of assets invested in the underlying mutual funds attributable to the policies and other variable policies Nationwide and its affiliates issue, but in some cases may involve a flat fee. These payments are made for various purposes, including payments for the services provided and expenses incurred by the Nationwide companies in promoting, marketing and administering the policies and underlying funds. Nationwide may realize a profit on the payments received.
Nationwide or its affiliates receive the following types of payments:
• Underlying mutual fund 12b-1 fees, which are deducted from underlying mutual fund assets;
• Sub-transfer agent fees or fees pursuant to administrative service plans adopted by the underlying mutual fund, which may be deducted from underlying mutual fund assets; and
• Payments by an underlying mutual fund's advisor or subadvisor (or its affiliates). Such payments may be derived, in whole or in part, from the advisory fee, which is deducted from underlying mutual fund assets and is reflected in mutual fund charges.
Furthermore, Nationwide benefits from assets invested in affiliated underlying mutual funds (i.e., Nationwide Variable Insurance Trust) because these affiliates receive compensation from the underlying mutual funds for investment advisory, administrative, transfer agency, distribution, and/or other services provided. Overall, Nationwide may receive more revenue with respect to affiliated underlying mutual funds than unaffiliated underlying mutual funds.
Nationwide took into consideration the anticipated mutual fund service fee payments from the underlying mutual funds when it determined the charges imposed under the policies (apart from fees and expenses imposed by the underlying mutual funds). Without these mutual fund service fee payments, Nationwide would have imposed higher charges under the policy.
Amount of Payments Nationwide Receives
For the year ended December 31, 2015, the underlying mutual fund service fee payments Nationwide and its affiliates received from the underlying mutual funds did not exceed 0.75% (as a percentage of the average daily net assets invested in the underlying mutual funds) offered through the policy or other variable policies that Nationwide and its affiliates issued. Payments from investment advisors or subadvisors to participate in educational and/or marketing activities have not been taken into account in this percentage.
Most underlying mutual funds or their affiliates have agreed to make payments to Nationwide or its affiliates, although the applicable percentages may vary from underlying mutual fund to underlying mutual fund and some may not make any payments at all. Because the amount of the actual payments Nationwide or its affiliates receive depends on the assets of the underlying mutual funds attributable to the policy, Nationwide and its affiliates may receive higher payments from underlying mutual funds with lower percentages (but greater assets) than from underlying mutual funds that have higher percentages (but fewer assets).
For policies owned by an employer sponsored retirement plan subject to ERISA, upon a plan trustee’s request, Nationwide will provide a best estimate of plan-specific, aggregate data regarding the amount of underlying mutual fund service fee payments Nationwide received in connection with the plan’s investments either for the previous calendar year or plan year, if the plan year is not the same as a calendar year.
Identification of Underlying Mutual Funds
Nationwide may consider several criteria when identifying the underlying mutual funds, including some or all of the following: investment objectives, investment process, investment performance, risk characteristics, investment capabilities, experience and resources, investment consistency, and fund expenses. Nationwide also considers whether the underlying mutual fund's advisor or subadvisor is an affiliate or whether the underlying mutual fund, its advisor, its subadvisor(s), or an affiliate will make mutual fund service fee payments to Nationwide or its affiliates.
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There may be underlying mutual funds with lower fees and expenses, as well as other variable policies that offer underlying mutual funds with lower fees and expenses. Policy owners should consider all of the fees and charges of the policy in relation to its features. Higher policy fees and charges and underlying mutual fund fees and expenses have a direct effect on the policy’s investment performance.
Policy Riders and Rider Charges
Riders are available for purchase to design the policy to meet the policy owner’s specific needs. The policy owner may purchase any Rider (except for both the Premium Waiver and Deduction of Fees and Expenses Waiver Riders, simultaneously). Once the policy is In Force, to add a Rider, Nationwide may require further evidence of insurability. The policy owner may only elect the Adjusted Sales Load Life Insurance Rider when purchasing the policy.
The availability, operation, and benefits of the Riders may vary by the state where the policy is issued. The policy owner will be charged for a Rider: so long as the policy remains In Force and the Rider's term has not expired; until the benefit has been paid; or the policy owner decides he or she no longer need the benefit and contacts the Service Center in writing.
Adjusted Sales Load Life Insurance Rider
The benefit associated with the Adjusted Sales Load Life Insurance Rider is the replacement of all or a portion of the up-front Premium Load (comprised of the Sales Load and Premium Taxes) with a monthly Rider charge. A policy owner may elect the number of years (from one to seven) that Premium Load would be replaced. A Premium Load would be assessed on any amount that is not replaced by the Rider.
Availability
This Rider is only available to purchase at the time of application.
Adjusted Sales Load Life Insurance Rider Charge
A monthly Adjusted Sales Load Life Insurance Rider Charge is assessed to compensate Nationwide for the sales and premium tax expenses that it will not collect in the form of Premium Load. The aggregate monthly Rider charges will be greater than the amount Nationwide would have deducted as Premium Load. The monthly charge is the product of aggregate Premiums paid since the Policy Date, the portion of Premium Load replaced (expressed as a whole percentage of Premiums paid), and the factor of 0.0001354. The Rider's charge may vary. Each Premium payment made during the selected Rider period will cause the Rider's charge to increase. How long the Rider charge is assessed will also vary. The Rider charge will be assessed for nine policy years, plus the number of years (from one to seven) that Premium Load is replaced (with a maximum Rider charge period of 15 years). However, if a policy owner stops making Premium payments during that one to seven-year period, the Rider charge will only be assessed for nine policy years, plus the number of years that Premium payments were actually made.
For example, upon election, the policy owner anticipated making Premium payments for five years. Therefore, the policy owner could expect to have the Rider charge assessed for 14 years (nine years plus five years). However, the policy owner actually makes the last Premium payment in policy year three, and does not make any additional Premium payments. Since the policy owner did not get full "use" of the Rider (the policy owner only received three years worth of Premium Load replacement), the Rider charge will only be assessed for 12 policy years (nine years plus the three years' worth of benefit received).
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If the policy terminates within the first 10 policy years, Nationwide will deduct from the Cash Surrender Value an amount to compensate it for the Premium Load waived, but not recovered, as a Rider charge. The amount deducted from the Cash Surrender Value will equal the product of the actual Premium Load replaced by the Rider (in dollars) and the percentage from the following table that corresponds to the number of years the policy has been In Force.
Policy Year   Percentage
1
   100%
2
   90%
3
   80%
4
   70%
5
   60%
6
   50%
7
   40%
8
   30%
9
   20%
10
   10%
11 and later
   0%
For example, the policy owner elected to replace the Premium Load for seven years. During the fifth policy year, the policy owner terminates the policy. During the five years the policy was In Force, $10,000 of Premium was paid. The amount of Premium Load that the Rider replaced is $400 ($40 for each $1,000 of Premium). Therefore, Nationwide will deduct $240 (60% of $400) from the policy’s Cash Surrender Value.
The Adjusted Sales Load Life Insurance Rider Charge is deducted proportionally from the Sub-Account and Fixed Account allocations. Because the Adjusted Sales Load Life Insurance Rider Charge is deducted from the policy's Cash Value, purchasing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value.
Children's Term Insurance Rider
Subject to underwriting approval, a policy owner may purchase term life insurance on the Insured's children at any time while the policy is In Force. If an insured child dies while the policy is In Force and before the Maturity Date, the policy pays a benefit to the named beneficiary. The insurance coverage for each insured child will continue (as long as the policy is In Force) until the earlier of: (1) the policy anniversary on or next following the date the Insured's child turns age 22; or (2) the policy anniversary on which the Insured would have reached Attained Age 65. Subject to certain conditions specified in the Rider, the Rider may be converted into a policy on the life of the insured child without evidence of insurability. The Rider will be effective until the Rider's term expires, until the benefit is paid, or until the Rider is terminated by written request to the Service Center.
Children’s Term Insurance Rider Charge
A monthly Children's Term Insurance Rider Charge will be deducted if this Rider is elected. The Children’s Term Insurance Rider Charge compensates Nationwide for providing term insurance on the lives of each Insured child. The Rider charge is $0.43 per $1,000 of the Children's Term Insurance Rider's Specified Amount and will be assessed as long as the policy is In Force and the Rider is in effect. The Rider charge will be the same, even if the number of children covered under the Rider changes. Nationwide may decline a request to add another child based on underwriting standards.
The Children's Term Insurance Rider Charge will be deducted proportionally from the Sub-Account and Fixed Account allocations. Because the Children’s Term Insurance Rider Charge is deducted from the policy's Cash Value, purchasing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value.
Long-Term Care Rider
The benefit associated with the Long-Term Care Rider is that, upon the Insured meeting certain eligibility requirements, the policy owner is paid a monthly benefit to assist with the expenses associated with nursing home care or home health care. Benefit payments represent an advance of a portion of the Total Specified Amount which will ultimately reduce the Cash Surrender Value and Death Benefit. In addition, if the remaining Death Benefit is less than 10% of the base Policy Specified Amount minus any Indebtedness when the Insured dies and the Rider is In Force, a residual Death Benefit of 10% of the quantity base Policy Specified Amount minus any Indebtedness will be paid. The Long-Term Care Rider has no Cash Surrender Value and no loan values.
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The maximum monthly benefit, which is determined by Nationwide at the time a request for benefits under the terms of the Rider is submitted, will be the lesser of:
(1) 2% of Long-Term Care Specified Amount in effect; or
(2) the per diem amount allowed by the Health Insurance Portability and Accountability Act times the number of days in the month.
The maximum lifetime benefit under any combination of home health care benefits and long-term care facility benefits is equal to the lesser of the Long-Term Care Specified Amount or the Total Specified Amount minus Indebtedness.
A policy owner may request to receive a monthly benefit less than the maximum subject to any minimum monthly benefit. Choosing a lesser amount could extend the length of the benefit period of the Long-Term Care Rider.
Decreases in the Total Specified Amount will result in a corresponding decrease in the Long-Term Care Specified Amount only if the Total Specified Amount is less than the Long-Term Care Specified Amount after the decrease.
State regulation of long-term care benefits will result in differences in this Rider's name, covered services, criteria for eligibility of benefit payment, cost of insurance charge factors, maximum monthly benefit amounts, minimum monthly benefit amounts, and availability of the 10% residual Death Benefit. State variations are subject to change without notice at any time. Contact the Service Center to obtain a copy of the Long-Term Care Rider applicable to the policy.
Availability
Subject to Nationwide's underwriting approval, the Long-Term Care Rider may be purchased at any time while the policy is In Force. If purchased six months or more after the Policy Date, Nationwide will require new evidence of insurability. Underwriting and approval of the Long-Term Care Rider is separate and distinct from underwriting and approval of the policy and Additional (insurance) Protection Rider. Therefore, it is possible that the underwriting risk class for the Long-Term Care Rider could differ from the policy and Additional (insurance) Protection Rider or that an Insured could qualify for the policy and Additional (insurance) Protection Rider and still be declined for the Long-Term Care Rider. There is a free look period associated with this Rider. Within 30 days of receipt of the Rider, the policy owner may return it to the sales representative who sold it, or to the Service Center. The Rider will be void and related charges will be refunded to the policy owner, see To Cancel (Examination Right).
Invoking the Rider
To invoke this Rider, the Insured must be certified by a licensed health care practitioner as: (1) having a severe cognitive impairment or (2) unable to do at least two of the following activities of daily living: bathing, continence, dressing, eating, using the toilet facilities, or transferring (moving into or out of bed, chair, or wheelchair) for a period of at least 90 days. The Insured must also be receiving qualified long-term care services specified in a plan of care submitted to Nationwide.
In addition, a 90-day waiting period, referred to as an "elimination period," must be satisfied before benefits are paid. Benefits will not be retrospectively paid for the elimination period. The elimination period can be satisfied by any combination of days of long-term care facility stay or days of home health care, as those terms are defined in the Rider. These days of care or services need not be continuous, but must be accumulated within a continuous period of 730 days. The elimination period has to be satisfied only once while the Rider is in effect. The benefit associated with the Rider may not cover all long-term care costs incurred. The benefits paid in association with the Rider are intended to be "qualified long-term care insurance" under federal tax law, and generally will not be taxable to the policy owner, see Taxes. See a tax advisor about the use of this Rider.
Terminating the Rider
This Rider will terminate when the policy matures, the Insured dies, the Policy Guard Rider is invoked, the Rider is terminated by written request to the Service Center, or the policy is terminated.
Long-Term Care Referral Service
If the Rider is elected, the Insured will have access to a national long-term care services referral network via a toll-free telephone number. Services include free consultation and tailored information to assist in planning and implementing a care plan. These services are currently provided through a third party. There is no separate additional charge for this service. This service is subject to availability and may be modified, suspended, or discontinued at any time upon 30 days written notice.
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Long-Term Care Rider Charge
A monthly charge is deducted from the Cash Value if this Rider is elected. The charge compensates Nationwide for providing long-term care benefits upon the Insured meeting certain eligibility requirements. The Rider Charge is the product of a long-term care cost of insurance rate and the lesser of the Long-Term Care Rider's Specified Amount and the policy's Net Amount At Risk. The long-term care cost of insurance rate is based on Nationwide’s expectations as to the Insured’s potential need for long-term care over time and will vary by the Insured's sex, Attained Age (in some states Issue Age), underwriting class, and any Substandard Ratings.
The Rider Charge will be deducted proportionally from the Sub-Accounts and Fixed Account allocations. Because the Rider Charge is deducted from the Cash Value, electing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value. Additionally, any benefits paid pursuant to this Rider will reduce the Cash Surrender Value and Death Benefit.
Note: The Long-Term Care Rider’s charge will be waived while Long-Term Care Rider benefits are being paid; however, all other monthly deductions will continue to be charged as long as the policy’s Cash Surrender Value is sufficient. If the policy's Cash Surrender Value is insufficient to cover all other monthly deductions while benefits are being paid under the Rider, all monthly deductions will be waived and the policy will not Lapse. This includes monthly deductions for other In Force Riders. Premium requirements for any death benefit guarantee feature of the policy or any elected Rider are not waived. Once the Long-Term Care Rider benefit is no longer being paid, e.g. the available benefit amount is exhausted or the Insured recovers, additional Premium may be necessary to prevent the policy from Lapsing. As a protection against unintentional Lapse, the policy owner may designate at least one other person to receive the notice of Lapse or termination of the policy for nonpayment of Premium, in addition to the policy owner.
Limitations
While Long-Term Care Rider benefits are being paid, the following are not permitted: loans, partial Surrenders, changes to the Total Specified Amount, changes in underwriting classification, rider additions, or changes in death benefit option.
The Rider does not provide a benefit for qualified long-term care services that result from suicide attempts, the commission of felonies, alcoholism or drug addiction, non-organic mental or psychoneurotic disorders, or war; or preexisting conditions not disclosed in the application if the need for services begins during the first six months after the Long-Term Care Rider effective date.
Claims
Written notice of a claim must be given within 30 days after the Insured begins receiving qualified long-term care services. Written proof of claim, consisting of detailed documentation that describes and confirms the Insured is chronically ill and is receiving qualified long-term care services, must be given within 90 days. If Nationwide determines that a benefit trigger has not been met, it will follow internal and external review processes consistent with applicable laws and regulations in the state of issue. The policy owner must give immediate notice when the receipt of qualified long-term care services has ceased or is no longer required. Nationwide, at its own expense, has the right to have the Insured examined as often as it may reasonably require while Long-Term Care Rider benefits are being paid.
Spouse Life Insurance Rider
The benefit associated with the Spouse Life Insurance Rider is a death benefit payable upon the death of the spouse named on the application ("Insured Spouse") to the designated beneficiary. If no beneficiary is designated, the benefit is payable to the Insured.
This Rider may be purchased at any time while the policy is In Force, subject to underwriting approval and the following age restrictions:
• the Insured must be between Attained Age 21 and 59 (this Rider is no longer available on or after the policy anniversary on which the Insured reaches Attained Age 59); and
• the Insured Spouse must be between Attained Age 18 and 69 at the time this Rider is elected.
This Rider will terminate on the earliest of: the policy anniversary on which the Insured Spouse reaches Attained Age 70, the date the Policy Guard Rider is invoked, the date the Rider is converted to a new policy, the date the policy matures, or until the Rider or policy is terminated by written request to the Service Center.
This Rider has a conversion right. The Insured Spouse may exchange this Rider's benefit for a level premium, level benefit, permanent plan of whole life insurance, subject to limitations.
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Spouse Life Insurance Rider Charge
A monthly Rider charge is deducted if this Rider is elected. The Spouse Life Insurance Rider Charge compensates Nationwide for providing term insurance on the life of the Insured Spouse. The Rider charge is the product of the Spouse Life Insurance Rider's Specified Amount and the Insured Spouse life insurance cost of insurance rate. The Insured Spouse life insurance cost of insurance rate is based on Nationwide’s expectations as to the mortality of the Insured Spouse. The Insured Spouse life insurance cost of insurance rate will vary by the Insured Spouse's sex, Attained Age, underwriting class, any Substandard Ratings, and the Spouse Life Insurance Rider's Specified Amount.
The Spouse Life Insurance Rider Charge will be deducted proportionally from the Sub-Account and Fixed Account allocations. Because the Spouse Life Insurance Rider Charge is deducted from Cash Value, purchasing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value. Decreases in the Base Policy Specified Amount may result in a corresponding decrease in the Spouse Life Insurance Rider's Specified Amount.
Accidental Death Benefit Rider
Subject to Nationwide’s underwriting approval, this Rider may be elected at any time. The Rider pays a benefit, in addition to the Death Benefit, to the named beneficiary upon the Insured's accidental death. The benefit continues until the Insured reaches Attained Age 70. The policy owner will be charged for this Rider: so long as the policy remains In Force and the Rider's term has not expired; until the benefit has been paid or until the policy owner terminates the Rider in writing at the Service Center.
The charge for this benefit is deducted from the policy's Cash Value, therefore this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value. Otherwise, the benefit of this Rider and the Death Benefit are independent of one another.
Accidental Death Benefit Rider Charge
The charge for this Rider compensates Nationwide for providing coverage in the event of the Insured's accidental death, meaning the Insured's death as a result of bodily injury caused by external, violent and accidental means from a cause other than a risk not assumed. The charge is the product of the Accidental Death Benefit Rider Specified Amount and the accidental death benefit cost of insurance rate. The accidental death benefit cost of insurance rate is based on Nationwide’s expectations as to the likelihood of the Insured's accidental death. The accidental death benefit cost of insurance rate will vary by the Insured's sex, Attained Age, underwriting class and any Substandard Ratings.
Premium Waiver Rider
Subject to Nationwide’s underwriting approval, the policy owner may purchase this Rider at any time.
Rider Benefit
The benefit associated with the Premium Waiver Rider is a monthly credit to the policy upon the Insured's total disability for six consecutive months not caused by a risk not assumed. Risks not assumed vary by state. Contact the Service Center to obtain a copy of the Premium Waiver Rider applicable to the policy.
The amount credited to the policy will be the lesser of:
• the Premium specified by the policy owner; or
• the average actual monthly Premiums paid over the last 36 months prior to the disability (or such shorter period of time that the policy has been In Force).
The monthly credit applied pursuant to the Rider may not be sufficient to keep the policy from Lapsing. Purchasing this Rider could help preserve the Death Benefit.
Benefit Duration
If the Insured is younger than age 63 at the time of the total disability, the Rider coverage continues until the Insured turns age 65. If the Insured is age 63 or older at the time of the total disability, the Rider coverage continues for two years. This Rider is effective until the Rider's term expires (unless a benefit is being paid under the Rider) or until the Rider is terminated by written request to the Service Center.
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Interaction with the Deduction (of Fees and Expenses) Waiver Rider
This Rider cannot be elected if the Deduction (of Fees and Expenses) Waiver Rider is elected. During the first three years from the Policy Date, the benefit payable under that Rider is sufficient to keep the policy from Lapsing where as the benefit payable under the Premium Waiver Rider is not sufficient to keep the policy from Lapsing, see Deduction (of Fees and Expenses) Waiver Rider.
Premium Waiver Rider Charge
A monthly Premium Waiver Rider Charge will be deducted if this Rider is elected. The Premium Waiver Rider Charge compensates Nationwide for crediting the policy with the amount of scheduled due and payable Premium payments upon the Insured's total disability for six consecutive months.
The Rider Charge is the product of the Rider's benefit (the monthly policy credit) and the premium waiver cost rate. The premium waiver cost rate is based on Nationwide’s expectations as to likelihood of the Insured's total disability for six consecutive months. The premium waiver cost rates will vary by policy based on the Insured's sex, Attained Age, underwriting class, and any Substandard Ratings.
The Premium Waiver Rider Charge will be deducted proportionally from the Sub-Account allocations and Fixed Account. Because the Premium Waiver Rider Charge is deducted from Cash Value, purchasing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value.
Change of Insured Rider
The Rider is only available in connection with policies issued to corporate entities or in other business contexts where the primary purpose is to provide protection or benefits to employees. The Rider is not available to individuals outside of these limited business purposes. The benefit associated with the Change of Insured Rider is that the policy owner may designate a new Insured at any time after the Policy Date, subject to insurability and the conditions below. If this Rider is invoked, the policy charges after the change will be based on the underwriting classification and characteristics of the new Insured.
The amount of insurance coverage after the change date will be the Total Specified Amount shown on the application to change the Insured provided that (1) the policy continues to qualify as life insurance under the Code, and (2) such Total Specified Amount equals or exceeds the minimum Total Specified Amount shown on the Policy Data Pages. Coverage of the new Insured will become effective on the change date. Coverage of the previous Insured will terminate on the day before the change date. The change date is the first monthly anniversary on or next following the date the change of Insured conditions are met. The Policy Date will not change.
Change of Insured conditions:
(1) At the time of the change, the new Insured must have the same business relationship to the policy owner as did the previous Insured.
(2) The new Insured may be required to submit satisfactory evidence of insurability.
(3) The new Insured must satisfy Nationwide’s underwriting requirements.
(4) The policy must be In Force and not be in a Grace Period at the time of the change.
(5) The new Insured must have been at least age 18 on the Policy Date.
(6) The policy owner must make written application to change the Insured to the Service Center.
Federal income tax consequences may result from a change in insured. For federal income tax purposes the substitution of a new insured is treated as an exchange of the policy for another life insurance policy. Because the new insured is not the same as the insured that was substituted, the tax free treatment for policy exchanges under Code Section 1035 may not be available because the requirement that the insured under the policy relate to the same individual would not be met; consequently, the excess Cash Surrender Value over the investment in the policy would be taxable as ordinary income. The foregoing is not comprehensive and cannot replace personalized advice provided by a competent tax professional. The policy owner should seek competent tax advice regarding the tax treatment of the policy when contemplating a change of insured.
Change of Insured Rider Charge
There is no charge associated with the Change of Insured Rider.
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Additional (insurance) Protection Rider
The benefit associated with the Additional (insurance) Protection Rider is term life insurance on the Insured, in addition to that under the base policy. The Death Benefit Proceeds attributable to the Additional (insurance) Protection Rider are payable to the beneficiary upon the Insured's death if the Additional (insurance) Protection Rider is still In Force. The Additional (insurance) Protection Rider has no cash value and no loanable value nor does it modify any cash or loan values of the base policy. Policy owners should request illustrations showing the impact of purchasing coverage with and without the Additional (insurance) Protection Rider.
Subject to Nationwide’s underwriting approval, this Rider may be purchased at any time while the policy is In Force and until the Insured reaches Attained Age 85. If purchased after the Policy Date, Nationwide will require evidence of insurability. The death benefit option for the base policy will also be the death benefit option for the Additional (insurance) Protection Rider.
The Additional (insurance) Protection Rider coverage terminates on the earliest of the following dates:
• The date the Insured dies;
• The Maturity Date of the base policy;
• The date the Rider and/or base policy Lapse; or
• The date the policy terminates for any reason.
The policy owner cannot extend the Additional (insurance) Protection Rider coverage beyond the policy's Maturity Date, see Extending Coverage Beyond the Maturity Date.
Additional (insurance) Protection Rider Impact
Cost of Insurance Charges
Electing coverage under the Additional (insurance) Protection Rider, as opposed to electing coverage only under the base policy, should lower the policy owner's overall cost of insurance. This is due in part to the broker-dealer firm receiving less overall compensation for selling a policy with the Additional (insurance) Protection Rider. It is also possible that less Premium may be required to maintain to the Death Benefit over the life of the policy or that increased Premium may be needed if the Additional (insurance) Protection Rider is not purchased.
Guaranteed Policy Continuation Provision
This provision protects the policy from Lapse under certain conditions, see Guaranteed Policy Continuation Provision. However, coverage elected under the Additional (insurance) Protection Rider is not covered by this provision beyond the fifth policy year. In comparison, the base policy may provide longer coverage, see Lapse.
Additional (insurance) Protection Rider Charge
A monthly Additional (insurance) Protection Rider Charge will be deducted if the Rider is elected. The Additional (insurance) Protection Rider Charge compensates Nationwide for providing term life insurance on the Insured.
The monthly cost of insurance charge for this Rider is determined by multiplying the Rider monthly cost of insurance rate by the Rider death benefit. The Rider death benefit will be based on the elected Death Benefit and may vary monthly. The Additional (insurance) Protection Rider cost of insurance rate is based on Nationwide’s expectation as to the Insured's mortality and expense experience. The Additional (insurance) Protection Rider cost of insurance rate will vary by the Insured's sex, Attatined Age, underwriting class, any Substandard Ratings, and the Total Specified Amount.
The Additional (insurance) Protection Rider Charge will be deducted proportionally from the Sub-Account and Fixed Account allocations. Because the Additional (insurance) Protection Rider Charge is deducted from Cash Value, purchasing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on the Cash Value.
Deduction (of Fees and Expenses) Waiver Rider
Subject to Nationwide’s underwriting approval, this Rider can be elected at any time so long as the policy is In Force and it is before the Policy Date on or following the date the Insured reaches age 59.
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Rider Benefit
The benefit associated with this Rider is a waiver of the policy's monthly deductions if the Insured becomes totally disabled, as defined in the Rider, for at least six consecutive months. No benefit is available if total disability results from a risk not assumed; risks not assumed may vary by state. Contact the Service Center to obtain a copy of the Deduction (of Fees and Expenses) Waiver Rider applicable to the policy.
Disability During the First Three Years from the Policy Date
If the Insured becomes totally disabled for six consecutive months within the first three years from the Policy Date, the benefit is a credit to the policy in an amount necessary to keep the policy In Force as opposed to a waiver of the monthly deductions. The Cash Value will increase by the amount in which the minimum monthly premium exceeds the monthly deductions, just as if the minimum monthly premium had been paid.
Disability Following the First Three Years from the Policy Date
If the Insured becomes totally disabled for six consecutive months any time after the first three years from the Policy Date, the benefit is a waiver of the policy's monthly deductions. For example, if the policy owner becomes totally disabled for six consecutive months two years and eight months from the Policy Date, for the first four months, the benefit would be a credit equal to the amount necessary to keep the policy In Force. After that, the Rider's benefit becomes a waiver of the policy's monthly charges.
Following the third year from the Policy Date, the Rider's benefit alone may not be sufficient to keep the policy from Lapsing. The policy owner may need to make additional premium payments to prevent Lapse. However, while the Rider's benefit is being paid, it will cost less on a monthly basis to keep the policy In Force.
Benefit Duration
The benefit duration depends on the Insured's age when total disability begins. Before age 60, the benefit continues for as long as the Insured is totally disabled (even if that disability extends past when the Insured reaches age 65). The benefit will end if you invoke the Policy Guard Rider. Between ages 60 and 63, the benefit continues until the Insured turns age 65. From age 63, the benefit lasts only for two years.
Interaction with Premium Waiver Rider

This Rider cannot be elected if the Premium Waiver Rider is elected. During the first three years from the Policy Date, the benefit payable under this Rider appears to be the same as the benefit payable under the Premium Waiver Rider, i.e., both Riders credit amounts to the policy. However, the monthly credit under this Rider will be sufficient to keep the policy from Lapsing but only during the first three years from the Policy Date. The benefit under the Premium Waiver Rider is not guaranteed to be sufficient to keep the policy from Lapsing, see Premium Waiver Rider.
Deduction (of Fees and Expenses) Waiver Rider Charge
The charge for this Rider compensates Nationwide for the risks assumed in crediting and/or waiving policy charges during the Insured's total disability. The charge is the product of the amount of periodic charges deducted from the policy on a monthly basis (excluding the cost for this Rider) and the deduction waiver cost rate. The deduction waiver cost rate is based on Nationwide’s expectations as to the likelihood of the Insured's total disability for six consecutive months. The deduction waiver cost rate varies by the Insured's sex, Attained Age, underwriting class, and any Substandard Ratings.
The charge for this Rider is deducted proportionately from the Sub-Account and Fixed Account allocations; therefore, purchasing this Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value.
Policy Guard Rider
A policy owner is able to prevent the policy from Lapsing due to Indebtedness by invoking the Policy Guard Rider, which provides a guaranteed paid-up insurance benefit. The Rider is designed to enable the policy owner of a policy with a substantially depleted Cash Value, due to Indebtedness, to potentially avoid the negative tax consequences associated with Lapsing the policy.
Note: Neither the IRS nor the courts have ruled on the tax consequences of invoking the Policy Guard Rider. It is possible that the IRS or a court could assert that the Indebtedness should be treated as a distribution, all or a portion of which could be taxable when the Rider is invoked. Consult with a tax advisor regarding the risks associated with invoking this Rider.
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Availability
All policies for which the guideline premium/cash value corridor life insurance qualification test is elected will automatically receive the Policy Guard Rider (state law permitting). The Rider is dormant until specifically invoked by the policy owner, at which time a one-time charge is assessed.
This Rider is not available for policies for which the cash value accumulation life insurance qualification test was elected.
Eligibility
The policy owner is eligible to invoke the Rider upon meeting the following conditions:
• Indebtedness reaches a certain percentage of the policy's Cash Value (the percentage will range from 84% to 99% based upon the life insurance qualification test and the Insured's Attained Age);
• The Insured is Attained Age 75 or older;
• The policy is currently In Force and has been In Force for at least 15 years;
• The policy's Cash Value is at least $100,000; and
• All amounts available for partial surrender not subject to federal income tax have been taken.
The first time the policy's Indebtedness reaches the percentage that makes the policy eligible for the Rider, Nationwide will notify the policy owner of the policy's eligibility to invoke the Rider. The letter will also describe the Rider, its cost, and its guaranteed benefits. The Rider may be invoked at any time, provided that the above conditions are met.
Note: The Long-Term Care Rider, the Spouse Life Insurance Rider, and the Deduction (of Fees and Expenses) Waiver Rider will terminate or will need to be terminated by the policy owner prior to invoking the Policy Guard Rider. An election to invoke the Policy Guard Rider is irrevocable.
After Nationwide receives a request to invoke the Rider, Nationwide will adjust the policy as follows:
(1) If not already in effect, the death benefit option will be changed to Death Benefit Option 1.
(2) The Total Specified Amount will be adjusted to equal the lesser of: (1) the Total Specified Amount immediately before the Rider was invoked; or (2) the Total Specified A mount that will cause the Death Benefit to equal the Minimum Required Death Benefit immediately after the charge for the Rider is deducted. This "new" Total Specified Amount will be used to calculate the Death Benefit pursuant to The Death Benefit provision.
(3) Any non-loaned Cash Value (after deduction of the Policy Guard Rider charge) will be transferred to the Fixed Account, where it will earn the minimum guaranteed fixed interest rate of the base policy (shown on the Policy Data Page).
After the above adjustments are made, the Indebtedness will continue to grow at the policy's loan charged rate, and the amount in the policy loan account will continue to earn interest at the policy's loan crediting rate. No additional policy charges will be assessed. No further loans may be taken from the policy and no withdrawals may be taken from the policy (except for a full policy surrender). Cash Value may not be transferred out of the Fixed Account. The Death Benefit will be the greater of the Total Specified Amount or the Minimum Required Death Benefit. The policy will remain as described above for the duration of the policy.
Policy Guard Rider Charge
The Policy Guard Rider Charge is a one-time charge deducted at the time the Rider is invoked, and is assessed against the Cash Value allocated to the Sub-Accounts and the Fixed Account. The charge is intended to cover the administrative costs and to compensate Nationwide for the risks associated with the Rider's guaranteed paid-up death benefit. The charge is the product of the policy's Cash Value and an age-based factor ranging from 0.15% to 15.70% as shown in the Policy Data Pages.
If the Cash Value less Indebtedness is insufficient to satisfy the charge, the Rider cannot be invoked without repaying enough Indebtedness to cover the charge.
Invoking the Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value. Additionally, any benefits paid pursuant to this Rider will reduce the Cash Surrender Value.
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Policy Owner Services
Dollar Cost Averaging
Dollar cost averaging is an investment strategy designed to reduce the investment risks associated with market fluctuations and promote a more stable Cash Value and Death Benefit over time. A policy owner may elect to participate in the dollar cost averaging program at the time of application or at a later date by submitting an election form to the Service Center. An election to participate in the program that is submitted after application will be effective at the end of the Valuation Period coinciding with the date requested or, if that date has passed or no date is specified, at the end of the Valuation Period during which the request was received, or the end of the free look period, whichever is later.
There is no charge for dollar cost averaging and dollar cost averaging transfers do not count as transfer events. Dollar cost averaging transfers will continue to be processed until there is no more value left in the originating investment option(s) or until a policy owner instructs Nationwide to terminate the service. Policy owners may direct Nationwide to automatically transfer specific amounts from the Fixed Account and the:
• Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class I
• Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class I
• Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class I
to any other Sub-Account. Certain Sub-Accounts may or may not be available depending on when the policy was purchased, see Appendix A: Sub-Account Information for details on Sub-Account availability. Transfers from the Fixed Account must be no more than 1/30th of the Fixed Account value at the time the program is elected.
Nationwide does not assure the success of these strategies and cannot guarantee that dollar cost averaging will result in a profit or protect against a loss. A policy owner should carefully consider his or her financial ability to continue these programs over a long enough period of time to purchase Accumulation Units when their value is low, as well as when their value is high. Nationwide may modify, suspend, or discontinue these programs at any time. Nationwide will notify policy owners in writing 30 days before doing so.
Enhanced Dollar Cost Averaging
Periodically, Nationwide may offer enhanced dollar cost averaging programs. When offered, these programs will be available only at the time of application. All or a portion of the initial Premium may be applied to a program. Subsequent Premium is not eligible for inclusion in the program. Under an enhanced dollar cost averaging program, the interest rate credited to the initial Premium allocated to the Fixed Account will be greater than the interest rate credited to standard Fixed Account allocations. Enhanced dollar cost averaging programs will last for one year and Cash Value attributable to the enhanced dollar cost averaging program will be transferred from the Fixed Account to the selected Sub-Account(s) based on the following schedule:
Beginning of Month   Fraction of Cash
Value Transferred
2
   1/11
3
   1/10
4
   1/9
5
   1/8
6
   1/7
7
   1/6
8
   1/5
9
   1/4
10
   1/3
11
   1/2
12
   Remaining Amount
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Asset Rebalancing
A policy owner may elect to participate in an asset rebalancing program. Asset rebalancing involves the automatic rebalancing of the Cash Value in the chosen Sub-Accounts (up to 20) on a periodic basis. Cash Value allocated to the Fixed Account is not eligible for asset rebalancing. A policy owner can schedule asset rebalancing to occur every three, six, or 12 months on days when Nationwide prices Accumulation Units. There is no charge for asset rebalancing and it does not count as a transfer event.
A policy owner may elect to participate in an asset rebalancing program at the time of application or at a later date by submitting an election form to the Service Center. Unless elected otherwise, asset rebalancing will not affect the allocation of Premiums paid after beginning the program. Manual transfers will not automatically terminate the program. Termination of asset rebalancing will only occur as a result of specific instruction by a policy owner to do so. Nationwide may modify, suspend, or discontinue asset rebalancing programs at any time.
Automated Income Monitor
Automated Income Monitor is an optional systematic partial surrender and/or policy loan program that may be elected at any time, at no additional cost. This program is only available to policies that are not modified endowment contracts.
Automated Income Monitor programs are intended for policy owners who wish to take an income stream of scheduled payments from the Cash Value of the policy. The income stream is generated via partial surrenders until the policy cost basis is depleted, then through policy loans. Taking partial surrenders and/or policy loans may result in adverse tax consequences, will reduce policy values and therefore limit the ability to accumulate Cash Value, and may increase the likelihood the policy will Lapse. Before requesting the Automated Income Monitor program, policy owners should consult with financial and tax advisors.
At the time of application for a program, Nationwide will provide policy owners with an illustration of the proposed income stream and impacts to the Cash Value, Cash Surrender Value, and Death Benefit. Policy owners must submit this illustration along with an application when electing an Automated Income Monitor program. Programs will commence at the beginning of the next monthly anniversary after Nationwide receives the election form and illustration. On each policy anniversary thereafter Nationwide will provide an updated In Force illustration to assist policy owners in determining whether to continue, modify, or discontinue an elected program. Policy owners may request modification or termination of a program at any time by written request to the Service Center.
A policy owner’s program will be based on the policy's Cash Surrender Value at the time of election and each succeeding policy anniversary, and on the following elections:
(1) Payment type:
(a) Fixed Amount: If a policy owner elected payments of a fixed amount, the amount received will not vary with policy Investment Experience; however, the length of time the elected payment amount can be sustained will vary based on the illustration assumptions below and the policy's Investment Experience; or
(b) Fixed Duration: If a policy owner elected payments for a fixed duration, the amount received during the first year will be based on the illustration assumptions below. After the first year, the amount will vary based on the illustration assumptions and policy Investment Experience to maintain the elected duration.
(2) Illustration assumptions:
(a) an assumed variable rate of return specified by the policy owner from the available options stated in the election form;
(b) minimum Cash Surrender Value targeted by the policy owner to have remaining on the policy's Maturity Date, or other date specified by the policy owner. This dollar amount is used to calculate available income. It is not guaranteed to be the Cash Surrender Value on the specified date;
(c) a policy owner may also request a change of death benefit option, or a decrease in Base Policy Specified Amount to be effective in conjunction with commencing a program or to occur at a future date; and
(d) payment frequency: monthly; quarterly; semi-annually; or annually. Payments on a monthly basis are made by direct deposit (electronic funds transfer) only.
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Generally, higher variable rate of return assumptions, a lower target Cash Surrender Value, and Death Benefit Option 1, will result in larger projected payments or longer projected durations. However, larger payments or longer duration may increase the likelihood the policy will Lapse.
Note: Policy owners are responsible for monitoring the policy to prevent Lapse. Nationwide will provide annual In Force illustrations based on current Cash Surrender Values and the elected illustration assumptions to assist policy owners with preventing Lapse. Policy owners may request modification or termination of a program at any time by written request to the Service Center.
Automated Income Monitor programs are subject to the following additional conditions:
(1) To prevent adverse tax consequences, a policy owner can authorize Nationwide to make scheduled payments via policy loan when:
(a) the policy's cost basis is reduced to zero;
(b) a partial surrender within the first 15 policy years would be a taxable event;
(c) or to prevent the policy from becoming a MEC, see Taxes.
  Note: Partial surrenders and policy loans taken under the Automated Income Monitor program are subject to the same terms and conditions as other partial surrenders and policy loans, see Partial Surrender and Policy Loans.
(2) While a program is in effect, no Premium payment reminder notices will be sent; however, Premium payments will be accepted.
(3) Programs will terminate on the earliest of the following:
(a) Nationwide’s receipt at the Service Center of a written request to terminate participation;
(b) at the time the policy enters a Grace Period or terminates for any reason;
(c) at the time of a requested partial surrender or policy loan outside the program;
(d) upon a change of policy owner;
(e) for income based on a fixed duration, the end of the period the policy owner specified at the time of election;
(f) on any policy anniversary when the current Cash Surrender Value is less than or equal to the target Cash Surrender Value assumption the policy owner specified;
(g) at any time the scheduled partial surrender or policy loan would cause the policy to fail to qualify as life insurance under Section 7702 of the Code; or
(h) the policy's Maturity Date.
Additionally, the program will terminate when one of the following Riders is invoked or begins providing benefits: the Policy Guard Rider and the Long-Term Care Rider.
Nationwide will notify policy owners upon termination of an Automated Income Monitor program. In addition, Nationwide may modify, suspend, or discontinue Automated Income Monitor programs at any time. Nationwide will notify policy owners in writing 30 days before doing so.
Policy Loans
After the expiration of the free look period and while the policy is In Force, a policy owner may take a policy loan. A policy loan will be effective as of the date Nationwide receives the policy owner's written request at the Service Center. Nationwide reserves the right to require written requests to be submitted on current Nationwide forms. Notwithstanding anything to the contrary set forth in this prospectus, Nationwide currently accepts requests submitted via telephone, subject to dollar amount limitations and payment and other restrictions to prevent fraud. Nationwide reserves the right to discontinue acceptance of telephonic requests at any time upon written notice. Contact the Service Center for current limitations and restrictions.
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Taking a policy loan may increase the risk of Lapse and may result in adverse tax consequences. Unpaid loan interest charges accrue daily at a compounded annual interest rate and can cause the policy's Indebtedness to grow significantly. The policy owner should request an illustration demonstrating the impact of a policy loan on the policy's Cash Value, Cash Surrender Value, and Death Benefit Proceeds.
Loan Amount
The minimum loan amount is $200. At the time of a loan request, policy Indebtedness cannot exceed 90% of the Cash Value allocated to the Sub-Accounts plus 100% of the Cash Value allocated to the Fixed Account, plus 100% of the policy loan account, less any Surrender Charge. Nationwide pays the policy loan to the policy owner with assets from its general account. Nationwide then uses the policy's Cash Value as collateral for the loan as described below.
Collateral and the Policy Loan Account
As collateral for the policy loan, Nationwide deducts an amount equal to the policy loan from the policy's Cash Value. Collateral amounts are transferred from the Cash Value to the policy loan account (which is part of Nationwide's general account). Because the policy loan account does not participate in the Investment Experience of the Sub-Accounts, policy loans can permanently affect the Death Benefit Proceeds and the Cash Value of the policy, even if repaid. The policy loan account may be subject to Nationwide's creditors in the event of insolvency.
Amounts transferred from the policy's Cash Value equal to the policy loan account are deducted from the Sub-Accounts in the same proportion as the Sub-Account allocations, unless the policy owner has instructed otherwise. Nationwide will only transfer amounts from the Fixed Account if the loan amount exceeds 90% of the Cash Value allocated to the Sub-Accounts.
The policy owner will earn interest on the collateral held in the policy loan account. Interest will accrue daily at no less than the guaranteed minimum rate stated on the Policy Data Pages. The interest earned on the policy loan account may be different than the rate earned on Cash Value allocated to the Fixed Account.
Interest Charged
Nationwide charges interest against policy Indebtedness. Indebtedness is the total amount of all outstanding policy loans, including principal and compounded interest due. The maximum interest rate Nationwide may charge against Indebtedness is 3.90% per annum, see In Summary: Fee Tables for current interest charged rates. Rates may change and may vary by policy year. Policy loan interest charges may provide revenue for risk charges and profit.
If policy loan interest is not paid when due, policy Indebtedness will continue to compound at the interest rate in effect, see When Interest is Charged and Credited below. If not paid when due, Nationwide will deduct an amount equal to the unpaid interest from the policy's Cash Value and add it to the policy loan account causing the original policy loan amount (now, "Indebtedness") to increase by the amount of the unpaid interest charged. Amounts deducted from the policy's Cash Value as unpaid interest charges will be deducted from the Sub-Accounts and the Fixed Account in the same manner as a new loan.
Note: Over time, unpaid loan interest charges can cause the policy's Indebtedness to be significant. In some cases, policy Indebtedness may be significant enough to cause the policy to Lapse. In general, it is advantageous to repay Indebtedness and at a minimum, the interest charged on Indebtedness, at least annually.
Indebtedness is considered a part of the policy's Cash Value, therefore, upon a full surrender, Lapse, or maturity, the amount received in the original loan request(s), plus unpaid loan interest charged is considered "received" under the Code and may result in adverse tax consequences, see Surrender, Lapse, Maturity in Taxes.
When Interest is Charged and Credited
Interest charged against Indebtedness accrues daily. Interest earned on collateral also accrues daily. Nationwide will deduct interest charged on Indebtedness from the policy's Cash Value, and credit interest earned on collateral to the Cash Value:
• Annually, at the end of a policy year;
• At the time a new loan is requested;
• When a loan repayment is made;
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• Upon the Insured's death;
• Upon policy Lapse and/or;
• Upon a full surrender of the policy.
In most cases, the interest earned on collateral and credited to the Cash Value will be less and in some cases, significantly less, than the interest charged against the Cash Value.
Repayment
The policy owner may repay all or part of policy Indebtedness at any time while the policy is In Force. The minimum loan repayment amount, if any, is stated in the policy. The policy owner should contact the Service Center to obtain loan pay-off amounts.
Note: Interest earned on collateral is not deducted from Indebtedness to calculate loan pay off amounts. If a loan repayment is made, the policy owner's Cash Value is credited with interest earned on collateral and the amount of the loan repayment is deducted from the policy's Indebtedness.
Nationwide will treat any payments made as Premium payments, unless the policy owner specifies that the payment should be applied against the policy's Indebtedness. It may be beneficial for the policy owner to repay Indebtedness before making additional Premium payments because Premium Load charges are deducted from Premium payments but not from loan repayments.
If the policy owner makes a loan repayment, it will be applied to the Sub-Accounts and the Fixed Account in accordance with the allocation instructions in effect at the time the payment is received, unless the policy owner indicates otherwise.
Repaying Indebtedness will cause the Death Benefit and net Cash Surrender Value to increase accordingly.
Lapse
The policy is at risk of Lapsing when the Cash Surrender Value is insufficient to cover the monthly policy charges, including Rider charges, see Unfavorable Investment Experience. A policy owner can avoid Lapsing the policy by paying the amount required by the Guaranteed Policy Continuation Provision, or, if elected, by invoking the Policy Guard Rider to prevent the policy from Lapsing due to Indebtedness. Before any Lapse, there is a Grace Period during which a policy owner can take action to prevent the Lapse. Subject to certain conditions, a policy owner may reinstate a policy that has Lapsed.
Guaranteed Policy Continuation Provision
The policy provides for a Guaranteed Policy Continuation Period. The policy will not Lapse during the Guaranteed Policy Continuation Period if the policy owner pays the Policy Continuation Premium amount shown on the Policy Data Pages.
The Policy Continuation Premium required will vary by the Insured's age, sex, underwriting class, any Substandard Ratings, the Total Specified Amount and any Riders elected.
If a policy owner has made any changes to the policy after it is issued, including any policy loans or partial surrenders, increases or decreases to the Total Specified Amount, adding or terminating a Rider, and/or changing the death benefit option, the Policy Continuation Premium may change. A change will result in reissued Policy Data Pages which will show the Policy Continuation Premium. Upon request and for no charge, Nationwide will determine whether Premium payments, minus any Indebtedness and partial surrenders, are sufficient to keep the Guaranteed Policy Continuation Provision in effect.
The Guaranteed Policy Continuation Period will begin when Nationwide issues the policy and will continue for the lesser of 30 years, or the number of years until the Insured reaches Attained Age 65, from the Policy Date. For policies issued on Insured's age 55 or older on the Policy Date, the Guaranteed Policy Continuation Period is 10 years.
When the Guaranteed Policy Continuation Period ends, if the Cash Surrender Value remains insufficient to cover the monthly policy charges, the policy is at risk of Lapsing and a Grace Period will begin. There is no separate additional charge for the Guaranteed Policy Continuation Provision.
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Grace Period
If the Cash Surrender Value on any monthly anniversary date is not sufficient to cover the current monthly deductions, then a Grace Period will begin. At the beginning of a Grace Period, the policy owner will receive a notice from Nationwide that will indicate the amount of Premium that must be paid to avoid Lapsing the policy. This amount is equal to the lesser of four times the current monthly deductions, or, the Premium that will bring the guaranteed policy continuation provision back into effect. If not paid within 61 days, the policy and all Riders will Lapse.
The Grace Period will not alter the operation of the policy or the payment of Proceeds.
Reinstatement
A policy owner may reinstate a Lapsed policy by:
(1) submitting, at any time within three years after the end of the Grace Period (or longer if required by state law) and before the Maturity Date, a written request to the Service Center to reinstate the policy;
(2) providing evidence of insurability satisfactory to Nationwide;
(3) paying sufficient Premium to keep the policy In Force for three months (or less if required by state law) from the date of reinstatement, or, if the policy is in the Guaranteed Policy Continuation Period, paying the lesser of (a) and (b) where:
(a) is the amount of Premium sufficient to keep the policy In Force for three months from the date of reinstatement; and
(b) is the amount of Premium sufficient to bring the Guaranteed Policy Continuation Provision into effect;
(4) paying sufficient Premium to cover all policy charges that were due and unpaid during the Grace Period; and
(5) repaying or reinstating any Indebtedness that existed at the end of the Grace Period.
The policy owner may also reinstate coverage under certain Riders subject to satisfactory evidence of insurability.
If the policy is reinstated, the Cash Value on the date of reinstatement will be set equal to the lesser of the Surrender Charge corresponding to the policy year in which the policy is reinstated or the Cash Value at the end of the most recent Grace Period. Nationwide will add any Premiums or loan repayments that were made to reinstate the policy to the Cash Value.
The Sub-Account allocations that were in effect at the start of the Grace Period will be reinstated, unless the policy owner indicates otherwise.
Surrenders
Full Surrender
The policy may be surrendered for the Cash Surrender Value at any time while it is In Force. A surrender will be effective as of the date Nationwide receives the policy owner’s written surrender request at the Service Center. Nationwide reserves the right to require written requests to be submitted on current Nationwide forms. Notwithstanding anything to the contrary set forth in this prospectus, Nationwide currently accepts requests submitted via telephone, subject to dollar amount limitations and payment and other restrictions to prevent fraud. Nationwide reserves the right to discontinue acceptance of telephonic requests at any time upon written notice. Contact the Service Center for current limitations and restrictions. Nationwide may also require the policy owner to return the policy. Nationwide may postpone payment of that portion of the Cash Surrender Value attributable to the Fixed Account for up to six months.
Policy Restoration after a Full Surrender
Prior to the Insured's death, Nationwide will permit restoration of a surrendered policy pursuant to established procedures to meet the requirements of state insurance law regarding the replacement of life insurance (i.e., use of the Proceeds from a surrendered policy to purchase a new policy). Restored policies will be treated as if they were never surrendered for all purposes, including Investment Experience, interest, and deduction of charges, see Policy Restoration Procedure in the Statement of Additional Information.
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Partial Surrender
After the policy has been In Force for one year, the policy owner may request a partial surrender of the policy's Cash Surrender Value. During the first 10 policy years, the amount of a partial surrender cannot exceed 10% of the Cash Surrender Value as of the beginning of the policy year. Nationwide may limit partial surrenders to one per year from the Policy Date. The minimum amount of any partial surrender request is $200.
When a partial surrender is taken, Nationwide will reduce the Cash Value by the partial surrender amount. The Base Policy Specified Amount will also be reduced by the amount necessary to prevent an increase in the Net Amount At Risk. However, the reduction to the Base Policy Specified Amount will not be greater than the excess of the partial surrender amount over the preferred partial surrender amount (a preferred partial surrender is a partial surrender that occurs before the 15th policy anniversary and does not exceed 10% of the Cash Surrender Value as of the beginning of the policy year). In any event, a partial surrender will reduce the Cash Value in each Sub-Account the same proportion as the current allocations.
Partial surrenders may be subject to income tax penalties. They could also cause the policy to become a "modified endowment contract" under the Code, which could change the income tax treatment of any distribution from the policy, see Periodic Withdrawals, Non-Periodic Withdrawals, and Loans.
Notwithstanding anything to the contrary set forth in this prospectus, requests submitted via telephone will be accepted subject to dollar amount limitations and payment restrictions to prevent fraud. Nationwide reserves the right to discontinue acceptance of telephonic requests at any time upon written notice to the policy owner. Contact the Service Center for current limitations and restrictions on partial surrenders.
Reduction of Base Policy Specified Amount on a Partial Surrender
Nationwide will reduce the Cash Value of the policy by the amount of any partial surrender in the same proportion as how Cash Value is allocated among the Sub-Accounts. Nationwide will only reduce the Cash Value attributable to the Fixed Account when allocations in the Sub-Accounts are insufficient to cover the amount of the partial surrender.
Nationwide may reduce the Base Policy Specified Amount to ensure that the Net Amount At Risk does not increase due to a partial surrender. Because the policy’s Net Amount At Risk is the same before and after the reduction, a partial surrender by itself does not alter the policy's cost of insurance. The policy's charges going forward will be based on a new Base Policy Specified Amount that will change the calculation of those charges. Depending on changes in variables such as the Cash Value, these charges may increase or decrease after the reduction in Base Policy Specified Amount. However, Nationwide will not reduce the Base Policy Specified Amount when a preferred partial surrender is taken. A preferred partial surrender is a surrender taken before the 15th year from the Policy Date, the maximum aggregate annual amount of which is no more than 10% of the policy's Cash Surrender Value as of the beginning of that year.
Any reduction to the Base Policy Specified Amount will be made in the following order:
• against the most recent increase in the Base Policy Specified Amount;
• against the next most recent increases in the Base Policy Specified Amount in succession; and
• against the Base Policy Specified Amount under the original application.
The Death Benefit
Calculation of the Death Benefit
The Death Benefit will be calculated when Nationwide has received (at the Service Center) all information required to process the claim for Death Benefit Proceeds, including, but not limited to, proof that the Insured has died and any other information Nationwide may reasonably require. The Death Benefit may be subject to an adjustment if an error or misstatement was made upon application, or if the Insured dies by suicide.
While the policy is In Force, the Death Benefit will never be less than the Base Policy Specified Amount. The Death Benefit will depend on the death benefit option elected, certain Riders, and the tax test elected as discussed in greater detail below. The Death Benefit may vary with the Cash Value of the policy, which is affected by Investment Experience, Indebtedness, and any due and unpaid monthly deductions that accrued during a Grace Period.
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Death Benefit Options
Policy owners have a choice of one of three available death benefit options under the policy. If a death benefit option is not selected, Nationwide will issue the policy with Death Benefit Option 1. Not all death benefit options are available in all states.
Note: The Death Benefit will be the greater of the amount produced by the death benefit option in effect on the date of the Insured's death or the Minimum Required Death Benefit, see The Minimum Required Death Benefit.
Death Benefit Option 1: The Death Benefit will be the Total Specified Amount as of the Insured's date of death.
Death Benefit Option 2: The Death Benefit will be the Total Specified Amount plus the Cash Value as of the Insured's date of death.
Death Benefit Option 3: The Death Benefit will be the Total Specified Amount plus the accumulated premium account (which consists of all Premium payments plus interest), less any partial surrenders, as of the Insured's date of death.
The interest rate attributable to the accumulated premium account is referred to as the Death Benefit Option 3 Interest Rate and is stated on the Policy Data Page. The amount of the accumulated premium account will be no less than zero and no greater than twice the Total Specified Amount..
The Minimum Required Death Benefit
The policy has a Minimum Required Death Benefit. The Minimum Required Death Benefit is the lowest Death Benefit that will qualify the policy as life insurance under Section 7702 of the Code.
The tax tests for life insurance generally require that the policy have a significant element of life insurance and not be primarily an investment vehicle. At the time the policy is issued, the policy owner irrevocably elects one of the following tests to qualify the policy as life insurance under Section 7702 of the Code:
• the cash value accumulation test; or
• the guideline premium/cash value corridor test.
If a specific test is not elected, Nationwide will issue the policy with the guideline premium/cash value corridor test. If the cash value accumulation test is elected, the Policy Guard Rider is not available.
Cash Value Accumulation Test
The cash value accumulation test determines the Minimum Required Death Benefit by multiplying the Cash Value by a percentage calculated as described in the Code. The percentages depend upon the Insured's age, sex, and underwriting classification. Under the cash value accumulation test, there is no limit to the amount that may be paid in Premiums as long as there is sufficient Death Benefit in relation to the Cash Value at all times.
Guideline Premium/Cash Value Corridor Test
The guideline premium/cash value corridor test determines the Minimum Required Death Benefit by comparing the Death Benefit to an applicable percentage of the Cash Value. These percentages are set out in the Code, but the percentage varies only by the Attained Age of the Insured.
In deciding which test to elect for the policy, consider the following:
• The cash value accumulation test generally allows flexibility to pay more Premium, subject to Nationwide's approval of any increase in the policy's Net Amount At Risk that would result from higher Premium payments. Premium payments under the guideline premium/cash value corridor test are limited by Section 7702 of the Code.
• Generally, the guideline premium/cash value corridor test produces a higher Death Benefit in the early years of the policy while the cash value accumulation test produces a higher Death Benefit in the policy's later years.
• Monthly cost of insurance charges that vary with the amount of the Death Benefit may be greater during the years when the elected test produces a higher Death Benefit.
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Regardless of which test is elected, Nationwide will monitor compliance to ensure that the policy meets the statutory definition of life insurance under the Code. As a result, the Proceeds payable under a policy should be excludable from gross income of the beneficiary for federal income tax purposes. Nationwide may refuse additional Premium payments or return Premium payments so that the policy continues to meet the Code's definition of life insurance. Consult a qualified tax advisor on all tax matters involving the policy.
Changes in the Death Benefit Option
After the first year from the Policy Date, the policy owner may elect to change the Death Benefit option under the policy from either Option 1 to Option 2, or from Option 2 to Option 1. The policy owner may not change from or to Option 3. Nationwide will permit only one change of Death Benefit option per policy year. The effective date of a change will be the monthly anniversary date following the date the change is approved.
For any change in the Death Benefit option to become effective, the Cash Surrender Value after the change must be sufficient to keep the policy In Force for at least three months.
Upon effecting a death benefit option change, the Total Specified Amount may be changed (either increased or decreased) so that the Net Amount At Risk is the same before the change and after the change on the date of the change. Because the policy's Net Amount At Risk remains the same before and after the change, changing the death benefit option and preserving the Net Amount At Risk by itself does not alter the policy charges. The policy charges going forward will be based on the adjusted Total Specified Amount. Depending on changes in factors such as fluctuations in the policy's Cash Value, these charges may increase or decrease after the death benefit option change.
The policy owner should request an illustration demonstrating the impact of a change in the policy's death benefit option.
Nationwide will refuse a death benefit option change that would reduce the Total Specified Amount to a level where the Premium already paid would exceed any premium limitations under the Code.
Where the policy owner has selected the guideline premium/cash value corridor test, a change in death benefit option will not be permitted if it results in the total Premium paid exceeding any premium limitations under Section 7702 of the Code.
Incontestability
Nationwide will not contest payment of the Death Benefit based on the initial Total Specified Amount after the policy has been In Force during the Insured's lifetime for two years from the Policy Date, and, in some states, within two years from a reinstatement date. For any change in Total Specified Amount requiring evidence of insurability, Nationwide will not contest payment of the Death Benefit based on such increase after it has been In Force during the Insured's lifetime for two years from its effective date, and, in some states, within two years from a subsequent reinstatement date. The incontestability period in some states may be less than two years.
Suicide
If the Insured dies by suicide within two years from the Policy Date, and, in some states, within two years of a reinstatement date, Nationwide will pay no more than the sum of the Premiums paid, less any Indebtedness, and less any partial surrenders. Similarly, if the Insured dies by suicide within two years from the date an application for an increase in the Total Specified Amount was accepted by Nationwide, and, in some states, within two years from a subsequent reinstatement date, Nationwide will pay no more than the Death Benefit Proceeds associated with insurance that has been In Force for at least two years from the Policy Date, plus the Cost of Insurance Charges associated with any increase in Total Specified Amount that has been In Force for a shorter period. The suicide period in some states may be less than two years.
Proceeds Upon Maturity
If the policy is In Force on the Maturity Date, Nationwide will pay the Proceeds to the policy owner.
Normally, the Proceeds will be paid within seven days after receipt of the policy owner’s written request for payment of Proceeds at the Service Center. Nationwide may postpone payment of the Proceeds on the days that it is unable to price Accumulation Units, see Valuation of Accumulation Units. The Proceeds will equal the policy's Cash Value minus any Indebtedness. The policy is terminated once the Proceeds are paid.
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Extending Coverage Beyond the Maturity Date
Nationwide may offer to extend coverage beyond the Maturity Date to coincide with the Insured's death, at which time the Proceeds will be paid to the beneficiary. During this coverage extension, the policy owner will still be able to request partial surrenders, and if elected, the Long-Term Care Rider will remain in effect (though there will be no charge for it). The termination of some policy and/or Rider benefits will coincide with the policy's Maturity Date (unless the policy owner decides otherwise). The extension of coverage will either be for the Cash Value (as defined below) or for the Total Specified Amount (subject to the law of the state in which the policy owner lived at the time the policy was purchased), at the policy owner’s choice.
If coverage is extended beyond the policy's Maturity Date, Nationwide will endorse the policy so that:
(1) if extended for the Total Specified Amount, the policy's Total Specified Amount will be equal to the Base Policy Specified Amount and will be adjusted to what it was when the Insured reached Attained Age 70, subject to any partial surrenders;
(2) no changes to the Base Policy Specified Amount and/or Total Specified Amount will be permitted (as they are the same);
(3) no changes to the death benefit option will be allowed;
(4) no additional Premium payments will be allowed;
(5) no additional monthly periodic charges will be deducted; however, loan interest will continue to be charged on Indebtedness;
(6) 100% of the policy's Cash Value will be transferred to the Fixed Account;
(7) if coverage is extended for the policy’s Cash Value, the policy's Death Benefit will become the Cash Value, regardless of the previous death benefit option choice;
(8) if the Policy Guard Rider is in effect prior to the extension of coverage beyond the Maturity Date, the Total Specified Amount will continue to be defined as the adjusted Total Specified Amount; and
(9) if the Additional (insurance) Protection Rider is in effect, the extension of coverage beyond the Maturity Date will not apply to the Rider Specified Amount.
Note: Partial surrenders will affect the Base Policy Specified Amount (and thus Total Specified Amount) of a policy with Death Benefit Option 1 based on the Insured's Attained Age at the time the partial surrender is requested. While the Insured is between the Attained Age of 71 and 90, a partial surrender will decrease the Base Policy Specified Amount proportionately. If the Insured is Attained Age 91 or older, a partial surrender will reduce the Proceeds by an amount proportionate to the ratio of the partial surrender to the Cash Value prior to the partial surrender.
The coverage beyond the Maturity Date will not occur when the policy would fail the definition of life insurance under the Code.
The primary purpose of coverage extension is to continue the life insurance coverage, and avoid current income taxes on any earnings in excess of the cost basis if the maturity Proceeds are taken, see Surrendering the Policy; Maturity.
Assuming no Indebtedness on the Maturity Date and no partial surrenders or loans are taken after the Maturity Date, the Proceeds after the Maturity Date will equal or exceed the Proceeds at maturity. However, because the loan interest rate charged may be greater than loan interest credited, if Indebtedness exists on or after the Maturity Date, Proceeds after the Maturity Date may be less than the Proceeds at maturity.
The Payout Options
Treatment of Unclaimed Property
Every state has unclaimed property laws which generally declare life insurance policies to be abandoned after a period of inactivity of three to five years from the policy Maturity Date or the date Nationwide becomes informed that a Death Benefit is due and payable. For example, if the payment of a Death Benefit has been triggered, but, if after a thorough search, Nationwide is still unable to locate the beneficiary of the Death Benefit, or the beneficiary does not come forward to claim the Death Benefit in a timely manner, the Death Benefit will be surrendered and placed in a non-interest bearing account. While in the non-interest bearing account, Nationwide will continue to perform due diligence required by state
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law. Once the state mandated period has expired, Nationwide will escheat the Death Benefit to the abandoned property division or unclaimed property office of the state in which the beneficiary or the policy owner last resided, as shown on Nationwide’s books and records, or to Ohio, Nationwide’s state of domicile. If a claim is subsequently made, the state is obligated to pay any such amount (without interest) to the designated recipient upon presentation of proper documentation.
To prevent escheatment, it is important to update beneficiary designations - including complete names, complete addresses, phone numbers, and social security numbers - as they change. Such updates should be sent to the Service Center.
Policy Settlement Options
Proceeds (Death Benefit, maturity Proceeds, or Cash Surrender Value) may be paid out in a lump sum, or in another form that is elected at application.
At any time before the Proceeds become payable, a policy owner may request to change the payout option by writing to the Service Center.
If more than one payout option is elected, at least $2,000 must be apportioned to each option and each payment (made at the specified interval) must be at least $20. The settlement options below are based on predetermined fixed payments.
If the policy owner does not make an election as to the form of the Proceeds, upon the Insured's death, the beneficiary may make the election. Changing the beneficiary of the policy will revoke the payout option(s) in effect at that time. Proceeds are neither assignable nor subject to claims of creditors or legal process. If the beneficiary does not make an election, Nationwide will pay the Proceeds in a lump sum.
Normally, Nationwide will make a lump sum payment of the Proceeds within seven days after the written request for payment is received at the Service Center. However, Nationwide may postpone payment of the Proceeds from the Fixed Account and/or on the days that it is unable to price Sub-Account Accumulation Units, see Valuation of Accumulation Units. Proceeds are paid from Nationwide’s general account. For payout options other than lump sum, Nationwide will issue a settlement contract in exchange for the policy.
Note that for the remainder of Payment of Policy Proceeds provision, "payee" means the person(s) entitled to the Proceeds.
Interest Income Option
If the Interest Income Option is elected, Nationwide retains the Proceeds and credits the Proceeds with interest at an annually determined rate of at least 2.5% per annum, compounded annually. Nationwide will determine annually whether any interest in excess of 2.5% will be credited. The interest can be credited at the end of 12-, six, three, or one month intervals.
At any time, the policy owner can withdraw any remaining Proceeds and accumulated interest by submitting a written request to the Service Center. Upon the payee’s death, the remaining Proceeds and accumulated interest will be paid to the payee’s estate.
Income for a Fixed Period Option
If the Income for a Fixed Period Option is elected, Nationwide retains the Proceeds and makes payments to the payee at specified intervals over a certain number of years, not to exceed 30. Each payment will consist of a portion of the Proceeds plus interest at an annually determined rate of at least 2.5% per annum, compounded annually. Nationwide will determine annually if any interest in excess of 2.5% will be credited. The payments can be paid at the beginning of 12-, six, three, or one month intervals.
At any time, the payee may withdraw any remaining Proceeds and accumulated interest by submitting a written request to the Service Center. Upon the payee’s death, the remaining Proceeds and accumulated interest will be paid to the payee’s estate.
Life Income with Payments Guaranteed Option
If the Life Income with Payments Guaranteed Option is elected, Nationwide will retain the Proceeds and make payments to the payee at specified intervals for a guaranteed period (10, 15, or 20 years) and, if the payee is still living at the end of the guaranteed period, the payments will continue for the rest of the payee’s life. During the guaranteed period,
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Nationwide will pay interest on the remaining Proceeds at a rate of at least 2.5% per annum, compounded annually. Nationwide will determine annually if any interest in excess of 2.5% will be paid. The Proceeds can be paid at the beginning of 12-, six, three, or one month intervals.
Once payments begin under this option, withdrawals are not permitted. If a payee dies before the guaranteed period has elapsed, Nationwide will make the remaining payments to the payee’s estate. If the payee dies after the guaranteed period has elapsed, no further payments will be made.
Fixed Income for Varying Periods Option
If the Fixed Income for Varying Periods Option is elected, Nationwide will retain the Proceeds and pay a fixed amount at specified intervals until the Proceeds and accumulated interest have been exhausted. The total amount payable each year may not be less than 5% of the original Proceeds. Nationwide will credit interest on the remaining Proceeds at a rate of at least 2.5% per annum, compounded annually. Nationwide will determine annually if any interest in excess of 2.5% will be credited. The Proceeds can be paid at the beginning of 12-, six, three, or one month intervals.
At any time, the payee may withdraw any remaining Proceeds and accumulated interest by submitting a written request to the Service Center. Upon the payee’s death, Nationwide will pay the remaining Proceeds and accumulated interest to the payee’s estate.
Joint and Survivor Life Option
If the Joint and Survivor Life Option was elected, Nationwide will retain the Proceeds and make equal payments to the payees at specified intervals for the life of the last surviving payee. The Proceeds can be paid at the beginning of 12-, six, three, or one month intervals.
Once payments begin under this option, withdrawals are not permitted. Payments will cease upon the death of the last surviving payee. Nationwide will make no payments to the last surviving payee's estate. It is possible that only one payment will be made under this option if both payees die prior to the first payment.
Alternate Life Income Option
If the Alternate Life Income Option is elected, Nationwide will use the Proceeds to purchase an annuity with the payee as annuitant. The amount payable will be 102% of the current individual immediate annuity purchase rate on the date of the individual immediate annuity is elected. The Proceeds can be paid at the end of 12-, six, three, or one month intervals. Since the payments are based on the payee’s lifetime, the payee may not withdraw any amount designated to this option once payments begin. Payments will cease upon the payee’s death. No payments will be made to the payee’s estate.
Taxes
The tax treatment of life insurance policies under the Internal Revenue Code ("Code") is complex and the tax treatment of the policy will depend on the policy owner's particular circumstances. The policy owner should seek competent tax advice regarding the tax treatment of the policy given their situation. The following discussion provides a general overview of the Code's provisions relating to certain common life insurance policy transactions. Some of the items discussed below may not be applicable to the life insurance policy described herein. It is not and cannot be comprehensive, and it cannot replace personalized advice provided by a competent tax professional.
Types of Taxes
Federal Income Tax
Generally, the United States assesses a tax on income, which is broadly defined to include all items of income from whatever source, unless specifically excluded. Certain expenditures can reduce income for tax purposes and correspondingly the amount of tax payable. These expenditures are called deductions. While there are many more income tax concepts under the Code, the concepts of "income" and "deduction" are the most fundamental to the federal income tax treatment that pertains to this policy.
Federal Transfer Tax
In addition to the income tax, the United States also assesses a tax on some or all of the value of certain transfers of property made by gift while a person is living (the federal gift tax), and by bequest or otherwise at the time of a person's death (the federal estate tax).
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The federal gift tax is imposed on the value of the property (including cash) transferred by gift. Each donor is allowed to exclude an amount per recipient from the value of present interest gifts. In addition, each donor is allowed a credit against the tax on five million dollars in lifetime gifts (calculated after taking into account the applicable exclusion amount). An unlimited marital deduction may be available for certain lifetime gifts made by the donor to the donor's spouse.
The American Taxpayer Relief Act ("ATRA") enacted on January 1, 2013, permanently provides for a maximum federal estate tax rate of 40% with an annually inflation adjusted $5 million exemption for estates of persons dying after December 31, 2012.
Under current law, an unlimited marital deduction is available for federal estate tax purposes for certain amounts that pass to the surviving spouse.
If the transfer is made to someone two or more generations younger than the transferor, the transfer may be subject to the federal generation-skipping transfer tax ("GSTT"). The GSTT provisions generally apply to the same transfers that are subject to estate or gift taxes. The GSTT is imposed at a flat rate equal to the maximum estate tax rate subject to any applicable exemptions. As with the estate tax, ATRA permanently provides for a GSTT tax rate of 40% with an annually inflation adjusted $5 million exemption.
State and Local Taxes
State and local estate, inheritance, income and other tax consequences of ownership or receipt of policy proceeds depend on the circumstances of each policy owner or beneficiary. While these taxes may or may not be substantial in every policy owner's case, state by state differences of these taxes preclude a useful description of them in this prospectus.
Buying the Policy
Federal Income Tax
Generally, the Code treats life insurance premiums as a nondeductible expense for income tax purposes.
Federal Transfer Tax
Generally, the Code treats the payment of premiums on a life insurance policy as a gift when the premium payment benefits someone else (such as when premium payments are paid by someone other than the policy owner). Gifts are not generally included in the recipient's taxable income. If the policy owner (whether or not they are the insured) transfers ownership of the policy to another person, the transfer may be subject to a federal gift tax.
Investment Gain in the Policy
The income tax treatment of changes in the policy's cash value depends on whether the policy is "life insurance" under the Code. If the policy meets the definition of life insurance, then the increase in the policy's cash value is not included in the policy owner's taxable income for federal income tax purposes unless it is distributed to the policy owner before the death of the insured.
To qualify as life insurance, the policy must meet certain tests set out in Section 7702 of the Code. Nationwide will monitor the policy's compliance with Code Section 7702, and take whatever steps are necessary to stay in compliance.
Diversification
In addition to meeting the tests required under Section 7702, Section 817(h) of the Code requires that the investments of the separate account be adequately diversified. Regulations under Code Section 817(h) provide that a variable life policy that fails to satisfy the diversification standards will not be treated as life insurance unless such failure was inadvertent, is corrected, and the policy owner or the issuer pays an amount to the IRS. If the failure to diversify is not corrected, the income and gain in the policy would be treated as taxable ordinary income for federal income tax purposes.
Nationwide will also monitor compliance with Code Section 817(h) and the regulations applicable to Section 817(h) and, to the extent necessary, take appropriate action to remain in compliance.
Representatives of the IRS have informally suggested, from time to time, that the number of underlying investment options available or the number of transfer opportunities available under a variable insurance product may be relevant in determining whether the product qualifies for the desired tax treatment. In 2003, the IRS issued formal guidance, in Revenue Ruling 2003-91, that indicates that if the number of underlying investment options available in a variable insurance product does not exceed 20, the number of underlying investment options alone would not cause the policy to
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not qualify for the desired tax treatment. The IRS has also indicated that exceeding 20 underlying investment options may be considered a factor, along with other factors including the number of transfer opportunities available under the policy, when determining whether the policy qualifies for the desired tax treatment. The revenue ruling did not indicate the number of underlying investment options, if any, that would cause the policy to not provide the desired tax treatment. Should the U.S. Secretary of the Treasury issue additional rules or regulations limiting: the number of underlying investment options, transfers between underlying investment options, exchanges of underlying investment options or changes in the investment objectives of underlying investment options such that the policy would no longer qualify as life insurance under Section 7702 of the Code, Nationwide will take whatever steps are available to remain in compliance.
Based on the above, the policy should be treated as life insurance for federal income tax purposes.
Periodic Withdrawals, Non-Periodic Withdrawals and Loans
The tax treatment described in this section applies to withdrawals and loans, premiums Nationwide accepts but then returns to meet the Code's definition of life insurance, and amounts used to pay the premium on any rider to the policy.
The income tax treatment of distributions of cash from the policy depends on whether the policy is also a "modified endowment contract" under the Code. Generally, the income tax consequences of owning a life insurance policy that is not a modified endowment contract are more advantageous than the tax consequences of owning a life insurance policy that is a modified endowment contract.
The policies offered by this prospectus may or may not be issued as modified endowment contracts. If a policy is issued as a modified endowment contract, it will always be a modified endowment contract; a policy that is not issued as a modified endowment contract can become a modified endowment contract due to subsequent transactions with respect to the policy, such as payment of additional premiums. If the policy is not issued as a modified endowment contract, Nationwide will monitor it and advise the policy owner if the payment of a premium, or other transaction, may cause the policy to become a modified endowment contract. It is only with the policy owner's written authorization that Nationwide will permit the policy to become a modified endowment policy. Otherwise, Nationwide will reject the requested action or refund any Premium paid in excess of the modified endowment limits.
Depending on the policy owner's circumstances, the use of the cash value of the policy to pay for the cost of any rider added to the base policy, could be treated as a distribution, and would be subject to the rules described below. Policy owners should seek competent tax advice regarding the tax treatment of the addition of any rider to the policy, based on the policy owner's individual facts and circumstances.
In general, interest the policy owner pays on a loan from a policy will not be deductable. Also, if a loan from a policy that is not a modified endowment contract is outstanding when the policy is canceled or lapses, the amount of the outstanding indebtedness will be added to the amount distributed and will be taxed accordingly. Before taking a policy loan, the policy owner should consult a tax advisor as to the tax consequences.
When the Policy is Life Insurance that is a Modified Endowment Contract
Section 7702A of the Code defines modified endowment contracts as those life insurance policies issued or materially changed on or after June 21, 1988 on which the total premiums paid during the first 7 years exceed the amount that would have been paid if the policy provided for paid up benefits after 7 level annual premiums. Under certain conditions, a policy may become a modified endowment contract, or may become subject to a new 7 year testing period as a result of a "material change" or a "reduction in benefits" as defined by Section 7702A(c) of the Code.
All modified endowment contracts issued to the same owner by the same company during a single calendar year are required to be aggregated and treated as a single policy for purposes of determining the amount that is includible in income when a distribution occurs.
The Code provides special rules for the taxation of surrenders, partial surrenders, loans, collateral assignments, and other pre-death distributions from modified endowment contracts. Under these special rules, such transactions are taxable to the extent that at the time of the transaction the cash value of the policy exceeds the 'investment in the contract' (generally, the net Premiums paid for the policy). In addition, a 10% tax penalty generally applies to the taxable portion of such distributions unless the policy owner is over age 59½ or disabled, or the distribution is part of a series of substantially equal periodic payments as defined in the Code.
When the Policy is Life Insurance that is NOT a Modified Endowment Contract
If the policy is not issued as a modified endowment contract, Nationwide will monitor premiums paid and will notify the policy owner when the policy is in jeopardy of becoming a modified endowment contract.
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Distributions from life insurance policies that are not modified endowment contracts generally are treated as being first from the investment in the contract, and then from the income in the policy. Because premium payments are generally nondeductible, distributions not in excess of investment in the contract are generally not includible in income; instead, they reduce the owner's investment in the contract.
However, if a policy is not a modified endowment contract, a cash distribution during the first 15 years after a policy is issued that causes a reduction in death benefits may still be fully or partially taxable to the policy owner pursuant to Section 7702(f)(7) of the Code. The policy owner should carefully consider this potential tax ramification and seek further information before requesting any changes in the terms of the policy.
In addition, unlike a modified endowment contract, a loan from a life insurance policy that is not a modified endowment contract is not taxable when made, although it can be treated as a distribution if it is forgiven during the owner's lifetime. Distributions from policies that are not modified endowment contracts are not subject to the 10% early distribution penalty tax.
Surrender, Lapse, Maturity
A full surrender, cancellation of the policy by lapse, or the maturity of the policy on its maturity date may have adverse income tax consequences. If the amount received (or are deemed received upon maturity) plus total policy indebtedness exceeds the investment in the policy, then the excess generally will be treated as taxable ordinary income, regardless of whether or not the policy is a modified endowment contract. In certain circumstances, for example when the policy indebtedness is very large, the amount of tax could exceed the amount distributed to the policy owner at surrender.
The purpose of the maturity date extension feature is to permit the policy to continue to be treated as life insurance for tax purposes. Although Nationwide believes that the extension provision will cause the policy to continue to be treated as life insurance after the initially scheduled maturity date, that result is not certain due to a lack of specificity in the guidance on the issue. The policy owner should consult with a qualified tax advisor regarding the possible adverse tax consequences that could result from an extension of the scheduled maturity date.
Additional Medicare Tax
Effective January 1, 2013, Section 1411 of the Code imposes a surtax of 3.8% on certain net investment income received by individuals and certain trusts and estates. The surtax is imposed on the lesser of (a) net investment income or (b) the excess of the modified adjusted gross income over a threshold amount. For individuals, the threshold amount is $250,000 (married filing jointly); $125,000 (married filing separately); or $200,000 (single, head of household with qualifying person, or qualifying widow(er) with dependent child). The threshold for an estate or trust that is subject to the surtax is generally equal to the dollar amount at which the highest tax bracket under section 1(e) begins for the taxable year; for 2016, that amount is $12,400.
Modified adjusted gross income is equal to adjusted gross income with several modifications; the policy owner should consult with a tax advisor regarding how to determine the policy owner's modified adjusted gross income for purposes of determining the applicability of the surtax.
Net investment income includes, but is not limited to, interest, dividends, capital gains, rent and royalty income, and income from nonqualified annuities; and may include taxable distributions from, and gain from the sale or surrenders of, life insurance policies.
Net investment income does not include, among other things, distributions from certain qualified plans (such as IRAs, Roth IRAs, and plans described in Internal Revenue Code Sections 401(a), 401(k), 403(a), 403(b) or 457(b)); however, such distributions, to the extent that they are includible in income for federal income tax purposes are includible in modified adjusted gross income.
Sale of a Life Insurance Policy
If a life insurance policy is sold for a gain, all or a portion of the gain will be treated as ordinary income. In Revenue Ruling 2009-13, the IRS concluded that the amount of gain realized from the sale of a life insurance policy is equal to the amount received (which can include relief from, or assumption of debt) over the owner's basis in the policy. The portion of the gain that is equal to the excess of the cash surrender value over the investment in the policy would be treated as ordinary income; any additional gain would be short or long-term capital gain, depending on the holding period. The ruling also
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concluded that the owner's basis in the policy that is used to calculate the gain resulting from the sale of the life insurance policy is the investment in the policy reduced by the cost of insurance previously paid out of the cash value. Consequently, a sale may result in more gain than a surrender for the same amount.
Exchanging the Policy for Another Life Insurance Policy
Generally, policy owners will be taxed on amounts received in excess of premium payments when the policy is surrendered in full. If, however, the policy is exchanged for another life insurance policy, modified endowment contract, or annuity contract, the transaction will not be taxed on the excess amount if the exchange meets the requirements of Code Section 1035. To meet Section 1035 requirements, the insured named in the policy must be the insured for the new policy. Generally, the new policy or contract will be treated as having the same issue date and tax basis as the old policy or contract.
If the policy or contract is subject to a policy indebtedness that is discharged as part of the exchange transaction, the discharge of the indebtedness may be taxable. Policy owners should consult with their personal tax or legal advisors in structuring any policy exchange transaction.
Federal Income Taxation of Death Benefits
Death of Insured
The death benefit is generally excludable from the beneficiary's gross income under the Internal Revenue Code by reason of the insured’s death. However, if the policy had been transferred to a new policy owner for valuable consideration (e.g., through a sale of the policy), a portion of the death benefit may be includible in the beneficiary's gross income when it is paid.
The payout option selected by the policy's beneficiary may affect how the payments received by the beneficiary are taxed. Under the various payout options, the amount payable to the beneficiary may include earnings on the death benefit, which will be taxable as ordinary income. For example, if the beneficiary elects to receive interest only, then the entire amount of the interest payment will be taxable to the beneficiary; if a periodic payment (whether for a fixed period or for life) is selected, then a portion of each payment will be taxable interest income, and a portion will be treated as the nontaxable payment of the death benefit. The policy's beneficiaries should consult with their tax advisors to determine the tax consequences of electing a payout option, based on their individual circumstances.
Accelerated Death Benefits
The death benefit under a life insurance policy may be distributed at a time earlier than the death of the insured, and all or a portion of the distribution may still be excludable from gross income under Section 101 of the Code.
Terminal Illness
The death benefit under a life insurance policy may be distributed when the insured is considered a "terminally ill individual" as that term is defined under the Internal Revenue Code. In this situation the distribution is treated as paid by reason of death of the insured and will generally be excluded from the beneficiary’s gross income, see Federal Income Taxation of Death Benefits.
Long-Term Care
A long-term care rider issued with a life insurance policy or one that is subsequently added to the policy may allow for distribution of all or a portion of the death benefit upon the insured being certified as a "chronically ill individual" as that term is defined under the Internal Revenue Code. If the long-term care rider meets the requirements of a qualified long-term care insurance contract as specified under Section 7702B of the Internal Revenue Code, then a distribution of all or a portion of the death benefit will generally be excluded from income under the Code. The long-term care rider issued with this life insurance policy is intended to be a qualified long-term care insurance contract under Section 7702B of the Internal Revenue Code.
The amount of the long-term care benefit that is excludable from gross income is limited by the Internal Revenue Code, on an annual basis, to the greater of the HIPAA per diem amount or the amount of actual qualifying long-term care expenses incurred, reduced by any reimbursements received for qualifying long-term care services provided for the insured. While the long-term care rider issued with this life insurance policy pays a long-term care benefit that is limited to the HIPAA per diem amount (an indemnity contract), Nationwide cannot guarantee that the long-term care benefit will be treated as tax free. If multiple indemnity contracts are owned on a single insured, then the payments received from these contracts are
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aggregated for purposes of determining whether the amounts received exceed the greater of the HIPAA per diem amount or the amount of actual qualifying long-term care expenses incurred. Therefore it is highly recommended that the policy owner consult their tax advisor when contemplating the amount of long-term care benefit to be taken under the long-term care rider.
The long-term care rider may pay benefits if the insured is receiving qualified long-term care services outside of the United States. It is the responsibility of the Policy Owner to determine if collecting benefits while outside the United States will subject the Policy Owner to taxation in the United States, the country of residence, or any other foreign jurisdiction.
Payment of long-term care rider charges will be made through deductions from the cash value of the life policy. These deductions from the cash value are considered to be distributions from the life policy for federal tax purposes. The federal tax treatment of such distributions are governed by section 72(e)(11) which provides that the deductions will reduce the investment in the contract and will not be included in income even if the policy owner has recovered all of their investment in the contract.
The payment of long-term care benefits made to the policy owner of the long-term care rider will be reported on a Form 1099-LTC. In addition, deductions from the cash value of the life insurance policy to pay for long-term care rider charges during the calendar year will be reported on Form 1099-R.
This discussion of the tax treatment of the long-term care rider is not meant to be all inclusive. Due to the complexity of these rules, and because they are affected by the policy owner's facts and circumstances, the policy owner should consult with legal and tax counsel and other competent advisors regarding these matters.
Federal Transfer (Estate, Gift and Generation Skipping Transfer) Taxes
When the insured dies, the death benefit will generally be included in the insured's federal gross estate if: (1) the proceeds were payable to or for the benefit of the insured's estate; or (2) the insured held any "incident of ownership" in the policy at death or at any time within three years of death. An incident of ownership, in general, is any right in the policy that may be exercised by the policy owner, such as the right to borrow on the policy or the right to name a new beneficiary.
If the beneficiary is two or more generations younger than the insured, the death benefit may be subject to the GSTT. Pursuant to regulations issued by the U.S. Secretary of the Treasury, Nationwide may be required to withhold a portion of the proceeds and pay them directly to the IRS as the GSTT payment.
If the policy owner is not the insured or a beneficiary, payment of the death benefit to the beneficiary will be treated as a gift to the beneficiary from the policy owner.
Special Considerations for Corporations
Special federal income tax considerations for life insurance policies owned by employers
Sections 101(j) and 6039I of the Code provide special rules regarding the tax treatment of death benefits that are payable under life insurance policies owned by the employer of the insured. These provisions are generally effective for life insurance policies issued after August 17, 2006. If a life insurance policy was issued on or before August 17, 2006, but materially modified after that date, it will be treated as having been issued after that date for purposes of Section 101(j). Policies issued after August 17, 2006 pursuant to a Section 1035 exchange generally are excluded from the operation of these provisions, provided that the policy received in the exchange does not have a material increase in death benefit or other material change with respect to the old policy.
Section 101(j) provides the general rule that, with respect to an employer-owned life insurance policy, the amount of death benefit payable directly or indirectly to the employer that may be excluded from income cannot exceed the sum of premiums and other payments paid by the policy owner for the policy. Consequently, under this general rule, the entire death benefit, less the cost to the policy owner, will be taxable. Although Section 101(j) is not clear, if lifetime distributions from the policy are made as a nontaxable return of premium, it appears that the reduction would apply for Section 101(j) purposes and reduce the amount of premiums for this purpose.
There are two exceptions to this general rule of taxability, provided that statutory notice, consent, and information requirements are satisfied. First, if proper notice and consent are given and received, and if the insured was an employee at any time during the 12-month period before the insured's death, then Section 101(j) would not apply.
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Second, if proper notice and consent are given and received and, at the time that the policy is issued, the insured is either a director, a "highly compensated employee" (within the meaning of Section 414(q) of the Code without regard to paragraph (1)(B)(ii) thereof), or a "highly compensated individual" (within the meaning of Section 105(h)(5), except "35%" is substituted for "25%" in paragraph (C) thereof), then Section 101(j) would not apply.
Code Section 6039I requires any policy owner of an employer-owned policy to file an annual return showing (a) the number of employees of the policy owner, (b) the number of such employees insured under employee-owned policies at the end of the year, (c) the total amount of insurance in force with respect to those policies at the end of the year, (d) the name, address, taxpayer identification number and type of business of the policy owner, and (e) that the policy owner has a valid consent for each insured (or, if all consents are not obtained, the number of insured employees for whom such consent was not obtained). Proper recordkeeping is also required by this section.
It is the employer's responsibility to (a) provide the proper notice to each insured, (b) obtain the proper consent from each insured, (c) inform each insured in writing that the employer-owner will be the beneficiary of any proceeds payable upon the death of the insured, and (d) file the annual return required by Section 6039I. If the employer-owner fails to provide the necessary notice and information, or fails to obtain the necessary consent, the death benefit will be taxable when received. If the employer-owner fails to file a properly completed return under Section 6039I, a penalty may apply.
Limitation on interest and other business deductions
Section 264 of the Code imposes a number of limitations on the interest and other business deductions that may otherwise be available to businesses that own life insurance policies. In addition, the premium paid by a business for a life insurance policy is not deductible as a business expense or otherwise if the business is directly or indirectly a beneficiary of the policy.
For purposes of the alternative minimum tax ("AMT") that may be imposed on corporations, the death benefit from a life insurance policy, even though excluded from gross income for normal tax purposes, is included in "adjusted current earnings" for AMT purposes. In addition, although increases to the cash surrender value of a life insurance policy are generally excluded from gross income for normal income tax purposes, such increases are included in adjusted current earnings for income tax purposes.
Due to the complexity of these rules, and because they are affected by the policy owner's facts and circumstances, the policy owner should consult with legal and tax counsel and other competent advisors regarding these matters.
Federal appellate and trial courts have examined the economic substance of transactions involving life insurance policies owned by corporations. These cases involved relatively large loans against the policy's cash value as well as tax deductions for the interest paid on the policy loans by the corporate policy owner to the insurance company. Under the particular factual circumstances in these cases, the courts determined that the corporate policy owners should not have taken tax deductions for the interest paid. Accordingly, the court determined that the corporations should have paid taxes on the amounts deducted. Corporations should consider, in consultation with tax advisors familiar with these matters, the impact of these decisions on the corporation's intended use of the policy.
Business Uses of the Policy
The life insurance policy may be used in various arrangements, including nonqualified deferred compensation or salary continuance plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans, and others. The tax consequences of these plans may vary depending on the particular facts and circumstances of each individual arrangement. Therefore, if the policy owner is contemplating using the policy in any arrangement the value of which depends in part on its tax consequences, the policy owner should be sure to consult a tax advisor as to tax attributes of the arrangement.
Non-Resident Aliens and Other Persons Who are Not Citizens of the United States
Special income tax laws and rules apply to non-resident aliens of the United States including certain withholding requirements with respect to pre-death distributions from the policy. In addition, foreign law may impose additional taxes on the policy, the death benefit, or other distributions and/or ownership of the policy.
In addition, special gift, estate and GSTT laws and rules may apply to non-resident aliens, and to transfers to persons who are not citizens of the United States, including limitations on the marital deduction if the surviving or donee spouse is not a citizen of the United States.
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If the policy owner is a non-resident alien, or a resident alien, or if any of the policy's beneficiaries (including the policy owner's spouse) are not citizens of the United States, the policy owner should confer with a competent tax advisor with respect to the tax treatment of this policy.
If the policy owner, the insured, the beneficiary, or other person receiving any benefit or interest in or from the policy, are not both a resident and citizen of the United States, there may be a tax imposed by a foreign country that is in addition to any tax imposed by the United States. The foreign law (including regulations, rulings, treaties with the United States, and case law) may change and impose additional or increased taxes on the policy, payment of the death benefit, or other distributions and/or ownership of the policy.
FATCA
Under Sections 1471 through 1474 of the Internal Revenue Code (commonly referred to as FATCA), distributions from a policy to a foreign financial institution or to a nonfinancial foreign entity, each as described by FATCA, may be subject to United States tax withholding at a flat rate equal to 30% of the taxable amount of the distribution, irrespective of the status of any beneficial owner of the policy or of the distribution. Nationwide may require you to provide certain information or documentation (e.g., Form W-9 or Form W-8BEN) to determine its withholding requirements under FATCA.
Withholding and Tax Reporting
Distribution of taxable income from a life insurance policy, including a life insurance policy that is a modified endowment contract, is subject to federal income tax withholding. Generally, the recipient may elect not to have the withholding taken from the distribution. Nationwide will withhold income tax unless the policy owner advises Nationwide, in writing, of their request not to withhold. If the policy owner requests that taxes not be withheld, or if the taxes withheld are insufficient, the policy owner may be liable for payment of an estimated tax.
A policy owner is not permitted to waive withholding if the payee does not provide Nationwide with a taxpayer identification number; or if Nationwide receives notice from the Internal Revenue Service that the taxpayer identification number furnished by the payee is incorrect. In that instance, a distribution will be subject to withholding rates established by Section 3405 of the Code and will be applied against the amount of income that is distributed.
However, interest earned on a death benefit may be subject to mandatory back-up withholding. Mandatory backup withholding means that Nationwide is required to withhold taxes on income earned at the rate established by Section 3406 of the Code. Mandatory backup withholding may arise if Nationwide has not been provided a taxpayer identification number, or if the IRS notifies Nationwide that back-up withholding is required.
In certain employer-sponsored life insurance arrangements, participants may be required to report for income tax purposes, one or more of the following:
• the value each year of the life insurance protection provided;
• an amount equal to any employer-paid Premiums;
• some or all of the amount by which the current value exceeds the employer's interest in the policy; and/or
• interest that is deemed to have been forgiven on a loan that Nationwide deems to have been made by the employer.
Participants in an employer-sponsored plan relating to this policy should consult with the sponsor or the administrator of the plan, and/or with their personal tax or legal advisor to determine the tax consequences, if any, of their employer-sponsored life insurance arrangements.
Taxes and the Value of the Policy
For federal income tax purposes, a separate account is not a separate entity from the company. Thus, the tax status of the separate account is not distinct from our status as a life insurance company. Investment income and realized capital gains on the assets of the separate account are reinvested and taken into account in determining the value of Accumulation Units. As a result, such investment income and realized capital gains are automatically applied to increase reserves under the policies.
At present, Nationwide does not expect to incur any federal income tax liability that would be chargeable to the Accumulation Units. Based upon these expectations, no charge is being made against the policy's Accumulation Units for federal income taxes. If, however, Nationwide determines that taxes may be incurred, Nationwide reserves the right to assess a charge for these taxes.
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Nationwide may also incur state and local taxes (in addition to those described in the discussion of the Premium Taxes) in several states. At present, these taxes are not significant. If they increase, however, charges for such taxes may be made that would decrease the value of the policy's Accumulation Units.
Tax Changes
The foregoing is a general discussion of various tax matters pertaining to life insurance policies. It is based on our understanding of federal tax laws as currently interpreted by the IRS, is general and is not intended as tax advice. The policy owner should consult their independent legal, tax and/or financial advisor.
The Code has been subjected to numerous amendments and changes, and it is reasonable to believe that it will continue to be revised. The United States Congress has, in the past, considered numerous legislative proposals that, if enacted, could change the tax treatment of life insurance policies. For example the "FY 2013, Budget of the United States Government" includes a proposal which, if enacted, would affect the treatment of corporate owned life insurance policies by limiting the availability of certain interest deductions for companies that purchase those policies. No proposed statutory language has been released yet, so the specifics of the proposal cannot be addressed herein. Such a proposal, if enacted, could have an adverse tax impact on the ownership of life insurance by or for the benefit of business entities. It is reasonable to believe that such proposals, and future proposals, may be enacted into law. The U.S. Treasury Department may amend existing regulations, issue new regulations, or adopt new interpretations of existing law that may differ from its current positions on these matters. In addition, current state law (which is not discussed herein) and future amendments to state law may affect the tax consequences of the policy.
Any or all of the foregoing may change from time to time without any notice, and the tax consequences arising out of a policy may be changed retroactively. There is no way of predicting if, when, or to what extent any such change may take place. Nationwide makes no representation as to the likelihood of the continuation of these current laws, interpretations, and policies.
Nationwide Life Insurance Company
Nationwide, the depositor, is a stock life insurance company organized under Ohio law in March 1929, with its home office at One Nationwide Plaza, Columbus, Ohio 43215. Nationwide is a provider of life insurance, annuities, and retirement products. It is admitted to do business in all states, the District of Columbia, Guam, the U.S. Virgin Islands, and Puerto Rico.
Nationwide is a member of the Nationwide group of companies. Nationwide Mutual Insurance Company and Nationwide Mutual Fire Insurance Company (the "Companies") are the ultimate controlling persons of the Nationwide group of companies. The Companies were organized under Ohio law in December 1925 and 1933 respectively. The Companies engage in a general insurance and reinsurance business, except life insurance.
Nationwide VLI Separate Account-4
Organization, Registration, and Operation
Nationwide VLI Separate Account-4 is a separate account established under Ohio law. Nationwide owns the assets in this account and is obligated to pay all benefits under the policies. Nationwide may use the separate account to support other variable life insurance policies that it issues. The separate account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940 ("1940 Act") and qualifies as a "separate account" within the meaning of federal securities laws. For purposes of federal securities laws, the separate account is, and will remain, fully funded at all times. This registration does not involve the SEC's supervision of the separate account's management or investment practices or policies.
The separate account is divided into Sub-Accounts that invest in shares of the underlying mutual funds. Nationwide buys and sells the mutual fund shares at their respective NAV. Any dividends and distributions from a mutual fund are reinvested at NAV in shares of that mutual fund.
Income, gains, and losses, whether or not realized, from the assets in the separate account will be credited to, or charged against, the separate account without regard to Nationwide's other income, gains, or losses. Income, gains, and losses credited to, or charged against, a Sub-Account reflect the Sub-Account's own Investment Experience and not the investment experience of Nationwide's other assets. The separate account's assets are held separately from Nationwide’s other assets and are not part of Nationwide’s general account. Nationwide may not use the separate account's assets to
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pay any of its liabilities other than those arising from the policies. Nationwide will hold assets in the separate account equal to its liabilities. The separate account may include other Sub-Accounts that are not available under the policies, and are not discussed in this prospectus.
Nationwide does not guarantee any money placed in this separate account. The value of each Sub-Account will increase or decrease, depending on the Investment Experience of the corresponding mutual fund. A policy owner could lose some or all of their money.
Addition, Deletion, or Substitution of Mutual Funds
Where permitted by applicable law, Nationwide reserves the right to:
• remove, close, combine, or add Sub-Accounts and make new Sub-Accounts available;
• substitute shares of another mutual fund, which may have different fees and expenses, for shares of an existing mutual fund;
• transfer assets supporting the policies from one Sub-Account to another, or from one separate account to another;
• combine the separate account with other separate accounts, and/or create new separate accounts;
• deregister the separate account under the 1940 Act, or operate the separate account or any Sub-Account as a management investment company under the 1940 Act or as any other form permitted by law; and
• modify the policy provisions to reflect changes in the Sub-Accounts and the separate account to comply with applicable law.
Nationwide reserves the right to make other structural and operational changes affecting this separate account.
Nationwide will provide notice of any of the changes above. Also, to the extent required by law, Nationwide will obtain the required orders, approvals, and/or regulatory clearance from the appropriate government agencies (such as the various insurance regulators or the SEC). Also, to the extent required by state law, Nationwide will accept an irrevocable election from the policy owner to transfer 100% of the policy's Cash Value to the Fixed Account if received within 60 days after the date the policy owner received notification of a material change in the investment policy of the separate account.
Substitution of Securities
Nationwide may substitute, eliminate, or combine shares of another underlying mutual fund for shares already purchased or to be purchased in the future if either of the following occurs:
(1) shares of a current underlying mutual fund are no longer available for investment; or
(2) further investment in an underlying mutual fund is inappropriate.
No substitution of shares may take place without the prior approval of the SEC. All affected policy owners will be notified in the event there is a substitution, elimination, or combination of shares.
The substitute mutual fund may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future Premium, or both. Nationwide may close Sub-Accounts to allocations of Premiums or policy value, or both, at any time in its sole discretion. The mutual funds, which sell their shares to the Sub-Accounts pursuant to participation agreements, also may terminate these agreements and discontinue offering their shares to the Sub-Accounts.
Deregistration of the Separate Account
Nationwide may deregister Nationwide VLI Separate Account-4 under the 1940 Act in the event the separate account meets an exemption from registration under the 1940 Act, if there are no shareholders in the separate account or for any other purpose approved by the SEC.
All policy owners will be notified in the event Nationwide deregisters Nationwide VLI Separate Account-4.
Voting Rights
Although the separate account owns the mutual fund shares, policy owners are the beneficial owner of those shares. When a matter involving a mutual fund is subject to shareholder vote, unless there is a change in existing law, Nationwide will vote the separate account's shares only as instructed by policy owners.
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When a shareholder vote occurs, a policy owner will have the right to instruct Nationwide how to vote. The weight of each vote is based on the number of mutual fund shares that corresponds to the amount of Cash Value a policy has allocated to that mutual fund's Sub-Account (as of a date set by the mutual fund). Nationwide will vote shares for which no instructions are received in the same proportion as those that are received. What this means is that when only a small number of policy owners vote, each vote has a greater impact on, and may control the outcome of the vote.
Material Conflicts
The underlying mutual funds may be offered through separate accounts of other insurance companies, as well as through other separate accounts of Nationwide. Nationwide does not anticipate any disadvantages to this. However, it is possible that a conflict may arise between the interests of the variable account and one or more of the other separate accounts in which these underlying mutual funds participate.
Material conflicts may occur due to a change in law affecting the operations of variable life insurance policies and variable annuity contracts, or differences in the voting instructions of the policy owners and those of other companies. If a material conflict occurs, Nationwide will take whatever steps are necessary to protect policy owners and variable annuity payees, including withdrawal of the variable account from participation in the underlying mutual fund(s) involved in the conflict.
Legal Proceedings
Nationwide Life Insurance Company
Nationwide Financial Services, Inc. (NFS, or collectively with its subsidiaries, "the Company") was formed in November 1996. NFS is the holding company for Nationwide Life Insurance Company (NLIC), Nationwide Life and Annuity Insurance Company (NLAIC) and other companies that comprise the life insurance and retirement savings operations of the Nationwide group of companies (Nationwide). This group includes Nationwide Financial Network (NFN), an affiliated distribution network that markets directly to its customer base. NFS is incorporated in Delaware and maintains its principal executive offices in Columbus, Ohio.
The Company is subject to legal and regulatory proceedings in the ordinary course of its business. The Company's legal and regulatory matters include proceedings specific to the Company and other proceedings generally applicable to business practices in the industries in which the Company operates. These matters are subject to many uncertainties, and given their complexity and scope, their outcomes cannot be predicted. Regulatory proceedings could also affect the outcome of one or more of the Company's litigation matters. Furthermore, it is often not possible to determine the ultimate outcomes of the pending regulatory investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty. Some matters, including certain of those referred to below, are in very preliminary stages, and the Company does not have sufficient information to make an assessment of the plaintiffs' claims for liability or damages. In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period. In many of the cases, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available. The Company believes, however, that based on currently known information, the ultimate outcome of all pending legal and regulatory matters is not likely to have a material adverse effect on the Company's condensed consolidated financial position. Nonetheless, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that such outcomes could materially affect the Company's condensed consolidated financial position or results of operations in a particular quarter or annual period.
The various businesses conducted by the Company are subject to oversight by numerous federal and state regulatory entities, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the Internal Revenue Service, the Federal Reserve Bank and state insurance authorities. Such regulatory entities may, in the normal course, be engaged in general or targeted inquiries, examinations and investigations of the Company and/or its affiliates. The financial services industry has been the subject of increasing scrutiny in connection with a broad spectrum of regulatory issues; with respect to all such scrutiny directed at the Company and/or its affiliates, the Company is cooperating with regulators. The Company will cooperate with Nationwide Mutual Insurance Company (NMIC) insofar as any inquiry, examination or investigation encompasses NMIC’s operations.
On August 15, 2001, NFS and NLIC were named in a lawsuit filed in the United States District Court for the District of Connecticut entitled Lou Haddock, as trustee of the Flyte Tool & Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc. and Nationwide Life Insurance Company. On November 18, 2009, the plaintiffs filed a
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sixth amended complaint amending the list of named plaintiffs and claiming to represent a class of qualified retirement plan trustees under the Employee Retirement Income Security Act of 1974 (ERISA) that purchased variable annuities from NLIC. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that NLIC and NFS breached ERISA fiduciary duties by allegedly accepting service payments from certain mutual funds. The complaint seeks damages in an amount equivalent to some or all of the payments allegedly received by NFS and NLIC, other unspecified relief for restitution, declaratory and injunctive relief, and attorneys fees. On November 6, 2009, the Court granted the plaintiffs motion for class certification. On October 21, 2010, the District Court dismissed NFS from the lawsuit. On February 6, 2012, the Second Circuit Court of Appeals vacated the November 6, 2009 order granting class certification and remanded the case back to the District Court for further consideration. On September 6, 2013, the District Court granted the plaintiffs motion for class certification. On December 11, 2014, the plaintiffs filed a 7th Amended Complaint adding another sub class of defendants that held trust platform products. On December 11, 2014, plaintiff filed a motion for preliminary approval of settlement. On January 5, 2015, the Court signed the Order Preliminarily Approving Settlement and Approving Form and Manner of Notice. On March 31, 2015, the Court held a Fairness Hearing. On April 9, 2015, the Court entered the Final Order and Consent Judgment. The Company has paid the loss amount. In November 2015, the settlement administrator mailed settlement checks to class members.
Nationwide Investment Services Corporation
The general distributor, NISC, is not engaged in any litigation of any material nature.
Financial Statements
The Statement of Additional Information ("SAI") contains the financial statements of Nationwide VLI Separate Account-4 and the consolidated financial statements of Nationwide Life Insurance Company and subsidiaries (the Company). Policy owners may obtain a copy of the SAI FREE OF CHARGE by contacting the Service Center. Please consider the consolidated financial statements of the Company only as bearing on Nationwide’s ability to meet the obligations under the policy. Policy owners should not consider the consolidated financial statements of the Company as affecting the investment performance of the assets of the separate account.
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Appendix A: Sub-Account Information
Below is a list of the available Sub-Accounts and information about the corresponding underlying mutual funds in which they invest. The underlying mutual funds in which the Sub-Accounts invest are designed primarily as investments for variable annuity contracts and variable life insurance policies issued by insurance companies. There is no guarantee that the investment objectives will be met.
Please refer to the prospectus for each underlying mutual fund for more detailed information.
   
Designations Key:
STTF: The underlying mutual fund corresponding to this Sub-Account assesses (or reserves the right to assess) a short-term trading fee, see Short-Term Trading Fees.
FF: The underlying mutual fund corresponding to this Sub-Account primarily invests in other mutual funds. Therefore, a proportionate share of the fees and expenses of any acquired funds are indirectly borne by investors. As a result, investors in this Sub-Account may incur higher charges than if the assets were invested in an underlying mutual fund that does not invest in other mutual funds. Refer to the prospectus for this underlying mutual fund for more information.
VOL: This underlying mutual fund uses a volatility management strategy to reduce a policy owner’s exposure to equity investments when equity markets are volatile which may limit investment losses in a down market. However, use of such a strategy may also limit the growth of the policy’s Cash Value. Allocation to this type of investment option may result in foregone investment gains that could otherwise be realized by investing in riskier investment options.
AllianceBernstein Variable Products Series Fund, Inc. - AB VPS Dynamic Asset Allocation Portfolio: Class A
This Sub-Account is only available in policies issued before May 1, 2014
Investment Advisor: AllianceBernstein L.P.
Investment Objective: To maximize total return consistent with the Adviser’s determination of reasonable risk.
AllianceBernstein Variable Products Series Fund, Inc. - AB VPS Growth and Income Portfolio: Class A
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: AllianceBernstein L.P.
Investment Objective: Long-term growth of capital.
AllianceBernstein Variable Products Series Fund, Inc. - AB VPS Small/Mid Cap Value Portfolio: Class A
Investment Advisor: AllianceBernstein L.P.
Investment Objective: Long-term growth of capital.
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: Long-term total return using a strategy that seeks to protect against U.S. inflation.
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class I
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: Capital growth by investing in common stocks. Income is a secondary objective.
American Century Variable Portfolios, Inc. - American Century VP Mid Cap Value Fund: Class I
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: Long-term capital growth with income as a secondary objective.
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class II
Investment Advisor: BlackRock Advisors, LLC
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: Seek high total investment return.
Delaware VIP Trust - Delaware VIP Small Cap Value Series: Service Class
Investment Advisor: Delaware Management Company, Inc.
Investment Objective: The fund seeks capital appreciation.
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Deutsche Variable Series II - Deutsche Global Income Builder VIP: Class A
Investment Advisor: Deutsche Investment Management Americas Inc.
Investment Objective: The fund seeks to maximize income while maintaining prospects for capital
appreciation.  
Dimensional - DFA Inflation-Protected Securities Portfolio
Investment Advisor: Dimensional Fund Advisors LP
Investment Objective: To provide inflation protection and earn current income consistent with inflation-protected securities.
Dreyfus Investment Portfolios - Small Cap Stock Index Portfolio: Service Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: The Dreyfus Corporation
Investment Objective: To match performance of the S&P SmallCap 600 Index®.
Dreyfus Socially Responsible Growth Fund, Inc. (The): Initial Shares
This Sub-Account is only available in policies issued before May 1, 2003
Investment Advisor: The Dreyfus Corporation
Investment Objective: Capital growth with current income as a secondary goal.
Dreyfus Stock Index Fund, Inc.: Initial Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: The Dreyfus Corporation
Investment Objective: To match performance of the S&P 500.
Dreyfus Variable Investment Fund - Appreciation Portfolio: Initial Shares
This Sub-Account is only available in policies issued before May 1, 2016
Investment Advisor: The Dreyfus Corporation
Sub-advisor: Fayez Sarofim & Co.
Investment Objective: The fund seeks long-term capital growth consistent with the preservation of capital. Its secondary goal is current income.
Dreyfus Variable Investment Fund - Opportunistic Small Cap Portfolio: Initial Shares
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: The Dreyfus Corporation
Investment Objective: The fund seeks capital growth.
Federated Insurance Series - Federated Managed Tail Risk Fund II: Primary Shares
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: Federated Global Investment Management Corp.
Sub-advisor: Federated Global Investment Management Corp., Federated Investment Management Company, Federated Equity Management Company of Pennsylvania
Investment Objective: To create an allocation mix which will maximize return while capturing the benefits of asset class diversification in periods of market volatility.
Federated Insurance Series - Federated Quality Bond Fund II: Primary Shares
Investment Advisor: Federated Investment Management Company
Investment Objective: Current income.
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2010 Portfolio: Service Class
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Strategic Advisers Inc. Boston MA
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective: High total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
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Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2020 Portfolio: Service Class
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Strategic Advisers Inc. Boston MA
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective: High total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2030 Portfolio: Service Class
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Strategic Advisers Inc. Boston MA
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective: High total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
Fidelity Variable Insurance Products Fund - VIP Energy Portfolio: Service Class 2
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective: Capital appreciation.
Designation: STTF
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: Reasonable income.
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited, Fidelity Investments Japan Limited
Investment Objective: Capital appreciation.
Fidelity Variable Insurance Products Fund - VIP High Income Portfolio: Service Class
This Sub-Account is only available in policies issued before May 1, 2015
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: High level of current income while also considering growth of capital.
Fidelity Variable Insurance Products Fund - VIP Investment Grade Bond Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: Fidelity Investments Money Management, Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: High level of current income.
Fidelity Variable Insurance Products Fund - VIP Mid Cap Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: Long-term growth of capital.
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Fidelity Variable Insurance Products Fund - VIP Overseas Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited, Fidelity Investments Japan Limited
Investment Objective: Long-term capital growth.
Fidelity Variable Insurance Products Fund - VIP Value Strategies Portfolio: Service Class
This Sub-Account is only available in policies issued before May 1, 2006
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: Capital appreciation.
Franklin Templeton Variable Insurance Products Trust - Franklin Founding Funds Allocation VIP Fund: Class 2
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Franklin Templeton Services, LLC
Investment Objective: Capital appreciation with income as a secondary goal.
Designation: FF
Franklin Templeton Variable Insurance Products Trust - Franklin Income VIP Fund: Class 2
Investment Advisor: Franklin Advisers, Inc.
Investment Objective: Maximum income while maintaining prospects for capital appreciation.
Franklin Templeton Variable Insurance Products Trust - Franklin Rising Dividends VIP Fund: Class 1
This Sub-Account is only available in policies issued before May 1, 2006
Investment Advisor: Franklin Advisory Services, LLC
Investment Objective: Long-term capital appreciation, with preservation of capital as an important consideration.
Franklin Templeton Variable Insurance Products Trust - Franklin Small Cap Value VIP Fund: Class 1
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Franklin Advisory Services, LLC
Investment Objective: Long-term total return.
Franklin Templeton Variable Insurance Products Trust - Templeton Developing Markets VIP Fund: Class 2
This Sub-Account is only available in policies issued before April 30, 2014
Investment Advisor: Templeton Asset Management, Ltd.
Investment Objective: Long-term capital appreciation.
Franklin Templeton Variable Insurance Products Trust - Templeton Foreign VIP Fund: Class 1
This Sub-Account is no longer available to receive transfers or new premium payments effective May 1, 2005
Investment Advisor: Templeton Investment Counsel, LLC
Investment Objective: Long-term capital growth.
Franklin Templeton Variable Insurance Products Trust - Templeton Foreign VIP Fund: Class 2
This Sub-Account is only available in policies issued before April 30, 2014
Investment Advisor: Templeton Investment Counsel, LLC
Investment Objective: Long-term capital growth.
Franklin Templeton Variable Insurance Products Trust - Templeton Global Bond VIP Fund: Class 2
Investment Advisor: Franklin Advisers, Inc.
Investment Objective: High current income, consistent with preservation of capital, with capital appreciation as a secondary consideration.
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Goldman Sachs Variable Insurance Trust - Goldman Sachs Global Trends Allocation Fund: Service Shares
This Sub-Account is only available in policies issued before May 1, 2014
Investment Advisor: Goldman Sachs Asset Management, L.P.
Investment Objective: Seeks to achieve investment results that approximate the performance of the GS Global Markets Navigator Index (the "Index").
Guggenheim Variable Fund - Multi-Hedge Strategies
Investment Advisor: Guggenheim Investments
Investment Objective: Capital appreciation consistent with the return and risk characteristics of the hedge fund universe and, secondarily, to achieve these returns with low correlation to and less volatility than equity indices.
Invesco - Invesco V.I. American Franchise Fund: Series I Shares
This Sub-Account is only available in policies issued before May 1, 2012
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: seek capital growth.
Invesco - Invesco V.I. Balanced-Risk Allocation Fund: Series I Shares
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: Total return with a low to moderate correlation to traditional financial market indices.
Invesco - Invesco V.I. Mid Cap Core Equity Fund: Series I Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: Long-term growth of capital.
Invesco - Invesco V.I. Mid Cap Growth Fund: Series I Shares
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: Capital growth.
Ivy Funds Variable Insurance Portfolios - Asset Strategy
Investment Advisor: Waddell & Reed Investment Management Company
Investment Objective: To seek to provide total return.
Ivy Funds Variable Insurance Portfolios - High Income
Investment Advisor: Waddell & Reed Investment Management Company
Investment Objective: To seek to provide total return through a combination of high current income and capital appreciation.
Ivy Funds Variable Insurance Portfolios - Mid Cap Growth
This Sub-Account is only available in policies issued before May 1, 2014
Investment Advisor: Waddell & Reed Investment Management Company
Investment Objective: To seek to provide growth of capital.
Janus Aspen Series - Balanced Portfolio: Service Shares
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term capital growth, consistent with preservation of capital and balanced by current income.
Janus Aspen Series - Forty Portfolio: Service Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
Janus Aspen Series - Global Technology Portfolio: Service Shares
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
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Janus Aspen Series - Overseas Portfolio: Service Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
Lord Abbett Series Fund, Inc. - Total Return Portfolio: Class VC
Investment Advisor: Lord, Abbett & Co. LLC
Investment Objective: The Fund’s investment objective is to seek income and capital appreciation to produce a high total return.
MFS® Variable Insurance Trust - MFS New Discovery Series: Initial Class
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: To seek capital appreciation.
MFS® Variable Insurance Trust - MFS Value Series: Initial Class
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: To seek capital appreciation.
MFS® Variable Insurance Trust II - MFS Massachusetts Investors Growth Stock Portfolio: Initial Class
This Sub-Account is only available in policies issued before March 27, 2015
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: To seek capital appreciation.
Nationwide Variable Insurance Trust - American Century NVIT Multi Cap Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: American Century Investment Management, Inc.
Investment Objective: The Fund seeks capital appreciation, and secondarily current income.
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II
Investment Advisor: Capital Research and Management Company
Investment Objective: The fund seeks to provide high total return (including income and capital gains) consistent with preservation of capital over the long term.
Designation: FF
Nationwide Variable Insurance Trust - American Funds NVIT Bond Fund: Class II
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Capital Research and Management Company
Investment Objective: The Fund seeks to maximize an investors level of current income and preserve the investor's capital.
Nationwide Variable Insurance Trust - American Funds NVIT Global Growth Fund: Class II
Investment Advisor: Capital Research and Management Company
Investment Objective: The Fund is designed for investors seeking capital appreciation through stocks.
Nationwide Variable Insurance Trust - American Funds NVIT Growth Fund: Class II
This Sub-Account is only available in policies issued before May 1, 2014
Investment Advisor: Capital Research and Management Company
Investment Objective: The Fund is designed for investors seeking capital appreciation principally through investment in stocks.
Nationwide Variable Insurance Trust - American Funds NVIT Growth-Income Fund: Class II
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Capital Research and Management Company
Investment Objective: The fund seeks to achieve long-term growth of capital and income.
Designation: FF
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Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Federated Investment Management Company
Investment Objective: The Fund seeks to provide high current income.
Nationwide Variable Insurance Trust - Invesco NVIT Comstock Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Invesco Advisers, Inc.
Investment Objective: The Fund’s investment objective is to seek capital growth and income through investments in equity securities, including common stocks, preferred stocks, and convertible securities.
Nationwide Variable Insurance Trust - Loring Ward NVIT Capital Appreciation Fund: Class P
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: LWI Financial Inc.
Investment Objective: To provide growth of capital, and secondarily current income.
Designation: FF
Nationwide Variable Insurance Trust - Loring Ward NVIT Moderate Fund: Class P
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: LWI Financial Inc.
Investment Objective: Seeks a high level of total return consistent with a moderate level of risk.
Designation: FF
Nationwide Variable Insurance Trust - Neuberger Berman NVIT Multi Cap Opportunities Fund: Class I
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Management LLC
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - Neuberger Berman NVIT Socially Responsible Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Management LLC
Investment Objective: The Fund seeks long-term growth of capital by investing primarily in securities of companies that meet the fund's financial criteria and social policy.
Nationwide Variable Insurance Trust - NVIT Bond Index Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks to match the performance of the Barclays U.S. Aggregate Bond Index ("Aggregate Bond Index") as closely as possible before the deduction of Fund expenses.
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Aggressive Fund seeks maximum growth of capital consistent with a more aggressive level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks a high level of total return through investment in both equity and fixed income securities.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks growth of capital, but also seeks income consistent with a less aggressive level of risk as compared to other Cardinal Funds.
Designation: FF
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Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks a high level of total return consistent with a conservative level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Managed Growth & Income Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: Seeks a high level of total return through investment in both equity and fixed-income securities, consistent with preservation of capital
Designation: FF, VOL
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Managed Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: Seeks growth primarily and investment income secondarily.
Designation: FF, VOL
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks a high level of total return consistent with a moderate level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks growth of capital, but also seeks income consistent with a moderately aggressive level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The fund seeks a high level of total return consistent with a moderately conservative level of risk.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Core Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: The Fund seeks a high level of current income consistent with preserving capital.
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Fixed Income LLC
Investment Objective: The fund seeks long-term total return consistent with reasonable risk.
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Lazard Asset Management, LLC and Standard Life Investments
Investment Objective: The Fund seeks long-term capital growth by investing primarily in equity securities of companies located in emerging market countries.
Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: The fund seeks as high level of income as is consistent with the preserving of capital.
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Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class I
This Sub-Account is only available in policies issued before April 26, 2014
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Lazard Asset Management LLC
Investment Objective: The Fund seeks long-term capital growth by investing primarily in equity securities of companies in Europe, Australasia, the Far East and other regions, including developing countries.
Nationwide Variable Insurance Trust - NVIT International Index Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks to match the performance of the Morgan Stanley Capital International Europe, Australasia and Far East Index ("MSCI EAFE® Index") as closely as possible before the deduction of Fund expenses.
Nationwide Variable Insurance Trust - NVIT International Index Fund: Class II
This Sub-Account is only available in policies issued before April 26, 2014
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks to match the performance of the Morgan Stanley Capital International Europe, Australasia and Far East Index ("MSCI EAFE® Index") as closely as possible before the deduction of Fund expenses.
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Aggressive Fund seeks maximum growth of capital consistent with a more aggressive level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Balanced Fund seeks a high level of total return through investment in both equity and fixed-income securities.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Capital Appreciation Fund seeks growth of capital, but also seeks income consistent with a less aggressive level of risk as compared to other NVIT Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Conservative Fund seeks a high level of total return consistent with a conservative level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Managed Growth & Income Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: Seeks a high level of total return through investment in both equity and fixed-income securities, consistent with preservation of capital.
Designation: FF, VOL
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Nationwide Variable Insurance Trust - NVIT Investor Destinations Managed Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: Seeks growth primarily and investment income secondarily.
Designation: FF, VOL
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Moderate Fund seeks a high level of total return consistent with a moderate level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Moderately Aggressive Fund seeks growth of capital, but also seeks income consistent with a moderately aggressive level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Moderately Conservative Fund seeks a high level of total return consistent with a moderately conservative level of risk.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Large Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Boston Advisors, LLC
Investment Objective: The Fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Mid Cap Index Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks capital appreciation.
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Federated Investment Management Company
Investment Objective: The Fund seeks as high a level of current income as is consistent with preserving capital and maintaining liquidity.
Nationwide Variable Insurance Trust - NVIT Multi Sector Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Logan Circle Partners, L.P.
Investment Objective: The Fund seeks to provide above average total return over a market cycle of three to five years.
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Invesco Advisers, Inc. and American Century Investment Management, Inc.
Investment Objective: The Fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Dimensional Fund Advisors LP; JPMorgan Investment Management Inc.
Investment Objective: The Fund seeks long-term capital appreciation.
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Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Massachusetts Financial Services Company; Smith Asset Management Group; and Winslow Capital Management, LLC
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Massachusetts Financial Services Company; Wellington Management Company, LLP; The Boston Company Asset Management, LLC
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Management LLC; Wells Capital Management, Inc.
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: American Century Investment Management, Inc.; Thompson, Siegel & Walmsley LLC; WEDGE Capital Management L.L.P.
Investment Objective: The fund seeks long-term capital appreciation.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: OppenheimerFunds, Inc.; Wellington Management Company, LLP
Investment Objective: The Fund seeks capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Epoch Investment Partners, Inc.; JPMorgan Investment Management Inc.
Investment Objective: The Fund seeks capital appreciation.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Jacobs Levy Equity Management, Morgan Stanley Investment Management Inc; OppenheimerFunds, Inc.; Putnam Investment Management, LLC
Investment Objective: The Fund seeks capital appreciation.
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: HighMark Capital Management, Inc.
Investment Objective: The Fund seeks total return through a flexible combination of capital appreciation and current income.
Nationwide Variable Insurance Trust - NVIT Real Estate Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Brookfield Investment Management, Inc.
Investment Objective: The Fund seeks current income and long-term capital appreciation.
Nationwide Variable Insurance Trust - NVIT S&P 500® Index Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: Long-term capital appreciation.
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: The Fund seeks to provide a high level of current income while preserving capital and minimizing fluctuations in share value.
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Nationwide Variable Insurance Trust - NVIT Small Cap Index Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks to match the performance of the Russell 2000® Index.
Nationwide Variable Insurance Trust - Templeton NVIT International Value Fund: Class I
This Sub-Account is only available in policies issued before May 1, 2014
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Templeton Investment Counsel, LLC
Investment Objective: The Fund seeks to maximize total return consisting of capital appreciation and/or current income.
Neuberger Berman Advisers Management Trust - AMT Mid-Cap Growth Portfolio: S Class Shares
Investment Advisor: Neuberger Berman Management LLC
Sub-advisor: Neuberger Berman, LLC
Investment Objective: The Fund seeks growth of capital.
Neuberger Berman Advisers Management Trust - AMT Short Duration Bond Portfolio: I Class Shares
This Sub-Account is only available in policies issued before May 1, 2012
Investment Advisor: Neuberger Berman Management LLC
Sub-advisor: Neuberger Berman Fixed Income LLC
Investment Objective: Highest available current income consistent with liquidity and low risk to principal; total return is a secondary goal.
Neuberger Berman Advisers Management Trust - AMT Socially Responsive Portfolio: I Class Shares
This Sub-Account is only available in policies issued before May 1, 2008
Investment Advisor: Neuberger Berman Management LLC
Sub-advisor: Neuberger Berman, LLC
Investment Objective: Long-term growth by investing primarily in securities of companies that meet financial criteria and social policy.
Northern Lights Variable Trust - TOPS Managed Risk Balanced ETF Portfolio: Class 3
Investment Advisor: ValMark Advisers, Inc.
Sub-advisor: Milliman, Inc.
Investment Objective: Seeks to provide income and capital appreciation with less volatility than the fixed income and equity markets.
Designation: FF, VOL
Northern Lights Variable Trust - TOPS Managed Risk Growth ETF Portfolio: Class 3
Investment Advisor: ValMark Advisers, Inc.
Sub-advisor: Milliman, Inc.
Investment Objective: Seeks capital appreciation with less volatility than the equity markets.
Designation: FF, VOL
Northern Lights Variable Trust - TOPS Managed Risk Moderate Growth ETF Portfolio: Class 3
Investment Advisor: ValMark Advisers, Inc.
Sub-advisor: Milliman, Inc.
Investment Objective: Seeks capital appreciation with less volatility than the equity markets.
Designation: FF, VOL
Oppenheimer Variable Account Funds - Oppenheimer Discovery Mid Cap Growth Fund/VA: Non-Service Shares
This Sub-Account is only available in policies issued before May 1, 2003
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: Capital appreciation.
Oppenheimer Variable Account Funds - Oppenheimer Global Fund/VA: Non-Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The Fund seeks capital appreciation.
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Oppenheimer Variable Account Funds - Oppenheimer Global Strategic Income Fund/VA: Non-Service Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The Fund seeks total return.
Oppenheimer Variable Account Funds - Oppenheimer International Growth Fund/VA: Non-Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The Fund seeks capital appreciation.
Oppenheimer Variable Account Funds - Oppenheimer Main Street Fund®/VA: Non-Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The Fund seeks capital appreciation.
Oppenheimer Variable Account Funds - Oppenheimer Main Street Small Cap Fund®/VA: Non-Service Shares
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: Capital appreciation.
PIMCO Variable Insurance Trust - All Asset Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Sub-advisor: Research Affiliates
Investment Objective: Seeks maximum real return consistent with preservation of capital and prudent investment management. The portfolio seeks to achieve its investment objective by investing under normal circumstances substantially all of its assets in Institutional Class Shares of the Underlying PIMCO Funds
Designation: FF
PIMCO Variable Insurance Trust - CommodityRealReturn® Strategy Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum real return, consistent with prudent investment management.
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum total return consistent with preservation of capital and prudent investment management.
PIMCO Variable Insurance Trust - Low Duration Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum total return, consistent with preservation of capital and prudent investment management.
PIMCO Variable Insurance Trust - Total Return Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum total return consistent with preservation of capital and prudent investment management.
Putnam Variable Trust - Putnam VT Growth & Income Fund: Class IB
This Sub-Account is only available in policies issued before May 1, 2005
Investment Advisor: Putnam Investment Management, LLC
Sub-advisor: Putnam Investments Limited
Investment Objective: Capital growth and current income.
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Putnam Variable Trust - Putnam VT International Equity Fund: Class IB
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: Putnam Investment Management, LLC
Sub-advisor: Putnam Investments Limited and The Putnam Advisory Company, LLC
Investment Objective: Capital appreciation.
Putnam Variable Trust - Putnam VT Voyager Fund: Class IB
This Sub-Account is only available in policies issued before May 1, 2005
Investment Advisor: Putnam Investment Management, LLC
Sub-advisor: Putnam Investments Limited
Investment Objective: Capital appreciation.
T. Rowe Price Equity Series, Inc. - T. Rowe Price Health Sciences Portfolio: II
Investment Advisor: T. Rowe Price Associates, Inc.
Investment Objective: Long-term capital appreciation.
The Universal Institutional Funds, Inc. - Core Plus Fixed Income Portfolio: Class I
This Sub-Account is only available in policies issued before May 1, 2009
Investment Advisor: Morgan Stanley Investment Management Inc.
Investment Objective: Above-average total return over a market cycle of three to five years by investing primarily in a diversified portfolio of fixed income securities.
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class I
This Sub-Account is only available in policies issued before May 1, 2004
Investment Advisor: Morgan Stanley Investment Management Inc.
Investment Objective: High total return by investing primarily in fixed income securities of government and government-related issuers and, to a lesser extent, of corporate issuers in emerging market countries.
VanEck VIP Trust - VanEck VIP Emerging Markets Fund: Initial Class
This Sub-Account is only available in policies issued before May 1, 2002
Investment Advisor: Van Eck Associates Corporation
Investment Objective: Long-term capital appreciation by investing primarily in equity securities in emerging markets around the world.
VanEck VIP Trust - VanEck VIP Global Hard Assets Fund: Initial Class
Investment Advisor: Van Eck Associates Corporation
Investment Objective: Long-term capital appreciation by investing primarily in hard asset securities. Income is a secondary consideration.
Wells Fargo Variable Trust - VT Small Cap Growth Fund: Class 2 (formerly, Wells Fargo Advantage Variable Trust - Wells Fargo Advantage VT Small Cap Growth Fund: Class 2)
This Sub-Account is only available in policies issued before May 1, 2013
Investment Advisor: Wells Fargo Funds Management, LLC
Sub-advisor: Wells Fargo Asset Management
Investment Objective: Seeks long-term capital appreciation.
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Appendix B: Definitions
Accumulation Unit – The measure of an investment in, or share of, a Sub-Account. Accumulation Unit values are initially set at $10 for each Sub-Account.
Attained Age – A person's Issue Age plus the number of full years since the Policy Date.
Base Policy Specified Amount – The amount of insurance coverage selected under the base policy, excluding any Rider Specified Amount.
Cash Surrender Value – The Cash Value minus Indebtedness and any surrender charge.
Cash Value – The total of amounts allocated to the Sub-Accounts, the policy loan account, and the Fixed Account.
Code – The Internal Revenue Code of 1986, as amended.
Death Benefit – The amount paid upon the Insured's death, before the deduction of any Indebtedness or due and unpaid policy charges.
Fixed Account – An investment option that is funded by Nationwide's general account.
Grace Period – A 61-day period after which the Policy will Lapse if sufficient payments are not made to prevent Lapse.
In Force – Any time during which benefits are payable under the policy and any elected Rider(s).
Indebtedness – The total amount of all outstanding policy loans, including principal and interest due.
Insured – The person whose life is insured under the policy, and whose death triggers payment of the Death Benefit.
Investment Experience – The market performance of a mutual fund/Sub-Account.
Issue Age – A person's age based on their last birthday on or before the Policy Date.
Lapse – The policy terminates without value.
Long-Term Care Specified Amount – The elected Long-Term Care Rider benefit amount adjusted for any post issue increases and decreases. This amount must be at least 10% of the Total Specified Amount and no more than 100% of the Total Specified Amount.
Maturity Date – The policy anniversary on which the Insured reaches age 100.
Minimum Required Death Benefit – The lowest Death Benefit that will qualify the policy as life insurance under the Code.
Nationwide – Nationwide Life Insurance Company, us, we, or our.
Net Amount At Risk – The policy's base Death Benefit minus the policy's Cash Value.
Net Asset Value (NAV) – The price of each share of a mutual fund in which a Sub-Account invests. NAV is calculated by subtracting the mutual fund's liabilities from its total assets, and dividing that figure by the number of shares outstanding. Nationwide uses NAV to calculate the value of Accumulation Units. NAV does not reflect deductions made for charges taken from the Sub-Accounts.
Net Premium – Premium after transaction charges, but before any allocation to an investment option.
Policy Data Page(s) – The Policy Data Page(s) contains more detailed information about the policy, some of which is unique to the policy owner, the beneficiary, and the Insured.
Policy Date – The date the policy takes effect as shown on the Policy Data Page. Policy years, months, and anniversaries are measured from this date.
Policy owner or Owner – The person or entity named as the owner on the application, or the person or entity assigned ownership rights.
Policy Proceeds or Proceeds – Policy Proceeds may constitute the Death Benefit, or the amount payable if the policy matures or is surrendered, adjusted to account for any unpaid charges, Indebtedness and Rider benefits.
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Premium – Amount(s) paid to purchase and maintain the policy.
Premium Load – The aggregate of the sales load and premium tax charges.
Rider – An optional benefit purchased under the policy. Rider availability and Rider terms may vary depending on the state in which the policy was issued.
Rider Specified Amount – The portion of the Total Specified Amount attributable to the Additional (insurance) Protection Rider.
SEC – The Securities and Exchange Commission.
Service Center – The department of Nationwide responsible for receiving all service and transaction requests relating to the policy. For service and transaction requests submitted other than by telephone (including fax requests), the Service Center is Nationwide's mail and document processing facility. For service and transaction requests communicated by telephone, the Service Center is Nationwide’s operations processing facility, see Contacting the Service Center.
Sub-Account(s) – The mechanism used to account for allocations of Net Premium and Cash Value among the policy's variable investment options.
Substandard Rating – An underwriting classification based on medical and/or non-medical factors used to determine what to charge for life insurance based on characteristics of the Insured beyond traditional factors for standard risks, which include age, sex, and smoking habits of the Insured. Substandard Ratings are shown in the Policy Data Pages as rate class multiples (medical factors) and/or monthly flat extras (medical and/or non-medical factors). The higher the rate class multiple or monthly flat extra, the greater the risk assessed and the higher the cost of coverage.
Total Specified Amount – The sum of the Base Policy Specified Amount and the Rider Specified Amount, if applicable.
Valuation Period – The period during which Nationwide determines the change in the value of the Sub-Accounts. One Valuation Period ends and another begins with the close of trading on the NYSE.
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Outside back cover page
To learn more about the policy, the policy owner should read the Statement of Additional Information (the "SAI") dated the same date as this prospectus. For a free copy of the SAI, to receive personalized illustrations of Death Benefits, Net Cash Surrender Values, and Policy Account Values, and to request other information about the policy contact the Service Center:
• by telephone at 1-800-848-6331
• by mail to Nationwide Life Insurance Company
P.O. Box 182835
Columbus, OH 43218-2835
The SAI has been filed with the SEC and is incorporated by reference into this prospectus. The SEC maintains an Internet website (http://www.sec.gov) that contains the SAI and other information about Nationwide Life Insurance Company and the policy. Information about Nationwide Life Insurance Company and the policy (including the SAI) may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC, or may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC, 100 F Street NE, Washington, DC 20549. Additional information on the operation of the Public Reference Room may be obtained by calling the SEC at (202) 551-8090.
Investment Company Act of 1940 Registration File No. 811-08301
Securities Act of 1933 Registration File No. 333-31725

Nationwide VLI Separate Account-4
(Registrant)
Nationwide Life Insurance Company
(Depositor)
Service Center
P.O. Box 182835
Columbus, OH 43218-2835
1-800-848-6331
TDD: 1-800-238-3035
STATEMENT OF ADDITIONAL INFORMATION
Individual Flexible Premium Variable Universal Life Insurance Policies
This Statement of Additional Information ("SAI") contains additional information regarding Individual Flexible Premium Variable Universal Life Insurance Policies offered by Nationwide Life Insurance Company ("Nationwide"). This SAI is not a prospectus and should be read together with the policy prospectus dated May 1, 2016 and the prospectuses for the mutual funds. The prospectus is incorporated by reference in this SAI. Copies may be obtained FREE OF CHARGE by writing or calling the Service Center. Capitalized terms in this SAI correspond to terms defined in the prospectus.
The date of this Statement of Additional Information is May 1, 2016.
TABLE OF CONTENTS

 


General Information and History
Nationwide VLI Separate Account-4 (the "Variable Account") is a separate investment account of Nationwide Life Insurance Company ("Nationwide"). Nationwide is a stock life insurance company organized the laws of the State of Ohio in March 1929 with its Home Office at One Nationwide Plaza, Columbus, Ohio 43215. Nationwide provides life insurance, annuities and retirement products. Nationwide is admitted to do business in all states, the District of Columbia, Guam, the U.S. Virgin Islands, and Puerto Rico. Nationwide is a member of the Nationwide group of companies and all of its common stock is owned by Nationwide Financial Services, Inc. ("NFS"), a holding company. Nationwide Corporation owns all of NFS's common stock and is a holding company, as well. All of Nationwide Corporation's common stock is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), the ultimate controlling persons of the Nationwide group of companies. The Nationwide group of companies is one of America's largest insurance and financial services family of companies, with combined assets of over $197 billion as of December 31, 2015.
Nationwide VLI Separate Account-4
Nationwide VLI Separate Account-4 is a separate account that invests in mutual funds offered and sold to insurance companies and certain retirement plans. Nationwide established the Variable Account on May 21, 1998 pursuant to Ohio law. Although the Variable Account is registered with the SEC as a unit investment trust pursuant to the Investment Company Act of 1940, the SEC does not supervise the management of Nationwide or the management of the Variable Account. Nationwide serves as the custodian of the assets of the Variable Account.
Nationwide Investment Services Corporation (NISC)
The policies are distributed by NISC, located at One Nationwide Plaza, Columbus, Ohio 43215, a wholly owned subsidiary of Nationwide. For policies issued in Michigan, all references to NISC will mean Nationwide Investment Svcs. Corporation.
The policies will be sold on a continuous basis by licensed insurance agents in those states where the policies may lawfully be sold. Agents are registered representatives of broker dealers registered under the Securities Exchange Act of 1934 who are member firms of the Financial Industry Regulatory Authority (FINRA).
Gross first year commissions plus any expense allowance payments paid by Nationwide on the sale of these policies provided by NISC will not exceed the maximum, which is 99% of first year premiums and 3% of renewal premium after the first year. Commission may also be paid on an asset-based amount instead of a premium based amount. If an asset-based commission is paid, it will not exceed 0.45% of the non-loaned cash value per year.
No underwriting commissions were paid to NISC for each of this Variable Account’s last three fiscal years.
Services
Nationwide has responsibility for administration of the policies and the Variable Account. Nationwide also maintains the records of the name, address, taxpayer identification number, and other pertinent information for each policy owner and the number and type of policy issued to each policy owner and records with respect to the policy value of each policy.
Nationwide will maintain a record of all purchases and redemption of shares of the mutual funds.
Distribution, Promotional, and Sales Expenses
In addition to or partially in lieu of commission, Nationwide may pay the selling firms a marketing allowance, which is based on the firm's ability and demonstrated willingness to promote and market Nationwide's products. How any marketing allowance is spent is determined by the firm, but generally will be used to finance firm activities that may contribute to the promotion and marketing of Nationwide's products. Nationwide makes certain assumptions about the amount of marketing allowance it will pay and takes these assumptions into consideration when it determines the charges that will be assessed under the policies. Nationwide assumed 5.00% of the Commissionable Target Premium for marketing allowance when determining the charges for the contracts. The actual amount of the marketing allowance may be higher or lower than this assumption. If the actual amount of marketing allowance paid is more than what was assumed, Nationwide will fund the difference. If the actual amount of marketing allowance paid is less than what was assumed, Nationwide may use the excess to pay other sales expenses, non-sales expenses, and/or profit. For more information about marketing allowance or how a particular selling firm uses marketing allowances, consult with your registered representative.
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Commissionable Target Premium (CTP) is an amount used in the calculation of the Premium Load and total compensation Nationwide pays. CTP is actuarially derived based on the Base Policy Specified Amount, the Insured’s characteristics and the death benefit option of the policy.
Independent Registered Public Accounting Firm
The financial statements of Nationwide VLI Separate Account-4 and the consolidated financial statements and schedules of Nationwide Life Insurance Company and subsidiaries for the periods indicated have been included herein in reliance upon the reports of KPMG LLP, independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing. KPMG LLP is located at 191 West Nationwide Blvd., Suite 500, Columbus, Ohio 43215.
Underwriting Procedure
Nationwide underwrites the policies issued through Nationwide VLI Separate Account-4. The policy's cost of insurance depends upon the Insured's sex, issue age, risk class and length of time the policy has been In Force. The rates will vary depending upon tobacco use and other risk factors. Monthly cost of insurance rates will not exceed those guaranteed in the policy. Guaranteed cost of insurance rates for policies issued on Specified Amounts less than $100,000 are based on the 1980 Commissioners’ Extended Term Mortality Table, Age Last Birthday ("1980 CET"). Guaranteed cost of insurance rates for policies issued on Specified Amounts $100,000 or more are based on the 1980 Commissioners’ Standard Ordinary Mortality Table, Age Last Birthday ("1980 CSO"). Guaranteed cost of insurance rates for policies issued on a substandard basis are based on appropriate percentage multiples of the standard guaranteed cost of insurance rate on a standard basis. That is, standard guaranteed cost of insurance rates for substandard risks are guaranteed cost of insurance rates for standard risks times a percentage greater than 100%. These mortality tables are sex distinct. In addition, separate mortality tables will be used for tobacco and non-tobacco.
Mortality tables are unisex for:
• policies issued in the State of Montana; and
• group or sponsored arrangements (including our employees and their family members).
The rate class of an insured may affect the cost of insurance rate. We currently place insureds into both standard rate classes and substandard rate classes that involve a higher mortality risk. In an otherwise identical policy, an insured in the standard rate class will have a lower cost of insurance than an insured in a rate class with higher mortality risks. Any change in the cost of insurance rates will apply to all insureds of the same age, gender, risk class and whose policies have been in effect for the same length of time. The cost of insurance rates, policy charges, and payment options for policies issued in some states or in connection with certain employee benefit arrangements may be issued on a gender-neutral (unisex) basis. The unisex rates will be higher than those applicable to females and lower than those applicable to males. If the rating class for any increase in the Specified Amount of insurance coverage is not the same as the rating class at issue, the cost of insurance rate used after such increase will be a composite rate based upon a weighted average of the rates of the different rating classes. The actual charges made during the policy year will be shown in the annual report delivered to policy owners.
Policy Restoration Procedure
Requests to restore a surrendered policy must meet the following requirements:
• the request must be in writing and signed by the policy owner (if the surrender was a Code Section 1035 exchange to a new policy with a different insurer, the signature of an officer of the replacing insurer is also required);
• the written request must be received at the Service Center within 30 days of the date the policy was surrendered (periods up to 60 days will be permitted based on the right to examine period applicable to replaced life insurance policies in the state where the policy was issued);
• the surrender Proceeds must be returned in their entirety; and
• the insured must be alive on the date the restoration request is received.
No proof of insurability or additional underwriting will be required for requests to restore a surrendered policy that meet the above requirements.
3

 

A restored policy will be treated as if it had never been surrendered for all purposes, including Investment Experience, accrual of interest, and deduction of charges, resulting in the following:
• the returned surrender proceeds and any amount taken as a surrender charge will be used to purchase Accumulation Units according to the allocations currently in effect on, and priced as of, the surrender date;
• any charges that would otherwise have been assessed during the period of surrender will be assessed as of the date(s) they were due resulting in the cancellation of Accumulation Units priced as of the applicable date(s);
• interest will be credited on any allocation to a fixed investment option at the rate(s) in effect during the period of surrender;
• interest charged and credited on any Indebtedness will accrue at the rates in effect for the period of surrender; and
• any transfer of loan interest charged or credited that would have occurred during the period of surrender will be transferred as of the date(s) such transfers would have otherwise occurred.
Policy restoration is not a contract right of the policy; it is an administrative procedure based on requirements of state insurance law and the terms are subject to change without notice at any time.
Maximum Surrender Charge Calculation
The maximum surrender charge under the policy is based on the following calculation.
Maximum Surrender Charge equals 26.50% multiplied by the lesser of (a) or (b), where:
(a) = the Specified Amount multiplied by the rate indicated on the chart "Surrender Target Factor" below divided by 1,000; and
(b) = Premiums paid by the policy owner during the first policy year
Plus (c) multiplied by (d) where:
(c) = the Specified Amount divided by 1,000; and
(d) = the applicable rate from the "Administrative Target Factor" chart below.
The Surrender Target Factor allows the company to account for the probability that our costs incurred in the sales process will not be recouped. The Administrative Target Factor allows the company to account for the probability (at various ages) that death will occur and no surrender charge will be recouped.
Surrender Target Factor
Age   Male Non-Tobacco   Male Tobacco   Female Non-Tobacco   Female Tobacco
0   0.00   3.35   0.00   2.54
1   0.00   3.38   0.00   2.57
2   0.00   3.50   0.00   2.66
3   0.00   3.64   0.00   2.75
4   0.00   3.78   0.00   2.86
5   0.00   3.93   0.00   2.96
6   0.00   4.09   0.00   3.08
7   0.00   4.27   0.00   3.20
8   0.00   4.45   0.00   3.34
9   0.00   4.65   0.00   3.47
10   0.00   4.87   0.00   3.62
11   0.00   5.09   0.00   3.78
12   0.00   5.33   0.00   3.94
13   0.00   5.57   0.00   4.12
14   0.00   5.82   0.00   4.30
15   0.00   6.07   0.00   4.48
16   0.00   6.31   0.00   4.67
17   0.00   6.55   0.00   4.87
18   5.11   6.80   4.27   5.08
19   5.30   7.05   4.45   5.29
4

 

Age   Male Non-Tobacco   Male Tobacco   Female Non-Tobacco   Female Tobacco
20   5.50   7.32   4.64   5.52
21   5.71   7.60   4.83   5.76
22   5.93   7.90   5.04   6.01
23   6.17   8.22   5.26   6.28
24   6.42   8.57   5.49   6.56
25   6.69   8.94   5.73   6.86
26   6.99   9.34   5.99   7.17
27   7.30   9.77   6.25   7.50
28   7.63   10.22   6.54   7.85
29   7.98   10.71   6.84   8.22
30   8.36   11.23   7.16   8.61
31   8.76   11.79   7.49   9.02
32   9.19   12.38   7.85   9.45
33   9.64   13.01   8.22   9.91
34   10.12   13.67   8.62   10.39
35   10.63   14.38   9.04   10.90
36   11.16   15.12   9.48   11.44
37   11.73   15.92   9.95   12.01
38   12.34   16.75   10.44   12.60
39   12.97   17.64   10.96   13.22
40   13.65   18.58   11.50   13.87
41   14.36   19.56   12.07   14.55
42   15.12   20.60   12.67   15.26
43   15.93   21.70   13.30   16.01
44   16.78   22.87   13.97   16.79
45   17.68   24.09   14.68   17.60
46   18.65   25.39   15.42   18.47
47   19.67   26.76   16.21   19.37
48   20.76   28.21   17.05   20.33
49   21.92   29.76   17.93   21.34
50   23.15   31.40   18.87   22.40
51   24.47   33.13   19.87   23.53
52   25.87   34.98   20.93   24.72
53   27.37   36.93   22.05   25.97
54   28.97   38.99   23.25   27.30
55   30.67   41.17   24.51   28.70
56   32.49   43.48   25.86   30.18
57   34.42   45.92   27.31   31.76
58   36.49   48.52   28.86   33.46
59   38.71   51.28   30.52   35.28
60   41.09   54.23   32.32   37.25
61   43.63   57.36   34.26   39.37
62   46.36   60.70   36.35   41.65
63   49.28   64.24   38.59   44.09
64   52.40   67.98   40.99   46.69
65   55.75   71.92   43.56   49.46
66   59.32   76.10   46.32   52.41
67   63.16   80.52   49.30   55.57
68   67.28   85.23   52.52   58.99
69   71.73   90.27   56.04   62.72
70   76.52   95.66   59.88   66.80
71   81.69   101.41   64.08   71.26
72   87.24   107.54   68.67   76.11
73   93.18   114.01   73.64   81.35
74   99.50   120.81   79.03   86.97
5

 

Age   Male Non-Tobacco   Male Tobacco   Female Non-Tobacco   Female Tobacco
75   106.21   127.90   84.84   92.97
76   113.33   135.27   91.10   99.39
77   120.92   142.94   97.88   106.27
78   129.04   150.99   105.24   113.68
79   137.79   159.53   113.28   121.73
80   147.23   168.60   122.07   130.49
81   147.23   168.60   122.07   130.49
82   147.23   168.60   122.07   130.49
83   147.23   168.60   122.07   130.49
84   147.23   168.60   122.07   130.49
85   147.23   168.60   122.07   130.49
Administrative Target Factor
Issue Age   Administrative Target Component
With Specified Amount Less Than $100,000 		  Administrative Target Component
With Specified Amount Of $100,000 And More
0 through 35   6.00   4.00
36 through 55   7.50   5.00
56 through 85   7.50   6.50
Illustrations
Nationwide will provide illustrations of future benefits under the policy before the policy is purchased and upon request thereafter. Nationwide may assess a $25 fee for this service to persons who request more than one policy illustration during a policy year.
Note: The policy owner selects the Premium amount and frequency shown in the policy illustration to show Nationwide how much Premium the policy owner intends to pay and when. Illustrated Premium and hypothetical rates of return are not guaranteed. Investment Experience varies over time, is rarely the same year-over-year, and may be negative. Because the policy is a variable universal life insurance policy with the potential for unfavorable Investment Experience, including extended periods of significant stock market decline, additional Premium may be required to meet a policy owner's goals and/or to prevent the policy from Lapsing. Generally, variable universal life insurance is considered a long-term investment. Policy owners should weigh the investment risk and costs associated with the policy against their objectives, time horizon, risk tolerance, and ability to pay additional Premium if necessary.
Advertising
Rating Agencies
Independent financial rating services, including Moody's, Standard & Poor's and A.M. Best Company rank and rate Nationwide. The purpose of these ratings is to reflect the financial strength or claims-paying ability of Nationwide. The ratings are not intended to reflect the Investment Experience or financial strength of the Variable Account. Nationwide may advertise these ratings from time to time. In addition, Nationwide may include in certain advertisements, endorsements in the form of a list of organizations, individuals or other parties which recommend Nationwide or the policies. Furthermore, Nationwide may occasionally include in advertisements comparisons of currently taxable and tax deferred investment programs, based on selected tax brackets, or discussions of alternative investment vehicles and general economic conditions.
Money Market Yields
Nationwide may advertise the "yield" and "effective yield" for the money market Sub-Account. Yield and effective yield are annualized, which means that it is assumed that the underlying mutual fund generates the same level of net income throughout a year.
Yield is a measure of the net dividend and interest income earned over a specific seven-day period (which period will be stated in the advertisement) expressed as a percentage of the offering price of the underlying mutual fund's units. The effective yield is calculated similarly, but reflects assumed compounding, calculated under rules prescribed by the SEC. Thus, effective yield will be slightly higher than yield, due to the compounding.
6

 

Historical Performance of the Sub-Accounts
Nationwide will advertise historical performance of the Sub-Accounts in accordance with SEC prescribed calculations. Performance information is annualized. However, if a Sub-Account has been available in the Variable Account for less than one year, the performance information for that Sub-Account is not annualized. Performance information is based on historical earnings and is not intended to predict or project future results.
Additional Materials
Nationwide may provide information on various topics to owners and prospective purchasers in advertising, sales literature, or other materials.
Tax Definition of Life Insurance
Section 7702(b)(1) of the Internal Revenue Code provides that if one of two alternate tests is met, a policy will be treated as life insurance for federal tax purposes. The two tests are referred to as the Guideline Premium/Cash Value Corridor Test and the Cash Value Accumulation Test. Both tests are available to flexible premium policies such as this one.
The tables that follow show, numerically, the requirements for each test.
Guideline Premium/Cash Value Corridor Test
Table of Applicable Percentages of Cash Value
Attained Age
of Insured 		  Percentage of
Cash Value
0-40   250%
41   243%
42   236%
43   229%
44   222%
45   215%
46   209%
47   203%
48   197%
49   191%
50   185%
51   178%
52   171%
53   164%
54   157%
55   150%
56   146%
57   142%
58   138%
59   134%
Attained Age
of Insured 		  Percentage of
Cash Value
60   130%
61   128%
62   126%
63   124%
64   122%
65   120%
66   119%
67   118%
68   117%
69   116%
70   115%
71   113%
72   111%
73   109%
74   107%
75   105%
76   105%
77   105%
78   105%
79   105%
80   105%
Attained Age
of Insured 		  Percentage of
Cash Value
81   105%
82   105%
83   105%
84   105%
85   105%
86   105%
87   105%
88   105%
89   105%
90   105%
91   104%
92   103%
93   102%
94   101%
95   101%
96   101%
97   101%
98   101%
99   101%
100   100%
Cash Value Accumulation Test
The Cash Value Accumulation Test requires the Death Benefit to exceed an applicable percentage of the Cash Value. These applicable percentages are calculated by determining net single premiums, as defined in Code Section 7702(b), for each policy year given a set of actuarial assumptions. The relevant material assumptions include an interest rate of 4% and 1980 CSO guaranteed mortality as prescribed in Code Section 7702 for the Cash Value Accumulation Test. The resulting net single premiums are then inverted (i.e., multiplied by 1/net single premium) to give the applicable Cash Value percentages. These premiums vary with the ages, sexes, and risk classifications of the insureds.
The table below provides an example of applicable percentages for the Cash Value Accumulation Test. This example is for a male preferred non-tobacco issue age 55.
7

 

Policy
Year 		  Percentage of
Cash Value
1   302%
2   290%
3   279%
4   269%
5   259%
6   249%
7   240%
8   231%
9   223%
10   215%
11   207%
12   200%
13   193%
14   186%
15   180%
Policy
Year 		  Percentage of
Cash Value
16   174%
17   169%
18   164%
19   159%
20   154%
21   150%
22   146%
23   142%
24   139%
25   136%
26   133%
27   130%
28   127%
29   125%
30   123%
Policy
Year 		  Percentage of
Cash Value
31   121%
32   119%
33   118%
34   116%
35   115%
36   113%
37   112%
38   111%
39   110%
40   108%
41   107%
42   106%
43   104%
44   103%
45   102%
8

Report of Independent Registered Public Accounting Firm

The Board of Directors of Nationwide Life Insurance Company and Subsidiaries and

Contract Owners of Nationwide VLI Separate Account-4:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide VLI Separate Account-4 (comprised of the sub-accounts listed in note 1(b), (collectively, “the Accounts”)) as of December 31, 2015, and the related statements of operations for the period then ended, the statements of changes in contract owners’ equity for each of the periods in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Accounts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the transfer agents of the underlying mutual funds or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Accounts as of December 31, 2015, the results of their operations for the period then ended, the changes in contract owners’ equity for each of the periods in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

/s/ KPMG LLP

Columbus, Ohio

March 16, 2016

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2015

 

Assets:

   

Investments at fair value:

   

VPS Dynamic Asset Allocation Portfolio - Class A (ALVDAA)

   

5,725 shares (cost $67,175)

    $ 64,803   

VP Inflation Protection Fund - Class I (ACVIP1)

   

550,382 shares (cost $5,860,816)

      5,481,801   

Asset Allocation Fund - Class 2 (AMVAA2)

   

252,671 shares (cost $5,406,719)

      5,167,129   

Bond Fund - Class 2 (AMVBD2)

   

6,660,160 shares (cost $73,811,116)

      70,464,496   

Global Small Capitalization Fund - Class 2 (AMVGS2)

   

64,610 shares (cost $1,675,030)

      1,544,178   

Growth Fund - Class 2 (AMVGR2)

   

257,677 shares (cost $18,132,395)

      17,442,145   

International Fund - Class 2 (AMVI2)

   

290,963 shares (cost $5,871,512)

      5,243,157   

Variable Series Funds, Inc. - BlackRock High Yield V.I. Fund- Class I (BRVHYI)

   

548,004 shares (cost $3,903,467)

      3,709,987   

Large Cap Core V.I. Fund - Class II (MLVLC2)

   

61,344 shares (cost $2,037,988)

      1,927,428   

Global Allocation V.I. Fund - Class II (MLVGA2)

   

644,022 shares (cost $10,526,625)

      9,686,096   

VP S&P 500 Index Portfolio (CVSPIP)

   

4,939 shares (cost $566,431)

      553,508   

Value Portfolio (DAVVL)

   

260,220 shares (cost $3,123,847)

      2,503,316   

VIP Emerging Markets Series: Service Class (DWVEMS)

   

126,433 shares (cost $2,368,938)

      2,049,472   

VIP Small Cap Value Series: Service Class (DWVSVS)

   

388,947 shares (cost $15,086,334)

      13,060,830   

VA International Small Portfolio (DFVIS)

   

92,292 shares (cost $1,103,025)

      1,021,667   

VA U.S. Targeted Value Portfolio (DFVUTV)

   

124,341 shares (cost $2,286,015)

      1,969,564   

Stock Index Fund, Inc. - Initial Shares (DSIF)

   

9,978,599 shares (cost $338,996,459)

      433,270,756   

Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

   

289,542 shares (cost $8,942,809)

      11,164,756   

Floating-Rate Income Fund (ETVFR)

   

7,210,435 shares (cost $67,603,230)

      63,451,828   

VIP Trust - Templeton Global Bond VIP Fund: Class 1 (FTVGB1)

   

820,035 shares (cost $14,947,294)

      13,399,375   

Goldman Sachs Global Markets Navigator Fund - Service Shares (GVGMNS)

   

2,425 shares (cost $29,209)

      26,385   

Van Kampen V.I. Mid Cap Growth Fund - Series I Shares (IVKMG1)

   

942,033 shares (cost $4,749,473)

      5,068,138   

Balanced-Risk Allocation Fund: Series I Shares (IVBRA1)

   

60,835 shares (cost $737,634)

      620,515   

Mid Cap Value Portfolio: Class 1 (JPMMV1)

   

1,576,091 shares (cost $16,477,980)

      16,060,368   

Small Cap Core Portfolio 1 (JPSCE1)

   

2,110 shares (cost $43,484)

      43,375   

Balanced Portfolio: Service Shares (JABS)

   

808,935 shares (cost $25,144,190)

      25,570,423   

Flexible Bond Portfolio: Service Shares (JAFBS)

   

980,871 shares (cost $12,773,001)

      12,417,821   

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2015

 

Forty Portfolio: Service Shares (JACAS)

   

1,285,536 shares (cost $47,654,659)

    $ 45,096,600   

Global Technology Portfolio: Service Shares (JAGTS)

   

1,807,474 shares (cost $13,051,928)

      14,007,922   

Overseas Portfolio: Service Shares (JAIGS)

   

774,479 shares (cost $28,147,645)

      21,561,494   

Perkins Mid Cap Value Portfolio: Service Shares (JAMVS)

   

125,523 shares (cost $2,243,271)

      1,988,288   

Retirement Emerging Markets Equity Portfolio - Service Shares (LZREMS)

   

1,670,890 shares (cost $33,983,764)

      26,232,966   

Series Fund - Bond Debenture Portfolio - Class VC (LOVBD)

   

27,489 shares (cost $329,410)

      306,232   

Series Fund - Mid Cap Stock Fund: Class VC (LOVMCV)

   

4,305 shares (cost $113,187)

      100,213   

Series Fund, Inc. - Total Return Portfolio - Class VC (LOVTRC)

   

420,366 shares (cost $7,046,992)

      6,830,944   

VIT II - MFS Blended Research Core Equity Portfolio - Service Class (MVBRES)

   

17,014 shares (cost $853,769)

      821,116   

Var Insurance Trust II - MFS Investors Growth Stock Portfolio: Initial Class (MV2IGI)

   

179,250 shares (cost $3,159,295)

      2,936,115   

Var Insurance Trust II - MFS Research International Portfolio: Service Class (MV2RIS)

   

207,406 shares (cost $3,166,536)

      2,837,313   

Variable Insurance Trust - MFS New Discovery Series - Intital Class (MNDIC)

   

26,265 shares (cost $475,336)

      406,845   

New Discovery Series - Service Class (MNDSC)

   

24,662 shares (cost $390,251)

      356,364   

Value Series - Initial Class (MVFIC)

   

537,804 shares (cost $8,573,206)

      9,890,213   

Value Series - Service Class (MVFSC)

   

1,997,481 shares (cost $35,754,887)

      36,194,351   

Variable Insurance Trust II - MFS International Value Portfolio - Service Class (MVIVSC)

   

3,388,709 shares (cost $66,630,346)

      74,992,121   

Core Plus Fixed Income Portfolio - Class I (MSVFI)

   

156,846 shares (cost $1,632,023)

      1,607,676   

Emerging Markets Debt Portfolio - Class I (MSEM)

   

4,458,923 shares (cost $37,537,072)

      33,218,976   

Global Real Estate Portfolio - Class II (VKVGR2)

   

517,732 shares (cost $5,195,195)

      5,270,507   

Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio- Class I (MSVMG)

   

919,240 shares (cost $11,249,862)

      9,219,979   

Universal Institutional Funds, Inc. - Growth Portfolio - Class I (MSVEG)

   

46,445 shares (cost $1,333,825)

      1,390,113   

U.S. Real Estate Portfolio - Class I (MSVRE)

   

1,002,416 shares (cost $17,288,212)

      20,329,004   

NVIT Investor Destinations Managed Growth and Income Class I (IDPGI)

   

0.41 shares (cost $4)

      4   

NVIT Investor Destinations Managed Growth Class I (IDPG)

   

4,282 shares (cost $46,517)

      42,949   

NVIT Cardinal Managed Growth Class I (NCPG)

   

4,534 shares (cost $48,098)

      44,338   

NVIT Bond Index Fund Class I (NVBX)

   

9,198,833 shares (cost $99,087,948)

      95,391,901   

NVIT International Index Fund Class I (NVIX)

   

2,323,309 shares (cost $21,686,110)

      20,212,789   

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)

   

2,357,884 shares (cost $35,700,584)

      36,334,987   

American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)

   

365,777 shares (cost $7,526,582)

      8,632,340   

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2015

 

American Funds NVIT Bond Fund - Class II (GVABD2)

   

132,261 shares (cost $1,509,650)

    $ 1,499,839   

American Funds NVIT Global Growth Fund - Class II (GVAGG2)

   

267,913 shares (cost $7,134,479)

      7,898,069   

American Funds NVIT Growth Fund - Class II (GVAGR2)

   

110,550 shares (cost $6,708,691)

      9,541,601   

American Funds NVIT Growth-Income Fund - Class II (GVAGI2)

   

54,557 shares (cost $2,292,946)

      2,990,275   

Federated NVIT High Income Bond Fund - Class I (HIBF)

   

3,330,349 shares (cost $22,805,386)

      20,148,610   

NVIT Emerging Markets Fund - Class I (GEM)

   

1,237,569 shares (cost $14,021,367)

      11,336,129   

NVIT International Equity Fund - Class I (GIG)

   

1,891,868 shares (cost $20,081,902)

      18,048,422   

Variable Insurance Trust: NVIT International Equity Fund - Class VI (NVIE6)

   

20,690 shares (cost $173,427)

      195,936   

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)

   

1,655,949 shares (cost $14,544,036)

      14,986,343   

Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)

   

20,721 shares (cost $310,739)

      277,454   

NVIT Cardinal Aggressive Fund - Class I (NVCRA1)

   

376,367 shares (cost $4,068,499)

      3,598,072   

NVIT Cardinal Balanced Fund - Class I (NVCRB1)

   

15,526,393 shares (cost $161,467,280)

      170,635,054   

NVIT Cardinal Capital Appreciation Fund - Class I (NVCCA1)

   

545,916 shares (cost $6,478,985)

      5,863,139   

NVIT Cardinal Conservative Fund - Class I (NVCCN1)

   

412,063 shares (cost $4,462,255)

      4,132,993   

NVIT Cardinal Moderate Fund - Class I (NVCMD1)

   

631,040 shares (cost $7,188,245)

      6,859,407   

NVIT Cardinal Moderately Aggressive Fund - Class I (NVCMA1)

   

687,793 shares (cost $7,302,401)

      6,554,665   

NVIT Cardinal Moderately Conservative Fund - Class I (NVCMC1)

   

463,218 shares (cost $5,348,588)

      4,919,378   

NVIT Core Bond Fund - Class I (NVCBD1)

   

93,431 shares (cost $1,035,040)

      977,284   

NVIT Core Plus Bond Fund - Class I (NVLCP1)

   

216,982 shares (cost $2,482,705)

      2,410,666   

NVIT Nationwide Fund - Class I (TRF)

   

8,431,911 shares (cost $84,463,044)

      122,852,942   

NVIT Government Bond Fund - Class I (GBF)

   

5,075,471 shares (cost $57,955,703)

      55,119,618   

American Century NVIT Growth Fund - Class I (CAF)

   

820,679 shares (cost $11,854,252)

      16,659,780   

NVIT International Index Fund - Class II (GVIX2)

   

382,007 shares (cost $3,709,487)

      3,319,644   

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

   

1,737,617 shares (cost $17,919,316)

      21,911,351   

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

   

102,060 shares (cost $1,527,668)

      1,514,568   

NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)

   

43,166 shares (cost $763,147)

      724,331   

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

   

1,034,596 shares (cost $10,859,780)

      10,263,196   

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

   

5,100,477 shares (cost $53,275,540)

      63,959,985   

NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

   

6,214,671 shares (cost $66,655,559)

      82,592,973   

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2015

 

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

   

1,405,796 shares (cost $15,130,400)

    $ 15,576,216   

NVIT Mid Cap Index Fund - Class I (MCIF)

   

3,855,798 shares (cost $81,047,376)

      86,562,670   

NVIT Money Market Fund - Class I (SAM)

   

47,368,507 shares (cost $47,368,507)

      47,368,507   

NVIT Money Market Fund - Class V (SAM5)

   

169,296,672 shares (cost $169,296,672)

      169,296,672   

NVIT Multi-Manager International Growth Fund - Class I (NVMIG1)

   

1,508,586 shares (cost $17,888,643)

      15,478,091   

NVIT Multi-Manager International Value Fund - Class I (GVDIVI)

   

493,343 shares (cost $5,494,259)

      4,657,155   

NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

   

918,401 shares (cost $9,857,281)

      11,590,223   

NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

   

1,650,812 shares (cost $16,971,664)

      16,442,084   

NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

   

4,086,741 shares (cost $41,673,823)

      43,932,467   

NVIT Multi-Manager Mid Cap Value Fund - Class I (NVMMV1)

   

105,990 shares (cost $1,187,825)

      1,063,082   

NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)

   

1,253,865 shares (cost $13,381,496)

      12,613,877   

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)

   

927,850 shares (cost $16,851,899)

      17,035,328   

NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)

   

2,923,898 shares (cost $33,616,179)

      38,536,976   

NVIT Multi-Manager Small Company Fund - Class I (SCF)

   

1,998,875 shares (cost $38,909,690)

      41,156,833   

NVIT Multi-Sector Bond Fund - Class I (MSBF)

   

1,236,459 shares (cost $11,284,173)

      10,732,465   

NVIT Short Term Bond Fund - Class I (NVSTB1)

   

1,467,728 shares (cost $15,391,758)

      14,970,829   

NVIT Short Term Bond Fund - Class II (NVSTB2)

   

153,543 shares (cost $1,614,219)

      1,560,000   

NVIT Large Cap Growth Fund - Class I (NVOLG1)

   

6,361,940 shares (cost $106,429,238)

      127,175,172   

Templeton NVIT International Value Fund - Class III (NVTIV3)

   

64,503 shares (cost $829,039)

      701,790   

Invesco NVIT Comstock Value Fund - Class I (EIF)

   

692,264 shares (cost $7,809,379)

      10,598,560   

NVIT Real Estate Fund - Class I (NVRE1)

   

4,956,812 shares (cost $40,441,897)

      32,169,707   

Loring Ward NVIT Capital Appreciation Fund - Class P (NVLCAP)

   

2,731 shares (cost $32,049)

      28,295   

Loring Ward NVIT Moderate Fund - Class P (NVLMP)

   

552 shares (cost $6,215)

      5,987   

NVIT Small Cap Index Fund Class II (NVSIX2)

   

24,299 shares (cost $325,481)

      290,369   

NVIT S&P 500 Index Fund Class I (GVEX1)

   

232,711 shares (cost $3,330,003)

      3,253,296   

TOPS Managed Risk Balanced ETF Portfolio - Class 3 (NOTB3)

   

3,206 shares (cost $38,171)

      34,467   

TOPS Managed Risk Moderate Growth ETF Portfolio - Class 3 (NOTMG3)

   

1,079 shares (cost $11,909)

      11,629   

VPS Growth and Income Portfolio - Class A (ALVGIA)

   

749,538 shares (cost $20,995,149)

      22,576,082   

VPS International Value Portfolio - Class A (ALVIVA)

   

618,318 shares (cost $8,555,991)

      8,359,655   

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2015

 

VPS Small/Mid Cap Value Portfolio - Class A (ALVSVA)

   

1,053,570 shares (cost $21,637,349)

    $ 18,216,226   

VP Capital Appreciation Fund - Class I (ACVCA)

   

38,532 shares (cost $606,456)

      578,757   

VP Income & Growth Fund - Class I (ACVIG)

   

2,123,515 shares (cost $14,852,762)

      18,198,524   

VP Inflation Protection Fund - Class II (ACVIP2)

   

958,446 shares (cost $10,714,750)

      9,526,953   

VP International Fund - Class I (ACVI)

   

146,255 shares (cost $1,571,200)

      1,465,480   

VP Mid Cap Value Fund - Class I (ACVMV1)

   

728,109 shares (cost $13,029,408)

      13,389,921   

VP Ultra(R) Fund - Class I (ACVU1)

   

48,549 shares (cost $762,066)

      751,055   

VP Value Fund - Class I (ACVV)

   

2,411,358 shares (cost $22,018,181)

      21,340,520   

MidCap Stock Portfolio - Initial Shares (DVMCS)

   

132,919 shares (cost $2,783,382)

      2,518,820   

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

   

5,048,644 shares (cost $81,294,883)

      84,362,844   

Appreciation Portfolio - Initial Shares (DCAP)

   

448,626 shares (cost $19,374,843)

      20,291,372   

Opportunistic Small Cap Portfolio: Initial Shares (DSC)

   

20,675 shares (cost $837,205)

      951,475   

International Value Portfolio - Initial Shares (DVIV)

   

393,799 shares (cost $4,357,396)

      3,953,744   

Variable Series II - DWS Small Mid Cap Value VIP - Class B (SVSSVB)

   

13,083 shares (cost $208,306)

      208,675   

Variable Series II - DWS Large Cap Value VIP - Class B (SVSLVB)

   

9,265 shares (cost $128,800)

      141,847   

Managed Tail Risk Fund II: Primary Shares (FVCA2P)

   

136,127 shares (cost $804,412)

      695,608   

Quality Bond Fund II - Primary Shares (FQB)

   

2,305,446 shares (cost $26,130,162)

      25,290,743   

VIP Contrafund(R) Portfolio - Service Class (FCS)

   

1,002,659 shares (cost $32,714,587)

      33,879,862   

VIP Energy Portfolio - Service Class 2 (FNRS2)

   

394,417 shares (cost $8,124,621)

      6,117,406   

VIP Equity-Income Portfolio - Service Class (FEIS)

   

2,763,783 shares (cost $55,308,171)

      56,298,250   

VIP Freedom Fund 2010 Portfolio - Service Class (FF10S)

   

182,972 shares (cost $2,116,190)

      2,221,277   

VIP Freedom Fund 2020 Portfolio - Service Class (FF20S)

   

2,206,656 shares (cost $26,965,277)

      27,384,606   

VIP Freedom Fund 2030 Portfolio - Service Class (FF30S)

   

1,003,729 shares (cost $12,438,636)

      12,707,208   

VIP Freedom Income Fund Portfolio - Service Class (FFINS)

   

114,112 shares (cost $1,239,248)

      1,230,129   

VIP Growth Opportunities Portfolio - Service Class (FGOS)

   

9,828 shares (cost $337,762)

      311,545   

VIP Growth Portfolio - Service Class (FGS)

   

1,363,419 shares (cost $55,632,239)

      89,399,406   

VIP High Income Portfolio - Service Class (FHIS)

   

2,589,953 shares (cost $14,748,399)

      12,742,570   

VIP Index 500 Portfolio - Initial Class (FIP)

   

226,885 shares (cost $39,411,953)

      46,835,808   

VIP Investment Grade Bond Portfolio - Service Class (FIGBS)

   

13,927,367 shares (cost $178,353,073)

      170,470,972   

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2015

 

VIP Mid Cap Portfolio - Service Class (FMCS)

   

1,281,801 shares (cost $43,045,887)

    $ 41,543,163   

VIP Overseas Portfolio - Service Class (FOS)

   

954,236 shares (cost $18,687,468)

      18,130,492   

VIP Value Strategies Portfolio - Service Class (FVSS)

   

238,110 shares (cost $2,973,676)

      3,457,355   

VIP Fidelity VIP Freedom Fund 2005 Portfolio - Service Class (FF05S)

   

15,072 shares (cost $177,213)

      171,219   

VIP Fidelity VIP Freedom Fund 2015 Portfolio - Service Class (FF15S)

   

882,327 shares (cost $11,157,374)

      10,782,035   

VIP Fidelity VIP Freedom Fund 2025 Portfolio - Service Class (FF25S)

   

1,075,303 shares (cost $13,990,124)

      13,753,125   

VIP Fidelity VIP Freedom Fund 2040 Portfolio - Service Class (FF40S)

   

369,654 shares (cost $6,842,580)

      6,716,612   

Franklin Income Securities Fund - Class 2 (FTVIS2)

   

425,359 shares (cost $6,743,182)

      6,040,093   

Rising Dividends Securities Fund - Class 1 (FTVRDI)

   

623,698 shares (cost $15,052,793)

      15,754,601   

Small Cap Value Securities Fund - Class 1 (FTVSVI)

   

477,829 shares (cost $8,039,034)

      8,658,268   

Small Cap Value Securities Fund - Class 2 (FTVSV2)

   

500,962 shares (cost $10,757,955)

      8,857,014   

Mutual Global Discovery Securities Fund - Class 2 (FTVMD2)

   

107,256 shares (cost $2,437,524)

      2,077,547   

Templeton Developing Markets Securities Fund - Class 2 (FTVDM2)

   

342,073 shares (cost $3,185,295)

      2,161,900   

Templeton Foreign Securities Fund - Class 1 (TIF)

   

75,482 shares (cost $1,129,580)

      1,015,992   

Templeton Foreign Securities Fund - Class 2 (TIF2)

   

1,865,048 shares (cost $29,619,970)

      24,618,636   

Templeton Global Bond Securities Fund - Class 2 (FTVGI2)

   

695,418 shares (cost $12,813,470)

      10,987,600   

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

   

98,476 shares (cost $715,811)

      664,712   

Mid Cap Value- Institutional Shares (GVMCE)

   

2,682,466 shares (cost $45,920,558)

      38,868,932   

Goldman Sachs Structured Small Cap Equity Fund (GVCSE)

   

5,116 shares (cost $68,691)

      59,347   

VIT Growth Opportunities Fund - Service Shares (GVGOPS)

   

212,974 shares (cost $1,652,697)

      1,422,670   

ClearBridge Variable Small Cap Growth Portfolio - Class I (SBVSG)

   

535,701 shares (cost $11,954,688)

      11,222,936   

Baron Growth Opportunities Fund Service Class (BNCAI)

   

185,780 shares (cost $8,074,642)

      7,628,483   

Short Duration Bond Portfolio - I Class Shares (AMTB)

   

353,914 shares (cost $3,850,251)

      3,723,179   

Guardian Portfolio - I Class Shares (AMGP)

   

33,477 shares (cost $668,205)

      559,064   

Mid-Cap Growth Portfolio - I Class Shares (AMCG)

   

95,044 shares (cost $2,327,227)

      2,160,354   

Mid-Cap Growth Portfolio - S Class Shares (AMMCGS)

   

48,927 shares (cost $1,090,204)

      1,044,596   

Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

   

17,648 shares (cost $272,361)

      232,772   

Advisers Management Trust: Mid Cap Intrinsic Value Portfolio - Class I (AMRI)

   

311,376 shares (cost $4,386,055)

      4,935,312   

Socially Responsive Portfolio - I Class Shares (AMSRS)

   

92,696 shares (cost $1,523,608)

      1,989,265   

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2015

 

Capital Appreciation Fund/VA - Non-Service Shares (OVGR)

   

219,730 shares (cost $11,193,907)

    $ 12,192,812   

Global Securities Fund/VA - Non-Service Shares (OVGS)

   

1,962,914 shares (cost $71,092,991)

      74,590,713   

International Growth Fund/VA - Non-Service Shares (OVIG)

   

2,850,735 shares (cost $6,849,558)

      6,271,616   

Main Street Fund(R)/VA - Non-Service Shares (OVGI)

   

1,059,437 shares (cost $24,462,775)

      30,977,927   

Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)

   

309,779 shares (cost $7,406,872)

      6,604,496   

Discovery Mid Cap Growth Fund/VA - Non-Service Shares (OVAG)

   

329,965 shares (cost $16,299,372)

      25,357,817   

Global Strategic Income Fund/VA: Non-service Shares (OVSB)

   

3,867,326 shares (cost $20,730,677)

      18,872,549   

All Asset Portfolio - Administrative Class (PMVAAA)

   

2,287,575 shares (cost $24,798,384)

      20,816,929   

CommodityRealReturn(R) Strategy Portfolio - Administrative Class (PMVRSA)

   

7,185 shares (cost $63,599)

      49,652   

Foreign Bond Portfolio (Unhedged) - Administrative Class (PMVFBA)

   

201,291 shares (cost $2,076,667)

      1,934,402   

Long-Term U.S. Government Portfolio - Administrative Class (PMVLGA)

   

234,196 shares (cost $2,647,203)

      2,726,037   

Low Duration Portfolio - Administrative Class (PMVLDA)

   

4,913,849 shares (cost $51,988,800)

      50,366,948   

Real Return Portfolio - Administrative Class (PMVRRA)

   

5,770,888 shares (cost $78,085,581)

      68,846,700   

Total Return Portfolio - Administrative Class (PMVTRA)

   

8,126,762 shares (cost $90,561,238)

      85,981,146   

Pioneer Emerging Markets VCT Portfolio - Class I Shares (PIVEMI)

   

43,296 shares (cost $860,914)

      660,268   

Pioneer High Yield VCT Portfolio - Class I Shares (PIHYB1)

   

460,975 shares (cost $4,652,100)

      3,941,333   

VT Growth & Income Fund: Class IB (PVGIB)

   

39,578 shares (cost $872,466)

      939,193   

VT International Equity Fund: Class IB (PVTIGB)

   

74,367 shares (cost $911,638)

      971,977   

VT Small Cap Value Fund: Class IB (PVTSCB)

   

59,494 shares (cost $939,427)

      832,320   

VT Voyager Fund: Class IB (PVTVB)

   

30,845 shares (cost $1,354,465)

      1,348,565   

VI Growth and Income Fund - Series I Shares (ACGI)

   

241,338 shares (cost $5,576,925)

      4,730,233   

VI American Franchise Fund - Series I Shares (ACEG)

   

23,082 shares (cost $1,045,934)

      1,322,622   

VI Value Opportunities Fund - Series I Shares (AVBVI)

   

1,218 shares (cost $9,430)

      9,522   

VI High Yield Fund - Series I Shares (AVHY1)

   

2,727,399 shares (cost $15,300,167)

      13,800,638   

VI International Growth Fund - Series I Shares (AVIE)

   

1,405,843 shares (cost $46,320,669)

      47,081,675   

VI Mid Cap Core Equity Fund: Series I Shares (AVMCCI)

   

33,229 shares (cost $460,288)

      402,730   

VI Small Cap Equity Fund - Series I Shares (AVSCE)

   

11,360 shares (cost $243,431)

      200,391   

Micro-Cap Portfolio - Investment Class (ROCMC)

   

740,626 shares (cost $8,551,493)

      6,917,443   

Variable Fund - Multi-Hedge Strategies (RVARS)

   

14,206 shares (cost $330,755)

      342,230   

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2015

 

Equity Income Portfolio - II (TREI2)

   

1,924,127 shares (cost $49,697,929)

    $ 51,431,910   

Health Sciences Portfolio - II (TRHS2)

   

912,237 shares (cost $29,875,408)

      34,363,974   

Limited-Term Bond Portfolio (TRLT1)

   

4,962,195 shares (cost $24,205,708)

      24,017,023   

Mid-Cap Growth Portfolio - II (TRMCG2)

   

838,576 shares (cost $23,382,904)

      20,838,607   

New America Growth Portfolio (TRNAG1)

   

1,713,311 shares (cost $44,759,587)

      41,821,931   

Personal Strategy Balanced Portfolio (TRPSB1)

   

197,786 shares (cost $4,073,876)

      3,704,539   

Blue Chip Growth Portfolio (TRBCGP)

   

1,819,911 shares (cost $38,115,160)

      41,876,144   

VIP Trust Emerging Markets Fund - Initial Class (VWEM)

   

770,554 shares (cost $9,849,241)

      8,090,820   

VIP Trust Global Hard Assets Fund - Initial Class (VWHA)

   

1,344,084 shares (cost $36,368,404)

      22,688,139   

Variable Insurance Fund - Balanced Portfolio (VVB)

   

352,389 shares (cost $7,793,458)

      7,865,321   

Insurance Fund - Capital Growth Portfolio (VVCG)

   

378,829 shares (cost $9,986,114)

      10,091,992   

Variable Insurance Fund - Diversified Value Portfolio (VVDV)

   

845,950 shares (cost $12,466,485)

      14,000,469   

Variable Insurance Fund - International Portfolio (VVI)

   

471,241 shares (cost $9,738,001)

      9,330,568   

Variable Insurance Fund - Mid-Cap Index Portfolio (VVMCI)

   

1,300,253 shares (cost $25,668,588)

      26,993,254   

Variable Insurance Fund - REIT Index Portfolio (VVREI)

   

616,929 shares (cost $7,722,609)

      8,495,110   

Variable Insurance Fund - Short-Term Investment-Grade Portfolio (VVSTC)

   

522,576 shares (cost $5,544,874)

      5,513,180   

Variable Insurance Fund - Small Company Growth Portfolio (VVSCG)

   

193,413 shares (cost $4,540,132)

      4,021,049   

Variable Insurance Fund - Total Bond Market Index Portfolio (VVHGB)

   

1,741,727 shares (cost $20,852,204)

      20,534,964   

Variable Insurance Portfolios - Asset Strategy (WRASP)

   

1,729,239 shares (cost $18,166,977)

      14,359,256   

Variable Insurance Portfolios - Growth (WRGP)

   

1,673,899 shares (cost $19,487,873)

      19,112,081   

Variable Insurance Portfolios - High Income (WRHIP)

   

10,801,502 shares (cost $42,970,729)

      36,199,073   

Variable Insurance Portfolios - Mid Cap Growth (WRMCG)

   

702,222 shares (cost $7,393,338)

      6,616,263   

Variable Insurance Portfolios - Real Estate Securities (WRRESP)

   

774,803 shares (cost $6,943,299)

      6,956,800   

Variable Insurance Portfolios - Science and Technology (WRSTP)

   

656,230 shares (cost $16,404,539)

      15,064,152   

Advantage VT Discovery Fund (SVDF)

   

625,784 shares (cost $17,894,862)

      16,264,121   

Advantage VT Opportunity Fund - Class 2 (SVOF)

   

219,038 shares (cost $6,162,746)

      5,486,893   

Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)

   

724,417 shares (cost $7,154,659)

      6,201,007   
  

 

 

  

Total Investments

    $ 4,526,556,586   

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2015

 

Other Accounts Receivable

    $ 835,486   

Accounts Receivable - NVIT Investor Destinations Managed Growth and Income Class I (IDPGI)

      4   

Accounts Receivable - TOPS Managed Risk Moderate Growth ETF Portfolio - Class 3 (NOTMG3)

      3   

Accounts Receivable - Loring Ward NVIT Moderate Fund - Class P (NVLMP)

      3   

Accounts Receivable - NVIT Money Market Fund - Class I (SAM)

      161,412   

Accounts Payable - VP International Fund - Class I (ACVI)

      (10,852 ) 

Accounts Payable - Mid-Cap Growth Portfolio - I Class Shares (AMCG)

      (1,035 ) 

Accounts Payable - VI Value Opportunities Fund - Series I Shares (AVBVI)

      (5 ) 

Accounts Payable - Variable Series Funds, Inc. - BlackRock High Yield V.I. Fund - Class I (BRVHYI)

      (14,998 ) 

Accounts Payable - Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

      (11,654 ) 

Accounts Payable - VIP Contrafund(R) Portfolio - Service Class (FCS)

      (176,177 ) 

Accounts Payable - VIP Growth Opportunities Portfolio - Service Class (FGOS)

      (125,753 ) 

Accounts Payable - VIP Growth Portfolio - Service Class (FGS)

      (121,308 ) 

Accounts Payable - Discovery Mid Cap Growth Fund/VA - Non-Service Shares (OVAG)

      (82,314 ) 

Accounts Payable - Capital Appreciation Fund/VA - Non-Service Shares (OVGR)

      (27,726 ) 
  

 

 

  
   $ 4,526,981,672   
  

 

 

  

Contract Owners’ Equity:

   

Accumulation units

      4,526,981,672   
  

 

 

  

Total Contract Owners’ Equity (note 8)

    $ 4,526,981,672   
  

 

 

  

See accompanying notes to financial statements.

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   Total     ALVDAA     ACVIP1     AMVAA2     AMVBD2     AMVGS2     AMVGR2     AMVI2  

Reinvested dividends

   $ 79,473,966      $ 552      $ 135,796      $ 81,459      $ 1,204,360      $ -          $ 104,911      $ 78,902   

Asset charges (note 3)

     (5,908,080 )      -            (12,046 )      (8,853 )      (71,123 )      (4,302 )      (46,196 )      (11,719 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     73,565,886        552        123,750        72,606        1,133,237        (4,302 )      58,715        67,183   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     157,541,808        634        (40,592 )      77,689        (10,918 )      284,933        4,209,138        176,738   

Change in unrealized gain (loss) on investments

     (475,204,916 )      (3,333 )      (365,402 )      (432,377 )      (2,381,044 )      (312,589 )      (6,136,457 )      (773,619 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (317,663,108 )      (2,699 )      (405,994 )      (354,688 )      (2,391,962 )      (27,656 )      (1,927,319 )      (596,881 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     206,683,439        1,108        -            333,728        1,386,907        125,351        3,364,440        276,716   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (37,413,783 )    $ (1,039 )    $ (282,244 )    $ 51,646      $ 128,182      $ 93,393      $ 1,495,836      $ (252,982 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   BRVHYI     MLVLC2     MLVGA2     CVSPIP     DAVVL     DWVEMS     DWVSVS     DFVIS  

Reinvested dividends

   $ 52,766      $ 16,665      $ 102,280      $ 1,036      $ 20,459      $ 7,639      $ 72,503      $ 21,528   

Asset charges (note 3)

     (2,123 )      (5,417 )      -            (2,016 )      (2,717 )      (3,417 )      (33,427 )      (1,418 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     50,643        11,248        102,280        (980 )      17,742        4,222        39,076        20,110   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     (26,364 )      335,732        (62,239 )      (25,844 )      34,305        (26,217 )      3,457        (11,293 ) 

Change in unrealized gain (loss) on investments

     (182,132 )      (429,169 )      (657,456 )      10,700        (394,395 )      (221,696 )      (2,588,514 )      (81,358 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (208,496 )      (93,437 )      (719,695 )      (15,144 )      (360,090 )      (247,913 )      (2,585,057 )      (92,651 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     25,185        104,072        530,085        9,344        394,807        26,736        1,626,973        33,302   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (132,668 )    $ 21,883      $ (87,330 )    $ (6,780 )    $ 52,459      $ (216,955 )    $ (919,008 )    $ (39,239 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   DFVUTV     DSIF     DSRG     ETVFR     FTVGB1     GVGMNS     IVKMG1     IVBRA1  

Reinvested dividends

   $ 27,378      $ 7,829,307      $ 132,971      $ 2,244,119      $ 903,603      $ 23      $ -          $ 26,252   

Asset charges (note 3)

     (2,808 )      (634,759 )      (1,599 )      (90,832 )      (24,375 )      -            (3,982 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     24,570        7,194,548        131,372        2,153,287        879,228        23        (3,982 )      26,252   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     (16,221 )      29,566,708        777,547        (253,501 )      (289,149 )      924        493,195        (5,320 ) 

Change in unrealized gain (loss) on investments

     (316,451 )      (44,641,970 )      (2,951,356 )      (2,614,256 )      (1,180,828 )      (3,049 )      (808,966 )      (105,893 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (332,672 )      (15,075,262 )      (2,173,809 )      (2,867,757 )      (1,469,977 )      (2,125 )      (315,771 )      (111,213 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     142,051        11,749,112        1,668,105        -            56,886        577        381,271        54,647   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (166,051 )    $ 3,868,398      $ (374,332 )    $ (714,470 )    $ (533,863 )    $ (1,525 )    $ 61,518      $ (30,314 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   JPMMV1     JPSCE1     JABS     JAFBS     JACAS     JAGTS     JAIGS     JAMVS  

Reinvested dividends

   $ 116,554      $ -          $ 440,519      $ 205,365      $ 578,109      $ 124,760      $ 129,543      $ 21,499   

Asset charges (note 3)

     (24,796 )      (27 )      (47,522 )      (22,077 )      (33,329 )      (5,473 )      (14,224 )      (4,137 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     91,758        (27 )      392,997        183,288        544,780        119,287        115,319        17,362   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     444,429        33        669,691        2,566        587,908        1,721,783        (2,781,891 )      (35,634 ) 

Change in unrealized gain (loss) on investments

     (1,827,990 )      (109 )      (1,831,608 )      (311,186 )      (5,087,638 )      (3,154,269 )      (240,479 )      (265,831 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (1,383,561 )      (76 )      (1,161,917 )      (308,620 )      (4,499,730 )      (1,432,486 )      (3,022,370 )      (301,465 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     890,570        -            806,630        38,354        9,050,213        2,055,008        798,169        205,362   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (401,233 )    $ (103 )    $ 37,710      $ (86,978 )    $ 5,095,263      $ 741,809      $ (2,108,882 )    $ (78,741 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   LZREMS     LOVBD     LOVMCV     LOVTRC     MVBRES     MV2IGI     MV2RIS     MNDIC  

Reinvested dividends

   $ 342,159      $ 12,866      $ 633      $ 178,080      $ 6,897      $ 16,130      $ 54,921      $ -       

Asset charges (note 3)

     (57,219 )      (302 )      (1,213 )      (3,802 )      (663 )      -            (5,560 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     284,940        12,564        (580 )      174,278        6,234        16,130        49,361        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     (526,065 )      970        264,419        (494 )      (25,354 )      (28,691 )      (7,975 )      (29,785 ) 

Change in unrealized gain (loss) on investments

     (5,757,125 )      (23,178 )      (249,505 )      (216,048 )      (32,654 )      (223,180 )      (329,223 )      13,815   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (6,283,190 )      (22,208 )      14,914        (216,542 )      (58,008 )      (251,871 )      (337,198 )      (15,970 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     71,651        438        6,367        648        40,193        189,434        25,635        13,818   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (5,926,599 )    $ (9,206 )    $ 20,701      $ (41,616 )    $ (11,581 )    $ (46,307 )    $ (262,202 )    $ (2,152 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   MNDSC     MVFIC     MVFSC     MVIVSC     MSVFI     MSEM     VKVGR2     MSVMG  

Reinvested dividends

   $ -          $ 227,749      $ 615,038      $ 1,316,518      $ 58,377      $ 1,891,814      $ 113,863      $ -       

Asset charges (note 3)

     (1,229 )      -            (61,177 )      (151,186 )      -            (36,344 )      (11,363 )      (25,778 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     (1,229 )      227,749        553,861        1,165,332        58,377        1,855,470        102,500        (25,778 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     (161,597 )      600,394        2,356,957        3,129,919        24,278        (253,777 )      137,343        404,517   

Change in unrealized gain (loss) on investments

     152,204        (1,472,583 )      (4,929,014 )      (1,337,403 )      (94,256 )      (1,929,212 )      (327,136 )      (2,908,765 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (9,393 )      (872,189 )      (2,572,057 )      1,792,516        (69,978 )      (2,182,989 )      (189,793 )      (2,504,248 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     17,138        571,554        1,733,837        753,330        -            -            -            1,892,001   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ 6,516      $ (72,886 )    $ (284,359 )    $ 3,711,178      $ (11,601 )    $ (327,519 )    $ (87,293 )    $ (638,025 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   MSVEG     MSVRE     IDPG     NCPG     NVBX     NVIX     NVAMV1     GVAAA2  

Reinvested dividends

   $ -          $ 272,031      $ 821      $ 580      $ 1,782,388      $ 509,876      $ 920,371      $ 117,552   

Asset charges (note 3)

     (2,889 )      (43,858 )      -            -            (145,791 )      (28,083 )      -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     (2,889 )      228,173        821        580        1,636,597        481,793        920,371        117,552   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     77,818        1,866,918        (41 )      (141 )      (23,044 )      (326,095 )      797,905        359,686   

Change in unrealized gain (loss) on investments

     (109,131 )      (1,665,444 )      (3,568 )      (2,468 )      (3,064,290 )      (335,354 )      (8,168,940 )      (736,288 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (31,313 )      201,474        (3,609 )      (2,609 )      (3,087,334 )      (661,449 )      (7,371,035 )      (376,602 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     175,597        -            -            -            955,281        -            4,779,006        364,806   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ 141,395      $ 429,647      $ (2,788 )    $ (2,029 )    $ (495,456 )    $ (179,656 )    $ (1,671,658 )    $ 105,756   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   GVABD2     GVAGG2     GVAGR2     GVAGI2     HIBF     GEM     GIG     NVIE6  

Reinvested dividends

   $ 20,782      $ 50,419      $ 68,120      $ 26,525      $ 1,129,334      $ 110,602      $ 98,593      $ 575   

Asset charges (note 3)

     -            -            -            -            (18,525 )      (9,118 )      (13,422 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     20,782        50,419        68,120        26,525        1,110,809        101,484        85,171        575   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     11,121        215,150        622,304        242,222        (322,084 )      (20,731 )      335,160        12,875   

Change in unrealized gain (loss) on investments

     (35,615 )      (564,797 )      (338,258 )      (441,408 )      (1,573,157 )      (2,228,621 )      (1,973,168 )      (27,123 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (24,494 )      (349,647 )      284,046        (199,186 )      (1,895,241 )      (2,249,352 )      (1,638,008 )      (14,248 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     638        699,828        250,621        214,130        201,950        -            715,461        8,061   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (3,074 )    $ 400,600      $ 602,787      $ 41,469      $ (582,482 )    $ (2,147,868 )    $ (837,376 )    $ (5,612 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   NVNMO1     NVNSR1     NVCRA1     NVCRB1     NVCCA1     NVCCN1     NVCMD1     NVCMA1  

Reinvested dividends

   $ 121,719      $ 2,461      $ 95,095      $ 4,745,388      $ 177,206      $ 88,846      $ 212,909      $ 227,542   

Asset charges (note 3)

     -            -            (174 )      (167,071 )      (523 )      (625 )      (383 )      (499 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     121,719        2,461        94,921        4,578,317        176,683        88,221        212,526        227,043   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     421,357        7,480        262,450        460,379        418,112        (28,414 )      244,372        157,741   

Change in unrealized gain (loss) on investments

     (2,058,459 )      (60,802 )      (659,139 )      (13,401,114 )      (994,295 )      (178,676 )      (945,306 )      (1,211,324 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (1,637,102 )      (53,322 )      (396,689 )      (12,940,735 )      (576,183 )      (207,090 )      (700,934 )      (1,053,583 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     1,364,862        51,609        265,482        6,327,978        374,005        116,071        418,690        704,360   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (150,521 )    $ 748      $ (36,286 )    $ (2,034,440 )    $ (25,495 )    $ (2,798 )    $ (69,718 )    $ (122,180 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   NVCMC1     NVCBD1     NVLCP1     TRF     GBF     CAF     GVIX2     GVIDA  

Reinvested dividends

   $ 127,097      $ 31,119      $ 45,283      $ 1,543,625      $ 990,882      $ 59,774      $ 72,645      $ 322,941   

Asset charges (note 3)

     (1,194 )      -            -            (86,825 )      (74,415 )      (2,263 )      (3,096 )      (7,908 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     125,903        31,119        45,283        1,456,800        916,467        57,511        69,549        315,033   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     52,192        (20,738 )      11,348        1,961,336        (1,147,822 )      970,194        (14,940 )      1,672,651   

Change in unrealized gain (loss) on investments

     (445,501 )      (34,232 )      (85,502 )      (2,665,260 )      198,899        (2,302,463 )      (84,619 )      (2,196,869 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (393,309 )      (54,970 )      (74,154 )      (703,924 )      (948,923 )      (1,332,269 )      (99,559 )      (524,218 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     187,946        6,921        21,321        -            -            2,060,769        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (79,460 )    $ (16,930 )    $ (7,550 )    $ 752,876      $ (32,456 )    $ 786,011      $ (30,010 )    $ (209,185 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   NVDBL2     NVDCA2     GVIDC     GVIDM     GVDMA     GVDMC     MCIF     SAM  

Reinvested dividends

   $ 26,096      $ 11,651      $ 179,692      $ 1,073,135      $ 1,261,743      $ 267,571      $ 993,914      $ -       

Asset charges (note 3)

     -            -            (7,656 )      (19,423 )      (27,865 )      (3,211 )      (105,677 )      (951 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     26,096        11,651        172,036        1,053,712        1,233,878        264,360        888,237        (951 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     99,252        14,466        45,800        4,105,563        837,951        605,046        4,293,344        -       

Change in unrealized gain (loss) on investments

     (178,091 )      (58,470 )      (519,493 )      (7,970,940 )      (4,178,965 )      (1,663,219 )      (13,288,336 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (78,839 )      (44,004 )      (473,693 )      (3,865,377 )      (3,341,014 )      (1,058,173 )      (8,994,992 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     40,642        26,565        330,282        2,652,853        1,569,710        805,499        5,707,304        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (12,101 )    $ (5,788 )    $ 28,625      $ (158,812 )    $ (537,426 )    $ 11,686      $ (2,399,451 )    $ (951 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   SAM5     NVMIG1     GVDIVI     NVMLG1     NVMLV1     NVMMG1     NVMMV1     NVMMV2  

Reinvested dividends

   $ -          $ 116,752      $ 63,174      $ 55,552      $ 198,419      $ -          $ 14,834      $ 159,266   

Asset charges (note 3)

     (333,343 )      -            -            (1,476 )      (2,799 )      (2,668 )      (1,740 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     (333,343 )      116,752        63,174        54,076        195,620        (2,668 )      13,094        159,266   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     -            (112,543 )      (96,999 )      526,118        380,083        1,304,061        (67,180 )      907,384   

Change in unrealized gain (loss) on investments

     -            (1,031,137 )      (245,562 )      (1,170,396 )      (1,926,947 )      (6,571,225 )      (92,666 )      (2,935,360 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     -            (1,143,680 )      (342,561 )      (644,278 )      (1,546,864 )      (5,267,164 )      (159,846 )      (2,027,976 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     -            962,551        -            981,251        766,122        5,086,876        113,872        1,496,109   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (333,343 )    $ (64,377 )    $ (279,387 )    $ 391,049      $ (585,122 )    $ (182,956 )    $ (32,880 )    $ (372,601 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   SCGF     SCVF     SCF     MSBF     NVSTB1     NVSTB2     NVOLG1     NVTIV3  

Reinvested dividends

   $ -            285,278        164,857        238,869        293,564        26,477        817,039        13,507   

Asset charges (note 3)

     (6,404 )      (15,499 )      (36,875 )      (4,406 )      (39,589 )      -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     (6,404 )      269,779        127,982        234,463        253,975        26,477        817,039        13,507   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     1,371,082        1,255,158        3,315,212        82,367        (109,093 )      (1,620 )      3,923,741        18,772   

Change in unrealized gain (loss) on investments

     (3,157,385 )      (7,772,252 )      (8,582,517 )      (656,344 )      (115,239 )      (32,287 )      (17,835,435 )      (100,572 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (1,786,303 )      (6,517,094 )      (5,267,305 )      (573,977 )      (224,332 )      (33,907 )      (13,911,694 )      (81,800 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     1,895,359        3,832,274        4,454,708        -            -            -            19,631,603        28,883   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ 102,652      $ (2,415,041 )    $ (684,615 )    $ (339,514 )    $ 29,643      $ (7,430 )    $ 6,536,948      $ (39,410 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   EIF     NVRE1     NVLCAP     NVLMP     NVSIX2     GVEX1     NOTB3     NOTMG3  

Reinvested dividends

   $ 178,692      $ 956,586      $ 779      $ 115      $ 3,277      $ 62,071      $ 421      $ 1   

Asset charges (note 3)

     (1,175 )      (19,379 )      -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     177,517        937,207        779        115        3,277        62,071        421        1   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     518,363        60,266        (55 )      (18 )      (3,141 )      63,366        (81 )      (6 ) 

Change in unrealized gain (loss) on investments

     (1,429,961 )      (8,475,822 )      (3,018 )      (204 )      (33,556 )      (141,305 )      (3,704 )      (280 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (911,598 )      (8,415,556 )      (3,073 )      (222 )      (36,697 )      (77,939 )      (3,785 )      (286 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     -            5,329,680        1,517        36        20,782        39,810        840        2   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (734,081 )    $ (2,148,669 )    $ (777 )    $ (71 )    $ (12,638 )    $ 23,942      $ (2,524 )    $ (283 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   ALVGIA     ALVIVA     ALVSVA     ACVCA     ACVIG     ACVIP2     ACVI     ACVMV1  

Reinvested dividends

   $ 347,817      $ 215,106      $ 154,319      $ -          $ 428,075      $ 241,073      $ 7,528      $ 220,335   

Asset charges (note 3)

     (45,593 )      (14,188 )      (16,663 )      (1,383 )      (8,397 )      -            (4,023 )      (8,073 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     302,224        200,918        137,656        (1,383 )      419,678        241,073        3,505        212,262   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     2,802,381        186,636        596,243        128,696        851,186        (639,745 )      275,464        837,810   

Change in unrealized gain (loss) on investments

     (2,681,596 )      (204,444 )      (4,989,028 )      (175,817 )      (4,205,843 )      123,310        (294,239 )      (1,860,368 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     120,785        (17,808 )      (4,392,785 )      (47,121 )      (3,354,657 )      (516,435 )      (18,775 )      (1,022,558 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     -            -            3,136,679        40,745        1,774,328        -            -            591,112   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ 423,009      $ 183,110      $ (1,118,450 )    $ (7,759 )    $ (1,160,651 )    $ (275,362 )    $ (15,270 )    $ (219,184 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   ACVU1     ACVV     DVMCS     DVSCS     DCAP     DSC     DVIV     SVSSVB  

Reinvested dividends

   $ 6,746      $ 506,561      $ 22,856      $ 667,449      $ 404,067      $ -          $ 118,965      $ -       

Asset charges (note 3)

     (2,577 )      (45,432 )      (7,362 )      (167,400 )      (13,147 )      -            (10,331 )      (656 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     4,169        461,129        15,494        500,049        390,920        -            108,634        (656 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     398,710        3,154,136        198,637        6,601,408        1,918,192        92,242        247,961        30,987   

Change in unrealized gain (loss) on investments

     (428,278 )      (4,474,016 )      (875,105 )      (15,200,764 )      (4,071,115 )      (129,288 )      (461,605 )      (57,660 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (29,568 )      (1,319,880 )      (676,468 )      (8,599,356 )      (2,152,923 )      (37,046 )      (213,644 )      (26,673 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     145,277        -            596,636        5,950,257        1,203,674        15,609        -            26,754   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ 119,878      $ (858,751 )    $ (64,338 )    $ (2,149,050 )    $ (558,329 )    $ (21,437 )    $ (105,010 )    $ (575 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   SVSLVB     FVCA2P     FQB     FCS     FNRS2     FEIS     FF10S     FF20S  

Reinvested dividends

   $ 1,638      $ 12,215      $ 1,010,199      $ 330,187      $ 69,431      $ 1,838,693      $ 38,950      $ 498,553   

Asset charges (note 3)

     (355 )      -            (24,535 )      (95,922 )      -            (33,976 )      (912 )      (43,101 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     1,283        12,215        985,664        234,265        69,431        1,804,717        38,038        455,452   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     5,181        (5,098 )      67,659        9,664,141        (355,513 )      2,980,977        73,170        328,768   

Change in unrealized gain (loss) on investments

     (24,268 )      (55,868 )      (1,139,269 )      (14,401,641 )      (1,512,594 )      (13,017,860 )      (116,011 )      (1,032,078 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (19,087 )      (60,966 )      (1,071,610 )      (4,737,500 )      (1,868,107 )      (10,036,883 )      (42,841 )      (703,310 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     6,415        1,024        -            5,099,951        212,716        5,673,847        6,570        119,356   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (11,389 )    $ (47,727 )    $ (85,946 )    $ 596,716      $ (1,585,960 )    $ (2,558,319 )    $ 1,767      $ (128,502 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   FF30S     FFINS     FGOS     FGS     FHIS     FIP     FIGBS     FMCS  

Reinvested dividends

   $ 216,078      $ 21,510      $ 187      $ 143,873      $ 894,809      $ 928,987      $ 4,353,573      $ 179,837   

Asset charges (note 3)

     (14,405 )      (2,562 )      (2,701 )      (71,538 )      (15,817 )      (95,180 )      (279,290 )      (41,748 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     201,673        18,948        (2,514 )      72,335        878,992        833,807        4,074,283        138,089   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     310,788        9,315        1,000,287        4,135,585        (64,469 )      2,422,243        (523,374 )      1,457,252   

Change in unrealized gain (loss) on investments

     (700,905 )      (37,989 )      (905,602 )      (909,306 )      (1,507,420 )      (2,744,568 )      (5,318,505 )      (8,149,939 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (390,117 )      (28,674 )      94,685        3,226,279        (1,571,889 )      (322,325 )      (5,841,879 )      (6,692,687 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     66,107        1,706        51,369        2,753,757        -            23,251        127,077        6,009,549   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (122,337 )    $ (8,020 )    $ 143,540      $ 6,052,371      $ (692,897 )    $ 534,733      $ (1,640,519 )    $ (545,049 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   FOS     FVSS     FF05S     FF15S     FF25S     FF40S     FTVIS2     FTVRDI  

Reinvested dividends

   $ 240,801      $ 38,652      $ 3,016      $ 191,559      $ 247,885      $ 110,175      $ 303,078      $ 269,461   

Asset charges (note 3)

     (7,500 )      (1,369 )      (270 )      (22,957 )      (30,580 )      (15,231 )      -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     233,301        37,283        2,746        168,602        217,305        94,944        303,078        269,461   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     847,327        1,041,060        193        181,306        467,557        439,019        67,282        712,132   

Change in unrealized gain (loss) on investments

     (1,453,059 )      (1,184,629 )      (5,727 )      (454,356 )      (833,914 )      (620,117 )      (831,478 )      (3,179,153 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (605,732 )      (143,569 )      (5,534 )      (273,050 )      (366,357 )      (181,098 )      (764,196 )      (2,467,021 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     18,961        4,120        361        54,176        73,306        43,025        -            1,677,113   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (353,470 )    $ (102,166 )    $ (2,427 )    $ (50,272 )    $ (75,746 )    $ (43,129 )    $ (461,118 )    $ (520,447 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   FTVSVI     FTVSV2     FTVMD2     FTVDM2     TIF     TIF2     FTVGI2     FTVFA2  

Reinvested dividends

   $ 89,263      $ 68,829      $ 61,370      $ 60,438      $ 42,124      $ 817,731      $ 909,052      $ 21,227   

Asset charges (note 3)

     -            (22,557 )      (1,180 )      -            -            (43,999 )      (3,036 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     89,263        46,272        60,190        60,438        42,124        773,732        906,016        21,227   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     773,780        431,175        (15,121 )      (251,045 )      4,703        371,073        (173,148 )      (20,790 ) 

Change in unrealized gain (loss) on investments

     (2,976,841 )      (2,843,013 )      (344,491 )      (778,823 )      (152,028 )      (3,642,164 )      (1,295,522 )      (48,744 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (2,203,061 )      (2,411,838 )      (359,612 )      (1,029,868 )      (147,325 )      (3,271,091 )      (1,468,670 )      (69,534 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     1,416,193        1,582,970        123,517        384,881        39,502        835,214        59,042        1,161   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (697,605 )    $ (782,596 )    $ (175,905 )    $ (584,549 )    $ (65,699 )    $ (1,662,145 )    $ (503,612 )    $ (47,146 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   GVMCE     GVCSE     GVGOPS     SBVSG     BNCAI     AMTB     AMGP     AMCG  

Reinvested dividends

   $ 177,338      $ 209      $ -          $ -          $ -          $ 52,226      $ 7,713      $ -       

Asset charges (note 3)

     (120,112 )      (109 )      (3,582 )      (24,439 )      (20,487 )      -            (1,769 )      (5,894 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     57,226        100        (3,582 )      (24,439 )      (20,487 )      52,226        5,944        (5,894 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     6,311,028        (4,040 )      (165,353 )      (75,569 )      359,343        (73,598 )      (180,544 )      (293,173 ) 

Change in unrealized gain (loss) on investments

     (14,080,635 )      (5,177 )      (60,394 )      (650,497 )      (1,586,865 )      26,717        (140,305 )      119,501   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (7,769,607 )      (9,217 )      (225,747 )      (726,066 )      (1,227,522 )      (46,881 )      (320,849 )      (173,672 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     3,193,109        8,843        119,074        250,052        783,787        -            269,213        223,112   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (4,519,272 )    $ (274 )    $ (110,255 )    $ (500,453 )    $ (464,222 )    $ 5,345      $ (45,692 )    $ 43,546   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   AMMCGS     AMTP     AMRI     AMSRS     OVGR     OVGS     OVIG     OVGI  

Reinvested dividends

   $ -          $ 5,502      $ 41,332      $ 11,634      $ 13,318      $ 986,450      $ 60,570      $ 294,352   

Asset charges (note 3)

     (22 )      (658 )      (13,037 )      -            (32,321 )      (94,635 )      (11,606 )      (11,837 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     (22 )      4,844        28,295        11,634        (19,003 )      891,815        48,964        282,515   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     (14,902 )      65,034        48,757        276,438        1,631,191        6,866,639        (40,431 )      971,051   

Change in unrealized gain (loss) on investments

     (45,608 )      (192,795 )      (637,790 )      (483,836 )      (3,585,060 )      (9,612,017 )      (311,357 )      (4,973,461 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (60,510 )      (127,761 )      (589,033 )      (207,398 )      (1,953,869 )      (2,745,378 )      (351,788 )      (4,002,410 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     -            55,600        123,169        183,936        2,549,306        4,917,842        369,692        4,806,256   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (60,532 )    $ (67,317 )    $ (437,569 )    $ (11,828 )    $ 576,434      $ 3,064,279      $ 66,868      $ 1,086,361   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   OVSC     OVAG     OVSB     PMVAAA     PMVRSA     PMVFBA     PMVLGA     PMVLDA  

Reinvested dividends

   $ 58,791      $ -          $ 1,300,440      $ 810,598      $ 1,350      $ 21,591      $ 56,057      $ 1,770,271   

Asset charges (note 3)

     -            (11,928 )      -            (50,825 )      -            (1,128 )      (6,644 )      (107,180 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     58,791        (11,928 )      1,300,440        759,773        1,350        20,463        49,413        1,663,091   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     434,129        1,423,445        (421,949 )      (1,140,261 )      (9,415 )      (44,538 )      87,015        (420,973 ) 

Change in unrealized gain (loss) on investments

     (1,865,155 )      (2,011,294 )      (1,400,706 )      (1,813,156 )      (7,630 )      (82,502 )      (168,979 )      (1,114,082 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (1,431,026 )      (587,849 )      (1,822,655 )      (2,953,417 )      (17,045 )      (127,040 )      (81,964 )      (1,535,055 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     970,386        2,382,946        -            -            -            5,347        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (401,849 )    $ 1,783,169      $ (522,215 )    $ (2,193,644 )    $ (15,695 )    $ (101,230 )    $ (32,551 )    $ 128,036   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   PMVRRA     PMVTRA     PIVEMI     PIHYB1     PVGIB     PVTIGB     PVTSCB     PVTVB  

Reinvested dividends

   $ 2,884,153      $ 4,884,534      $ 28,660      $ 239,970      $ 18,519      $ 13,129      $ 6,643      $ 17,063   

Asset charges (note 3)

     (164,902 )      (214,796 )      (487 )      (9,141 )      -            -            (1,851 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     2,719,251        4,669,738        28,173        230,829        18,519        13,129        4,792        17,063   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     (3,429,599 )      (2,325,675 )      (143,169 )      (333,262 )      64,016        58,197        (70,712 )      58,525   

Change in unrealized gain (loss) on investments

     (1,159,640 )      (1,948,588 )      (86,496 )      (250,895 )      (163,319 )      (73,704 )      (62,090 )      (393,229 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (4,589,239 )      (4,274,263 )      (229,665 )      (584,157 )      (99,303 )      (15,507 )      (132,802 )      (334,704 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     -            956,880        96,814        176,411        -            -            88,346        233,250   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (1,869,988 )    $ 1,352,355      $ (104,678 )    $ (176,917 )    $ (80,784 )    $ (2,378 )    $ (39,664 )    $ (84,391 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   ACGI     ACEG     AVBVI     AVHY1     AVIE     AVMCCI     AVSCE     ROCMC  

Reinvested dividends

   $ 148,678      $ -          $ 11,093      $ 789,101      $ 694,337      $ 1,460      $ -          $ -       

Asset charges (note 3)

     (12,536 )      -            (541 )      (31,422 )      (115,443 )      (752 )      (253 )      (18,834 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     136,142        -            10,552        757,679        578,894        708        (253 )      (18,834 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     150,165        50,542        66,450        (60,012 )      3,810,415        (14,751 )      (21,332 )      (124,506 ) 

Change in unrealized gain (loss) on investments

     (1,239,878 )      (5,413 )      (132,970 )      (1,152,971 )      (5,901,229 )      (38,348 )      (43,040 )      (1,541,321 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (1,089,713 )      45,129        (66,520 )      (1,212,983 )      (2,090,814 )      (53,099 )      (64,372 )      (1,665,827 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     772,632        5,791        31,138        -            -            39,216        42,403        446,667   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (180,939 )    $ 50,920      $ (24,830 )    $ (455,304 )    $ (1,511,920 )    $ (13,175 )    $ (22,222 )    $ (1,237,994 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   RVARS     TREI2     TRHS2     TRLT1     TRMCG2     TRNAG1     TRPSB1     TRBCGP  

Reinvested dividends

   $ 5,292      $ 1,015,760      $ -          $ 257,265      $ -          $ -          $ 61,412      $ -       

Asset charges (note 3)

     -            (146,656 )      (38,827 )      (54,950 )      (58,571 )      (82,814 )      (7,164 )      (62,903 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     5,292        869,104        (38,827 )      202,315        (58,571 )      (82,814 )      54,248        (62,903 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     28,794        6,969,013        4,087,794        (101,809 )      5,240,635        2,310,271        (125,093 )      1,409,080   

Change in unrealized gain (loss) on investments

     (21,158 )      (14,033,326 )      (2,725,705 )      (96,311 )      (6,026,438 )      (2,590,922 )      (216,742 )      1,993,768   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     7,636        (7,064,313 )      1,362,089        (198,120 )      (785,803 )      (280,651 )      (341,835 )      3,402,848   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     -            1,216,426        2,580,507        -            2,808,783        4,090,222        266,599        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ 12,928      $ (4,978,783 )    $ 3,903,769      $ 4,195      $ 1,964,409      $ 3,726,757      $ (20,988 )    $ 3,339,945   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   VWEM     VWHA     VVB     VVCG     VVDV     VVI     VVMCI     VVREI  

Reinvested dividends

   $ 72,781      $ 8,856      $ 199,359      $ -          $ 381,725      $ 73,596      $ 197,673      $ 171,972   

Asset charges (note 3)

     (10,207 )      (45,405 )      (17,067 )      (13,263 )      (31,050 )      (18,117 )      (53,771 )      (19,272 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     62,574        (36,549 )      182,292        (13,263 )      350,675        55,479        143,902        152,700   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     (579,295 )      (2,353,188 )      253,999        43        708,830        193,527        814,562        233,365   

Change in unrealized gain (loss) on investments

     (1,865,592 )      (7,885,482 )      (881,341 )      105,878        (2,447,870 )      (836,825 )      (2,777,348 )      (600,317 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (2,444,887 )      (10,238,670 )      (627,342 )      105,921        (1,739,040 )      (643,298 )      (1,962,786 )      (366,952 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     718,177        -            394,520        -            986,258        60,454        885,839        325,445   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (1,664,136 )    $ (10,275,219 )    $ (50,530 )    $ 92,658      $ (402,107 )    $ (527,365 )    $ (933,045 )    $ 111,193   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   VVSTC     VVSCG     VVHGB     WRASP     WRGP     WRHIP     WRMCG     WRRESP  

Reinvested dividends

   $ 87,297      $ 16,153      $ 378,825      $ 48,843      $ 4,755      $ 2,563,407      $ -          $ 89,812   

Asset charges (note 3)

     (10,643 )      (9,022 )      (42,189 )      (8,564 )      (8,175 )      (61,530 )      (13,780 )      (6,585 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     76,654        7,131        336,636        40,279        (3,420 )      2,501,877        (13,780 )      83,227   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     (37,140 )      (22,409 )      (157,341 )      62,495        (2,557 )      (832,503 )      (5,105 )      236,892   

Change in unrealized gain (loss) on investments

     5,979        (660,162 )      (341,604 )      (3,819,448 )      (510,609 )      (4,694,091 )      (928,712 )      (870,992 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (31,161 )      (682,571 )      (498,945 )      (3,756,953 )      (513,166 )      (5,526,594 )      (933,817 )      (634,100 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     886        513,177        71,030        2,345,337        525,750        435,234        490,678        857,574   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ 46,379      $ (162,263 )    $ (91,279 )    $ (1,371,337 )    $ 9,164      $ (2,589,483 )    $ (456,919 )    $ 306,701   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

 

Investment Activity:   WRSTP     SVDF     SVOF     WFVSCG     MIGIC     FHISR     MVRISC     FOSR  

Reinvested dividends

   $ -          $ -          $ 11,679      $ -          $ 28,322      $ 10,244      $ 75,242      $ -       

Asset charges (note 3)

     (23,249 )      (19,554 )      (20,216 )      (9,794 )      -            -            (1,714 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     (23,249 )      (19,554 )      (8,537 )      (9,794 )      28,322        10,244        73,528        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

     645,325        929,488        1,706,484        379,829        738,759        23,462        373,021        2,938,980   

Change in unrealized gain (loss) on investments

     (1,996,424 )      (3,499,131 )      (2,911,383 )      (1,417,695 )      (1,017,898 )      152,161        (248,986 )      (1,887,078 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

     (1,351,099 )      (2,569,643 )      (1,204,899 )      (1,037,866 )      (279,139 )      175,623        124,035        1,051,902   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

     932,305        2,319,407        935,022        824,663        297,947        -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (442,043 )    $ (269,790 )    $ (278,414 )    $ (222,997 )    $ 47,130      $ 185,867      $ 197,563      $ 1,051,902   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:   AMFAS                                            

Reinvested dividends

   $ -                     

Asset charges (note 3)

     (563 )               
 

 

 

                

Net investment income (loss)

     (563 )               
 

 

 

                

Realized gain (loss) on investments

     (216,041 )               

Change in unrealized gain (loss) on investments

     (56,197 )               
 

 

 

                

Net gain (loss) on investments

     (272,238 )               
 

 

 

                

Reinvested capital gains

     260,397                 
 

 

 

                

Net increase (decrease) in contract owners’
equity resulting from operations

   $ (12,404 )               
 

 

 

                

See accompanying notes to financial statements.

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    Total     ALVDAA     ACVIP1     AMVAA2  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 73,565,886      $ 69,175,816      $ 552      $ 293      $ 123,750      $ 7,374      $ 72,606      $ 41,718   

Realized gain (loss) on investments

     157,541,808        164,268,990        634        11,869        (40,592 )      (2,979 )      77,689        408,358   

Change in unrealized gain (loss) on investments

     (475,204,916 )      (131,795,881 )      (3,333 )      (6,662 )      (365,402 )      (4,858 )      (432,377 )      (479,810 ) 

Reinvested capital gains

     206,683,439        156,000,821        1,108        2,030        -            13,501        333,728        217,971   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (37,413,783 )      257,649,746        (1,039 )      7,530        (282,244 )      13,038        51,646        188,237   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     230,175,856        236,172,929        6,669        5,923        4,587        18,691        348,568        255,811   

Transfers between funds

     -            -            20,242        (140,452 )      4,969,655        422,500        1,798,242        340,345   

Surrenders (note 6)

     (261,930,075 )      (242,494,312 )      (710 )      -            (15,845 )      (14 )      (45,336 )      (1,521,482 ) 

Death Benefits (note 4)

     (21,800,687 )      (23,966,871 )      -            -            (5 )      -            (31,992 )      -       

Net policy repayments (loans) (note 5)

     (7,475,773 )      (10,167,050 )      (30 )      -            (3,332 )      -            (27,774 )      (43,870 ) 

Deductions for surrender charges (note 2d)

     (117,645 )      (359,613 )      -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (107,812,060 )      (107,404,127 )      (5,855 )      (4,568 )      (41,151 )      (9,411 )      (87,962 )      (61,448 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (5,536,627 )      (5,763,905 )      (281 )      (332 )      (98 )      (14 )      (1,403 )      (1,122 ) 

MSP contracts

     (294,944 )      (303,965 )      -            -            -            -            -            -       

SL contracts or LSFP contracts

     (703,206 )      (711,618 )      -            -            -            -            -            -       

Adjustments to maintain reserves

     8,440        42,074        5        8        (768 )      1,917        (2 )      14   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (175,486,721 )      (154,956,458 )      20,040        (139,421 )      4,913,043        433,669        1,952,341        (1,031,752 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (212,900,504 )      102,693,288        19,001        (131,891 )      4,630,799        446,707        2,003,987        (843,515 ) 

Contract owners’ equity beginning of period

     4,739,882,176        4,637,188,888        45,805        177,696        849,750        403,043        3,163,145        4,006,660   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 4,526,981,672      $ 4,739,882,176      $ 64,806      $ 45,805      $ 5,480,549      $ 849,750      $ 5,167,132      $ 3,163,145   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     251,462,059        250,893,361        3,808        15,430        89,451        43,953        219,500        293,121   

Units purchased

     46,460,532        65,435,424        2,252        835        561,286        46,488        150,977        44,305   

Units redeemed

     (48,116,824 )      (64,866,726 )      (613 )      (12,457 )      (57,847 )      (990 )      (15,848 )      (117,926 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     249,805,767        251,462,059        5,447        3,808        592,890        89,451        354,629        219,500   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    AMVBD2     AMVGS2     AMVGR2     AMVI2  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 1,133,237      $ 1,126,946      $ (4,302 )    $ (2,430 )    $ 58,715      $ 141,725      $ 67,183      $ 53,336   

Realized gain (loss) on investments

     (10,918 )      116        284,933        266,876        4,209,138        941,972        176,738        193,992   

Change in unrealized gain (loss) on investments

     (2,381,044 )      (962,810 )      (312,589 )      (220,582 )      (6,136,457 )      (319,946 )      (773,619 )      (384,005 ) 

Reinvested capital gains

     1,386,907        23        125,351        12,354        3,364,440        1,199,477        276,716        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     128,182        164,275        93,393        56,218        1,495,836        1,963,228        (252,982 )      (136,677 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     737        3,305        143,033        109,646        636,096        585,106        858,836        650,131   

Transfers between funds

     3,577        70,884,778        (964,330 )      (21,390 )      (8,729,499 )      (688,929 )      631,694        769,397   

Surrenders (note 6)

     (41,665 )      (702 )      (205,389 )      (36,383 )      (441,281 )      (316,220 )      (551,918 )      (30,493 ) 

Death Benefits (note 4)

     -            (846 )      (3,934 )      (5,065 )      (62,232 )      (51,152 )      (22,950 )      (2,344 ) 

Net policy repayments (loans) (note 5)

     (353 )      (8,720 )      (6,588 )      (128 )      (6,598 )      (40,511 )      585        (161 ) 

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (637,156 )      (104,838 )      (23,066 )      (30,518 )      (275,499 )      (287,046 )      (98,310 )      (70,671 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (40 )      (85 )      (132 )      (278 )      (69 )      (10 )      (256 )      (178 ) 

MSP contracts

     -            -            -            -            -            -            -            -       

SL contracts or LSFP contracts

     -            -            -            -            -            -            -            -       

Adjustments to maintain reserves

     23        7        (9 )      (5 )      (4 )      (11 )      (23 )      (7 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (674,877 )      70,772,899        (1,060,415 )      15,879        (8,879,086 )      (798,773 )      817,658        1,315,674   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (546,695 )      70,937,174        (967,022 )      72,097        (7,383,250 )      1,164,455        564,676        1,178,997   

Contract owners’ equity beginning of period

     71,011,198        74,024        2,511,188        2,439,091        24,825,384        23,660,929        4,678,454        3,499,457   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 70,464,503      $ 71,011,198      $ 1,544,166      $ 2,511,188      $ 17,442,134      $ 24,825,384      $ 5,243,130      $ 4,678,454   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     5,686,802        6,226        204,209        202,172        1,698,415        1,752,402        430,497        312,711   

Units purchased

     358        5,690,932        19,573        45,182        75,203        75,936        138,452        129,417   

Units redeemed

     (53,934 )      (10,356 )      (98,159 )      (43,145 )      (653,359 )      (129,923 )      (62,486 )      (11,631 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     5,633,226        5,686,802        125,623        204,209        1,120,259        1,698,415        506,463        430,497   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    BRVHYI     MLVLC2     MLVGA2     CVSPIP  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 50,643      $ 6,501      $ 11,248      $ 16,954      $ 102,280      $ 228,678      $ (980 )    $ 6,913   

Realized gain (loss) on investments

     (26,364 )      (1 )      335,732        213,602        (62,239 )      106,099        (25,844 )      174   

Change in unrealized gain (loss) on investments

     (182,132 )      (11,348 )      (429,169 )      (252,528 )      (657,456 )      (977,571 )      10,700        (23,623 ) 

Reinvested capital gains

     25,185        2,610        104,072        337,641        530,085        846,120        9,344        37,320   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (132,668 )      (2,238 )      21,883        315,669        (87,330 )      203,326        (6,780 )      20,784   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     85        -            221,265        118,739        486,677        542,862        31,176        -       

Transfers between funds

     3,364,781        501,787        (913,294 )      (191,876 )      (497,833 )      786,293        94,887        432,164   

Surrenders (note 6)

     -            -            (176,386 )      (2,660 )      (588,687 )      (326,661 )      -            -       

Death Benefits (note 4)

     (2 )      -            (255 )      (6,594 )      (17,787 )      (3,520 )      -            -       

Net policy repayments (loans) (note 5)

     -            -            (65,329 )      (40,802 )      (184,746 )      (162,898 )      (4,801 )      -       

Deductions for surrender charges (note 2d)

     -            -            -            -            295        (107 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (8,499 )      -            (46,064 )      (42,614 )      (425,844 )      (395,318 )      (12,910 )      (1,022 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     -            -            (282 )      (315 )      (31,541 )      (30,377 )      -            -       

MSP contracts

     -            -            -            -            (996 )      (904 )      -            -       

SL contracts or LSFP contracts

     -            -            -            -            (5,203 )      (5,427 )      -            -       

Adjustments to maintain reserves

     1,743        (4 )      6        (17 )      (1 )      7        (11 )      7   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     3,358,108        501,783        (980,339 )      (166,139 )      (1,265,666 )      403,950        108,341        431,149   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     3,225,440        499,545        (958,456 )      149,530        (1,352,996 )      607,276        101,561        451,933   

Contract owners’ equity beginning of period

     499,545        -            2,885,881        2,736,351        11,039,090        10,431,814        451,933        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 3,724,985      $ 499,545      $ 1,927,425      $ 2,885,881      $ 9,686,094      $ 11,039,090      $ 553,494      $ 451,933   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     51,392        -            145,570        154,703        665,128        640,899        40,910        -       

Units purchased

     347,896        51,392        24,503        15,863        36,835        80,975        50,402        40,998   

Units redeemed

     (1,346 )      -            (72,396 )      (24,996 )      (113,242 )      (56,746 )      (41,519 )      (88 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     397,942        51,392        97,677        145,570        588,721        665,128        49,793        40,910   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    DAVVL     DWVEMS     DWVSVS     DFVIS  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 17,742      $ 23,941      $ 4,222      $ 1,264      $ 39,076      $ 7,311      $ 20,110      $ -       

Realized gain (loss) on investments

     34,305        104,347        (26,217 )      3,847        3,457        574,571        (11,293 )      -       

Change in unrealized gain (loss) on investments

     (394,395 )      (537,504 )      (221,696 )      (106,929 )      (2,588,514 )      (987,218 )      (81,358 )      -       

Reinvested capital gains

     394,807        582,501        26,736        3,136        1,626,973        962,455        33,302        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     52,459        173,285        (216,955 )      (98,682 )      (919,008 )      557,119        (39,239 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     160,324        237,703        526,550        424,361        1,233,125        614,538        (89 )      -       

Transfers between funds

     (506,177 )      (62,252 )      632,664        434,132        (1,489,437 )      3,124,620        1,107,002        -       

Surrenders (note 6)

     (35,568 )      (65,043 )      (3,306 )      -            (354,359 )      (169,859 )      (38,599 )      -       

Death Benefits (note 4)

     (9 )      -            (16 )      -            (29,778 )      (22,967 )      (2,581 )      -       

Net policy repayments (loans) (note 5)

     (18,440 )      (21,076 )      (745 )      -            61,833        (17,113 )      -            -       

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (35,584 )      (36,194 )      (37,699 )      (31,676 )      (227,033 )      (194,410 )      (4,825 )      -       

Asset charges (note 3):

                

FPVUL & VEL contracts

     (2,316 )      (2,584 )      (4 )      (3 )      (1,328 )      (1,024 )      -            -       

MSP contracts

     -            -            -            -            -            -            -            -       

SL contracts or LSFP contracts

     -            -            -            -            -            -            -            -       

Adjustments to maintain reserves

     (10 )      (15 )      1        (13 )      (20 )      (288 )      (4 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (437,780 )      50,539        1,117,445        826,801        (806,997 )      3,333,497        1,060,904        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (385,321 )      223,824        900,490        728,119        (1,726,005 )      3,890,616        1,021,665        -       

Contract owners’ equity beginning of period

     2,888,623        2,664,799        1,148,980        420,861        14,786,804        10,896,188        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 2,503,302      $ 2,888,623      $ 2,049,470      $ 1,148,980      $ 13,060,799      $ 14,786,804      $ 1,021,665      $ -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     219,468        214,206        110,505        37,049        1,035,605        804,104        -            -       

Units purchased

     11,992        35,230        125,606        76,259        132,415        315,265        110,690        -       

Units redeemed

     (44,177 )      (29,968 )      (4,275 )      (2,803 )      (187,862 )      (83,764 )      (4,737 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     187,283        219,468        231,836        110,505        980,158        1,035,605        105,953        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    DFVUTV     DSIF     DSRG     ETVFR  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 24,570      $ -          $ 7,194,548      $ 6,329,048      $ 131,372      $ 130,283      $ 2,153,287      $ 1,607,063   

Realized gain (loss) on investments

     (16,221 )      -            29,566,708        12,600,863        777,547        554,171        (253,501 )      14,840   

Change in unrealized gain (loss) on investments

     (316,451 )      -            (44,641,970 )      25,451,260        (2,951,356 )      42,892        (2,614,256 )      (1,575,323 ) 

Reinvested capital gains

     142,051        -            11,749,112        4,302,749        1,668,105        858,879        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (166,051 )      -            3,868,398        48,683,920        (374,332 )      1,586,225        (714,470 )      46,580   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     (323 )      -            15,346,063        15,161,188        675,825        734,687        283,477        457,558   

Transfers between funds

     2,228,929        -            16,884,811        28,695,837        (606,819 )      152,139        (444,493 )      41,628,564   

Surrenders (note 6)

     (78,101 )      -            (19,087,452 )      (10,898,444 )      (709,318 )      (835,854 )      (1,210,455 )      (159,888 ) 

Death Benefits (note 4)

     (5,227 )      -            (1,250,584 )      (3,263,570 )      (252,148 )      (38,505 )      (34,286 )      (11,025 ) 

Net policy repayments (loans) (note 5)

     -            -            (1,532,190 )      535,516        68,378        15,302        (650,427 )      (517 ) 

Deductions for surrender charges (note 2d)

     -            -            (4,481 )      (6,204 )      (50 )      (27 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (9,663 )      -            (9,373,668 )      (8,662,526 )      (678,052 )      (678,461 )      (776,341 )      (474,054 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     -            -            (435,953 )      (444,718 )      (51,543 )      (53,563 )      (438 )      (320 ) 

MSP contracts

     -            -            (12,846 )      (13,309 )      (1,480 )      (1,603 )      -            -       

SL contracts or LSFP contracts

     -            -            (69,819 )      (66,814 )      (1,683 )      (1,912 )      -            -       

Adjustments to maintain reserves

     (5 )      -            214        1,824        (385 )      1,438        (496 )      (73 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     2,135,610        -            464,095        21,038,780        (1,557,275 )      (706,359 )      (2,833,459 )      41,440,245   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     1,969,559        -            4,332,493        69,722,700        (1,931,607 )      879,866        (3,547,929 )      41,486,825   

Contract owners’ equity beginning of period

     -            -            428,953,663        359,230,963        13,108,017        12,228,151        66,999,384        25,512,559   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 1,969,559      $ -          $ 433,286,156      $ 428,953,663      $ 11,176,410      $ 13,108,017      $ 63,451,455      $ 66,999,384   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     -            -            19,703,250        18,495,758        579,590        609,225        6,022,601        2,302,534   

Units purchased

     225,046        -            1,801,373        2,560,916        46,157        50,005        272,465        3,795,995   

Units redeemed

     (9,752 )      -            (1,632,284 )      (1,353,424 )      (122,037 )      (79,640 )      (525,543 )      (75,928 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     215,294        -            19,872,339        19,703,250        503,710        579,590        5,769,523        6,022,601   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    FTVGB1     GVGMNS     IVKMG1     IVBRA1  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 879,228      $ 429,386      $ 23      $ 15      $ (3,982 )    $ (3,517 )    $ 26,252      $ -       

Realized gain (loss) on investments

     (289,149 )      (45,831 )      924        995        493,195        257,214        (5,320 )      (77 ) 

Change in unrealized gain (loss) on investments

     (1,180,828 )      (367,092 )      (3,049 )      (580 )      (808,966 )      98,049        (105,893 )      (11,226 ) 

Reinvested capital gains

     56,886        -            577        344        381,271        -            54,647        8,315   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (533,863 )      16,463        (1,525 )      774        61,518        351,746        (30,314 )      (2,988 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     1,145,793        806,237        1,285        1,959        201,155        145,854        19,819        684   

Transfers between funds

     2,146,536        11,555,040        (360 )      (5,176 )      496,502        876,549        271,965        400,155   

Surrenders (note 6)

     (1,109,483 )      (282,316 )      (8,390 )      -            (499,996 )      (569,942 )      (9,718 )      -       

Death Benefits (note 4)

     (2,105 )      (5,592 )      -            -            (3,491 )      (5,032 )      -            -       

Net policy repayments (loans) (note 5)

     (46,496 )      781        (64 )      35        (4,917 )      (33,760 )      (12,832 )      681   

Deductions for surrender charges (note 2d)

     -            -            -            -            (80 )      (1,052 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (184,568 )      (103,776 )      (1,603 )      (1,970 )      (123,824 )      (116,698 )      (13,297 )      (1,434 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (2,186 )      (1,014 )      (141 )      (189 )      (9,811 )      (9,551 )      (1,956 )      (249 ) 

MSP contracts

     -            -            -            -            (368 )      (348 )      -            -       

SL contracts or LSFP contracts

     -            -            -            -            (1,944 )      (1,736 )      -            -       

Adjustments to maintain reserves

     (7 )      (41 )      2        (6 )      (1 )      12        2        (1 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     1,947,484        11,969,319        (9,271 )      (5,347 )      53,225        284,296        253,983        399,836   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     1,413,621        11,985,782        (10,796 )      (4,573 )      114,743        636,042        223,669        396,848   

Contract owners’ equity beginning of period

     11,985,782        -            37,178        41,751        4,953,394        4,317,352        396,848        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 13,399,403      $ 11,985,782      $ 26,382      $ 37,178      $ 5,068,137      $ 4,953,394      $ 620,517      $ 396,848   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,178,165        -            3,054        3,565        341,263        321,052        38,475        -       

Units purchased

     388,625        1,259,402        107        173        64,472        86,962        28,487        38,647   

Units redeemed

     (194,398 )      (81,237 )      (860 )      (684 )      (60,317 )      (66,751 )      (4,230 )      (172 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     1,372,392        1,178,165        2,301        3,054        345,418        341,263        62,732        38,475   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    JPMMV1     JPSCE1     JABS     JAFBS  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 91,758      $ 42,493      $ (27 )    $ -          $ 392,997      $ 316,466      $ 183,288      $ 54,792   

Realized gain (loss) on investments

     444,429        355,721        33        -            669,691        348,980        2,566        3,400   

Change in unrealized gain (loss) on investments

     (1,827,990 )      468,058        (109 )      -            (1,831,608 )      566,921        (311,186 )      (43,993 ) 

Reinvested capital gains

     890,570        409,988        -            -            806,630        581,544        38,354        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (401,233 )      1,276,260        (103 )      -            37,710        1,813,911        (86,978 )      14,199   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     1,201,351        675,911        6,725        -            2,110,919        2,038,225        1,087,753        16,707   

Transfers between funds

     5,373,498        2,631,355        37,330        -            551,934        1,732,017        12,868,588        4,560,442   

Surrenders (note 6)

     (715,916 )      (193,230 )      -            -            (1,732,944 )      (471,573 )      (5,703,917 )      (180,920 ) 

Death Benefits (note 4)

     (15,425 )      (17,732 )      -            -            (116,335 )      (68,217 )      (243 )      -       

Net policy repayments (loans) (note 5)

     94,161        (19,026 )      -            -            48,321        55,340        (14,547 )      277   

Deductions for surrender charges (note 2d)

     -            -            -            -            (68 )      -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (174,145 )      (118,796 )      (578 )      -            (477,470 )      (432,912 )      (132,029 )      (11,035 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (1,823 )      (1,104 )      -            -            (13,978 )      (13,864 )      (475 )      -       

MSP contracts

     -            -            -            -            (33 )      (28 )      -            -       

SL contracts or LSFP contracts

     -            -            -            -            (1,702 )      (1,449 )      -            -       

Adjustments to maintain reserves

     (8 )      (2 )      (1 )      -            9        (45 )      (15 )      6   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     5,761,693        2,957,376        43,476        -            368,653        2,837,494        8,105,115        4,385,477   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     5,360,460        4,233,636        43,373        -            406,363        4,651,405        8,018,137        4,399,676   

Contract owners’ equity beginning of period

     10,699,926        6,466,290        -            -            25,164,067        20,512,662        4,399,676        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 16,060,386      $ 10,699,926      $ 43,373      $ -          $ 25,570,430      $ 25,164,067      $ 12,417,813      $ 4,399,676   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     372,474        258,597        -            -            933,751        821,725        435,927        -       

Units purchased

     235,274        144,257        4,745        -            182,098        186,612        1,379,110        450,289   

Units redeemed

     (34,170 )      (30,380 )      (61 )      -            (167,879 )      (74,586 )      (581,037 )      (14,362 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     573,578        372,474        4,684        -            947,970        933,751        1,234,000        435,927   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    JACAS     JAGTS     JAIGS     JAMVS  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 544,780      $ (17,482 )    $ 119,287      $ (5,252 )    $ 115,319      $ 1,999,487      $ 17,362      $ 64,596   

Realized gain (loss) on investments

     587,908        1,940,895        1,721,783        1,271,107        (2,781,891 )      (2,696,527 )      (35,634 )      121,721   

Change in unrealized gain (loss) on investments

     (5,087,638 )      (12,114,412 )      (3,154,269 )      (850,920 )      (240,479 )      (5,919,021 )      (265,831 )      (190,410 ) 

Reinvested capital gains

     9,050,213        13,587,607        2,055,008        873,123        798,169        2,485,570        205,362        162,184   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     5,095,263        3,396,608        741,809        1,288,058        (2,108,882 )      (4,130,491 )      (78,741 )      158,091   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     1,895,009        1,841,493        525,179        566,188        991,026        1,172,636        33,750        74,515   

Transfers between funds

     (2,325,107 )      (3,563,449 )      (1,127,343 )      249,618        (3,561,288 )      (4,863,723 )      191,094        (140,927 ) 

Surrenders (note 6)

     (2,459,036 )      (1,942,928 )      (708,591 )      (673,745 )      (1,984,556 )      (2,026,381 )      (20,238 )      (12,872 ) 

Death Benefits (note 4)

     (180,685 )      (129,029 )      (94,680 )      (16,862 )      (133,693 )      (104,631 )      (18,598 )      -       

Net policy repayments (loans) (note 5)

     (2,067 )      (207,808 )      (80,090 )      (4,775 )      70,004        130,476        (35,753 )      1,241   

Deductions for surrender charges (note 2d)

     (1,440 )      (1,480 )      (128 )      (268 )      (1,175 )      (2,469 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (1,470,574 )      (1,320,000 )      (550,541 )      (524,785 )      (889,261 )      (1,033,278 )      (34,980 )      (36,245 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (102,864 )      (98,382 )      (43,154 )      (42,699 )      (67,369 )      (84,943 )      (183 )      (172 ) 

MSP contracts

     (3,118 )      (2,905 )      (1,027 )      (1,074 )      (2,716 )      (3,142 )      -            -       

SL contracts or LSFP contracts

     (9,469 )      (8,418 )      (3,500 )      (3,043 )      (7,068 )      (9,250 )      -            -       

Adjustments to maintain reserves

     20        43        10        89        10        20        (44 )      (4 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (4,659,331 )      (5,432,863 )      (2,083,865 )      (451,356 )      (5,586,086 )      (6,824,685 )      115,048        (114,464 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     435,932        (2,036,255 )      (1,342,056 )      836,702        (7,694,968 )      (10,955,176 )      36,307        43,627   

Contract owners’ equity beginning of period

     44,660,750        46,697,005        15,350,042        14,513,340        29,256,435        40,211,611        1,952,405        1,908,778   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 45,096,682      $ 44,660,750      $ 14,007,986      $ 15,350,042      $ 21,561,467      $ 29,256,435      $ 1,988,712      $ 1,952,405   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     2,473,108        2,806,731        1,666,220        1,724,013        1,927,784        2,331,866        128,064        135,589   

Units purchased

     121,359        278,492        207,499        185,830        104,627        107,366        15,444        41,292   

Units redeemed

     (361,764 )      (612,115 )      (421,147 )      (243,623 )      (475,801 )      (511,448 )      (7,827 )      (48,817 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     2,232,703        2,473,108        1,452,572        1,666,220        1,556,610        1,927,784        135,681        128,064   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    LZREMS     LOVBD     LOVMCV     LOVTRC  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 284,940      $ 420,985      $ 12,564      $ -          $ (580 )    $ 1,955      $ 174,278      $ -       

Realized gain (loss) on investments

     (526,065 )      (411,394 )      970        -            264,419        223,550        (494 )      -       

Change in unrealized gain (loss) on investments

     (5,757,125 )      (1,824,609 )      (23,178 )      -            (249,505 )      (86,265 )      (216,048 )      -       

Reinvested capital gains

     71,651        255,607        438        -            6,367        -            648        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (5,926,599 )      (1,559,411 )      (9,206 )      -            20,701        139,240        (41,616 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     1,613,604        1,055,115        19,442        -            98,328        8,738        39,908        -       

Transfers between funds

     5,306,843        4,879,606        305,417        -            (1,087,833 )      (101,818 )      6,894,209        -       

Surrenders (note 6)

     (1,284,197 )      (793,103 )      (5,624 )      -            (45,090 )      (372,497 )      -            -       

Death Benefits (note 4)

     (90,473 )      (149,282 )      (12 )      -            (4,829 )      (716 )      -            -       

Net policy repayments (loans) (note 5)

     (8,454 )      (14,276 )      -            -            30,754        (12,633 )      (39,754 )      -       

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (312,628 )      (302,398 )      (3,784 )      -            (13,092 )      (14,737 )      (21,669 )      -       

Asset charges (note 3):

                

FPVUL & VEL contracts

     (1,608 )      (1,941 )      -            -            (20 )      (33 )      (135 )      -       

MSP contracts

     -            -            -            -            -            -            -            -       

SL contracts or LSFP contracts

     -            -            -            -            -            -            -            -       

Adjustments to maintain reserves

     (89 )      59        (4 )      -            (6 )      20        12        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     5,222,998        4,673,780        315,435        -            (1,021,788 )      (493,676 )      6,872,571        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (703,601 )      3,114,369        306,229        -            (1,001,087 )      (354,436 )      6,830,955        -       

Contract owners’ equity beginning of period

     26,936,682        23,822,313        -            -            1,101,297        1,455,733        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 26,233,081      $ 26,936,682      $ 306,229      $ -          $ 100,210      $ 1,101,297      $ 6,830,955      $ -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     2,531,668        2,130,245        -            -            57,274        84,220        -            -       

Units purchased

     726,121        587,603        31,792        -            5,140        649        702,580        -       

Units redeemed

     (168,989 )      (186,180 )      (921 )      -            (56,973 )      (27,595 )      (6,232 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     3,088,800        2,531,668        30,871        -            5,441        57,274        696,348        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    MVBRES     MV2IGI     MV2RIS     MNDIC  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 6,234      $ -          $ 16,130      $ -          $ 49,361      $ -          $ -          $ -       

Realized gain (loss) on investments

     (25,354 )      -            (28,691 )      -            (7,975 )      -            (29,785 )      42,779   

Change in unrealized gain (loss) on investments

     (32,654 )      -            (223,180 )      -            (329,223 )      -            13,815        (222,400 ) 

Reinvested capital gains

     40,193        -            189,434        -            25,635        -            13,818        122,045   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (11,581 )      -            (46,307 )      -            (262,202 )      -            (2,152 )      (57,576 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     1,125        -            92,653        -            14,415        -            25,564        31,080   

Transfers between funds

     922,827        -            3,305,041        -            3,185,834        -            (110,267 )      (170,468 ) 

Surrenders (note 6)

     (82,601 )      -            (293,265 )      -            (21,313 )      -            (23,515 )      (34,313 ) 

Death Benefits (note 4)

     -            -            (13,332 )      -            (41,733 )      -            (4,269 )      -       

Net policy repayments (loans) (note 5)

     (3,467 )      -            3,076        -            (1,522 )      -            8,650        (5,585 ) 

Deductions for surrender charges (note 2d)

     -            -            (35 )      -            -            -            -            (5 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (5,137 )      -            (100,784 )      -            (36,028 )      -            (19,715 )      (24,194 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (49 )      -            (10,435 )      -            (138 )      -            (1,721 )      (2,309 ) 

MSP contracts

     -            -            (61 )      -            -            -            -            -       

SL contracts or LSFP contracts

     -            -            (438 )      -            -            -            -            -       

Adjustments to maintain reserves

     (2 )      -            -            -            (12 )      -            (2 )      3   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     832,696        -            2,982,420        -            3,099,503        -            (125,275 )      (205,791 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     821,115        -            2,936,113        -            2,837,301        -            (127,427 )      (263,367 ) 

Contract owners’ equity beginning of period

     -            -            -            -            -            -            534,273        797,640   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 821,115      $ -          $ 2,936,113      $ -          $ 2,837,301      $ -          $ 406,846      $ 534,273   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     -            -            -            -            -            -            39,384        54,531   

Units purchased

     82,116        -            329,321        -            320,363        -            3,212        2,855   

Units redeemed

     (8,049 )      -            (31,530 )      -            (10,342 )      -            (12,029 )      (18,002 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     74,067        -            297,791        -            310,021        -            30,567        39,384   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    MNDSC     MVFIC     MVFSC     MVIVSC  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ (1,229 )    $ (3,199 )    $ 227,749      $ 156,890      $ 553,861      $ 329,754      $ 1,165,332      $ 971,624   

Realized gain (loss) on investments

     (161,597 )      237,622        600,394        1,145,109        2,356,957        3,858,805        3,129,919        2,723,214   

Change in unrealized gain (loss) on investments

     152,204        (624,227 )      (1,472,583 )      (600,505 )      (4,929,014 )      (2,255,213 )      (1,337,403 )      (3,182,137 ) 

Reinvested capital gains

     17,138        277,161        571,554        317,434        1,733,837        917,522        753,330        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     6,516        (112,643 )      (72,886 )      1,018,928        (284,359 )      2,850,868        3,711,178        512,701   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     158,203        251,407        334,527        392,472        2,262,626        2,020,968        2,525,979        2,111,605   

Transfers between funds

     (837,747 )      (283,240 )      827,531        (835,842 )      10,197,209        (4,250,767 )      12,401,044        3,962,787   

Surrenders (note 6)

     (35,937 )      (82,639 )      (811,033 )      (648,349 )      (3,106,364 )      (1,614,621 )      (3,251,179 )      (1,939,471 ) 

Death Benefits (note 4)

     (8,714 )      -            (80,274 )      (2,328 )      (300,145 )      (56,909 )      (159,584 )      (163,188 ) 

Net policy repayments (loans) (note 5)

     (6,582 )      (803,170 )      18,231        (186,313 )      84,318        (33,253 )      (28,603 )      (120,327 ) 

Deductions for surrender charges (note 2d)

     -            -            (308 )      (2,266 )      -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (14,654 )      (30,259 )      (308,692 )      (306,262 )      (433,068 )      (439,050 )      (827,966 )      (666,748 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (14 )      (48 )      (24,111 )      (25,315 )      (5,268 )      (6,784 )      (3,785 )      (3,551 ) 

MSP contracts

     -            -            (1,102 )      (1,078 )      -            -            -            -       

SL contracts or LSFP contracts

     -            -            (7,556 )      (7,559 )      -            -            -            -       

Adjustments to maintain reserves

     6        (20 )      25        (11 )      6        (56 )      (27 )      (103 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (745,439 )      (947,969 )      (52,762 )      (1,622,851 )      8,699,314        (4,380,472 )      10,655,879        3,181,004   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (738,923 )      (1,060,612 )      (125,648 )      (603,923 )      8,414,955        (1,529,604 )      14,367,057        3,693,705   

Contract owners’ equity beginning of period

     1,095,280        2,155,892        10,015,870        10,619,793        27,779,416        29,309,020        60,625,656        56,931,951   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 356,357      $ 1,095,280      $ 9,890,222      $ 10,015,870      $ 36,194,371      $ 27,779,416      $ 74,992,713      $ 60,625,656   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     81,742        148,553        314,764        368,819        1,817,807        2,108,924        2,912,540        2,760,169   

Units purchased

     12,670        35,042        37,529        18,337        840,716        305,222        630,035        388,298   

Units redeemed

     (67,183 )      (101,853 )      (39,171 )      (72,392 )      (262,749 )      (596,339 )      (149,271 )      (235,927 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     27,229        81,742        313,122        314,764        2,395,774        1,817,807        3,393,304        2,912,540   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    MSVFI     MSEM     VKVGR2     MSVMG  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 58,377      $ 47,808      $ 1,855,470      $ 2,119,928      $ 102,500      $ 17,834      $ (25,778 )    $ (29,279 ) 

Realized gain (loss) on investments

     24,278        37,057        (253,777 )      2,955        137,343        35,599        404,517        226,531   

Change in unrealized gain (loss) on investments

     (94,256 )      43,893        (1,929,212 )      (1,338,232 )      (327,136 )      444,934        (2,908,765 )      (1,831,183 ) 

Reinvested capital gains

     -            -            -            297,415        -            -            1,892,001        1,857,615   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (11,601 )      128,758        (327,519 )      1,082,066        (87,293 )      498,367        (638,025 )      223,684   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     111,355        67,373        453,468        259,749        593,798        612,704        124,487        112,088   

Transfers between funds

     6,337        (70,224 )      (4,396,260 )      (134,321 )      330,956        1,027,625        (2,952,517 )      (93,992 ) 

Surrenders (note 6)

     (68,219 )      (52,618 )      (193,165 )      (505,610 )      (226,675 )      (150,937 )      (353,724 )      (239,676 ) 

Death Benefits (note 4)

     (61,594 )      (7,365 )      (15,782 )      (133,129 )      (8,033 )      (8,508 )      (64,622 )      (31,757 ) 

Net policy repayments (loans) (note 5)

     (219 )      (31,014 )      14,255        (36,683 )      (47,412 )      (29,999 )      (22,686 )      (31,681 ) 

Deductions for surrender charges (note 2d)

     (642 )      (47 )      (23 )      (877 )      -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (77,279 )      (72,251 )      (469,537 )      (476,921 )      (81,105 )      (65,030 )      (139,145 )      (153,248 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (7,267 )      (6,833 )      (14,296 )      (16,024 )      (575 )      (430 )      (704 )      (873 ) 

MSP contracts

     (531 )      (528 )      (249 )      (270 )      -            -            -            -       

SL contracts or LSFP contracts

     (651 )      (663 )      (986 )      (1,216 )      -            -            -            -       

Adjustments to maintain reserves

     5        12        (25 )      4        (60 )      (15 )      (59 )      (6 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (98,705 )      (174,158 )      (4,622,600 )      (1,045,298 )      560,894        1,385,410        (3,408,970 )      (439,145 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (110,306 )      (45,400 )      (4,950,119 )      36,768        473,601        1,883,777        (4,046,995 )      (215,461 ) 

Contract owners’ equity beginning of period

     1,718,027        1,763,427        38,169,060        38,132,292        4,797,159        2,913,382        13,267,348        13,482,809   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 1,607,721      $ 1,718,027      $ 33,218,941      $ 38,169,060      $ 5,270,760      $ 4,797,159      $ 9,220,353      $ 13,267,348   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     107,604        119,123        955,142        985,279        421,696        290,891        758,843        785,039   

Units purchased

     9,074        10,972        20,725        20,572        82,705        169,420        33,092        61,867   

Units redeemed

     (15,323 )      (22,491 )      (149,084 )      (50,709 )      (33,270 )      (38,615 )      (230,184 )      (88,063 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     101,355        107,604        826,783        955,142        471,131        421,696        561,751        758,843   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    MSVEG     MSVRE     IDPGI     IDPG  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ (2,889 )    $ (3,269 )    $ 228,173      $ 214,359      $ -          $ -          $ 821      $ -       

Realized gain (loss) on investments

     77,818        170,796        1,866,918        1,092,973        -            -            (41 )      -       

Change in unrealized gain (loss) on investments

     (109,131 )      (183,638 )      (1,665,444 )      3,397,062        -            -            (3,568 )      -       

Reinvested capital gains

     175,597        86,300        -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     141,395        70,189        429,647        4,704,394        -            -            (2,788 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     17,433        171,145        295,882        168,386        23        14        -            -       

Transfers between funds

     47,951        (470,012 )      2,426,423        (673,397 )      -            -            46,968        -       

Surrenders (note 6)

     (39,662 )      (6,575 )      (2,961,280 )      (575,624 )      -            -            -            -       

Death Benefits (note 4)

     (1,287 )      (1,233 )      (166,071 )      -            -            -            -            -       

Net policy repayments (loans) (note 5)

     (6,922 )      (884 )      80,404        (386 )      -            -            -            -       

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (49,153 )      (48,769 )      (200,326 )      (193,611 )      (24 )      (9 )      (1,120 )      -       

Asset charges (note 3):

                

FPVUL & VEL contracts

     (341 )      (156 )      1        -            -            -            (110 )      -       

MSP contracts

     -            -            -            6        -            -            -            -       

SL contracts or LSFP contracts

     -            -            -            -            -            -            -            -       

Adjustments to maintain reserves

     (5 )      (5 )      87        (220 )      (9 )      5        2        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (31,986 )      (356,489 )      (524,880 )      (1,274,846 )      (10 )      10        45,740        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     109,409        (286,300 )      (95,233 )      3,429,548        (10 )      10        42,952        -       

Contract owners’ equity beginning of period

     1,280,698        1,566,998        20,424,278        16,994,730        10        -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 1,390,107      $ 1,280,698      $ 20,329,045      $ 20,424,278      $ -          $ 10      $ 42,952      $ -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     71,574        93,010        417,956        453,779        1        -            -            -       

Units purchased

     5,534        13,571        62,678        16,169        2        2        4,519        -       

Units redeemed

     (7,823 )      (35,007 )      (77,669 )      (51,992 )      (3 )      (1 )      (122 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     69,285        71,574        402,965        417,956        -            1        4,397        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    NCPG     NVBX     NVIX     NVAMV1  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 580      $ 1,140      $ 1,636,597      $ 1,265,653      $ 481,793      $ 240,818      $ 920,371      $ 806,692   

Realized gain (loss) on investments

     (141 )      (4 )      (23,044 )      1,537        (326,095 )      (45,074 )      797,905        1,346,695   

Change in unrealized gain (loss) on investments

     (2,468 )      (1,292 )      (3,064,290 )      (631,757 )      (335,354 )      (1,137,967 )      (8,168,940 )      (1,640,942 ) 

Reinvested capital gains

     -            572        955,281        -            -            -            4,779,006        4,487,169   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (2,029 )      416        (495,456 )      635,433        (179,656 )      (942,223 )      (1,671,658 )      4,999,614   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     1,768        3,976        1,114,871        619,853        722,863        571,085        1,583,758        1,673,150   

Transfers between funds

     3,972        39,526        37,797,410        56,805,606        9,584,491        12,109,268        (455,764 )      (1,074,824 ) 

Surrenders (note 6)

     -            -            (16,111 )      -            (450,369 )      (35,937 )      (2,241,776 )      (2,540,570 ) 

Death Benefits (note 4)

     -            -            -            -            (92,138 )      (3,927 )      (213,106 )      (222,500 ) 

Net policy repayments (loans) (note 5)

     -            -            (33 )      -            (521,234 )      (118,826 )      36,591        (12,393 ) 

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            (1,335 )      (2,756 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (2,442 )      (557 )      (955,872 )      (106,344 )      (286,001 )      (135,283 )      (1,472,017 )      (1,491,071 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (246 )      (45 )      (6,924 )      (532 )      (5,828 )      (3,469 )      (132,092 )      (140,361 ) 

MSP contracts

     -            -            -            -            -            -            (6,096 )      (6,351 ) 

SL contracts or LSFP contracts

     -            -            -            -            -            -            (14,876 )      (15,990 ) 

Adjustments to maintain reserves

     (3 )      3        19        (8 )      (6 )      (20 )      20        6   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     3,049        42,903        37,933,360        57,318,575        8,951,778        12,382,891        (2,916,693 )      (3,833,660 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     1,020        43,319        37,437,904        57,954,008        8,772,122        11,440,668        (4,588,351 )      1,165,954   

Contract owners’ equity beginning of period

     43,319        -            57,954,008        -            11,440,668        -            40,923,361        39,757,407   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 44,339      $ 43,319      $ 95,391,912      $ 57,954,008      $ 20,212,790      $ 11,440,668      $ 36,335,010      $ 40,923,361   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     4,296        -            5,645,631        -            1,245,179        -            1,667,165        1,832,139   

Units purchased

     581        4,356        3,744,487        5,656,095        1,156,774        1,303,181        78,350        86,623   

Units redeemed

     (267 )      (60 )      (95,245 )      (10,464 )      (176,294 )      (58,002 )      (199,165 )      (251,597 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     4,610        4,296        9,294,873        5,645,631        2,225,659        1,245,179        1,546,350        1,667,165   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    GVAAA2     GVABD2     GVAGG2     GVAGR2  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 117,552      $ 75,892      $ 20,782      $ 18,967      $ 50,419      $ 47,202      $ 68,120      $ 42,607   

Realized gain (loss) on investments

     359,686        649,323        11,121        16,804        215,150        459,878        622,304        842,576   

Change in unrealized gain (loss) on investments

     (736,288 )      (349,691 )      (35,615 )      26,171        (564,797 )      (370,537 )      (338,258 )      (144,348 ) 

Reinvested capital gains

     364,806        12,475        638        13,492        699,828        -            250,621        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     105,756        387,999        (3,074 )      75,434        400,600        136,543        602,787        740,835   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     346,026        448,499        96,702        93,187        452,574        322,630        396,791        382,676   

Transfers between funds

     1,138,220        341,263        45,031        21,249        1,290,083        (22,224 )      (252,626 )      (234,904 ) 

Surrenders (note 6)

     (586,368 )      (384,422 )      (74,558 )      (77,170 )      (424,295 )      (319,763 )      (506,271 )      (749,978 ) 

Death Benefits (note 4)

     (80,268 )      (51,129 )      (15,049 )      (995 )      (62,013 )      (6,100 )      (109,468 )      (3,821 ) 

Net policy repayments (loans) (note 5)

     (18,881 )      39,857        10,283        (1,071 )      (42,336 )      (67,103 )      43,577        (268,797 ) 

Deductions for surrender charges (note 2d)

     (163 )      (14,206 )      -            (1,310 )      (259 )      (2,001 )      (1,858 )      (3,835 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (303,689 )      (296,083 )      (97,339 )      (93,880 )      (224,435 )      (221,192 )      (290,375 )      (298,114 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (24,378 )      (24,638 )      (5,061 )      (5,322 )      (21,384 )      (21,009 )      (27,597 )      (27,939 ) 

MSP contracts

     (5,856 )      (5,764 )      (710 )      (747 )      (1,386 )      (1,281 )      (1,999 )      (1,918 ) 

SL contracts or LSFP contracts

     (8,178 )      (7,524 )      (1,651 )      (1,613 )      (3,227 )      (3,144 )      (5,220 )      (5,630 ) 

Adjustments to maintain reserves

     (4 )      (3 )      2        (4 )      3        (9 )      (12 )      5   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     456,461        45,850        (42,350 )      (67,676 )      963,325        (341,196 )      (755,058 )      (1,212,255 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     562,217        433,849        (45,424 )      7,758        1,363,925        (204,653 )      (152,271 )      (471,420 ) 

Contract owners’ equity beginning of period

     8,070,122        7,636,273        1,545,265        1,537,507        6,534,147        6,738,800        9,693,899        10,165,319   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 8,632,339      $ 8,070,122      $ 1,499,841      $ 1,545,265      $ 7,898,072      $ 6,534,147      $ 9,541,628      $ 9,693,899   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     490,736        487,528        117,093        122,305        375,662        394,540        582,797        660,438   

Units purchased

     95,916        53,189        9,353        9,372        87,990        26,992        30,465        43,223   

Units redeemed

     (66,844 )      (49,981 )      (12,532 )      (14,584 )      (37,461 )      (45,870 )      (74,262 )      (120,864 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     519,808        490,736        113,914        117,093        426,191        375,662        539,000        582,797   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    GVAGI2     HIBF     GEM     GIG  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 26,525      $ 25,692      $ 1,110,809      $ 1,225,741      $ 101,484      $ 156,824      $ 85,171      $ 531,200   

Realized gain (loss) on investments

     242,222        160,206        (322,084 )      378,296        (20,731 )      (187,711 )      335,160        1,308,154   

Change in unrealized gain (loss) on investments

     (441,408 )      105,627        (1,573,157 )      (1,117,148 )      (2,228,621 )      (492,917 )      (1,973,168 )      (2,029,710 ) 

Reinvested capital gains

     214,130        29,410        201,950        -            -            -            715,461        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     41,469        320,935        (582,482 )      486,889        (2,147,868 )      (523,804 )      (837,376 )      (190,356 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     109,970        104,926        540,486        446,859        627,076        491,723        866,134        615,217   

Transfers between funds

     (106,808 )      (50,423 )      334,386        4,632,729        (413,298 )      5,859,530        4,286,531        3,586,909   

Surrenders (note 6)

     (255,965 )      (91,070 )      (533,878 )      (757,333 )      (492,012 )      (458,754 )      (1,470,726 )      (903,296 ) 

Death Benefits (note 4)

     (10,513 )      (4,044 )      (246,592 )      (188,353 )      (25,016 )      (36,867 )      (153,795 )      (8,058 ) 

Net policy repayments (loans) (note 5)

     (25,952 )      (28,491 )      8,701        (36,273 )      91,545        (36,821 )      84,695        (35,621 ) 

Deductions for surrender charges (note 2d)

     (1,154 )      (919 )      (613 )      (1,425 )      (1,231 )      (1,143 )      (1,279 )      (86 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (85,008 )      (87,757 )      (612,975 )      (540,562 )      (394,402 )      (351,033 )      (436,243 )      (343,312 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (7,830 )      (8,310 )      (38,021 )      (32,183 )      (25,380 )      (22,595 )      (30,393 )      (26,008 ) 

MSP contracts

     (1,385 )      (1,441 )      (2,034 )      (1,759 )      (5,878 )      (4,556 )      (1,429 )      (1,184 ) 

SL contracts or LSFP contracts

     (1,640 )      (1,620 )      (7,017 )      (5,492 )      (4,045 )      (3,026 )      (3,910 )      (3,182 ) 

Adjustments to maintain reserves

     7        (2 )      (33 )      8        (124 )      (30 )      (40 )      32   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (386,278 )      (169,151 )      (557,590 )      3,516,216        (642,765 )      5,436,428        3,139,545        2,881,411   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (344,809 )      151,784        (1,140,072 )      4,003,105        (2,790,633 )      4,912,624        2,302,169        2,691,055   

Contract owners’ equity beginning of period

     3,335,091        3,183,307        21,289,529        17,286,424        14,127,165        9,214,541        15,746,265        13,055,210   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 2,990,282      $ 3,335,091      $ 20,149,457      $ 21,289,529      $ 11,336,532      $ 14,127,165      $ 18,048,434      $ 15,746,265   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     223,749        235,408        816,154        679,469        557,428        347,886        960,722        796,673   

Units purchased

     9,549        9,158        104,690        561,367        38,459        384,334        310,041        636,624   

Units redeemed

     (34,839 )      (20,817 )      (128,738 )      (424,682 )      (63,039 )      (174,792 )      (134,871 )      (472,575 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     198,459        223,749        792,106        816,154        532,848        557,428        1,135,892        960,722   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    NVIE6     NVNMO1     NVNSR1     NVCRA1  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 575      $ 10,101      $ 121,719      $ 151,018      $ 2,461      $ 3,042      $ 94,921      $ 86,482   

Realized gain (loss) on investments

     12,875        6,374        421,357        564,758        7,480        206,595        262,450        235,539   

Change in unrealized gain (loss) on investments

     (27,123 )      (18,097 )      (2,058,459 )      (2,305,020 )      (60,802 )      (159,138 )      (659,139 )      (343,408 ) 

Reinvested capital gains

     8,061        -            1,364,862        2,663,751        51,609        -            265,482        177,391   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (5,612 )      (1,622 )      (150,521 )      1,074,507        748        50,499        (36,286 )      156,004   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     -            -            573,152        606,648        14,989        18,425        899,864        1,013,156   

Transfers between funds

     (30,070 )      (9,207 )      (353,784 )      (597,451 )      (38,898 )      (449,784 )      (567,694 )      245,583   

Surrenders (note 6)

     (369 )      (4,392 )      (1,137,217 )      (697,078 )      (28,912 )      (65,057 )      (152,826 )      (298,974 ) 

Death Benefits (note 4)

     -            -            (261,990 )      (132,461 )      (305 )      -            (10,401 )      (9,501 ) 

Net policy repayments (loans) (note 5)

     (8,875 )      (73 )      225,402        34,911        (3,598 )      (135,492 )      (489,258 )      (288,511 ) 

Deductions for surrender charges (note 2d)

     -            (32 )      (167 )      (132 )      (33 )      -            (61 )      (464 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (5,605 )      (6,157 )      (644,929 )      (654,791 )      (14,193 )      (23,035 )      (197,084 )      (185,761 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (395 )      (489 )      (51,966 )      (57,158 )      (958 )      (1,343 )      (10,040 )      (10,774 ) 

MSP contracts

     -            -            (1,777 )      (1,882 )      (28 )      (27 )      (246 )      (241 ) 

SL contracts or LSFP contracts

     (747 )      (849 )      (3,717 )      (4,559 )      (181 )      (645 )      (89 )      (30 ) 

Adjustments to maintain reserves

     -            (4 )      3        (9 )      (2 )      (5 )      8        6   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (46,061 )      (21,203 )      (1,656,990 )      (1,503,962 )      (72,119 )      (656,963 )      (527,827 )      464,489   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (51,673 )      (22,825 )      (1,807,511 )      (429,455 )      (71,371 )      (606,464 )      (564,113 )      620,493   

Contract owners’ equity beginning of period

     247,606        270,431        16,793,852        17,223,307        348,823        955,287        4,162,181        3,541,688   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 195,933      $ 247,606      $ 14,986,341      $ 16,793,852      $ 277,452      $ 348,823      $ 3,598,068      $ 4,162,181   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     25,389        27,530        1,156,523        1,264,376        20,963        63,496        294,102        261,976   

Units purchased

     -            25,931        47,165        51,916        1,458        3,686        70,425        96,606   

Units redeemed

     (4,630 )      (28,072 )      (160,378 )      (159,769 )      (5,693 )      (46,219 )      (107,183 )      (64,480 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     20,759        25,389        1,043,310        1,156,523        16,728        20,963        257,344        294,102   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    NVCRB1     NVCCA1     NVCCN1     NVCMD1  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 4,578,317      $ 3,919,302      $ 176,683      $ 172,299      $ 88,221      $ 120,707      $ 212,526      $ 181,666   

Realized gain (loss) on investments

     460,379        604,671        418,112        452,247        (28,414 )      95,343        244,372        80,944   

Change in unrealized gain (loss) on investments

     (13,401,114 )      (1,470,444 )      (994,295 )      (517,837 )      (178,676 )      (191,744 )      (945,306 )      (117,258 ) 

Reinvested capital gains

     6,327,978        4,167,905        374,005        208,736        116,071        152,576        418,690        170,866   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (2,034,440 )      7,221,434        (25,495 )      315,445        (2,798 )      176,882        (69,718 )      316,218   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     1,083,952        1,592,373        1,135,786        1,478,971        824,546        1,077,950        526,365        1,074,902   

Transfers between funds

     1,602,695        1,033,112        (1,082,452 )      (846,910 )      (1,131,364 )      136,657        (19,785 )      180,840   

Surrenders (note 6)

     (36,728 )      (4,163 )      (155,433 )      (31,658 )      (326,280 )      (153,112 )      (444,109 )      (150,493 ) 

Death Benefits (note 4)

     (42,177 )      (707,942 )      (154,515 )      (8,083 )      (32,074 )      (4,041 )      (214,516 )      (20,221 ) 

Net policy repayments (loans) (note 5)

     (807,557 )      (372,307 )      (709,251 )      (316,109 )      (462,179 )      (42,255 )      (405 )      111,603   

Deductions for surrender charges (note 2d)

     (12 )      -            (13 )      -            -            (6,033 )      (622 )      -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (1,846,915 )      (1,635,982 )      (282,398 )      (283,012 )      (225,824 )      (216,899 )      (317,909 )      (320,137 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (17,852 )      (14,733 )      (16,233 )      (19,698 )      (10,925 )      (12,745 )      (16,496 )      (16,876 ) 

MSP contracts

     (331 )      (327 )      (458 )      (447 )      (327 )      (545 )      (2,678 )      (1,662 ) 

SL contracts or LSFP contracts

     (854 )      (864 )      (1,112 )      (1,497 )      (203 )      (245 )      (5,569 )      (5,531 ) 

Adjustments to maintain reserves

     (13 )      (16 )      15        1        8        (6 )      (9 )      (14 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (65,792 )      (110,849 )      (1,266,064 )      (28,442 )      (1,364,622 )      778,726        (495,733 )      852,411   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (2,100,232 )      7,110,585        (1,291,559 )      287,003        (1,367,420 )      955,608        (565,451 )      1,168,629   

Contract owners’ equity beginning of period

     172,735,321        165,624,736        7,154,710        6,867,707        5,500,415        4,544,807        7,424,847        6,256,218   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 170,635,089      $ 172,735,321      $ 5,863,151      $ 7,154,710      $ 4,132,995      $ 5,500,415      $ 6,859,396      $ 7,424,847   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     10,224,638        10,209,139        502,308        505,936        418,416        357,466        527,052        465,232   

Units purchased

     205,282        206,435        88,126        118,352        73,080        126,520        55,092        147,028   

Units redeemed

     (196,972 )      (190,936 )      (176,786 )      (121,980 )      (175,710 )      (65,570 )      (92,036 )      (85,208 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     10,232,948        10,224,638        413,648        502,308        315,786        418,416        490,108        527,052   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    NVCMA1     NVCMC1     NVCBD1     NVLCP1  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 227,043      $ 176,852      $ 125,903      $ 90,189      $ 31,119      $ 27,682      $ 45,283      $ 57,910   

Realized gain (loss) on investments

     157,741        281,263        52,192        110,618        (20,738 )      (10,997 )      11,348        (5,830 ) 

Change in unrealized gain (loss) on investments

     (1,211,324 )      (745,384 )      (445,501 )      (154,284 )      (34,232 )      23,730        (85,502 )      56,522   

Reinvested capital gains

     704,360        572,239        187,946        95,015        6,921        -            21,321        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (122,180 )      284,970        (79,460 )      141,538        (16,930 )      40,415        (7,550 )      108,602   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     411,082        504,027        452,583        816,784        16,183        40,421        93,526        42,491   

Transfers between funds

     (3,579 )      (446,534 )      1,413,325        47,178        135,342        123,799        172,711        1,532,872   

Surrenders (note 6)

     (423,643 )      (288,093 )      (67,197 )      (4,494 )      (60,202 )      (34,166 )      (224,008 )      (73,847 ) 

Death Benefits (note 4)

     -            (65,732 )      (89,692 )      (8,465 )      (935 )      (3,670 )      (250 )      (3,468 ) 

Net policy repayments (loans) (note 5)

     (203,684 )      63,452        (344,348 )      (116,613 )      (55,182 )      (11,792 )      5,816        (33,930 ) 

Deductions for surrender charges (note 2d)

     (631 )      (496 )      -            (33 )      -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (196,076 )      (191,484 )      (192,694 )      (163,018 )      (27,905 )      (20,621 )      (81,522 )      (74,872 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (19,012 )      (19,154 )      (8,780 )      (7,201 )      (2,127 )      (1,966 )      (2,354 )      (2,677 ) 

MSP contracts

     (4,185 )      (4,120 )      (1,668 )      (2,062 )      (67 )      (71 )      (26 )      (26 ) 

SL contracts or LSFP contracts

     (5,802 )      (5,345 )      (164 )      (166 )      (1,626 )      (1,230 )      (2,784 )      (2,444 ) 

Adjustments to maintain reserves

     9        (16 )      (7 )      4        (1 )      1        3        (1 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (445,521 )      (453,495 )      1,161,358        561,914        3,480        90,705        (38,888 )      1,384,098   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (567,701 )      (168,525 )      1,081,898        703,452        (13,450 )      131,120        (46,438 )      1,492,700   

Contract owners’ equity beginning of period

     7,122,373        7,290,898        3,837,479        3,134,027        990,731        859,611        2,457,106        964,406   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 6,554,672      $ 7,122,373      $ 4,919,377      $ 3,837,479      $ 977,281      $ 990,731      $ 2,410,668      $ 2,457,106   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     500,786        539,732        274,907        234,164        72,271        65,876        165,785        68,382   

Units purchased

     63,245        58,639        140,086        79,259        11,010        23,340        20,514        111,065   

Units redeemed

     (98,564 )      (97,585 )      (58,217 )      (38,516 )      (11,474 )      (16,945 )      (23,129 )      (13,662 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     465,467        500,786        356,776        274,907        71,807        72,271        163,170        165,785   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    TRF     GBF     CAF     GVIX2  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 1,456,800      $ 1,200,164      $ 916,467      $ 1,208,221      $ 57,511      $ 56,798      $ 69,549      $ 183,238   

Realized gain (loss) on investments

     1,961,336        1,218,553        (1,147,822 )      (2,603,576 )      970,194        894,053        (14,940 )      1,549,338   

Change in unrealized gain (loss) on investments

     (2,665,260 )      10,195,924        198,899        4,554,110        (2,302,463 )      848,874        (84,619 )      (1,707,618 ) 

Reinvested capital gains

     -            -            -            -            2,060,769        -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     752,876        12,614,641        (32,456 )      3,158,755        786,011        1,799,725        (30,010 )      24,958   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     2,543,833        2,532,158        1,991,739        1,573,862        1,009,699        1,022,879        107,941        310,543   

Transfers between funds

     11,702,763        7,382,732        (4,379,357 )      (22,909,144 )      107,219        (195,869 )      (80,351 )      (6,830,214 ) 

Surrenders (note 6)

     (1,805,220 )      (2,086,513 )      (3,050,632 )      (2,013,123 )      (1,178,466 )      (1,134,214 )      (59,669 )      (116,291 ) 

Death Benefits (note 4)

     (341,999 )      (550,209 )      (318,555 )      (1,007,774 )      (195,232 )      (94,292 )      (14 )      (6,600 ) 

Net policy repayments (loans) (note 5)

     (199,155 )      134,290        326,008        (5,406 )      128,526        32,856        189        (12,977 ) 

Deductions for surrender charges (note 2d)

     (2,099 )      (2,466 )      (2,798 )      (695 )      (9 )      (203 )      -            (1,301 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (3,003,297 )      (2,804,038 )      (3,045,781 )      (3,071,890 )      (941,753 )      (931,332 )      (43,659 )      (111,663 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (160,819 )      (165,262 )      (76,862 )      (82,232 )      (65,942 )      (68,109 )      (2,455 )      (4,064 ) 

MSP contracts

     (9,162 )      (9,217 )      (6,866 )      (7,511 )      (1,854 )      (1,841 )      (93 )      (45 ) 

SL contracts or LSFP contracts

     (7,793 )      (7,731 )      (15,067 )      (15,585 )      (3,198 )      (3,201 )      (2,546 )      (1,664 ) 

Adjustments to maintain reserves

     101        1,961        (71 )      (15 )      (21 )      (10 )      (3 )      8   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     8,717,153        4,425,705        (8,578,242 )      (27,539,513 )      (1,141,031 )      (1,373,336 )      (80,660 )      (6,774,268 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     9,470,029        17,040,346        (8,610,698 )      (24,380,758 )      (355,020 )      426,389        (110,670 )      (6,749,310 ) 

Contract owners’ equity beginning of period

     113,397,553        96,357,207        63,730,810        88,111,568        17,014,563        16,588,174        3,430,319        10,179,629   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 122,867,582      $ 113,397,553      $ 55,120,112      $ 63,730,810      $ 16,659,543      $ 17,014,563      $ 3,319,649      $ 3,430,319   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     5,535,091        5,235,424        3,237,960        4,678,416        1,099,344        1,193,249        368,560        1,031,670   

Units purchased

     748,764        584,530        165,009        126,964        85,331        78,969        26,256        310,114   

Units redeemed

     (282,818 )      (284,863 )      (606,191 )      (1,567,420 )      (155,633 )      (172,874 )      (33,694 )      (973,224 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     6,001,037        5,535,091        2,796,778        3,237,960        1,029,042        1,099,344        361,122        368,560   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    GVIDA     NVDBL2     NVDCA2     GVIDC  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 315,033      $ 397,889      $ 26,096      $ 33,429      $ 11,651      $ 11,039      $ 172,036      $ 197,349   

Realized gain (loss) on investments

     1,672,651        3,350,387        99,252        47,171        14,466        18,725        45,800        104,948   

Change in unrealized gain (loss) on investments

     (2,196,869 )      (2,469,109 )      (178,091 )      (4,838 )      (58,470 )      (12,386 )      (519,493 )      (234,771 ) 

Reinvested capital gains

     -            -            40,642        7,644        26,565        9,215        330,282        335,347   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (209,185 )      1,279,167        (12,101 )      83,406        (5,788 )      26,593        28,625        402,873   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     1,182,035        1,396,138        37,179        33,336        42,295        49,431        389,859        517,171   

Transfers between funds

     (1,448,865 )      (1,893,581 )      187,614        213,193        89,755        330,380        29,001        369,056   

Surrenders (note 6)

     (1,185,905 )      (2,782,342 )      (618,219 )      (15,101 )      (38,186 )      (28,815 )      (701,864 )      (935,570 ) 

Death Benefits (note 4)

     (3,560 )      (208,320 )      -            -            -            -            (114,764 )      (48,044 ) 

Net policy repayments (loans) (note 5)

     (39,343 )      (36,351 )      20,983        (26,231 )      4,194        12,041        51,174        276,313   

Deductions for surrender charges (note 2d)

     (4,390 )      (19,565 )      (52 )      (324 )      -            (340 )      (5,625 )      (476 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (795,573 )      (845,459 )      (62,846 )      (59,180 )      (30,835 )      (22,212 )      (360,042 )      (411,191 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (70,388 )      (74,240 )      (4,584 )      (4,413 )      (2,987 )      (2,332 )      (19,674 )      (22,626 ) 

MSP contracts

     (5,063 )      (5,214 )      -            -            (15 )      (15 )      (6,622 )      (6,694 ) 

SL contracts or LSFP contracts

     (5,661 )      (6,989 )      (865 )      (1,246 )      (24 )      (25 )      (1,823 )      (2,924 ) 

Adjustments to maintain reserves

     (28 )      109        (2 )      (2 )      (6 )      (10 )      6        (1 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (2,376,741 )      (4,475,814 )      (440,792 )      140,032        64,191        338,103        (740,374 )      (264,986 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (2,585,926 )      (3,196,647 )      (452,893 )      223,438        58,403        364,696        (711,749 )      137,887   

Contract owners’ equity beginning of period

     24,498,323        27,694,970        1,967,463        1,744,025        665,918        301,222        10,974,987        10,837,100   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 21,912,397      $ 24,498,323      $ 1,514,570      $ 1,967,463      $ 724,321      $ 665,918      $ 10,263,238      $ 10,974,987   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,073,873        1,274,214        117,578        109,004        34,838        16,580        658,975        675,196   

Units purchased

     85,082        74,814        14,275        17,920        7,345        21,049        125,765        96,419   

Units redeemed

     (189,204 )      (275,155 )      (41,183 )      (9,346 )      (4,087 )      (2,791 )      (168,137 )      (112,640 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     969,751        1,073,873        90,670        117,578        38,096        34,838        616,603        658,975   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    GVIDM     GVDMA     GVDMC     MCIF  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 1,053,712      $ 1,171,957      $ 1,233,878      $ 1,425,032      $ 264,360      $ 294,639      $ 888,237      $ 740,511   

Realized gain (loss) on investments

     4,105,563        2,901,232        837,951        42,660        605,046        593,906        4,293,344        5,556,452   

Change in unrealized gain (loss) on investments

     (7,970,940 )      (489,962 )      (4,178,965 )      2,507,673        (1,663,219 )      (445,026 )      (13,288,336 )      (3,502,944 ) 

Reinvested capital gains

     2,652,853        -            1,569,710        -            805,499        304,000        5,707,304        4,079,802   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (158,812 )      3,583,227        (537,426 )      3,975,365        11,686        747,519        (2,399,451 )      6,873,821   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     2,430,844        2,950,087        6,024,829        5,784,771        717,662        586,718        3,666,024        3,213,699   

Transfers between funds

     522,311        (642,279 )      (1,692,464 )      7,208,869        (422,366 )      (63,703 )      11,500,240        451,768   

Surrenders (note 6)

     (5,435,234 )      (5,447,775 )      (4,350,324 )      (6,467,500 )      (609,927 )      (562,428 )      (4,240,818 )      (3,010,900 ) 

Death Benefits (note 4)

     (502,638 )      (329,686 )      (336,241 )      (194,538 )      (174,084 )      (24,388 )      (355,217 )      (791,800 ) 

Net policy repayments (loans) (note 5)

     135,400        312,590        237,276        (232,648 )      (10,694 )      (93,198 )      (374,216 )      (256,553 ) 

Deductions for surrender charges (note 2d)

     (5,828 )      (13,252 )      (12,072 )      (62,274 )      (5 )      (4,276 )      (746 )      (2,190 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (2,797,303 )      (2,848,441 )      (2,923,391 )      (2,865,014 )      (599,664 )      (607,131 )      (1,818,123 )      (1,648,662 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (180,153 )      (191,799 )      (245,877 )      (257,486 )      (37,143 )      (38,432 )      (108,817 )      (107,450 ) 

MSP contracts

     (35,215 )      (36,071 )      (19,501 )      (20,811 )      (18,148 )      (18,679 )      (1,654 )      (1,767 ) 

SL contracts or LSFP contracts

     (26,048 )      (26,739 )      (37,790 )      (37,523 )      (5,812 )      (5,970 )      (10,384 )      (11,043 ) 

Adjustments to maintain reserves

     (12 )      32        (5 )      54        12        28        (7 )      (93 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (5,893,876 )      (6,273,333 )      (3,355,560 )      2,855,900        (1,160,169 )      (831,459 )      8,256,282        (2,164,991 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (6,052,688 )      (2,690,106 )      (3,892,986 )      6,831,265        (1,148,483 )      (83,940 )      5,856,831        4,708,830   

Contract owners’ equity beginning of period

     70,012,770        72,702,876        86,486,411        79,655,146        16,724,811        16,808,751        80,705,813        75,996,983   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 63,960,082      $ 70,012,770      $ 82,593,425      $ 86,486,411      $ 15,576,328      $ 16,724,811      $ 86,562,644      $ 80,705,813   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     3,422,115        3,736,779        3,927,295        3,786,951        883,442        929,870        2,088,515        2,137,602   

Units purchased

     270,463        207,936        322,852        641,167        44,055        71,066        403,167        158,183   

Units redeemed

     (554,425 )      (522,600 )      (466,988 )      (500,823 )      (104,530 )      (117,494 )      (184,658 )      (207,270 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     3,138,153        3,422,115        3,783,159        3,927,295        822,967        883,442        2,307,024        2,088,515   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    SAM     SAM5     NVMIG1     GVDIVI  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ (951 )    $ (15,321 )    $ (333,343 )    $ (436,405 )    $ 116,752      $ 179,215      $ 63,174      $ 117,613   

Realized gain (loss) on investments

     -            -            -            -            (112,543 )      (4,042 )      (96,999 )      (162,801 ) 

Change in unrealized gain (loss) on investments

     -            -            -            -            (1,031,137 )      (1,379,414 )      (245,562 )      (471,896 ) 

Reinvested capital gains

     -            -            -            -            962,551        880,947        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (951 )      (15,321 )      (333,343 )      (436,405 )      (64,377 )      (323,294 )      (279,387 )      (517,084 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     5,346,776        5,949,828        67,241,278        68,155,813        746,673        512,250        233,764        172,581   

Transfers between funds

     909,202        5,710,270        (32,166,590 )      (38,953,656 )      401,483        17,055,281        (157,266 )      5,400,589   

Surrenders (note 6)

     (11,176,309 )      (15,546,623 )      (26,353,554 )      (77,232,110 )      (896,212 )      (495,883 )      (306,186 )      (185,689 ) 

Death Benefits (note 4)

     (501,489 )      (2,650,498 )      (411,633 )      (338,905 )      (84,422 )      (83,088 )      (22,219 )      (18,868 ) 

Net policy repayments (loans) (note 5)

     1,334,668        3,214,577        (1,835,385 )      1,601,197        91,200        (35,665 )      54,609        (30,477 ) 

Deductions for surrender charges (note 2d)

     (9,915 )      (104,085 )      -            -            (62 )      (175 )      (1,563 )      (787 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (4,462,252 )      (4,767,631 )      (3,351,867 )      (5,594,705 )      (731,684 )      (508,205 )      (188,960 )      (141,134 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (211,979 )      (235,963 )      (44,848 )      (44,661 )      (53,191 )      (39,503 )      (17,670 )      (13,815 ) 

MSP contracts

     (10,074 )      (13,195 )      -            -            (2,519 )      (1,768 )      (255 )      (214 ) 

SL contracts or LSFP contracts

     (35,886 )      (40,520 )      -            -            (5,183 )      (3,564 )      (2,631 )      (1,904 ) 

Adjustments to maintain reserves

     8        (211 )      (1,103 )      (707 )      (6 )      (3 )      10        (6 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (8,817,250 )      (8,484,051 )      3,076,298        (52,407,734 )      (533,923 )      16,399,677        (408,367 )      5,180,276   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (8,818,201 )      (8,499,372 )      2,742,955        (52,844,139 )      (598,300 )      16,076,383        (687,754 )      4,663,192   

Contract owners’ equity beginning of period

     56,025,296        64,524,668        166,552,415        219,396,554        16,076,383        -            5,344,914        681,722   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 47,207,095      $ 56,025,296      $ 169,295,370      $ 166,552,415      $ 15,478,083      $ 16,076,383      $ 4,657,160      $ 5,344,914   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     4,000,593        4,607,576        14,550,861        19,129,974        1,641,194        -            281,697        32,529   

Units purchased

     864,203        907,444        6,401,667        6,246,930        132,384        1,764,626        18,355        300,392   

Units redeemed

     (1,557,932 )      (1,514,427 )      (6,143,996 )      (10,826,043 )      (185,668 )      (123,432 )      (41,361 )      (51,224 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     3,306,864        4,000,593        14,808,532        14,550,861        1,587,910        1,641,194        258,691        281,697   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    NVMLG1     NVMLV1     NVMMG1     NVMMV1  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 54,076      $ 56,064      $ 195,620      $ 96,746      $ (2,668 )    $ (198 )    $ 13,094      $ 11,715   

Realized gain (loss) on investments

     526,118        521,601        380,083        317,657        1,304,061        1,924,525        (67,180 )      7,215   

Change in unrealized gain (loss) on investments

     (1,170,396 )      (263,944 )      (1,926,947 )      (402,869 )      (6,571,225 )      (4,727,274 )      (92,666 )      (45,369 ) 

Reinvested capital gains

     981,251        845,125        766,122        753,267        5,086,876        4,135,968        113,872        77,864   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     391,049        1,158,846        (585,122 )      764,801        (182,956 )      1,333,021        (32,880 )      51,425   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     534,999        497,980        350,616        316,738        1,435,563        1,446,168        2,906        2,942   

Transfers between funds

     234,727        (267,357 )      9,700,006        304,216        11,788,545        (1,032,898 )      320,163        773,273   

Surrenders (note 6)

     (748,598 )      (747,401 )      (537,531 )      (646,329 )      (1,867,173 )      (1,791,851 )      (83,737 )      -       

Death Benefits (note 4)

     (199,197 )      (22,235 )      (18,410 )      (13,671 )      (235,813 )      (167,409 )      (12,996 )      (34,387 ) 

Net policy repayments (loans) (note 5)

     (45,548 )      (60,431 )      3,882        (47,617 )      (82,605 )      (125,814 )      (14,886 )      (108 ) 

Deductions for surrender charges (note 2d)

     (1,373 )      (1,417 )      (346 )      (1,839 )      (2,546 )      (1,459 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (456,637 )      (450,355 )      (276,744 )      (282,139 )      (1,498,472 )      (1,444,222 )      (30,690 )      (13,020 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (40,503 )      (40,468 )      (24,081 )      (25,943 )      (126,042 )      (127,368 )      (762 )      (225 ) 

MSP contracts

     (1,391 )      (1,441 )      (521 )      (502 )      (3,367 )      (3,457 )      -            -       

SL contracts or LSFP contracts

     (4,787 )      (4,746 )      (2,267 )      (2,901 )      (10,667 )      (10,096 )      -            -       

Adjustments to maintain reserves

     -            52        (42 )      3        (21 )      15        32        (13 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (728,308 )      (1,097,819 )      9,194,562        (399,984 )      9,397,402        (3,258,391 )      180,030        728,462   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (337,259 )      61,027        8,609,440        364,817        9,214,446        (1,925,370 )      147,150        779,887   

Contract owners’ equity beginning of period

     11,927,494        11,866,467        7,832,611        7,467,794        34,718,009        36,643,379        915,950        136,063   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 11,590,235      $ 11,927,494      $ 16,442,051      $ 7,832,611      $ 43,932,455      $ 34,718,009      $ 1,063,100      $ 915,950   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     744,288        817,723        509,471        537,399        2,156,480        2,367,293        48,124        8,378   

Units purchased

     52,437        41,540        618,150        34,669        831,787        150,159        16,738        42,831   

Units redeemed

     (97,349 )      (114,975 )      (100,460 )      (62,597 )      (249,318 )      (360,972 )      (7,423 )      (3,085 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     699,376        744,288        1,027,161        509,471        2,738,949        2,156,480        57,439        48,124   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    NVMMV2     SCGF     SCVF     SCF  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 159,266      $ 196,599      $ (6,404 )    $ (5,532 )    $ 269,779      $ 191,100      $ 127,982      $ 31,940   

Realized gain (loss) on investments

     907,384        663,126        1,371,082        993,741        1,255,158        3,193,137        3,315,212        7,970,575   

Change in unrealized gain (loss) on investments

     (2,935,360 )      (1,866,716 )      (3,157,385 )      (2,657,653 )      (7,772,252 )      (4,239,147 )      (8,582,517 )      (15,184,198 ) 

Reinvested capital gains

     1,496,109        3,178,359        1,895,359        2,037,109        3,832,274        3,638,018        4,454,708        7,427,497   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (372,601 )      2,171,368        102,652        367,665        (2,415,041 )      2,783,108        (684,615 )      245,814   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     439,334        418,028        591,873        652,216        1,282,070        1,302,443        1,112,983        1,271,649   

Transfers between funds

     (802,281 )      1,154,118        3,323,383        128,356        3,289,114        (3,498,324 )      (1,844,806 )      (6,341,525 ) 

Surrenders (note 6)

     (1,116,013 )      (887,744 )      (1,133,748 )      (820,168 )      (1,515,365 )      (1,960,745 )      (1,597,252 )      (2,207,878 ) 

Death Benefits (note 4)

     (192,820 )      (131,819 )      (185,956 )      (125,887 )      (232,030 )      (315,085 )      (329,640 )      (390,954 ) 

Net policy repayments (loans) (note 5)

     24,364        (38,342 )      (92,310 )      35,647        (89,130 )      (64,798 )      84,911        (13,869 ) 

Deductions for surrender charges (note 2d)

     -            (273 )      (1,180 )      (2,740 )      (1,857 )      (1,034 )      (946 )      (3,796 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (510,732 )      (472,575 )      (508,652 )      (483,393 )      (1,277,926 )      (1,293,913 )      (1,352,568 )      (1,439,927 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (45,864 )      (45,370 )      (40,457 )      (40,270 )      (105,687 )      (114,109 )      (102,346 )      (110,406 ) 

MSP contracts

     (1,473 )      (1,678 )      (1,273 )      (1,267 )      (3,576 )      (3,728 )      (3,183 )      (3,210 ) 

SL contracts or LSFP contracts

     (7,586 )      (6,871 )      (2,780 )      (2,735 )      (6,798 )      (7,067 )      (10,084 )      (10,294 ) 

Adjustments to maintain reserves

     8        1        5        22        52        (4 )      (73 )      115   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (2,213,063 )      (12,525 )      1,948,905        (660,219 )      1,338,867        (5,956,364 )      (4,043,004 )      (9,250,095 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (2,585,664 )      2,158,843        2,051,557        (292,554 )      (1,076,174 )      (3,173,256 )      (4,727,619 )      (9,004,281 ) 

Contract owners’ equity beginning of period

     15,199,545        13,040,702        14,983,770        15,276,324        39,613,189        42,786,445        45,885,752        54,890,033   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 12,613,881      $ 15,199,545      $ 17,035,327      $ 14,983,770      $ 38,537,015      $ 39,613,189      $ 41,158,133      $ 45,885,752   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     798,637        801,822        552,233        578,414        839,625        982,222        1,262,236        1,549,110   

Units purchased

     34,424        85,380        154,914        52,355        111,471        44,053        36,468        65,346   

Units redeemed

     (150,592 )      (88,565 )      (82,173 )      (78,536 )      (88,965 )      (186,650 )      (142,571 )      (352,220 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     682,469        798,637        624,974        552,233        862,131        839,625        1,156,133        1,262,236   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    MSBF     NVSTB1     NVSTB2     NVOLG1  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 234,463      $ 356,005      $ 253,975      $ 236,351      $ 26,477      $ 18,322      $ 817,039      $ 946,776   

Realized gain (loss) on investments

     82,367        174,953        (109,093 )      (10,197 )      (1,620 )      4,357        3,923,741        5,151,205   

Change in unrealized gain (loss) on investments

     (656,344 )      (108,645 )      (115,239 )      11,379        (32,287 )      (13,312 )      (17,835,435 )      (8,774,176 ) 

Reinvested capital gains

     -            -            -            -            -            -            19,631,603        13,853,078   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (339,514 )      422,313        29,643        237,533        (7,430 )      9,367        6,536,948        11,176,883   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     377,819        381,144        363,005        9,607        48,766        54,777        4,927,225        5,366,643   

Transfers between funds

     143,984        147,227        (5,571,752 )      (10,141,976 )      (252,035 )      72,207        (2,285,047 )      (4,325,472 ) 

Surrenders (note 6)

     (393,961 )      (434,239 )      (4,748,995 )      -            (29,513 )      (51,774 )      (7,669,159 )      (7,630,879 ) 

Death Benefits (note 4)

     (280,450 )      (95,955 )      (147,154 )      -            (40,756 )      (12,195 )      (1,042,310 )      (592,178 ) 

Net policy repayments (loans) (note 5)

     93,039        (147,955 )      (11,988 )      (4,008 )      (3,331 )      842        120,067        (496,035 ) 

Deductions for surrender charges (note 2d)

     (20 )      (119 )      -            -            (137 )      -            (8,204 )      (10,216 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (389,091 )      (381,732 )      (275,410 )      (411,680 )      (44,887 )      (46,112 )      (5,310,497 )      (5,323,002 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (25,494 )      (27,007 )      (88 )      (81 )      (3,558 )      (3,180 )      (469,624 )      (487,125 ) 

MSP contracts

     (1,580 )      (1,628 )      -            -            (414 )      (439 )      (17,774 )      (17,454 ) 

SL contracts or LSFP contracts

     (4,330 )      (4,784 )      -            -            (1,082 )      (2,426 )      (46,723 )      (48,710 ) 

Adjustments to maintain reserves

     (11 )      (15 )      (9 )      (83 )      (5 )      3        (8 )      (17 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (480,095 )      (565,063 )      (10,392,391 )      (10,548,221 )      (326,952 )      11,703        (11,802,054 )      (13,564,445 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (819,609 )      (142,750 )      (10,362,748 )      (10,310,688 )      (334,382 )      21,070        (5,265,106 )      (2,387,562 ) 

Contract owners’ equity beginning of period

     11,552,062        11,694,812        25,333,573        35,644,261        1,894,382        1,873,312        132,440,260        134,827,822   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 10,732,453      $ 11,552,062      $ 14,970,825      $ 25,333,573      $ 1,560,000      $ 1,894,382      $ 127,175,154      $ 132,440,260   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     514,344        538,896        2,190,544        3,094,731        164,622        163,595        5,400,878        5,982,076   

Units purchased

     59,099        41,125        387,001        64,953        44,984        13,411        240,832        277,803   

Units redeemed

     (78,828 )      (65,677 )      (1,275,135 )      (969,140 )      (73,578 )      (12,384 )      (706,866 )      (859,001 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     494,615        514,344        1,302,410        2,190,544        136,028        164,622        4,934,844        5,400,878   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    NVTIV3     EIF     NVRE1     NVLCAP  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 13,507      $ 18,268      $ 177,517      $ 211,750      $ 937,207      $ 1,032,560      $ 779      $ 454   

Realized gain (loss) on investments

     18,772        16,612        518,363        339,078        60,266        1,270,084        (55 )      403   

Change in unrealized gain (loss) on investments

     (100,572 )      (101,576 )      (1,429,961 )      511,336        (8,475,822 )      (2,123,562 )      (3,018 )      (787 ) 

Reinvested capital gains

     28,883        21,106        -            -            5,329,680        8,602,715        1,517        802   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (39,410 )      (45,590 )      (734,081 )      1,062,164        (2,148,669 )      8,781,797        (777 )      872   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     68,949        37,593        394,668        424,929        1,524,023        1,466,771        1,291        2,318   

Transfers between funds

     262,187        42,414        (191,463 )      386,305        (2,224,423 )      1,173,264        4,217        22,726   

Surrenders (note 6)

     (13,867 )      (38,298 )      (767,302 )      (656,667 )      (2,689,873 )      (1,295,797 )      -            -       

Death Benefits (note 4)

     -            -            (37,086 )      (156,916 )      (179,833 )      (444,935 )      -            -       

Net policy repayments (loans) (note 5)

     (5,009 )      (44,018 )      14,165        11,170        (47,705 )      76,223        4        5   

Deductions for surrender charges (note 2d)

     (105 )      (110 )      (1,733 )      (910 )      (1,634 )      (4,516 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (21,616 )      (19,255 )      (412,577 )      (423,955 )      (1,204,297 )      (1,141,143 )      (2,132 )      (1,618 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (1,515 )      (1,548 )      (36,164 )      (38,677 )      (93,772 )      (94,748 )      (119 )      (92 ) 

MSP contracts

     -            -            (1,088 )      (1,097 )      (3,447 )      (3,519 )      -            -       

SL contracts or LSFP contracts

     (327 )      (260 )      (4,485 )      (4,770 )      (10,493 )      (10,320 )      -            -       

Adjustments to maintain reserves

     (17 )      1,052        (18 )      13        (8 )      35        (2 )      (4 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     288,680        (22,430 )      (1,043,083 )      (460,575 )      (4,931,462 )      (278,685 )      3,259        23,335   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     249,270        (68,020 )      (1,777,164 )      601,589        (7,080,131 )      8,503,112        2,482        24,207   

Contract owners’ equity beginning of period

     452,505        520,525        12,375,894        11,774,305        39,249,857        30,746,745        25,809        1,602   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 701,775      $ 452,505      $ 10,598,730      $ 12,375,894      $ 32,169,726      $ 39,249,857      $ 28,291      $ 25,809   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     28,263        29,863        536,954        554,935        2,232,004        2,274,473        2,183        140   

Units purchased

     20,244        33,033        24,297        50,789        114,490        191,447        630        2,205   

Units redeemed

     (2,895 )      (34,633 )      (69,470 )      (68,770 )      (412,389 )      (233,916 )      (346 )      (162 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     45,612        28,263        491,781        536,954        1,934,105        2,232,004        2,467        2,183   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

     NVLMP     NVSIX2     GVEX1     NOTB3  
     2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                 

Net investment income (loss)

    $ 115      $ 25      $ 3,277      $ 2,062      $ 62,071      $ 28,126      $ 421      $ -       

Realized gain (loss) on investments

      (18 )      1        (3,141 )      1,528        63,366        51,359        (81 )      -       

Change in unrealized gain (loss) on investments

      (204 )      (23 )      (33,556 )      (6,587 )      (141,305 )      37,399        (3,704 )      -       

Reinvested capital gains

      36        20        20,782        8,393        39,810        -            840        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

      (71 )      23        (12,638 )      5,396        23,942        116,884        (2,524 )      -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      1,100        1,013        21,868        29,517        156,550        84,846        3,091        -       

Transfers between funds

      3,001        1,188        48,551        180,446        1,564,185        1,003,305        35,616        -       

Surrenders (note 6)

      -            -            (492 )      (31,452 )      (32,057 )      (76,611 )      -            -       

Death Benefits (note 4)

      -            -            -            -            -            -            -            -       

Net policy repayments (loans) (note 5)

      -            -            (1,999 )      1,660        (20,501 )      13,847        -            -       

Deductions for surrender charges (note 2d)

      -            -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

      (221 )      (26 )      (7,005 )      (6,511 )      (60,595 )      (18,479 )      (1,580 )      -       

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (10 )      (7 )      (920 )      (758 )      (7,789 )      (2,863 )      (136 )      -       

MSP contracts

      -            -            -            -            -            -            -            -       

SL contracts or LSFP contracts

      -            -            -            -            -            -            -            -       

Adjustments to maintain reserves

      (9 )      3        2        (2 )      5        (1 )      2        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      3,861        2,171        60,005        172,900        1,599,798        1,004,044        36,993        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      3,790        2,194        47,367        178,296        1,623,740        1,120,928        34,469        -       

Contract owners’ equity beginning of period

      2,194        -            243,002        64,706        1,629,554        508,626        -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 5,984      $ 2,194      $ 290,369      $ 243,002      $ 3,253,294      $ 1,629,554      $ 34,469      $ -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      191        -            18,330        5,103        121,451        42,973        -            -       

Units purchased

      469        194        6,530        16,342        129,126        83,596        3,559        -       

Units redeemed

      (130 )      (3 )      (1,833 )      (3,115 )      (10,896 )      (5,118 )      (164 )      -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      530        191        23,027        18,330        239,681        121,451        3,395        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    NOTMG3     ALVGIA     ALVIVA     ALVSVA  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 1      $ 1      $ 302,224      $ 268,499      $ 200,918      $ 313,311      $ 137,656      $ 117,282   

Realized gain (loss) on investments

     (6 )      195        2,802,381        1,506,475        186,636        (68,109 )      596,243        914,367   

Change in unrealized gain (loss) on investments

     (280 )      (160 )      (2,681,596 )      63,603        (204,444 )      (845,738 )      (4,989,028 )      (1,483,561 ) 

Reinvested capital gains

     2        1        -            -            -            -            3,136,679        2,184,267   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (283 )      37        423,009        1,838,577        183,110        (600,536 )      (1,118,450 )      1,732,355   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     96        799        656,682        595,793        51,523        151,521        1,461,610        1,691,002   

Transfers between funds

     11,917        (932 )      (1,044,477 )      7,116,899        (208,364 )      (2,377,659 )      (872,423 )      2,569,262   

Surrenders (note 6)

     -            -            (254,914 )      (587,857 )      (31,396 )      (162,492 )      (833,498 )      (246,756 ) 

Death Benefits (note 4)

     (80 )      (2,619 )      (86,944 )      (45,942 )      (11,255 )      (23,474 )      (91,225 )      (22,916 ) 

Net policy repayments (loans) (note 5)

     -            -            (35,928 )      (91,050 )      (12,116 )      65        22,573        (60,210 ) 

Deductions for surrender charges (note 2d)

     -            -            (76 )      (857 )      -            -            (637 )      (667 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (117 )      (584 )      (380,354 )      (318,406 )      (98,197 )      (126,709 )      (334,411 )      (331,957 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (10 )      (7 )      (11,936 )      (13,034 )      (3,925 )      (4,842 )      (28,268 )      (28,402 ) 

MSP contracts

     -            -            (9 )      (8 )      -            -            (1,487 )      (1,576 ) 

SL contracts or LSFP contracts

     -            -            (1,049 )      (1,243 )      -            -            (1,162 )      (1,801 ) 

Adjustments to maintain reserves

     (7 )      5        15        (10 )      (12 )      (17 )      (34 )      (4 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     11,799        (3,338 )      (1,158,990 )      6,654,285        (313,742 )      (2,543,607 )      (678,962 )      3,565,975   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     11,516        (3,301 )      (735,981 )      8,492,862        (130,632 )      (3,144,143 )      (1,797,412 )      5,298,330   

Contract owners’ equity beginning of period

     110        3,411        23,312,057        14,819,195        8,490,269        11,634,412        20,013,603        14,715,273   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 11,626      $ 110      $ 22,576,076      $ 23,312,057      $ 8,359,637      $ 8,490,269      $ 18,216,191      $ 20,013,603   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     10        320        831,086        575,885        1,020,175        1,306,206        515,175        413,328   

Units purchased

     1,145        76        104,552        297,978        122,212        17,680        57,994        145,406   

Units redeemed

     (20 )      (386 )      (141,454 )      (42,777 )      (161,167 )      (303,711 )      (76,229 )      (43,559 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     1,135        10        794,184        831,086        981,220        1,020,175        496,940        515,175   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    ACVCA     ACVIG     ACVIP2     ACVI  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ (1,383 )    $ (1,724 )    $ 419,678      $ 431,270      $ 241,073      $ 165,181      $ 3,505      $ 55,537   

Realized gain (loss) on investments

     128,696        1,732        851,186        307,053        (639,745 )      (267,212 )      275,464        500,852   

Change in unrealized gain (loss) on investments

     (175,817 )      148,118        (4,205,843 )      1,782,768        123,310        196,472        (294,239 )      (712,911 ) 

Reinvested capital gains

     40,745        -            1,774,328        -            -            311,644        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (7,759 )      148,126        (1,160,651 )      2,521,091        (275,362 )      406,085        (15,270 )      (156,522 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     9,742        55,596        669,433        689,245        269,923        322,061        52,261        28,521   

Transfers between funds

     (974,543 )      1,423,782        (2,996,080 )      1,081,536        (1,391,360 )      (725,636 )      (344,366 )      (1,764,052 ) 

Surrenders (note 6)

     (39,539 )      (767 )      (774,796 )      (1,140,223 )      (1,415,172 )      (555,258 )      (11,288 )      (4,304 ) 

Death Benefits (note 4)

     -            -            (25,954 )      (55,707 )      (60,792 )      (59,832 )      (1,993 )      -       

Net policy repayments (loans) (note 5)

     (4,252 )      (804 )      (30,040 )      (21,803 )      271,635        (92,013 )      10,193        2,685   

Deductions for surrender charges (note 2d)

     -            -            -            (398 )      (807 )      (1,440 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (11,158 )      (18,638 )      (752,010 )      (744,136 )      (338,312 )      (344,465 )      (72,974 )      (99,544 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (127 )      (140 )      (54,786 )      (58,516 )      (26,165 )      (27,280 )      (93 )      (20 ) 

MSP contracts

     -            -            (2,502 )      (2,646 )      (998 )      (1,069 )      -            -       

SL contracts or LSFP contracts

     -            -            (4,817 )      (5,020 )      (13,174 )      (15,465 )      -            -       

Adjustments to maintain reserves

     17        (754 )      (11 )      52        8        (18 )      83        (593 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (1,019,860 )      1,458,275        (3,971,563 )      (257,616 )      (2,705,214 )      (1,500,415 )      (368,177 )      (1,837,307 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (1,027,619 )      1,606,401        (5,132,214 )      2,263,475        (2,980,576 )      (1,094,330 )      (383,447 )      (1,993,829 ) 

Contract owners’ equity beginning of period

     1,606,401        -            23,330,878        21,067,403        12,507,527        13,601,857        1,859,779        3,853,608   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 578,782      $ 1,606,401      $ 18,198,664      $ 23,330,878      $ 9,526,951      $ 12,507,527      $ 1,476,332      $ 1,859,779   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     145,072        -            899,634        900,940        783,544        880,216        119,008        242,842   

Units purchased

     40,099        166,269        37,344        82,127        79,664        128,152        32,016        2,017   

Units redeemed

     (133,760 )      (21,197 )      (212,649 )      (83,433 )      (251,284 )      (224,824 )      (47,576 )      (125,851 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     51,411        145,072        724,329        899,634        611,924        783,544        103,448        119,008   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    ACVMV1     ACVU1     ACVV     DVMCS  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 212,262      $ 128,251      $ 4,169      $ 3,081      $ 461,129      $ 298,729      $ 15,494      $ 16,390   

Realized gain (loss) on investments

     837,810        762,328        398,710        78,170        3,154,136        2,603,403        198,637        81,392   

Change in unrealized gain (loss) on investments

     (1,860,368 )      128,910        (428,278 )      55,624        (4,474,016 )      (302,187 )      (875,105 )      208,273   

Reinvested capital gains

     591,112        731,729        145,277        -            -            -            596,636        11,487   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (219,184 )      1,751,218        119,878        136,875        (858,751 )      2,599,945        (64,338 )      317,542   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     2,030,673        1,682,734        (2,017 )      313        657,025        787,406        109,111        62,577   

Transfers between funds

     304,557        64,423        (940,187 )      68,562        (2,482,617 )      3,127,491        (615,867 )      1,445,838   

Surrenders (note 6)

     (1,084,397 )      (985,062 )      (4,262 )      (647 )      (1,249,745 )      (736,416 )      (272,553 )      (2,486 ) 

Death Benefits (note 4)

     (16,851 )      (13,728 )      (10,114 )      -            (13,609 )      (18,447 )      (26,122 )      (360 ) 

Net policy repayments (loans) (note 5)

     (576,625 )      2,847        4,262        647        (31,045 )      (20,581 )      2,110        (79 ) 

Deductions for surrender charges (note 2d)

     (1,299 )      (6,788 )      -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (397,752 )      (329,526 )      (15,293 )      (12,652 )      (331,625 )      (289,442 )      (49,148 )      (31,166 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (26,211 )      (22,691 )      -            -            (5,431 )      (5,343 )      (23 )      (9 ) 

MSP contracts

     (815 )      (770 )      -            -            -            -            -            -       

SL contracts or LSFP contracts

     (1,712 )      (1,642 )      -            -            -            -            -            -       

Adjustments to maintain reserves

     (10 )      (15 )      (15 )      46        (151 )      343        2        (42 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     229,558        389,782        (967,626 )      56,269        (3,457,198 )      2,845,011        (852,490 )      1,474,273   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     10,374        2,141,000        (847,748 )      193,144        (4,315,949 )      5,444,956        (916,828 )      1,791,815   

Contract owners’ equity beginning of period

     13,379,525        11,238,525        1,598,803        1,405,659        25,658,246        20,213,290        3,435,635        1,643,820   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 13,389,899      $ 13,379,525      $ 751,055      $ 1,598,803      $ 21,342,297      $ 25,658,246      $ 2,518,807      $ 3,435,635   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     492,846        482,118        77,382        74,672        813,491        723,483        104,891        55,938   

Units purchased

     93,051        99,783        6,369        3,848        72,806        154,376        25,223        50,060   

Units redeemed

     (85,296 )      (89,055 )      (49,049 )      (1,138 )      (163,132 )      (64,368 )      (50,666 )      (1,107 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     500,601        492,846        34,702        77,382        723,165        813,491        79,448        104,891   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    DVSCS     DCAP     DSC     DVIV  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 500,049      $ 319,855      $ 390,920      $ 528,193      $ -          $ -          $ 108,634      $ 158,197   

Realized gain (loss) on investments

     6,601,408        4,404,244        1,918,192        4,403,783        92,242        177,342        247,961        1,021,463   

Change in unrealized gain (loss) on investments

     (15,200,764 )      (4,953,887 )      (4,071,115 )      (3,422,113 )      (129,288 )      (154,774 )      (461,605 )      (1,585,073 ) 

Reinvested capital gains

     5,950,257        4,511,317        1,203,674        859,878        15,609        -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (2,149,050 )      4,281,529        (558,329 )      2,369,741        (21,437 )      22,568        (105,010 )      (405,413 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     3,195,897        2,931,848        780,709        1,053,538        64,907        47,652        62,203        98,043   

Transfers between funds

     (3,333,747 )      10,323,316        (5,431,263 )      (8,976,781 )      (38,876 )      (310,476 )      (668,952 )      (5,426,944 ) 

Surrenders (note 6)

     (4,875,464 )      (2,545,631 )      (1,461,734 )      (1,075,757 )      (73,276 )      (20,761 )      (725,192 )      (22,609 ) 

Death Benefits (note 4)

     (567,716 )      (677,458 )      (277,600 )      (155,738 )      -            -            (29,864 )      (1,080 ) 

Net policy repayments (loans) (note 5)

     (378,912 )      (239,827 )      145,066        (13,296 )      (5,455 )      9,721        (14,355 )      (1,124 ) 

Deductions for surrender charges (note 2d)

     (1,667 )      (2,299 )      (1,375 )      (566 )      -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (1,434,243 )      (1,292,923 )      (775,500 )      (882,904 )      (38,141 )      (39,929 )      (76,134 )      (119,170 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (43,910 )      (45,232 )      (58,922 )      (65,161 )      (3,272 )      (3,743 )      (602 )      (741 ) 

MSP contracts

     (1,101 )      (1,084 )      (1,723 )      (1,738 )      -            -            -            -       

SL contracts or LSFP contracts

     (6,847 )      (6,493 )      (6,220 )      (6,245 )      (489 )      (451 )      -            -       

Adjustments to maintain reserves

     (44 )      178        10        12        15        (2 )      6        (1 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (7,447,754 )      8,444,395        (7,088,552 )      (10,124,636 )      (94,587 )      (317,989 )      (1,452,890 )      (5,473,626 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (9,596,804 )      12,725,924        (7,646,881 )      (7,754,895 )      (116,024 )      (295,421 )      (1,557,900 )      (5,879,039 ) 

Contract owners’ equity beginning of period

     93,959,139        81,233,215        27,937,998        35,692,893        1,067,509        1,362,930        5,511,637        11,390,676   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 84,362,335      $ 93,959,139      $ 20,291,117      $ 27,937,998      $ 951,485      $ 1,067,509      $ 3,953,737      $ 5,511,637   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     3,271,232        2,964,896        1,135,867        1,660,176        47,065        61,048        291,203        546,235   

Units purchased

     154,600        583,054        37,217        83,636        4,134        5,498        11,326        13,209   

Units redeemed

     (412,123 )      (276,718 )      (372,946 )      (607,945 )      (8,272 )      (19,481 )      (86,344 )      (268,241 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     3,013,709        3,271,232        800,138        1,135,867        42,927        47,065        216,185        291,203   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    SVSSVB     SVSLVB     FVCA2P     FQB  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ (656 )    $ 6,673      $ 1,283      $ 1,740      $ 12,215      $ 13,782      $ 985,664      $ 1,065,798   

Realized gain (loss) on investments

     30,987        172,809        5,181        6,054        (5,098 )      841        67,659        588,287   

Change in unrealized gain (loss) on investments

     (57,660 )      (166,400 )      (24,268 )      6,338        (55,868 )      (173,158 )      (1,139,269 )      (598,804 ) 

Reinvested capital gains

     26,754        8,555        6,415        -            1,024        150,975        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (575 )      21,637        (11,389 )      14,132        (47,727 )      (7,560 )      (85,946 )      1,055,281   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     8,291        84,587        609        590        37,018        39,820        728,293        934,762   

Transfers between funds

     (472,358 )      (1,121,813 )      3,511        (3,833 )      (5,823 )      48,457        (1,251,466 )      190,213   

Surrenders (note 6)

     (14,339 )      (2,069 )      -            -            (52,539 )      (61,287 )      (963,828 )      (946,014 ) 

Death Benefits (note 4)

     -            (9,477 )      -            -            (8,410 )      -            (311,833 )      (680,830 ) 

Net policy repayments (loans) (note 5)

     (16,440 )      (3,743 )      (3,429 )      -            6,006        (3,003 )      51,060        (53,941 ) 

Deductions for surrender charges (note 2d)

     -            -            -            -            -            (51 )      (237 )      (1,401 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (9,343 )      (21,795 )      (3,063 )      (2,972 )      (22,707 )      (23,387 )      (796,663 )      (793,660 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (116 )      (795 )      -            -            (2,050 )      (2,237 )      (56,887 )      (60,013 ) 

MSP contracts

     -            -            -            -            -            -            (3,510 )      (3,586 ) 

SL contracts or LSFP contracts

     -            -            -            -            (443 )      (505 )      (5,620 )      (5,952 ) 

Adjustments to maintain reserves

     (14 )      6        (9 )      13        (3 )      10        36        (2 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (504,319 )      (1,075,099 )      (2,381 )      (6,202 )      (48,951 )      (2,183 )      (2,610,655 )      (1,420,424 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (504,894 )      (1,053,462 )      (13,770 )      7,930        (96,678 )      (9,743 )      (2,696,601 )      (365,143 ) 

Contract owners’ equity beginning of period

     713,559        1,767,021        155,618        147,688        792,290        802,033        27,987,363        28,352,506   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 208,665      $ 713,559      $ 141,848      $ 155,618      $ 695,612      $ 792,290      $ 25,290,762      $ 27,987,363   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     48,141        124,095        10,766        11,249        43,124        43,232        1,283,800        1,349,684   

Units purchased

     558        11,277        276        155        2,279        4,958        51,886        129,007   

Units redeemed

     (34,269 )      (87,231 )      (446 )      (638 )      (5,000 )      (5,066 )      (171,027 )      (194,891 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     14,430        48,141        10,596        10,766        40,403        43,124        1,164,659        1,283,800   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    FCS     FNRS2     FEIS     FF10S  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 234,265      $ 366,461      $ 69,431      $ 62,586      $ 1,804,717      $ 1,677,653      $ 38,038      $ 37,740   

Realized gain (loss) on investments

     9,664,141        7,799,788        (355,513 )      514,600        2,980,977        (76,600 )      73,170        18,067   

Change in unrealized gain (loss) on investments

     (14,401,641 )      (2,331,541 )      (1,512,594 )      (1,887,387 )      (13,017,860 )      3,073,824        (116,011 )      11,784   

Reinvested capital gains

     5,099,951        1,177,951        212,716        104,674        5,673,847        896,837        6,570        39,338   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     596,716        7,012,659        (1,585,960 )      (1,205,527 )      (2,558,319 )      5,571,714        1,767        106,929   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     124,099        358,091        575,031        675,687        2,768,204        2,852,893        42,257        42,234   

Transfers between funds

     (22,411,101 )      (10,866,941 )      (178,858 )      393,615        (1,821,129 )      (8,557,534 )      116,816        (20,369 ) 

Surrenders (note 6)

     (3,855,904 )      (2,477,077 )      (426,228 )      (1,026,397 )      (2,870,919 )      (3,259,694 )      (48,159 )      (32,020 ) 

Death Benefits (note 4)

     (377,056 )      (156,322 )      (24,380 )      (5,199 )      (452,890 )      (278,036 )      (310,889 )      (1,289 ) 

Net policy repayments (loans) (note 5)

     190,929        (11,971 )      44,823        2,839        539,684        8,152        (19,212 )      (2,629 ) 

Deductions for surrender charges (note 2d)

     -            -            (646 )      (4,493 )      (1,564 )      (3,827 )      (503 )      (307 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (545,016 )      (654,880 )      (284,798 )      (349,476 )      (2,256,171 )      (2,303,228 )      (61,389 )      (73,573 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (2,013 )      (2,155 )      (19,580 )      (24,972 )      (156,849 )      (169,456 )      (4,806 )      (5,307 ) 

MSP contracts

     -            -            (1,836 )      (2,540 )      (6,841 )      (7,264 )      (3,956 )      (3,881 ) 

SL contracts or LSFP contracts

     -            -            (5,339 )      (6,382 )      (18,890 )      (18,995 )      (511 )      (587 ) 

Adjustments to maintain reserves

     974        18,022        (13 )      23        (194 )      352        8        7   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (26,875,088 )      (13,793,233 )      (321,824 )      (347,295 )      (4,277,559 )      (11,736,637 )      (290,344 )      (97,721 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (26,278,372 )      (6,780,574 )      (1,907,784 )      (1,552,822 )      (6,835,878 )      (6,164,923 )      (288,577 )      9,208   

Contract owners’ equity beginning of period

     60,334,411        67,114,985        8,025,181        9,578,003        63,137,536        69,302,459        2,509,861        2,500,653   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 34,056,039      $ 60,334,411      $ 6,117,397      $ 8,025,181      $ 56,301,658      $ 63,137,536      $ 2,221,284      $ 2,509,861   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     2,176,373        2,707,495        405,538        422,224        2,527,460        3,053,344        141,331        146,853   

Units purchased

     6,280        33,429        53,678        73,113        163,364        167,159        8,899        5,097   

Units redeemed

     (953,088 )      (564,551 )      (69,149 )      (89,799 )      (345,377 )      (693,043 )      (24,626 )      (10,619 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     1,229,565        2,176,373        390,067        405,538        2,345,447        2,527,460        125,604        141,331   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    FF20S     FF30S     FFINS     FGOS  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 455,452      $ 322,702      $ 201,673      $ 135,676      $ 18,948      $ 12,454      $ (2,514 )    $ (46 ) 

Realized gain (loss) on investments

     328,768        933,065        310,788        159,089        9,315        44,702        1,000,287        91,155   

Change in unrealized gain (loss) on investments

     (1,032,078 )      (806,719 )      (700,905 )      (73,921 )      (37,989 )      (30,142 )      (905,602 )      170,613   

Reinvested capital gains

     119,356        356,445        66,107        171,942        1,706        11,517        51,369        2,758   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (128,502 )      805,493        (122,337 )      392,786        (8,020 )      38,531        143,540        264,480   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     2,424,707        3,049,750        1,267,498        708,602        8        44        (4,220 )      19   

Transfers between funds

     4,069,008        976,075        2,387,781        1,594,334        262,995        (681,498 )      (2,749,963 )      577,847   

Surrenders (note 6)

     (734,627 )      (421,052 )      (450,687 )      (507,583 )      (47,100 )      (31,276 )      -            -       

Death Benefits (note 4)

     (44,364 )      (10,248 )      (20,815 )      (6,753 )      (7,226 )      (5,790 )      (130,391 )      -       

Net policy repayments (loans) (note 5)

     45,903        (285,246 )      (15,328 )      (21,165 )      -            -            59,294        (140 ) 

Deductions for surrender charges (note 2d)

     (857 )      (1,241 )      (2,617 )      (4,590 )      -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (650,441 )      (548,320 )      (296,668 )      (226,375 )      (9,843 )      (9,106 )      (24,699 )      (25,457 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (22,620 )      (23,035 )      (19,360 )      (18,682 )      -            -            (5 )      -       

MSP contracts

     (4,102 )      (4,120 )      (1,633 )      (1,623 )      -            -            -            -       

SL contracts or LSFP contracts

     (4,798 )      (4,528 )      (1,169 )      (790 )      -            -            -            -       

Adjustments to maintain reserves

     9        (222 )      17        (61 )      2        (4 )      6,514        12,859   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     5,077,818        2,727,813        2,847,019        1,515,314        198,836        (727,630 )      (2,843,470 )      565,128   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     4,949,316        3,533,306        2,724,682        1,908,100        190,816        (689,099 )      (2,699,930 )      829,608   

Contract owners’ equity beginning of period

     22,435,469        18,902,163        9,982,525        8,074,425        1,039,310        1,728,409        3,137,228        2,307,620   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 27,384,785      $ 22,435,469      $ 12,707,207      $ 9,982,525      $ 1,230,126      $ 1,039,310      $ 437,298      $ 3,137,228   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,234,002        1,085,182        523,809        443,253        87,841        151,165        176,408        143,931   

Units purchased

     363,732        296,465        193,483        133,782        22,186        -            230        35,379   

Units redeemed

     (81,558 )      (147,645 )      (46,603 )      (53,226 )      (5,402 )      (63,324 )      (155,845 )      (2,902 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     1,516,176        1,234,002        670,689        523,809        104,625        87,841        20,793        176,408   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    FGS     FHIS     FIP     FIGBS  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 72,335      $ 17,245      $ 878,992      $ 718,703      $ 833,807      $ 480,797      $ 4,074,283      $ 3,131,768   

Realized gain (loss) on investments

     4,135,585        2,544,798        (64,469 )      99,956        2,422,243        2,019,039        (523,374 )      (99,725 ) 

Change in unrealized gain (loss) on investments

     (909,306 )      6,313,633        (1,507,420 )      (670,174 )      (2,744,568 )      1,952,240        (5,318,505 )      (373,491 ) 

Reinvested capital gains

     2,753,757        -            -            -            23,251        30,656        127,077        23,761   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     6,052,371        8,875,676        (692,897 )      148,485        534,733        4,482,732        (1,640,519 )      2,682,313   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     3,766,330        3,506,167        228,307        9,387        1,898        3,876        1,664,295        919,955   

Transfers between funds

     (290,920 )      4,238,663        1,993,788        (416,141 )      13,964,305        (1,042,489 )      22,909,778        114,296,368   

Surrenders (note 6)

     (5,051,189 )      (3,563,417 )      (628,799 )      (400,599 )      (1,808,100 )      (1,030,851 )      (2,408,131 )      (890,457 ) 

Death Benefits (note 4)

     (570,580 )      (393,202 )      (339,331 )      (22,494 )      (284,334 )      (135,156 )      (65,032 )      (971,673 ) 

Net policy repayments (loans) (note 5)

     163,841        (241,785 )      64,190        (29,855 )      -            -            6,359        (54,970 ) 

Deductions for surrender charges (note 2d)

     (2,917 )      (2,918 )      -            (22 )      -            -            (1,185 )      (2,615 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (3,325,228 )      (3,055,954 )      (389,909 )      (276,762 )      (365,699 )      (265,281 )      (1,906,105 )      (816,534 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (219,282 )      (219,608 )      (20,861 )      (14,940 )      -            -            (25,756 )      (27,049 ) 

MSP contracts

     (7,092 )      (7,312 )      (1,553 )      (1,299 )      -            -            (3,844 )      (3,986 ) 

SL contracts or LSFP contracts

     (17,984 )      (16,817 )      (2,051 )      (1,280 )      -            -            (7,701 )      (7,934 ) 

Adjustments to maintain reserves

     7,991        11,496        28        (68 )      1        39        (18 )      1   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (5,547,030 )      255,313        903,809        (1,154,073 )      11,508,071        (2,469,862 )      20,162,660        112,441,106   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     505,341        9,130,989        210,912        (1,005,588 )      12,042,804        2,012,870        18,522,141        115,123,419   

Contract owners’ equity beginning of period

     89,015,373        79,884,384        12,531,665        13,537,253        34,793,037        32,780,167        151,948,959        36,825,540   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 89,520,714      $ 89,015,373      $ 12,742,577      $ 12,531,665      $ 46,835,841      $ 34,793,037      $ 170,471,100      $ 151,948,959   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     4,030,458        3,923,497        617,230        674,793        2,135,022        2,279,769        9,237,349        2,366,422   

Units purchased

     307,264        478,179        459,283        5,315        856,530        1        1,586,606        7,095,346   

Units redeemed

     (577,403 )      (371,218 )      (420,459 )      (62,878 )      (149,558 )      (144,748 )      (356,393 )      (224,419 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     3,760,319        4,030,458        656,054        617,230        2,841,994        2,135,022        10,467,562        9,237,349   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    FMCS     FOS     FVSS     FF05S  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 138,089      $ 40,285      $ 233,301      $ 116,795      $ 37,283      $ 49,912      $ 2,746      $ 1,285   

Realized gain (loss) on investments

     1,457,252        3,043,024        847,327        524,334        1,041,060        333,311        193        28   

Change in unrealized gain (loss) on investments

     (8,149,939 )      (1,293,403 )      (1,453,059 )      (1,556,691 )      (1,184,629 )      (55,378 )      (5,727 )      (140 ) 

Reinvested capital gains

     6,009,549        1,149,842        18,961        2,851        4,120        -            361        461   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (545,049 )      2,939,748        (353,470 )      (912,711 )      (102,166 )      327,845        (2,427 )      1,634   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     1,699,316        2,284,157        461,694        59,262        123,236        357,759        2        1   

Transfers between funds

     (4,857,132 )      (273,258 )      10,854,064        (585,051 )      (1,650,801 )      1,029        89,017        62,356   

Surrenders (note 6)

     (3,440,765 )      (2,534,732 )      (1,767,228 )      (238,003 )      (94,861 )      (106,261 )      (5,300 )      (1,700 ) 

Death Benefits (note 4)

     (107,914 )      (123,685 )      (75,844 )      (26,843 )      (236,993 )      (5,219 )      (688 )      (117 ) 

Net policy repayments (loans) (note 5)

     (132,977 )      (116,137 )      37,753        (31,088 )      4,858        (28,745 )      -            -       

Deductions for surrender charges (note 2d)

     (2,474 )      (5,960 )      (610 )      (38 )      (127 )      (345 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (1,226,525 )      (1,223,722 )      (605,284 )      (306,011 )      (150,992 )      (150,147 )      (1,018 )      (341 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (92,075 )      (94,469 )      (41,140 )      (15,086 )      (13,482 )      (13,680 )      -            -       

MSP contracts

     (4,496 )      (4,207 )      (1,113 )      (634 )      (153 )      (151 )      -            -       

SL contracts or LSFP contracts

     (12,662 )      (13,150 )      (5,502 )      (3,051 )      (438 )      (440 )      -            -       

Adjustments to maintain reserves

     (57 )      (810 )      (13 )      60        (25 )      596        (2 )      8   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (8,177,761 )      (2,105,973 )      8,856,777        (1,146,483 )      (2,019,778 )      54,396        82,011        60,207   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (8,722,810 )      833,775        8,503,307        (2,059,194 )      (2,121,944 )      382,241        79,584        61,841   

Contract owners’ equity beginning of period

     50,266,013        49,432,238        9,627,274        11,686,468        5,579,423        5,197,182        91,635        29,794   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 41,543,203      $ 50,266,013      $ 18,130,581      $ 9,627,274      $ 3,457,479      $ 5,579,423      $ 171,219      $ 91,635   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,164,190        1,214,517        527,024        587,917        210,258        208,874        7,230        2,444   

Units purchased

     42,622        107,483        814,756        21,203        7,155        15,303        6,904        4,959   

Units redeemed

     (228,820 )      (157,810 )      (459,690 )      (82,096 )      (83,481 )      (13,919 )      (550 )      (173 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     977,992        1,164,190        882,090        527,024        133,932        210,258        13,584        7,230   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    FF15S     FF25S     FF40S     FTVIS2  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 168,602      $ 121,708      $ 217,305      $ 159,075      $ 94,944      $ 71,410      $ 303,078      $ 333,305   

Realized gain (loss) on investments

     181,306        554,771        467,557        409,542        439,019        347,708        67,282        387,455   

Change in unrealized gain (loss) on investments

     (454,356 )      (478,667 )      (833,914 )      (296,706 )      (620,117 )      (248,729 )      (831,478 )      (414,549 ) 

Reinvested capital gains

     54,176        130,641        73,306        193,642        43,025        85,456        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (50,272 )      328,453        (75,746 )      465,553        (43,129 )      255,845        (461,118 )      306,211   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     330,847        517,251        311,257        93,460        181,138        115,049        369,656        314,504   

Transfers between funds

     1,828,265        1,396,754        3,768,518        2,701,802        1,381,857        535,532        125,547        739,090   

Surrenders (note 6)

     (252,054 )      (369,974 )      (760,696 )      (102,897 )      (316,240 )      (38,169 )      (393,876 )      (166,259 ) 

Death Benefits (note 4)

     (8,494 )      (3,187 )      (36,000 )      (4,544 )      (8,416 )      (5,183 )      (92,453 )      (3,844 ) 

Net policy repayments (loans) (note 5)

     (3,222 )      -            (155,447 )      -            5,553        -            80,105        (623,138 ) 

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            (854 )      (997 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (193,308 )      (160,980 )      (228,885 )      (161,685 )      (130,081 )      (100,311 )      (274,166 )      (268,960 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (909 )      (785 )      (1,033 )      (929 )      (858 )      (647 )      (15,835 )      (17,006 ) 

MSP contracts

     -            -            -            -            -            -            (1,875 )      (1,944 ) 

SL contracts or LSFP contracts

     -            -            -            -            -            -            (5,662 )      (5,251 ) 

Adjustments to maintain reserves

     15        (40 )      (8 )      (80 )      1        (13 )      (4 )      (1 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     1,701,140        1,379,039        2,897,706        2,525,127        1,112,954        506,258        (209,417 )      (33,806 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     1,650,868        1,707,492        2,821,960        2,990,680        1,069,825        762,103        (670,535 )      272,405   

Contract owners’ equity beginning of period

     9,131,177        7,423,685        10,931,160        7,940,480        5,646,780        4,884,677        6,710,629        6,438,224   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 10,782,045      $ 9,131,177      $ 13,753,120      $ 10,931,160      $ 6,716,605      $ 5,646,780      $ 6,040,094      $ 6,710,629   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     660,580        560,735        769,831        585,943        358,910        324,799        390,265        391,706   

Units purchased

     179,516        193,063        285,431        208,671        99,377        48,593        44,283        93,606   

Units redeemed

     (54,920 )      (93,218 )      (80,620 )      (24,783 )      (28,813 )      (14,482 )      (56,620 )      (95,047 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     785,176        660,580        974,642        769,831        429,474        358,910        377,928        390,265   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    FTVRDI     FTVSVI     FTVSV2     FTVMD2  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 269,461      $ 262,919      $ 89,263      $ 92,357      $ 46,272      $ 47,166      $ 60,190      $ 8,875   

Realized gain (loss) on investments

     712,132        1,134,666        773,780        430,393        431,175        699,439        (15,121 )      6,903   

Change in unrealized gain (loss) on investments

     (3,179,153 )      (268,523 )      (2,976,841 )      (1,232,457 )      (2,843,013 )      (1,516,876 )      (344,491 )      (27,197 ) 

Reinvested capital gains

     1,677,113        325,868        1,416,193        803,503        1,582,970        842,839        123,517        30,567   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (520,447 )      1,454,930        (697,605 )      93,796        (782,596 )      72,568        (175,905 )      19,148   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     1,123,180        891,303        333,206        372,691        559,224        579,124        2,599        7,222   

Transfers between funds

     279,626        (972,305 )      (589,048 )      (110,442 )      (1,300,846 )      971,453        1,844,305        163,942   

Surrenders (note 6)

     (1,583,797 )      (1,779,408 )      (756,064 )      (581,263 )      (711,121 )      (404,623 )      (11,753 )      -       

Death Benefits (note 4)

     (47,815 )      (142,148 )      (29,984 )      (37,858 )      (116,075 )      (628 )      -            -       

Net policy repayments (loans) (note 5)

     (110,064 )      (290,083 )      48,443        (82,402 )      25,281        (17,721 )      (624 )      (307 ) 

Deductions for surrender charges (note 2d)

     (619 )      (2,250 )      (839 )      (2,081 )      -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (479,442 )      (484,520 )      (308,058 )      (332,354 )      (117,723 )      (126,141 )      (43,314 )      (12,749 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (49,952 )      (54,337 )      (30,096 )      (34,960 )      (1,210 )      (1,848 )      (2,156 )      (9 ) 

MSP contracts

     (1,849 )      (1,815 )      (1,538 )      (1,579 )      -            -            -            -       

SL contracts or LSFP contracts

     (6,134 )      (5,902 )      (3,867 )      (4,112 )      -            -            -            -       

Adjustments to maintain reserves

     4        (2 )      (8 )      2        16        (18 )      (3 )      (2 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (876,862 )      (2,841,467 )      (1,337,853 )      (814,358 )      (1,662,454 )      999,598        1,789,054        158,097   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (1,397,309 )      (1,386,537 )      (2,035,458 )      (720,562 )      (2,445,050 )      1,072,166        1,613,149        177,245   

Contract owners’ equity beginning of period

     17,151,918        18,538,455        10,693,748        11,414,310        11,301,870        10,229,704        464,392        287,147   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 15,754,609      $ 17,151,918      $ 8,658,290      $ 10,693,748      $ 8,856,820      $ 11,301,870      $ 2,077,541      $ 464,392   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     599,977        706,879        292,511        314,978        512,783        465,556        32,122        20,950   

Units purchased

     43,397        28,686        11,709        14,233        48,883        101,829        124,909        12,089   

Units redeemed

     (72,785 )      (135,588 )      (49,056 )      (36,700 )      (125,645 )      (54,602 )      (9,688 )      (917 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     570,589        599,977        255,164        292,511        436,021        512,783        147,343        32,122   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    FTVDM2     TIF     TIF2     FTVGI2  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 60,438      $ 54,255      $ 42,124      $ 29,394      $ 773,732      $ 423,656      $ 906,016      $ 764,539   

Realized gain (loss) on investments

     (251,045 )      1,240        4,703        25,815        371,073        594,107        (173,148 )      (1,185,673 ) 

Change in unrealized gain (loss) on investments

     (778,823 )      (244,573 )      (152,028 )      (205,899 )      (3,642,164 )      (4,501,055 )      (1,295,522 )      449,607   

Reinvested capital gains

     384,881        -            39,502        -            835,214        -            59,042        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (584,549 )      (189,078 )      (65,699 )      (150,690 )      (1,662,145 )      (3,483,292 )      (503,612 )      28,473   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     220,824        120,887        -            (9 )      385,096        398,507        268,974        568,599   

Transfers between funds

     (377,918 )      3,552,109        (17,299 )      (47,186 )      2,068,601        12,214,280        (1,130,563 )      (28,678,998 ) 

Surrenders (note 6)

     (154,489 )      (323,181 )      (84,583 )      (40,019 )      (459,477 )      (205,476 )      (528,057 )      (353,017 ) 

Death Benefits (note 4)

     (6,752 )      -            -            (11,675 )      (314,545 )      (17,069 )      (112,780 )      (181,466 ) 

Net policy repayments (loans) (note 5)

     (6,995 )      125,510        (13,453 )      (19,385 )      23,513        (100,713 )      (33,945 )      (17,517 ) 

Deductions for surrender charges (note 2d)

     (487 )      (1,106 )      -            (326 )      (1,725 )      (889 )      (148 )      (812 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (107,323 )      (84,918 )      (27,274 )      (31,160 )      (406,838 )      (336,496 )      (347,783 )      (376,575 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (9,377 )      (7,515 )      (3,306 )      (4,067 )      (17,288 )      (14,051 )      (26,008 )      (19,826 ) 

MSP contracts

     (716 )      (548 )      (532 )      (587 )      (257 )      (192 )      (863 )      (603 ) 

SL contracts or LSFP contracts

     (1,199 )      (1,278 )      (631 )      (720 )      (3,089 )      (2,257 )      (3,762 )      (2,696 ) 

Adjustments to maintain reserves

     (3 )      1        13        -            (33 )      78        (10 )      (11 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (444,435 )      3,379,961        (147,065 )      (155,134 )      1,273,958        11,935,722        (1,914,945 )      (29,062,922 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (1,028,984 )      3,190,883        (212,764 )      (305,824 )      (388,187 )      8,452,430        (2,418,557 )      (29,034,449 ) 

Contract owners’ equity beginning of period

     3,190,883        -            1,228,764        1,534,588        25,006,807        16,554,377        13,406,161        42,440,610   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 2,161,899      $ 3,190,883      $ 1,016,000      $ 1,228,764      $ 24,618,620      $ 25,006,807      $ 10,987,604      $ 13,406,161   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     338,402        -            48,081        53,511        1,087,231        642,739        774,609        2,511,603   

Units purchased

     25,972        369,641        1        -            150,863        478,675        27,295        695,062   

Units redeemed

     (79,199 )      (31,239 )      (5,650 )      (5,430 )      (91,666 )      (34,183 )      (138,905 )      (2,432,056 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     285,175        338,402        42,432        48,081        1,146,428        1,087,231        662,999        774,609   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    FTVFA2     GVMCE     GVCSE     GVGOPS  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 21,227      $ 20,231      $ 57,226      $ 482,978      $ 100      $ 265      $ (3,582 )    $ (1,981 ) 

Realized gain (loss) on investments

     (20,790 )      (11,436 )      6,311,028        6,162,866        (4,040 )      (73 )      (165,353 )      59,857   

Change in unrealized gain (loss) on investments

     (48,744 )      7,638        (14,080,635 )      (9,413,680 )      (5,177 )      (4,167 )      (60,394 )      (211,422 ) 

Reinvested capital gains

     1,161        617        3,193,109        10,364,851        8,843        5,582        119,074        239,061   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (47,146 )      17,050        (4,519,272 )      7,597,015        (274 )      1,607        (110,255 )      85,515   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     32,418        28,286        61,258        252,590        -            (40 )      160,356        124,729   

Transfers between funds

     3,818        129,422        (16,082,002 )      (2,413,829 )      23,527        39,292        383,689        482,103   

Surrenders (note 6)

     (14,371 )      (25,789 )      (3,531,170 )      (1,963,117 )      -            -            (246,576 )      (25,400 ) 

Death Benefits (note 4)

     -            (3,411 )      (92,645 )      (119,400 )      -            -            (220 )      (5,396 ) 

Net policy repayments (loans) (note 5)

     (20,211 )      (47,723 )      36,486        (764,847 )      -            -            246        22   

Deductions for surrender charges (note 2d)

     (52 )      -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (27,845 )      (26,507 )      (501,834 )      (565,821 )      (3,605 )      (1,133 )      (29,060 )      (16,632 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (2,906 )      (3,022 )      -            -            (22 )      (7 )      (80 )      (24 ) 

MSP contracts

     (53 )      (25 )      -            -            -            -            -            -       

SL contracts or LSFP contracts

     (6 )      (6 )      -            -            -            -            -            -       

Adjustments to maintain reserves

     (9 )      7        (89 )      (32 )      5        3        11        4   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (29,217 )      51,232        (20,109,996 )      (5,574,456 )      19,905        38,115        268,366        559,406   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (76,363 )      68,282        (24,629,268 )      2,022,559        19,631        39,722        158,111        644,921   

Contract owners’ equity beginning of period

     741,071        672,789        63,498,186        61,475,627        39,722        -            1,264,559        619,638   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 664,708      $ 741,071      $ 38,868,918      $ 63,498,186      $ 59,353      $ 39,722      $ 1,422,670      $ 1,264,559   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     53,635        50,080        1,722,307        1,889,614        2,986        -            82,502        44,812   

Units purchased

     2,849        11,348        2,346        11,958        2,503        3,077        38,878        43,965   

Units redeemed

     (5,189 )      (7,793 )      (558,667 )      (179,265 )      (920 )      (91 )      (23,244 )      (6,275 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     51,295        53,635        1,165,986        1,722,307        4,569        2,986        98,136        82,502   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    SBVSG     BNCAI     AMTB     AMGP  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ (24,439 )    $ (16,686 )    $ (20,487 )    $ (1,969 )    $ 52,226      $ 66,390      $ 5,944      $ 3,206   

Realized gain (loss) on investments

     (75,569 )      534,587        359,343        639,012        (73,598 )      (29,536 )      (180,544 )      105,425   

Change in unrealized gain (loss) on investments

     (650,497 )      (1,036,828 )      (1,586,865 )      (249,467 )      26,717        (14,875 )      (140,305 )      (183,782 ) 

Reinvested capital gains

     250,052        914,902        783,787        55,379        -            -            269,213        174,821   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (500,453 )      395,975        (464,222 )      442,955        5,345        21,979        (45,692 )      99,670   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     878,039        641,528        159,303        347,111        161,711        207,462        2,419        39   

Transfers between funds

     2,704,324        2,153,026        (2,182,156 )      (321,356 )      211,550        374,538        (451,497 )      (176,697 ) 

Surrenders (note 6)

     (670,397 )      (169,279 )      (126,277 )      (697,138 )      (165,438 )      (210,227 )      -            (10,944 ) 

Death Benefits (note 4)

     (11,029 )      (11,381 )      (4,041 )      -            (3,900 )      (81,355 )      (9,120 )      -       

Net policy repayments (loans) (note 5)

     (30,247 )      (8,840 )      19,322        1,512        (45,376 )      82,179        -            -       

Deductions for surrender charges (note 2d)

     -            -            -            -            (153 )      (338 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (185,716 )      (126,022 )      (94,525 )      (98,225 )      (179,209 )      (192,609 )      (11,517 )      (12,406 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (1,038 )      (835 )      (49 )      (83 )      (11,539 )      (12,420 )      -            -       

MSP contracts

     -            -            -            -            (570 )      (549 )      -            -       

SL contracts or LSFP contracts

     -            -            -            -            (1,765 )      (1,723 )      -            -       

Adjustments to maintain reserves

     (3 )      (34 )      (13 )      (173 )      4        (2 )      (11 )      32   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     2,683,933        2,478,163        (2,228,436 )      (768,352 )      (34,685 )      164,956        (469,726 )      (199,976 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     2,183,480        2,874,138        (2,692,658 )      (325,397 )      (29,340 )      186,935        (515,418 )      (100,306 ) 

Contract owners’ equity beginning of period

     9,039,455        6,165,317        10,321,115        10,646,512        3,752,525        3,565,590        1,074,537        1,174,843   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 11,222,935      $ 9,039,455      $ 7,628,457      $ 10,321,115      $ 3,723,185      $ 3,752,525      $ 559,119      $ 1,074,537   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     472,936        334,875        281,384        303,601        303,453        290,095        43,652        51,556   

Units purchased

     198,155        181,747        5,338        20,134        64,906        60,633        7,835        1,930   

Units redeemed

     (56,126 )      (43,686 )      (67,213 )      (42,351 )      (67,831 )      (47,275 )      (26,181 )      (9,834 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     614,965        472,936        219,509        281,384        300,528        303,453        25,306        43,652   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    AMCG     AMMCGS     AMTP     AMRI  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ (5,894 )    $ (5,978 )    $ (22 )    $ -          $ 4,844      $ 7,553      $ 28,295      $ 40,717   

Realized gain (loss) on investments

     (293,173 )      249,506        (14,902 )      -            65,034        20,837        48,757        143,151   

Change in unrealized gain (loss) on investments

     119,501        (1,131,079 )      (45,608 )      -            (192,795 )      72,463        (637,790 )      330,527   

Reinvested capital gains

     223,112        1,067,675        -            -            55,600        -            123,169        141,577   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     43,546        180,124        (60,532 )      -            (67,317 )      100,853        (437,569 )      655,972   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     (5,402 )      1,302        5,829        -            (141 )      16,581        11,577        8,698   

Transfers between funds

     (692,920 )      (213,755 )      1,104,418        -            (843,732 )      51,584        8,659        (317,278 ) 

Surrenders (note 6)

     -            -            (944 )      -            (916 )      -            -            (279,446 ) 

Death Benefits (note 4)

     (69,023 )      -            -            -            (2,453 )      -            (158 )      -       

Net policy repayments (loans) (note 5)

     28,794        76        1,068        -            (16,243 )      (26,299 )      (605 )      -       

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (17,259 )      (30,531 )      (4,719 )      -            (10,168 )      (12,540 )      (44,685 )      (42,883 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (87 )      (3 )      (479 )      -            (308 )      (393 )      (80 )      (91 ) 

MSP contracts

     -            -            (8 )      -            -            -            -            -       

SL contracts or LSFP contracts

     -            -            (36 )      -            -            -            -            -       

Adjustments to maintain reserves

     23        99        (2 )      -            36        (45 )      (23 )      3   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (755,874 )      (242,812 )      1,105,127        -            (873,925 )      28,888        (25,315 )      (630,997 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (712,328 )      (62,688 )      1,044,595        -            (941,242 )      129,741        (462,884 )      24,975   

Contract owners’ equity beginning of period

     2,873,717        2,936,405        -            -            1,173,569        1,043,828        5,398,169        5,373,194   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 2,161,389      $ 2,873,717      $ 1,044,595      $ -          $ 232,327      $ 1,173,569      $ 4,935,285      $ 5,398,169   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     133,206        147,342        -            -            50,604        49,246        307,696        347,690   

Units purchased

     2,923        1,326        109,426        -            116        4,215        9,344        4,335   

Units redeemed

     (30,568 )      (15,462 )      (612 )      -            (39,875 )      (2,857 )      (9,373 )      (44,329 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     105,561        133,206        108,814        -            10,845        50,604        307,667        307,696   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    AMSRS     OVGR     OVGS     OVIG  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 11,634      $ 8,965      $ (19,003 )    $ 39,595      $ 891,815      $ 749,815      $ 48,964      $ 25,383   

Realized gain (loss) on investments

     276,438        437,717        1,631,191        2,183,808        6,866,639        4,237,273        (40,431 )      3,155   

Change in unrealized gain (loss) on investments

     (483,836 )      (212,015 )      (3,585,060 )      (327,253 )      (9,612,017 )      (6,801,382 )      (311,357 )      (295,421 ) 

Reinvested capital gains

     183,936        -            2,549,306        412,312        4,917,842        3,453,772        369,692        54,842   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (11,828 )      234,667        576,434        2,308,462        3,064,279        1,639,478        66,868        (212,041 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     74,810        96,287        42,434        74,011        2,917,112        2,583,245        286,378        147,618   

Transfers between funds

     (274,471 )      (149,191 )      (3,094,453 )      (3,118,740 )      (3,216,690 )      17,702,261        3,108,864        2,660,982   

Surrenders (note 6)

     (220,937 )      (560,029 )      (907,707 )      (400,040 )      (2,122,796 )      (1,858,609 )      (155,866 )      (1,737 ) 

Death Benefits (note 4)

     (13,793 )      (78 )      (27,737 )      (157,820 )      (188,356 )      (252,137 )      (555 )      -       

Net policy repayments (loans) (note 5)

     22,501        (10,848 )      (1,060 )      1,272        (389,434 )      (275,444 )      10,851        (11,692 ) 

Deductions for surrender charges (note 2d)

     (2,373 )      (164 )      -            -            (2,711 )      (2,534 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (91,094 )      (97,132 )      (286,464 )      (287,004 )      (1,746,600 )      (1,441,915 )      (154,248 )      (66,191 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (8,283 )      (8,960 )      (180 )      (116 )      (106,800 )      (84,447 )      (856 )      (281 ) 

MSP contracts

     (511 )      (494 )      -            -            (5,943 )      (3,875 )      -            -       

SL contracts or LSFP contracts

     (1,113 )      (1,076 )      -            -            (13,690 )      (9,844 )      -            -       

Adjustments to maintain reserves

     (25 )      37        938        3,737        10        275        5        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (515,289 )      (731,648 )      (4,274,229 )      (3,884,700 )      (4,875,898 )      16,356,976        3,094,573        2,728,699   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (527,117 )      (496,981 )      (3,697,795 )      (1,576,238 )      (1,811,619 )      17,996,454        3,161,441        2,516,658   

Contract owners’ equity beginning of period

     2,516,640        3,013,621        15,918,333        17,494,571        76,402,764        58,406,310        3,110,183        593,525   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 1,989,523      $ 2,516,640      $ 12,220,538      $ 15,918,333      $ 74,591,145      $ 76,402,764      $ 6,271,624      $ 3,110,183   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     85,955        113,615        914,523        1,162,020        3,457,910        2,717,740        290,603        51,327   

Units purchased

     4,332        4,347        6,487        14,746        186,110        1,474,944        305,164        265,998   

Units redeemed

     (22,019 )      (32,007 )      (219,994 )      (262,243 )      (392,771 )      (734,774 )      (28,105 )      (26,722 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     68,268        85,955        701,016        914,523        3,251,249        3,457,910        567,662        290,603   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    OVGI     OVSC     OVAG     OVSB  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 282,515      $ 249,777      $ 58,791      $ 54,635      $ (11,928 )    $ (13,281 )    $ 1,300,440      $ 846,800   

Realized gain (loss) on investments

     971,051        945,920        434,129        859,479        1,423,445        1,090,889        (421,949 )      (35,539 ) 

Change in unrealized gain (loss) on investments

     (4,973,461 )      1,356,012        (1,865,155 )      (1,049,947 )      (2,011,294 )      372,504        (1,400,706 )      (420,887 ) 

Reinvested capital gains

     4,806,256        630,794        970,386        877,758        2,382,946        -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     1,086,361        3,182,503        (401,849 )      741,925        1,783,169        1,450,112        (522,215 )      390,374   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     1,157,135        1,195,673        754,062        481,893        1,118,544        1,202,342        726,030        6,030,423   

Transfers between funds

     (493,672 )      (551,921 )      77,440        378,253        (970,448 )      (1,003,108 )      821,764        2,861,614   

Surrenders (note 6)

     (1,177,100 )      (1,459,894 )      (726,597 )      (741,741 )      (1,831,233 )      (1,576,686 )      (2,835,868 )      (512,788 ) 

Death Benefits (note 4)

     (248,436 )      (280,682 )      (8,295 )      (90,513 )      (151,064 )      (98,971 )      (4,589 )      (20,127 ) 

Net policy repayments (loans) (note 5)

     (26,854 )      (104,022 )      (11,731 )      10,157        18,572        (103,119 )      (344,898 )      (261,856 ) 

Deductions for surrender charges (note 2d)

     (2,573 )      (1,126 )      (305 )      (5,131 )      (77 )      (27 )      (718 )      (230 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (1,252,448 )      (1,216,869 )      (253,777 )      (216,397 )      (1,168,729 )      (1,131,463 )      (193,121 )      (160,413 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (99,934 )      (101,691 )      (21,529 )      (20,952 )      (89,114 )      (88,053 )      (7,027 )      (7,490 ) 

MSP contracts

     (4,225 )      (4,055 )      (539 )      (533 )      (1,561 )      (1,577 )      (80 )      (93 ) 

SL contracts or LSFP contracts

     (7,382 )      (7,202 )      (3,402 )      (3,129 )      (3,899 )      (3,845 )      (47,605 )      (40,040 ) 

Adjustments to maintain reserves

     1        (13 )      (4 )      25        5,102        4,221        (1 )      19   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (2,155,488 )      (2,531,802 )      (194,677 )      (208,068 )      (3,073,907 )      (2,800,286 )      (1,886,113 )      7,889,019   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (1,069,127 )      650,701        (596,526 )      533,857        (1,290,738 )      (1,350,174 )      (2,408,328 )      8,279,393   

Contract owners’ equity beginning of period

     32,046,995        31,396,294        7,201,116        6,667,259        26,730,869        28,081,043        21,280,889        13,001,496   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 30,977,868      $ 32,046,995      $ 6,604,590      $ 7,201,116      $ 25,440,131      $ 26,730,869      $ 18,872,561      $ 21,280,889   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,408,467        1,526,979        181,616        188,218        1,275,602        1,422,801        1,555,119        977,067   

Units purchased

     73,419        66,625        16,587        26,940        68,241        61,948        68,292        650,508   

Units redeemed

     (164,417 )      (185,137 )      (21,190 )      (33,542 )      (226,163 )      (209,147 )      (212,390 )      (72,456 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     1,317,469        1,408,467        177,013        181,616        1,117,680        1,275,602        1,411,021        1,555,119   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    PMVAAA     PMVRSA     PMVFBA     PMVLGA  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 759,773      $ 1,433,717      $ 1,350      $ 53      $ 20,463      $ 40,999      $ 49,413      $ 43,384   

Realized gain (loss) on investments

     (1,140,261 )      95,831        (9,415 )      (3,544 )      (44,538 )      (90,952 )      87,015        (50,276 ) 

Change in unrealized gain (loss) on investments

     (1,813,156 )      (1,463,732 )      (7,630 )      (6,317 )      (82,502 )      133,478        (168,979 )      457,232   

Reinvested capital gains

     -            -            -            -            5,347        3,808        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (2,193,644 )      65,816        (15,695 )      (9,808 )      (101,230 )      87,333        (32,551 )      450,340   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     235,225        1,488,162        2,356        4,528        42,012        66,640        222,907        200,906   

Transfers between funds

     (3,364,278 )      312,130        33,493        50,302        707,917        (1,532,813 )      154,203        121,641   

Surrenders (note 6)

     (759,216 )      (524,522 )      (2,383 )      (4,161 )      (61,829 )      (118,673 )      (82,062 )      -       

Death Benefits (note 4)

     (161,580 )      (79,156 )      -            -            (46 )      (338 )      -            -       

Net policy repayments (loans) (note 5)

     (10,312 )      (1,047 )      (3,199 )      20        19,063        (31,433 )      (30,239 )      (1,681 ) 

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (295,949 )      (325,960 )      (1,833 )      (3,664 )      (44,431 )      (76,203 )      (42,742 )      (32,718 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (3,250 )      (3,874 )      (224 )      (80 )      (2,450 )      (4,820 )      (46 )      -       

MSP contracts

     -            -            -            -            (31 )      (32 )      -            -       

SL contracts or LSFP contracts

     -            -            -            -            (366 )      (590 )      -            -       

Adjustments to maintain reserves

     (41 )      28        (1 )      -            (213 )      66        (317 )      (125 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (4,359,401 )      865,761        28,209        46,945        659,626        (1,698,196 )      221,704        288,023   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (6,553,045 )      931,577        12,514        37,137        558,396        (1,610,863 )      189,153        738,363   

Contract owners’ equity beginning of period

     27,369,965        26,438,388        37,137        -            1,375,723        2,986,586        2,536,398        1,798,035   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 20,816,920      $ 27,369,965      $ 49,651      $ 37,137      $ 1,934,119      $ 1,375,723      $ 2,725,551      $ 2,536,398   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,513,875        1,466,038        4,998        -            106,364        231,139        167,933        147,258   

Units purchased

     19,946        114,419        5,140        5,908        63,998        11,598        26,689        24,494   

Units redeemed

     (265,358 )      (66,582 )      (1,144 )      (910 )      (9,414 )      (136,373 )      (11,166 )      (3,819 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     1,268,463        1,513,875        8,994        4,998        160,948        106,364        183,456        167,933   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    PMVLDA     PMVRRA     PMVTRA     PIVEMI  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 1,663,091      $ 600,064      $ 2,719,251      $ 1,197,973      $ 4,669,738      $ 6,214,844      $ 28,173      $ 5,879   

Realized gain (loss) on investments

     (420,973 )      347,712        (3,429,599 )      (375,101 )      (2,325,675 )      (2,453,928 )      (143,169 )      41,922   

Change in unrealized gain (loss) on investments

     (1,114,082 )      (519,240 )      (1,159,640 )      2,004,889        (1,948,588 )      11,902,154        (86,496 )      (157,367 ) 

Reinvested capital gains

     -            -            -            -            956,880        -            96,814        5,637   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     128,036        428,536        (1,869,988 )      2,827,761        1,352,355        15,663,070        (104,678 )      (103,929 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     1,670,553        1,758,467        3,700,983        2,759,613        4,703,784        5,925,247        15,359        42,783   

Transfers between funds

     (11,429,236 )      3,242,173        (23,406,868 )      (3,268,058 )      (79,070,397 )      (260,110,298 )      (5,755 )      (557,734 ) 

Surrenders (note 6)

     (3,467,899 )      (1,848,861 )      (4,792,443 )      (1,579,773 )      (6,694,905 )      (5,154,073 )      (35,171 )      (93 ) 

Death Benefits (note 4)

     (205,183 )      (150,717 )      (123,889 )      (524,882 )      (729,212 )      (955,782 )      15        -       

Net policy repayments (loans) (note 5)

     55,607        (867,968 )      277,260        (17,060 )      (615,632 )      (3,222,596 )      (22,517 )      -       

Deductions for surrender charges (note 2d)

     (113 )      (34 )      -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (949,731 )      (1,063,564 )      (942,273 )      (1,100,999 )      (1,861,424 )      (4,333,882 )      (10,060 )      (18,755 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (21,058 )      (22,308 )      (8,046 )      (7,146 )      (37,354 )      (45,584 )      (939 )      (1,063 ) 

MSP contracts

     (1,177 )      (1,129 )      -            -            -            -            -            -       

SL contracts or LSFP contracts

     (2,757 )      (3,034 )      -            -            -            -            -            -       

Adjustments to maintain reserves

     (2,064 )      (1,765 )      (314 )      (1,448 )      (6,293 )      (11,618 )      2        (3 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (14,353,058 )      1,041,260        (25,295,590 )      (3,739,753 )      (84,311,433 )      (267,908,586 )      (59,066 )      (534,865 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (14,225,022 )      1,469,796        (27,165,578 )      (911,992 )      (82,959,078 )      (252,245,516 )      (163,744 )      (638,794 ) 

Contract owners’ equity beginning of period

     64,586,899        63,117,103        96,011,944        96,923,936        168,922,532        421,168,048        824,010        1,462,804   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 50,361,877      $ 64,586,899      $ 68,846,366      $ 96,011,944      $ 85,963,454      $ 168,922,532      $ 660,266      $ 824,010   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     4,315,631        4,244,504        5,207,734        5,409,910        8,771,801        22,671,205        127,281        198,081   

Units purchased

     166,239        510,125        252,011        294,294        446,018        687,183        17,101        7,267   

Units redeemed

     (1,121,992 )      (438,998 )      (1,609,706 )      (496,470 )      (4,777,461 )      (14,586,587 )      (24,025 )      (78,067 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     3,359,878        4,315,631        3,850,039        5,207,734        4,440,358        8,771,801        120,357        127,281   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    PIHYB1     PVGIB     PVTIGB     PVTSCB  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 230,829      $ 270,609      $ 18,519      $ 11,151      $ 13,129      $ 10,438      $ 4,792      $ 392   

Realized gain (loss) on investments

     (333,262 )      57,018        64,016        115,015        58,197        46,820        (70,712 )      (8,730 ) 

Change in unrealized gain (loss) on investments

     (250,895 )      (547,339 )      (163,319 )      (28,407 )      (73,704 )      (136,789 )      (62,090 )      (46,073 ) 

Reinvested capital gains

     176,411        216,569        -            -            -            -            88,346        68,349   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (176,917 )      (3,143 )      (80,784 )      97,759        (2,378 )      (79,531 )      (39,664 )      13,938   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     41,701        218,092        50,543        56,136        44,115        31,836        2,393        1,672   

Transfers between funds

     (1,227,629 )      (607,363 )      19,698        148,785        25,862        127,211        160,158        726,247   

Surrenders (note 6)

     (77,607 )      (365,435 )      (253,781 )      (137,088 )      (161,183 )      (39,262 )      (1,697 )      -       

Death Benefits (note 4)

     (8,318 )      (15,566 )      -            (14,775 )      (16,671 )      (14,587 )      (11 )      -       

Net policy repayments (loans) (note 5)

     8,118        (13,343 )      173,980        (3,851 )      20,191        (2,335 )      (403 )      -       

Deductions for surrender charges (note 2d)

     -            -            -            (81 )      (42 )      (72 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (87,577 )      (105,771 )      (48,644 )      (53,677 )      (46,287 )      (49,517 )      (25,006 )      (15,067 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (854 )      (1,072 )      (3,853 )      (3,644 )      (3,074 )      (3,450 )      (126 )      (40 ) 

MSP contracts

     -            -            (47 )      (46 )      (15 )      (12 )      -            -       

SL contracts or LSFP contracts

     -            -            (552 )      (600 )      (429 )      (431 )      -            -       

Adjustments to maintain reserves

     (297 )      44        (15 )      14        (3 )      10        (6 )      6   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (1,352,463 )      (890,414 )      (62,671 )      (8,827 )      (137,536 )      49,391        135,302        712,818   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (1,529,380 )      (893,557 )      (143,455 )      88,932        (139,914 )      (30,140 )      95,638        726,756   

Contract owners’ equity beginning of period

     5,470,578        6,364,135        1,082,646        993,714        1,111,894        1,142,034        736,687        9,931   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 3,941,198      $ 5,470,578      $ 939,191      $ 1,082,646      $ 971,980      $ 1,111,894      $ 832,325      $ 736,687   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     204,952        238,255        44,044        44,765        51,810        49,608        51,730        720   

Units purchased

     7,192        17,683        3,811        7,352        2,826        8,513        11,210        52,102   

Units redeemed

     (57,789 )      (50,986 )      (6,537 )      (8,073 )      (9,409 )      (6,311 )      (1,795 )      (1,092 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     154,355        204,952        41,318        44,044        45,227        51,810        61,145        51,730   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    PVTVB     ACGI     ACEG     AVBVI  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 17,063      $ 12,777      $ 136,142      $ 78,754      $ -          $ 457      $ 10,552      $ 7,188   

Realized gain (loss) on investments

     58,525        217,303        150,165        520,619        50,542        77,339        66,450        47,848   

Change in unrealized gain (loss) on investments

     (393,229 )      (113,593 )      (1,239,878 )      (713,774 )      (5,413 )      8,013        (132,970 )      (20,511 ) 

Reinvested capital gains

     233,250        32,785        772,632        587,759        5,791        -            31,138        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (84,391 )      149,272        (180,939 )      473,358        50,920        85,809        (24,830 )      34,525   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     68,766        84,210        18,169        242,709        57,670        62,162        14,364        256   

Transfers between funds

     (100,953 )      (269,585 )      77,690        250,106        208,169        (71,191 )      (519,757 )      (15,025 ) 

Surrenders (note 6)

     (87,793 )      (262,690 )      (409,181 )      (22,196 )      (55,420 )      (88,019 )      (118,060 )      (103 ) 

Death Benefits (note 4)

     (4,018 )      (1,552 )      (22 )      -            -            (7,844 )      -            -       

Net policy repayments (loans) (note 5)

     17,635        (12,268 )      (655 )      (1,507 )      10,079        (531 )      118,060        103   

Deductions for surrender charges (note 2d)

     (113 )      (56 )      -            -            (159 )      (569 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (52,536 )      (55,944 )      (69,578 )      (59,975 )      (52,674 )      (53,793 )      (4,563 )      (5,385 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (4,842 )      (5,514 )      (39 )      (60 )      (4,377 )      (4,414 )      -            1   

MSP contracts

     (604 )      (591 )      -            -            (248 )      (234 )      -            -       

SL contracts or LSFP contracts

     (752 )      (821 )      -            -            (168 )      (214 )      -            -       

Adjustments to maintain reserves

     (5 )      (6 )      17        (20 )      -            -            25        (8 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (165,215 )      (524,817 )      (383,599 )      409,057        162,872        (164,647 )      (509,931 )      (20,161 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (249,606 )      (375,545 )      (564,538 )      882,415        213,792        (78,838 )      (534,761 )      14,364   

Contract owners’ equity beginning of period

     1,598,169        1,973,714        5,294,775        4,412,360        1,108,824        1,187,662        544,288        529,924   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 1,348,563      $ 1,598,169      $ 4,730,237      $ 5,294,775      $ 1,322,616      $ 1,108,824      $ 9,527      $ 544,288   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     59,171        80,179        312,024        286,045        74,837        86,923        24,969        25,874   

Units purchased

     3,061        4,518        1,575        42,885        18,178        6,168        763        478   

Units redeemed

     (9,052 )      (25,526 )      (25,352 )      (16,906 )      (8,005 )      (18,254 )      (25,236 )      (1,383 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     53,180        59,171        288,247        312,024        85,010        74,837        496        24,969   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    AVHY1     AVIE     AVMCCI     AVSCE  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 757,679      $ 471,750      $ 578,894      $ 807,529      $ 708      $ (2,438 )    $ (253 )    $ -       

Realized gain (loss) on investments

     (60,012 )      302,831        3,810,415        2,262,537        (14,751 )      146,761        (21,332 )      -       

Change in unrealized gain (loss) on investments

     (1,152,971 )      (700,699 )      (5,901,229 )      (2,963,874 )      (38,348 )      (245,696 )      (43,040 )      -       

Reinvested capital gains

     -            -            -            -            39,216        163,516        42,403        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (455,304 )      73,882        (1,511,920 )      106,192        (13,175 )      62,143        (22,222 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     280,857        223,646        2,025,128        1,763,521        31,930        30,890        -            -       

Transfers between funds

     (581,516 )      5,360,342        (4,796,861 )      4,665,540        20,812        (978,500 )      225,243        -       

Surrenders (note 6)

     (703,125 )      (459,128 )      (6,568,474 )      (2,126,421 )      (56,141 )      (824 )      -            -       

Death Benefits (note 4)

     (131,905 )      (24,298 )      (149,568 )      (321,634 )      (4,680 )      -            (4 )      -       

Net policy repayments (loans) (note 5)

     47,335        9,586        46,727        (65,527 )      (4,520 )      (409 )      (1,995 )      -       

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (151,325 )      (118,607 )      (615,625 )      (656,072 )      (13,542 )      (24,011 )      (630 )      -       

Asset charges (note 3):

                

FPVUL & VEL contracts

     (482 )      (695 )      (3,105 )      (2,524 )      (412 )      (488 )      -            -       

MSP contracts

     -            -            -            -            -            -            -            -       

SL contracts or LSFP contracts

     -            -            -            -            -            -            -            -       

Adjustments to maintain reserves

     (132 )      (33 )      (58 )      55        (7 )      7        (2 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (1,240,293 )      4,990,813        (10,061,836 )      3,256,938        (26,560 )      (973,335 )      222,612        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (1,695,597 )      5,064,695        (11,573,756 )      3,363,130        (39,735 )      (911,192 )      200,390        -       

Contract owners’ equity beginning of period

     15,496,752        10,432,057        58,655,441        55,292,311        442,463        1,353,655        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 13,801,155      $ 15,496,752      $ 47,081,685      $ 58,655,441      $ 402,728      $ 442,463      $ 200,390      $ -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,143,753        781,618        2,475,931        2,336,984        22,264        71,330        -            -       

Units purchased

     36,625        433,135        278,070        308,167        4,587        9,009        20,260        -       

Units redeemed

     (126,275 )      (71,000 )      (715,770 )      (169,220 )      (5,697 )      (58,075 )      (263 )      -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     1,054,103        1,143,753        2,038,231        2,475,931        21,154        22,264        19,997        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    ROCMC     RVARS     TREI2     TRHS2  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ (18,834 )    $ (33,142 )    $ 5,292      $ -          $ 869,104      $ 929,116      $ (38,827 )    $ (26,405 ) 

Realized gain (loss) on investments

     (124,506 )      2,086,954        28,794        5,608        6,969,013        4,887,583        4,087,794        2,472,225   

Change in unrealized gain (loss) on investments

     (1,541,321 )      (3,532,392 )      (21,158 )      31,979        (14,033,326 )      (1,017,940 )      (2,725,705 )      1,860,254   

Reinvested capital gains

     446,667        898,163        -            -            1,216,426        -            2,580,507        2,200,628   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (1,237,994 )      (580,417 )      12,928        37,587        (4,978,783 )      4,798,759        3,903,769        6,506,702   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     447,745        449,355        5,601        2,638        1,563,365        1,711,491        615,647        478,949   

Transfers between funds

     (2,504,334 )      (13,109,103 )      (416,266 )      653,181        (14,809,993 )      (681,461 )      1,165,213        4,835,940   

Surrenders (note 6)

     (854,055 )      (389,245 )      (20,753 )      (30,916 )      (3,158,696 )      (1,589,117 )      (1,259,110 )      (788,993 ) 

Death Benefits (note 4)

     (66,320 )      (94,486 )      -            (21,296 )      (270,039 )      (158,581 )      (143,796 )      (70,422 ) 

Net policy repayments (loans) (note 5)

     9,147        (14,376 )      3,359        1,094        (26,872 )      (617,772 )      (226,256 )      (194,972 ) 

Deductions for surrender charges (note 2d)

     -            -            -            (15 )      -            -            (411 )      (175 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (154,484 )      (209,094 )      (29,630 )      (18,621 )      (823,267 )      (926,505 )      (773,385 )      (548,869 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (1,438 )      (1,888 )      (2,846 )      (1,966 )      (3,659 )      (3,828 )      (42,291 )      (30,329 ) 

MSP contracts

     -            -            -            -            -            -            (1,962 )      (1,170 ) 

SL contracts or LSFP contracts

     -            -            -            -            -            -            (9,715 )      (7,180 ) 

Adjustments to maintain reserves

     25        50        (4 )      9        (32 )      (35 )      37        (4 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (3,123,714 )      (13,368,787 )      (460,539 )      584,108        (17,529,193 )      (2,265,808 )      (676,029 )      3,672,775   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (4,361,708 )      (13,949,204 )      (447,611 )      621,695        (22,507,976 )      2,532,951        3,227,740        10,179,477   

Contract owners’ equity beginning of period

     11,279,156        25,228,360        789,841        168,146        73,939,912        71,406,961        31,136,224        20,956,747   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 6,917,448      $ 11,279,156      $ 342,230      $ 789,841      $ 51,431,936      $ 73,939,912      $ 34,363,964      $ 31,136,224   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     372,394        803,412        75,501        16,822        2,807,870        2,898,250        1,018,380        898,513   

Units purchased

     16,575        16,674        3,117        66,059        67,441        186,501        82,203        176,543   

Units redeemed

     (127,134 )      (447,692 )      (46,498 )      (7,380 )      (768,084 )      (276,881 )      (100,887 )      (56,676 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     261,835        372,394        32,120        75,501        2,107,227        2,807,870        999,696        1,018,380   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    TRLT1     TRMCG2     TRNAG1     TRPSB1  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 202,315      $ 166,791      $ (58,571 )    $ (69,963 )    $ (82,814 )    $ (82,845 )    $ 54,248      $ 60,522   

Realized gain (loss) on investments

     (101,809 )      (23,978 )      5,240,635        510,221        2,310,271        2,964,721        (125,093 )      175,013   

Change in unrealized gain (loss) on investments

     (96,311 )      (84,132 )      (6,026,438 )      (426,557 )      (2,590,922 )      (5,225,005 )      (216,742 )      (325,000 ) 

Reinvested capital gains

     -            -            2,808,783        3,703,344        4,090,222        6,100,244        266,599        280,636   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     4,195        58,681        1,964,409        3,717,045        3,726,757        3,757,115        (20,988 )      191,171   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     304,872        937,323        (28,237 )      3,459        2,396,113        2,071,712        138,534        163,629   

Transfers between funds

     11,909,945        2,138,300        (11,583,147 )      1,886,981        (2,388,278 )      (2,645,102 )      708,184        593,004   

Surrenders (note 6)

     (4,881,861 )      (341,616 )      (3,242,433 )      (527,845 )      (3,871,779 )      (1,225,580 )      (1,140,617 )      (604,561 ) 

Death Benefits (note 4)

     (146,667 )      (18,730 )      (405,560 )      (47,003 )      (48,880 )      (55,835 )      (3,117 )      -       

Net policy repayments (loans) (note 5)

     2,071        (254 )      (21,086 )      (784,182 )      (476,989 )      (1,010,012 )      (40,644 )      (24,024 ) 

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (300,711 )      (245,700 )      (224,267 )      (262,964 )      (619,854 )      (634,292 )      (49,041 )      (45,069 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (613 )      (647 )      -            -            (9,692 )      (12,713 )      (1,048 )      (918 ) 

MSP contracts

     -            -            -            -            -            -            -            -       

SL contracts or LSFP contracts

     -            -            -            -            -            -            -            -       

Adjustments to maintain reserves

     (1,842 )      (817 )      (67 )      (10 )      18        (53 )      (8 )      (7 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     6,885,194        2,467,859        (15,504,797 )      268,436        (5,019,341 )      (3,511,875 )      (387,757 )      82,054   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     6,889,389        2,526,540        (13,540,388 )      3,985,481        (1,292,584 )      245,240        (408,745 )      273,225   

Contract owners’ equity beginning of period

     17,125,379        14,598,839        34,378,988        30,393,507        43,114,539        42,869,299        4,113,269        3,840,044   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 24,014,768      $ 17,125,379      $ 20,838,600      $ 34,378,988      $ 41,821,955      $ 43,114,539      $ 3,704,524      $ 4,113,269   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,654,482        1,416,096        770,625        767,584        1,705,856        1,851,100        255,954        250,814   

Units purchased

     1,242,581        309,917        5,669        48,971        235,566        182,934        51,965        51,461   

Units redeemed

     (578,124 )      (71,531 )      (334,161 )      (45,930 )      (412,435 )      (328,178 )      (76,058 )      (46,321 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     2,318,939        1,654,482        442,133        770,625        1,528,987        1,705,856        231,861        255,954   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    TRBCGP     VWEM     VWHA     VVB  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ (62,903 )    $ (34,148 )    $ 62,574      $ 62,435      $ (36,549 )    $ (16,603 )    $ 182,292      $ 120,704   

Realized gain (loss) on investments

     1,409,080        799,474        (579,295 )      229,245        (2,353,188 )      (2,957,193 )      253,999        130,841   

Change in unrealized gain (loss) on investments

     1,993,768        613,789        (1,865,592 )      (2,083,461 )      (7,885,482 )      (4,524,491 )      (881,341 )      896   

Reinvested capital gains

     -            -            718,177        1,689,114        -            -            394,520        312,639   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     3,339,945        1,379,115        (1,664,136 )      (102,667 )      (10,275,219 )      (7,498,287 )      (50,530 )      565,080   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     4,853,313        1,276,292        274,879        282,444        1,618,946        3,646,479        109        397   

Transfers between funds

     7,689,575        17,470,552        (3,671,528 )      35,824        2,753,237        (6,057,078 )      1,218,023        675,779   

Surrenders (note 6)

     (1,002,682 )      (481,979 )      (553,918 )      (525,276 )      (1,799,591 )      (1,131,020 )      (306,301 )      (188,551 ) 

Death Benefits (note 4)

     (77,499 )      (6,231 )      (36,336 )      (70,577 )      (107,971 )      (149,108 )      (48,965 )      (24,556 ) 

Net policy repayments (loans) (note 5)

     (75,625 )      (12,111 )      109,060        39,183        22,638        152,039        -            -       

Deductions for surrender charges (note 2d)

     -            -            -            (100 )      -            (39 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (512,766 )      (215,513 )      (352,633 )      (367,220 )      (543,234 )      (674,768 )      (65,442 )      (48,558 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (13,972 )      (1,068 )      (20,592 )      (24,875 )      (18,846 )      (29,565 )      -            -       

MSP contracts

     -            -            (418 )      (458 )      (227 )      (444 )      -            -       

SL contracts or LSFP contracts

     -            -            (2,552 )      (2,719 )      (1,260 )      (1,768 )      -            -       

Adjustments to maintain reserves

     (3 )      (74 )      211        295        (150 )      344        (18 )      19   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     10,860,341        18,029,868        (4,253,827 )      (633,479 )      1,923,542        (4,244,928 )      797,406        414,530   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     14,200,286        19,408,983        (5,917,963 )      (736,146 )      (8,351,677 )      (11,743,215 )      746,876        979,610   

Contract owners’ equity beginning of period

     27,676,375        8,267,392        14,009,036        14,745,182        31,040,065        42,783,280        7,118,439        6,138,829   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 41,876,661      $ 27,676,375      $ 8,091,073      $ 14,009,036      $ 22,688,388      $ 31,040,065      $ 7,865,315      $ 7,118,439   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,776,681        578,648        336,325        354,185        809,893        877,892        442,815        418,598   

Units purchased

     751,993        1,339,071        12,483        18,314        160,614        137,648        73,112        41,226   

Units redeemed

     (103,129 )      (141,038 )      (109,957 )      (36,174 )      (78,671 )      (205,647 )      (26,094 )      (17,009 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     2,425,545        1,776,681        238,851        336,325        891,836        809,893        489,833        442,815   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    VVCG     VVDV     VVI     VVMCI  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ (13,263 )    $ -          $ 350,675      $ 325,473      $ 55,479      $ 63,250      $ 143,902      $ 118,125   

Realized gain (loss) on investments

     43        -            708,830        597,417        193,527        169,458        814,562        710,661   

Change in unrealized gain (loss) on investments

     105,878        -            (2,447,870 )      (83,044 )      (836,825 )      (539,502 )      (2,777,348 )      642,374   

Reinvested capital gains

     -            -            986,258        631,646        60,454        -            885,839        600,860   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     92,658        -            (402,107 )      1,471,492        (527,365 )      (306,794 )      (933,045 )      2,072,020   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     (266 )      -            603        1,756        (80 )      (381 )      (663 )      1,800   

Transfers between funds

     10,448,462        -            (1,241,874 )      (994,737 )      6,049,610        (612,747 )      12,889,324        (897,377 ) 

Surrenders (note 6)

     (378,301 )      -            (540,700 )      (486,700 )      (366,600 )      (147,685 )      (1,050,399 )      (477,909 ) 

Death Benefits (note 4)

     (24,947 )      -            (96,368 )      (65,353 )      (52,379 )      (20,121 )      (156,645 )      (65,070 ) 

Net policy repayments (loans) (note 5)

     -            -            -            -            -            -            -            -       

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (45,613 )      -            (119,324 )      (124,903 )      (69,707 )      (38,810 )      (206,954 )      (124,908 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     -            -            -            -            -            -            -            -       

MSP contracts

     -            -            -            -            -            -            -            -       

SL contracts or LSFP contracts

     -            -            -            -            -            -            -            -       

Adjustments to maintain reserves

     (2 )      -            5        (7 )      (11 )      (9 )      7        22   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     9,999,333        -            (1,997,658 )      (1,669,944 )      5,560,833        (819,753 )      11,474,670        (1,563,442 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     10,091,991        -            (2,399,765 )      (198,452 )      5,033,468        (1,126,547 )      10,541,625        508,578   

Contract owners’ equity beginning of period

     -            -            16,400,241        16,598,693        4,297,083        5,423,630        16,451,648        15,943,070   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 10,091,991      $ -          $ 14,000,476      $ 16,400,241      $ 9,330,551      $ 4,297,083      $ 26,993,273      $ 16,451,648   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     -            -            1,075,270        1,192,808        395,718        468,254        923,730        1,014,767   

Units purchased

     1,062,717        -            -            -            516,149        -            696,051        1   

Units redeemed

     (46,057 )      -            (132,307 )      (117,538 )      (44,189 )      (72,536 )      (78,936 )      (91,038 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     1,016,660        -            942,963        1,075,270        867,678        395,718        1,540,845        923,730   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    VVREI     VVSTC     VVSCG     VVHGB  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 152,700      $ 234,095      $ 76,654      $ 63,367      $ 7,131      $ 3,784      $ 336,636      $ 193,224   

Realized gain (loss) on investments

     233,365        211,471        (37,140 )      (347 )      (22,409 )      54,739        (157,341 )      14,190   

Change in unrealized gain (loss) on investments

     (600,317 )      1,338,599        5,979        (14,394 )      (660,162 )      (494,524 )      (341,604 )      293,818   

Reinvested capital gains

     325,445        341,411        886        22,419        513,177        565,603        71,030        31,188   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     111,193        2,125,576        46,379        71,045        (162,263 )      129,602        (91,279 )      532,420   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     (794 )      534        51        29        25        265        (248 )      179   

Transfers between funds

     (833,552 )      936,674        684,863        479,275        249,914        (279,229 )      5,728,339        7,642,486   

Surrenders (note 6)

     (323,800 )      (268,187 )      (204,599 )      (145,687 )      (154,700 )      (120,107 )      (783,900 )      (261,986 ) 

Death Benefits (note 4)

     (56,771 )      (30,573 )      (30,217 )      (18,189 )      (28,202 )      (16,464 )      (123,036 )      (33,185 ) 

Net policy repayments (loans) (note 5)

     -            -            -            -            -            -            -            -       

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (74,293 )      (64,138 )      (40,935 )      (37,261 )      (34,770 )      (33,042 )      (162,995 )      (77,076 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     -            -            -            -            -            -            -            -       

MSP contracts

     -            -            -            -            -            -            -            -       

SL contracts or LSFP contracts

     -            -            -            -            -            -            -            -       

Adjustments to maintain reserves

     9        27        8        (2 )      (3 )      9        (23 )      17   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (1,289,201 )      574,337        409,171        278,165        32,264        (448,568 )      4,658,137        7,270,435   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (1,178,008 )      2,699,913        455,550        349,210        (129,999 )      (318,966 )      4,566,858        7,802,855   

Contract owners’ equity beginning of period

     9,673,146        6,973,233        5,057,636        4,708,426        4,151,048        4,470,014        15,968,097        8,165,242   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 8,495,138      $ 9,673,146      $ 5,513,186      $ 5,057,636      $ 4,021,049      $ 4,151,048      $ 20,534,955      $ 15,968,097   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     554,659        519,163        406,789        384,564        241,303        268,075        1,395,545        754,096   

Units purchased

     -            58,572        54,537        38,410        12,181        1        489,881        674,510   

Units redeemed

     (77,163 )      (23,076 )      (21,928 )      (16,185 )      (12,628 )      (26,773 )      (93,045 )      (33,061 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     477,496        554,659        439,398        406,789        240,856        241,303        1,792,381        1,395,545   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    WRASP     WRGP     WRHIP     WRMCG  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 40,279      $ 71,472      $ (3,420 )    $ 10,939      $ 2,501,877      $ 2,221,042      $ (13,780 )    $ (4,692 ) 

Realized gain (loss) on investments

     62,495        374,807        (2,557 )      126,041        (832,503 )      691,815        (5,105 )      138,981   

Change in unrealized gain (loss) on investments

     (3,819,448 )      (3,378,624 )      (510,609 )      (443,216 )      (4,694,091 )      (3,088,798 )      (928,712 )      (49,812 ) 

Reinvested capital gains

     2,345,337        2,065,017        525,750        748,240        435,234        346,314        490,678        143,929   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (1,371,337 )      (867,328 )      9,164        442,004        (2,589,483 )      170,373        (456,919 )      228,406   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     709,755        1,600,017        491,738        90,296        981,737        898,624        481,958        426,684   

Transfers between funds

     1,622,490        (395,349 )      15,897,294        (471,816 )      (4,750,807 )      21,651,550        1,942,205        2,459,802   

Surrenders (note 6)

     (689,917 )      (1,105,842 )      (604,826 )      (25,989 )      (699,809 )      (862,661 )      (71,446 )      (20,111 ) 

Death Benefits (note 4)

     (233,338 )      (46,322 )      (18 )      (2,993 )      (2,759 )      (66,622 )      (13,285 )      (38,952 ) 

Net policy repayments (loans) (note 5)

     (14,864 )      216,682        (9,388 )      -            (105,199 )      (122,993 )      6,652        (1,133 ) 

Deductions for surrender charges (note 2d)

     (381 )      (4,391 )      -            -            -            (12 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (500,986 )      (521,311 )      (88,455 )      (57,052 )      (449,772 )      (457,269 )      (132,913 )      (66,502 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (33,884 )      (40,359 )      (1,863 )      (1,330 )      (6,898 )      (8,169 )      (2,264 )      (2,318 ) 

MSP contracts

     (624 )      (709 )      -            -            -            -            -            -       

SL contracts or LSFP contracts

     (3,851 )      (4,946 )      -            -            -            -            -            -       

Adjustments to maintain reserves

     (3 )      (11 )      17        (19 )      (3 )      (15 )      8        1   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     854,397        (302,541 )      15,684,499        (468,903 )      (5,033,510 )      21,032,433        2,210,915        2,757,471   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (516,940 )      (1,169,869 )      15,693,663        (26,899 )      (7,622,993 )      21,202,806        1,753,996        2,985,877   

Contract owners’ equity beginning of period

     14,876,200        16,046,069        3,418,418        3,445,317        43,822,048        22,619,242        4,862,274        1,876,397   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 14,359,260      $ 14,876,200      $ 19,112,081      $ 3,418,418      $ 36,199,055      $ 43,822,048      $ 6,616,270      $ 4,862,274   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     996,762        1,017,541        139,568        157,563        3,581,446        1,882,396        343,498        142,575   

Units purchased

     248,020        97,285        633,251        31,120        144,542        2,710,642        188,243        210,294   

Units redeemed

     (192,206 )      (118,064 )      (45,995 )      (49,115 )      (557,149 )      (1,011,592 )      (34,535 )      (9,371 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     1,052,576        996,762        726,824        139,568        3,168,839        3,581,446        497,206        343,498   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    WRRESP     WRSTP     SVDF     SVOF  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 83,227      $ 51,076      $ (23,249 )    $ (25,619 )    $ (19,554 )    $ (18,913 )    $ (8,537 )    $ (16,728 ) 

Realized gain (loss) on investments

     236,892        89,230        645,325        2,006,514        929,488        996,564        1,706,484        1,171,379   

Change in unrealized gain (loss) on investments

     (870,992 )      1,080,802        (1,996,424 )      (2,971,725 )      (3,499,131 )      (2,879,436 )      (2,911,383 )      (168,935 ) 

Reinvested capital gains

     857,574        317,731        932,305        1,491,163        2,319,407        1,921,854        935,022        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     306,701        1,538,839        (442,043 )      500,333        (269,790 )      20,069        (278,414 )      985,716   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     946,173        694,870        1,466,721        1,984,836        1,018,582        541,249        17,401        242   

Transfers between funds

     (1,771,487 )      1,764,313        (1,032,658 )      (866,920 )      957,625        224,573        (3,185,090 )      (1,272,711 ) 

Surrenders (note 6)

     (358,538 )      (41,449 )      (921,060 )      (419,799 )      (569,089 )      (264,087 )      (191,824 )      (224,383 ) 

Death Benefits (note 4)

     (932 )      (2,543 )      (79,327 )      (40,098 )      (666 )      (2,250 )      (1,651 )      (102,944 ) 

Net policy repayments (loans) (note 5)

     (16,890 )      9,734        (595,179 )      (87,947 )      55,119        (31,844 )      -            -       

Deductions for surrender charges (note 2d)

     -            -            -            -            -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (142,397 )      (134,884 )      (345,690 )      (353,394 )      (181,876 )      (149,289 )      (97,930 )      (111,179 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (7,148 )      (6,614 )      (11,751 )      (12,526 )      (12,014 )      (10,152 )      (17 )      -       

MSP contracts

     -            -            -            -            -            -            -            -       

SL contracts or LSFP contracts

     -            -            -            -            -            -            -            -       

Adjustments to maintain reserves

     12        (9 )      (32 )      12        (8 )      (39 )      11        (12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (1,351,207 )      2,283,418        (1,518,976 )      204,164        1,267,673        308,161        (3,459,100 )      (1,710,987 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (1,044,506 )      3,822,257        (1,961,019 )      704,497        997,883        328,230        (3,737,514 )      (725,271 ) 

Contract owners’ equity beginning of period

     8,001,317        4,179,060        17,025,165        16,320,668        15,266,230        14,938,000        9,224,502        9,949,773   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 6,956,811      $ 8,001,317      $ 15,064,146      $ 17,025,165      $ 16,264,113      $ 15,266,230      $ 5,486,988      $ 9,224,502   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     387,600        263,504        811,657        800,093        867,277        850,849        379,694        451,113   

Units purchased

     119,057        139,371        73,859        150,797        140,784        136,424        7,003        398   

Units redeemed

     (183,182 )      (15,275 )      (144,962 )      (139,233 )      (69,842 )      (119,996 )      (152,657 )      (71,817 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     323,475        387,600        740,554        811,657        938,219        867,277        234,040        379,694   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    WFVSCG     OVGS3     FTVDM3     TIF3  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ (9,794 )    $ (9,341 )    $ -          $ -          $ -          $ -          $ -          $ -       

Realized gain (loss) on investments

     379,829        331,507        -            6,146,666        -            (178,966 )      -            1,775,372   

Change in unrealized gain (loss) on investments

     (1,417,695 )      (1,095,771 )      -            (6,116,637 )      -            71,446        -            (1,643,703 ) 

Reinvested capital gains

     824,663        582,586        -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (222,997 )      (191,019 )      -            30,029        -            (107,520 )      -            131,669   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     404,723        405,791        -            508,370        -            66,349        -            86,421   

Transfers between funds

     176,013        (576,049 )      -            (19,643,906 )      -            (3,664,829 )      -            (7,161,819 ) 

Surrenders (note 6)

     (261,670 )      (278,690 )      -            (539,824 )      -            (63,055 )      -            (188,743 ) 

Death Benefits (note 4)

     (96,684 )      (23,380 )      -            (25,068 )      -            (6,826 )      -            (6,601 ) 

Net policy repayments (loans) (note 5)

     (37,501 )      (21,407 )      -            (85,734 )      -            (26,931 )      -            11,449   

Deductions for surrender charges (note 2d)

     (49 )      (151 )      -            (891 )      -            (98 )      -            (516 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (131,120 )      (138,708 )      -            (241,619 )      -            (44,799 )      -            (68,450 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (6,287 )      (6,628 )      -            (22,388 )      -            (3,728 )      -            (6,777 ) 

MSP contracts

     (29 )      (27 )      -            (1,933 )      -            (263 )      -            (92 ) 

SL contracts or LSFP contracts

     (1,143 )      (1,110 )      -            (2,849 )      -            (665 )      -            (1,151 ) 

Adjustments to maintain reserves

     62        (27 )      -            497        -            (1 )      -            (95 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     46,315        (640,386 )      -            (20,055,345 )      -            (3,744,846 )      -            (7,336,374 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (176,682 )      (831,405 )      -            (20,025,316 )      -            (3,852,366 )      -            (7,204,705 ) 

Contract owners’ equity beginning of period

     6,377,957        7,209,362        -            20,025,316        -            3,852,366        -            7,204,705   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 6,201,275      $ 6,377,957      $ -          $ -          $ -          $ -          $ -          $ -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     389,785        431,204        -            967,069        -            201,488        -            395,070   

Units purchased

     44,930        50,266        -            22,603        -            4,474        -            5,003   

Units redeemed

     (44,250 )      (91,685 )      -            (989,672 )      -            (205,962 )      -            (400,073 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     390,465        389,785        -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    MIGIC     OGGO     HIBF3     FHISR  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ 28,322      $ 18,472      $ -          $ (7,440 )    $ -          $ 243,100      $ 10,244      $ 234,363   

Realized gain (loss) on investments

     738,759        378,879        -            245,602        -            128,895        23,462        12,368   

Change in unrealized gain (loss) on investments

     (1,017,898 )      (216,992 )      -            (1,093,736 )      -            (21,354 )      152,161        (202,096 ) 

Reinvested capital gains

     297,947        198,422        -            1,263,769        -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     47,130        378,781        -            408,195        -            350,641        185,867        44,635   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     32,802        146,268        -            11,898        -            149,058        109,650        342,536   

Transfers between funds

     (3,469,871 )      (430,420 )      -            (4,395,552 )      -            (10,809,650 )      (4,116,118 )      (113,596 ) 

Surrenders (note 6)

     (20,633 )      (168,220 )      -            (20,928 )      -            (296,168 )      (104,063 )      (206,777 ) 

Death Benefits (note 4)

     -            (11,856 )      -            -            -            (23,683 )      (46,591 )      (16,039 ) 

Net policy repayments (loans) (note 5)

     (23,561 )      (40,003 )      -            3,188        -            68,193        5,676        40,723   

Deductions for surrender charges (note 2d)

     -            (407 )      -            -            -            (429 )      -            (158 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (33,423 )      (146,128 )      -            (42,923 )      -            (141,235 )      (64,465 )      (196,976 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (3,487 )      (14,794 )      -            -            -            (10,657 )      (4,517 )      (14,609 ) 

MSP contracts

     (19 )      (75 )      -            -            -            (267 )      (144 )      (430 ) 

SL contracts or LSFP contracts

     (148 )      (690 )      -            -            -            (2,107 )      (436 )      (1,277 ) 

Adjustments to maintain reserves

     (10 )      14        -            (42 )      -            12        1        10   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (3,518,350 )      (666,311 )      -            (4,444,359 )      -            (11,066,933 )      (4,221,007 )      (166,593 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (3,471,220 )      (287,530 )      -            (4,036,164 )      -            (10,716,292 )      (4,035,140 )      (121,958 ) 

Contract owners’ equity beginning of period

     3,471,220        3,758,750        -            4,036,164        -            10,716,292        4,035,140        4,157,098   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ -          $ 3,471,220      $ -          $ -          $ -          $ -          $ -          $ 4,035,140   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     129,370        156,129        -            125,039        -            588,722        262,020        272,620   

Units purchased

     1,906        6,409        -            371        -            10,343        8,488        28,535   

Units redeemed

     (131,276 )      (33,168 )      -            (125,410 )      -            (599,065 )      (270,508 )      (39,135 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     -            129,370        -            -            -            -            -            262,020   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    GEM3     GIG3     MVRISC     FOSR  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ -          $ 38,274      $ -          $ 86,236      $ 73,528      $ 34,235      $ -          $ 149,760   

Realized gain (loss) on investments

     -            143,427        -            820,978        373,021        385,806        2,938,980        (41,746 ) 

Change in unrealized gain (loss) on investments

     -            (469,408 )      -            (829,620 )      (248,986 )      (651,455 )      (1,887,078 )      (1,146,051 ) 

Reinvested capital gains

     -            -            -            -            -            -            -            3,172   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     -            (287,707 )      -            77,594        197,563        (231,414 )      1,051,902        (1,034,865 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     -            176,345        -            43,348        217        107,797        219,069        743,941   

Transfers between funds

     -            (8,504,376 )      -            (4,227,349 )      (3,009,796 )      (800,616 )      (12,128,561 )      101,466   

Surrenders (note 6)

     -            (109,584 )      -            (130,298 )      (2,478 )      (38,695 )      (156,651 )      (693,243 ) 

Death Benefits (note 4)

     -            (15,161 )      -            (9,858 )      (5,675 )      (105,769 )      (41,811 )      (189,589 ) 

Net policy repayments (loans) (note 5)

     -            29,637        -            4,368        (764 )      (533,375 )      (872 )      (6,352 ) 

Deductions for surrender charges (note 2d)

     -            (330 )      -            (13 )      -            -            (257 )      (1,208 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     -            (102,112 )      -            (36,950 )      (11,603 )      (56,609 )      (151,836 )      (478,496 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     -            (7,945 )      -            (3,638 )      (50 )      (268 )      (14,102 )      (45,583 ) 

MSP contracts

     -            (2,047 )      -            (260 )      -            -            (246 )      (769 ) 

SL contracts or LSFP contracts

     -            (1,214 )      -            (535 )      -            -            (1,303 )      (4,235 ) 

Adjustments to maintain reserves

     -            278        -            1        -            (3 )      253        295   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     -            (8,536,509 )      -            (4,361,184 )      (3,030,149 )      (1,427,538 )      (12,276,317 )      (573,773 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     -            (8,824,216 )      -            (4,283,590 )      (2,832,586 )      (1,658,952 )      (11,224,415 )      (1,608,638 ) 

Contract owners’ equity beginning of period

     -            8,824,216        -            4,283,590        2,832,586        4,491,538        11,224,415        12,833,053   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ -          $ -          $ -          $ -          $ -          $ 2,832,586      $ -          $ 11,224,415   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     -            452,954        -            430,241        288,102        423,329        677,999        711,787   

Units purchased

     -            12,594        -            4,878        12,816        16,854        15,479        64,174   

Units redeemed

     -            (465,548 )      -            (435,119 )      (300,918 )      (152,081 )      (693,478 )      (97,962 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     -            -            -            -            -            288,102        -            677,999   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    GVIX6     NVMIG3     GVDIV3     ACVVS1  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ -          $ 26,047      $ -          $ 194,083      $ -          $ 128,266      $ -          $ (939 ) 

Realized gain (loss) on investments

     -            258,867        -            5,975,888        -            417,375        -            208,032   

Change in unrealized gain (loss) on investments

     -            (261,062 )      -            (5,991,197 )      -            (581,553 )      -            (421,378 ) 

Reinvested capital gains

     -            -            -            -            -            -            -            177,380   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     -            23,852        -            178,774        -            (35,912 )      -            (36,905 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     -            24,173        -            250,196        -            67,956        -            36,911   

Transfers between funds

     -            (1,757,795 )      -            (17,120,971 )      -            (5,511,020 )      -            (1,654,580 ) 

Surrenders (note 6)

     -            (1,973 )      -            (363,368 )      -            (31,743 )      -            -       

Death Benefits (note 4)

     -            -            -            (32,750 )      -            (4,168 )      -            (19,785 ) 

Net policy repayments (loans) (note 5)

     -            468        -            (62,219 )      -            (8,032 )      -            -       

Deductions for surrender charges (note 2d)

     -            -            -            (142 )      -            (188 )      -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     -            (9,335 )      -            (239,683 )      -            (58,810 )      -            (9,425 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     -            (818 )      -            (18,976 )      -            (5,759 )      -            (80 ) 

MSP contracts

     -            (16 )      -            (793 )      -            (61 )      -            251   

SL contracts or LSFP contracts

     -            (633 )      -            (1,762 )      -            (889 )      -            -       

Adjustments to maintain reserves

     -            4        -            3        -            (116 )      -            3   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     -            (1,745,925 )      -            (17,590,465 )      -            (5,552,830 )      -            (1,646,705 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     -            (1,722,073 )      -            (17,411,691 )      -            (5,588,742 )      -            (1,683,610 ) 

Contract owners’ equity beginning of period

     -            1,722,073        -            17,411,691        -            5,588,742        -            1,683,610   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ -          $ -          $ -          $ -          $ -          $ -          $ -          $ -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     -            145,428        -            1,431,105        -            437,468        -            90,579   

Units purchased

     -            2,150        6        23,713        -            6,916        -            2,351   

Units redeemed

     -            (147,578 )      (6 )      (1,454,818 )      -            (444,384 )      -            (92,930 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     -            -            -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2015 and 2014

 

    AMFAS     FTVGI3     CVSSE     0  
    2015     2014     2015     2014     2015     2014     2015     2014  

Investment activity:

                

Net investment income (loss)

   $ (563 )    $ (1,989 )    $ -          $ -          $ -          $ 205      $ -          $ -       

Realized gain (loss) on investments

     (216,041 )      615,917        -            (33,906 )      -            13,924        -            -       

Change in unrealized gain (loss) on investments

     (56,197 )      (749,617 )      -            134,201        -            (41,847 )      -            -       

Reinvested capital gains

     260,397        147,915        -            -            -            25,252        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from
operations

     (12,404 )      12,226        -            100,295        -            (2,466 )      -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     53,035        106,830        -            75,421        -            -            -            -       

Transfers between funds

     (1,593,065 )      (1,359,258 )      -            (10,989,799 )      -            (284,825 )      -            -       

Surrenders (note 6)

     (71,960 )      (79,063 )      -            (184,499 )      -            -            -            -       

Death Benefits (note 4)

     (10,200 )      (8,113 )      -            (2,971 )      -            -            -            -       

Net policy repayments (loans) (note 5)

     (11,060 )      (15,965 )      -            22,772        -            -            -            -       

Deductions for surrender charges (note 2d)

     (77 )      (26 )      -            (167 )      -            -            -            -       

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

     (35,943 )      (44,828 )      -            (104,739 )      -            (780 )      -            -       

Asset charges (note 3):

                

FPVUL & VEL contracts

     (3,123 )      (3,679 )      -            (8,801 )      -            -            -            -       

MSP contracts

     (50 )      (67 )      -            (272 )      -            -            -            -       

SL contracts or LSFP contracts

     (203 )      (339 )      -            (1,286 )      -            -            -            -       

Adjustments to maintain reserves

     (13 )      6        -            5        -            7        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (1,672,659 )      (1,404,502 )      -            (11,194,336 )      -            (285,598 )      -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (1,685,063 )      (1,392,276 )      -            (11,094,041 )      -            (288,064 )      -            -       

Contract owners’ equity beginning of period

     1,685,063        3,077,339        -            11,094,041        -            288,064        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ -          $ 1,685,063      $ -          $ -          $ -          $ -          $ -          $ -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     76,374        145,700        -            535,931        -            11,383        -            -       

Units purchased

     9,390        5,614        -            3,886        -            1,258        -            -       

Units redeemed

     (85,764 )      (74,940 )      -            (539,817 )      -            (12,641 )      -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     -            76,374        -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

See accompanying notes to financial statements.

NATIONWIDE VLI SEPARATE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS

December 31, 2015

 

 

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide VLI Separate Account-4 (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on December 3, 1997. The Account is registered as a unit investment trust under the Investment Company Act of 1940. The Account is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946, Financial Services – Investment Companies. The Company offers Flexible Premium, Modified Single Premium, Variable Executive Life and Survivorship Life Variable Life Insurance Policies through the Account. The primary distribution for contracts is through wholesalers and brokers.

(b) The Contracts

Only contracts with a front-end sales charge and certain other fees are offered for purchase. See note 2 for a discussion of policy charges and note 3 for asset charges.

With certain exceptions, contract owners may invest in the following:

AB FUNDS

VPS Dynamic Asset Allocation Portfolio - Class A (ALVDAA)

AMERICAN CENTURY INVESTORS, INC.

VP Inflation Protection Fund - Class I (ACVIP1)

AMERICAN FUNDS GROUP (THE)

Asset Allocation Fund - Class 2 (AMVAA2)

Bond Fund - Class 2 (AMVBD2)

Global Small Capitalization Fund - Class 2 (AMVGS2)

Growth Fund - Class 2 (AMVGR2)

International Fund - Class 2 (AMVI2)

BLACKROCK FUNDS

Variable Series Funds, Inc. - BlackRock High Yield V.I. Fund- Class I (BRVHYI)

Large Cap Core V.I. Fund - Class II (MLVLC2)

Global Allocation V.I. Fund - Class II (MLVGA2)

CALVERT GROUP

VP S&P 500 Index Portfolio (CVSPIP)

DAVIS FUNDS

Value Portfolio (DAVVL)

DELAWARE GROUP

VIP Emerging Markets Series: Service Class (DWVEMS)

VIP Small Cap Value Series: Service Class (DWVSVS)

DIMENSIONAL FUND ADVISORS INC.

VA International Small Portfolio (DFVIS)

VA U.S. Targeted Value Portfolio (DFVUTV)

DREYFUS CORPORATION

Stock Index Fund, Inc. - Initial Shares (DSIF)

Stock Index Fund, Inc. - Service Shares (DSIFS)*

Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

EATON VANCE FUNDS

Floating-Rate Income Fund (ETVFR)

FIDELITY INVESTMENTS

VIP Freedom Fund 2015 Portfolio: Service Class 2 (FF15S2)*

FRANKLIN TEMPLETON DISTRIBUTORS, INC.

VIP Trust - Templeton Global Bond VIP Fund: Class 1 (FTVGB1)

GOLDMAN SACHS ASSET MANAGEMENT GROUP

Goldman Sachs Global Markets Navigator Fund - Service Shares (GVGMNS)

INVESCO INVESTMENTS

Van Kampen V.I. Mid Cap Growth Fund - Series I Shares (IVKMG1)

Balanced-Risk Allocation Fund: Series I Shares (IVBRA1)

J.P. MORGAN INVESTMENT MANAGEMENT INC.

Mid Cap Value Portfolio: Class 1 (JPMMV1)

Small Cap Core Portfolio 1 (JPSCE1)

Insurance Trust Core Bond Portfolio: Class 1 (OGBDP)*

Insurance Trust Intrepid Mid Cap Portfolio: Class 1 (OGDMP)*

Insurance Trust U.S. Equity Portfolio: Class 1 (OGDEP)*

JANUS FUNDS

Balanced Portfolio: Service Shares (JABS)

Flexible Bond Portfolio: Service Shares (JAFBS)

Forty Portfolio: Service Shares (JACAS)

Global Technology Portfolio: Service Shares (JAGTS)

Overseas Portfolio: Service Shares (JAIGS)

Perkins Mid Cap Value Portfolio: Service Shares (JAMVS)

LAZARD FUNDS

Retirement Emerging Markets Equity Portfolio - Service Shares (LZREMS)

LORD ABBETT FUNDS

Series Fund - Bond Debenture Portfolio - Class VC (LOVBD)

Series Fund - Mid Cap Stock Fund: Class VC (LOVMCV)

Series Fund, Inc. - Total Return Portfolio - Class VC (LOVTRC)

M FUNDS

M Large Cap Value Fund (MFBOV)*

M Capital Appreciation Fund (MFFCA)*

M International Equity Fund (MFBIE)*

M Large Cap Growth Fund (MFTCG)*

MASSACHUSETTS FINANCIAL SERVICES CO.

VIT II - MFS Blended Research Core Equity Portfolio- Service Class (MVBRES)

MFS Bond Portfolio - Service Class (MVBDS)*

Var Insurance Trust II - MFS Investors Growth Stock Portfolio: Initial  Class (MV2IGI)

Var Insurance Trust II - MFS Research International Portfolio: Service  Class (MV2RIS)

Variable Insurance Trust - MFS New Discovery Series - Intital Class  (MNDIC)

New Discovery Series - Service Class (MNDSC)

Value Series - Initial Class (MVFIC)

Value Series - Service Class (MVFSC)

 

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

Variable Insurance Trust II - MFS International Value Portfolio -  Service Class (MVIVSC)

MORGAN STANLEY

Core Plus Fixed Income Portfolio - Class I (MSVFI)

Emerging Markets Debt Portfolio - Class I (MSEM)

Emerging Markets Debt Portfolio - Class II (MSEMB)*

Global Real Estate Portfolio - Class II (VKVGR2)

Mid Cap Growth Portfolio - Class II (MSVMG2)*

Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio- Class  I (MSVMG)

Universal Institutional Funds, Inc. - Growth Portfolio - Class I (MSVEG)

U.S. Real Estate Portfolio - Class I (MSVRE)

NATIONWIDE FUNDS GROUP

NVIT Investor Destinations Managed Growth and Income Class I (IDPGI)*

NVIT Investor Destinations Managed Growth Class I (IDPG)

NVIT Cardinal Managed Growth and Income Class I (NCPGI)*

NVIT Cardinal Managed Growth Class I (NCPG)

NVIT Bond Index Fund Class I (NVBX)

NVIT International Index Fund Class I (NVIX)

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)

American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)

American Funds NVIT Bond Fund - Class II (GVABD2)

American Funds NVIT Global Growth Fund - Class II (GVAGG2)

American Funds NVIT Growth Fund - Class II (GVAGR2)

American Funds NVIT Growth-Income Fund - Class II (GVAGI2)

Federated NVIT High Income Bond Fund - Class I (HIBF)

NVIT Emerging Markets Fund - Class I (GEM)

NVIT International Equity Fund - Class I (GIG)

Variable Insurance Trust: NVIT International Equity Fund - Class VI (NVIE6)

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)

Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)

Neuberger Berman NVIT Socially Responsible Fund - Class II (NVNSR2)*

NVIT Cardinal Aggressive Fund - Class I (NVCRA1)

NVIT Cardinal Balanced Fund - Class I (NVCRB1)

NVIT Cardinal Capital Appreciation Fund - Class I (NVCCA1)

NVIT Cardinal Conservative Fund - Class I (NVCCN1)

NVIT Cardinal Moderate Fund - Class I (NVCMD1)

NVIT Cardinal Moderately Aggressive Fund - Class I (NVCMA1)

NVIT Cardinal Moderately Conservative Fund - Class I (NVCMC1)

NVIT Core Bond Fund - Class I (NVCBD1)

NVIT Core Plus Bond Fund - Class I (NVLCP1)

NVIT Nationwide Fund - Class I (TRF)

NVIT Government Bond Fund - Class I (GBF)

American Century NVIT Growth Fund - Class I (CAF)

NVIT International Index Fund - Class II (GVIX2)

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

NVIT Mid Cap Index Fund - Class I (MCIF)

NVIT Mid Cap Index Fund - Class II (MCIF2)*

NVIT Money Market Fund - Class I (SAM)

NVIT Money Market Fund - Class V (SAM5)

NVIT Multi-Manager International Growth Fund - Class I (NVMIG1)

NVIT Multi-Manager International Value Fund - Class I (GVDIVI)

NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

NVIT Multi-Manager Mid Cap Value Fund - Class I (NVMMV1)

NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)

NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)

NVIT Multi-Manager Small Company Fund - Class I (SCF)

NVIT Multi-Sector Bond Fund - Class I (MSBF)

NVIT Short Term Bond Fund - Class I (NVSTB1)

NVIT Short Term Bond Fund - Class II (NVSTB2)

NVIT Large Cap Growth Fund - Class I (NVOLG1)

Templeton NVIT International Value Fund - Class III (NVTIV3)

Invesco NVIT Comstock Value Fund - Class I (EIF)

NVIT Real Estate Fund - Class I (NVRE1)

Loring Ward NVIT Capital Appreciation Fund - Class P (NVLCAP)

Loring Ward NVIT Moderate Fund - Class P (NVLMP)

NVIT Small Cap Index Fund Class II (NVSIX2)

NVIT S&P 500 Index Fund Class I (GVEX1)

NORTHERN LIGHTS

TOPS Managed Risk Balanced ETF Portfolio - Class 3 (NOTB3)

TOPS Managed Risk Growth ETF Portfolio - Class 3 (NOTG3)*

TOPS Managed Risk Moderate Growth ETF Portfolio - Class 3 (NOTMG3)

PORTFOLIOS OF THE ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC

VPS Growth and Income Portfolio - Class A (ALVGIA)

VPS Growth and Income Portfolio - Class B (ALVGIB)*

VPS International Value Portfolio - Class A (ALVIVA)

VPS International Value Portfolio - Class B (ALVIVB)*

VPS Small/Mid Cap Value Portfolio - Class A (ALVSVA)

VPS Small/Mid Cap Value Portfolio - Class B (ALVSVB)*

PORTFOLIOS OF THE AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

VP Capital Appreciation Fund - Class I (ACVCA)

VP Income & Growth Fund - Class I (ACVIG)

 

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

VP Inflation Protection Fund - Class II (ACVIP2)

VP International Fund - Class I (ACVI)

VP Mid Cap Value Fund - Class I (ACVMV1)

VP Mid Cap Value Fund - Class II (ACVMV2)*

VP Ultra(R) Fund - Class I (ACVU1)

VP Value Fund - Class I (ACVV)

VP Value Fund - Class II (ACVV2)*

PORTFOLIOS OF THE DREYFUS INVESTMENT PORTFOLIOS

MidCap Stock Portfolio - Initial Shares (DVMCS)

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

PORTFOLIOS OF THE DREYFUS VARIABLE INVESTMENT FUND

Appreciation Portfolio - Initial Shares (DCAP)

Appreciation Portfolio - Service Shares (DCAPS)*

Opportunistic Small Cap Portfolio: Initial Shares (DSC)

International Value Portfolio - Initial Shares (DVIV)

PORTFOLIOS OF THE DWS INVESTMENTS VARIABLE INSURANCE TRUST

Small Cap Index VIP - Class A (BISCI)*

Variable Series II - DWS Small Mid Cap Value VIP - Class B  (SVSSVB)

Variable Series II - DWS Large Cap Value VIP - Class B (SVSLVB)

PORTFOLIOS OF THE FEDERATED INSURANCE SERIES

Managed Tail Risk Fund II: Primary Shares (FVCA2P)

Quality Bond Fund II - Primary Shares (FQB)

Quality Bond Fund II - Service Shares (FQBS)*

PORTFOLIOS OF THE FIDELITY(R) VARIABLE INSURANCE PRODUCTS

VIP Contrafund(R) Portfolio - Service Class (FCS)

VIP Energy Portfolio - Service Class 2 (FNRS2)

VIP Equity-Income Portfolio - Service Class (FEIS)

VIP Equity-Income Portfolio - Service Class 2 (FEI2)*

VIP Freedom Fund 2010 Portfolio - Service Class (FF10S)

VIP Freedom Fund 2020 Portfolio - Service Class (FF20S)

VIP Freedom Fund 2020 Portfolio - Service Class 2 (FF20S2)*

VIP Freedom Fund 2030 Portfolio - Service Class (FF30S)

VIP Freedom Fund 2030 Portfolio - Service Class 2 (FF30S2)*

VIP Freedom Income Fund Portfolio - Service Class (FFINS)

VIP Growth & Income Portfolio - Service Class (FGIS)*

VIP Growth Opportunities Portfolio - Service Class (FGOS)

VIP Growth Portfolio - Service Class (FGS)

VIP Growth Portfolio - Service Class 2 (FG2)*

VIP High Income Portfolio - Service Class (FHIS)

VIP Index 500 Portfolio - Initial Class (FIP)

VIP Investment Grade Bond Portfolio - Service Class (FIGBS)

VIP Investment Grade Bond Portfolio - Service Class 2 (FIGBP2)*

VIP Mid Cap Portfolio - Service Class (FMCS)

VIP Mid Cap Portfolio - Service Class 2 (FMC2)*

VIP Overseas Portfolio - Service Class (FOS)

VIP Value Strategies Portfolio - Service Class (FVSS)

VIP Fidelity VIP Freedom Fund 2005 Portfolio - Service Class (FF05S)

VIP Fidelity VIP Freedom Fund 2015 Portfolio - Service Class (FF15S)

VIP Fidelity VIP Freedom Fund 2025 Portfolio - Service Class (FF25S)

VIP Fidelity VIP Freedom Fund 2025 Portfolio - Service Class 2  (FF25S2)*

VIP Fidelity VIP Freedom Fund 2040 Portfolio - Service Class (FF40S)

VIP Fidelity VIP Freedom Fund 2040 Portfolio - Service Class 2  (FF40S2)*

PORTFOLIOS OF THE FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRU

Franklin Income Securities Fund - Class 2 (FTVIS2)

Rising Dividends Securities Fund - Class 1 (FTVRDI)

Small Cap Value Securities Fund - Class 1 (FTVSVI)

Small Cap Value Securities Fund - Class 2 (FTVSV2)

Mutual Global Discovery Securities Fund - Class 2 (FTVMD2)

Templeton Developing Markets Securities Fund - Class 2 (FTVDM2)

Templeton Foreign Securities Fund - Class 1 (TIF)

Templeton Foreign Securities Fund - Class 2 (TIF2)

Templeton Global Bond Securities Fund - Class 2 (FTVGI2)

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

PORTFOLIOS OF THE GOLDMAN SACHS VARIABLE INSURANCE TRUST

Mid Cap Value- Institutional Shares (GVMCE)

Goldman Sachs Structured Small Cap Equity Fund (GVCSE)

VIT Growth Opportunities Fund - Service Shares (GVGOPS)

PORTFOLIOS OF THE LEGG MASON PARTNERS VARIABLE EQUITY TRUST

ClearBridge Variable Small Cap Growth Portfolio - Class I (SBVSG)

PORTFOLIOS OF THE LINCOLN VARIABLE INSURANCE PRODUCTS TRUST

Baron Growth Opportunities Fund Service Class (BNCAI)

PORTFOLIOS OF THE NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST

Short Duration Bond Portfolio - I Class Shares (AMTB)

Guardian Portfolio - I Class Shares (AMGP)

International Portfolio - S Class Shares (AMINS)

Mid-Cap Growth Portfolio - I Class Shares (AMCG)

Mid-Cap Growth Portfolio - S Class Shares (AMMCGS)

Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

Advisers Management Trust: Mid Cap Intrinsic Value Portfolio - Class I  (AMRI)

Advisers Management Trust: Mid Cap Intrinsic Value Portfolio - Class S  (AMRS)*

Socially Responsive Portfolio - I Class Shares (AMSRS)

PORTFOLIOS OF THE OPPENHEIMER VARIABLE ACCOUNT FUNDS

Oppenheimer Capital Appreciation Fund/VA - Service Class (OVCAFS)*

Capital Appreciation Fund/VA - Non-Service Shares (OVGR)

Global Securities Fund/VA - Non-Service Shares (OVGS)

Global Securities Fund/VA - Service Class (OVGSS)*

International Growth Fund/VA - Non-Service Shares (OVIG)

Main Street Fund(R)/VA - Non-Service Shares (OVGI)

Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)

 

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

Discovery Mid Cap Growth Fund/VA - Non-Service Shares (OVAG)

Global Strategic Income Fund/VA: Non-service Shares (OVSB)

PORTFOLIOS OF THE PIMCO VARIABLE INSURANCE TRUST

All Asset Portfolio - Administrative Class (PMVAAA)

CommodityRealReturn(R) Strategy Portfolio - Administrative Class (PMVRSA)

Foreign Bond Portfolio (Unhedged) - Administrative Class (PMVFBA)

Long-Term U.S. Government Portfolio - Administrative Class (PMVLGA)

Low Duration Portfolio - Administrative Class (PMVLDA)

Real Return Portfolio - Administrative Class (PMVRRA)

Total Return Portfolio - Administrative Class (PMVTRA)

PORTFOLIOS OF THE PIONEER VARIABLE CONTRACTS TRUST

Pioneer Emerging Markets VCT Portfolio - Class I Shares (PIVEMI)

Pioneer High Yield VCT Portfolio - Class I Shares (PIHYB1)

Pioneer High Yield VCT Portfolio - Class II Shares (PIHYB2)*

PORTFOLIOS OF THE PUTNAM VARIABLE TRUST

VT Growth & Income Fund: Class IB (PVGIB)

VT International Equity Fund: Class IB (PVTIGB)

VT Small Cap Value Fund: Class IB (PVTSCB)

VT Voyager Fund: Class IB (PVTVB)

PORTFOLIOS OF THE INVESCO INVESTMENTS TRUST

VI American Franchise Fund - Series II Shares (ACEG2)*

VI Growth and Income Fund - Series I Shares (ACGI)

VI Growth and Income Fund - Series II Shares (VKLGI2)*

VI American Value Fund: Series I Shares (MSVMV)*

VI American Franchise Fund - Series I Shares (ACEG)

VI Value Opportunities Fund - Series I Shares (AVBVI)

VI High Yield Fund - Series I Shares (AVHY1)

VI International Growth Fund - Series I Shares (AVIE)

VI Mid Cap Core Equity Fund: Series I Shares (AVMCCI)

VI Small Cap Equity Fund - Series I Shares (AVSCE)

ROYCE CAPITAL FUNDS

Micro-Cap Portfolio - Investment Class (ROCMC)

Small-Cap Portfolio - Investment Class (ROCSC)*

GUGGENHEIM INVESTMENTS

Variable Fund - Multi-Hedge Strategies (RVARS)

T. ROWE PRICE

Blue Chip Growth Portfolio - II (TRBCG2)*

Equity Income Portfolio - II (TREI2)

Health Sciences Portfolio - II (TRHS2)

Limited-Term Bond Portfolio (TRLT1)

Limited-Term Bond Portfolio - II (TRLT2)

Mid-Cap Growth Portfolio - II (TRMCG2)

New America Growth Portfolio (TRNAG1)

Personal Strategy Balanced Portfolio (TRPSB1)

Blue Chip Growth Portfolio (TRBCGP)

VAN ECK ASSOCIATES CORPORATION

VIP Trust Emerging Markets Fund - Initial Class (VWEM)

VIP Trust Global Hard Assets Fund - Initial Class (VWHA)

VANGUARD GROUP OF INVESTMENT COMPANIES

Variable Insurance Fund - Balanced Portfolio (VVB)

Insurance Fund - Capital Growth Portfolio (VVCG)

Variable Insurance Fund - Diversified Value Portfolio (VVDV)

Variable Insurance Fund - International Portfolio (VVI)

Variable Insurance Fund - Mid-Cap Index Portfolio (VVMCI)

Variable Insurance Fund - REIT Index Portfolio (VVREI)

Variable Insurance Fund - Short-Term Investment-Grade Portfolio (VVSTC)

Variable Insurance Fund - Small Company Growth Portfolio (VVSCG)

Variable Insurance Fund - Total Bond Market Index Portfolio (VVHGB)

WADDELL & REED, INC.

Variable Insurance Portfolios - Asset Strategy (WRASP)

Variable Insurance Portfolios - Growth (WRGP)

Variable Insurance Portfolios - High Income (WRHIP)

Variable Insurance Portfolios - Mid Cap Growth (WRMCG)

Variable Insurance Portfolios - Real Estate Securities (WRRESP)

Variable Insurance Portfolios - Science and Technology (WRSTP)

WELLS FARGO FUNDS

Advantage VT Discovery Fund (SVDF)

Advantage VT Opportunity Fund - Class 2 (SVOF)

Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)

 

  * At December 31, 2015, contract owners were not invested in this fund.

The contract owners’ equity is affected by the investment results of each fund, equity transactions by contract owners and certain policy and asset charges (see notes 2 and 3). The accompanying financial statements include only contract owners’ purchase payments pertaining to the variable portions of their contracts and exclude any purchase payments for fixed dollar benefits, the latter being included in the accounts of the Company.

A contract owner may choose from among a number of different underlying mutual fund options. The underlying mutual fund options are not available to the general public directly. The underlying mutual funds are available as investment options in variable life insurance policies issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans.

Some of the underlying mutual funds have been established by investment advisers which manage publicly traded mutual funds having similar names and investment objectives. While some of the underlying mutual funds may be similar to, and may in fact be modeled after, publicly traded mutual funds, the underlying mutual funds are not otherwise directly related to any publicly traded mutual fund. Consequently, the investment performance of publicly traded mutual funds and any corresponding underlying mutual funds may differ substantially.

A purchase payment could be presented as a negative equity transaction in the Statements of Changes in Contract Owners’ Equity if a prior period purchase payment is refunded to a contract owner due to a contract cancellation during the free look period, and/or if a gain is realized by the contract owner during the free look period.

The Company allocates purchase payments to sub-accounts and/or the fixed account as instructed by the contract owner. Shares of the sub-accounts are purchased at Net Asset Value, then converted into accumulation units. Certain transactions may be subject to conditions imposed by the underlying mutual funds, as well as those set forth in the contract.

 

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

(c) Security Valuation, Transactions and Related Investment Income

Investments in underlying mutual funds are valued at the closing net asset value per share at December 31, 2015 of such funds. The cost of investments sold is determined on a first in - first out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed), and dividends and capital gain distributions are accrued as of the ex-dividend date and are reinvested in the underlying mutual funds.

(d) Federal Income Taxes

Operations of the Account form a part of, and are taxed with, operations of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code. The Company does not provide for income taxes within the Account. Taxes are generally the responsibility of the contract owner upon termination or withdrawal.

(e) Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S. generally accepted accounting principles may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(f) Recently Issued Accounting Standards

There are no recently issued accounting standards applicable to the Account.

(g) Subsequent Events

The Company evaluated subsequent events through the date the financial statements were issued with the Securities Exchange Commission (SEC), and no subsequent events have occurred requiring accrual or disclosure.

(2) Policy Charges

(a) Deductions from Premium

For individual flexible premium and survivorship contracts, the Company deducts a minimum of 4.0% to a maximum of 8.5% of all premiums received to cover premium tax and sales expense. The Company may, at its sole discretion, reduce the sales loading portion of the premium load.

There are no deductions from premium on modified single premium contracts.

For the Corporate Series, the Company deducts a front-end sales load from each premium payment received to compensate us for our sales expenses and premium taxes, and certain actual expenses, including acquisition costs. The Company may reduce this charge where the size or nature of the group results in savings in sales, underwriting, or administrative costs. Variations due to differences in costs are determined in a manner not unfairly discriminatory to policy owners.

For Future Corporate Flexible Premium Variable Universal Life this charge is guaranteed not to exceed 12% from each premium payment received.

For Future Executive Flexible Premium Variable Universal Life this charge is guaranteed not to exceed 12% (5.5% starting in the sixth policy year) from each premium payment received.

For Next Generation Corporate Owned Flexible Premium Variable Universal Life this charge is guaranteed not to exceed 10% from each premium payment received.

For the periods ended December 31, 2015 and 2014, total front-end sales charge deductions were $11,857,145 and $ 12,292,497, respectively and were recognized as a reduction of purchase payments on the Statement of Changes in Contract Owners’ Equity.

(b) Cost of Insurance

A cost of insurance charge is assessed monthly against each contract by liquidating units. The amount of the charge varies widely and is based upon age, sex, rate class and net amount at risk (death benefit less total contract value).

(c) Administrative Charges

For The Best of America® Next Generation, ChoiceLifeSM and all flexible premium survivorship contracts, the Company currently deducts a minimum monthly administration charge (for ProtectionSM flexible premium contracts this is known as the “monthly expense charge”) of $5 per policy month to a maximum of $10 per policy month to recover policy maintenance, accounting, record keeping and other administrative expenses. These charges are assessed monthly against each contract by liquidating units. For The Best of America® Last Survivorship II and The Best of America® ChoiceLife Survivorship Life contracts, there is an additional administrative (per specified amount) charge assessed to reimburse us for sales, underwriting, distribution and issuance costs. This charge is deducted from the policy’s Cash Value. During the first ten years from the Policy Date, the current monthly charge is $0.04 per $1,000 of Specified Amount, subject to a minimum charge of $20 and a maximum charge of $80 per month. These rates represent the maximum guaranteed charge for all years. After the tenth year from the Policy Date, the current monthly charge is $0.02 per $1,000 of Specified Amount with a $10 minimum and $40 maximum charge.

For The Best of America® ChoiceLifeSM Survivorship II, Next GenerationSM Survivorship Life, The Best of America® Protection Survivorship Life and The Best of America® ChoiceLifeSM Protection contracts, the Company deducts a per $1,000 of specified amount charge for the first 3 policy years. This charge varies with the age of the insured and will not exceed $0.40 per $1,000 of Specified Amount. These charges are assessed monthly against each contract by liquidating units.

For modified single preimum contracts, for all states other than New York, the Company currently deducts a minimum monthly administration charge of $10 per policy per month. The actual charge is determined by multiplying 0.30% on an annualized basis by the policy’s cash value. This charge may be reduced to 0.15% on an annualized basis for policy years 11 and later. In New York, this charge is assessed in all policy years, with a maximum charge of $7.50 per month. These charges are assessed monthly against each contract by liquidating units.

For ProtectionSM flexible premium contracts, the Company deducts a policy expense per $1,000 of specified amount charge for the first two policy years. This charge varies with the age of the insured and will not exceed $0.30 per $1,000 of specified amount. For last survivor contracts, the Company deducts a per $1,000 of specified amount charge for the first 3 policy years. This charge varies with the age of the insured and will not exceed $0.40 per $1,000 of specified amount. These charges are assessed monthly against each contract by liquidating units.

For the Corporate Series, the Company deducts a monthly administrative expense charge to recover policy maintenance, accounting, record keeping and other administrative expenses. These charges are assessed against each contract by liquidating units. Currently, this monthly charge $5 per policy in all policy years (guaranteed not to exceed $10 per policy). We also deduct a per $1,000 of specified amount charge to compensate us for sales, underwriting, distribution and issuance of the policy. This charge is assessed monthly against each contract by liquidating units. This charge varies depending on the total specified amount. For Future Corporate Flexible Premium Variable Universal Life, the Company deducts a per $1,000 of specified amount that will not exceed $0.40 per $1,000 of specified amount, unless the policy is issued in the state of New York with an application signed on or after January 2, 2010, where the maximum guaranteed charge is $0.085 of specified amount. For Next Generation Corporate Owned Flexible Premium Variable Universal Life and Future Executive Corporate Flexible Premium Variable Universal Life the Company deducts a per $1,000 of specified amount charge that will not exceed $0.40 per $1,000 of specified amount.

 

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

(d) Surrender Charges

Policy surrenders result in a redemption of the contract value from the Account and payment of the surrender proceeds to the contract owner or designee. The surrender proceeds consist of the contract value, less any outstanding policy loans, and less a surrender charge, if applicable. The amount of the charge is based upon a specified percentage of the initial surrender charge which varies by issue age, sex and rate class. For individual flexible premium, flexible premium survivorship and modified single premium and corporate contracts (such as Variable Executive Life), the charge is 100% of the initial surrender charge in the first year, and declines a specified amount in subsequent years to 0% of the initial surrender charge in the ninth year or later. The Company may waive the surrender charge for certain contracts in which the sales expenses normally associated with the distribution of a contract are not incurred. The charges are assessed against each contract by liquidating units.

For the Corporate Series, contracts do not currently assess surrender charges.

(3) Asset Charges

The Company deducts a charge related to the assumption of mortality and expense risk.

(a) Modified Single Premium Contracts (MSP)

For modified single premium contracts, the Company deducts a charge equal to an annualized rate of 0.70% of the cash surrender value of the sub-accounts. In policy years 1- 10, the Company also deducts a charge equal to the annualized rate of 0.50% of the cash surrender value of the sub-accounts to remiburse us for taxes imposed by federal, state and local governments. These charges are assessed monthly against each contract by liquidating units.

(b) Flexible Premium and Variable Executive Life Contracts (FPVUL and VEL)

For Best of America® The Next Generation and ChoiceLifeSM contracts, during the first fifteen policy years, the Company deducts a charge of $0.50 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account, $0.25 per $1,000 on $25,001 up to $250,000 of cash surrender value attributable to the variable account and $0.08 per $1,000 over $250,000 of cash surrender value attributable to the variable account. Beginning in policy year sixteen, the Company deducts a charge of $0.50 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account, and $0.08 per $1,000 over $25,000 of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units. For Choice Life ProtectionSM contracts and Best of America® ProtectionSM contracts, the Company deducts $0.66 per $1,000 of cash surrender value attributable to the variable account during the first through fifteenth years from the Policy Date. Thereafter, this charge is $0.25 per $1,000 of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

(c) Survivorship Life Contracts (SL)

For The Best of America® Last Survivorship II and The Best of America® ChoiceLife Survivorship contracts, during the first ten policy years, the Company deducts a charge of $0.46 per $1,000 on the cash surrender value attributable to the variable account. After ten years from the Policy Date, the Company deducts $0.46 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account; $0.29 per $1,000 on $25,001 up to $99,999 of cash surrender value attributable to the variable account; and $0.17 per $1,000 on $100,000 or more of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

For The Best of America® ChoiceLifeSM Survivorship II and Next GenerationSM Survivorship Life contracts, during the first fifteen policy years, the Company deducts a charge of $0.50 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account; $0.25 per $1,000 on $25,001 up to $250,000 of cash surrender value attributable to the variable account; and $0.08 per $1,000 over $250,000 of cash surrender value attributable to the variable account. After fifteen years from the Policy Date, the Company deducts $0.50 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account and $0.08 per $1,000 over $25,000 of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

For The Best of America® ProtectionSM Survivorship and ChoiceLife ProtectionSM Survivorship Life contracts, during the first fifteen policy years, the Company deducts a charge of $0.66 per $1,000 of cash surrender value attributable to the variable account. After fifteen years from the Policy Date, the Company deducts $0.25 per $1,000 of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

(d) Corporate Contracts (LSFP)

For Future Corporate Flexible Premium variable Universal Life, the Company deducts a charge guaranteed not to exceed an annualized rate of 0.90% of the daily net assets of the Account for policies issued on or after January 1, 2009. This charge is guaranteed not to exceed an annualized rate of 0.75% of the daily net assets of the Account for policies issued prior to January 1, 2009. Currently, this rate is 0.25% during the first through fourth policy years, 0.20% during the fifth through fifteenth policy years, and 0.10% thereafter. This charge is assessed monthly against each contract by liquidating units.

For Future Executive Corporate Flexible Premium Variable Universal Life, the Company deducts a charge guaranteed not to exceed an annualized rate of 0.90% of the daily net assets of the Account. Currently, this rate is 0.25% during the first through fourth policy years, 0.20% during the fifth through fifteenth policy years, and 0.10% thereafter. This charge is assessed monthly against each contract by liquidating units.

For Next Generation Corporate Owned Flexible Premium Variable Universal Life, the Company deducts a charge guaranteed not to exceed an annualized rate of 1.25% of the daily net assets of the Account. Currently, this rate will not exceed 0.60%. This charge is assessed monthly against each contract by liquidating units.

The Company may reduce or eliminate certain charges where the size or nature of the group results in savings in sales, underwriting, administrative or other costs to the Company. These charges may be reduced in certain group sponsored arrangements or special exchange programs made available by the Company.

(4) Death Benefits

Death benefit proceeds result in a redemption of the contract value from the Account and payment of those proceeds, less any outstanding policy loans (and policy charges), to the legal beneficiary. For last survivor flexible premium contracts, the proceeds are payable on the death of the last surviving insured. In the event that the guaranteed death benefit exceeds the contract value on the date of death, the excess is paid by the Company’s general account.

 

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

(5) Policy Loans (Net of Repayments)

Contract provisions allow contract owners to borrow 90% of a policy’s variable cash surrender value plus 100% of a policy’s fixed cash surrender value less applicable value of surrender charge. Interest is charged on the outstanding loan and is due and payable in advance on the policy anniversary. At the time the loan is granted, the amount of the loan is transferred from the Account to the Company’s general account as collateral for the outstanding loan. Collateral amounts in the general account are credited with the stated rate of interest in effect at the time the loan is made, subject to a guaranteed minimum rate. Interest credited is paid by the Company’s general account to the Account. Loan repayments result in a transfer of collateral including interest credited back to the Account.

(6) Related Party Transactions

The Company performs various services on behalf of the mutual fund companies in which the Account invests and may receive fees for the services performed. These services include, among other things, shareholder communications, postage, fund transfer agency and various other record keeping and customer service functions. These fees are paid to an affiliate of the Company.

Contract owners may, with certain restrictions, transfer their assets between the Account and a fixed dollar contract (fixed account) maintained in the accounts of the Company. These transfers are the result of the contract owner executing fund exchanges. Fund exchanges from the Account to the fixed account are included in surrenders, and fund exchanges from the fixed account tothe Account are included in purchase payments received from contract owners, as applicable, on the accompanying Statements of Change in Contract Owner’s Equity. Policy loan transactions (note 5), executed at the direction of the contract owner, also result in transfers between the Account and the fixed account of the Company, but are included in Net Policy (Loans) Repayments. The fixed account assets are not reflected in the accompanying financial statements. For the periods ended December 31, 2015 and 2014, total transfers into the Account from the fixed account were $46,415,343 and $50,889,251, respectively, and total transfers from the Account to the fixed account were $92,646,180 and $72,081,458, respectively.

(7) Fair Value Measurement

FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Account generally uses the market approach as the valuation technique due to the nature of the mutual fund investments offered in the Account. This technique maximizes the use of observable inputs and minimizes the use of unobservable inputs.

In accordance with FASB ASC 820, the Account categorized its financial instruments into a three level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety.

The Account categorizes financial assets recorded at fair value as follows:

 

  •  

Level 1 – Unadjusted quoted prices accessible in active markets and mutual funds where the value per share (unit) is determined and published and is the basis for current transactions for identical assets or liabilities at the measurement date.

 

  •  

Level 2 – Unadjusted quoted prices for similar assets or liabilities in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means.

 

  •  

Level 3 – Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate about the assumptions market participants would use at the measurement date in pricing the asset or liability. Consideration is given to the risk inherent in both the method of valuation and the valuation inputs.

The Account recognizes transfers between fair value hierarchy levels at the reporting period end. There were no transfers between Level 1 and 2 as of December 31, 2015.

The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2015:

 

     Level 1      Level 2      Level 3      Total  

Separate Account Investments

    $ 4,526,556,586       $ -           $ -           $ 4,526,556,586   

The cost of purchases and proceeds from sales of investments for the year ended December 31, 2015 are as follows:

 

     Purchases of
Investments		      Sales of
Investments		  

VPS Dynamic Asset Allocation Portfolio - Class A (ALVDAA)

    $ 33,251       $ 11,552   

VP Inflation Protection Fund - Class I (ACVIP1)

      6,124,117         1,084,153   

Asset Allocation Fund - Class 2 (AMVAA2)

      2,912,191         553,514   

Bond Fund - Class 2 (AMVBD2)

      2,597,336         752,064   

Global Small Capitalization Fund - Class 2 (AMVGS2)

      772,913         1,712,269   

Growth Fund - Class 2 (AMVGR2)

      7,978,614         13,434,542   

International Fund - Class 2 (AMVI2)

      2,561,324         1,399,744   

Variable Series Funds, Inc. - BlackRock High Yield V.I. Fund- Class I (BRVHYI)

      4,294,423         873,148   

Large Cap Core V.I. Fund - Class II (MLVLC2)

      1,675,977         2,541,002   

Global Allocation V.I. Fund - Class II (MLVGA2)

      2,076,679         2,709,979   

VP S&P 500 Index Portfolio (CVSPIP)

      2,547,268         2,430,553   

Value Portfolio (DAVVL)

      774,117         799,336   

VIP Emerging Markets Series: Service Class (DWVEMS)

      1,315,912         167,510   

VIP Small Cap Value Series: Service Class (DWVSVS)

      5,989,370         5,130,298   

VA International Small Portfolio (DFVIS)

      1,454,400         340,081   

VA U.S. Targeted Value Portfolio (DFVUTV)

      2,543,581         241,345   

Stock Index Fund, Inc. - Initial Shares (DSIF)

      76,707,331         57,300,103   

Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

      2,077,151         1,834,565   

Floating-Rate Income Fund (ETVFR)

      8,830,076         9,509,900   

VIP Trust - Templeton Global Bond VIP Fund: Class 1 (FTVGB1)

      7,015,746         4,132,177   

Goldman Sachs Global Markets Navigator Fund - Service Shares (GVGMNS)

      20,892         29,565   

Van Kampen V.I. Mid Cap Growth Fund - Series I Shares (IVKMG1)

      1,974,238         1,543,722   

Balanced-Risk Allocation Fund: Series I Shares (IVBRA1)

      371,798         36,918   

Mid Cap Value Portfolio: Class 1 (JPMMV1)

      9,436,632         2,692,604   

Small Cap Core Portfolio 1 (JPSCE1)

      44,016         565   

Balanced Portfolio: Service Shares (JABS)

      7,548,198         5,979,928   

Flexible Bond Portfolio: Service Shares (JAFBS)

      17,198,893         8,872,122   

Forty Portfolio: Service Shares (JACAS)

      13,860,035         8,924,393   

Global Technology Portfolio: Service Shares (JAGTS)

      4,374,134         4,283,714   

Overseas Portfolio: Service Shares (JAIGS)

      3,008,288         7,680,935   

Perkins Mid Cap Value Portfolio: Service Shares (JAMVS)

      893,541         556,197   

 

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

Retirement Emerging Markets Equity Portfolio - Service Shares (LZREMS)

    $ 11,705,329       $ 6,125,902   

Series Fund - Bond Debenture Portfolio - Class VC (LOVBD)

      381,984         53,543   

Series Fund - Mid Cap Stock Fund: Class VC (LOVMCV)

      239,429         1,255,425   

Series Fund, Inc. - Total Return Portfolio - Class VC (LOVTRC)

      7,547,824         500,338   

VIT II - MFS Blended Research Core Equity Portfolio- Service Class (MVBRES)

      1,151,140         272,016   

Var Insurance Trust II - MFS Investors Growth Stock Portfolio: Initial Class (MV2IGI)

      3,713,607         525,621   

Var Insurance Trust II - MFS Research International Portfolio: Service Class (MV2RIS)

      3,501,766         327,254   

Variable Insurance Trust - MFS New Discovery Series - Intital Class (MNDIC)

      110,097         221,552   

New Discovery Series - Service Class (MNDSC)

      322,481         1,052,017   

Value Series - Initial Class (MVFIC)

      2,291,379         1,544,866   

Value Series - Service Class (MVFSC)

      18,458,193         7,471,185   

Variable Insurance Trust II - MFS International Value Portfolio - Service Class (MVIVSC)

      22,741,605         10,167,656   

Core Plus Fixed Income Portfolio - Class I (MSVFI)

      403,034         443,368   

Emerging Markets Debt Portfolio - Class I (MSEM)

      3,346,470         6,113,574   

Global Real Estate Portfolio - Class II (VKVGR2)

      1,891,613         1,228,495   

Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio- Class I (MSVMG)

      4,239,862         5,782,988   

Universal Institutional Funds, Inc. - Growth Portfolio - Class I (MSVEG)

      431,806         291,079   

U.S. Real Estate Portfolio - Class I (MSVRE)

      5,462,826         5,759,620   

NVIT Investor Destinations Managed Growth and Income Class I (IDPGI)

      23         24   

NVIT Investor Destinations Managed Growth Class I (IDPG)

      47,789         1,230   

NVIT Cardinal Managed Growth Class I (NCPG)

      6,203         2,570   

NVIT Bond Index Fund Class I (NVBX)

      42,732,849         2,207,631   

NVIT International Index Fund Class I (NVIX)

      13,756,409         4,322,858   

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)

      6,173,230         3,390,565   

American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)

      1,862,812         923,988   

American Funds NVIT Bond Fund - Class II (GVABD2)

      163,768         184,701   

American Funds NVIT Global Growth Fund - Class II (GVAGG2)

      2,461,726         748,156   

American Funds NVIT Growth Fund - Class II (GVAGR2)

      836,127         1,272,434   

American Funds NVIT Growth-Income Fund - Class II (GVAGI2)

      374,309         519,939   

Federated NVIT High Income Bond Fund - Class I (HIBF)

      6,591,829         5,836,626   

NVIT Emerging Markets Fund - Class I (GEM)

      1,513,133         2,054,291   

NVIT International Equity Fund - Class I (GIG)

      8,421,119         4,480,952   

Variable Insurance Trust: NVIT International Equity Fund - Class VI (NVIE6)

      8,636         46,061   

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)

      1,613,454         1,783,866   

Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)

      97,806         115,852   

NVIT Cardinal Aggressive Fund - Class I (NVCRA1)

      1,902,019         2,069,451   

NVIT Cardinal Balanced Fund - Class I (NVCRB1)

      13,951,318         3,110,844   

NVIT Cardinal Capital Appreciation Fund - Class I (NVCCA1)

      2,069,481         2,784,872   

NVIT Cardinal Conservative Fund - Class I (NVCCN1)

      1,752,807         2,913,146   

NVIT Cardinal Moderate Fund - Class I (NVCMD1)

      1,946,404         1,810,913   

NVIT Cardinal Moderately Aggressive Fund - Class I (NVCMA1)

      1,689,856         1,203,982   

NVIT Cardinal Moderately Conservative Fund - Class I (NVCMC1)

      2,362,790         887,577   

NVIT Core Bond Fund - Class I (NVCBD1)

      823,934         782,408   

NVIT Core Plus Bond Fund - Class I (NVLCP1)

      1,010,037         982,326   

NVIT Nationwide Fund - Class I (TRF)

      15,376,594         5,202,807   

NVIT Government Bond Fund - Class I (GBF)

      8,724,429         16,386,636   

American Century NVIT Growth Fund - Class I (CAF)

      2,790,992         1,813,720   

NVIT International Index Fund - Class II (GVIX2)

      440,307         451,417   

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

      2,321,571         4,383,253   

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

      457,720         831,771   

NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)

      184,776         82,363   

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

      4,258,515         4,496,623   

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

      8,344,401         10,531,699   

NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

      7,595,252         8,147,220   

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

      2,041,336         2,131,660   

NVIT Mid Cap Index Fund - Class I (MCIF)

      25,243,976         10,392,146   

NVIT Money Market Fund - Class I (SAM)

      16,703,841         25,522,050   

NVIT Money Market Fund - Class V (SAM5)

      113,362,700         110,618,644   

NVIT Multi-Manager International Growth Fund - Class I (NVMIG1)

      1,943,169         1,397,782   

NVIT Multi-Manager International Value Fund - Class I (GVDIVI)

      557,447         902,652   

NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

      1,911,964         1,604,944   

NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

      11,875,117         1,718,770   

NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

      17,685,947         3,204,316   

NVIT Multi-Manager Mid Cap Value Fund - Class I (NVMMV1)

      571,551         264,587   

NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)

      2,589,320         3,147,016   

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)

      6,295,367         2,457,512   

NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)

      9,343,768         3,902,900   

NVIT Multi-Manager Small Company Fund - Class I (SCF)

      6,646,722         6,106,994   

NVIT Multi-Sector Bond Fund - Class I (MSBF)

      1,834,956         2,080,576   

NVIT Short Term Bond Fund - Class I (NVSTB1)

      6,664,304         16,802,710   

NVIT Short Term Bond Fund - Class II (NVSTB2)

      553,045         853,516   

NVIT Large Cap Growth Fund - Class I (NVOLG1)

      20,783,982         12,137,387   

Templeton NVIT International Value Fund - Class III (NVTIV3)

      527,764         196,380   

Invesco NVIT Comstock Value Fund - Class I (EIF)

      890,386         1,755,933   

NVIT Real Estate Fund - Class I (NVRE1)

      9,337,609         8,002,173   

Loring Ward NVIT Capital Appreciation Fund - Class P (NVLCAP)

      23,432         17,874   

Loring Ward NVIT Moderate Fund - Class P (NVLMP)

      5,441         1,420   

NVIT Small Cap Index Fund Class II (NVSIX2)

      177,080         93,019   

NVIT S&P 500 Index Fund Class I (GVEX1)

      2,541,180         839,506   

TOPS Managed Risk Balanced ETF Portfolio - Class 3 (NOTB3)

      39,908         1,656   

TOPS Managed Risk Moderate Growth ETF Portfolio - Class 3 (NOTMG3)

      11,920         111   

VPS Growth and Income Portfolio - Class A (ALVGIA)

      6,432,167         7,288,948   

VPS International Value Portfolio - Class A (ALVIVA)

      1,372,673         1,485,486   

VPS Small/Mid Cap Value Portfolio - Class A (ALVSVA)

      6,534,288         3,938,880   

VP Capital Appreciation Fund - Class I (ACVCA)

      1,038,994         2,019,845   

VP Income & Growth Fund - Class I (ACVIG)

      2,990,657         4,768,202   

VP Inflation Protection Fund - Class II (ACVIP2)

      1,456,952         3,921,101   

VP International Fund - Class I (ACVI)

      3,121,441         3,486,196   

VP Mid Cap Value Fund - Class I (ACVMV1)

      4,142,624         3,109,682   

 

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

VP Ultra(R) Fund - Class I (ACVU1)

    $ 668,340       $ 1,486,506   

VP Value Fund - Class I (ACVV)

      11,619,588         14,615,456   

MidCap Stock Portfolio - Initial Shares (DVMCS)

      1,930,640         2,171,003   

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

      17,030,968         18,027,850   

Appreciation Portfolio - Initial Shares (DCAP)

      3,214,833         8,708,799   

Opportunistic Small Cap Portfolio: Initial Shares (DSC)

      172,133         251,126   

International Value Portfolio - Initial Shares (DVIV)

      912,401         2,256,663   

Variable Series II - DWS Small Mid Cap Value VIP - Class B (SVSSVB)

      185,613         663,820   

Variable Series II - DWS Large Cap Value VIP - Class B (SVSLVB)

      20,446         15,120   

Managed Tail Risk Fund II: Primary Shares (FVCA2P)

      36,822         72,532   

Quality Bond Fund II - Primary Shares (FQB)

      2,820,723         4,445,751   

VIP Contrafund(R) Portfolio - Service Class (FCS)

      10,357,995         31,899,842   

VIP Energy Portfolio - Service Class 2 (FNRS2)

      1,944,309         1,983,974   

VIP Equity-Income Portfolio - Service Class (FEIS)

      13,779,076         10,577,903   

VIP Freedom Fund 2010 Portfolio - Service Class (FF10S)

      231,359         477,103   

VIP Freedom Fund 2020 Portfolio - Service Class (FF20S)

      7,949,379         2,296,760   

VIP Freedom Fund 2030 Portfolio - Service Class (FF30S)

      4,484,621         1,369,839   

VIP Freedom Income Fund Portfolio - Service Class (FFINS)

      386,273         166,785   

VIP Growth Opportunities Portfolio - Service Class (FGOS)

      296,470         3,097,599   

VIP Growth Portfolio - Service Class (FGS)

      11,062,250         13,791,178   

VIP High Income Portfolio - Service Class (FHIS)

      6,307,175         4,524,404   

VIP Index 500 Portfolio - Initial Class (FIP)

      19,154,584         6,789,455   

VIP Investment Grade Bond Portfolio - Service Class (FIGBS)

      39,864,467         15,500,430   

VIP Mid Cap Portfolio - Service Class (FMCS)

      10,382,647         12,412,715   

VIP Overseas Portfolio - Service Class (FOS)

      13,844,914         4,735,853   

VIP Value Strategies Portfolio - Service Class (FVSS)

      425,717         2,404,067   

VIP Fidelity VIP Freedom Fund 2005 Portfolio - Service Class (FF05S)

      100,068         14,947   

VIP Fidelity VIP Freedom Fund 2015 Portfolio - Service Class (FF15S)

      4,715,468         2,791,591   

VIP Fidelity VIP Freedom Fund 2025 Portfolio - Service Class (FF25S)

      6,217,683         3,029,358   

VIP Fidelity VIP Freedom Fund 2040 Portfolio - Service Class (FF40S)

      3,531,756         2,280,835   

Franklin Income Securities Fund - Class 2 (FTVIS2)

      1,110,721         1,017,056   

Rising Dividends Securities Fund - Class 1 (FTVRDI)

      3,758,375         2,688,666   

Small Cap Value Securities Fund - Class 1 (FTVSVI)

      1,709,750         1,542,138   

Small Cap Value Securities Fund - Class 2 (FTVSV2)

      4,158,622         4,191,660   

Mutual Global Discovery Securities Fund - Class 2 (FTVMD2)

      2,250,331         277,567   

Templeton Developing Markets Securities Fund - Class 2 (FTVDM2)

      811,535         810,647   

Templeton Foreign Securities Fund - Class 1 (TIF)

      81,625         147,078   

Templeton Foreign Securities Fund - Class 2 (TIF2)

      7,723,657         4,840,784   

Templeton Global Bond Securities Fund - Class 2 (FTVGI2)

      1,525,518         2,475,392   

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

      100,621         107,442   

Mid Cap Value- Institutional Shares (GVMCE)

      10,436,455         27,296,083   

Goldman Sachs Structured Small Cap Equity Fund (GVCSE)

      51,162         22,318   

VIT Growth Opportunities Fund - Service Shares (GVGOPS)

      1,255,462         871,615   

ClearBridge Variable Small Cap Growth Portfolio - Class I (SBVSG)

      6,612,329         3,702,808   

Baron Growth Opportunities Fund Service Class (BNCAI)

      1,876,939         3,342,063   

Short Duration Bond Portfolio - I Class Shares (AMTB)

      999,404         981,868   

Guardian Portfolio - I Class Shares (AMGP)

      601,165         795,724   

Mid-Cap Growth Portfolio - I Class Shares (AMCG)

      781,776         1,320,453   

Mid-Cap Growth Portfolio - S Class Shares (AMMCGS)

      1,755,135         650,028   

Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

      197,270         1,010,787   

Advisers Management Trust: Mid Cap Intrinsic Value Portfolio - Class I (AMRI)

      550,645         424,472   

Socially Responsive Portfolio - I Class Shares (AMSRS)

      256,445         576,138   

Capital Appreciation Fund/VA - Non-Service Shares (OVGR)

      3,373,590         5,118,337   

Global Securities Fund/VA - Non-Service Shares (OVGS)

      14,004,212         13,070,140   

International Growth Fund/VA - Non-Service Shares (OVIG)

      4,089,292         576,068   

Main Street Fund(R)/VA - Non-Service Shares (OVGI)

      6,625,580         3,692,299   

Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)

      2,321,823         1,487,319   

Discovery Mid Cap Growth Fund/VA - Non-Service Shares (OVAG)

      3,573,719         4,281,711   

Global Strategic Income Fund/VA: Non-service Shares (OVSB)

      3,032,694         3,618,366   

All Asset Portfolio - Administrative Class (PMVAAA)

      6,059,116         9,658,750   

CommodityRealReturn(R) Strategy Portfolio - Administrative Class (PMVRSA)

      61,339         31,779   

Foreign Bond Portfolio (Unhedged) - Administrative Class (PMVFBA)

      1,066,907         381,258   

Long-Term U.S. Government Portfolio - Administrative Class (PMVLGA)

      1,456,524         1,185,092   

Low Duration Portfolio - Administrative Class (PMVLDA)

      16,860,470         29,548,520   

Real Return Portfolio - Administrative Class (PMVRRA)

      16,908,093         39,484,323   

Total Return Portfolio - Administrative Class (PMVTRA)

      24,025,551         102,704,334   

Pioneer Emerging Markets VCT Portfolio - Class I Shares (PIVEMI)

      1,178,371         1,112,452   

Pioneer High Yield VCT Portfolio - Class I Shares (PIHYB1)

      1,305,255         2,250,151   

VT Growth & Income Fund: Class IB (PVGIB)

      133,771         177,909   

VT International Equity Fund: Class IB (PVTIGB)

      256,137         380,540   

VT Small Cap Value Fund: Class IB (PVTSCB)

      402,862         174,416   

VT Voyager Fund: Class IB (PVTVB)

      327,449         242,346   

VI Growth and Income Fund - Series I Shares (ACGI)

      1,754,982         1,229,822   

VI American Franchise Fund - Series I Shares (ACEG)

      321,394         152,731   

VI Value Opportunities Fund - Series I Shares (AVBVI)

      108,297         576,562   

VI High Yield Fund - Series I Shares (AVHY1)

      3,496,697         3,979,865   

VI International Growth Fund - Series I Shares (AVIE)

      11,548,218         21,031,203   

VI Mid Cap Core Equity Fund: Series I Shares (AVMCCI)

      350,451         337,080   

VI Small Cap Equity Fund - Series I Shares (AVSCE)

      350,673         85,910   

Micro-Cap Portfolio - Investment Class (ROCMC)

      2,114,549         4,810,479   

Variable Fund - Multi-Hedge Strategies (RVARS)

      112,317         567,561   

Equity Income Portfolio - II (TREI2)

      9,379,708         24,823,417   

Health Sciences Portfolio - II (TRHS2)

      10,042,705         8,177,034   

Limited-Term Bond Portfolio (TRLT1)

      22,584,148         15,495,507   

Mid-Cap Growth Portfolio - II (TRMCG2)

      13,893,388         26,647,907   

New America Growth Portfolio (TRNAG1)

      16,374,126         17,386,077   

Personal Strategy Balanced Portfolio (TRPSB1)

      3,316,799         3,383,701   

Blue Chip Growth Portfolio (TRBCGP)

      16,980,066         6,183,141   

VIP Trust Emerging Markets Fund - Initial Class (VWEM)

      1,794,997         5,268,046   

 

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

VIP Trust Global Hard Assets Fund - Initial Class (VWHA)

    $ 10,963,720       $ 9,077,073   

Variable Insurance Fund - Balanced Portfolio (VVB)

      3,267,765         1,893,529   

Insurance Fund - Capital Growth Portfolio (VVCG)

      11,348,682         1,362,611   

Variable Insurance Fund - Diversified Value Portfolio (VVDV)

      2,398,313         3,059,044   

Variable Insurance Fund - International Portfolio (VVI)

      7,873,228         2,196,452   

Variable Insurance Fund - Mid-Cap Index Portfolio (VVMCI)

      15,145,630         2,641,226   

Variable Insurance Fund - REIT Index Portfolio (VVREI)

      1,410,736         2,221,802   

Variable Insurance Fund - Short-Term Investment-Grade Portfolio (VVSTC)

      2,796,428         2,309,724   

Variable Insurance Fund - Small Company Growth Portfolio (VVSCG)

      1,938,056         1,385,480   

Variable Insurance Fund - Total Bond Market Index Portfolio (VVHGB)

      9,384,733         4,318,907   

Variable Insurance Portfolios - Asset Strategy (WRASP)

      6,323,988         3,083,998   

Variable Insurance Portfolios - Growth (WRGP)

      18,736,673         2,529,861   

Variable Insurance Portfolios - High Income (WRHIP)

      6,740,950         8,837,346   

Variable Insurance Portfolios - Mid Cap Growth (WRMCG)

      4,085,775         1,397,970   

Variable Insurance Portfolios - Real Estate Securities (WRRESP)

      6,354,884         6,765,302   

Variable Insurance Portfolios - Science and Technology (WRSTP)

      5,313,707         5,923,620   

Advantage VT Discovery Fund (SVDF)

      6,884,460         3,316,925   

Advantage VT Opportunity Fund - Class 2 (SVOF)

      3,745,653         6,278,278   

Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)

      2,803,818         1,942,928   

Investors Growth Stock Series - Initial Class (obsolete) (MIGIC)

      368,979         3,561,050   

VIP High Income Portfolio - Service Class R (obsolete) (FHISR)

      230,440         4,441,202   

Research International Series - Service Class (obsolete) (MVRISC)

      222,978         3,179,599   

VIP Overseas Portfolio - Service Class R (obsolete) (FOSR)

      128,222         12,404,799   

Small-Cap Growth Portfolio - S Class Shares (obsolete) (AMFAS)

      584,613         1,997,426   
  

 

 

     

 

 

  

Total

    $ 1,331,762,701       $ 1,227,022,709   
  

 

 

     

 

 

  

(8) Financial Highlights

The following tabular presentation is a summary of units, unit fair values, contract owners’ equity outstanding and contract expense rates for variable life contracts as of December 31, 2015, and the investment income ratio and total return for each of the periods in the five year period ended December 31, 2015. Total return and investment income ratio for periods with no ending contract owners’ equity were considered to be irrelevant, and therefore are not presented.

 

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VPS Dynamic Asset Allocation Portfolio - Class A (ALVDAA)

2015     0.00%        5,447      $ 11.897471      $ 64,806        0.87%        -1.09%     
2014     0.00%        3,808        12.028742        45,805        0.26%        4.45%     
2013     0.00%        15,430        11.516261        177,696        0.77%        12.31%     
2012     0.00%        7        10.254428        72        0.15%        2.54%      5/1/2012

VP Inflation Protection Fund - Class I (ACVIP1)

2015     0.00%        2,896        9.707801        28,114        2.52%        -2.28%     
2015     0.20%        260,401        9.249684        2,408,627        2.52%        -2.48%     
2015     0.25%        329,593        9.235052        3,043,808        2.52%        -2.52%     
2014     0.00%        4,705        9.934368        46,741        1.51%        3.58%     
2014     0.20%        10,211        9.484521        96,846        1.51%        3.37%     
2014     0.25%        74,535        9.474252        706,163        1.51%        3.32%     
2013     0.20%        227        9.175171        2,083        1.16%        -8.40%     
2013     0.25%        43,726        9.169830        400,960        1.16%        -8.44%     

Asset Allocation Fund - Class 2 (AMVAA2)

2015     0.00%        54,385        14.804383        805,136        1.79%        1.40%     
2015     0.20%        131,978        14.561812        1,921,839        1.79%        1.20%     
2015     0.25%        168,266        14.501782        2,440,157        1.79%        1.15%     
2014     0.00%        55,339        14.600092        807,954        1.29%        5.40%     
2014     0.20%        29,493        14.389619        424,393        1.29%        5.19%     
2014     0.25%        134,668        14.337468        1,930,798        1.29%        5.13%     
2013     0.00%        36,402        13.852640        504,264        1.50%        23.69%     
2013     0.20%        32,471        13.680273        444,212        1.50%        23.44%     
2013     0.25%        224,248        13.637510        3,058,184        1.50%        23.38%     
2012     0.00%        31,141        11.199540        348,765        2.21%        16.19%     
2012     0.20%        35,875        11.082315        397,578        2.21%        15.96%     
2012     0.25%        183,194        11.053188        2,024,878        2.21%        15.90%     
2011     0.00%        28,278        9.638937        272,570        1.73%        1.30%     
2011     0.20%        22,659        9.557165        216,556        1.73%        1.09%     
2011     0.25%        86,825        9.536838        828,036        1.73%        1.04%     

Bond Fund - Class 2 (AMVBD2)

2015     0.00%        858        12.612433        10,821        1.69%        0.27%     
2015     0.10%        5,631,855        12.508727        70,447,337        1.69%        0.17%     
2015     0.20%        136        12.405801        1,687        1.69%        0.07%     
2015     0.25%        377        12.354700        4,658        1.69%        0.02%     
2014     0.00%        3,193        12.577937        40,161        6.95%        5.28%     
2014     0.10%        5,682,378        12.486989        70,955,792        6.95%        5.17%     
2014     0.20%        874        12.396639        10,835        6.95%        5.07%     
2014     0.25%        357        12.351744        4,410        6.95%        5.02%     
2013     0.00%        3,878        11.947372        46,332        1.11%        -2.16%     
2013     0.20%        2,045        11.798735        24,128        1.11%        -2.35%     
2013     0.25%        303        11.761875        3,564        1.11%        -2.40%     
2012     0.00%        16,295        12.210902        198,977        1.94%        5.37%     
2012     0.20%        1,631        12.083145        19,708        1.94%        5.16%     
2012     0.25%        1,138        12.051410        13,715        1.94%        5.11%     
2011     0.00%        17,168        11.588210        198,946        2.23%        6.10%     
2011     0.20%        10,103        11.489974        116,083        2.23%        5.89%     
2011     0.25%        25,540        11.465538        292,830        2.23%        5.84%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Global Small Capitalization Fund - Class 2 (AMVGS2)

2015     0.00%        421      $ 12.512027      $ 5,268        0.00%        0.27%     
2015     0.20%        66,052        12.314418        813,392        0.00%        0.07%     
2015     0.25%        59,150        12.265532        725,506        0.00%        0.02%     
2014     0.00%        12,416        12.478765        154,936        0.12%        2.12%     
2014     0.20%        97,984        12.306283        1,205,819        0.12%        1.92%     
2014     0.25%        93,809        12.263569        1,150,433        0.12%        1.87%     
2013     0.00%        7,266        12.219338        88,786        0.98%        28.28%     
2013     0.20%        108,515        12.074571        1,310,272        0.98%        28.02%     
2013     0.25%        86,391        12.038671        1,040,033        0.98%        27.96%     
2012     0.00%        18,949        9.525679        180,502        1.28%        18.18%     
2012     0.20%        87,959        9.431647        829,598        1.28%        17.94%     
2012     0.25%        69,398        9.408304        652,917        1.28%        17.88%     
2011     0.00%        24,198        8.060463        195,047        1.26%        -19.14%     
2011     0.20%        109,819        7.996904        878,212        1.26%        -19.31%     
2011     0.25%        38,781        7.981109        309,515        1.26%        -19.35%     

Growth Fund - Class 2 (AMVGR2)

2015     0.00%        2,809        15.869617        44,578        0.52%        6.86%     
2015     0.20%        241,449        15.617854        3,770,915        0.52%        6.64%     
2015     0.25%        876,001        15.555509        13,626,641        0.52%        6.59%     
2014     0.00%        1,594        14.851108        23,673        0.80%        8.51%     
2014     0.20%        761,924        14.644767        11,158,199        0.80%        8.29%     
2014     0.25%        934,897        14.593599        13,643,512        0.80%        8.24%     
2013     0.00%        778        13.686517        10,648        0.96%        30.10%     
2013     0.20%        823,588        13.523376        11,137,690        0.96%        29.84%     
2013     0.25%        928,036        13.482872        12,512,591        0.96%        29.78%     
2012     0.20%        875,328        10.415272        9,116,779        0.83%        17.65%     
2012     0.25%        848,137        10.389269        8,811,523        0.83%        17.60%     
2011     0.20%        646,898        8.852415        5,726,610        0.80%        -4.47%     
2011     0.25%        917,949        8.834746        8,109,846        0.80%        -4.52%     

International Fund - Class 2 (AMVI2)

2015     0.00%        15,798        10.466734        165,353        1.60%        -4.53%     
2015     0.20%        70,162        10.369463        727,542        1.60%        -4.72%     
2015     0.25%        420,503        10.345312        4,350,235        1.60%        -4.76%     
2014     0.00%        12,421        10.962883        136,170        1.59%        -2.65%     
2014     0.20%        39,874        10.882753        433,939        1.59%        -2.85%     
2014     0.25%        378,202        10.862833        4,108,345        1.59%        -2.90%     
2013     0.00%        8,219        11.261623        92,559        1.63%        21.63%     
2013     0.20%        40,692        11.201722        455,820        1.63%        21.39%     
2013     0.25%        263,800        11.186800        2,951,078        1.63%        21.33%     
2012     0.00%        7,229        9.258582        66,930        2.11%        17.91%     
2012     0.20%        23,263        9.227767        214,666        2.11%        17.67%     
2012     0.25%        179,592        9.220070        1,655,851        2.11%        17.61%     
2011     0.00%        5,126        7.852467        40,252        2.58%        -21.48%      5/2/2011
2011     0.25%        20,132        7.839419        157,823        2.58%        -21.61%      5/2/2011

Variable Series Funds, Inc. - BlackRock High Yield V.I. Fund - Class I (BRVHYI)

2015     0.10%        286,174        9.365666        2,680,210        4.71%        -3.70%     
2015     0.20%        15,487        9.353123        144,852        4.71%        -3.79%     
2015     0.25%        96,281        9.346839        899,923        4.71%        -3.84%     
2014     0.25%        51,392        9.720295        499,545        1.36%        -2.80%      8/29/2014

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Large Cap Core V.I. Fund - Class II (MLVLC2)

2015     0.00%        1,832      $ 20.243532      $ 37,086        0.60%        0.34%     
2015     0.20%        10,863        19.816250        215,264        0.60%        0.14%     
2015     0.25%        84,982        19.710934        1,675,075        0.60%        0.09%     
2014     0.00%        10,769        20.175665        217,272        0.79%        12.19%     
2014     0.10%        45,593        19.981620        911,022        0.79%        12.08%     
2014     0.20%        7,577        19.789357        149,944        0.79%        11.97%     
2014     0.25%        81,631        19.694031        1,607,643        0.79%        11.91%     
2013     0.00%        8,585        17.983312        154,387        0.97%        33.32%     
2013     0.10%        42,555        17.828165        758,678        0.97%        33.19%     
2013     0.20%        10,338        17.674292        182,717        0.97%        33.05%     
2013     0.25%        93,225        17.597950        1,640,569        0.97%        32.99%     
2012     0.00%        4,756        13.488801        64,153        1.38%        12.59%     
2012     0.10%        35,076        13.385802        469,520        1.38%        12.47%     
2012     0.20%        11,657        13.283534        154,846        1.38%        12.36%     
2012     0.25%        131,505        13.232769        1,740,175        1.38%        12.30%     
2011     0.00%        7,595        11.980842        90,994        0.97%        2.20%     
2011     0.10%        39,420        11.901270        469,148        0.97%        2.10%     
2011     0.20%        11,014        11.822193        130,210        0.97%        2.00%     
2011     0.25%        112,361        11.782911        1,323,940        0.97%        1.95%     

Global Allocation V.I. Fund - Class II (MLVGA2)

2015     0.00%        588,721        16.452774        9,686,094        0.95%        -0.87%     
2014     0.00%        665,128        16.596941        11,039,090        2.12%        1.97%     
2013     0.00%        640,899        16.276845        10,431,814        1.07%        14.55%     
2012     0.00%        680,130        14.209224        9,664,120        1.57%        10.14%     
2011     0.00%        642,091        12.900807        8,283,492        2.42%        -3.63%     

VP S&P 500 Index Portfolio (CVSPIP)

2015     0.25%        49,793        11.115900        553,494        0.07%        0.73%     
2014     0.10%        40,910        11.046998        451,933        3.55%        10.47%      4/30/2014

Value Portfolio (DAVVL)

2015     0.00%        109,021        13.481383        1,469,754        0.78%        1.60%     
2015     0.20%        756        13.260449        10,025        0.78%        1.39%     
2015     0.25%        77,506        13.205723        1,023,523        0.78%        1.34%     
2014     0.00%        119,812        13.269646        1,589,863        0.94%        6.06%     
2014     0.20%        3,305        13.078326        43,224        0.94%        5.85%     
2014     0.25%        96,351        13.030858        1,255,536        0.94%        5.79%     
2013     0.00%        135,251        12.511572        1,692,203        0.81%        33.43%     
2013     0.20%        2,401        12.355876        29,666        0.81%        33.16%     
2013     0.25%        76,554        12.317182        942,930        0.81%        33.09%     
2012     0.00%        153,730        9.377109        1,441,543        1.78%        13.08%     
2012     0.20%        5,953        9.278932        55,237        1.78%        12.85%     
2012     0.25%        138,899        9.254504        1,285,441        1.78%        12.80%     
2011     0.00%        125,820        8.292464        1,043,358        0.86%        -4.17%     
2011     0.20%        5,480        8.222110        45,057        0.86%        -4.37%     
2011     0.25%        144,786        8.204572        1,187,907        0.86%        -4.41%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VIP Emerging Markets Series: Service Class (DWVEMS)

2015     0.20%        48,044      $ 8.853030      $ 425,335        0.53%        -14.94%     
2015     0.25%        183,792        8.836810        1,624,135        0.53%        -14.99%     
2014     0.00%        131        10.464258        1,371        0.38%        -8.26%     
2014     0.20%        21,740        10.408589        226,283        0.38%        -8.45%     
2014     0.25%        88,634        10.394723        921,326        0.38%        -8.49%     
2013     0.00%        131        11.406806        1,494        0.19%        9.86%     
2013     0.20%        71        11.368864        807        0.19%        9.64%     
2013     0.25%        36,847        11.359401        418,560        0.19%        9.58%     

VIP Small Cap Value Series: Service Class (DWVSVS)

2015     0.00%        38,172        13.469642        514,163        0.50%        -6.46%     
2015     0.20%        179,073        13.344536        2,389,646        0.50%        -6.65%     
2015     0.25%        762,913        13.313432        10,156,990        0.50%        -6.70%     
2014     0.00%        29,347        14.400158        422,601        0.29%        5.62%     
2014     0.20%        233,632        14.294974        3,339,763        0.29%        5.41%     
2014     0.25%        772,626        14.268792        11,024,440        0.29%        5.35%     
2013     0.00%        17,024        13.634102        232,107        0.55%        33.17%     
2013     0.20%        233,538        13.561620        3,167,154        0.55%        32.90%     
2013     0.25%        553,542        13.543555        7,496,927        0.55%        32.84%     
2012     0.00%        980        10.238165        10,033        0.21%        13.63%     
2012     0.20%        125,975        10.204105        1,285,462        0.21%        13.41%     
2012     0.25%        264,717        10.195601        2,698,949        0.21%        13.35%     
2011     0.25%        2,125        8.994847        19,114        0.00%        -10.05%      5/2/2011

VA International Small Portfolio (DFVIS)

2015     0.20%        93,147        9.643019        898,218        2.07%        -3.57%      5/1/2015
2015     0.25%        12,806        9.639791        123,447        2.07%        -3.60%      5/1/2015

VA U.S. Targeted Value Portfolio (DFVUTV)

2015     0.20%        189,273        9.148602        1,731,583        1.32%        -8.51%      5/1/2015
2015     0.25%        26,021        9.145533        237,976        1.32%        -8.54%      5/1/2015

Stock Index Fund, Inc. - Initial Shares (DSIF)

2015     0.00%        5,210,844        28.145445        146,661,523        1.84%        1.11%     
2015     0.10%        1,336,408        20.471960        27,358,891        1.84%        1.01%     
2015     0.20%        3,657,570        19.563635        71,555,364        1.84%        0.91%     
2015     0.25%        9,667,517        19.416607        187,710,378        1.84%        0.85%     
2014     0.00%        5,681,066        27.837249        158,145,249        1.78%        13.42%     
2014     0.10%        408,608        20.268047        8,281,686        1.78%        13.31%     
2014     0.20%        3,213,541        19.388148        62,304,609        1.78%        13.20%     
2014     0.25%        10,400,035        19.252062        200,222,119        1.78%        13.14%     
2013     0.00%        5,821,538        24.542634        142,875,876        1.87%        32.03%     
2013     0.10%        441,577        17.887136        7,898,548        1.87%        31.90%     
2013     0.20%        2,738,712        17.127707        46,907,857        1.87%        31.76%     
2013     0.25%        9,493,931        17.015995        161,548,682        1.87%        31.70%     
2012     0.00%        5,953,531        18.589099        110,670,777        2.05%        15.74%     
2012     0.10%        503,752        13.561635        6,831,701        2.05%        15.62%     
2012     0.20%        2,648,356        12.998834        34,425,540        2.05%        15.51%     
2012     0.25%        9,566,276        12.920511        123,601,174        2.05%        15.45%     
2011     0.00%        6,328,796        16.061424        101,649,476        1.82%        1.88%     
2011     0.10%        616,800        11.729321        7,234,645        1.82%        1.78%     
2011     0.20%        2,636,742        11.253834        29,673,457        1.82%        1.67%     
2011     0.25%        10,468,947        11.191630        117,164,581        1.82%        1.62%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

2015     0.00%        479,731      $ 22.570734      $ 10,827,881        1.06%        -3.19%     
2015     0.25%        23,979        14.534743        348,529        1.06%        -3.44%     
2014     0.00%        522,401        23.315565        12,180,074        1.04%        13.45%     
2014     0.10%        39,951        16.732429        668,477        1.04%        13.34%     
2014     0.25%        17,238        15.051972        259,466        1.04%        13.17%     
2013     0.00%        563,186        20.550928        11,573,995        1.23%        34.34%     
2013     0.10%        28,589        14.763155        422,064        1.23%        34.21%     
2013     0.25%        17,450        13.300400        232,092        1.23%        34.01%     
2012     0.00%        605,032        15.297331        9,255,375        0.80%        11.97%     
2012     0.10%        33,771        11.000110        371,485        0.80%        11.86%     
2012     0.25%        18,663        9.925081        185,232        0.80%        11.69%     
2011     0.00%        650,578        13.661404        8,887,809        0.89%        0.90%     
2011     0.10%        42,011        9.833598        413,119        0.89%        0.80%     
2011     0.25%        19,031        8.885914        169,108        0.89%        0.65%     

Floating-Rate Income Fund (ETVFR)

2015     0.00%        16,281        11.068480        180,206        3.33%        -0.99%     
2015     0.10%        4,147,920        11.016926        45,697,328        3.33%        -1.09%     
2015     0.20%        459,000        10.965574        5,033,198        3.33%        -1.19%     
2015     0.25%        1,146,322        10.939965        12,540,723        3.33%        -1.24%     
2014     0.00%        19,829        11.179398        221,676        3.22%        0.57%     
2014     0.10%        4,469,010        11.138472        49,777,943        3.22%        0.47%     
2014     0.20%        482,917        11.097666        5,359,252        3.22%        0.37%     
2014     0.25%        1,050,845        11.077288        11,640,513        3.22%        0.32%     
2013     0.00%        5,910        11.115787        65,694        3.51%        3.85%     
2013     0.10%        1,958,713        11.086177        21,714,639        3.51%        3.75%     
2013     0.20%        71,713        11.056627        792,904        3.51%        3.64%     
2013     0.25%        266,198        11.041865        2,939,322        3.51%        3.59%     
2012     0.10%        1,433,810        10.685961        15,321,638        3.38%        7.22%     
2012     0.20%        3,643        10.668159        38,864        3.38%        7.11%     
2012     0.25%        634        10.659243        6,758        3.38%        7.06%     

VIP Trust - Templeton Global Bond VIP Fund: Class 1 (FTVGB1)

2015     0.00%        136,114        10.776572        1,466,842        7.61%        -4.10%     
2015     0.10%        137,784        9.670979        1,332,506        7.61%        -4.20%     
2015     0.20%        384,691        9.654853        3,714,135        7.61%        -4.29%     
2015     0.25%        713,803        9.646808        6,885,920        7.61%        -4.34%     
2014     0.00%        89,731        11.237397        1,008,343        4.04%        2.12%     
2014     0.20%        331,848        10.087875        3,347,641        4.04%        0.88%      5/1/2014
2014     0.25%        756,586        10.084509        7,629,798        4.04%        0.85%      5/1/2014

Goldman Sachs Global Markets Navigator Fund - Service Shares (GVGMNS)

2015     0.00%        2,301        11.465429        26,382        0.07%        -5.82%     
2014     0.00%        3,054        12.173521        37,178        0.03%        3.95%     
2013     0.00%        3,565        11.711464        41,751        0.10%        13.57%     
2012     0.00%        92        10.312479        949        0.00%        3.12%      5/1/2012

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Van Kampen V.I. Mid Cap Growth Fund - Series I Shares (IVKMG1)

2015     0.00%        214,379      $ 14.722930      $ 3,156,287        0.00%        1.21%     
2015     0.20%        8,469        14.615032        123,775        0.00%        1.00%     
2015     0.25%        122,570        14.588191        1,788,075        0.00%        0.95%     
2014     0.00%        215,582        14.547427        3,136,163        0.00%        8.04%     
2014     0.10%        13,861        14.508528        201,103        0.00%        7.93%     
2014     0.20%        14,778        14.469727        213,834        0.00%        7.82%     
2014     0.25%        97,042        14.450385        1,402,294        0.00%        7.77%     
2013     0.00%        209,470        13.465170        2,820,549        0.41%        37.01%     
2013     0.10%        13,140        13.442608        176,636        0.41%        36.88%     
2013     0.20%        15,404        13.420087        206,723        0.41%        36.74%     
2013     0.25%        83,038        13.408843        1,113,444        0.41%        36.67%     
2012     0.00%        230,709        9.827596        2,267,315        0.00%        -1.72%      4/27/2012
2012     0.10%        17,866        9.820935        175,461        0.00%        -1.79%      4/27/2012
2012     0.20%        22,241        9.814282        218,279        0.00%        -1.86%      4/27/2012
2012     0.25%        70,975        9.810958        696,333        0.00%        -1.89%      4/27/2012

Balanced-Risk Allocation Fund: Series I Shares (IVBRA1)

2015     0.00%        62,732        9.891560        620,517        4.97%        -4.10%     
2014     0.00%        38,475        10.314426        396,848        0.00%        3.14%      5/1/2014

Mid Cap Value Portfolio: Class 1 (JPMMV1)

2015     0.00%        28,449        28.595253        813,506        0.94%        -2.66%     
2015     0.10%        148,084        28.263700        4,185,402        0.94%        -2.75%     
2015     0.20%        209,845        27.936091        5,862,249        0.94%        -2.85%     
2015     0.25%        187,200        27.773658        5,199,229        0.94%        -2.90%     
2014     0.00%        25,195        29.375193        740,108        0.71%        15.11%     
2014     0.20%        174,813        28.755521        5,026,839        0.71%        14.88%     
2014     0.25%        172,466        28.602620        4,932,979        0.71%        14.82%     
2013     0.00%        16,249        25.519927        414,673        0.96%        32.30%     
2013     0.20%        120,203        25.031580        3,008,871        0.96%        32.04%     
2013     0.25%        122,145        24.910934        3,042,746        0.96%        31.97%     
2012     0.00%        529        19.289344        10,204        0.28%        20.38%     
2012     0.20%        88,720        18.958083        1,681,961        0.28%        20.14%     
2012     0.25%        10,268        18.876134        193,820        0.28%        20.08%     
2011     0.20%        7,723        15.780575        121,873        1.29%        1.96%     

Small Cap Core Portfolio 1 (JPSCE1)

2015     0.25%        4,684        9.259791        43,373        0.00%        -7.40%      5/1/2015

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Balanced Portfolio: Service Shares (JABS)

2015     0.00%        203,554      $ 27.661592      $ 5,630,628        1.68%        0.41%     
2015     0.20%        126,419        26.934334        3,405,012        1.68%        0.21%     
2015     0.25%        617,997        26.755453        16,534,790        1.68%        0.16%     
2014     0.00%        194,012        27.548473        5,344,734        1.54%        8.24%     
2014     0.10%        78,645        27.211116        2,140,018        1.54%        8.13%     
2014     0.20%        119,158        26.877891        3,202,716        1.54%        8.02%     
2014     0.25%        541,936        26.712747        14,476,599        1.54%        7.97%     
2013     0.00%        196,236        25.451703        4,994,540        2.01%        19.80%     
2013     0.10%        69,906        25.165169        1,759,196        2.01%        19.68%     
2013     0.20%        92,864        24.881872        2,310,630        2.01%        19.56%     
2013     0.25%        462,719        24.741356        11,448,296        2.01%        19.50%     
2012     0.00%        207,553        21.244764        4,409,415        2.66%        13.37%     
2012     0.10%        70,662        21.026597        1,485,781        2.66%        13.26%     
2012     0.20%        102,630        20.810679        2,135,800        2.66%        13.15%     
2012     0.25%        322,380        20.703503        6,674,395        2.66%        13.09%     
2011     0.00%        194,261        18.738519        3,640,163        2.33%        1.35%     
2011     0.10%        104,385        18.564685        1,937,875        2.33%        1.25%     
2011     0.20%        39,571        18.392478        727,809        2.33%        1.15%     
2011     0.25%        249,377        18.306924        4,565,326        2.33%        1.10%     

Flexible Bond Portfolio: Service Shares (JAFBS)

2015     0.00%        34,903        10.092752        352,267        2.23%        -0.06%     
2015     0.20%        237,839        10.067285        2,394,393        2.23%        -0.26%     
2015     0.25%        961,258        10.060934        9,671,153        2.23%        -0.31%     
2014     0.20%        91,596        10.093738        924,546        1.29%        0.94%      9/26/2014
2014     0.25%        344,331        10.092410        3,475,130        1.29%        0.92%      9/26/2014

Forty Portfolio: Service Shares (JACAS)

2015     0.00%        1,513,530        20.432674        30,925,465        1.25%        11.94%     
2015     0.20%        320,208        19.791988        6,337,553        1.25%        11.71%     
2015     0.25%        398,965        19.634966        7,833,664        1.25%        11.66%     
2014     0.00%        1,612,674        18.253711        29,437,285        0.03%        8.47%     
2014     0.10%        119,102        17.983216        2,141,837        0.03%        8.36%     
2014     0.20%        343,954        17.716740        6,093,744        0.03%        8.25%     
2014     0.25%        397,378        17.584980        6,987,884        0.03%        8.20%     
2013     0.00%        1,750,090        16.828717        29,451,769        0.59%        30.89%     
2013     0.10%        124,679        16.595922        2,069,163        0.59%        30.75%     
2013     0.20%        256,265        16.366354        4,194,124        0.59%        30.62%     
2013     0.25%        675,697        16.252771        10,981,949        0.59%        30.56%     
2012     0.00%        1,995,286        12.857586        25,654,561        0.55%        23.86%     
2012     0.10%        187,681        12.692401        2,382,123        0.55%        23.73%     
2012     0.20%        326,106        12.529347        4,085,895        0.55%        23.61%     
2012     0.25%        793,544        12.448610        9,878,520        0.55%        23.55%     
2011     0.00%        2,188,403        10.380944        22,717,689        0.25%        -6.94%     
2011     0.10%        278,314        10.257850        2,854,903        0.25%        -7.03%     
2011     0.20%        483,760        10.136220        4,903,498        0.25%        -7.13%     
2011     0.25%        1,428,699        10.075943        14,395,490        0.25%        -7.17%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Global Technology Portfolio: Service Shares (JAGTS)

2015     0.00%        1,271,191      $ 9.689759      $ 12,317,534        0.81%        4.65%     
2015     0.20%        21,016        9.385767        197,251        0.81%        4.44%     
2015     0.25%        160,365        9.311264        1,493,201        0.81%        4.38%     
2014     0.00%        1,294,419        9.259589        11,985,788        0.00%        9.35%     
2014     0.10%        229,529        9.122304        2,093,833        0.00%        9.24%     
2014     0.20%        19,878        8.987053        178,645        0.00%        9.13%     
2014     0.25%        122,394        8.920175        1,091,776        0.00%        9.07%     
2013     0.00%        1,316,465        8.468059        11,147,903        0.00%        35.39%     
2013     0.10%        185,093        8.350859        1,545,686        0.00%        35.25%     
2013     0.20%        8,704        8.235270        71,680        0.00%        35.12%     
2013     0.25%        213,751        8.178071        1,748,071        0.00%        35.05%     
2012     0.00%        1,417,703        6.254578        8,867,134        0.00%        19.15%     
2012     0.10%        243,213        6.174184        1,501,642        0.00%        19.03%     
2012     0.20%        16,163        6.094806        98,510        0.00%        18.91%     
2012     0.25%        236,100        6.055509        1,429,706        0.00%        18.85%     
2011     0.00%        1,121,336        5.249382        5,886,321        0.00%        -8.66%     
2011     0.10%        308,257        5.187105        1,598,961        0.00%        -8.75%     
2011     0.20%        4,342        5.125546        22,255        0.00%        -8.84%     
2011     0.25%        413,571        5.095046        2,107,163        0.00%        -8.88%     

Overseas Portfolio: Service Shares (JAIGS)

2015     0.00%        1,223,129        13.954997        17,068,762        0.48%        -8.80%     
2015     0.20%        193,072        13.517310        2,609,814        0.48%        -8.99%     
2015     0.25%        140,409        13.410045        1,882,891        0.48%        -9.03%     
2014     0.00%        1,382,995        15.302065        21,162,679        5.77%        -12.10%     
2014     0.10%        127,397        15.075321        1,920,551        5.77%        -12.19%     
2014     0.20%        183,537        14.851839        2,725,862        5.77%        -12.28%     
2014     0.25%        233,855        14.741369        3,447,343        5.77%        -12.32%     
2013     0.00%        1,583,590        17.408554        27,568,012        3.05%        14.28%     
2013     0.10%        113,480        17.167781        1,948,200        3.05%        14.17%     
2013     0.20%        193,673        16.930223        3,278,927        3.05%        14.05%     
2013     0.25%        441,123        16.812707        7,416,472        3.05%        14.00%     
2012     0.00%        1,861,649        15.233105        28,358,695        0.69%        13.18%     
2012     0.10%        185,123        15.037449        2,783,778        0.69%        13.07%     
2012     0.20%        244,857        14.844207        3,634,708        0.69%        12.95%     
2012     0.25%        544,333        14.748538        8,028,116        0.69%        12.90%     
2011     0.00%        928,241        13.459012        12,493,207        0.37%        -32.34%     
2011     0.10%        282,025        13.299473        3,750,784        0.37%        -32.40%     
2011     0.20%        737,438        13.141734        9,691,214        0.37%        -32.47%     
2011     0.25%        984,026        13.063595        12,854,917        0.37%        -32.51%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Perkins Mid Cap Value Portfolio: Service Shares (JAMVS)

2015     0.00%        6,435      $ 14.822519      $ 95,383        1.06%        -3.69%     
2015     0.20%        108,758        14.655599        1,593,914        1.06%        -3.88%     
2015     0.25%        20,488        14.614141        299,415        1.06%        -3.93%     
2014     0.00%        7,217        15.390421        111,073        3.38%        8.44%     
2014     0.20%        84,451        15.247583        1,287,674        3.38%        8.22%     
2014     0.25%        36,396        15.212055        553,658        3.38%        8.17%     
2013     0.00%        3,557        14.192688        50,483        1.00%        25.81%     
2013     0.20%        57,650        14.089115        812,237        1.00%        25.56%     
2013     0.25%        74,382        14.063317        1,046,058        1.00%        25.49%     
2012     0.00%        7,263        11.281179        81,935        0.89%        10.79%     
2012     0.20%        61,149        11.221257        686,169        0.89%        10.57%     
2012     0.25%        121,309        11.206313        1,359,427        0.89%        10.51%     
2011     0.00%        3,347        10.182308        34,080        0.73%        -2.98%     
2011     0.20%        45,494        10.148540        461,698        0.73%        -3.18%     
2011     0.25%        106,951        10.140120        1,084,496        0.73%        -3.22%     

Retirement Emerging Markets Equity Portfolio - Service Shares (LZREMS)

2015     0.00%        68,728        8.592998        590,580        1.29%        -20.05%     
2015     0.10%        345,459        8.544459        2,951,760        1.29%        -20.13%     
2015     0.20%        1,291,479        8.496175        10,972,632        1.29%        -20.21%     
2015     0.25%        1,383,134        8.472143        11,718,109        1.29%        -20.25%     
2014     0.00%        88,176        10.748588        947,767        1.81%        -4.64%     
2014     0.20%        1,180,396        10.648799        12,569,800        1.81%        -4.83%     
2014     0.25%        1,263,096        10.623987        13,419,115        1.81%        -4.87%     
2013     0.00%        87,427        11.271168        985,404        1.47%        -1.24%     
2013     0.20%        1,067,931        11.188897        11,948,970        1.47%        -1.44%     
2013     0.25%        974,887        11.168411        10,887,939        1.47%        -1.49%     
2012     0.00%        100,164        11.413075        1,143,179        1.71%        22.05%     
2012     0.20%        1,098,975        11.352455        12,476,064        1.71%        21.81%     
2012     0.25%        782,058        11.337345        8,866,461        1.71%        21.75%     
2011     0.00%        37,548        9.351075        351,114        2.45%        -18.00%     
2011     0.20%        1,020,922        9.320058        9,515,052        2.45%        -18.16%     
2011     0.25%        725,228        9.312320        6,753,555        2.45%        -18.20%     

Series Fund - Bond Debenture Portfolio - Class VC (LOVBD)

2015     0.20%        6,227        9.926222        61,811        8.70%        -1.73%     
2015     0.25%        24,644        9.917959        244,418        8.70%        -1.78%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Series Fund - Mid Cap Stock Fund: Class VC (LOVMCV)

2015     0.00%        477      $ 18.870645      $ 9,001        0.10%        -3.79%     
2015     0.25%        4,964        18.374092        91,209        0.10%        -4.03%     
2014     0.00%        566        19.613313        11,101        0.34%        11.53%     
2014     0.10%        15,880        19.424648        308,463        0.34%        11.42%     
2014     0.20%        857        19.237814        16,487        0.34%        11.30%     
2014     0.25%        39,971        19.145041        765,246        0.34%        11.25%     
2013     0.00%        1,022        17.586030        17,973        0.44%        30.32%     
2013     0.10%        26,280        17.434295        458,173        0.44%        30.19%     
2013     0.20%        1,051        17.283875        18,165        0.44%        30.06%     
2013     0.25%        55,867        17.209128        961,422        0.44%        29.99%     
2012     0.00%        984        13.494607        13,279        0.77%        14.54%     
2012     0.10%        28,689        13.391551        384,190        0.77%        14.43%     
2012     0.20%        2,376        13.289281        31,575        0.77%        14.32%     
2012     0.25%        51,148        13.238427        677,119        0.77%        14.26%     
2011     0.00%        955        11.781054        11,251        0.18%        -4.01%     
2011     0.10%        39,336        11.702808        460,342        0.18%        -4.11%     
2011     0.20%        709        11.625075        8,242        0.18%        -4.20%     
2011     0.25%        37,912        11.586400        439,264        0.18%        -4.25%     

Series Fund, Inc. - Total Return Portfolio - Class VC (LOVTRC)

2015     0.00%        18,990        9.823716        186,552        6.21%        -1.76%      5/1/2015
2015     0.20%        410,148        9.810586        4,023,792        6.21%        -1.89%      5/1/2015
2015     0.25%        267,210        9.807308        2,620,611        6.21%        -1.93%      5/1/2015

VIT II - MFS Blended Research Core Equity Portfolio - Service Class (MVBRES)

2015     0.20%        12,993        11.093739        144,141        2.15%        0.67%     
2015     0.25%        61,074        11.084493        676,974        2.15%        0.62%     

Var Insurance Trust II - MFS Investors Growth Stock Portfolio: Initial Class (MV2IGI)

2015     0.00%        297,791        9.859642        2,936,113        0.50%        -1.40%      3/27/2015

Var Insurance Trust II - MFS Research International Portfolio: Service Class (MV2RIS)

2015     0.00%        13,582        9.168675        124,529        1.83%        -8.31%      3/27/2015
2015     0.20%        3,250        9.154659        29,753        1.83%        -8.45%      3/27/2015
2015     0.25%        293,189        9.151159        2,683,019        1.83%        -8.49%      3/27/2015

Variable Insurance Trust - MFS New Discovery Series - Intital Class (MNDIC)

2015     0.00%        30,567        13.309971        406,846        0.00%        -1.89%     
2014     0.00%        39,384        13.565726        534,273        0.00%        -7.26%     
2013     0.00%        54,531        14.627285        797,640        0.00%        41.52%     
2012     0.00%        7,796        10.335916        80,579        0.00%        3.36%      5/1/2012

New Discovery Series - Service Class (MNDSC)

2015     0.00%        941        13.189260        12,411        0.00%        -2.15%     
2015     0.20%        16,271        13.092899        213,035        0.00%        -2.34%     
2015     0.25%        10,017        13.068928        130,911        0.00%        -2.39%     
2014     0.00%        1,886        13.478411        25,420        0.00%        -7.49%     
2014     0.20%        37,903        13.406739        508,156        0.00%        -7.68%     
2014     0.25%        41,953        13.388879        561,704        0.00%        -7.72%     
2013     0.00%        1,759        14.570258        25,629        0.00%        41.22%     
2013     0.20%        26,567        14.521824        385,801        0.00%        40.94%     
2013     0.25%        120,227        14.509734        1,744,462        0.00%        40.86%     
2012     0.25%        65,112        10.300457        670,683        0.00%        3.00%      5/1/2012

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Value Series - Initial Class (MVFIC)

2015     0.00%        313,122      $ 31.585843      $ 9,890,222        2.29%        -0.74%     
2014     0.00%        314,764        31.820252        10,015,870        1.51%        10.51%     
2013     0.00%        368,819        28.794051        10,619,793        1.21%        35.89%     
2012     0.00%        394,370        21.189802        8,356,622        1.70%        16.26%     
2011     0.00%        407,456        18.226114        7,426,340        1.45%        -0.30%     

Value Series - Service Class (MVFSC)

2015     0.00%        271,339        15.375056        4,171,852        2.12%        -0.93%     
2015     0.20%        432,127        15.123050        6,535,078        2.12%        -1.13%     
2015     0.25%        1,692,308        15.060758        25,487,441        2.12%        -1.18%     
2014     0.00%        198,866        15.520016        3,086,404        1.33%        10.20%     
2014     0.20%        343,960        15.296190        5,261,278        1.33%        9.98%     
2014     0.25%        1,274,981        15.240803        19,431,734        1.33%        9.93%     
2013     0.00%        255,396        14.083227        3,596,800        1.02%        35.59%     
2013     0.20%        323,268        13.907900        4,495,979        1.02%        35.32%     
2013     0.25%        1,530,260        13.864468        21,216,241        1.02%        35.26%     
2012     0.00%        195,561        10.386254        2,031,146        1.48%        15.88%     
2012     0.20%        284,062        10.277471        2,919,439        1.48%        15.65%     
2012     0.25%        1,605,332        10.250498        16,455,452        1.48%        15.59%     
2011     0.00%        125,373        8.962764        1,123,689        1.19%        -0.47%     
2011     0.20%        263,888        8.886694        2,345,092        1.19%        -0.66%     
2011     0.25%        1,640,910        8.867804        14,551,268        1.19%        -0.71%     

Variable Insurance Trust II - MFS International Value Portfolio - Service Class (MVIVSC)

2015     0.00%        97,894        22.405934        2,193,407        1.81%        6.32%     
2015     0.10%        354,870        22.257143        7,898,392        1.81%        6.21%     
2015     0.20%        1,413,558        22.109267        31,252,731        1.81%        6.11%     
2015     0.25%        1,526,982        22.035743        33,648,183        1.81%        6.05%     
2014     0.00%        104,105        21.074086        2,193,918        1.84%        1.13%     
2014     0.20%        1,336,808        20.836672        27,854,630        1.84%        0.93%     
2014     0.25%        1,471,627        20.777757        30,577,108        1.84%        0.88%     
2013     0.00%        93,438        20.838059        1,947,067        1.39%        27.63%     
2013     0.20%        1,240,116        20.644557        25,601,645        1.39%        27.38%     
2013     0.25%        1,426,615        20.596474        29,383,239        1.39%        27.31%     
2012     0.00%        63,448        16.326534        1,035,886        1.59%        15.93%     
2012     0.20%        1,224,573        16.207264        19,846,978        1.59%        15.70%     
2012     0.25%        1,240,764        16.177603        20,072,587        1.59%        15.64%     
2011     0.00%        50,951        14.082958        717,541        1.09%        -1.78%     
2011     0.20%        714,526        14.008123        10,009,168        1.09%        -1.97%     
2011     0.25%        994,671        13.989490        13,914,940        1.09%        -2.02%     

Core Plus Fixed Income Portfolio - Class I (MSVFI)

2015     0.00%        101,355        15.862273        1,607,721        3.38%        -0.65%     
2014     0.00%        107,604        15.966198        1,718,027        2.84%        7.85%     
2013     0.00%        119,123        14.803414        1,763,427        3.52%        -0.32%     
2012     0.00%        159,977        14.850467        2,375,733        4.54%        9.44%     
2011     0.00%        186,591        13.569488        2,531,944        3.79%        5.65%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Emerging Markets Debt Portfolio - Class I (MSEM)

2015     0.00%        110,149      $ 32.973228      $ 3,631,968        5.22%        -1.12%     
2015     0.10%        643,557        42.357127        27,259,226        5.22%        -1.21%     
2015     0.20%        20,947        32.024984        670,827        5.22%        -1.31%     
2015     0.25%        52,130        31.784391        1,656,920        5.22%        -1.36%     
2014     0.00%        116,584        33.345098        3,887,505        5.48%        2.93%     
2014     0.10%        679,332        42.877705        29,128,197        5.48%        2.82%     
2014     0.20%        99,108        32.451024        3,216,156        5.48%        2.72%     
2014     0.25%        60,118        32.223332        1,937,202        5.48%        2.67%     
2013     0.00%        136,780        32.396627        4,431,211        4.05%        -8.75%     
2013     0.10%        683,536        41.699776        28,503,298        4.05%        -8.84%     
2013     0.20%        99,023        31.591112        3,128,247        4.05%        -8.93%     
2013     0.25%        65,940        31.385145        2,069,536        4.05%        -8.98%     
2012     0.00%        160,559        35.502855        5,700,303        2.86%        17.96%     
2012     0.10%        635,996        45.743742        29,092,837        2.86%        17.84%     
2012     0.20%        113,419        34.689455        3,934,443        2.86%        17.72%     
2012     0.25%        67,120        34.480526        2,314,333        2.86%        17.67%     
2011     0.00%        176,124        30.097113        5,300,824        3.60%        7.03%     
2011     0.10%        644,916        38.817591        25,034,086        3.60%        6.93%     
2011     0.20%        102,810        29.466572        3,029,458        3.60%        6.82%     
2011     0.25%        56,831        29.303784        1,665,363        3.60%        6.77%     

Global Real Estate Portfolio - Class II (VKVGR2)

2015     0.00%        24,205        11.401883        275,983        2.30%        -1.42%     
2015     0.20%        68,517        11.215001        768,418        2.30%        -1.61%     
2015     0.25%        378,409        11.168760        4,226,359        2.30%        -1.66%     
2014     0.00%        23,630        11.565859        273,301        0.69%        13.85%     
2014     0.20%        66,035        11.399066        752,737        0.69%        13.62%     
2014     0.25%        332,031        11.357738        3,771,121        0.69%        13.57%     
2013     0.00%        20,978        10.158786        213,111        3.58%        2.63%     
2013     0.20%        28,295        10.032314        283,864        3.58%        2.43%     
2013     0.25%        241,618        10.000939        2,416,407        3.58%        2.38%     
2012     0.00%        24,795        9.898065        245,423        0.54%        29.94%     
2012     0.20%        36,580        9.794401        358,279        0.54%        29.68%     
2012     0.25%        180,879        9.768654        1,766,944        0.54%        29.62%     
2011     0.00%        26,783        7.617163        204,010        3.29%        -10.15%     
2011     0.20%        17,677        7.552508        133,506        3.29%        -10.33%     
2011     0.25%        100,281        7.536433        755,761        3.29%        -10.38%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio - Class I (MSVMG)

2015     0.00%        26,769      $ 16.988924      $ 454,777        0.00%        -5.90%     
2015     0.20%        202,416        16.464670        3,332,713        0.00%        -6.08%     
2015     0.25%        332,566        16.336194        5,432,863        0.00%        -6.13%     
2014     0.00%        24,449        18.053453        441,389        0.00%        1.97%     
2014     0.10%        56,373        17.790475        1,002,902        0.00%        1.87%     
2014     0.20%        181,537        17.531393        3,182,596        0.00%        1.76%     
2014     0.25%        496,484        17.403302        8,640,461        0.00%        1.71%     
2013     0.00%        26,706        17.705006        472,830        0.37%        37.49%     
2013     0.10%        40,468        17.464563        706,756        0.37%        37.35%     
2013     0.20%        174,382        17.227448        3,004,157        0.37%        37.21%     
2013     0.25%        543,483        17.110132        9,299,066        0.37%        37.14%     
2012     0.00%        23,806        12.877689        306,566        0.00%        8.69%     
2012     0.10%        48,845        12.715499        621,089        0.00%        8.58%     
2012     0.20%        192,237        12.555398        2,413,612        0.00%        8.47%     
2012     0.25%        635,504        12.476126        7,928,628        0.00%        8.42%     
2011     0.00%        25,089        11.847974        297,254        0.33%        -7.12%     
2011     0.10%        63,621        11.710491        745,033        0.33%        -7.21%     
2011     0.20%        309,678        11.574643        3,584,412        0.33%        -7.31%     
2011     0.25%        580,598        11.507335        6,681,136        0.33%        -7.35%     

Universal Institutional Funds, Inc. - Growth Portfolio - Class I (MSVEG)

2015     0.00%        9,997        20.413362        204,072        0.00%        12.24%     
2015     0.20%        6,146        20.078873        123,405        0.00%        12.01%     
2015     0.25%        53,142        19.996047        1,062,630        0.00%        11.96%     
2014     0.00%        6,103        18.187389        110,998        0.00%        6.36%     
2014     0.20%        5,814        17.925168        104,217        0.00%        6.15%     
2014     0.25%        59,657        17.860156        1,065,483        0.00%        6.09%     
2013     0.00%        3,341        17.099754        57,130        0.53%        48.07%     
2013     0.20%        6,972        16.886950        117,736        0.53%        47.78%     
2013     0.25%        82,697        16.834126        1,392,132        0.53%        47.70%     
2012     0.00%        1,068        11.548298        12,334        0.00%        14.38%     
2012     0.20%        8,437        11.427394        96,413        0.00%        14.15%     
2012     0.25%        125,623        11.397332        1,431,767        0.00%        14.09%     
2011     0.00%        4,822        10.096697        48,686        0.04%        -2.80%     
2011     0.20%        3,377        10.011033        33,807        0.04%        -2.99%     
2011     0.25%        66,787        9.989709        667,183        0.04%        -3.04%     

U.S. Real Estate Portfolio - Class I (MSVRE)

2015     0.10%        78,351        60.125749        4,710,913        1.35%        2.07%     
2015     0.20%        40,970        48.430950        1,984,216        1.35%        1.97%     
2015     0.25%        283,644        48.067000        13,633,916        1.35%        1.92%     
g                           2014     0.10%        59,709        58.907321        3,517,297        1.39%        29.59%     
2014     0.20%        32,267        47.496982        1,532,585        1.39%        29.46%     
2014     0.25%        325,980        47.163617        15,374,396        1.39%        29.40%     
2013     0.10%        49,656        45.456233        2,257,175        1.13%        1.95%     
2013     0.20%        32,599        36.687985        1,195,992        1.13%        1.85%     
2013     0.25%        371,524        36.448690        13,541,563        1.13%        1.80%     
2012     0.10%        83,283        44.585930        3,713,250        0.84%        15.72%     
2012     0.20%        167,696        36.021570        6,040,673        0.84%        15.60%     
2012     0.25%        409,531        35.804517        14,663,060        0.84%        15.55%     
2011     0.10%        101,526        38.529319        3,911,728        0.88%        5.81%     
2011     0.20%        189,017        31.159562        5,889,687        0.88%        5.71%     
2011     0.25%        472,847        30.987316        14,652,259        0.88%        5.66%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Investor Destinations Managed Growth and Income Class I (IDPGI)

2014     0.00%        1      $ 10.196266      $ 10        2.52%        1.96%      5/1/2014

NVIT Investor Destinations Managed Growth Class I (IDPG)

2015     0.00%        4,397        9.768489        42,952        1.83%        -3.71%     

NVIT Cardinal Managed Growth Class I (NCPG)

2015     0.00%        4,610        9.617936        44,339        1.34%        -4.62%     
2014     0.00%        4,296        10.083558        43,319        3.21%        0.84%      5/1/2014

NVIT Bond Index Fund Class I (NVBX)

2015     0.00%        1,003,522        10.292554        10,328,804        2.32%        0.14%     
2015     0.10%        747,019        10.275385        7,675,908        2.32%        0.04%     
2015     0.20%        7,019,738        10.258256        72,010,269        2.32%        -0.06%     
2015     0.25%        524,594        10.249699        5,376,931        2.32%        -0.11%     
2014     0.00%        443,358        10.277970        4,556,820        3.92%        2.78%      5/1/2014
2014     0.20%        5,155,962        10.264234        52,922,000        3.92%        2.64%      5/1/2014
2014     0.25%        46,311        10.260803        475,188        3.92%        2.61%      5/1/2014

NVIT International Index Fund Class I (NVIX)

2015     0.00%        296,030        9.110733        2,697,050        3.36%        -0.96%     
2015     0.10%        21,165        9.095533        192,507        3.36%        -1.06%     
2015     0.20%        1,075,178        9.080363        9,763,007        3.36%        -1.16%     
2015     0.25%        833,286        9.072786        7,560,226        3.36%        -1.21%     
2014     0.00%        319,484        9.198938        2,938,914        2.49%        -8.01%      5/1/2014
2014     0.20%        187,603        9.186635        1,723,440        2.49%        -8.13%      5/1/2014
2014     0.25%        738,092        9.183562        6,778,314        2.49%        -8.16%      5/1/2014

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)

2015     0.00%        1,546,350        23.497274        36,335,010        2.39%        -4.28%     
2014     0.00%        1,667,165        24.546677        40,923,361        2.00%        13.12%     
2013     0.00%        1,832,139        21.699995        39,757,407        1.86%        31.90%     
2012     0.00%        1,980,422        16.452105        32,582,111        0.98%        14.66%     
2011     0.00%        2,222,487        14.348277        31,888,859        1.60%        0.65%     

American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)

2015     0.00%        519,808        16.606784        8,632,339        1.42%        0.98%     
2014     0.00%        490,736        16.444935        8,070,122        0.95%        4.99%     
2013     0.00%        487,528        15.663250        7,636,273        1.31%        23.28%     
2012     0.00%        477,179        12.704984        6,062,552        1.36%        15.72%     
2011     0.00%        433,074        10.979437        4,754,909        1.37%        0.93%     

American Funds NVIT Bond Fund - Class II (GVABD2)

2015     0.00%        113,914        13.166435        1,499,841        1.36%        -0.23%     
2014     0.00%        117,093        13.196903        1,545,265        1.22%        4.98%     
2013     0.00%        122,305        12.571090        1,537,507        1.67%        -2.57%     
2012     0.00%        158,000        12.903197        2,038,705        2.20%        4.97%     
2011     0.00%        174,797        12.292646        2,148,718        2.35%        5.72%     

American Funds NVIT Global Growth Fund - Class II (GVAGG2)

2015     0.00%        426,191        18.531767        7,898,072        0.69%        6.54%     
2014     0.00%        375,662        17.393687        6,534,147        0.70%        1.84%     
2013     0.00%        394,540        17.080144        6,738,800        0.39%        28.64%     
2012     0.00%        374,929        13.277399        4,978,082        0.87%        22.09%     
2011     0.00%        426,331        10.875437        4,636,536        1.00%        -9.31%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

American Funds NVIT Growth Fund - Class II (GVAGR2)

2015     0.00%        539,000      $ 17.702463      $ 9,541,628        0.71%        6.43%     
2014     0.00%        582,797        16.633406        9,693,899        0.44%        8.07%     
2013     0.00%        660,438        15.391784        10,165,319        0.32%        29.61%     
2012     0.00%        656,818        11.875465        7,800,019        0.21%        17.40%     
2011     0.00%        786,500        10.115272        7,955,661        0.26%        -4.69%     

American Funds NVIT Growth-Income Fund - Class II (GVAGI2)

2015     0.00%        198,459        15.067505        2,990,282        0.84%        1.09%     
2014     0.00%        223,749        14.905501        3,335,091        0.79%        10.23%     
2013     0.00%        235,408        13.522509        3,183,307        0.98%        32.97%     
2012     0.00%        247,986        10.169772        2,521,961        1.05%        17.06%     
2011     0.00%        279,694        8.687464        2,429,832        0.99%        -2.24%     

Federated NVIT High Income Bond Fund - Class I (HIBF)

2015     0.00%        428,838        25.623622        10,988,383        5.47%        -2.61%     
2015     0.10%        30,418        22.988781        699,273        5.47%        -2.70%     
2015     0.20%        67,872        25.575241        1,735,843        5.47%        -2.80%     
2015     0.25%        264,978        25.383080        6,725,958        5.47%        -2.85%     
2014     0.00%        494,739        26.309492        13,016,332        5.48%        2.55%     
2014     0.10%        53,100        23.627747        1,254,633        5.48%        2.45%     
2014     0.20%        43,817        26.312407        1,152,931        5.48%        2.35%     
2014     0.25%        224,498        26.127774        5,865,633        5.48%        2.29%     
2013     0.00%        128,661        25.655193        3,300,823        6.14%        7.07%     
2013     0.10%        36,676        23.063197        845,866        6.14%        6.97%     
2013     0.20%        47,088        25.709396        1,210,604        6.14%        6.86%     
2013     0.25%        467,044        25.541772        11,929,131        6.14%        6.80%     
2012     0.00%        164,273        23.960670        3,936,091        8.24%        14.56%     
2012     0.10%        100,719        21.561437        2,171,646        8.24%        14.44%     
2012     0.20%        51,215        24.059374        1,232,201        8.24%        14.33%     
2012     0.25%        574,902        23.914452        13,748,466        8.24%        14.27%     
2011     0.00%        192,805        20.916000        4,032,709        8.22%        3.82%     
2011     0.10%        94,398        18.840517        1,778,507        8.22%        3.71%     
2011     0.20%        31,722        21.044304        667,567        8.22%        3.61%     
2011     0.25%        618,849        20.928041        12,951,297        8.22%        3.56%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Emerging Markets Fund - Class I (GEM)

2015     0.00%        342,530      $ 21.512038      $ 7,368,518        0.85%        -15.99%     
2015     0.10%        53,412        21.186458        1,131,611        0.85%        -16.08%     
2015     0.20%        9,202        20.865728        192,006        0.85%        -16.16%     
2015     0.25%        127,704        20.707235        2,644,397        0.85%        -16.20%     
2014     0.00%        358,435        25.608009        9,178,807        1.22%        -5.51%     
2014     0.10%        56,025        25.245709        1,414,391        1.22%        -5.60%     
2014     0.20%        5,527        24.888440        137,558        1.22%        -5.69%     
2014     0.25%        137,441        24.711758        3,396,409        1.22%        -5.74%     
2013     0.00%        63,515        27.100074        1,721,261        1.10%        0.75%     
2013     0.10%        59,951        26.743408        1,603,294        1.10%        0.65%     
2013     0.20%        36,400        26.391340        960,645        1.10%        0.54%     
2013     0.25%        188,020        26.217108        4,929,341        1.10%        0.49%     
2012     0.00%        72,637        26.899413        1,953,893        0.50%        17.22%     
2012     0.10%        100,722        26.571947        2,676,380        0.50%        17.10%     
2012     0.20%        47,858        26.248380        1,256,195        0.50%        16.98%     
2012     0.25%        221,809        26.088139        5,786,584        0.50%        16.92%     
2011     0.00%        86,175        22.948246        1,977,565        0.51%        -22.37%     
2011     0.10%        135,864        22.691603        3,082,972        0.51%        -22.45%     
2011     0.20%        37,968        22.437772        851,917        0.51%        -22.53%     
2011     0.25%        208,036        22.311980        4,641,695        0.51%        -22.57%     

NVIT International Equity Fund - Class I (GIG)

2015     0.00%        726,720        16.060113        11,671,205        0.54%        -3.06%     
2015     0.10%        112,022        15.817045        1,771,857        0.54%        -3.15%     
2015     0.20%        98,208        15.577704        1,529,855        0.54%        -3.25%     
2015     0.25%        198,942        15.459367        3,075,517        0.54%        -3.30%     
2014     0.00%        602,146        16.566460        9,975,428        3.56%        -0.45%     
2014     0.10%        90,986        16.332055        1,485,988        3.56%        -0.55%     
2014     0.20%        60,911        16.101032        980,730        3.56%        -0.65%     
2014     0.25%        206,679        15.986719        3,304,119        3.56%        -0.70%     
2013     0.00%        364,085        16.641029        6,058,666        0.54%        17.83%     
2013     0.10%        87,333        16.421986        1,434,181        0.54%        17.71%     
2013     0.20%        38,703        16.205894        627,217        0.54%        17.60%     
2013     0.25%        306,552        16.098886        4,935,146        0.54%        17.54%     
2012     0.00%        399,009        14.122631        5,635,057        0.87%        15.61%     
2012     0.10%        105,286        13.950678        1,468,811        0.87%        15.49%     
2012     0.20%        23,573        13.780870        324,856        0.87%        15.38%     
2012     0.25%        230,188        13.696713        3,152,819        0.87%        15.32%     
2011     0.00%        402,975        12.216006        4,922,745        1.35%        -9.76%     
2011     0.10%        146,364        12.079365        1,767,984        1.35%        -9.85%     
2011     0.20%        21,256        11.944297        253,888        1.35%        -9.94%     
2011     0.25%        211,674        11.877298        2,514,115        1.35%        -9.99%     

Variable Insurance Trust: NVIT International Equity Fund - Class VI (NVIE6)

2015     0.00%        20,759        9.438443        195,933        0.25%        -3.22%     
2014     0.00%        25,389        9.752483        247,606        3.79%        -0.72%     
2013     0.00%        27,530        9.823149        270,431        0.53%        17.56%     
2012     0.00%        29,454        8.355696        246,109        0.52%        15.23%     
2011     0.00%        48,864        7.251572        354,341        0.92%        -10.00%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)

2015     0.00%        1,043,310      $ 14.364226      $ 14,986,341        0.77%        -1.08%     
2014     0.00%        1,156,523        14.520984        16,793,852        0.89%        6.60%     
2013     0.00%        1,264,376        13.621982        17,223,307        1.05%        43.82%     
2012     0.00%        1,373,296        9.471654        13,007,385        1.47%        16.94%     
2011     0.00%        1,522,830        8.099461        12,334,102        0.57%        -11.62%     

Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)

2015     0.00%        16,728        16.586071        277,452        0.77%        -0.32%     
2014     0.00%        20,963        16.639955        348,823        0.40%        10.60%     
2013     0.00%        63,496        15.044832        955,287        1.00%        38.77%     
2012     0.00%        26,852        10.841924        291,127        0.88%        11.50%     
2011     0.00%        59,405        9.723793        577,642        0.72%        -3.18%     

NVIT Cardinal Aggressive Fund - Class I (NVCRA1)

2015     0.00%        253,403        13.867876        3,514,161        2.63%        -1.58%     
2015     0.20%        439        21.354165        9,374        2.63%        -1.77%     
2015     0.25%        3,502        21.283096        74,533        2.63%        -1.82%     
2014     0.00%        291,687        14.089818        4,109,817        2.30%        4.48%     
2014     0.20%        192        21.739366        4,174        2.30%        4.27%     
2014     0.25%        2,223        21.677860        48,190        2.30%        4.21%     
2013     0.00%        260,801        13.486224        3,517,221        1.43%        29.65%     
2013     0.20%        536        20.849732        11,175        1.43%        29.39%     
2013     0.25%        639        20.801156        13,292        1.43%        29.32%     
2012     0.00%        213,197        10.402170        2,217,711        1.16%        16.22%     
2012     0.20%        76        16.113951        1,225        1.16%        15.99%     
2012     0.25%        104        16.084433        1,673        1.16%        15.93%     
2011     0.00%        181,560        8.950086        1,624,978        2.09%        -6.19%     
2011     0.20%        10        13.892348        139        2.09%        -6.37%     
2011     0.25%        202        13.873846        2,803        2.09%        -6.42%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Cardinal Balanced Fund - Class I (NVCRB1)

2015     0.00%        613,484      $ 13.800315      $ 8,466,272        2.73%        -1.05%     
2015     0.10%        9,590,709        16.858906        161,688,862        2.73%        -1.15%     
2015     0.25%        28,755        16.691179        479,955        2.73%        -1.30%     
2014     0.00%        530,422        13.947302        7,397,956        2.41%        4.46%     
2014     0.10%        9,676,754        17.055519        165,042,062        2.41%        4.36%     
2014     0.25%        17,462        16.911187        295,303        2.41%        4.20%     
2013     0.00%        409,479        13.351426        5,467,129        1.74%        14.72%     
2013     0.10%        9,799,660        16.343180        160,157,607        1.74%        14.60%     
2012     0.00%        345,977        11.638522        4,026,661        1.58%        11.24%     
2012     0.10%        9,918,231        14.260689        141,440,808        1.58%        11.13%     
2011     0.00%        273,343        10.462826        2,859,940        2.55%        -1.26%     
2011     0.10%        10,039,458        12.832969        128,836,053        2.55%        -1.36%     

NVIT Cardinal Capital Appreciation Fund - Class I (NVCCA1)

2015     0.00%        400,439        14.021191        5,614,632        2.92%        -1.15%     
2015     0.25%        13,209        18.814356        248,519        2.92%        -1.39%     
2014     0.00%        496,154        14.183683        7,037,291        2.52%        4.70%     
2014     0.25%        6,154        19.080050        117,419        2.52%        4.44%     
2013     0.00%        502,970        13.546578        6,813,522        1.76%        21.44%     
2013     0.25%        2,966        18.268625        54,185        1.76%        21.14%     
2012     0.00%        417,509        11.154725        4,657,198        1.55%        13.74%     
2011     0.00%        353,307        9.807509        3,465,062        2.31%        -3.37%     
2011     0.20%        7        13.310277        93        2.31%        -3.56%     
2011     0.25%        8        13.292549        106        2.31%        -3.61%     

NVIT Cardinal Conservative Fund - Class I (NVCCN1)

2015     0.00%        290,791        13.034982        3,790,455        1.93%        -0.65%     
2015     0.20%        12,852        13.726536        176,413        1.93%        -0.85%     
2015     0.25%        12,143        13.680854        166,127        1.93%        -0.90%     
2014     0.00%        403,620        13.120260        5,295,599        2.33%        3.42%     
2014     0.20%        14,273        13.844008        197,596        2.33%        3.21%     
2014     0.25%        523        13.804832        7,220        2.33%        3.16%     
2013     0.00%        343,843        12.686282        4,362,089        1.92%        5.03%     
2013     0.20%        13,445        13.412895        180,336        1.92%        4.82%     
2013     0.25%        178        13.381633        2,382        1.92%        4.77%     
2012     0.00%        375,872        12.078891        4,540,117        2.04%        7.58%     
2012     0.20%        317        12.796286        4,056        2.04%        7.36%     
2012     0.25%        99        12.772842        1,265        2.04%        7.31%     
2011     0.00%        244,720        11.227964        2,747,707        2.65%        1.50%     
2011     0.20%        223        11.918680        2,658        2.65%        1.30%     

NVIT Cardinal Moderate Fund - Class I (NVCMD1)

2015     0.00%        482,383        13.935133        6,722,071        2.86%        -0.98%     
2015     0.20%        4,416        17.801976        78,614        2.86%        -1.17%     
2015     0.25%        3,309        17.742741        58,711        2.86%        -1.22%     
2014     0.00%        525,002        14.072360        7,388,017        2.58%        4.66%     
2014     0.20%        142        18.013284        2,558        2.58%        4.45%     
2014     0.25%        1,908        17.962322        34,272        2.58%        4.40%     
2013     0.00%        465,059        13.446120        6,253,239        1.68%        17.98%     
2013     0.20%        48        17.246137        828        1.68%        17.74%     
2013     0.25%        125        17.205926        2,151        1.68%        17.68%     
2012     0.00%        489,603        11.397169        5,580,088        1.47%        12.45%     
2011     0.00%        534,729        10.135390        5,419,687        2.45%        -2.25%     
2011     0.25%        8        13.034508        104        2.45%        -2.49%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Cardinal Moderately Aggressive Fund - Class I (NVCMA1)

2015     0.00%        452,610      $ 13.921442      $ 6,300,984        3.14%        -1.43%     
2015     0.20%        1,467        19.789779        29,032        3.14%        -1.62%     
2015     0.25%        11,390        19.723929        224,656        3.14%        -1.67%     
2014     0.00%        492,402        14.122912        6,954,150        2.54%        4.66%     
2014     0.20%        772        20.116383        15,530        2.54%        4.45%     
2014     0.25%        7,612        20.059477        152,693        2.54%        4.40%     
2013     0.00%        538,407        13.494322        7,265,437        1.65%        24.35%     
2013     0.20%        38        19.259520        732        1.65%        24.11%     
2013     0.25%        1,287        19.214638        24,729        1.65%        24.04%     
2012     0.00%        475,205        10.851463        5,156,669        1.27%        14.67%     
2012     0.20%        29        15.518526        450        1.27%        14.44%     
2012     0.25%        32        15.490103        496        1.27%        14.38%     
2011     0.00%        513,993        9.463303        4,864,071        2.42%        -4.57%     
2011     0.20%        31        13.560483        420        2.42%        -4.76%     
2011     0.25%        35        13.542423        474        2.42%        -4.81%     

NVIT Cardinal Moderately Conservative Fund - Class I (NVCMC1)

2015     0.00%        324,148        13.598100        4,407,797        2.82%        -0.88%     
2015     0.20%        9,182        15.716772        144,311        2.82%        -1.08%     
2015     0.25%        23,446        15.664472        367,269        2.82%        -1.13%     
2014     0.00%        243,977        13.718708        3,347,049        2.59%        4.17%     
2014     0.20%        9,063        15.887922        143,992        2.59%        3.96%     
2014     0.25%        21,867        15.842970        346,438        2.59%        3.91%     
2013     0.00%        210,016        13.169178        2,765,738        2.10%        11.33%     
2013     0.20%        3,323        15.282040        50,782        2.10%        11.11%     
2013     0.25%        20,825        15.246428        317,507        2.10%        11.05%     
2012     0.00%        151,616        11.828808        1,793,437        1.97%        10.13%     
2012     0.20%        2,766        13.754085        38,044        1.97%        9.91%     
2012     0.25%        13,974        13.728890        191,848        1.97%        9.86%     
2011     0.00%        114,210        10.740467        1,226,669        2.52%        -0.28%     
2011     0.20%        665        12.513661        8,322        2.52%        -0.48%     

NVIT Core Bond Fund - Class I (NVCBD1)

2015     0.00%        71,807        13.609836        977,281        2.55%        -0.72%     
2014     0.00%        72,271        13.708553        990,731        3.25%        5.06%     
2013     0.00%        65,876        13.048920        859,611        2.38%        -1.91%     
2012     0.00%        72,492        13.303193        964,375        3.01%        7.75%     
2011     0.00%        80,629        12.345910        995,438        3.32%        6.59%     

NVIT Core Plus Bond Fund - Class I (NVLCP1)

2015     0.00%        163,170        14.773963        2,410,668        1.87%        -0.32%     
2014     0.00%        165,785        14.821038        2,457,106        2.41%        5.09%     
2013     0.00%        68,382        14.103213        964,406        2.14%        -1.77%     
2012     0.00%        88,003        14.357681        1,263,519        3.10%        7.38%     
2011     0.00%        35,901        13.370773        480,024        2.56%        6.37%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Nationwide Fund - Class I (TRF)

2015     0.00%        1,525,407      $ 23.717948      $ 36,179,524        1.25%        0.94%     
2015     0.10%        4,469,016        19.370055        86,565,086        1.25%        0.83%     
2015     0.25%        6,614        18.592710        122,972        1.25%        0.68%     
2014     0.00%        1,650,623        23.498134        38,786,560        1.18%        12.15%     
2014     0.10%        3,872,860        19.209740        74,396,634        1.18%        12.04%     
2014     0.25%        11,608        18.466505        214,359        1.18%        11.87%     
2013     0.00%        1,734,648        20.952837        36,345,797        1.36%        31.10%     
2013     0.10%        3,480,031        17.146101        59,668,963        1.36%        30.97%     
2013     0.25%        20,745        16.507449        342,447        1.36%        30.77%     
2012     0.00%        1,864,535        15.982186        29,799,345        1.42%        14.21%     
2012     0.10%        3,747,612        13.091593        49,062,211        1.42%        14.10%     
2012     0.20%        2,665        12.699413        33,844        1.42%        13.99%     
2012     0.25%        15,896        12.622880        200,653        1.42%        13.93%     
2011     0.00%        2,024,151        13.993147        28,324,242        1.15%        0.53%     
2011     0.10%        4,619,387        11.473793        53,001,890        1.15%        0.43%     
2011     0.20%        3,750        11.141231        41,780        1.15%        0.33%     
2011     0.25%        19,700        11.079648        218,269        1.15%        0.28%     

NVIT Government Bond Fund - Class I (GBF)

2015     0.00%        1,137,214        22.031686        25,054,742        1.66%        -0.11%     
2015     0.20%        654,929        18.199180        11,919,171        1.66%        -0.31%     
2015     0.25%        1,004,635        18.062479        18,146,199        1.66%        -0.36%     
2014     0.00%        1,213,618        22.055640        26,767,122        1.84%        4.57%     
2014     0.10%        84,462        20.206888        1,706,714        1.84%        4.46%     
2014     0.20%        718,600        18.255441        13,118,360        1.84%        4.36%     
2014     0.25%        1,221,280        18.127386        22,138,614        1.84%        4.31%     
2013     0.00%        1,336,944        21.091950        28,198,756        1.58%        -4.06%     
2013     0.10%        890,350        19.343317        17,222,322        1.58%        -4.15%     
2013     0.20%        816,538        17.492749        14,283,494        1.58%        -4.25%     
2013     0.25%        1,634,584        17.378731        28,406,996        1.58%        -4.29%     
2012     0.00%        1,674,246        21.983438        36,805,683        2.29%        3.06%     
2012     0.10%        909,849        20.181071        18,361,727        2.29%        2.95%     
2012     0.20%        1,212,740        18.268614        22,155,079        2.29%        2.85%     
2012     0.25%        3,051,816        18.158617        55,416,758        2.29%        2.80%     
2011     0.00%        1,713,711        21.331346        36,555,762        2.95%        7.25%     
2011     0.10%        177,033        19.602079        3,470,215        2.95%        7.15%     
2011     0.20%        1,225,833        17.762299        21,773,612        2.95%        7.04%     
2011     0.25%        3,176,064        17.664198        56,102,623        2.95%        6.99%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

American Century NVIT Growth Fund - Class I (CAF)

2015     0.00%        909,595      $ 16.529138      $ 15,034,821        0.35%        4.67%     
2015     0.10%        76,075        12.387039        942,344        0.35%        4.56%     
2015     0.20%        38,789        15.745641        610,758        0.35%        4.46%     
2015     0.25%        4,583        15.627282        71,620        0.35%        4.41%     
2014     0.00%        981,320        15.791950        15,496,956        0.35%        11.33%     
2014     0.10%        80,858        11.846425        957,878        0.35%        11.22%     
2014     0.20%        32,508        15.073515        490,010        0.35%        11.11%     
2014     0.25%        4,658        14.967679        69,719        0.35%        11.05%     
2013     0.00%        1,067,343        14.184902        15,140,156        0.68%        29.74%     
2013     0.10%        89,080        10.651528        948,838        0.68%        29.61%     
2013     0.20%        32,019        13.566675        434,391        0.68%        29.48%     
2013     0.25%        4,807        13.478153        64,789        0.68%        29.42%     
2012     0.00%        1,163,480        10.933376        12,720,764        0.56%        14.02%     
2012     0.10%        107,268        8.218140        881,543        0.56%        13.91%     
2012     0.20%        27,007        10.477780        282,973        0.56%        13.79%     
2012     0.25%        7,147        10.414612        74,433        0.56%        13.74%     
2011     0.00%        1,203,204        9.588872        11,537,369        0.58%        -0.69%     
2011     0.10%        127,078        7.214766        916,838        0.58%        -0.79%     
2011     0.20%        25,516        9.207740        234,945        0.58%        -0.89%     
2011     0.25%        5,000        9.156818        45,784        0.58%        -0.94%     

NVIT International Index Fund - Class II (GVIX2)

2015     0.00%        237,830        9.257870        2,201,799        2.05%        -1.26%     
2015     0.20%        22,993        9.098676        209,206        2.05%        -1.46%     
2015     0.25%        100,299        9.059353        908,644        2.05%        -1.50%     
2014     0.00%        222,311        9.375800        2,084,343        2.77%        -6.12%     
2014     0.20%        23,168        9.233042        213,911        2.77%        -6.31%     
2014     0.25%        123,081        9.197726        1,132,065        2.77%        -6.36%     
2013     0.00%        268,735        9.987487        2,683,987        3.02%        21.36%     
2013     0.20%        56,128        9.855117        553,148        3.02%        21.12%     
2013     0.25%        706,807        9.822334        6,942,494        3.02%        21.06%     
2012     0.00%        194,912        8.229456        1,604,020        2.39%        18.29%     
2012     0.20%        32,518        8.136631        264,587        2.39%        18.05%     
2012     0.25%        714,474        8.113620        5,796,971        2.39%        17.99%     
2011     0.00%        130,671        6.957271        909,114        2.62%        -12.72%     
2011     0.20%        8,251        6.892598        56,871        2.62%        -12.89%     
2011     0.25%        907,509        6.876547        6,240,528        2.62%        -12.94%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

2015     0.00%        727,752      $ 22.707558      $ 16,525,471        1.39%        -1.00%     
2015     0.10%        146,618        22.393395        3,283,275        1.39%        -1.10%     
2015     0.20%        77,739        22.083606        1,716,757        1.39%        -1.20%     
2015     0.25%        17,642        21.930272        386,894        1.39%        -1.25%     
2014     0.00%        799,256        22.936445        18,332,091        1.57%        4.99%     
2014     0.10%        126,953        22.641744        2,874,437        1.57%        4.88%     
2014     0.20%        87,812        22.350869        1,962,675        1.57%        4.78%     
2014     0.25%        59,852        22.206782        1,329,120        1.57%        4.72%     
2013     0.00%        949,387        21.847269        20,741,513        1.70%        27.25%     
2013     0.10%        139,994        21.588139        3,022,210        1.70%        27.12%     
2013     0.20%        93,168        21.332126        1,987,472        1.70%        26.99%     
2013     0.25%        91,665        21.205202        1,943,775        1.70%        26.93%     
2012     0.00%        970,552        17.169227        16,663,628        1.41%        15.90%     
2012     0.10%        128,197        16.982548        2,177,112        1.41%        15.79%     
2012     0.20%        90,669        16.797930        1,523,052        1.41%        15.67%     
2012     0.25%        92,309        16.706332        1,542,145        1.41%        15.61%     
2011     0.00%        1,230,015        14.813448        18,220,763        1.80%        -3.93%     
2011     0.10%        162,340        14.667084        2,381,054        1.80%        -4.03%     
2011     0.20%        83,626        14.522177        1,214,432        1.80%        -4.12%     
2011     0.25%        137,252        14.450227        1,983,323        1.80%        -4.17%     

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

2015     0.00%        90,670        16.704200        1,514,570        1.45%        -0.17%     
2014     0.00%        117,578        16.733256        1,967,463        1.72%        4.59%     
2013     0.00%        109,004        15.999643        1,744,025        1.76%        13.42%     
2012     0.00%        101,106        14.106085        1,426,210        2.24%        9.39%     
2011     0.00%        12,871        12.895684        165,980        2.25%        0.88%     

NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)

2015     0.00%        38,096        19.013052        724,321        1.65%        -0.53%     
2014     0.00%        34,838        19.114689        665,918        2.15%        5.21%     
2013     0.00%        16,580        18.167791        301,222        1.53%        19.49%     
2012     0.00%        23,052        15.203946        350,481        1.85%        12.25%     
2011     0.00%        20,856        13.544740        282,489        2.08%        -0.94%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

2015     0.00%        359,127      $ 16.833321      $ 6,045,300        1.78%        0.26%     
2015     0.10%        59,565        16.600530        988,811        1.78%        0.16%     
2015     0.20%        102,459        16.370829        1,677,339        1.78%        0.06%     
2015     0.25%        95,452        16.257257        1,551,788        1.78%        0.01%     
2014     0.00%        474,185        16.788858        7,961,025        1.88%        3.89%     
2014     0.10%        4,299        16.573239        71,248        1.88%        3.79%     
2014     0.20%        83,998        16.360271        1,374,230        1.88%        3.68%     
2014     0.25%        96,493        16.254896        1,568,484        1.88%        3.63%     
2013     0.00%        504,094        16.160183        8,146,251        1.63%        4.83%     
2013     0.10%        4,260        15.968590        68,026        1.63%        4.73%     
2013     0.20%        62,295        15.779171        982,963        1.63%        4.62%     
2013     0.25%        104,547        15.685383        1,639,860        1.63%        4.57%     
2012     0.00%        535,106        15.415374        8,248,859        1.71%        5.18%     
2012     0.10%        8,967        15.247831        136,727        1.71%        5.07%     
2012     0.20%        69,257        15.082043        1,044,537        1.71%        4.97%     
2012     0.25%        142,595        14.999901        2,138,911        1.71%        4.91%     
2011     0.00%        589,915        14.656785        8,646,257        2.50%        2.93%     
2011     0.10%        22,883        14.512020        332,079        2.50%        2.83%     
2011     0.20%        56,571        14.368627        812,848        2.50%        2.73%     
2011     0.25%        143,852        14.297532        2,056,729        2.50%        2.67%     

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

2015     0.00%        2,505,882        20.473919        51,305,225        1.61%        -0.33%     
2015     0.10%        298,948        20.190683        6,035,964        1.61%        -0.43%     
2015     0.20%        203,043        19.911325        4,042,855        1.61%        -0.53%     
2015     0.25%        130,280        19.773092        2,576,038        1.61%        -0.58%     
2014     0.00%        2,828,965        20.542646        58,114,427        1.67%        5.18%     
2014     0.10%        179,347        20.278734        3,636,930        1.67%        5.08%     
2014     0.20%        241,999        20.018180        4,844,380        1.67%        4.97%     
2014     0.25%        171,804        19.889138        3,417,033        1.67%        4.92%     
2013     0.00%        3,094,770        19.530736        60,442,452        1.61%        16.63%     
2013     0.10%        182,069        19.299113        3,513,770        1.61%        16.51%     
2013     0.20%        243,997        19.070216        4,653,075        1.61%        16.39%     
2013     0.25%        215,943        18.956755        4,093,579        1.61%        16.34%     
2012     0.00%        3,467,574        16.746328        58,069,132        1.61%        10.81%     
2012     0.10%        164,770        16.564270        2,729,295        1.61%        10.70%     
2012     0.20%        250,897        16.384181        4,110,742        1.61%        10.59%     
2012     0.25%        287,419        16.294844        4,683,448        1.61%        10.53%     
2011     0.00%        3,959,245        15.112388        59,833,118        2.12%        -0.04%     
2011     0.10%        218,054        14.963083        3,262,760        2.12%        -0.14%     
2011     0.20%        302,677        14.815234        4,484,231        2.12%        -0.24%     
2011     0.25%        390,082        14.741846        5,750,529        2.12%        -0.29%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

2015     0.00%        3,036,720      $ 21.949295      $ 66,653,863        1.49%        -0.73%     
2015     0.10%        169,799        21.645583        3,675,398        1.49%        -0.83%     
2015     0.20%        273,829        21.346114        5,845,185        1.49%        -0.93%     
2015     0.25%        302,811        21.197973        6,418,979        1.49%        -0.98%     
2014     0.00%        3,281,884        22.110620        72,564,490        1.74%        4.96%     
2014     0.10%        165,079        21.826496        3,603,096        1.74%        4.85%     
2014     0.20%        261,081        21.546066        5,625,268        1.74%        4.75%     
2014     0.25%        219,251        21.407232        4,693,557        1.74%        4.69%     
2013     0.00%        3,488,536        21.066347        73,490,710        1.62%        22.38%     
2013     0.10%        159,223        20.816452        3,314,458        1.62%        22.25%     
2013     0.20%        31,774        20.569550        653,577        1.62%        22.13%     
2013     0.25%        107,418        20.447238        2,196,401        1.62%        22.07%     
2012     0.00%        3,872,046        17.214305        66,654,581        1.63%        13.76%     
2012     0.10%        197,613        17.027115        3,364,779        1.63%        13.65%     
2012     0.20%        24,724        16.841984        416,401        1.63%        13.53%     
2012     0.25%        170,507        16.750188        2,856,024        1.63%        13.48%     
2011     0.00%        4,147,741        15.132127        62,764,144        2.03%        -2.13%     
2011     0.10%        250,895        14.982582        3,759,055        2.03%        -2.22%     
2011     0.20%        34,628        14.834535        513,690        2.03%        -2.32%     
2011     0.25%        217,442        14.761085        3,209,680        2.03%        -2.37%     

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

2015     0.00%        706,590        18.983169        13,413,317        1.68%        -0.03%     
2015     0.10%        72,387        18.720559        1,355,125        1.68%        -0.13%     
2015     0.20%        10,908        18.461573        201,379        1.68%        -0.23%     
2015     0.25%        33,082        18.333454        606,507        1.68%        -0.28%     
2014     0.00%        752,574        18.988951        14,290,591        1.83%        4.74%     
2014     0.10%        72,469        18.745008        1,358,432        1.83%        4.63%     
2014     0.20%        17,823        18.504179        329,800        1.83%        4.53%     
2014     0.25%        40,576        18.384954        745,988        1.83%        4.48%     
2013     0.00%        799,670        18.129719        14,497,792        1.67%        10.49%     
2013     0.10%        56,461        17.914713        1,011,483        1.67%        10.38%     
2013     0.20%        17,974        17.702253        318,180        1.67%        10.27%     
2013     0.25%        55,765        17.596985        981,296        1.67%        10.22%     
2012     0.00%        886,098        16.407771        14,538,893        1.75%        8.04%     
2012     0.10%        51,990        16.229405        843,767        1.75%        7.93%     
2012     0.20%        13,819        16.052978        221,836        1.75%        7.82%     
2012     0.25%        89,875        15.965491        1,434,899        1.75%        7.77%     
2011     0.00%        908,615        15.186765        13,798,922        2.30%        2.06%     
2011     0.10%        67,795        15.036737        1,019,416        2.30%        1.96%     
2011     0.20%        9,866        14.888185        146,887        2.30%        1.86%     
2011     0.25%        78,319        14.814478        1,160,255        2.30%        1.81%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Mid Cap Index Fund - Class I (MCIF)

2015     0.00%        726,879      $ 47.459992      $ 34,497,672        1.19%        -2.53%     
2015     0.10%        158,895        42.771446        6,796,169        1.19%        -2.63%     
2015     0.20%        383,281        32.027174        12,275,407        1.19%        -2.73%     
2015     0.25%        1,037,969        31.786495        32,993,396        1.19%        -2.78%     
2014     0.00%        726,102        48.693949        35,356,774        1.08%        9.42%     
2014     0.10%        64,879        43.927412        2,849,967        1.08%        9.31%     
2014     0.20%        332,094        32.925676        10,934,419        1.08%        9.20%     
2014     0.25%        965,440        32.694578        31,564,653        1.08%        9.15%     
2013     0.00%        770,865        44.501701        34,304,804        1.15%        33.05%     
2013     0.10%        67,580        40.185694        2,715,749        1.15%        32.91%     
2013     0.20%        308,900        30.151218        9,313,711        1.15%        32.78%     
2013     0.25%        990,257        29.954566        29,662,719        1.15%        32.72%     
2012     0.00%        775,366        33.448036        25,934,470        1.07%        17.47%     
2012     0.10%        82,892        30.234257        2,506,178        1.07%        17.36%     
2012     0.20%        268,030        22.707360        6,086,254        1.07%        17.24%     
2012     0.25%        1,015,466        22.570532        22,919,608        1.07%        17.18%     
2011     0.00%        937,419        28.472984        26,691,116        0.78%        -2.54%     
2011     0.10%        110,919        25.763036        2,857,610        0.78%        -2.64%     
2011     0.20%        249,840        19.368666        4,839,068        0.78%        -2.74%     
2011     0.25%        1,084,345        19.261601        20,886,221        0.78%        -2.79%     

NVIT Money Market Fund - Class I (SAM)

2015     0.00%        3,283,084        14.293235        46,925,891        0.00%       
2015     0.20%        827        11.911691        9,851        0.00%        -0.20%     
2015     0.25%        22,953        11.822117        271,353        0.00%        -0.25%     
2014     0.00%        3,527,039        14.293235        50,412,797        0.00%       
2014     0.20%        872        11.935475        10,408        0.00%        -0.20%     
2014     0.25%        472,682        11.851712        5,602,091        0.00%        -0.25%     
2013     0.00%        4,055,705        14.293235        57,967,632        0.00%       
2013     0.20%        915        11.959420        10,943        0.00%        -0.20%     
2013     0.25%        550,956        11.881336        6,546,093        0.00%        -0.25%     
2012     0.00%        5,544,294        14.293235        79,245,902        0.00%       
2012     0.20%        1,247        11.983454        14,943        0.00%        -0.20%     
2012     0.25%        563,036        11.911174        6,706,420        0.00%        -0.25%     
2011     0.00%        5,903,369        14.293235        84,378,240        0.00%        0.00%     
2011     0.20%        1,299        12.007617        15,598        0.00%        -0.20%     
2011     0.25%        574,205        11.941153        6,856,670        0.00%        -0.25%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Money Market Fund - Class V (SAM5)

2015     0.00%        2,150,324      $ 11.731137      $ 25,225,745        0.00%       
2015     0.20%        5,293,610        11.425253        60,480,834        0.00%        -0.20%     
2015     0.25%        7,364,598        11.350082        83,588,791        0.00%        -0.25%     
2014     0.00%        1,920,128        11.731137        22,525,285        0.00%       
2014     0.20%        4,418,047        11.448195        50,578,664        0.00%        -0.20%     
2014     0.25%        8,212,686        11.378551        93,448,466        0.00%        -0.25%     
2013     0.00%        1,733,687        11.731137        20,338,120        0.00%       
2013     0.10%        77,084        11.600379        894,204        0.00%        -0.10%     
2013     0.20%        9,408,960        11.471170        107,931,780        0.00%        -0.20%     
2013     0.25%        7,910,243        11.407039        90,232,450        0.00%        -0.25%     
2012     0.00%        1,186,217        11.731137        13,915,674        0.00%       
2012     0.10%        657,353        11.612007        7,633,188        0.00%        -0.10%     
2012     0.20%        8,815,071        11.494165        101,321,881        0.00%        -0.20%     
2012     0.25%        7,802,771        11.435565        89,229,095        0.00%        -0.25%     
2011     0.00%        756,286        11.731137        8,872,095        0.00%        0.00%     
2011     0.10%        629,615        11.623696        7,318,453        0.00%        -0.10%     
2011     0.20%        8,407,521        11.517285        96,831,816        0.00%        -0.20%     
2011     0.25%        9,471,462        11.464248        108,583,189        0.00%        -0.25%     

NVIT Multi-Manager International Growth Fund - Class I (NVMIG1)

2015     0.00%        1,587,910        9.747456        15,478,083        0.72%        -0.49%     
2014     0.00%        1,641,194        9.795541        16,076,383        1.06%        -2.04%      4/25/2014

NVIT Multi-Manager International Value Fund - Class I (GVDIVI)

2015     0.00%        258,691        18.002792        4,657,160        1.19%        -5.12%     
2014     0.00%        281,697        18.973981        5,344,914        2.81%        -9.46%     
2013     0.00%        32,529        20.957356        681,722        2.34%        21.41%     
2012     0.00%        39,531        17.262313        682,396        0.39%        17.29%     
2011     0.00%        43,242        14.717057        636,395        1.75%        -16.24%     

NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

2015     0.00%        657,004        16.589334        10,899,259        0.47%        3.43%     
2015     0.10%        6,342        16.462691        104,406        0.47%        3.33%     
2015     0.20%        3,244        16.336886        52,997        0.47%        3.23%     
2015     0.25%        32,786        16.274411        533,573        0.47%        3.18%     
2014     0.00%        706,844        16.038508        11,336,723        0.49%        10.44%     
2014     0.20%        2,859        15.826062        45,247        0.49%        10.22%     
2014     0.25%        34,585        15.773428        545,524        0.49%        10.16%     
2013     0.00%        772,029        14.522943        11,212,119        0.75%        34.74%     
2013     0.20%        1,774        14.359257        25,473        0.75%        34.47%     
2013     0.25%        43,920        14.318656        628,875        0.75%        34.40%     
2012     0.00%        864,055        10.778503        9,313,219        0.46%        16.35%     
2012     0.10%        45,035        10.728340        483,151        0.46%        16.24%     
2012     0.20%        5,198        10.678331        55,506        0.46%        16.12%     
2012     0.25%        68,955        10.653460        734,609        0.46%        16.06%     
2011     0.00%        993,419        9.263525        9,202,562        0.01%        -2.91%     
2011     0.10%        47,450        9.229646        437,947        0.01%        -3.00%     
2011     0.20%        35,052        9.195838        322,333        0.01%        -3.10%     
2011     0.25%        139,543        9.179010        1,280,867        0.01%        -3.15%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

2015     0.00%        399,043      $ 14.746982      $ 5,884,680        2.27%        -3.15%     
2015     0.10%        587,256        16.817022        9,875,897        2.27%        -3.25%     
2015     0.20%        2,483        16.721922        41,521        2.27%        -3.34%     
2015     0.25%        38,379        16.674561        639,953        2.27%        -3.39%     
2014     0.00%        472,606        15.226743        7,196,250        1.26%        10.52%     
2014     0.20%        1,652        17.300502        28,580        1.26%        10.30%     
2014     0.25%        35,213        17.260130        607,781        1.26%        10.24%     
2013     0.00%        503,503        13.777622        6,937,074        1.34%        35.44%     
2013     0.20%        876        15.685351        13,740        1.34%        35.17%     
2013     0.25%        33,020        15.656577        516,980        1.34%        35.10%     
2012     0.00%        578,776        10.172659        5,887,691        1.34%        17.81%     
2012     0.10%        27,689        11.635430        322,173        1.34%        17.69%     
2012     0.20%        3,822        11.604387        44,352        1.34%        17.57%     
2012     0.25%        39,721        11.588884        460,322        1.34%        17.52%     
2011     0.00%        652,862        8.634796        5,637,330        1.10%        -5.83%     
2011     0.10%        29,021        9.886324        286,911        1.10%        -5.92%     
2011     0.20%        4,675        9.869840        46,142        1.10%        -6.02%     
2011     0.25%        48,213        9.861595        475,457        1.10%        -6.06%     

NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

2015     0.00%        2,036,101        16.073975        32,728,237        0.00%        -0.18%     
2015     0.10%        661,234        15.951253        10,547,511        0.00%        -0.28%     
2015     0.20%        8,324        15.829354        131,764        0.00%        -0.38%     
2015     0.25%        33,290        15.768799        524,943        0.00%        -0.43%     
2014     0.00%        2,121,248        16.103721        34,159,986        0.00%        4.04%     
2014     0.20%        664        15.890408        10,551        0.00%        3.83%     
2014     0.25%        34,568        15.837535        547,472        0.00%        3.78%     
2013     0.00%        2,366,861        15.479098        36,636,780        0.00%        38.94%     
2013     0.20%        127        15.304647        1,944        0.00%        38.67%     
2013     0.25%        305        15.261350        4,655        0.00%        38.60%     
2012     0.00%        2,541,741        11.140525        28,316,329        0.00%        14.90%     
2012     0.10%        6,819        11.088680        75,614        0.00%        14.79%     
2012     0.20%        3,499        11.037007        38,618        0.00%        14.67%     
2012     0.25%        1,906        11.011282        20,988        0.00%        14.62%     
2011     0.00%        3,047,277        9.695515        29,544,910        0.00%        -4.23%     
2011     0.10%        7,012        9.660066        67,736        0.00%        -4.32%     
2011     0.20%        623        9.624698        5,996        0.00%        -4.42%     
2011     0.25%        5,101        9.607082        49,006        0.00%        -4.47%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Multi-Manager Mid Cap Value Fund - Class I (NVMMV1)

2015     0.00%        19,958      $ 18.734492      $ 373,903        1.44%        -2.75%     
2015     0.20%        4,838        18.449328        89,258        1.44%        -2.95%     
2015     0.25%        32,643        18.378798        599,939        1.44%        -2.99%     
2014     0.00%        12,260        19.264433        236,182        3.76%        17.15%     
2014     0.20%        4,577        19.009205        87,005        3.76%        16.92%     
2014     0.25%        31,287        18.945996        592,763        3.76%        16.86%     
2013     0.20%        5,093        16.258572        82,805        1.92%        35.58%     
2013     0.25%        3,285        16.212600        53,258        1.92%        35.51%     
2012     0.00%        678        12.104426        8,207        1.34%        16.65%     
2012     0.20%        350        11.991912        4,197        1.34%        16.42%     
2012     0.25%        4,531        11.963973        54,209        1.34%        16.36%     
2011     0.00%        1,079        10.376788        11,197        1.08%        -2.09%     
2011     0.25%        5,310        10.282114        54,598        1.08%        -2.33%     

NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)

2015     0.00%        682,469        18.482716        12,613,881        1.13%        -2.89%     
2014     0.00%        798,637        19.031857        15,199,545        1.43%        17.02%     
2013     0.00%        801,822        16.263836        13,040,702        1.19%        35.68%     
2012     0.00%        861,247        11.987208        10,323,947        1.13%        16.35%     
2011     0.00%        946,834        10.303092        9,755,318        0.79%        -2.32%     

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)

2015     0.00%        384,931        27.506895        10,588,257        0.00%        0.76%     
2015     0.10%        156,756        27.052376        4,240,622        0.00%        0.66%     
2015     0.20%        40,641        26.605137        1,081,259        0.00%        0.55%     
2015     0.25%        42,646        26.384387        1,125,189        0.00%        0.50%     
2014     0.00%        438,208        27.300408        11,963,257        0.00%        2.81%     
2014     0.10%        30,685        26.876162        824,695        0.00%        2.71%     
2014     0.20%        38,688        26.458295        1,023,619        0.00%        2.61%     
2014     0.25%        44,652        26.251887        1,172,199        0.00%        2.55%     
2013     0.00%        463,075        26.553796        12,296,399        0.00%        44.29%     
2013     0.10%        34,874        26.167303        912,559        0.00%        44.14%     
2013     0.20%        40,523        25.786245        1,044,936        0.00%        44.00%     
2013     0.25%        39,942        25.597875        1,022,430        0.00%        43.93%     
2012     0.00%        496,782        18.403264        9,142,410        0.00%        13.44%     
2012     0.10%        49,739        18.153519        902,938        0.00%        13.32%     
2012     0.20%        55,773        17.907035        998,729        0.00%        13.21%     
2012     0.25%        77,450        17.785105        1,377,456        0.00%        13.15%     
2011     0.00%        563,925        16.223239        9,148,690        0.00%        -0.65%     
2011     0.10%        61,780        16.019131        989,662        0.00%        -0.75%     
2011     0.20%        47,600        15.817461        752,911        0.00%        -0.85%     
2011     0.25%        85,864        15.717643        1,349,580        0.00%        -0.90%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)

2015     0.00%        593,103      $ 46.675400      $ 27,683,320        0.75%        -6.02%     
2015     0.10%        95,241        49.722591        4,735,629        0.75%        -6.12%     
2015     0.20%        84,935        35.340147        3,001,615        0.75%        -6.21%     
2015     0.25%        88,852        35.074626        3,116,451        0.75%        -6.26%     
2014     0.00%        642,484        49.666354        31,909,838        0.52%        7.02%     
2014     0.10%        19,561        52.961764        1,035,985        0.52%        6.92%     
2014     0.20%        87,344        37.680056        3,291,127        0.52%        6.81%     
2014     0.25%        90,236        37.415660        3,376,239        0.52%        6.75%     
2013     0.00%        702,734        46.407602        32,612,200        0.83%        40.40%     
2013     0.10%        24,770        49.536300        1,227,014        0.83%        40.26%     
2013     0.20%        86,171        35.278242        3,039,961        0.83%        40.12%     
2013     0.25%        168,547        35.048209        5,907,270        0.83%        40.05%     
2012     0.00%        772,200        33.054014        25,524,310        0.83%        20.44%     
2012     0.10%        36,881        35.317708        1,302,552        0.83%        20.32%     
2012     0.20%        73,102        25.177325        1,840,513        0.83%        20.20%     
2012     0.25%        165,813        25.025649        4,149,578        0.83%        20.14%     
2011     0.00%        880,940        27.443292        24,175,894        0.43%        -5.07%     
2011     0.10%        56,153        29.352122        1,648,210        0.43%        -5.16%     
2011     0.20%        90,826        20.945547        1,902,400        0.43%        -5.26%     
2011     0.25%        192,080        20.829802        4,000,988        0.43%        -5.31%     

NVIT Multi-Manager Small Company Fund - Class I (SCF)

2015     0.00%        637,312        41.917374        26,714,445        0.37%        -1.63%     
2015     0.20%        82,343        28.016589        2,306,970        0.37%        -1.83%     
2015     0.25%        436,478        27.806025        12,136,718        0.37%        -1.88%     
2014     0.00%        685,999        42.614090        29,233,223        0.16%        0.82%     
2014     0.10%        21,017        42.757292        898,630        0.16%        0.71%     
2014     0.20%        97,531        28.539291        2,783,466        0.16%        0.61%     
2014     0.25%        457,689        28.338965        12,970,433        0.16%        0.56%     
2013     0.00%        771,546        42.269428        32,612,808        0.13%        40.91%     
2013     0.10%        24,324        42.453920        1,032,649        0.13%        40.76%     
2013     0.20%        98,202        28.365149        2,785,514        0.13%        40.62%     
2013     0.25%        655,038        28.180139        18,459,062        0.13%        40.55%     
2012     0.00%        861,431        29.998380        25,841,534        0.15%        15.50%     
2012     0.10%        39,733        30.159433        1,198,325        0.15%        15.39%     
2012     0.20%        139,263        20.170847        2,809,053        0.15%        15.27%     
2012     0.25%        739,156        20.049299        14,819,560        0.15%        15.21%     
2011     0.00%        990,245        25.972077        25,718,719        0.53%        -5.56%     
2011     0.10%        62,029        26.137692        1,621,295        0.53%        -5.65%     
2011     0.20%        163,780        17.498608        2,865,922        0.53%        -5.75%     
2011     0.25%        838,331        17.401887        14,588,541        0.53%        -5.79%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Multi-Sector Bond Fund - Class I (MSBF)

2015     0.00%        389,584      $ 22.130469      $ 8,621,677        2.08%        -2.89%     
2015     0.20%        53,829        20.170564        1,085,761        2.08%        -3.08%     
2015     0.25%        51,202        20.019049        1,025,015        2.08%        -3.13%     
2014     0.00%        421,651        22.789085        9,609,040        3.14%        3.88%     
2014     0.10%        19,482        21.909355        426,838        3.14%        3.78%     
2014     0.20%        21,736        20.812445        452,379        3.14%        3.68%     
2014     0.25%        51,475        20.666439        1,063,805        3.14%        3.62%     
2013     0.00%        459,866        21.937138        10,088,144        3.31%        -1.12%     
2013     0.10%        23,955        21.111396        505,723        3.31%        -1.22%     
2013     0.20%        19,485        20.074490        391,151        3.31%        -1.32%     
2013     0.25%        35,590        19.943635        709,794        3.31%        -1.37%     
2012     0.00%        502,846        22.186564        11,156,425        2.47%        12.25%     
2012     0.10%        43,545        21.372809        930,679        2.47%        12.14%     
2012     0.20%        22,681        20.343390        461,408        2.47%        12.02%     
2012     0.25%        50,355        20.220894        1,018,223        2.47%        11.97%     
2011     0.00%        570,373        19.765394        11,273,647        4.21%        5.55%     
2011     0.10%        102,896        19.059523        1,961,149        4.21%        5.44%     
2011     0.20%        19,541        18.159702        354,859        4.21%        5.34%     
2011     0.25%        36,977        18.059416        667,783        4.21%        5.28%     

NVIT Short Term Bond Fund - Class I (NVSTB1)

2015     0.00%        5,000        11.705092        58,525        1.59%        -0.08%     
2015     0.20%        323,837        11.526955        3,732,855        1.59%        -0.28%     
2015     0.25%        973,573        11.482904        11,179,445        1.59%        -0.33%     
2014     0.10%        815,788        11.637049        9,493,365        0.90%        0.67%     
2014     0.20%        33,789        11.559700        390,591        0.90%        0.57%     
2014     0.25%        1,340,967        11.521251        15,449,617        0.90%        0.52%     
2013     0.00%        948        11.625509        11,021        1.51%        0.33%     
2013     0.10%        1,755,104        11.559851        20,288,741        1.51%        0.23%     
2013     0.20%        17,901        11.494507        205,763        1.51%        0.13%     
2013     0.25%        1,320,778        11.461984        15,138,736        1.51%        0.08%     
2012     0.00%        850        11.587099        9,849        2.62%        3.83%     
2012     0.10%        2,046,482        11.533202        23,602,490        2.62%        3.72%     
2012     0.20%        15,166        11.479462        174,098        2.62%        3.62%     
2012     0.25%        462,893        11.452722        5,301,385        2.62%        3.57%     
2011     0.00%        746        11.160218        8,326        1.81%        1.45%     
2011     0.20%        9,972        11.078737        110,477        1.81%        1.24%     
2011     0.25%        479,653        11.058467        5,304,227        1.81%        1.19%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Short Term Bond Fund - Class II (NVSTB2)

2015     0.00%        136,028      $ 11.468229      $ 1,560,000        1.72%        -0.34%     
2014     0.00%        164,622        11.507465        1,894,382        0.97%        0.49%     
2013     0.00%        163,595        11.450912        1,873,312        0.98%        0.11%     
2012     0.00%        201,309        11.438838        2,302,741        1.30%        3.52%     
2011     0.00%        218,639        11.049485        2,415,848        1.50%        1.30%     

NVIT Large Cap Growth Fund - Class I (NVOLG1)

2015     0.00%        4,934,844        25.770856        127,175,154        0.63%        5.09%     
2014     0.00%        5,400,878        24.521987        132,440,260        0.71%        8.80%     
2013     0.00%        5,982,076        22.538634        134,827,822        0.79%        36.70%     
2012     0.00%        6,636,497        16.487341        109,418,189        0.70%        18.68%     
2011     0.00%        7,462,793        13.891692        103,670,822        0.67%        -2.23%     

Templeton NVIT International Value Fund - Class III (NVTIV3)

2015     0.00%        45,612        15.385758        701,775        2.37%        -3.90%     
2014     0.00%        28,263        16.010507        452,505        3.75%        -8.15%     
2013     0.00%        29,863        17.430436        520,525        1.87%        20.09%     
2012     0.00%        35,997        14.513999        522,460        2.54%        19.56%     
2011     0.00%        35,418        12.139096        429,943        3.30%        -12.43%     

Invesco NVIT Comstock Value Fund - Class I (EIF)

2015     0.00%        429,724        22.025570        9,464,916        1.56%        -6.30%     
2015     0.10%        58,872        18.295493        1,077,092        1.56%        -6.39%     
2015     0.25%        3,185        17.809210        56,722        1.56%        -6.53%     
2014     0.00%        475,177        23.506089        11,169,553        1.76%        9.17%     
2014     0.10%        59,580        19.544819        1,164,480        1.76%        9.06%     
2014     0.25%        2,197        19.053909        41,861        1.76%        8.90%     
2013     0.00%        506,620        21.531960        10,908,522        0.00%        35.64%     
2013     0.10%        48,119        17.921285        862,354        0.00%        35.50%     
2013     0.25%        196        17.497385        3,429        0.00%        35.30%     
2012     0.00%        495,063        15.874436        7,858,846        1.18%        18.46%     
2012     0.10%        39,021        13.225670        516,079        1.18%        18.35%     
2012     0.25%        143        12.932205        1,849        1.18%        18.17%     
2011     0.00%        610,041        13.400181        8,174,660        1.31%        -2.32%     
2011     0.10%        61,552        11.175452        687,871        1.31%        -2.42%     
2011     0.25%        156        10.943926        1,707        1.31%        -2.57%     

NVIT Real Estate Fund - Class I (NVRE1)

2015     0.00%        1,704,351        14.907394        25,407,432        2.62%        -5.36%     
2015     0.10%        608        29.712788        18,065        2.62%        -5.45%     
2015     0.20%        34,247        29.515504        1,010,817        2.62%        -5.55%     
2015     0.25%        194,899        29.417350        5,733,412        2.62%        -5.59%     
2014     0.00%        1,966,709        15.751218        30,978,062        3.00%        28.88%     
2014     0.20%        57,979        31.248643        1,811,765        3.00%        28.63%     
2014     0.25%        207,316        31.160306        6,460,030        3.00%        28.56%     
2013     0.00%        2,029,128        12.221280        24,798,541        1.49%        3.05%     
2013     0.20%        29,025        24.294127        705,137        1.49%        2.84%     
2013     0.25%        216,320        24.237549        5,243,067        1.49%        2.79%     
2012     0.00%        2,229,784        11.860098        26,445,457        1.03%        15.79%     
2012     0.20%        23,596        23.623351        557,417        1.03%        15.55%     
2012     0.25%        202,477        23.580128        4,774,434        1.03%        15.50%     
2011     0.00%        2,496,219        10.243095        25,569,008        0.89%        6.50%     
2011     0.20%        10,686        20.443475        218,459        0.89%        6.29%     
2011     0.25%        208,462        20.416293        4,256,021        0.89%        6.23%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Loring Ward NVIT Capital Appreciation Fund - Class P (NVLCAP)

2015     0.00%        2,467      $ 11.467939      $ 28,291        2.43%        -3.00%     
2014     0.00%        2,183        11.822850        25,809        2.05%        3.34%     
2013     0.00%        140        11.440971        1,602        5.98%        14.41%      5/1/2013

Loring Ward NVIT Moderate Fund - Class P (NVLMP)

2015     0.00%        530        11.290958        5,984        5.79%        -1.70%     
2014     0.00%        191        11.485747        2,194        1.50%        2.09%     

NVIT Small Cap Index Fund Class II (NVSIX2)

2015     0.00%        23,027        12.609932        290,369        1.27%        -4.88%     
2014     0.00%        18,330        13.257084        243,002        1.19%        4.55%     
2013     0.00%        5,103        12.679935        64,706        1.58%        26.80%      5/1/2013

NVIT S&P 500 Index Fund Class I (GVEX1)

2015     0.00%        239,681        13.573434        3,253,294        2.43%        1.16%     
2014     0.00%        121,451        13.417375        1,629,554        3.36%        13.36%     
2013     0.00%        42,973        11.835951        508,626        2.83%        18.36%      5/1/2013

TOPS Managed Risk Balanced ETF Portfolio - Class 3 (NOTB3)

2015     0.00%        3,395        10.152985        34,469        1.29%        -4.54%     

TOPS Managed Risk Moderate Growth ETF Portfolio - Class 3 (NOTMG3)

2015     0.00%        1,135        10.243457        11,626        0.05%        -6.46%     
2014     0.00%        10        10.951171        110        0.10%        2.75%     
2013     0.00%        320        10.658086        3,411        0.83%        6.58%      5/1/2013

VPS Growth and Income Portfolio - Class A (ALVGIA)

2015     0.00%        141,499        29.185176        4,129,673        1.45%        1.70%     
2015     0.20%        115,267        28.417699        3,275,623        1.45%        1.50%     
2015     0.25%        537,418        28.229014        15,170,780        1.45%        1.45%     
2014     0.00%        157,691        28.696834        4,525,232        1.55%        9.54%     
2014     0.10%        85,342        28.345326        2,419,047        1.55%        9.43%     
2014     0.20%        26,350        27.998136        737,751        1.55%        9.32%     
2014     0.25%        561,703        27.826142        15,630,027        1.55%        9.27%     
2013     0.00%        162,202        26.197145        4,249,229        1.26%        34.96%     
2013     0.10%        73,538        25.902147        1,904,792        1.26%        34.83%     
2013     0.20%        21,338        25.610480        546,476        1.26%        34.69%     
2013     0.25%        318,807        25.465870        8,118,698        1.26%        34.63%     
2012     0.00%        162,645        19.410515        3,157,023        1.56%        17.52%     
2012     0.10%        72,424        19.211121        1,391,346        1.56%        17.41%     
2012     0.20%        5,771        19.013781        109,729        1.56%        17.29%     
2012     0.25%        225,551        18.915871        4,266,494        1.56%        17.23%     
2011     0.00%        170,800        16.516082        2,820,947        1.24%        6.32%     
2011     0.10%        76,305        16.362810        1,248,564        1.24%        6.21%     
2011     0.20%        3,854        16.210964        62,477        1.24%        6.10%     
2011     0.25%        199,320        16.135567        3,216,141        1.24%        6.05%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VPS International Value Portfolio - Class A (ALVIVA)

2015     0.00%        273,489      $ 8.665061      $ 2,369,799        2.59%        2.59%     
2015     0.20%        94,107        8.499025        799,818        2.59%        2.39%     
2015     0.25%        613,624        8.457980        5,190,020        2.59%        2.33%     
2014     0.00%        286,615        8.446277        2,420,830        3.43%        -6.21%     
2014     0.20%        180,956        8.301038        1,502,123        3.43%        -6.40%     
2014     0.25%        552,604        8.265079        4,567,316        3.43%        -6.45%     
2013     0.00%        517,203        9.005605        4,657,726        6.94%        23.00%     
2013     0.20%        183,877        8.868473        1,630,708        6.94%        22.76%     
2013     0.25%        605,126        8.834487        5,345,978        6.94%        22.70%     
2012     0.00%        304,664        7.321422        2,230,574        1.40%        14.53%     
2012     0.20%        168,677        7.224352        1,218,582        1.40%        14.30%     
2012     0.25%        662,753        7.200265        4,771,997        1.40%        14.25%     
2011     0.00%        267,669        6.392469        1,711,066        3.98%        -19.25%     
2011     0.20%        344,180        6.320359        2,175,341        3.98%        -19.41%     
2011     0.25%        1,118,669        6.302451        7,050,357        3.98%        -19.45%     

VPS Small/Mid Cap Value Portfolio - Class A (ALVSVA)

2015     0.00%        303,579        37.073964        11,254,877        0.79%        -5.49%     
2015     0.20%        70,661        36.146429        2,554,143        0.79%        -5.67%     
2015     0.25%        122,700        35.918264        4,407,171        0.79%        -5.72%     
2014     0.00%        327,750        39.225701        12,856,224        0.72%        9.20%     
2014     0.20%        75,593        38.320927        2,896,794        0.72%        8.98%     
2014     0.25%        111,832        38.098085        4,260,585        0.72%        8.93%     
2013     0.00%        261,670        35.921574        9,399,598        0.63%        38.06%     
2013     0.20%        60,120        35.163273        2,114,016        0.63%        37.78%     
2013     0.25%        91,538        34.976283        3,201,659        0.63%        37.71%     
2012     0.00%        246,289        26.019263        6,408,258        0.56%        18.75%     
2012     0.20%        69,059        25.520947        1,762,451        0.56%        18.51%     
2012     0.25%        78,182        25.397917        1,985,660        0.56%        18.45%     
2011     0.00%        255,634        21.911401        5,601,299        0.47%        -8.39%     
2011     0.20%        105,642        21.534889        2,274,989        0.47%        -8.57%     
2011     0.25%        120,161        21.441818        2,576,470        0.47%        -8.62%     

VP Capital Appreciation Fund - Class I (ACVCA)

2015     0.00%        5,741        11.300123        64,874        0.00%        1.93%     
2015     0.25%        45,670        11.252645        513,908        0.00%        1.68%     
2014     0.00%        12,862        11.086033        142,589        0.00%        10.86%      4/25/2014
2014     0.10%        36,389        11.078445        403,134        0.00%        10.78%      4/25/2014
2014     0.20%        57,894        11.070868        640,937        0.00%        10.71%      4/25/2014
2014     0.25%        37,927        11.067076        419,741        0.00%        10.67%      4/25/2014

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VP Income & Growth Fund - Class I (ACVIG)

2015     0.00%        572,863      $ 26.625029      $ 15,252,494        2.08%        -5.62%     
2015     0.20%        48,719        19.550719        952,491        2.08%        -5.81%     
2015     0.25%        102,747        19.403773        1,993,679        2.08%        -5.86%     
2014     0.00%        620,823        28.210605        17,513,792        2.04%        12.50%     
2014     0.10%        73,599        21.379946        1,573,543        2.04%        12.39%     
2014     0.20%        95,825        20.756489        1,988,991        2.04%        12.28%     
2014     0.25%        109,387        20.610781        2,254,552        2.04%        12.22%     
2013     0.00%        666,647        25.075388        16,716,432        2.22%        35.82%     
2013     0.10%        58,965        19.022865        1,121,683        2.22%        35.68%     
2013     0.20%        76,367        18.486622        1,411,768        2.22%        35.55%     
2013     0.25%        98,961        18.366027        1,817,520        2.22%        35.48%     
2012     0.00%        710,262        18.462191        13,112,993        2.10%        14.74%     
2012     0.10%        74,411        14.019920        1,043,236        2.10%        14.63%     
2012     0.20%        98,053        13.638317        1,337,278        2.10%        14.51%     
2012     0.25%        101,923        13.556114        1,381,680        2.10%        14.46%     
2011     0.00%        786,408        16.089880        12,653,210        1.56%        3.11%     
2011     0.10%        93,936        12.230669        1,148,900        1.56%        3.01%     
2011     0.20%        118,559        11.909699        1,412,002        1.56%        2.91%     
2011     0.25%        99,798        11.843849        1,181,992        1.56%        2.86%     

VP Inflation Protection Fund - Class II (ACVIP2)

2015     0.00%        611,924        15.568846        9,526,951        2.05%        -2.47%     
2014     0.00%        783,544        15.962763        12,507,527        1.30%        3.30%     
2013     0.00%        880,216        15.452863        13,601,857        1.80%        -8.48%     
2012     0.00%        2,163,527        16.884507        36,530,087        2.45%        7.39%     
2011     0.00%        2,138,750        15.723236        33,628,071        4.02%        11.74%     

VP International Fund - Class I (ACVI)

2015     0.00%        478        22.702277        10,852        0.36%        0.76%     
2015     0.20%        44,742        14.292785        639,488        0.36%        0.56%     
2015     0.25%        58,228        14.185480        825,992        0.36%        0.51%     
2014     0.00%        478        22.531408        10,770        1.93%        -5.51%     
2014     0.10%        42,373        18.221565        772,102        1.93%        -5.60%     
2014     0.20%        20,376        14.213622        289,617        1.93%        -5.70%     
2014     0.25%        55,781        14.113952        787,290        1.93%        -5.74%     
2013     0.00%        478        23.844377        11,398        1.66%        22.41%     
2013     0.10%        47,393        19.302687        914,812        1.66%        22.29%     
2013     0.20%        80,839        15.072019        1,218,407        1.66%        22.17%     
2013     0.25%        114,132        14.973813        1,708,991        1.66%        22.10%     
2012     0.00%        478        19.479115        9,311        0.95%        21.16%     
2012     0.10%        62,568        15.784654        987,614        0.95%        21.04%     
2012     0.20%        81,406        12.337365        1,004,336        0.95%        20.92%     
2012     0.25%        124,136        12.263107        1,522,293        0.95%        20.86%     
2011     0.00%        478        16.077026        7,685        2.03%        -12.04%     
2011     0.10%        86,616        13.040872        1,129,548        2.03%        -12.13%     
2011     0.20%        82,449        10.203033        841,230        2.03%        -12.22%     
2011     0.25%        210,964        10.146695        2,140,587        2.03%        -12.26%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VP Mid Cap Value Fund - Class I (ACVMV1)

2015     0.00%        386,254      $ 26.907721      $ 10,393,215        1.64%        -1.43%     
2015     0.20%        5,858        26.339923        154,299        1.64%        -1.63%     
2015     0.25%        108,489        26.199756        2,842,385        1.64%        -1.68%     
2014     0.00%        374,202        27.298795        10,215,264        1.17%        16.42%     
2014     0.20%        21,248        26.776248        568,942        1.17%        16.19%     
2014     0.25%        97,396        26.647083        2,595,319        1.17%        16.13%     
2013     0.00%        340,654        23.448028        7,987,665        1.23%        30.11%     
2013     0.20%        49,119        23.045206        1,131,957        1.23%        29.85%     
2013     0.25%        92,345        22.945511        2,118,903        1.23%        29.79%     
2012     0.00%        268,264        18.021035        4,834,395        2.06%        16.33%     
2012     0.20%        40,982        17.746877        727,303        2.06%        16.09%     
2012     0.25%        88,101        17.678937        1,557,532        2.06%        16.04%     
2011     0.00%        243,163        15.491583        3,766,980        1.38%        -0.69%     
2011     0.20%        4,491        15.286517        68,652        1.38%        -0.89%     
2011     0.25%        90,003        15.235631        1,371,252        1.38%        -0.94%     

VP Ultra(R) Fund - Class I (ACVU1)

2015     0.25%        34,702        21.642988        751,055        0.43%        6.01%     
2014     0.10%        48,289        20.808430        1,004,818        0.36%        9.88%     
2014     0.25%        29,093        20.416753        593,985        0.36%        9.72%     
2013     0.10%        49,193        18.936563        931,546        0.52%        36.94%     
2013     0.25%        25,479        18.608010        474,113        0.52%        36.73%     
2012     0.10%        58,200        13.828695        804,830        0.00%        13.81%     
2012     0.20%        1,879        13.681924        25,708        0.00%        13.70%     
2012     0.25%        27,639        13.609145        376,143        0.00%        13.64%     
2011     0.10%        96,658        12.150697        1,174,462        0.00%        0.97%     
2011     0.20%        1,235        12.033779        14,862        0.00%        0.86%     
2011     0.25%        21,670        11.975768        259,515        0.00%        0.81%     

VP Value Fund - Class I (ACVV)

2015     0.00%        75,445        34.801643        2,625,610        2.11%        -3.88%     
2015     0.20%        124,061        29.072893        3,606,812        2.11%        -4.08%     
2015     0.25%        523,659        28.854416        15,109,875        2.11%        -4.12%     
2014     0.00%        98,380        36.207932        3,562,136        1.56%        13.08%     
2014     0.10%        106,841        35.306045        3,772,133        1.56%        12.97%     
2014     0.20%        83,440        30.308269        2,528,922        1.56%        12.85%     
2014     0.25%        524,830        30.095564        15,795,055        1.56%        12.80%     
2013     0.00%        88,716        32.019810        2,840,669        1.65%        31.73%     
2013     0.10%        93,423        31.253476        2,919,793        1.65%        31.59%     
2013     0.20%        52,498        26.856208        1,409,897        1.65%        31.46%     
2013     0.25%        488,846        26.681063        13,042,931        1.65%        31.40%     
2012     0.00%        76,100        24.307940        1,849,834        1.93%        14.58%     
2012     0.10%        104,420        23.749898        2,479,964        1.93%        14.46%     
2012     0.20%        39,924        20.428748        815,597        1.93%        14.35%     
2012     0.25%        420,143        20.305662        8,531,282        1.93%        14.29%     
2011     0.00%        58,917        21.215636        1,249,962        1.94%        1.01%     
2011     0.10%        134,565        20.749366        2,792,138        1.94%        0.91%     
2011     0.20%        152,212        17.865705        2,719,375        1.94%        0.81%     
2011     0.25%        446,252        17.766964        7,928,543        1.94%        0.76%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

MidCap Stock Portfolio - Initial Shares (DVMCS)

2015     0.00%        237      $ 32.750654      $ 7,762        0.62%        -2.29%     
2015     0.20%        8,641        31.889342        275,556        0.62%        -2.48%     
2015     0.25%        70,570        31.677606        2,235,489        0.62%        -2.53%     
2014     0.00%        469        33.517249        15,720        0.81%        12.09%     
2014     0.10%        39,782        33.106688        1,317,050        0.81%        11.98%     
2014     0.20%        10,198        32.701125        333,486        0.81%        11.87%     
2014     0.25%        54,442        32.500253        1,769,379        0.81%        11.81%     
2013     0.10%        35,855        29.565253        1,060,062        1.18%        34.86%     
2013     0.25%        20,083        29.067260        583,758        1.18%        34.66%     
2012     0.10%        38,571        21.923330        845,605        0.48%        19.55%     
2012     0.25%        17,878        21.586376        385,921        0.48%        19.38%     
2011     0.10%        43,424        18.337473        796,286        0.73%        0.29%     
2011     0.25%        18,036        18.082797        326,141        0.73%        0.14%     

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

2015     0.00%        572,911        28.711482        16,449,124        0.73%        -2.33%     
2015     0.20%        990,223        27.937255        27,664,112        0.73%        -2.52%     
2015     0.25%        1,450,575        27.746996        40,249,099        0.73%        -2.57%     
2014     0.00%        624,778        29.396200        18,366,099        0.55%        5.12%     
2014     0.10%        97,766        29.026163        2,837,772        0.55%        5.02%     
2014     0.20%        934,202        28.660785        26,774,963        0.55%        4.91%     
2014     0.25%        1,614,486        28.479841        45,980,305        0.55%        4.86%     
2013     0.00%        651,809        27.964008        18,227,192        0.95%        40.71%     
2013     0.10%        89,213        27.639636        2,465,815        0.95%        40.57%     
2013     0.20%        878,154        27.319009        23,990,297        0.95%        40.43%     
2013     0.25%        1,345,720        27.160116        36,549,911        0.95%        40.36%     
2012     0.00%        615,579        19.873008        12,233,406        0.44%        15.74%     
2012     0.10%        101,734        19.662128        2,000,307        0.44%        15.63%     
2012     0.20%        628,591        19.453459        12,228,269        0.44%        15.51%     
2012     0.25%        1,097,714        19.349975        21,240,738        0.44%        15.45%     
2011     0.00%        616,559        17.170194        10,586,438        0.58%        0.56%     
2011     0.10%        129,294        17.005028        2,198,648        0.58%        0.46%     
2011     0.20%        491,347        16.841422        8,274,982        0.58%        0.36%     
2011     0.25%        1,140,414        16.760220        19,113,590        0.58%        0.31%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Appreciation Portfolio - Initial Shares (DCAP)

2015     0.00%        601,353      $ 27.629204      $ 16,614,905        1.68%        -2.47%     
2015     0.20%        58,944        18.591674        1,095,868        1.68%        -2.66%     
2015     0.25%        139,841        18.451982        2,580,344        1.68%        -2.71%     
2014     0.00%        670,354        28.328449        18,990,089        1.81%        8.09%     
2014     0.10%        67,043        20.625601        1,382,802        1.81%        7.98%     
2014     0.20%        56,673        19.100354        1,082,474        1.81%        7.88%     
2014     0.25%        341,797        18.966325        6,482,633        1.81%        7.82%     
2013     0.00%        739,540        26.207830        19,381,739        1.96%        21.10%     
2013     0.10%        72,101        19.100698        1,377,179        1.96%        20.98%     
2013     0.20%        68,038        17.705908        1,204,675        1.96%        20.86%     
2013     0.25%        780,497        17.590458        13,729,300        1.96%        20.80%     
2012     0.00%        906,682        21.640941        19,621,452        3.70%        10.43%     
2012     0.10%        116,955        15.788040        1,846,490        3.70%        10.32%     
2012     0.20%        168,235        14.649790        2,464,607        3.70%        10.21%     
2012     0.25%        768,680        14.561536        11,193,161        3.70%        10.15%     
2011     0.00%        858,429        19.596966        16,822,604        1.65%        9.01%     
2011     0.10%        119,200        14.311206        1,705,896        1.65%        8.90%     
2011     0.20%        125,298        13.292747        1,665,555        1.65%        8.79%     
2011     0.25%        655,712        13.219278        8,668,039        1.65%        8.74%     

Opportunistic Small Cap Portfolio: Initial Shares (DSC)

2015     0.00%        42,927        22.165178        951,485        0.00%        -2.28%     
2014     0.00%        47,065        22.681585        1,067,509        0.00%        1.59%     
2013     0.00%        61,048        22.325546        1,362,930        0.00%        48.55%     
2012     0.00%        61,690        15.029274        927,156        0.00%        20.56%     
2011     0.00%        57,519        12.465849        717,023        0.43%        -13.85%     

International Value Portfolio - Initial Shares (DVIV)

2015     0.00%        1,866        18.860460        35,194        2.30%        -2.72%     
2015     0.20%        72,577        18.364388        1,332,832        2.30%        -2.91%     
2015     0.25%        141,742        18.242377        2,585,711        2.30%        -2.96%     
2014     0.00%        24,181        19.387863        468,818        2.00%        -9.32%     
2014     0.10%        39,503        19.150323        756,495        2.00%        -9.41%     
2014     0.20%        78,171        18.915741        1,478,662        2.00%        -9.50%     
2014     0.25%        149,348        18.799462        2,807,662        2.00%        -9.55%     
2013     0.00%        21,448        21.380338        458,565        2.00%        22.99%     
2013     0.10%        35,583        21.139524        752,208        2.00%        22.87%     
2013     0.20%        106,577        20.901474        2,227,616        2.00%        22.75%     
2013     0.25%        382,627        20.783391        7,952,287        2.00%        22.69%     
2012     0.00%        20,685        17.383341        359,574        3.81%        12.67%     
2012     0.10%        38,821        17.204731        667,905        3.81%        12.55%     
2012     0.20%        101,836        17.028001        1,734,064        3.81%        12.44%     
2012     0.25%        389,888        16.940266        6,604,806        3.81%        12.38%     
2011     0.00%        13,744        15.429086        212,057        2.15%        -18.48%     
2011     0.10%        50,393        15.285871        770,301        2.15%        -18.56%     
2011     0.20%        403,332        15.144010        6,108,064        2.15%        -18.64%     
2011     0.25%        484,217        15.073543        7,298,866        2.15%        -18.68%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Variable Series II - DWS Small Mid Cap Value VIP - Class B (SVSSVB)

2015     0.00%        1,860      $ 14.708117      $ 27,357        0.00%        -2.21%     
2015     0.20%        3,478        14.467045        50,316        0.00%        -2.41%     
2015     0.25%        9,092        14.407401        130,992        0.00%        -2.46%     
2014     0.00%        3,857        15.040880        58,013        0.72%        5.09%     
2014     0.20%        27,163        14.823987        402,664        0.72%        4.88%     
2014     0.25%        17,121        14.770258        252,882        0.72%        4.83%     
2013     0.00%        79,541        14.311958        1,138,387        0.53%        34.70%     
2013     0.20%        20,031        14.133817        283,114        0.53%        34.43%     
2013     0.25%        24,523        14.089630        345,520        0.53%        34.36%     
2012     0.00%        11,694        10.625374        124,253        1.21%        13.38%     
2012     0.20%        14,154        10.514104        148,817        1.21%        13.15%     
2012     0.25%        32,089        10.486475        336,500        1.21%        13.10%     
2011     0.00%        9,646        9.371332        90,396        0.59%        -6.33%     
2011     0.20%        117,245        9.291802        1,089,417        0.59%        -6.52%     
2011     0.25%        68,729        9.272036        637,258        0.59%        -6.57%     

Variable Series II - DWS Large Cap Value VIP - Class B (SVSLVB)

2015     0.20%        2,701        13.410293        36,221        1.10%        -7.35%     
2015     0.25%        7,895        13.379022        105,627        1.10%        -7.40%     
2014     0.20%        2,816        14.474185        40,759        1.40%        10.14%     
2014     0.25%        7,950        14.447661        114,859        1.40%        10.08%     
2013     0.20%        2,803        13.142143        36,837        1.66%        30.28%     
2013     0.25%        8,446        13.124631        110,851        1.66%        30.21%     
2012     0.20%        1,318        10.087692        13,296        1.67%        9.22%     
2012     0.25%        11,902        10.079282        119,964        1.67%        9.16%     
2011     0.20%        2,801        9.236333        25,871        0.00%        -7.64%      5/2/2011
2011     0.25%        15,749        9.233267        145,415        0.00%        -7.67%      5/2/2011

Managed Tail Risk Fund II: Primary Shares (FVCA2P)

2015     0.00%        40,403        17.216840        695,612        1.64%        -6.29%     
2014     0.00%        43,124        18.372369        792,290        1.71%        -0.97%     
2013     0.00%        43,232        18.551848        802,033        0.96%        16.45%     
2012     0.00%        43,680        15.930913        695,862        0.63%        10.17%     
2011     0.00%        80,819        14.459762        1,168,624        0.58%        -5.29%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Quality Bond Fund II - Primary Shares (FQB)

2015     0.00%        700,419      $ 22.067178      $ 15,456,271        3.73%        -0.24%     
2015     0.20%        45,011        21.343972        960,714        3.73%        -0.44%     
2015     0.25%        419,229        21.166898        8,873,777        3.73%        -0.49%     
2014     0.00%        760,940        22.121022        16,832,770        3.86%        3.79%     
2014     0.10%        49,705        21.777285        1,082,440        3.86%        3.69%     
2014     0.20%        44,039        21.438891        944,147        3.86%        3.59%     
2014     0.25%        429,116        21.271652        9,128,006        3.86%        3.53%     
2013     0.00%        786,537        21.312631        16,763,173        4.25%        1.03%     
2013     0.10%        36,888        21.002441        774,738        4.25%        0.93%     
2013     0.20%        15,168        20.696773        313,929        4.25%        0.83%     
2013     0.25%        511,091        20.545590        10,500,666        4.25%        0.78%     
2012     0.00%        838,044        21.094313        17,677,962        4.22%        9.72%     
2012     0.10%        43,716        20.808093        909,647        4.22%        9.61%     
2012     0.20%        15,627        20.525765        320,756        4.22%        9.50%     
2012     0.25%        558,099        20.386022        11,377,418        4.22%        9.45%     
2011     0.00%        922,533        19.225225        17,735,904        5.17%        2.27%     
2011     0.10%        53,578        18.983394        1,017,092        5.17%        2.17%     
2011     0.20%        8,024        18.744605        150,407        5.17%        2.07%     
2011     0.25%        765,984        18.626322        14,267,465        5.17%        2.02%     

VIP Contrafund(R) Portfolio - Service Class (FCS)

2015     0.00%        34,362        41.249782        1,417,425        0.73%        0.56%     
2015     0.20%        131,919        27.491713        3,626,679        0.73%        0.36%     
2015     0.25%        1,063,284        27.285217        29,011,935        0.73%        0.31%     
2014     0.00%        35,690        41.020883        1,464,035        0.79%        11.82%     
2014     0.10%        244,457        29.336804        7,171,587        0.79%        11.70%     
2014     0.20%        614,902        27.393898        16,844,563        0.79%        11.59%     
2014     0.25%        1,281,324        27.201727        34,854,226        0.79%        11.54%     
2013     0.00%        44,502        36.685914        1,632,597        0.97%        31.14%     
2013     0.10%        227,298        26.262819        5,969,486        0.97%        31.01%     
2013     0.20%        694,696        24.548020        17,053,411        0.97%        30.88%     
2013     0.25%        1,740,999        24.388004        42,459,491        0.97%        30.82%     
2012     0.00%        39,228        27.973584        1,097,348        1.22%        16.31%     
2012     0.10%        350,542        20.045837        7,026,908        1.22%        16.19%     
2012     0.20%        750,624        18.755703        14,078,481        1.22%        16.08%     
2012     0.25%        1,859,639        18.642752        34,668,789        1.22%        16.02%     
2011     0.00%        12,792        24.051295        307,664        0.87%        -2.64%     
2011     0.10%        472,515        17.252407        8,152,021        0.87%        -2.73%     
2011     0.20%        843,296        16.158243        13,626,182        0.87%        -2.83%     
2011     0.25%        2,116,454        16.068977        34,009,251        0.87%        -2.88%     

VIP Energy Portfolio - Service Class 2 (FNRS2)

2015     0.00%        390,067        15.682940        6,117,397        0.97%        -20.75%     
2014     0.00%        405,538        19.788975        8,025,181        0.71%        -12.76%     
2013     0.00%        422,224        22.684649        9,578,003        0.68%        24.15%     
2012     0.00%        500,432        18.272664        9,144,226        0.74%        4.73%     
2011     0.00%        594,575        17.446617        10,373,322        0.83%        -5.20%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VIP Equity-Income Portfolio - Service Class (FEIS)

2015     0.00%        1,694,225      $ 25.536552      $ 43,264,665        3.02%        -4.09%     
2015     0.20%        193,265        20.125585        3,889,571        3.02%        -4.28%     
2015     0.25%        457,957        19.974413        9,147,422        3.02%        -4.33%     
2014     0.00%        1,768,632        26.625089        47,089,984        2.59%        8.65%     
2014     0.10%        84,793        22.992020        1,949,562        2.59%        8.54%     
2014     0.20%        172,847        21.025481        3,634,191        2.59%        8.43%     
2014     0.25%        501,188        20.877991        10,463,799        2.59%        8.38%     
2013     0.00%        1,946,734        24.506129        47,706,915        2.39%        28.01%     
2013     0.10%        130,184        21.183368        2,757,736        2.39%        27.88%     
2013     0.20%        217,046        19.390917        4,208,721        2.39%        27.76%     
2013     0.25%        759,380        19.264514        14,629,087        2.39%        27.69%     
2012     0.00%        2,108,689        19.143712        40,368,135        2.97%        17.19%     
2012     0.10%        164,157        16.564582        2,719,192        2.97%        17.07%     
2012     0.20%        259,357        15.178109        3,936,549        2.97%        16.95%     
2012     0.25%        808,889        15.086704        12,203,469        2.97%        16.89%     
2011     0.00%        2,387,273        16.335975        38,998,432        2.29%        0.86%     
2011     0.10%        201,437        14.149286        2,850,190        2.29%        0.76%     
2011     0.20%        265,212        12.977974        3,441,914        2.29%        0.66%     
2011     0.25%        729,727        12.906284        9,418,064        2.29%        0.61%     

VIP Freedom Fund 2010 Portfolio - Service Class (FF10S)

2015     0.00%        102,633        17.755390        1,822,289        1.62%        -0.31%     
2015     0.20%        20,182        17.380741        350,778        1.62%        -0.51%     
2015     0.25%        2,789        17.288321        48,217        1.62%        -0.56%     
2014     0.00%        120,351        17.810892        2,143,559        1.52%        4.35%     
2014     0.20%        18,385        17.469979        321,186        1.52%        4.14%     
2014     0.25%        2,595        17.385775        45,116        1.52%        4.09%     
2013     0.00%        127,302        17.068509        2,172,855        1.61%        13.39%     
2013     0.20%        17,126        16.775321        287,294        1.61%        13.17%     
2013     0.25%        2,425        16.702809        40,504        1.61%        13.11%     
2012     0.00%        131,678        15.052634        1,982,101        1.75%        11.69%     
2012     0.20%        15,546        14.823672        230,449        1.75%        11.46%     
2012     0.25%        2,211        14.766979        32,650        1.75%        11.41%     
2011     0.00%        147,851        13.477731        1,992,696        2.20%        -0.28%     
2011     0.20%        27,132        13.299351        360,838        2.20%        -0.48%     
2011     0.25%        3,966        13.255123        52,570        2.20%        -0.53%     

VIP Freedom Fund 2020 Portfolio - Service Class (FF20S)

2015     0.00%        421,909        18.391642        7,759,599        1.92%        -0.37%     
2015     0.20%        306,295        18.003517        5,514,387        1.92%        -0.57%     
2015     0.25%        787,972        17.907742        14,110,799        1.92%        -0.62%     
2014     0.00%        400,798        18.459232        7,398,423        1.76%        4.66%     
2014     0.20%        273,844        18.105869        4,958,184        1.76%        4.46%     
2014     0.25%        559,360        18.018560        10,078,862        1.76%        4.40%     
2013     0.00%        422,314        17.636606        7,448,186        2.00%        15.95%     
2013     0.20%        183,456        17.333636        3,179,960        2.00%        15.72%     
2013     0.25%        479,412        17.258677        8,274,017        2.00%        15.67%     
2012     0.00%        426,569        15.209948        6,488,092        2.06%        13.19%     
2012     0.20%        161,122        14.978574        2,413,378        2.06%        12.96%     
2012     0.25%        270,796        14.921259        4,040,617        2.06%        12.90%     
2011     0.00%        419,318        13.437783        5,634,704        2.27%        -1.12%     
2011     0.20%        107,464        13.259920        1,424,964        2.27%        -1.32%     
2011     0.25%        254,766        13.215803        3,366,937        2.27%        -1.37%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VIP Freedom Fund 2030 Portfolio - Service Class (FF30S)

2015     0.00%        304,381      $ 19.200517      $ 5,844,273        1.80%        -0.34%     
2015     0.20%        147,272        18.795212        2,768,008        1.80%        -0.53%     
2015     0.25%        219,036        18.695220        4,094,926        1.80%        -0.58%     
2014     0.00%        264,765        19.265178        5,100,745        1.60%        4.86%     
2014     0.20%        114,348        18.896274        2,160,751        1.60%        4.65%     
2014     0.25%        144,696        18.805145        2,721,029        1.60%        4.60%     
2013     0.00%        250,440        18.372029        4,601,091        1.87%        21.50%     
2013     0.20%        88,333        18.056318        1,594,969        1.87%        21.25%     
2013     0.25%        104,480        17.978225        1,878,365        1.87%        21.19%     
2012     0.00%        240,346        15.121452        3,634,381        1.99%        15.48%     
2012     0.20%        71,930        14.891344        1,071,134        1.99%        15.25%     
2012     0.25%        64,495        14.834352        956,742        1.99%        15.19%     
2011     0.00%        257,152        13.094199        3,367,199        2.22%        -2.70%     
2011     0.20%        89,919        12.920810        1,161,826        2.22%        -2.89%     
2011     0.25%        157,867        12.877813        2,032,982        2.22%        -2.94%     

VIP Freedom Income Fund Portfolio - Service Class (FFINS)

2015     0.20%        91,955        11.761092        1,081,491        1.73%        -0.62%     
2015     0.25%        12,670        11.731270        148,635        1.73%        -0.67%     
2014     0.20%        77,001        11.834695        911,283        1.27%        3.49%     
2014     0.25%        10,840        11.810581        128,027        1.27%        3.43%     
2013     0.20%        132,461        11.436099        1,514,837        1.48%        5.17%     
2013     0.25%        18,704        11.418503        213,572        1.48%        5.12%     
2012     0.20%        133,054        10.874034        1,446,834        1.44%        6.21%     
2012     0.25%        18,872        10.862729        205,001        1.44%        6.15%     
2011     0.20%        157,557        10.238465        1,613,142        1.77%        1.36%     
2011     0.25%        22,966        10.232950        235,010        1.77%        1.31%     

VIP Growth Opportunities Portfolio - Service Class (FGOS)

2015     0.00%        5,557        22.630954        125,760        0.01%        5.48%     
2015     0.25%        15,236        20.447477        311,538        0.01%        5.22%     
2014     0.00%        5,557        21.454903        119,225        0.14%        12.10%     
2014     0.10%        134,645        17.188872        2,314,396        0.14%        11.99%     
2014     0.25%        36,206        19.433423        703,607        0.14%        11.82%     
2013     0.00%        5,557        19.138600        106,353        0.22%        37.78%     
2013     0.10%        100,233        15.348474        1,538,424        0.22%        37.64%     
2013     0.25%        38,141        17.378745        662,843        0.22%        37.43%     
2012     0.00%        5,557        13.890993        77,192        0.29%        19.46%     
2012     0.10%        101,294        11.151220        1,129,552        0.29%        19.34%     
2012     0.25%        38,843        12.645225        491,178        0.29%        19.16%     
2011     0.00%        2        11.627899        23        0.06%        2.18%     
2011     0.10%        167,357        9.343842        1,563,757        0.06%        2.08%     
2011     0.25%        40,559        10.611629        430,397        0.06%        1.93%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VIP Growth Portfolio - Service Class (FGS)

2015     0.00%        1,981,040      $ 29.910918      $ 59,254,725        0.16%        7.05%     
2015     0.20%        618,806        17.094091        10,577,926        0.16%        6.84%     
2015     0.25%        1,160,473        16.965550        19,688,063        0.16%        6.79%     
2014     0.00%        2,037,432        27.940410        56,926,685        0.10%        11.19%     
2014     0.10%        166,327        18.053863        3,002,845        0.10%        11.08%     
2014     0.20%        570,491        15.999907        9,127,803        0.10%        10.97%     
2014     0.25%        1,256,208        15.887528        19,958,040        0.10%        10.91%     
2013     0.00%        2,161,691        25.128956        54,321,038        0.19%        36.20%     
2013     0.10%        147,168        16.253466        2,391,990        0.19%        36.07%     
2013     0.20%        448,937        14.418752        6,473,111        0.19%        35.93%     
2013     0.25%        1,165,701        14.324638        16,698,245        0.19%        35.86%     
2012     0.00%        2,363,334        18.449661        43,602,711        0.49%        14.54%     
2012     0.10%        187,801        11.945210        2,243,322        0.49%        14.43%     
2012     0.20%        365,060        10.607405        3,872,339        0.49%        14.32%     
2012     0.25%        1,242,450        10.543440        13,099,697        0.49%        14.26%     
2011     0.00%        2,614,645        16.106923        42,113,886        0.25%        0.14%     
2011     0.10%        259,344        10.438857        2,707,255        0.25%        0.04%     
2011     0.20%        332,626        9.279050        3,086,453        0.25%        -0.06%     
2011     0.25%        1,292,625        9.227724        11,927,987        0.25%        -0.11%     

VIP High Income Portfolio - Service Class (FHIS)

2015     0.00%        398,012        17.783999        7,078,245        6.06%        -3.76%     
2015     0.20%        109,529        22.046567        2,414,738        6.06%        -3.95%     
2015     0.25%        148,513        21.880871        3,249,594        6.06%        -4.00%     
2014     0.00%        249,244        18.477945        4,605,517        5.59%        1.07%     
2014     0.10%        102,569        18.123527        1,858,912        5.59%        0.97%     
2014     0.20%        111,476        22.952707        2,558,676        5.59%        0.87%     
2014     0.25%        153,941        22.791590        3,508,560        5.59%        0.82%     
2013     0.00%        277,170        18.281495        5,067,082        5.53%        5.87%     
2013     0.10%        114,927        17.948800        2,062,802        5.53%        5.77%     
2013     0.20%        113,321        22.754156        2,578,524        5.53%        5.66%     
2013     0.25%        169,375        22.605727        3,828,845        5.53%        5.61%     
2012     0.00%        317,308        17.267290        5,479,049        5.66%        14.20%     
2012     0.10%        154,446        16.970006        2,620,950        5.66%        14.08%     
2012     0.20%        117,282        21.534843        2,525,649        5.66%        13.97%     
2012     0.25%        237,112        21.405070        5,075,399        5.66%        13.91%     
2011     0.00%        369,835        15.120791        5,592,198        6.65%        3.93%     
2011     0.10%        138,594        14.875369        2,061,637        6.65%        3.82%     
2011     0.20%        104,993        18.895691        1,983,915        6.65%        3.72%     
2011     0.25%        208,631        18.791235        3,920,434        6.65%        3.67%     

VIP Index 500 Portfolio - Initial Class (FIP)

2015     0.20%        2,497,396        16.487898        41,176,811        2.06%        1.13%     
2015     0.25%        344,598        16.422121        5,659,030        2.06%        1.08%     
2014     0.20%        1,871,207        16.303370        30,506,980        1.59%        13.34%     
2014     0.25%        263,815        16.246449        4,286,057        1.59%        13.29%     
2013     0.20%        1,997,333        14.384057        28,729,752        1.87%        31.98%     
2013     0.25%        282,436        14.341001        4,050,415        1.87%        31.91%     
2012     0.20%        2,260,976        10.898766        24,641,848        2.18%        15.68%     
2012     0.25%        321,163        10.871578        3,491,549        2.18%        15.63%     
2011     0.20%        2,038,925        9.421216        19,209,153        1.86%        1.84%     
2011     0.25%        297,628        9.402424        2,798,425        1.86%        1.78%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VIP Investment Grade Bond Portfolio - Service Class (FIGBS)

2015     0.00%        608,892      $ 16.632779      $ 10,127,566        2.56%        -0.71%     
2015     0.10%        4,244,856        16.423463        69,715,235        2.56%        -0.80%     
2015     0.20%        1,614,414        16.216720        26,180,500        2.56%        -0.90%     
2015     0.25%        3,999,400        16.114367        64,447,799        2.56%        -0.95%     
2014     0.00%        671,792        16.750978        11,253,173        4.79%        5.75%     
2014     0.10%        4,337,743        16.556719        71,818,792        4.79%        5.65%     
2014     0.20%        972,633        16.364659        15,916,807        4.79%        5.54%     
2014     0.25%        3,255,181        16.269506        52,960,187        4.79%        5.49%     
2013     0.00%        699,476        15.839600        11,079,420        2.51%        -1.89%     
2013     0.10%        51,496        15.671570        807,023        2.51%        -1.99%     
2013     0.20%        294,722        15.505270        4,569,744        2.51%        -2.09%     
2013     0.25%        1,320,728        15.422822        20,369,353        2.51%        -2.13%     
2012     0.00%        803,619        16.144635        12,974,135        2.31%        5.77%     
2012     0.10%        108,259        15.989351        1,730,991        2.31%        5.66%     
2012     0.20%        196,470        15.835518        3,111,204        2.31%        5.56%     
2012     0.25%        982,289        15.759183        15,480,072        2.31%        5.50%     
2011     0.00%        966,381        15.264055        14,750,893        3.27%        7.21%     
2011     0.10%        89,725        15.132404        1,357,755        3.27%        7.10%     
2011     0.20%        79,267        15.001845        1,189,151        3.27%        6.99%     
2011     0.25%        903,088        14.937020        13,489,444        3.27%        6.94%     

VIP Mid Cap Portfolio - Service Class (FMCS)

2015     0.00%        626,605        42.935421        26,903,549        0.36%        -1.50%     
2015     0.20%        86,910        41.861396        3,638,174        0.36%        -1.70%     
2015     0.25%        264,477        41.597113        11,001,480        0.36%        -1.75%     
2014     0.00%        730,974        43.589036        31,862,452        0.16%        6.20%     
2014     0.10%        53,133        43.083440        2,289,152        0.16%        6.09%     
2014     0.20%        93,579        42.583780        3,984,948        0.16%        5.98%     
2014     0.25%        286,504        42.336098        12,129,461        0.16%        5.93%     
2013     0.00%        780,720        41.045629        32,045,143        0.40%        36.06%     
2013     0.10%        47,653        40.610146        1,935,195        0.40%        35.93%     
2013     0.20%        90,859        40.179329        3,650,654        0.40%        35.79%     
2013     0.25%        295,285        39.965614        11,801,246        0.40%        35.72%     
2012     0.00%        839,496        30.166927        25,325,015        0.50%        14.75%     
2012     0.10%        58,544        29.876704        1,749,102        0.50%        14.64%     
2012     0.20%        195,159        29.589302        5,774,619        0.50%        14.52%     
2012     0.25%        290,111        29.446618        8,542,788        0.50%        14.46%     
2011     0.00%        954,537        26.289170        25,093,985        0.14%        -10.72%     
2011     0.10%        92,366        26.062360        2,407,276        0.14%        -10.81%     
2011     0.20%        179,922        25.837533        4,648,741        0.14%        -10.89%     
2011     0.25%        424,274        25.725831        10,914,801        0.14%        -10.94%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VIP Overseas Portfolio - Service Class (FOS)

2015     0.00%        720,334      $ 21.563264      $ 15,532,752        1.45%        3.49%     
2015     0.20%        18,934        16.167493        306,115        1.45%        3.28%     
2015     0.25%        142,822        16.045948        2,291,714        1.45%        3.23%     
2014     0.00%        245,528        20.835912        5,115,800        1.18%        -8.16%     
2014     0.10%        64,349        17.621551        1,133,929        1.18%        -8.25%     
2014     0.20%        21,075        15.653432        329,896        1.18%        -8.34%     
2014     0.25%        196,072        15.543521        3,047,649        1.18%        -8.39%     
2013     0.00%        276,825        22.687278        6,280,406        1.01%        30.38%     
2013     0.10%        55,959        19.206513        1,074,777        1.01%        30.25%     
2013     0.20%        21,884        17.078445        373,745        1.01%        30.12%     
2013     0.25%        233,249        16.967020        3,957,540        1.01%        30.05%     
2012     0.00%        311,831        17.401474        5,426,319        1.63%        20.54%     
2012     0.10%        75,393        14.746394        1,111,775        1.63%        20.42%     
2012     0.20%        130,929        13.125608        1,718,523        1.63%        20.30%     
2012     0.25%        380,826        13.046486        4,968,441        1.63%        20.24%     
2011     0.00%        358,292        14.436160        5,172,361        1.19%        -17.23%     
2011     0.10%        120,357        12.245783        1,473,866        1.19%        -17.31%     
2011     0.20%        134,279        10.910767        1,465,087        1.19%        -17.39%     
2011     0.25%        681,992        10.850436        7,399,911        1.19%        -17.43%     

VIP Value Strategies Portfolio - Service Class (FVSS)

2015     0.00%        133,388        25.818706        3,443,906        0.74%        -3.05%     
2015     0.25%        544        24.951220        13,573        0.74%        -3.30%     
2014     0.00%        149,991        26.632186        3,994,588        0.96%        6.69%     
2014     0.10%        60,267        26.296890        1,584,835        0.96%        6.59%     
2013     0.00%        151,791        24.961619        3,788,949        0.85%        30.44%     
2013     0.10%        56,803        24.672018        1,401,445        0.85%        30.31%     
2013     0.25%        280        24.243855        6,788        0.85%        30.12%     
2012     0.00%        164,712        19.135795        3,151,895        0.49%        27.10%     
2012     0.10%        49,718        18.932701        941,296        0.49%        26.97%     
2012     0.25%        50        18.632032        932        0.49%        26.78%     
2011     0.00%        190,137        15.055580        2,862,623        0.91%        -8.85%     
2011     0.10%        64,340        14.910722        959,356        0.91%        -8.94%     
2011     0.25%        829        14.695999        12,183        0.91%        -9.07%     

VIP Fidelity VIP Freedom Fund 2005 Portfolio - Service Class (FF05S)

2015     0.20%        11,939        12.608366        150,531        2.28%        -0.55%     
2015     0.25%        1,645        12.576385        20,688        2.28%        -0.59%     
2014     0.20%        6,338        12.677492        80,350        2.81%        3.98%     
2014     0.25%        892        12.651661        11,285        2.81%        3.92%     
2013     0.20%        2,142        12.192614        26,117        0.05%        9.38%     
2013     0.25%        302        12.173858        3,677        0.05%        9.32%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VIP Fidelity VIP Freedom Fund 2015 Portfolio - Service Class (FF15S)

2015     0.00%        31,518      $ 13.968154      $ 440,248        1.88%        -0.44%     
2015     0.20%        273,756        13.755650        3,765,692        1.88%        -0.63%     
2015     0.25%        479,902        13.703016        6,576,105        1.88%        -0.68%     
2014     0.00%        35,710        14.029245        500,984        1.73%        4.63%     
2014     0.20%        186,893        13.843476        2,587,249        1.73%        4.42%     
2014     0.25%        437,977        13.797401        6,042,944        1.73%        4.37%     
2013     0.00%        29,469        13.408840        395,145        2.10%        14.24%     
2013     0.20%        135,132        13.257768        1,791,549        2.10%        14.02%     
2013     0.25%        396,134        13.220251        5,236,991        2.10%        13.96%     
2012     0.00%        33,712        11.737104        395,681        2.15%        12.13%     
2012     0.20%        109,872        11.628088        1,277,601        2.15%        11.91%     
2012     0.25%        247,648        11.600978        2,872,959        2.15%        11.85%     
2011     0.00%        10,672        10.467224        111,706        2.38%        -0.41%     
2011     0.20%        55,142        10.390805        572,970        2.38%        -0.61%     
2011     0.25%        318,600        10.371781        3,304,449        2.38%        -0.66%     

VIP Fidelity VIP Freedom Fund 2025 Portfolio - Service Class (FF25S)

2015     0.00%        23,326        14.357972        334,914        1.84%        -0.36%     
2015     0.20%        342,270        14.139535        4,839,539        1.84%        -0.56%     
2015     0.25%        609,046        14.085417        8,578,667        1.84%        -0.61%     
2014     0.00%        47,263        14.409981        681,059        1.78%        4.98%     
2014     0.20%        211,266        14.219157        3,004,024        1.78%        4.77%     
2014     0.25%        511,302        14.171815        7,246,077        1.78%        4.72%     
2013     0.00%        24,732        13.726450        339,483        1.91%        19.89%     
2013     0.20%        154,136        13.571790        2,091,901        1.91%        19.65%     
2013     0.25%        407,075        13.533368        5,509,096        1.91%        19.59%     
2012     0.00%        10,423        11.449402        119,337        2.04%        14.97%     
2012     0.20%        133,774        11.343045        1,517,405        2.04%        14.74%     
2012     0.25%        449,159        11.316590        5,082,948        2.04%        14.68%     
2011     0.00%        9,293        9.958561        92,545        2.30%        -2.26%     
2011     0.20%        68,449        9.885849        676,676        2.30%        -2.45%     
2011     0.25%        390,645        9.867741        3,854,784        2.30%        -2.50%     

VIP Fidelity VIP Freedom Fund 2040 Portfolio - Service Class (FF40S)

2015     0.00%        15,317        15.839391        242,612        1.63%        -0.35%     
2015     0.20%        140,384        15.661012        2,198,556        1.63%        -0.55%     
2015     0.25%        273,773        15.616724        4,275,437        1.63%        -0.60%     
2014     0.00%        20,066        15.895413        318,957        1.51%        4.83%     
2014     0.20%        113,996        15.747863        1,795,193        1.51%        4.62%     
2014     0.25%        224,848        15.711192        3,532,630        1.51%        4.57%     
2013     0.00%        10,769        15.162791        163,288        1.68%        25.16%     
2013     0.20%        116,880        15.052125        1,759,292        1.68%        24.91%     
2013     0.25%        197,150        15.024583        2,962,097        1.68%        24.85%     
2012     0.00%        5,672        12.114401        68,713        2.29%        16.88%     
2012     0.20%        98,529        12.050049        1,187,279        2.29%        16.65%     
2012     0.25%        154,501        12.034012        1,859,267        2.29%        16.59%     
2011     0.00%        2,579        10.364685        26,731        2.32%        -4.24%     
2011     0.20%        65,750        10.330313        679,218        2.32%        -4.43%     
2011     0.25%        9,719        10.321735        100,317        2.32%        -4.48%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Franklin Income Securities Fund - Class 2 (FTVIS2)

2015     0.00%        377,928      $ 15.982130      $ 6,040,094        4.68%        -7.05%     
2014     0.00%        390,265        17.195058        6,710,629        4.91%        4.62%     
2013     0.00%        391,706        16.436367        6,438,224        6.32%        13.94%     
2012     0.00%        397,235        14.425332        5,730,247        6.26%        12.65%     
2011     0.00%        353,498        12.805162        4,526,599        5.79%        2.38%     

Rising Dividends Securities Fund - Class 1 (FTVRDI)

2015     0.00%        570,589        27.611133        15,754,609        1.64%        -3.42%     
2014     0.00%        599,977        28.587626        17,151,918        1.53%        9.01%     
2013     0.00%        706,879        26.225783        18,538,455        1.74%        30.05%     
2012     0.00%        689,703        20.165763        13,908,387        1.82%        12.18%     
2011     0.00%        702,870        17.976970        12,635,473        1.70%        6.29%     

Small Cap Value Securities Fund - Class 1 (FTVSVI)

2015     0.00%        255,164        33.932255        8,658,290        0.91%        -7.18%     
2014     0.00%        292,511        36.558447        10,693,748        0.83%        0.88%     
2013     0.00%        314,978        36.238435        11,414,310        1.50%        36.50%     
2012     0.00%        363,138        26.547381        9,640,363        1.03%        18.75%     
2011     0.00%        428,826        22.355324        9,586,544        0.90%        -3.53%     

Small Cap Value Securities Fund - Class 2 (FTVSV2)

2015     0.00%        15,334        20.825870        319,344        0.65%        -7.39%     
2015     0.20%        63,502        20.386264        1,294,569        0.65%        -7.57%     
2015     0.25%        357,185        20.277748        7,242,907        0.65%        -7.62%     
2014     0.00%        41,699        22.486870        937,680        0.63%        0.57%     
2014     0.10%        57,843        22.270557        1,288,196        0.63%        0.47%     
2014     0.20%        50,845        22.056295        1,121,452        0.63%        0.37%     
2014     0.25%        362,396        21.949861        7,954,542        0.63%        0.32%     
2013     0.00%        51,881        22.359064        1,160,011        1.33%        36.24%     
2013     0.10%        53,932        22.166142        1,195,464        1.33%        36.10%     
2013     0.20%        33,005        21.974864        725,280        1.33%        35.97%     
2013     0.25%        326,738        21.879759        7,148,949        1.33%        35.90%     
2012     0.00%        34,591        16.411795        567,700        0.80%        18.39%     
2012     0.10%        51,113        16.286455        832,450        0.80%        18.27%     
2012     0.20%        37,175        16.162056        600,824        0.80%        18.15%     
2012     0.25%        281,916        16.100162        4,538,893        0.80%        18.09%     
2011     0.00%        26,725        13.862767        370,482        0.69%        -3.76%     
2011     0.10%        59,250        13.770689        815,913        0.69%        -3.86%     
2011     0.20%        26,691        13.679206        365,112        0.69%        -3.95%     
2011     0.25%        271,775        13.633645        3,705,284        0.69%        -4.00%     

Mutual Global Discovery Securities Fund - Class 2 (FTVMD2)

2015     0.00%        109,816        14.170654        1,556,165        3.80%        -3.65%     
2015     0.20%        2,063        13.945925        28,770        3.80%        -3.84%     
2015     0.25%        35,464        13.890298        492,606        3.80%        -3.89%     
2014     0.00%        526        14.707440        7,736        2.43%        5.71%     
2014     0.20%        258        14.503192        3,742        2.43%        5.50%     
2014     0.25%        31,338        14.452565        452,914        2.43%        5.44%     
2013     0.25%        20,950        13.706304        287,147        2.67%        27.30%     
2012     0.25%        13,771        10.767244        148,276        1.98%        13.07%     
2011     0.25%        21,727        9.522271        206,890        2.22%        -3.20%     

Templeton Developing Markets Securities Fund - Class 2 (FTVDM2)

2015     0.00%        285,175        7.580957        2,161,899        2.16%        -19.60%     
2014     0.00%        338,402        9.429267        3,190,883        1.50%        -5.71%      4/30/2014

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Templeton Foreign Securities Fund - Class 1 (TIF)

2015     0.00%        42,432      $ 23.944197      $ 1,016,000        3.58%        -6.31%     
2014     0.00%        48,081        25.556124        1,228,764        2.07%        -10.89%     
2013     0.00%        53,511        28.677989        1,534,588        2.56%        23.27%     
2012     0.00%        58,522        23.263845        1,361,447        3.25%        18.60%     
2011     0.00%        65,960        19.616024        1,293,873        1.93%        -10.44%     

Templeton Foreign Securities Fund - Class 2 (TIF2)

2015     0.00%        232,916        21.962379        5,115,389        3.22%        -6.49%     
2015     0.10%        147,716        21.671638        3,201,248        3.22%        -6.59%     
2015     0.20%        242,279        21.384741        5,181,074        3.22%        -6.68%     
2015     0.25%        523,517        21.242689        11,120,909        3.22%        -6.73%     
2014     0.00%        283,449        23.487098        6,657,394        1.97%        -11.13%     
2014     0.10%        53,353        23.199378        1,237,756        1.97%        -11.22%     
2014     0.20%        149,945        22.915181        3,436,017        1.97%        -11.31%     
2014     0.25%        600,484        22.774362        13,675,640        1.97%        -11.35%     
2013     0.10%        48,250        26.131241        1,260,832        2.30%        22.85%     
2013     0.20%        140,404        25.836981        3,627,615        2.30%        22.72%     
2013     0.25%        454,085        25.691070        11,665,930        2.30%        22.66%     
2012     0.10%        66,092        21.271368        1,405,867        3.00%        18.11%     
2012     0.20%        123,690        21.052856        2,604,028        3.00%        18.00%     
2012     0.25%        438,755        20.944427        9,189,472        3.00%        17.94%     
2011     0.10%        85,706        18.009125        1,543,490        1.69%        -10.72%     
2011     0.20%        145,538        17.842000        2,596,689        1.69%        -10.81%     
2011     0.25%        405,037        17.759014        7,193,058        1.69%        -10.86%     

Templeton Global Bond Securities Fund - Class 2 (FTVGI2)

2015     0.00%        601,113        16.604255        9,981,034        7.60%        -4.30%     
2015     0.25%        61,886        16.264906        1,006,570        7.60%        -4.54%     
2014     0.00%        661,714        17.351083        11,481,455        3.71%        1.83%     
2014     0.20%        17,502        17.100997        299,302        3.71%        1.63%     
2014     0.25%        95,393        17.039030        1,625,404        3.71%        1.58%     
2013     0.00%        84,791        17.038710        1,444,729        4.74%        1.63%     
2013     0.10%        1,771,983        16.932405        30,003,934        4.74%        1.53%     
2013     0.20%        147,053        16.826761        2,474,426        4.74%        1.43%     
2013     0.25%        507,776        16.774170        8,517,521        4.74%        1.38%     
2012     0.00%        84,202        16.765591        1,411,696        5.98%        15.07%     
2012     0.10%        1,793,425        16.677654        29,910,122        5.98%        14.95%     
2012     0.20%        156,660        16.590177        2,599,017        5.98%        14.84%     
2012     0.25%        328,747        16.546601        5,439,645        5.98%        14.78%     
2011     0.00%        60,786        14.570417        885,677        5.70%        -0.87%     
2011     0.10%        1,815,343        14.508523        26,337,946        5.70%        -0.97%     
2011     0.20%        410,455        14.446899        5,929,802        5.70%        -1.07%     
2011     0.25%        294,980        14.416178        4,252,484        5.70%        -1.12%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

2015     0.00%        51,295      $ 12.958538      $ 664,708        2.92%        -6.21%     
2014     0.00%        53,635        13.816935        741,071        2.78%        2.85%     
2013     0.00%        50,080        13.434293        672,789        11.86%        23.77%     
2012     0.00%        35,375        10.854248        383,969        2.65%        15.33%     
2011     0.00%        35,227        9.411247        331,530        0.02%        -1.54%     

Mid Cap Value - Institutional Shares (GVMCE)

2015     0.20%        247,162        33.511027        8,282,652        0.34%        -9.42%     
2015     0.25%        918,824        33.288493        30,586,266        0.34%        -9.47%     
2014     0.10%        106,860        37.456078        4,002,556        1.01%        13.46%     
2014     0.20%        420,133        36.997381        15,543,821        1.01%        13.34%     
2014     0.25%        1,195,314        36.770095        43,951,809        1.01%        13.29%     
2013     0.10%        108,753        33.013548        3,590,322        0.90%        32.76%     
2013     0.20%        449,693        32.641878        14,678,824        0.90%        32.63%     
2013     0.25%        1,331,168        32.457572        43,206,481        0.90%        32.56%     
2012     0.10%        112,359        24.867064        2,794,038        1.16%        18.35%     
2012     0.20%        461,980        24.611687        11,370,107        1.16%        18.23%     
2012     0.25%        1,269,357        24.484957        31,080,152        1.16%        18.17%     
2011     0.10%        153,402        21.011696        3,223,236        0.73%        -6.47%     
2011     0.20%        514,075        20.816771        10,701,382        0.73%        -6.56%     
2011     0.25%        1,416,909        20.719959        29,358,296        0.73%        -6.61%     

Goldman Sachs Structured Small Cap Equity Fund (GVCSE)

2015     0.00%        745        13.063040        9,732        0.39%        -2.13%     
2015     0.20%        7        12.993525        91        0.39%        -2.32%     
2015     0.25%        3,817        12.976212        49,530        0.39%        -2.37%     
2014     0.00%        614        13.346764        8,195        0.96%        6.93%     
2014     0.25%        2,372        13.291252        31,527        0.96%        6.66%     

VIT Growth Opportunities Fund - Service Shares (GVGOPS)

2015     0.00%        2,219        14.658925        32,528        0.00%        -5.20%     
2015     0.20%        12,051        14.522766        175,014        0.00%        -5.39%     
2015     0.25%        83,866        14.488917        1,215,128        0.00%        -5.44%     
2014     0.00%        2,197        15.463755        33,974        0.00%        11.10%     
2014     0.20%        3,394        15.350803        52,101        0.00%        10.88%     
2014     0.25%        76,911        15.322700        1,178,484        0.00%        10.82%     
2013     0.00%        488        13.918867        6,792        0.00%        32.20%     
2013     0.20%        242        13.844854        3,350        0.00%        31.93%     
2013     0.25%        44,082        13.826415        609,496        0.00%        31.87%     
2012     0.00%        489        10.529016        5,149        0.00%        19.43%     
2012     0.20%        1,279        10.493978        13,422        0.00%        19.19%     
2012     0.25%        2,990        10.485241        31,351        0.00%        19.13%     
2011     0.20%        125        8.804262        1,101        0.00%        -11.96%      5/2/2011
2011     0.25%        309        8.801350        2,720        0.00%        -11.99%      5/2/2011

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

ClearBridge Variable Small Cap Growth Portfolio - Class I (SBVSG)

2015     0.00%        42,893      $ 18.588347      $ 797,310        0.00%        -4.37%     
2015     0.20%        122,009        18.283667        2,230,772        0.00%        -4.57%     
2015     0.25%        450,063        18.208236        8,194,853        0.00%        -4.61%     
2014     0.00%        20,708        19.438772        402,538        0.00%        4.08%     
2014     0.20%        62,670        19.158457        1,200,661        0.00%        3.87%     
2014     0.25%        389,558        19.088957        7,436,256        0.00%        3.82%     
2013     0.00%        23,978        18.677023        447,838        0.04%        47.05%     
2013     0.20%        18,438        18.444555        340,081        0.04%        46.76%     
2013     0.25%        292,459        18.386845        5,377,398        0.04%        46.68%     
2012     0.00%        10,013        12.701228        127,177        0.55%        19.43%     
2012     0.20%        5,439        12.568213        68,359        0.55%        19.19%     
2012     0.25%        153,537        12.535151        1,924,609        0.55%        19.13%     
2011     0.00%        12,602        10.635081        134,023        0.00%        1.39%     
2011     0.20%        1,445        10.544821        15,237        0.00%        1.18%     
2011     0.25%        59,758        10.522359        628,795        0.00%        1.13%     

Baron Growth Opportunities Fund Service Class (BNCAI)

2015     0.00%        728        35.840805        26,092        0.00%        -4.77%     
2015     0.20%        77,534        34.898391        2,705,812        0.00%        -4.96%     
2015     0.25%        141,247        34.666599        4,896,553        0.00%        -5.01%     
2014     0.00%        757        37.636200        28,491        0.19%        4.85%     
2014     0.10%        50,907        37.175266        1,892,481        0.19%        4.75%     
2014     0.20%        73,864        36.719968        2,712,284        0.19%        4.65%     
2014     0.25%        155,856        36.494324        5,687,859        0.19%        4.59%     
2013     0.00%        4,120        35.893657        147,882        0.43%        40.06%     
2013     0.10%        57,453        35.489539        2,038,980        0.43%        39.92%     
2013     0.20%        74,980        35.089969        2,631,046        0.43%        39.78%     
2013     0.25%        167,048        34.891789        5,828,604        0.43%        39.71%     
2012     0.00%        11,944        25.626683        306,085        1.08%        18.24%     
2012     0.10%        50,900        25.363489        1,291,002        1.08%        18.12%     
2012     0.20%        73,243        25.102977        1,838,617        1.08%        18.01%     
2012     0.25%        268,487        24.973675        6,705,107        1.08%        17.95%     
2011     0.00%        20,631        21.672931        447,134        0.00%        4.02%     
2011     0.10%        52,786        21.471853        1,133,413        0.00%        3.92%     
2011     0.20%        76,933        21.272621        1,636,567        0.00%        3.82%     
2011     0.25%        337,265        21.173648        7,141,130        0.00%        3.76%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Short Duration Bond Portfolio - I Class Shares (AMTB)

2015     0.00%        300,528      $ 12.388812      $ 3,723,185        1.46%        0.18%     
2014     0.00%        303,453        12.366084        3,752,525        1.76%        0.61%     
2013     0.00%        290,095        12.291113        3,565,590        2.16%        0.62%     
2012     0.00%        299,031        12.215764        3,652,892        2.92%        4.61%     
2011     0.00%        328,162        11.677944        3,832,257        3.71%        0.29%     

Guardian Portfolio - I Class Shares (AMGP)

2015     0.00%        2        34.031156        68        0.81%        -4.97%     
2015     0.25%        25,304        22.093404        559,051        0.81%        -5.21%     
2014     0.00%        2        35.810110        72        0.42%        9.03%     
2014     0.10%        25,458        25.550826        650,473        0.42%        8.92%     
2014     0.25%        18,192        23.306515        423,992        0.42%        8.76%     
2013     0.00%        2        32.844952        66        0.89%        38.81%     
2013     0.10%        34,493        23.458600        809,157        0.89%        38.68%     
2013     0.25%        17,061        21.430183        365,620        0.89%        38.47%     
2012     0.00%        2        23.661014        47        0.19%        12.73%     
2012     0.10%        32,886        16.916121        556,304        0.19%        12.61%     
2012     0.25%        16,445        15.476592        254,513        0.19%        12.44%     
2011     0.00%        2        20.989829        42        0.48%        -2.94%     
2011     0.10%        77,560        15.021443        1,165,063        0.48%        -3.04%     
2011     0.25%        56,791        13.763826        781,661        0.48%        -3.18%     

Mid-Cap Growth Portfolio - I Class Shares (AMCG)

2015     0.00%        26        39.482775        1,027        0.00%        1.28%     
2015     0.25%        105,535        20.470575        2,160,362        0.00%        1.02%     
2014     0.00%        26        38.985620        1,014        0.00%        7.58%     
2014     0.10%        21,987        28.178168        619,553        0.00%        7.47%     
2014     0.25%        111,193        20.263419        2,253,150        0.00%        7.31%     
2013     0.00%        26        36.238273        942        0.00%        32.61%     
2013     0.10%        20,959        26.218640        549,516        0.00%        32.48%     
2013     0.25%        126,357        18.882587        2,385,947        0.00%        32.28%     
2012     0.00%        26        27.326502        710        0.00%        12.41%     
2012     0.10%        30,281        19.790674        599,281        0.00%        12.30%     
2012     0.20%        28,206        14.361118        405,070        0.00%        12.19%     
2012     0.25%        144,932        14.274567        2,068,842        0.00%        12.13%     
2011     0.00%        26        24.308851        632        0.00%        0.47%     
2011     0.10%        34,106        17.622859        601,045        0.00%        0.37%     
2011     0.20%        28,457        12.800871        364,274        0.00%        0.27%     
2011     0.25%        284,856        12.730096        3,626,244        0.00%        0.22%     

Mid-Cap Growth Portfolio - S Class Shares (AMMCGS)

2015     0.00%        108,814        9.599822        1,044,595        0.00%        -4.00%      11/4/2015

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

2015     0.00%        8,711      $ 21.823920      $ 190,108        0.77%        -11.80%     
2015     0.20%        459        19.901008        9,135        0.77%        -11.98%     
2015     0.25%        1,675        19.751364        33,084        0.77%        -12.02%     
2014     0.00%        10,711        24.744866        265,042        0.79%        9.85%     
2014     0.10%        31,934        22.851979        729,755        0.79%        9.74%     
2014     0.20%        526        22.609799        11,893        0.79%        9.63%     
2014     0.25%        7,433        22.451030        166,879        0.79%        9.58%     
2013     0.00%        11,809        22.525541        266,004        0.91%        31.14%     
2013     0.10%        32,225        20.823234        671,029        0.91%        31.00%     
2013     0.20%        62        20.623170        1,279        0.91%        30.87%     
2013     0.25%        5,150        20.488601        105,516        0.91%        30.81%     
2012     0.00%        23,801        17.177285        408,837        0.37%        16.60%     
2012     0.10%        70,527        15.895030        1,121,029        0.37%        16.48%     
2012     0.20%        14,947        15.758064        235,536        0.37%        16.37%     
2012     0.25%        35,172        15.663052        550,901        0.37%        16.31%     
2011     0.00%        67,433        14.731931        993,418        0.00%        -11.36%     
2011     0.10%        104,043        13.645891        1,419,759        0.00%        -11.45%     
2011     0.20%        10,523        13.541863        142,501        0.00%        -11.53%     
2011     0.25%        73,554        13.466974        990,550        0.00%        -11.58%     

Advisers Management Trust: Mid Cap Intrinsic Value Portfolio - Class I (AMRI)

2015     0.00%        2,587        16.429403        42,503        0.78%        -8.34%     
2015     0.20%        3,362        16.114653        54,177        0.78%        -8.52%     
2015     0.25%        301,718        16.036845        4,838,605        0.78%        -8.57%     
2014     0.00%        1,798        17.923567        32,227        1.03%        13.84%     
2014     0.20%        9,945        17.615410        175,185        1.03%        13.61%     
2014     0.25%        295,953        17.539126        5,190,757        1.03%        13.55%     
2013     0.00%        7,765        15.745045        122,260        1.23%        37.05%     
2013     0.20%        8,149        15.505325        126,353        1.23%        36.78%     
2013     0.25%        331,776        15.445906        5,124,581        1.23%        36.71%     
2012     0.00%        17,798        11.488526        204,473        0.61%        15.53%     
2012     0.20%        18,058        11.336243        204,710        0.61%        15.30%     
2012     0.25%        345,057        11.298448        3,898,609        0.61%        15.24%     
2011     0.00%        18,864        9.944286        187,589        0.63%        -6.50%     
2011     0.20%        18,967        9.832161        186,487        0.63%        -6.68%     
2011     0.25%        383,249        9.804295        3,757,486        0.63%        -6.73%     

Socially Responsive Portfolio - I Class Shares (AMSRS)

2015     0.00%        68,268        29.142833        1,989,523        0.51%        -0.46%     
2014     0.00%        85,955        29.278575        2,516,640        0.35%        10.38%     
2013     0.00%        113,615        26.524850        3,013,621        0.70%        37.60%     
2012     0.00%        122,284        19.276454        2,357,202        0.22%        10.98%     
2011     0.00%        149,636        17.369356        2,599,081        0.33%        -3.08%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Capital Appreciation Fund/VA - Non-Service Shares (OVGR)

2015     0.00%        1,764      $ 30.617408      $ 54,009        0.09%        3.54%     
2015     0.20%        146,084        17.503405        2,556,967        0.09%        3.34%     
2015     0.25%        553,168        17.371869        9,609,562        0.09%        3.28%     
2014     0.00%        1,841        29.569631        54,438        0.46%        15.41%     
2014     0.10%        96,346        21.942069        2,114,031        0.46%        15.29%     
2014     0.20%        164,915        16.938249        2,793,371        0.46%        15.18%     
2014     0.25%        651,421        16.819373        10,956,493        0.46%        15.12%     
2013     0.00%        5,440        25.621769        139,382        0.96%        29.74%     
2013     0.10%        99,103        19.031580        1,886,087        0.96%        29.61%     
2013     0.20%        198,892        14.706184        2,924,942        0.96%        29.48%     
2013     0.25%        858,585        14.610271        12,544,160        0.96%        29.42%     
2012     0.00%        5,166        19.748680        102,022        0.68%        14.12%     
2012     0.10%        176,975        14.683780        2,598,662        0.68%        14.00%     
2012     0.20%        230,041        11.357880        2,612,778        0.68%        13.89%     
2012     0.25%        1,112,014        11.289439        12,554,014        0.68%        13.83%     
2011     0.00%        4,576        17.305412        79,190        0.45%        -1.15%     
2011     0.10%        243,193        12.880034        3,132,334        0.45%        -1.25%     
2011     0.20%        241,095        9.972672        2,404,361        0.45%        -1.35%     
2011     0.25%        1,320,255        9.917548        13,093,692        0.45%        -1.40%     

Global Securities Fund/VA - Non-Service Shares (OVGS)

2015     0.00%        1,474,499        23.387496        34,484,839        1.28%        3.94%     
2015     0.10%        153,816        23.023933        3,541,449        1.28%        3.84%     
2015     0.20%        375,799        22.665980        8,517,853        1.28%        3.74%     
2015     0.25%        1,247,135        22.489148        28,047,004        1.28%        3.68%     
2014     0.00%        1,535,969        22.500054        34,559,385        1.18%        2.29%     
2014     0.10%        147,460        22.172449        3,269,549        1.18%        2.19%     
2014     0.20%        535,177        21.849570        11,693,387        1.18%        2.09%     
2014     0.25%        1,239,304        21.689951        26,880,443        1.18%        2.04%     
2013     0.00%        655,038        21.995829        14,408,104        1.38%        27.31%     
2013     0.10%        160,123        21.697248        3,474,228        1.38%        27.18%     
2013     0.20%        555,413        21.402683        11,887,328        1.38%        27.05%     
2013     0.25%        1,347,166        21.256957        28,636,650        1.38%        26.99%     
2012     0.00%        615,521        17.277884        10,634,900        2.20%        21.26%     
2012     0.10%        182,390        17.060376        3,111,642        2.20%        21.14%     
2012     0.20%        561,713        16.845594        9,462,389        2.20%        21.02%     
2012     0.25%        1,374,849        16.739250        23,013,941        2.20%        20.96%     
2011     0.00%        655,037        14.248076        9,333,017        1.28%        -8.29%     
2011     0.10%        266,961        14.082821        3,759,564        1.28%        -8.38%     
2011     0.20%        588,688        13.919457        8,194,217        1.28%        -8.47%     
2011     0.25%        1,532,798        13.838516        21,211,650        1.28%        -8.52%     

International Growth Fund/VA - Non-Service Shares (OVIG)

2015     0.00%        51,431        11.112638        571,534        1.20%        3.43%     
2015     0.20%        103,952        11.053502        1,149,034        1.20%        3.23%     
2015     0.25%        412,279        11.038776        4,551,056        1.20%        3.17%     
2014     0.00%        13,154        10.743878        141,325        1.26%        -7.22%     
2014     0.20%        42,945        10.708102        459,859        1.26%        -7.40%     
2014     0.25%        234,504        10.699175        2,508,999        1.26%        -7.45%     
2013     0.00%        8,286        11.579816        95,950        0.00%        15.80%      5/1/2013
2013     0.25%        43,041        11.560498        497,575        0.00%        15.60%      5/1/2013

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Main Street Fund(R)/VA - Non-Service Shares (OVGI)

2015     0.00%        1,079,997      $ 24.170994      $ 26,104,601        0.93%        3.33%     
2015     0.20%        100,033        20.611117        2,061,792        0.93%        3.12%     
2015     0.25%        137,439        20.456165        2,811,475        0.93%        3.07%     
2014     0.00%        1,135,763        23.392433        26,568,260        0.83%        10.70%     
2014     0.10%        38,139        21.213986        809,080        0.83%        10.59%     
2014     0.20%        101,811        19.987148        2,034,912        0.83%        10.48%     
2014     0.25%        132,754        19.846809        2,634,743        0.83%        10.43%     
2013     0.00%        1,232,141        21.130785        26,036,107        1.10%        31.77%     
2013     0.10%        40,435        19.182117        775,629        1.10%        31.64%     
2013     0.20%        103,496        18.090869        1,872,333        1.10%        31.51%     
2013     0.25%        150,907        17.972825        2,712,225        1.10%        31.44%     
2012     0.00%        1,360,860        16.035812        21,822,495        0.95%        16.87%     
2012     0.10%        65,319        14.571543        951,799        0.95%        16.75%     
2012     0.20%        104,207        13.756324        1,433,505        0.95%        16.64%     
2012     0.25%        143,770        13.673391        1,965,823        0.95%        16.58%     
2011     0.00%        1,476,171        13.720956        20,254,477        0.86%        -0.01%     
2011     0.10%        78,409        12.480566        978,589        0.86%        -0.11%     
2011     0.20%        118,458        11.794128        1,397,109        0.86%        -0.21%     
2011     0.25%        149,681        11.728904        1,755,594        0.86%        -0.26%     

Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)

2015     0.00%        177,013        37.311330        6,604,590        0.86%        -5.90%     
2014     0.00%        181,616        39.650231        7,201,116        0.85%        11.93%     
2013     0.00%        188,218        35.423066        6,667,259        0.96%        41.01%     
2012     0.00%        174,944        25.120110        4,394,613        0.57%        17.99%     
2011     0.00%        194,582        21.290587        4,142,765        0.60%        -2.21%     

Discovery Mid Cap Growth Fund/VA - Non-Service Shares (OVAG)

2015     0.00%        803,479        26.129070        20,994,159        0.00%        6.61%     
2015     0.20%        124,046        14.214731        1,763,281        0.00%        6.39%     
2015     0.25%        190,155        14.107917        2,682,691        0.00%        6.34%     
2014     0.00%        849,184        24.509933        20,813,443        0.00%        5.78%     
2014     0.10%        40,296        19.435116        783,157        0.00%        5.68%     
2014     0.20%        124,383        13.360573        1,661,828        0.00%        5.57%     
2014     0.25%        261,739        13.266808        3,472,441        0.00%        5.52%     
2013     0.00%        936,477        23.169692        21,697,884        0.01%        35.98%     
2013     0.10%        44,406        18.390755        816,660        0.01%        35.85%     
2013     0.20%        125,659        12.655279        1,590,250        0.01%        35.71%     
2013     0.25%        316,259        12.572760        3,976,249        0.01%        35.64%     
2012     0.00%        1,048,321        17.038569        17,861,890        0.00%        16.45%     
2012     0.10%        88,192        13.537746        1,193,921        0.00%        16.33%     
2012     0.20%        111,690        9.325083        1,041,519        0.00%        16.21%     
2012     0.25%        338,977        9.268905        3,141,946        0.00%        16.16%     
2011     0.00%        1,159,802        14.632020        16,970,246        0.00%        1.10%     
2011     0.10%        129,990        11.637321        1,512,735        0.00%        0.99%     
2011     0.20%        172,529        8.024067        1,384,384        0.00%        0.89%     
2011     0.25%        348,755        7.979723        2,782,968        0.00%        0.84%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Global Strategic Income Fund/VA: Non-service Shares (OVSB)

2015     0.00%        1,411,021      $ 13.375110      $ 18,872,561        5.97%        -2.26%     
2014     0.00%        1,555,119        13.684412        21,280,889        4.50%        2.84%     
2013     0.00%        977,067        13.306658        13,001,496        2.82%        -0.13%     
2012     0.00%        140,055        13.324261        1,866,129        6.52%        13.53%     
2011     0.20%        164,077        11.642728        1,910,304        2.76%        0.65%     
2011     0.25%        23,951        11.619547        278,300        2.76%        0.60%     

All Asset Portfolio - Administrative Class (PMVAAA)

2015     0.00%        55,377        16.812343        931,017        3.21%        -8.99%     
2015     0.20%        807,140        16.424758        13,257,079        3.21%        -9.17%     
2015     0.25%        405,946        16.329325        6,628,824        3.21%        -9.21%     
2014     0.00%        72,319        18.472398        1,335,905        5.30%        0.47%     
2014     0.10%        67,637        18.276541        1,236,170        5.30%        0.37%     
2014     0.20%        892,177        18.082702        16,132,971        5.30%        0.27%     
2014     0.25%        481,742        17.986638        8,664,919        5.30%        0.22%     
2013     0.00%        76,642        18.385298        1,409,086        4.71%        0.27%     
2013     0.10%        67,026        18.208568        1,220,447        4.71%        0.17%     
2013     0.20%        884,021        18.033470        15,941,966        4.71%        0.07%     
2013     0.25%        438,349        17.946634        7,866,889        4.71%        0.02%     
2012     0.00%        69,786        18.335213        1,279,541        6.62%        14.95%     
2012     0.10%        113,326        18.177131        2,059,942        6.62%        14.83%     
2012     0.20%        819,406        18.020366        14,765,996        6.62%        14.72%     
2012     0.25%        417,817        17.942540        7,496,698        6.62%        14.66%     
2011     0.00%        19,444        15.951200        310,155        7.54%        1.95%     
2011     0.10%        94,917        15.829529        1,502,491        7.54%        1.85%     
2011     0.20%        10,041        15.708740        157,731        7.54%        1.75%     
2011     0.25%        87,183        15.648744        1,364,304        7.54%        1.70%     

CommodityRealReturn(R) Strategy Portfolio - Administrative Class (PMVRSA)

2015     0.00%        8,994        5.520425        49,651        2.61%        -25.70%     
2014     0.00%        4,998        7.430399        37,137        0.16%        -25.70%      5/1/2014

Foreign Bond Portfolio (Unhedged) - Administrative Class (PMVFBA)

2015     0.00%        112,389        12.082240        1,357,911        1.51%        -7.08%     
2015     0.20%        14,452        11.898194        171,953        1.51%        -7.27%     
2015     0.25%        34,107        11.852551        404,255        1.51%        -7.31%     
2014     0.00%        70,194        13.003154        912,743        2.13%        0.40%     
2014     0.20%        10,297        12.830742        132,118        2.13%        0.20%     
2014     0.25%        25,873        12.787931        330,862        2.13%        0.15%     
2013     0.00%        189,931        12.951148        2,459,824        1.83%        -6.47%     
2013     0.20%        16,214        12.805034        207,621        1.83%        -6.66%     
2013     0.25%        24,994        12.768718        319,141        1.83%        -6.71%     
2012     0.00%        120,480        13.847565        1,668,355        5.68%        5.50%     
2012     0.20%        8,978        13.718780        123,167        5.68%        5.29%     
2012     0.25%        24,563        13.686738        336,187        5.68%        5.24%     
2011     0.00%        171,174        13.125598        2,246,761        2.02%        8.52%     
2011     0.20%        6,368        13.029662        82,973        2.02%        8.31%     
2011     0.25%        28,274        13.005756        367,725        2.02%        8.25%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Long-Term U.S. Government Portfolio - Administrative Class (PMVLGA)

2015     0.00%        199      $ 15.065424      $ 2,998        2.05%        -1.40%     
2015     0.20%        14,719        14.895352        219,245        2.05%        -1.60%     
2015     0.25%        168,538        14.853079        2,503,308        2.05%        -1.65%     
2014     0.20%        8,460        15.137243        128,061        2.26%        23.76%     
2014     0.25%        159,473        15.101845        2,408,337        2.26%        23.70%     
2013     0.20%        9,699        12.231097        118,629        2.48%        -13.12%     
2013     0.25%        137,559        12.208622        1,679,406        2.48%        -13.17%     
2012     0.20%        7,044        14.078727        99,171        2.14%        4.23%     
2012     0.25%        22,192        14.059896        312,017        2.14%        4.18%     
2011     0.20%        83        13.507707        1,121        2.65%        27.59%     
2011     0.25%        30,544        13.496420        412,235        2.65%        27.52%     

Low Duration Portfolio - Administrative Class (PMVLDA)

2015     0.00%        505,841        15.388122        7,783,943        3.20%        0.31%     
2015     0.20%        1,007,738        14.983000        15,098,938        3.20%        0.11%     
2015     0.25%        1,846,299        14.883286        27,478,996        3.20%        0.06%     
2014     0.00%        545,813        15.340739        8,373,175        1.13%        0.85%     
2014     0.10%        91,354        15.152711        1,384,261        1.13%        0.75%     
2014     0.20%        1,232,779        14.966804        18,450,762        1.13%        0.65%     
2014     0.25%        2,445,685        14.874647        36,378,701        1.13%        0.60%     
2013     0.00%        599,017        15.211610        9,112,013        1.42%        -0.13%     
2013     0.10%        64,906        15.040207        976,200        1.42%        -0.23%     
2013     0.20%        1,009,790        14.870553        15,016,136        1.42%        -0.33%     
2013     0.25%        2,570,791        14.786404        38,012,754        1.42%        -0.38%     
2012     0.00%        560,741        15.231801        8,541,095        1.93%        5.86%     
2012     0.10%        92,267        15.075249        1,390,948        1.93%        5.75%     
2012     0.20%        753,896        14.920147        11,248,239        1.93%        5.64%     
2012     0.25%        2,019,223        14.843142        29,971,614        1.93%        5.59%     
2011     0.00%        543,092        14.389072        7,814,590        1.68%        1.11%     
2011     0.10%        143,040        14.255473        2,039,103        1.68%        1.01%     
2011     0.20%        1,287,722        14.122982        18,186,475        1.68%        0.91%     
2011     0.25%        2,461,331        14.057158        34,599,319        1.68%        0.86%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Real Return Portfolio - Administrative Class (PMVRRA)

2015     0.00%        264,569      $ 18.402490      $ 4,868,728        3.66%        -2.70%     
2015     0.10%        84,385        18.158587        1,532,312        3.66%        -2.80%     
2015     0.20%        1,106,267        17.917629        19,821,682        3.66%        -2.90%     
2015     0.25%        2,394,818        17.798281        42,623,644        3.66%        -2.95%     
2014     0.00%        229,487        18.914047        4,340,528        1.42%        3.09%     
2014     0.10%        663,184        18.682045        12,389,633        1.42%        2.99%     
2014     0.20%        1,304,101        18.452610        24,064,067        1.42%        2.89%     
2014     0.25%        3,010,962        18.338895        55,217,716        1.42%        2.83%     
2013     0.00%        200,378        18.346890        3,676,313        1.64%        -9.22%     
2013     0.10%        635,819        18.139980        11,533,744        1.64%        -9.31%     
2013     0.20%        1,459,266        17.935163        26,172,174        1.64%        -9.40%     
2013     0.25%        3,114,447        17.833569        55,541,705        1.64%        -9.44%     
2012     0.00%        209,319        20.209690        4,230,272        1.08%        8.75%     
2012     0.10%        815,660        20.001770        16,314,644        1.08%        8.65%     
2012     0.20%        1,601,513        19.795748        31,703,148        1.08%        8.54%     
2012     0.25%        3,264,904        19.693483        64,297,331        1.08%        8.48%     
2011     0.00%        156,159        18.582806        2,901,872        2.08%        11.67%     
2011     0.10%        960,484        18.410083        17,682,590        2.08%        11.56%     
2011     0.20%        1,815,470        18.238767        33,111,934        2.08%        11.45%     
2011     0.25%        3,258,425        18.153657        59,152,330        2.08%        11.39%     

Total Return Portfolio - Administrative Class (PMVTRA)

2015     0.00%        1,016,475        19.839262        20,166,114        4.31%        0.44%     
2015     0.20%        779,467        19.316551        15,056,614        4.31%        0.23%     
2015     0.25%        2,644,416        19.187876        50,740,726        4.31%        0.18%     
2014     0.00%        954,265        19.753234        18,849,820        1.89%        4.27%     
2014     0.10%        170,286        19.510917        3,322,436        1.89%        4.17%     
2014     0.20%        2,407,163        19.271323        46,389,216        1.89%        4.06%     
2014     0.25%        5,240,087        19.152556        100,361,060        1.89%        4.01%     
2013     0.00%        1,229,798        18.944143        23,297,469        2.20%        -1.96%     
2013     0.10%        7,535,646        18.730486        141,146,312        2.20%        -2.05%     
2013     0.20%        6,310,698        18.519021        116,867,949        2.20%        -2.15%     
2013     0.25%        7,595,063        18.414109        139,856,318        2.20%        -2.20%     
2012     0.00%        1,063,702        19.322000        20,552,850        2.57%        9.60%     
2012     0.10%        7,558,546        19.123203        144,543,610        2.57%        9.49%     
2012     0.20%        5,681,063        18.926252        107,521,230        2.57%        9.38%     
2012     0.25%        8,600,586        18.828467        161,935,850        2.57%        9.33%     
2011     0.00%        607,433        17.629489        10,708,733        2.62%        3.60%     
2011     0.10%        7,698,175        17.465627        134,453,453        2.62%        3.50%     
2011     0.20%        5,099,199        17.303112        88,232,011        2.62%        3.40%     
2011     0.25%        8,572,880        17.222369        147,645,303        2.62%        3.35%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Pioneer Emerging Markets VCT Portfolio - Class I Shares (PIVEMI)

2015     0.00%        92,102      $ 5.511041      $ 507,578        3.57%        -15.36%     
2015     0.20%        7,102        5.420668        38,498        3.57%        -15.53%     
2015     0.25%        21,153        5.398275        114,190        3.57%        -15.57%     
2014     0.00%        82,712        6.510861        538,526        0.61%        -12.56%     
2014     0.20%        22,556        6.416942        144,741        0.61%        -12.73%     
2014     0.25%        22,013        6.393641        140,743        0.61%        -12.77%     
2013     0.00%        89,831        7.445671        668,852        1.13%        -1.97%     
2013     0.20%        21,081        7.352970        155,008        1.13%        -2.16%     
2013     0.25%        87,169        7.329950        638,944        1.13%        -2.21%     
2012     0.00%        86,867        7.594935        659,749        0.49%        11.97%     
2012     0.20%        19,785        7.515397        148,692        0.49%        11.74%     
2012     0.25%        102,575        7.495622        768,863        0.49%        11.69%     
2011     0.00%        107,824        6.783221        731,394        0.27%        -23.40%     
2011     0.20%        466        6.725660        3,134        0.27%        -23.55%     
2011     0.25%        129,785        6.711325        871,029        0.27%        -23.59%     

Pioneer High Yield VCT Portfolio - Class I Shares (PIHYB1)

2015     0.00%        17,694        26.222408        463,979        4.78%        -3.94%     
2015     0.20%        65,945        25.532049        1,683,711        4.78%        -4.13%     
2015     0.25%        70,716        25.362127        1,793,508        4.78%        -4.18%     
2014     0.00%        18,863        27.296605        514,896        4.72%        0.08%     
2014     0.10%        41,898        26.962029        1,129,655        4.72%        -0.02%     
2014     0.20%        59,086        26.631228        1,573,533        4.72%        -0.12%     
2014     0.25%        85,105        26.467236        2,252,494        4.72%        -0.17%     
2013     0.00%        26,218        27.273471        715,056        5.22%        12.05%     
2013     0.10%        39,233        26.966149        1,057,963        5.22%        11.94%     
2013     0.20%        65,562        26.661993        1,748,014        5.22%        11.83%     
2013     0.25%        107,242        26.511090        2,843,102        5.22%        11.77%     
2012     0.00%        16,595        24.339598        403,916        5.53%        16.05%     
2012     0.10%        43,266        24.089443        1,042,254        5.53%        15.93%     
2012     0.20%        103,936        23.841601        2,478,001        5.53%        15.81%     
2012     0.25%        156,382        23.718546        3,709,154        5.53%        15.76%     
2011     0.00%        12,611        20.973952        264,503        5.26%        -1.67%     
2011     0.10%        73,631        20.779227        1,529,995        5.26%        -1.76%     
2011     0.20%        166,152        20.586095        3,420,421        5.26%        -1.86%     
2011     0.25%        228,056        20.490135        4,672,898        5.26%        -1.91%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VT Growth & Income Fund: Class IB (PVGIB)

2015     0.00%        41,318      $ 22.730794      $ 939,191        1.81%        -7.53%     
2014     0.00%        44,044        24.581005        1,082,646        1.18%        10.73%     
2013     0.00%        44,765        22.198468        993,714        1.71%        35.68%     
2012     0.00%        46,906        16.361335        767,445        1.65%        19.14%     
2011     0.00%        50,439        13.733218        692,690        1.21%        -4.64%     

VT International Equity Fund: Class IB (PVTIGB)

2015     0.00%        45,227        21.491137        971,980        1.16%        0.14%     
2014     0.00%        51,810        21.460987        1,111,894        0.87%        -6.78%     
2013     0.00%        49,608        23.021172        1,142,034        1.43%        28.07%     
2012     0.00%        53,095        17.975464        954,407        2.17%        21.92%     
2011     0.00%        59,303        14.744148        874,372        3.34%        -16.93%     

VT Small Cap Value Fund: Class IB (PVTSCB)

2015     0.00%        4,782        13.867247        66,313        0.82%        -4.24%     
2015     0.20%        7,010        13.639945        95,616        0.82%        -4.43%     
2015     0.25%        49,353        13.583693        670,396        0.82%        -4.48%     
2014     0.00%        2,851        14.481041        41,285        0.32%        3.43%     
2014     0.20%        6,191        14.272216        88,359        0.32%        3.23%     
2014     0.25%        42,688        14.220451        607,043        0.32%        3.18%     
2013     0.20%        188        13.825972        2,599        0.78%        39.33%     
2013     0.25%        532        13.782720        7,332        0.78%        39.26%     
2012     0.20%        170        9.923349        1,687        0.38%        17.25%     
2012     0.25%        129        9.897245        1,277        0.38%        17.19%     
2011     0.00%        2        8.535717        17        0.48%        -4.73%     
2011     0.20%        112        8.463270        948        0.48%        -4.92%     
2011     0.25%        1,139        8.445238        9,619        0.48%        -4.96%     

VT Voyager Fund: Class IB (PVTVB)

2015     0.00%        53,180        25.358465        1,348,563        1.14%        -6.11%     
2014     0.00%        59,171        27.009337        1,598,169        0.74%        9.72%     
2013     0.00%        80,179        24.616350        1,973,714        0.75%        43.72%     
2012     0.00%        66,439        17.127486        1,137,933        0.33%        14.23%     
2011     0.00%        103,328        14.994106        1,549,311        0.00%        -17.85%     

VI Growth and Income Fund - Series I Shares (ACGI)

2015     0.00%        850        16.634610        14,139        2.87%        -3.06%     
2015     0.20%        55,211        16.447283        908,071        2.87%        -3.26%     
2015     0.25%        232,186        16.400762        3,808,027        2.87%        -3.30%     
2014     0.00%        727        17.160094        12,475        1.85%        10.28%     
2014     0.20%        58,679        17.000821        997,591        1.85%        10.06%     
2014     0.25%        252,618        16.961219        4,284,709        1.85%        10.00%     
2013     0.00%        3,812        15.560488        59,317        1.50%        34.08%     
2013     0.20%        49,108        15.446928        758,568        1.50%        33.81%     
2013     0.25%        233,125        15.418659        3,594,475        1.50%        33.75%     
2012     0.00%        3,942        11.605231        45,748        1.77%        14.63%     
2012     0.20%        53,399        11.543577        616,415        1.77%        14.40%     
2012     0.25%        248,897        11.528209        2,869,337        1.77%        14.35%     
2011     0.00%        3,029        10.123727        30,665        1.62%        -2.01%     
2011     0.20%        6,745        10.090153        68,058        1.62%        -2.20%     
2011     0.25%        167,059        10.081770        1,684,250        1.62%        -2.25%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VI American Franchise Fund - Series I Shares (ACEG)

2015     0.00%        85,010      $ 15.558361      $ 1,322,616        0.00%        5.01%     
2014     0.00%        74,837        14.816518        1,108,824        0.04%        8.44%     
2013     0.00%        86,923        13.663384        1,187,662        0.43%        40.14%     
2012     0.00%        82,490        9.750071        804,283        0.00%        -2.50%      4/27/2012

VI Value Opportunities Fund - Series I Shares (AVBVI)

2015     0.25%        496        19.207244        9,527        2.85%        -10.63%     
2014     0.10%        19,122        21.892482        418,628        1.44%        6.51%     
2014     0.25%        5,847        21.491385        125,660        1.44%        6.35%     
2013     0.10%        20,420        20.553942        419,711        1.18%        33.62%     
2013     0.25%        5,454        20.207669        110,213        1.18%        33.42%     
2012     0.10%        26,222        15.382303        403,355        1.42%        17.59%     
2012     0.20%        7,061        15.224250        107,498        1.42%        17.47%     
2012     0.25%        11,903        15.145833        180,281        1.42%        17.41%     
2011     0.10%        31,813        13.081814        416,172        0.88%        -3.15%     
2011     0.20%        10,120        12.960374        131,159        0.88%        -3.24%     
2011     0.25%        12,226        12.900080        157,716        0.88%        -3.29%     

VI High Yield Fund - Series I Shares (AVHY1)

2015     0.00%        13,525        13.248653        179,188        5.24%        -3.17%     
2015     0.20%        795,162        13.099508        10,416,231        5.24%        -3.36%     
2015     0.25%        245,416        13.062456        3,205,736        5.24%        -3.41%     
2014     0.00%        25,380        13.681814        347,244        4.12%        1.73%     
2014     0.20%        804,677        13.554885        10,907,304        4.12%        1.52%     
2014     0.25%        313,696        13.523295        4,242,204        4.12%        1.47%     
2013     0.00%        27,374        13.449619        368,170        4.58%        7.01%     
2013     0.20%        491,572        13.351532        6,563,239        4.58%        6.79%     
2013     0.25%        262,672        13.327070        3,500,648        4.58%        6.74%     
2012     0.00%        44,319        12.568827        557,038        5.34%        17.17%     
2012     0.20%        480,979        12.502127        6,013,261        5.34%        16.94%     
2012     0.25%        265,785        12.485469        3,318,450        5.34%        16.88%     
2011     0.00%        43,041        10.726705        461,688        4.07%        0.96%     
2011     0.20%        391,627        10.691182        4,186,956        4.07%        0.76%     
2011     0.25%        215,058        10.682283        2,297,310        4.07%        0.71%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VI International Growth Fund - Series I Shares (AVIE)

2015     0.00%        61,193      $ 23.681390      $ 1,449,135        1.31%        -2.34%     
2015     0.10%        183,404        23.406805        4,292,902        1.31%        -2.44%     
2015     0.20%        626,961        23.135485        14,505,047        1.31%        -2.54%     
2015     0.25%        1,166,673        23.000962        26,834,601        1.31%        -2.59%     
2014     0.00%        66,676        24.249478        1,616,858        1.60%        0.33%     
2014     0.10%        82,501        23.992303        1,979,389        1.60%        0.23%     
2014     0.20%        955,052        23.737932        22,670,959        1.60%        0.13%     
2014     0.25%        1,371,702        23.611714        32,388,235        1.60%        0.08%     
2013     0.00%        54,300        24.169304        1,312,393        1.27%        19.01%     
2013     0.10%        70,645        23.936914        1,691,023        1.27%        18.89%     
2013     0.20%        885,594        23.706829        20,994,626        1.27%        18.78%     
2013     0.25%        1,326,445        23.592587        31,294,269        1.27%        18.72%     
2012     0.00%        48,490        20.308142        984,742        1.49%        15.53%     
2012     0.10%        81,123        20.132993        1,633,249        1.49%        15.42%     
2012     0.20%        840,837        19.959406        16,782,607        1.49%        15.30%     
2012     0.25%        1,152,480        19.873147        22,903,404        1.49%        15.24%     
2011     0.00%        43,155        17.577932        758,576        1.56%        -6.74%     
2011     0.10%        96,833        17.443806        1,689,136        1.56%        -6.83%     
2011     0.20%        717,058        17.310748        12,412,810        1.56%        -6.93%     
2011     0.25%        1,182,001        17.244564        20,383,092        1.56%        -6.97%     

VI Mid Cap Core Equity Fund: Series I Shares (AVMCCI)

2015     0.00%        6,297        19.364339        121,937        0.34%        -4.03%     
2015     0.20%        1,144        18.957764        21,688        0.34%        -4.22%     
2015     0.25%        13,713        18.894701        259,103        0.34%        -4.27%     
2014     0.00%        6,784        20.177063        136,881        0.04%        4.43%     
2014     0.20%        952        19.792988        18,843        0.04%        4.23%     
2014     0.25%        14,528        19.737015        286,739        0.04%        4.17%     
2013     0.00%        5,832        19.320302        112,676        0.71%        28.81%     
2013     0.20%        852        18.990489        16,180        0.71%        28.56%     
2013     0.25%        64,646        18.946248        1,224,799        0.71%        28.49%     
2012     0.00%        1,022        14.998642        15,329        0.10%        10.96%     
2012     0.20%        1,119        14.772087        16,530        0.10%        10.73%     
2012     0.25%        64,406        14.745046        949,669        0.10%        10.68%     
2011     0.00%        701        13.517743        9,476        0.39%        -6.38%     
2011     0.20%        493        13.340285        6,577        0.39%        -6.56%     
2011     0.25%        17,689        13.322532        235,662        0.39%        -6.61%     

VI Small Cap Equity Fund - Series I Shares (AVSCE)

2015     0.20%        53        10.029329        532        0.00%        -5.71%     
2015     0.25%        19,944        10.020962        199,858        0.00%        -5.75%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Micro-Cap Portfolio - Investment Class (ROCMC)

2015     0.00%        29,450      $ 27.170163      $ 800,161        0.00%        -12.46%     
2015     0.20%        58,331        26.455522        1,543,177        0.00%        -12.63%     
2015     0.25%        174,054        26.279830        4,574,110        0.00%        -12.68%     
2014     0.00%        35,744        31.036487        1,109,368        0.00%        -3.58%     
2014     0.10%        47,661        30.656252        1,461,108        0.00%        -3.67%     
2014     0.20%        62,640        30.280703        1,896,783        0.00%        -3.77%     
2014     0.25%        226,349        30.094665        6,811,897        0.00%        -3.82%     
2013     0.00%        38,195        32.188216        1,229,429        0.41%        20.99%     
2013     0.10%        64,300        31.825701        2,046,393        0.41%        20.87%     
2013     0.20%        118,915        31.467281        3,741,932        0.41%        20.74%     
2013     0.25%        582,002        31.289594        18,210,606        0.41%        20.68%     
2012     0.00%        67,566        26.604902        1,797,587        0.00%        7.60%     
2012     0.10%        93,666        26.331578        2,466,374        0.00%        7.50%     
2012     0.20%        378,057        26.061067        9,852,569        0.00%        7.39%     
2012     0.25%        990,487        25.926857        25,680,215        0.00%        7.34%     
2011     0.00%        47,676        24.724626        1,178,771        2.44%        -12.10%     
2011     0.10%        129,742        24.495169        3,178,052        2.44%        -12.19%     
2011     0.20%        504,985        24.267837        12,254,894        2.44%        -12.28%     
2011     0.25%        1,255,233        24.154962        30,320,105        2.44%        -12.32%     

Small-Cap Portfolio - Investment Class (ROCSC)

2012     0.20%        161,683        12.886131        2,083,468        0.10%        12.27%     
2012     0.25%        22,966        12.853991        295,205        0.10%        12.22%     
2011     0.20%        179,386        11.477349        2,058,876        0.51%        -3.48%     
2011     0.25%        26,186        11.454460        299,946        0.51%        -3.52%     

Variable Fund - Multi-Hedge Strategies (RVARS)

2015     0.00%        32,120        10.654733        342,230        0.72%        1.85%     
2014     0.00%        75,501        10.461335        789,841        0.00%        4.66%     
2013     0.00%        16,822        9.995608        168,146        0.00%        -0.04%      5/1/2013

Equity Income Portfolio - II (TREI2)

2015     0.00%        68,286        25.143121        1,716,923        1.54%        -7.11%     
2015     0.20%        795,403        24.481885        19,472,965        1.54%        -7.29%     
2015     0.25%        1,243,538        24.319360        30,242,048        1.54%        -7.34%     
2014     0.00%        90,419        27.066173        2,447,296        1.51%        7.10%     
2014     0.10%        87,057        26.734651        2,327,439        1.51%        7.00%     
2014     0.20%        805,198        26.407148        21,262,983        1.51%        6.89%     
2014     0.25%        1,825,196        26.244959        47,902,194        1.51%        6.84%     
2013     0.00%        91,799        25.271092        2,319,861        1.33%        29.41%     
2013     0.10%        88,850        24.986539        2,220,054        1.33%        29.28%     
2013     0.20%        769,502        24.705147        19,010,660        1.33%        29.15%     
2013     0.25%        1,948,099        24.565685        47,856,386        1.33%        29.08%     
2012     0.00%        86,712        19.528615        1,693,365        1.93%        16.92%     
2012     0.10%        120,639        19.328030        2,331,714        1.93%        16.81%     
2012     0.20%        731,656        19.129466        13,996,189        1.93%        16.69%     
2012     0.25%        1,843,354        19.030987        35,080,846        1.93%        16.63%     
2011     0.00%        77,285        16.702169        1,290,827        1.49%        -1.02%     
2011     0.10%        170,630        16.547192        2,823,447        1.49%        -1.12%     
2011     0.20%        1,220,543        16.393623        20,009,122        1.49%        -1.22%     
2011     0.25%        2,081,555        16.317395        33,965,555        1.49%        -1.27%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Health Sciences Portfolio - II (TRHS2)

2015     0.00%        497,159      $ 34.658956      $ 17,231,012        0.00%        12.47%     
2015     0.20%        441,603        34.109409        15,062,817        0.00%        12.25%     
2015     0.25%        60,934        33.973395        2,070,135        0.00%        12.19%     
2014     0.00%        459,906        30.816119        14,172,518        0.00%        31.22%     
2014     0.20%        489,466        30.388207        14,873,994        0.00%        30.96%     
2014     0.25%        69,008        30.282174        2,089,712        0.00%        30.90%     
2013     0.00%        400,032        23.483805        9,394,273        0.00%        50.51%     
2013     0.20%        436,725        23.204014        10,133,773        0.00%        50.21%     
2013     0.25%        61,756        23.134613        1,428,701        0.00%        50.14%     
2012     0.00%        284,958        15.602728        4,446,122        0.00%        31.00%     
2012     0.20%        350,332        15.447653        5,411,807        0.00%        30.74%     
2012     0.25%        49,763        15.409140        766,805        0.00%        30.67%     
2011     0.00%        187,535        11.910614        2,233,657        0.00%        10.39%     
2011     0.20%        267,658        11.815879        3,162,615        0.00%        10.17%     
2011     0.25%        39,071        11.792318        460,738        0.00%        10.11%     

Limited-Term Bond Portfolio (TRLT1)

2015     0.00%        32,416        10.485003        339,882        1.15%        0.30%     
2015     0.20%        149,673        10.378811        1,553,428        1.15%        0.10%     
2015     0.25%        2,136,850        10.352368        22,121,458        1.15%        0.05%     
2014     0.00%        42,914        10.453199        448,589        1.25%        0.64%     
2014     0.20%        102,490        10.368069        1,062,623        1.25%        0.44%     
2014     0.25%        1,509,078        10.346826        15,614,167        1.25%        0.39%     
2013     0.00%        30,577        10.387051        317,605        1.44%        0.13%     
2013     0.20%        32,627        10.323098        336,812        1.44%        -0.07%     
2013     0.25%        1,352,892        10.307121        13,944,422        1.44%        -0.12%     
2012     0.00%        2,310        10.373567        23,963        2.05%        2.47%     
2012     0.20%        25,459        10.330359        263,001        2.05%        2.27%     
2012     0.25%        203,070        10.319545        2,095,590        2.05%        2.22%     
2011     0.00%        1,539        10.123073        15,579        2.33%        1.60%     
2011     0.20%        12,453        10.101163        125,790        2.33%        1.40%     
2011     0.25%        25,033        10.095672        252,725        2.33%        1.35%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Mid-Cap Growth Portfolio - II (TRMCG2)

2015     0.20%        18,288      $ 47.433862      $ 867,470        0.00%        6.06%     
2015     0.25%        423,845        47.118947        19,971,130        0.00%        6.01%     
2014     0.10%        100,601        45.278398        4,555,052        0.00%        12.71%     
2014     0.20%        152,909        44.723754        6,838,665        0.00%        12.60%     
2014     0.25%        517,115        44.449051        22,985,271        0.00%        12.54%     
2013     0.10%        60,960        40.172418        2,448,911        0.00%        36.26%     
2013     0.20%        160,278        39.720006        6,366,243        0.00%        36.12%     
2013     0.25%        546,346        39.495765        21,578,353        0.00%        36.06%     
2012     0.10%        89,523        29.482112        2,639,327        0.00%        13.50%     
2012     0.20%        171,631        29.179226        5,008,060        0.00%        13.39%     
2012     0.25%        553,994        29.028993        16,081,888        0.00%        13.33%     
2011     0.10%        117,041        25.974820        3,040,119        0.00%        -1.62%     
2011     0.20%        205,268        25.733750        5,282,315        0.00%        -1.72%     
2011     0.25%        689,988        25.614079        17,673,407        0.00%        -1.77%     

New America Growth Portfolio (TRNAG1)

2015     0.00%        163,959        28.024093        4,594,802        0.00%        8.60%     
2015     0.20%        456,200        27.378063        12,489,872        0.00%        8.38%     
2015     0.25%        908,828        27.218881        24,737,281        0.00%        8.33%     
2014     0.00%        233,907        25.804892        6,035,945        0.00%        9.33%     
2014     0.10%        94,932        25.531238        2,423,731        0.00%        9.22%     
2014     0.20%        414,559        25.260493        10,471,965        0.00%        9.12%     
2014     0.25%        962,458        25.126185        24,182,898        0.00%        9.06%     
2013     0.00%        270,582        23.601929        6,386,257        0.00%        38.01%     
2013     0.10%        82,829        23.375000        1,936,128        0.00%        37.87%     
2013     0.20%        377,638        23.150264        8,742,419        0.00%        37.73%     
2013     0.25%        1,120,051        23.038679        25,804,495        0.00%        37.66%     
2012     0.00%        180,354        17.101805        3,084,379        0.56%        13.12%     
2012     0.10%        111,088        16.954305        1,883,420        0.56%        13.01%     
2012     0.20%        373,039        16.808089        6,270,073        0.56%        12.89%     
2012     0.25%        1,386,355        16.735434        23,201,253        0.56%        12.84%     
2011     0.00%        105,394        15.118123        1,593,359        0.22%        -1.07%     
2011     0.10%        110,249        15.002759        1,654,039        0.22%        -1.17%     
2011     0.20%        247,318        14.888293        3,682,143        0.22%        -1.27%     
2011     0.25%        1,020,263        14.831357        15,131,885        0.22%        -1.32%     

Personal Strategy Balanced Portfolio (TRPSB1)

2015     0.00%        2,097        16.335242        34,255        1.73%        -0.05%     
2015     0.20%        21,243        16.040261        340,743        1.73%        -0.25%     
2015     0.25%        208,521        15.967340        3,329,526        1.73%        -0.30%     
2014     0.00%        37,513        16.343094        613,078        1.68%        5.20%     
2014     0.20%        28,527        16.080089        458,717        1.68%        4.99%     
2014     0.25%        189,914        16.015007        3,041,474        1.68%        4.94%     
2013     0.00%        36,734        15.535370        570,676        1.53%        17.93%     
2013     0.20%        39,811        15.315966        609,744        1.53%        17.69%     
2013     0.25%        174,269        15.261599        2,659,624        1.53%        17.63%     
2012     0.00%        31,059        13.173531        409,157        1.90%        15.14%     
2012     0.20%        28,866        13.013475        375,647        1.90%        14.91%     
2012     0.25%        246,963        12.973754        3,204,037        1.90%        14.86%     
2011     0.00%        26,377        11.440995        301,779        2.23%        -0.32%     
2011     0.20%        4,926        11.324676        55,785        2.23%        -0.52%     
2011     0.25%        230,100        11.295758        2,599,154        2.23%        -0.57%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Blue Chip Growth Portfolio (TRBCGP)

2015     0.00%        490,998      $ 17.370164      $ 8,528,716        0.00%        11.05%     
2015     0.20%        335,540        17.260650        5,791,639        0.00%        10.83%     
2015     0.25%        1,599,007        17.233387        27,556,306        0.00%        10.77%     
2014     0.00%        386,335        15.641455        6,042,842        0.00%        9.17%     
2014     0.20%        222,445        15.573952        3,464,348        0.00%        8.95%     
2014     0.25%        1,167,901        15.557128        18,169,185        0.00%        8.89%     
2013     0.00%        3,054        14.327937        43,758        0.08%        41.15%     
2013     0.20%        58,866        14.294661        841,470        0.08%        40.87%     
2013     0.25%        516,728        14.286363        7,382,164        0.08%        40.80%     
2012     0.20%        7,713        10.147317        78,266        0.14%        1.47%      11/1/2012
2012     0.25%        174        10.146488        1,765        0.14%        1.46%      11/1/2012

VIP Trust Emerging Markets Fund - Initial Class (VWEM)

2015     0.00%        167,094        31.678009        5,293,205        0.58%        -13.99%     
2015     0.20%        48,410        39.086476        1,892,176        0.58%        -14.16%     
2015     0.25%        23,347        38.792637        905,692        0.58%        -14.21%     
2014     0.00%        183,449        36.831198        6,756,646        0.51%        -0.41%     
2014     0.10%        73,835        49.606579        3,662,702        0.51%        -0.51%     
2014     0.20%        49,271        45.535927        2,243,601        0.51%        -0.61%     
2014     0.25%        29,770        45.216234        1,346,087        0.51%        -0.66%     
2013     0.00%        198,610        36.984403        7,345,472        1.64%        12.02%     
2013     0.10%        69,802        49.862781        3,480,522        1.64%        11.91%     
2013     0.20%        50,086        45.816921        2,294,786        1.64%        11.80%     
2013     0.25%        35,687        45.518029        1,624,402        1.64%        11.74%     
2012     0.00%        233,193        33.015883        7,699,073        0.00%        29.81%     
2012     0.10%        100,026        44.556901        4,456,849        0.00%        29.68%     
2012     0.20%        51,472        40.982513        2,109,452        0.00%        29.55%     
2012     0.25%        36,430        40.735521        1,483,995        0.00%        29.48%     
2011     0.00%        259,894        25.434462        6,610,264        1.02%        -25.74%     
2011     0.10%        132,103        34.359714        4,539,021        1.02%        -25.81%     
2011     0.20%        61,605        31.635035        1,948,876        1.02%        -25.89%     
2011     0.25%        47,069        31.460137        1,480,797        1.02%        -25.92%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VIP Trust Global Hard Assets Fund - Initial Class (VWHA)

2015     0.00%        247,299      $ 22.538855      $ 5,573,836        0.03%        -33.45%     
2015     0.10%        42,287        31.136811        1,316,682        0.03%        -33.51%     
2015     0.20%        352,123        26.313569        9,265,613        0.03%        -33.58%     
2015     0.25%        250,127        26.115762        6,532,257        0.03%        -33.61%     
2014     0.00%        228,126        33.865332        7,725,563        0.10%        -19.10%     
2014     0.10%        46,249        46.830973        2,165,886        0.10%        -19.18%     
2014     0.20%        295,856        39.616337        11,720,731        0.10%        -19.26%     
2014     0.25%        239,662        39.338254        9,427,885        0.10%        -19.30%     
2013     0.00%        248,878        41.861897        10,418,505        0.72%        10.53%     
2013     0.10%        175,802        57.947139        10,187,223        0.72%        10.42%     
2013     0.20%        262,074        49.069131        12,859,743        0.72%        10.31%     
2013     0.25%        191,138        48.749119        9,317,809        0.72%        10.26%     
2012     0.00%        252,881        37.872414        9,577,214        0.60%        3.39%     
2012     0.10%        250,656        52.477156        13,153,714        0.60%        3.28%     
2012     0.20%        277,367        44.481659        12,337,744        0.60%        3.18%     
2012     0.25%        175,480        44.213670        7,758,615        0.60%        3.13%     
2011     0.00%        273,569        36.631842        10,021,336        1.14%        -16.45%     
2011     0.10%        374,493        50.809106        19,027,655        1.14%        -16.53%     
2011     0.20%        260,697        43.110971        11,238,901        1.14%        -16.62%     
2011     0.25%        188,442        42.872735        8,079,024        1.14%        -16.66%     

Variable Insurance Fund - Balanced Portfolio (VVB)

2015     0.20%        430,440        16.064907        6,914,979        2.42%        -0.11%     
2015     0.25%        59,393        16.000800        950,336        2.42%        -0.16%     
2014     0.20%        388,098        16.082364        6,241,533        2.09%        9.62%     
2014     0.25%        54,717        16.026202        876,906        2.09%        9.57%     
2013     0.20%        366,739        14.670654        5,380,301        2.15%        19.64%     
2013     0.25%        51,859        14.626745        758,528        2.15%        19.59%     
2012     0.20%        325,615        12.261822        3,992,633        2.42%        12.34%     
2012     0.25%        46,252        12.231242        565,719        2.42%        12.28%     
2011     0.20%        278,075        10.915265        3,035,262        2.26%        3.49%     
2011     0.25%        40,591        10.893500        442,178        2.26%        3.44%     

Insurance Fund - Capital Growth Portfolio (VVCG)

2015     0.20%        893,784        9.927016        8,872,608        0.00%        -0.73%      5/1/2015
2015     0.25%        122,876        9.923690        1,219,383        0.00%        -0.76%      5/1/2015

Variable Insurance Fund - Diversified Value Portfolio (VVDV)

2015     0.20%        828,627        14.854511        12,308,849        2.55%        -2.65%     
2015     0.25%        114,336        14.795230        1,691,627        2.55%        -2.70%     
2014     0.20%        942,404        15.258791        14,379,946        2.20%        9.61%     
2014     0.25%        132,866        15.205509        2,020,295        2.20%        9.56%     
2013     0.20%        1,045,033        13.920807        14,547,703        2.14%        29.14%     
2013     0.25%        147,775        13.879141        2,050,990        2.14%        29.07%     
2012     0.20%        1,103,096        10.779851        11,891,211        0.80%        16.27%     
2012     0.25%        156,691        10.752951        1,684,891        0.80%        16.21%     
2011     0.20%        208,325        9.271686        1,931,524        1.77%        3.71%     
2011     0.25%        30,410        9.253188        281,389        1.77%        3.66%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Variable Insurance Fund - International Portfolio (VVI)

2015     0.20%        762,470      $ 10.758675      $ 8,203,167        0.88%        -0.97%     
2015     0.25%        105,208        10.715763        1,127,384        0.88%        -1.02%     
2014     0.20%        346,821        10.863639        3,767,738        1.47%        -6.24%     
2014     0.25%        48,897        10.825716        529,345        1.47%        -6.29%     
2013     0.20%        410,243        11.586961        4,753,470        1.38%        23.01%     
2013     0.25%        58,011        11.552291        670,160        1.38%        22.95%     
2012     0.20%        412,707        9.419580        3,887,527        2.10%        19.90%     
2012     0.25%        58,623        9.396076        550,826        2.10%        19.84%     
2011     0.20%        440,376        7.856392        3,459,766        1.43%        -13.71%     
2011     0.25%        64,283        7.840712        504,024        1.43%        -13.75%     

Variable Insurance Fund - Mid-Cap Index Portfolio (VVMCI)

2015     0.20%        1,354,014        17.526964        23,731,755        0.79%        -1.63%     
2015     0.25%        186,831        17.457049        3,261,518        0.79%        -1.68%     
2014     0.20%        809,589        17.817703        14,425,016        0.93%        13.37%     
2014     0.25%        114,141        17.755513        2,026,632        0.93%        13.31%     
2013     0.20%        889,050        15.716890        13,973,101        0.97%        34.66%     
2013     0.25%        125,717        15.669871        1,969,969        0.97%        34.59%     
2012     0.20%        702,845        11.671636        8,203,351        1.08%        15.58%     
2012     0.25%        99,836        11.642534        1,162,344        1.08%        15.53%     
2011     0.20%        638,998        10.097955        6,452,573        1.09%        -2.23%     
2011     0.25%        93,276        10.077827        940,019        1.09%        -2.28%     

Variable Insurance Fund - REIT Index Portfolio (VVREI)

2015     0.20%        419,673        17.796476        7,468,700        1.86%        2.02%     
2015     0.25%        57,823        17.751371        1,026,438        1.86%        1.97%     
2014     0.20%        486,210        17.444189        8,481,539        2.98%        29.85%     
2014     0.25%        68,449        17.408681        1,191,607        2.98%        29.78%     
2013     0.20%        454,927        13.434239        6,111,598        1.23%        2.13%     
2013     0.25%        64,236        13.413578        861,635        1.23%        2.08%     
2012     0.20%        123,184        13.154393        1,620,411        2.07%        17.22%     
2012     0.25%        17,472        13.140722        229,595        2.07%        17.17%     
2011     0.20%        121,056        11.221552        1,358,436        2.09%        8.22%     
2011     0.25%        17,645        11.215498        197,897        2.09%        8.17%     

Variable Insurance Fund - Short-Term Investment-Grade Portfolio (VVSTC)

2015     0.20%        386,120        12.553205        4,847,044        1.68%        0.92%     
2015     0.25%        53,278        12.503127        666,142        1.68%        0.87%     
2014     0.20%        356,524        12.438437        4,434,601        1.51%        1.55%     
2014     0.25%        50,265        12.395005        623,035        1.51%        1.50%     
2013     0.20%        336,921        12.248086        4,126,637        2.05%        0.87%     
2013     0.25%        47,643        12.211432        581,789        2.05%        0.82%     
2012     0.20%        430,019        12.142003        5,221,292        2.42%        4.21%     
2012     0.25%        61,083        12.111704        739,819        2.42%        4.16%     
2011     0.20%        340,653        11.651689        3,969,183        3.06%        1.81%     
2011     0.25%        49,726        11.628465        578,237        3.06%        1.76%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Variable Insurance Fund - Small Company Growth Portfolio (VVSCG)

2015     0.20%        211,708      $ 16.698441      $ 3,535,194        0.37%        -2.95%     
2015     0.25%        29,148        16.668550        485,855        0.37%        -2.99%     
2014     0.20%        211,544        17.205378        3,639,694        0.29%        3.17%     
2014     0.25%        29,759        17.183180        511,354        0.29%        3.12%     
2013     0.20%        234,928        16.676124        3,917,688        0.00%        46.25%     
2013     0.25%        33,147        16.662933        552,326        0.00%        46.18%     

Variable Insurance Fund - Total Bond Market Index Portfolio (VVHGB)

2015     0.20%        1,575,329        11.460324        18,053,781        1.88%        0.13%     
2015     0.25%        217,052        11.431243        2,481,174        1.88%        0.08%     
2014     0.20%        1,223,324        11.445074        14,001,034        2.04%        5.68%     
2014     0.25%        172,221        11.421739        1,967,063        2.04%        5.63%     
2013     0.20%        660,792        10.829917        7,156,323        2.50%        -2.48%     
2013     0.25%        93,304        10.813242        1,008,919        2.50%        -2.53%     
2012     0.20%        576,440        11.105835        6,401,848        2.82%        3.82%     
2012     0.25%        81,762        11.094288        907,091        2.82%        3.76%     
2011     0.20%        505,956        10.697615        5,412,522        4.18%        7.44%     
2011     0.25%        73,748        10.691844        788,502        4.18%        7.38%     

Variable Insurance Portfolios - Asset Strategy (WRASP)

2015     0.00%        696,691        13.723425        9,560,987        0.33%        -8.35%     
2015     0.20%        254,105        13.498568        3,430,054        0.33%        -8.53%     
2015     0.25%        101,780        13.442902        1,368,219        0.33%        -8.57%     
2014     0.00%        805,694        14.973058        12,063,703        0.49%        -5.26%     
2014     0.20%        57,687        14.757217        851,300        0.49%        -5.45%     
2014     0.25%        133,381        14.703724        1,961,197        0.49%        -5.50%     
2013     0.00%        862,473        15.805085        13,631,459        1.28%        25.13%     
2013     0.20%        36,928        15.608472        576,390        1.28%        24.88%     
2013     0.25%        118,140        15.559672        1,838,220        1.28%        24.82%     
2012     0.00%        877,374        12.630803        11,081,938        1.12%        19.18%     
2012     0.20%        115,705        12.498640        1,446,155        1.12%        18.94%     
2012     0.25%        153,873        12.465791        1,918,149        1.12%        18.88%     
2011     0.00%        748,836        10.598470        7,936,516        1.05%        -7.21%     
2011     0.20%        120,081        10.508616        1,261,885        1.05%        -7.39%     
2011     0.25%        183,861        10.486248        1,928,012        1.05%        -7.44%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Variable Insurance Portfolios - Growth (WRGP)

2015     0.00%        31,616      $ 26.615552      $ 841,477        0.07%        7.17%     
2015     0.10%        601,933        26.333181        15,850,811        0.07%        7.06%     
2015     0.20%        18,366        26.053827        478,505        0.07%        6.95%     
2015     0.25%        74,909        25.915284        1,941,288        0.07%        6.90%     
2014     0.00%        41,497        24.835180        1,030,585        0.46%        11.81%     
2014     0.10%        27,020        24.596290        664,592        0.46%        11.70%     
2014     0.20%        6,840        24.359713        166,620        0.46%        11.59%     
2014     0.25%        64,211        24.242285        1,556,621        0.46%        11.53%     
2013     0.00%        21,182        22.211723        470,489        0.38%        36.46%     
2013     0.10%        31,926        22.020070        703,013        0.38%        36.32%     
2013     0.20%        14,932        21.830088        325,967        0.38%        36.19%     
2013     0.25%        89,523        21.735728        1,945,848        0.38%        36.12%     
2012     0.00%        13,153        16.277308        214,095        0.06%        12.74%     
2012     0.10%        42,493        16.152997        686,389        0.06%        12.63%     
2012     0.20%        13,236        16.029638        212,168        0.06%        12.52%     
2012     0.25%        60,799        15.968332        970,859        0.06%        12.46%     
2011     0.00%        14,516        14.437370        209,573        0.43%        2.12%     
2011     0.10%        70,006        14.341473        1,003,989        0.43%        2.02%     
2011     0.20%        13,379        14.246224        190,600        0.43%        1.92%     
2011     0.25%        53,067        14.198847        753,490        0.43%        1.87%     

Variable Insurance Portfolios - High Income (WRHIP)

2015     0.00%        165,761        11.485833        1,903,903        6.24%        -6.50%     
2015     0.10%        1,789,017        11.443795        20,473,144        6.24%        -6.60%     
2015     0.20%        225,948        11.401930        2,576,243        6.24%        -6.69%     
2015     0.25%        988,113        11.381052        11,245,765        6.24%        -6.74%     
2014     0.00%        291,172        12.284930        3,577,028        5.21%        1.90%     
2014     0.10%        1,805,061        12.252220        22,116,004        5.21%        1.80%     
2014     0.20%        275,142        12.219612        3,362,128        5.21%        1.70%     
2014     0.25%        1,210,071        12.203324        14,766,888        5.21%        1.65%     
2013     0.00%        208,250        12.055335        2,510,524        4.84%        10.50%     
2013     0.20%        1,020,247        12.015237        12,258,510        4.84%        10.28%     
2013     0.25%        653,899        12.005230        7,850,208        4.84%        10.22%     
2012     0.00%        101,745        10.909915        1,110,029        0.10%        9.10%      5/1/2012
2012     0.20%        903,765        10.895380        9,846,863        0.10%        8.95%      5/1/2012
2012     0.25%        186,961        10.891747        2,036,332        0.10%        8.92%      5/1/2012

Variable Insurance Portfolios - Mid Cap Growth (WRMCG)

2015     0.00%        53,104        13.412512        712,258        0.00%        -5.78%     
2015     0.20%        74,709        13.314540        994,716        0.00%        -5.97%     
2015     0.25%        369,393        13.290171        4,909,296        0.00%        -6.01%     
2014     0.00%        47,467        14.235241        675,704        0.00%        7.87%     
2014     0.20%        25,489        14.159561        360,913        0.00%        7.65%     
2014     0.25%        270,542        14.140712        3,825,657        0.00%        7.60%     
2013     0.00%        46,256        13.196715        610,427        0.00%        29.94%     
2013     0.20%        14,260        13.152836        187,559        0.00%        29.68%     
2013     0.25%        82,059        13.141897        1,078,411        0.00%        29.61%     
2012     0.00%        20,326        10.156251        206,436        0.00%        1.56%      5/1/2012
2012     0.20%        396        10.142723        4,017        0.00%        1.43%      5/1/2012
2012     0.25%        33,681        10.139350        341,503        0.00%        1.39%      5/1/2012

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Variable Insurance Portfolios - Real Estate Securities (WRRESP)

2015     0.00%        170,447      $ 21.768855      $ 3,710,436        1.17%        4.78%     
2015     0.20%        24,661        21.309370        525,510        1.17%        4.57%     
2015     0.25%        128,367        21.195988        2,720,865        1.17%        4.52%     
2014     0.00%        250,067        20.775146        5,195,178        0.90%        30.17%     
2014     0.10%        51,354        20.575277        1,056,623        0.90%        30.04%     
2014     0.20%        19,205        20.377337        391,347        0.90%        29.91%     
2014     0.25%        66,974        20.279051        1,358,169        0.90%        29.84%     
2013     0.00%        162,898        15.960563        2,599,944        1.00%        1.13%     
2013     0.10%        30,515        15.822817        482,833        1.00%        1.03%     
2013     0.20%        23,209        15.686256        364,062        1.00%        0.93%     
2013     0.25%        46,882        15.618390        732,221        1.00%        0.88%     
2012     0.00%        63,739        15.782147        1,005,938        0.74%        17.72%     
2012     0.10%        48,019        15.661595        752,054        0.74%        17.60%     
2012     0.20%        18,541        15.541962        288,164        0.74%        17.48%     
2012     0.25%        36,559        15.482465        566,023        0.74%        17.42%     
2011     0.00%        57,695        13.406856        773,509        0.77%        5.01%     
2011     0.10%        63,865        13.317784        850,540        0.77%        4.90%     
2011     0.20%        7,016        13.229310        92,817        0.77%        4.80%     
2011     0.25%        77,067        13.185267        1,016,149        0.77%        4.75%     

Variable Insurance Portfolios - Science and Technology (WRSTP)

2015     0.00%        263,029        20.580822        5,413,353        0.00%        -2.88%     
2015     0.20%        285,588        20.243549        5,781,315        0.00%        -3.07%     
2015     0.25%        191,937        20.160144        3,869,478        0.00%        -3.12%     
2014     0.00%        293,061        21.190944        6,210,239        0.00%        2.91%     
2014     0.20%        304,854        20.885416        6,367,003        0.00%        2.71%     
2014     0.25%        213,742        20.809776        4,447,923        0.00%        2.65%     
2013     0.00%        254,379        20.591565        5,238,062        0.00%        56.38%     
2013     0.20%        314,874        20.335318        6,403,063        0.00%        56.07%     
2013     0.25%        230,840        20.271805        4,679,543        0.00%        55.99%     
2012     0.00%        98,424        13.167237        1,295,972        0.00%        27.83%     
2012     0.20%        119,331        13.029378        1,554,809        0.00%        27.57%     
2012     0.25%        151,147        12.995166        1,964,180        0.00%        27.51%     
2011     0.00%        36,947        10.300580        380,576        0.00%        -5.77%     
2011     0.20%        76,080        10.213184        777,019        0.00%        -5.96%     
2011     0.25%        124,700        10.191472        1,270,877        0.00%        -6.00%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Advantage VT Discovery Fund (SVDF)

2015     0.00%        445,075      $ 17.503637      $ 7,790,431        0.00%        -1.46%     
2015     0.20%        258,017        17.216848        4,442,239        0.00%        -1.66%     
2015     0.25%        235,127        17.145811        4,031,443        0.00%        -1.71%     
2014     0.00%        380,793        17.763449        6,764,197        0.00%        0.36%     
2014     0.20%        249,813        17.507387        4,373,573        0.00%        0.15%     
2014     0.25%        236,671        17.443877        4,128,460        0.00%        0.10%     
2013     0.00%        359,392        17.700580        6,361,447        0.01%        43.80%     
2013     0.20%        230,118        17.480362        4,022,546        0.01%        43.51%     
2013     0.25%        261,339        17.425668        4,554,007        0.01%        43.44%     
2012     0.00%        334,846        12.309177        4,121,679        0.00%        17.74%     
2012     0.10%        27,690        12.244588        339,053        0.00%        17.62%     
2012     0.20%        227,629        12.180346        2,772,600        0.00%        17.50%     
2012     0.25%        192,441        12.148301        2,337,831        0.00%        17.44%     
2011     0.00%        287,967        10.454971        3,010,687        0.00%        0.42%     
2011     0.10%        29,156        10.410540        303,530        0.00%        0.32%     
2011     0.20%        755        10.366304        7,827        0.00%        0.22%     
2011     0.25%        184,638        10.344211        1,909,934        0.00%        0.17%     

Advantage VT Opportunity Fund - Class 2 (SVOF)

2015     0.00%        4        24.330419        97        0.13%        -3.08%     
2015     0.20%        62,320        23.579706        1,469,487        0.13%        -3.28%     
2015     0.25%        171,716        23.395629        4,017,404        0.13%        -3.33%     
2014     0.00%        4        25.104647        100        0.06%        10.42%     
2014     0.10%        47,231        24.739029        1,168,449        0.06%        10.31%     
2014     0.20%        57,554        24.378781        1,403,096        0.06%        10.20%     
2014     0.25%        274,905        24.200566        6,652,857        0.06%        10.15%     
2013     0.00%        4        22.734800        91        0.20%        30.68%     
2013     0.10%        54,407        22.426118        1,220,138        0.20%        30.55%     
2013     0.20%        90,447        22.121661        2,000,838        0.20%        30.42%     
2013     0.25%        306,255        21.970927        6,728,706        0.20%        30.35%     
2012     0.00%        4        17.397601        70        0.09%        15.52%     
2012     0.10%        98,225        17.178537        1,687,362        0.09%        15.41%     
2012     0.20%        110,208        16.962265        1,869,377        0.09%        15.29%     
2012     0.25%        274,874        16.855104        4,633,030        0.09%        15.23%     
2011     0.00%        4        15.059998        60        0.16%        -5.52%     
2011     0.10%        132,129        14.885276        1,966,777        0.16%        -5.61%     
2011     0.20%        106,635        14.712613        1,568,879        0.16%        -5.71%     
2011     0.25%        312,720        14.626997        4,574,155        0.16%        -5.75%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)

2015     0.00%        148,125      $ 16.070348      $ 2,380,420        0.00%        -2.88%     
2015     0.20%        91,940        15.806961        1,453,292        0.00%        -3.08%     
2015     0.25%        150,400        15.741777        2,367,563        0.00%        -3.12%     
2014     0.00%        133,868        16.547252        2,215,148        0.00%        -1.88%     
2014     0.20%        72,398        16.308648        1,180,713        0.00%        -2.07%     
2014     0.25%        183,519        16.249523        2,982,096        0.00%        -2.12%     
2013     0.00%        183,245        16.863800        3,090,207        0.00%        50.23%     
2013     0.20%        49,514        16.653921        824,602        0.00%        49.93%     
2013     0.25%        198,445        16.601843        3,294,553        0.00%        49.85%     
2012     0.00%        182,930        11.225415        2,053,465        0.00%        7.87%     
2012     0.20%        246,982        11.107878        2,743,446        0.00%        7.66%     
2012     0.25%        282,624        11.078669        3,131,098        0.00%        7.60%     
2011     0.00%        220,980        10.406273        2,299,578        0.00%        -4.60%     
2011     0.20%        240,548        10.317983        2,481,970        0.00%        -4.79%     
2011     0.25%        506,120        10.296017        5,211,020        0.00%        -4.83%     

Global Securities Fund/VA - Class 3 (obsolete) (OVGS3)

2013     0.00%        967,069        20.707226        20,025,316        1.37%        27.34%     
2012     0.00%        957,445        16.261792        15,569,771        2.16%        21.23%     
2011     0.00%        1,097,060        13.414448        14,716,454        1.25%        -8.27%     

Janus Aspen Series - Global Technology Portfolio - Service II Shares (obsolete) (JAGTS2)

2011     0.00%        189,756        10.352942        1,964,533        0.00%        -8.81%     
2011     0.00%        1,571,373        10.783470        16,944,854        0.38%        -32.33%     

Templeton Developing Markets Securities Fund - Class 3 (obsolete) (FTVDM3)

2013     0.00%        201,488        19.119582        3,852,366        2.07%        -0.97%     
2012     0.00%        218,972        19.307248        4,227,747        1.42%        13.16%     
2011     0.00%        262,679        17.062376        4,481,928        0.97%        -15.86%     

Templeton Foreign Securities Fund - Class 3 (obsolete) (TIF3)

2013     0.00%        395,070        18.236527        7,204,705        2.46%        22.98%     
2012     0.00%        366,253        14.829007        5,431,168        2.90%        18.30%     
2011     0.00%        406,154        12.534749        5,091,038        1.77%        -10.68%     

Templeton Global Bond Securities Fund - Class 3 (obsolete) (FTVGI3)

2013     0.00%        535,931        20.700503        11,094,041        4.83%        1.64%     
2012     0.00%        606,188        20.367363        12,346,451        6.28%        15.06%     
2011     0.00%        614,756        17.701343        10,882,007        5.34%        -0.83%     

Calvert VP SRI Equity Portfolio (obsolete) (CVSSE)

2013     0.10%        4,808        25.555197        122,869        0.08%        30.92%     
2013     0.25%        6,575        25.124785        165,195        0.08%        30.72%     
2012     0.10%        4,043        19.519575        78,918        0.09%        15.83%     
2012     0.25%        8,723        19.219603        167,653        0.09%        15.66%     
2011     0.10%        10,885        16.851290        183,426        0.00%        -1.44%     
2011     0.25%        7,722        16.617281        128,319        0.00%        -1.59%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Investors Growth Stock Series - Initial Class (obsolete) (MIGIC)

2014     0.00%        129,370      $ 26.831723      $ 3,471,220        0.52%        11.45%     
2013     0.00%        156,129        24.074646        3,758,750        0.64%        30.29%     
2012     0.00%        172,283        18.477561        3,183,370        0.46%        16.97%     
2011     0.00%        192,257        15.796502        3,036,988        0.54%        0.58%     

Mid Cap Growth Portfolio - Class 1 (obsolete) (OGGO)

2013     0.10%        36,544        32.667268        1,193,793        0.06%        43.16%     
2013     0.25%        88,495        32.118996        2,842,371        0.06%        42.94%     
2012     0.10%        37,959        22.818900        866,183        0.00%        15.99%     
2012     0.25%        101,455        22.469562        2,279,649        0.00%        15.82%     
2011     0.10%        43,643        19.672645        858,573        0.00%        -6.24%     
2011     0.25%        117,879        19.400621        2,286,926        0.00%        -6.38%     

Federated NVIT High Income Bond Fund - Class III (obsolete) (HIBF3)

2013     0.00%        588,722        18.202636        10,716,292        6.72%        6.94%     
2012     0.00%        644,890        17.021800        10,977,189        8.23%        14.71%     
2011     0.00%        746,693        14.839228        11,080,348        7.79%        3.81%     

VIP High Income Portfolio - Service Class R (obsolete) (FHISR)

2014     0.00%        262,020        15.400123        4,035,140        5.61%        0.99%     
2013     0.00%        272,620        15.248691        4,157,098        5.27%        5.92%     
2012     0.00%        338,588        14.396142        4,874,361        5.95%        14.10%     
2011     0.00%        301,013        12.617208        3,797,944        6.95%        3.99%     

NVIT Emerging Markets Fund - Class III (obsolete) (GEM3)

2013     0.00%        452,954        19.481483        8,824,216        1.14%        0.75%     
2012     0.00%        488,948        19.336082        9,454,339        0.40%        17.24%     
2011     0.00%        746,323        16.493303        12,309,331        0.71%        -22.39%     

NVIT International Equity Fund - Class III (obsolete) (GIG3)

2013     0.00%        430,241        9.956257        4,283,590        0.51%        17.81%     
2012     0.00%        425,415        8.450909        3,595,143        0.79%        15.58%     
2011     0.00%        519,645        7.311920        3,799,603        1.34%        -9.76%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Research International Series - Service Class (obsolete) (MVRISC)

2014     0.00%        11,140      $ 10.014243      $ 111,559        1.20%        -7.09%     
2014     0.20%        3,823        9.861777        37,702        1.20%        -7.28%     
2014     0.25%        273,139        9.824029        2,683,325        1.20%        -7.32%     
2013     0.00%        10,760        10.778566        115,977        1.76%        18.66%     
2013     0.20%        62,038        10.635735        659,820        1.76%        18.43%     
2013     0.25%        350,531        10.600321        3,715,741        1.76%        18.37%     
2012     0.00%        11,403        9.083269        103,577        2.64%        16.41%     
2012     0.20%        53,472        8.980840        480,223        2.64%        16.18%     
2012     0.25%        338,782        8.955409        3,033,931        2.64%        16.12%     
2011     0.00%        7,541        7.802718        58,840        1.62%        -11.06%     
2011     0.20%        160        7.730217        1,237        1.62%        -11.23%     
2011     0.25%        102,864        7.712183        793,306        1.62%        -11.28%     

VIP Overseas Portfolio - Service Class R (obsolete) (FOSR)

2014     0.00%        677,999        16.555209        11,224,415        1.22%        -8.18%     
2013     0.00%        711,787        18.029345        12,833,053        1.29%        30.30%     
2012     0.00%        771,330        13.836689        10,672,653        1.81%        20.67%     
2011     0.00%        865,432        11.466618        9,923,578        1.29%        -17.30%     

V.I. Capital Appreciation Fund - Series I (obsolete) (AVCA)

2011     0.00%        63,786        12.681863        808,925        0.16%        -7.91%     

V.I. Capital Development Fund - Series I (obsolete) (AVCDI)

2011     0.00%        128,974        18.079131        2,331,738        0.00%        -7.16%     
2011     0.10%        16,279        17.911321        291,578        0.00%        -7.25%     
2011     0.20%        6,516        17.745096        115,627        0.00%        -7.34%     
2011     0.25%        63,941        17.662531        1,129,360        0.00%        -7.39%     

NVIT International Index Fund - Class VI (obsolete) (GVIX6)

2013     0.00%        145,428        11.841416        1,722,073        3.07%        21.27%     
2012     0.00%        101,703        9.764428        993,072        2.68%        18.29%     
2011     0.00%        94,205        8.254444        777,610        2.74%        -12.72%     

NVIT Multi-Manager International Growth Fund - Class III (obsolete) (NVMIG3)

2013     0.00%        1,431,105        12.166606        17,411,691        1.26%        21.34%     
2012     0.00%        1,574,138        10.026765        15,783,512        0.59%        15.78%     
2011     0.00%        1,756,758        8.660251        15,213,965        1.29%        -9.37%     

NVIT Multi-Manager International Value Fund - Class III (obsolete) (GVDIV3)

2013     0.00%        437,468        12.775201        5,588,742        2.28%        21.42%     
2012     0.00%        465,460        10.521355        4,897,270        0.39%        17.24%     
2011     0.00%        503,863        8.974574        4,521,956        1.89%        -16.11%     

NVIT Worldwide Leaders Fund - Class III (obsolete) (GEF3)

2011     0.00%        477,390        2.908819        1,388,641        8.67%        -1.88%     
2011     0.00%        68,934        4.084054        281,530        9.52%        -2.34%     

NATIONWIDE VLI SEPARATE ACCOUNT-4 NOTES TO FINANCIAL STATEMENTS December 31, 2015

 

    Contract
Expense
Rate*		     Units     Unit
Fair Value		     Contract
Owners’ Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VP Vista(SM) Fund - Class I (obsolete) (ACVVS1)

2013     0.00%        9,168      $ 18.872253      $ 173,021        0.00%        30.17%     
2013     0.10%        17,900        18.709418        334,899        0.00%        30.04%     
2013     0.20%        34,709        18.547977        643,782        0.00%        29.91%     
2013     0.25%        28,802        18.467741        531,908        0.00%        29.85%     
2012     0.00%        4,093        14.497885        59,340        0.00%        15.61%     
2012     0.10%        51,805        14.387170        745,327        0.00%        15.50%     
2012     0.20%        34,171        14.277287        487,869        0.00%        15.38%     
2012     0.25%        34,599        14.222632        492,089        0.00%        15.33%     
2011     0.00%        6,581        12.539840        82,525        0.00%        -7.89%     
2011     0.10%        57,688        12.456554        718,594        0.00%        -7.99%     
2011     0.20%        9,490        12.373806        117,427        0.00%        -8.08%     
2011     0.25%        68,644        12.332624        846,561        0.00%        -8.12%     

Small-Cap Growth Portfolio - S Class Shares (obsolete) (AMFAS)

2014     0.00%        52,697        22.147442        1,167,104        0.00%        3.47%     
2014     0.10%        23,677        21.876057        517,959        0.00%        3.37%     
2013     0.00%        56,346        21.404466        1,206,056        0.00%        45.83%     
2013     0.10%        33,952        21.163352        718,538        0.00%        45.69%     
2013     0.25%        55,402        20.806928        1,152,745        0.00%        45.47%     
2012     0.00%        46,332        14.677347        680,031        0.00%        8.82%     
2012     0.10%        24,811        14.526513        360,417        0.00%        8.71%     
2012     0.25%        43,912        14.303271        628,085        0.00%        8.55%     
2011     0.00%        72,045        13.487592        971,714        0.00%        -1.06%     
2011     0.10%        33,847        13.362369        452,276        0.00%        -1.16%     
2011     0.25%        56,153        13.176815        739,918        0.00%        -1.31%     
2015     Contract owners equity:          $ 4,526,981,672         
2014     Contract owners equity:          $ 4,739,882,176         
2013     Contract owners equity:          $ 4,637,188,888         
2012     Contract owners equity:          $ 4,083,042,311         
2011     Contract owners equity:          $ 3,792,718,355         
* This represents the annual contract expense rate of the variable account at the period end indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract owner accounts through the redemption of units.
** This represents the ratio of dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by monthly average net assets (excluding months where net assets are zero). The investment income ratio for subaccounts initially funded during the period presented has not been annualized. The ratios exclude those expenses that result in direct reductions to the contract owner accounts through reductions in unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.
*** This represents the total return for the period. The total returns do not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Total return is not annualized if the underlying mutual fund option is initially offered, funded, or both during the period presented.
**** This represents the date the underlying mutual fund option was initially added and funded.

LOGO    KPMG LLP
  

Suite 500

191 West Nationwide Blvd.

Columbus, OH 43215-2568

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholder

Nationwide Life Insurance Company:

We have audited the accompanying consolidated balance sheets of Nationwide Life Insurance Company and subsidiaries (the Company) as of December 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2015. In connection with our audits of the consolidated financial statements, we also have audited the financial statement schedules as listed in the accompanying table of contents. These consolidated financial statements and financial statement schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Nationwide Life Insurance Company and subsidiaries as of December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2015, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.

/s/ KPMG LLP

Columbus, Ohio

February 23, 2016

 

1

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Operations

 

     Year ended December 31,  

(in millions)

    2015      2014     2013  

Revenues

        

Policy charges

    $ 2,216       $ 2,065      $ 1,849   

Premiums

      786         831        724   

Net investment income

      1,982         1,900        1,849   

Net realized investment gains (losses), including other-than-temporary impairment losses

      82         (1,078 )      678   

Other revenues

      14         11        17   
  

 

 

     

 

 

    

 

 

  

Total revenues

    $ 5,080       $ 3,729      $ 5,117   
  

 

 

     

 

 

    

 

 

  

Benefits and expenses

        

Interest credited to policyholder account values

    $ 1,078       $ 1,096      $ 1,067   

Benefits and claims

      1,662         1,502        1,354   

Amortization of deferred policy acquisition costs

      68         207        374   

Other expenses, net of deferrals

      1,044         1,055        981   
  

 

 

     

 

 

    

 

 

  

Total benefits and expenses

    $ 3,852       $ 3,860      $ 3,776   
  

 

 

     

 

 

    

 

 

  

Income (loss) before federal income taxes and noncontrolling interests

    $ 1,228       $ (131 )    $ 1,341   

Federal income tax expense (benefit)

      293         (147 )      313   
  

 

 

     

 

 

    

 

 

  

Net income

    $ 935       $ 16      $ 1,028   

Noncontrolling interest adjustment for consolidated net expenses, net of tax

      96         94        82   
  

 

 

     

 

 

    

 

 

  

Net income attributable to Nationwide Life Insurance Company

    $ 1,031       $ 110      $ 1,110   
  

 

 

     

 

 

    

 

 

  

See accompanying notes to consolidated financial statements.

 

2

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Comprehensive Income

 

     Year ended December 31,  

(in millions)

        2015         2014      2013  

Net income

    $ 935      $ 16       $ 1,028   
  

 

 

    

 

 

     

 

 

  

Other comprehensive (loss) income, net of tax

        

Changes in:

        

Net unrealized (losses) gains on available-for-sale securities

    $ (720 )    $ 435       $ (663 ) 

Other

      43        27         (7 ) 
  

 

 

    

 

 

     

 

 

  

Total other comprehensive (loss) income, net of tax

    $ (677 )    $ 462       $ (670 ) 
  

 

 

    

 

 

     

 

 

  

Total comprehensive income

    $ 258      $ 478       $ 358   

Noncontrolling interest adjustment for consolidated net expenses, net of tax

      96        94         82   
  

 

 

    

 

 

     

 

 

  

Total comprehensive income attributable to Nationwide Life Insurance Company

    $ 354      $ 572       $ 440   
  

 

 

    

 

 

     

 

 

  

See accompanying notes to consolidated financial statements.

 

3

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Balance Sheets

 

     December 31,  

(in millions, except for share and per share amounts)

    2015      2014  

Assets

      

Investments:

      

Fixed maturity securities, available-for-sale

    $ 37,570       $ 35,418   

Mortgage loans, net of allowance

      8,396         7,270   

Policy loans

      993         992   

Short-term investments

      766         935   

Other investments

      943         822   
  

 

 

     

 

 

  

Total investments

    $ 48,668       $ 45,437   

Cash and cash equivalents

      67         77   

Accrued investment income

      477         670   

Deferred policy acquisition costs

      5,200         4,063   

Goodwill

      200         200   

Other assets

      2,328         5,001   

Separate account assets

      87,238         88,076   
  

 

 

     

 

 

  

Total assets

    $ 144,178       $ 143,524   
  

 

 

     

 

 

  

Liabilities and equity

      

Liabilities

      

Future policy benefits and claims

    $ 45,397       $ 40,730   

Short-term debt

      400         660   

Long-term debt

      707         709   

Other liabilities

      2,042         5,313   

Separate account liabilities

      87,238         88,076   
  

 

 

     

 

 

  

Total liabilities

    $ 135,784       $ 135,488   
  

 

 

     

 

 

  

Shareholder’s equity

      

Common stock ($1 par value; authorized - 5,000,000 shares, issued and outstanding - 3,814,779 shares)

    $ 4       $ 4   

Additional paid-in capital

      1,718         1,718   

Retained earnings

      5,661         4,630   

Accumulated other comprehensive income

      367         1,044   
  

 

 

     

 

 

  

Total shareholder’s equity

    $ 7,750       $ 7,396   

Noncontrolling interests

      644         640   
  

 

 

     

 

 

  

Total equity

    $ 8,394       $ 8,036   
  

 

 

     

 

 

  

Total liabilities and equity

    $ 144,178       $ 143,524   
  

 

 

     

 

 

  

See accompanying notes to consolidated financial statements.

 

4

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Equity

 

(in millions)

    Common
stock		      Additional
paid-in
capital		      Retained
earnings		      Accumulated
other
comprehensive
income		     Total
shareholder’s
equity		     Non-
controlling
interest		     Total
equity		  

Balance as of December 31, 2012

    $ 4       $ 1,718       $ 3,410       $ 1,252      $ 6,384      $ 347      $ 6,731   

Comprehensive income (loss):

                  

Net income (loss)

    $ —         $ —         $ 1,110       $ —        $ 1,110      $ (82 )    $ 1,028   

Other comprehensive income

      —           —           —           (670 )      (670 )      —          (670 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

    $ —         $ —         $ 1,110       $ (670 )    $ 440      $ (82 )    $ 358   

Change in noncontrolling interest

      —           —           —           —          —          415        415   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2013

    $ 4       $ 1,718       $ 4,520       $ 582      $ 6,824      $ 680      $ 7,504   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Comprehensive income (loss):

                  

Net income (loss)

    $ —         $ —         $ 110       $ —        $ 110      $ (94 )    $ 16   

Other comprehensive loss

      —           —           —           462        462        —          462   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

    $ —         $ —         $ 110       $ 462      $ 572      $ (94 )    $ 478   

Change in noncontrolling interest

      —           —           —           —          —          54        54   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2014

    $ 4       $ 1,718       $ 4,630       $ 1,044      $ 7,396      $ 640      $ 8,036   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Comprehensive income (loss):

                  

Net income (loss)

    $ —         $ —         $ 1,031       $ —        $ 1,031      $ (96 )    $ 935   

Other comprehensive loss

      —           —           —           (677 )      (677 )      —          (677 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

    $ —         $ —         $ 1,031       $ (677 )    $ 354      $ (96 )    $ 258   

Change in noncontrolling interest

      —           —           —           —          —          100        100   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2015

    $ 4       $ 1,718       $ 5,661       $ 367      $ 7,750      $ 644      $ 8,394   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

See accompanying notes to consolidated financial statements.

 

5

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Cash Flows

 

     Year ended December 31,  

(in millions)

    2015     2014     2013  

Cash flows from operating activities

       

Net income

    $ 935      $ 16      $ 1,028   

Adjustments to net income:

       

Net realized investment (gains) losses, including other-than-temporary impairment losses

      (82 )      1,078        (678 ) 

Interest credited to policyholder account values

      1,078        1,096        1,067   

Capitalization of deferred policy acquisition costs

      (870 )      (685 )      (604 ) 

Amortization of deferred policy acquisition costs

      68        207        374   

Amortization and depreciation

      107        128        77   

Deferred tax expense (benefit)

      217        (152 )      346   

Changes in:

       

Policy liabilities

      (249 )      (421 )      (475 ) 

Derivatives, net

      (141 )      (181 )      (483 ) 

Other, net

      (280 )      (59 )      88   
  

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

    $ 783      $ 1,027      $ 740   
  

 

 

    

 

 

    

 

 

  

Cash flows from investing activities

       

Proceeds from maturities of available-for-sale securities

    $ 2,828      $ 2,798      $ 3,689   

Proceeds from sales of available-for-sale securities

      466        647        1,091   

Purchases of available-for-sale securities

      (7,106 )      (5,640 )      (6,842 ) 

Proceeds from repayments and sales of mortgage loans

      1,027        920        1,091   

Issuances of mortgage loans

      (2,155 )      (1,837 )      (1,593 ) 

Net sales (purchases) of short-term investments

      169        (524 )      654   

Collateral received (paid), net

      48        399        (637 ) 

Other, net

      (136 )      (94 )      42   
  

 

 

    

 

 

    

 

 

  

Net cash used in investing activities

    $ (4,859 )    $ (3,331 )    $ (2,505 ) 
  

 

 

    

 

 

    

 

 

  

Cash flows from financing activities

       

Net change in short-term debt

    $ (260 )    $ 382      $ (22 ) 

Proceeds from issuance of long-term debt

      —          —          2   

Repayments of long-term debt

      (2 )      —          (299 ) 

Investment and universal life insurance product deposits

      8,224        6,037        6,139   

Investment and universal life insurance product withdrawals

      (3,884 )      (4,095 )      (4,034 ) 

Other, net

      (12 )      (4 )      (22 ) 
  

 

 

    

 

 

    

 

 

  

Net cash provided by financing activities

    $ 4,066      $ 2,320      $ 1,764   
  

 

 

    

 

 

    

 

 

  

Net (decrease) increase in cash and cash equivalents

    $ (10 )    $ 16      $ (1 ) 

Cash and cash equivalents at beginning of year

      77        61        62   
  

 

 

    

 

 

    

 

 

  

Cash and cash equivalents at end of year

    $ 67      $ 77      $ 61   
  

 

 

    

 

 

    

 

 

  

See accompanying notes to consolidated financial statements.

 

6

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

(1) Nature of Operations

Nationwide Life Insurance Company (“NLIC,” or collectively with its subsidiaries, “the Company”) was incorporated in 1929 and is an Ohio domiciled stock life insurance company. The Company is a member of the Nationwide group of companies (“Nationwide”), which is comprised of Nationwide Mutual Insurance Company (“NMIC”) and all of its subsidiaries and affiliates.

All of the outstanding shares of NLIC’s common stock are owned by Nationwide Financial Services, Inc. (“NFS”), a holding company formed by Nationwide Corporation (“Nationwide Corp.”), a majority-owned subsidiary of NMIC.

The Company is a leading provider of long-term savings and retirement products in the United States of America (“U.S.”). The Company develops and sells a wide range of products and services, which include fixed and variable individual annuities, private and public sector group retirement plans, life insurance, investment advisory services, banking products and services, mutual funds and other investment products.

The Company sells its products through a diverse distribution network. Unaffiliated entities that sell the Company’s products to their own customer bases include independent broker-dealers, financial institutions, wirehouse and regional firms, pension plan administrators and life insurance specialists. Representatives of affiliates who market products directly to a customer base include Nationwide Retirement Solutions, Inc. (“NRS”) and Nationwide Financial Network (“NFN”) producers, which includes the agency distribution force of the Company’s ultimate parent company, NMIC.

Wholly-owned subsidiaries of NLIC as of December 31, 2015 include Nationwide Life and Annuity Insurance Company (“NLAIC”), Nationwide Investment Services Corporation (“NISC”), Nationwide Investment Advisor (“NIA”) and Eagle Captive Reinsurance, LLC (“Eagle”). NLAIC primarily offers universal life insurance, variable universal life insurance, term life insurance, corporate-owned life insurance (“COLI”) and individual annuity contracts on a non-participating basis. NISC is a registered broker-dealer. NIA is a registered investment advisor.

Eagle is an Ohio domiciled special purpose financial captive insurance company, and a member of the Nationwide group of companies, which is comprised of NMIC and all of its subsidiaries and affiliates. Eagle is a wholly-owned subsidiary of NLIC. Eagle commenced operations effective October 1, 2015, following surplus contributions of $50 million by NLIC for the purpose of assuming net of third party reinsurance, 100% of NLIC’s liability with respect to specified guaranteed minimum death benefits (“GMDB”) and guaranteed lifetime withdrawal benefits (“GLWB”) provided under substantially all of the variable annuity contracts issued and to be issued by NLIC. The base annuity contracts and any non-reinsured risks will be retained by NLIC.

As of December 31, 2015 and 2014, the Company did not have a significant concentration of financial instruments in a single investee, industry or geographic region. Also, the Company did not have a concentration of business transactions with a particular customer, lender, distribution source, market or geographic region in which a single event could cause a severe impact on the Company’s financial position.

 

(2) Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of NLIC and companies in which NLIC directly or indirectly has a controlling financial interest. The consolidated financial statements include majority-owned subsidiaries and consolidated variable interest entities (“VIEs”). All intercompany accounts and transactions have been eliminated.

Use of Estimates

The Company’s consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of the consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates include the balance and amortization of deferred policy acquisition costs (“DAC”), legal and regulatory reserves, certain investment and derivative valuations, future policy benefits and claims including the valuation of embedded derivatives resulting from living benefit guarantees on variable annuity contracts expected to net settle, goodwill, provision for income taxes and valuation of deferred tax assets. Actual results could differ significantly from those estimates.

 

7

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Revenues and Benefits

Investment and universal life insurance products. Investment products are long-duration contracts that do not subject the Company to significant risk arising from mortality (the incidence of death) or morbidity (the incidence of disability resulting from disease or physical impairment). These include variable and fixed deferred annuity contracts in the accumulation phase with individuals and groups, as well as certain annuities without life contingencies. Universal life insurance products include long-duration insurance contracts that do not have fixed or guaranteed terms. These include universal life insurance, variable universal life insurance, COLI, bank-owned life insurance (“BOLI”) and other interest-sensitive life insurance policies. Revenues for investment products and universal life insurance products consist of net investment income, surrender charges and other policy charges earned and assessed against policy account balances during the period. Policy charges are assessed on a daily or monthly basis and are recognized as revenue when assessed and earned. Assessments for services provided in future periods are recorded as unearned revenue and recognized as revenue over the periods benefited. Surrender charges are recognized as revenue upon surrender of a contract in accordance with contractual terms. Policy benefits and claims that are charged to expense include interest credited to policyholder accounts and benefits and claims incurred in the period in excess of related policyholder accounts.

Traditional life insurance products. Traditional life insurance products include those products with fixed and guaranteed terms, primarily consisting of whole life insurance, term life insurance and certain annuities with life contingencies. Premiums for traditional life insurance products are generally recognized as revenue when due. For certain annuities with life contingencies, any excess of gross premium over the net premium is deferred and recognized with the amount of expected future benefits. Benefits and expenses are associated with earned premiums so that profits are recognized over the life of the contract. This association is accomplished through the provision for future policy benefits and the deferral and amortization of policy acquisition costs.

Future Policy Benefits and Claims

Investment and universal life insurance products. The Company calculates its liability for future policy benefits and claims for investment products in the accumulation phase and for universal life insurance policies at the policy accrued account balance, which represents participants’ net deposits adjusted for investment performance, interest credited and applicable contract charges.

The Company offers guarantees which can include a return of no less than the total deposits made on the contract less any customer withdrawals, total deposits made on the contract less any customer withdrawals plus a minimum return, or the highest contract value on a specified anniversary date minus any customer withdrawals following the contract anniversary. These guarantees can also include benefits payable in the event of death, upon annuitization, upon periodic withdrawal or at specified dates during the accumulation period. Refer to Note 4 for further discussion of these guarantees.

As part of its valuation procedures, the Company makes an assumption of the expected utilization of guarantee benefits by participants. Guarantees that include a benefit that is wholly life contingent or is expected to be exercised upon annuitization are accounted for as insurance liabilities that accumulate over time. Guarantees that are expected to be exercised using a net settlement option are accounted for as embedded derivatives, which are required to be separated from, and valued apart from, the host variable annuity contracts.

Guarantees on variable annuity and fixed annuity products accounted for as insurance liabilities primarily include GMDB and certain GLWB. Liabilities for these guarantees are calculated by multiplying the current benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date, less the cumulative guaranteed benefit payments plus interest. The Company annually evaluates its experience and assumptions and adjusts the benefit ratio as appropriate. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes, with a related charge or credit to benefits and claims in the period of evaluation. Determination of the expected benefit payments and assessments are based on a range of scenarios and assumptions, including those related to market rates of return and volatility, contract surrenders and mortality experience. The accounting for these guarantees impacts estimated gross profits used to calculate the balance and amortization of DAC and other expenses. Refer to Note 4 for further discussion of these guarantees.

 

8

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Certain guaranteed minimum accumulation benefits (“GMAB”) and the GLWB that are expected to net settle on variable annuity products represent embedded derivatives which are held at fair value and include the present value of attributed fees. Subsequent changes in the fair value of the embedded derivatives are recognized in earnings as a component of net realized investment gains and losses. The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivatives incorporate numerous, unobservable assumptions including, but not limited to, mortality, lapse rates, index volatility, benefit utilization and discounting. Benefit utilization includes a wait period (the number of years the policyholder is assumed to wait prior to beginning withdrawals once eligible) and efficiency of benefit utilization (the percent of the maximum permitted withdrawal that a policyholder takes). Discounting includes liquidity and non-performance risk (the risk that the liability will not be fulfilled) and affects the value at which the liability is transferred. The Company derives these inputs, which vary widely by product, attained age, policy duration, benefits in the money and the existence of surrender charges, from experience and industry data.

The Company offers certain indexed life insurance and annuity products for which the policyholders’ interest credits are based on market performance with caps and floors. The interest credits represent embedded derivatives within the insurance contract and therefore are required to be separated, and valued apart from, the host contracts. The embedded derivatives are held at fair value. Subsequent changes in the fair value of the embedded derivatives are recognized in earnings as a component of interest credited. The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivatives incorporate numerous unobservable assumptions including, but not limited to, mortality, lapse rates and index volatility.

The assumptions used to calculate the fair value of embedded derivatives are reviewed as part of an annual comprehensive study of assumptions. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary.

The Company offers certain universal life and variable universal life insurance products with no-lapse guarantees. Liabilities for these guarantees are calculated by multiplying the current benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date, less the cumulative guaranteed benefit payments plus interest. The Company annually evaluates its experience and assumptions and adjusts the benefit ratio as appropriate. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes with a related charge or credit to other benefits and claims in the period of evaluation. Determination of the expected benefit payments and assessments are based on a range of scenarios and assumptions, including those related to market rates of return and volatility, contract surrenders and mortality experience. The accounting for these guarantees impacts estimated gross profits used to calculate the balance and amortization of DAC and other expenses. Refer to Note 4 for further discussion of these guarantees.

Traditional life and other insurance products. The process of calculating reserve amounts for traditional life insurance products involves the use of a number of assumptions, including those related to persistency (the percentage of insurance policies remaining in-force from year to year), mortality, morbidity, interest rates (the rates expected to be paid or received on financial instruments) and certain other expenses.

The liability for future policy benefits and claims for traditional life insurance policies was determined using the net level premium method, with weighted average interest rates of 6.6% and estimates of mortality, morbidity, investment yields and persistency that were used or being experienced at the time the policies were issued, with a provision for adverse deviation.

The liability for future policy benefits for certain annuities with life contingencies was calculated using the present value of future benefits and certain expenses, discounted using weighted average interest rates of 4.7% with a provision for adverse deviation.

The Company issues fixed and floating rate funding agreements to the Federal Home Loan Bank of Cincinnati (“FHLB”). The liability for such funding agreements is recorded in future policy benefits and claims. The amount of collateralized funding agreements outstanding with the FHLB as of December 31, 2015 and 2014 was $2.3 billion and $1.8 billion, respectively. In connection with an FHLB requirement for funding agreements, the Company held $46 million and $35 million of FHLB stock as of December 31, 2015 and 2014, respectively.

 

9

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Reinsurance Ceded

The Company cedes insurance to other companies in order to limit potential losses and to diversify its exposures. Such agreements do not relieve the original insurer from its primary obligation to the policyholder in the event the reinsurer is unable to meet the obligations it has assumed. Reinsurance premiums ceded and reinsurance recoveries on benefits and claims incurred are deducted from the respective income and expense accounts. Assets and liabilities related to reinsurance ceded are reported in the consolidated balance sheets on a gross basis, separately from the related future policy benefits and claims of the Company.

Deferred Policy Acquisition Costs

The Company has deferred certain acquisition costs that are directly related to the successful acquisition of new and renewal insurance and investment contracts. The methods and assumptions used to amortize and assess recoverability of the DAC balance depend on the type of product.

Investment and universal life insurance products. For certain investment and universal life insurance products, DAC is amortized with interest over the lives of the policies in relation to the present value of estimated gross profits, which is determined primarily from projected interest margins, policy charges and net realized investment gains and losses, less policy benefits and other expenses. The DAC asset related to investment and universal life insurance products is adjusted to reflect the impact of unrealized gains and losses on available-for-sale securities, with the corresponding adjustment recorded in accumulated other comprehensive income (“AOCI”). This adjustment to DAC represents the change in amortization that would have been required as a charge or credit to earnings had such unrealized amounts been realized. DAC for investment and universal life insurance products is subject to recoverability testing in the year of policy issuance, and DAC for universal life insurance products is also subject to loss recognition testing at the end of each reporting period.

The assumptions used in the estimation of gross profits are based on the Company’s current best estimates of future events and are reviewed as part of an annual comprehensive study of assumptions. The most significant assumptions that are involved in the estimation of future gross profits include future net general and separate account investment performance, surrender/lapse rates, interest margins, renewal premiums and mortality. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary. The Company uses a reversion to the mean process to determine the assumption for the future net separate account investment performance. This process assumes different performance levels over the next three years, such that the separate account mean return, measured from the anchor date to the end of the life of the product, equals the long-term assumption. The Company’s long-term assumptions for net separate account investment performance consist of assumed gross returns of 10.5% for equity funds and 5.0% for fixed funds.

Changes in assumptions can have a significant impact on the amount of DAC reported for investment and universal life insurance products and on their related amortization patterns. In the event actual experience differs from assumptions or future assumptions are revised, the Company will record an increase or decrease in DAC amortization expense, which could be significant.

Traditional life insurance products. DAC is amortized with interest over the premium-paying period of the related policies in proportion to premium revenue recognized. These assumptions are consistent with those used in the calculation of liabilities for future policy benefits at issuance. DAC is evaluated for recoverability in the year of policy issuance, and loss recognition testing is conducted each reporting period.

Refer to Note 5 for discussion regarding DAC amortization and related balances.

Investments

Available-for-sale securities. Available-for-sale securities are reported at fair value, with unrealized gains and losses reported as a separate component of other comprehensive income, net of adjustments for DAC, future policy benefits and claims, policyholder dividend obligations and deferred federal income taxes. Realized gains and losses on sales of available-for-sale securities are recognized in income based on the specific identification method. Interest and dividend income is recognized when earned.

As of December 31, 2015 and 2014, 99% of fixed maturity securities were priced using externally sourced data. Independent pricing services are most often utilized (86% and 87% as of December 31, 2015 and 2014, respectively) to determine the fair value of securities for which market quotations are available. For these securities, the Company obtains the pricing services’ methodologies, pricing from additional sources, and classifies the investments accordingly in the fair value hierarchy.

 

10

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

A corporate pricing matrix is used in valuing certain corporate debt securities. The corporate pricing matrix was developed using publicly and privately available spreads for privately placed corporate securities with varying weighted average lives and credit quality ratings. The weighted average life and credit quality rating of a particular fixed maturity security to be priced using the corporate pricing matrix are important inputs into the model and are used to determine a corresponding spread that is added to the appropriate U.S. Treasury yield to create an estimated market yield for that security. The estimated market yield and other relevant factors are then used to estimate the fair value of the particular security.

Non-binding broker quotes are also utilized to determine the fair value of certain fixed maturity securities when deemed appropriate or when quotes are not available from independent pricing services or a corporate pricing matrix. These securities, consisting primarily of private placement corporate bonds, are classified with the lowest priority in the fair value hierarchy as only one broker quote is ordinarily obtained, the investment is not traded on an exchange, the pricing is not available to other entities and/or the transaction volume in the same or similar investments has decreased. Inputs used in the development of prices are not provided to the Company by the brokers, as the brokers often do not provide the necessary transparency into their quotes and methodologies. At least annually, the Company performs reviews and tests to ensure that quotes are a reasonable estimate of the investments’ fair value. Price movements of broker quotes are subject to validation and require approval from the Company’s management. Management uses its knowledge of the investment and current market conditions to determine if the price is indicative of the investment’s fair value.

When the collectability of contractual interest payments on fixed maturity securities is considered doubtful, such securities are placed in non-accrual status and any accrued interest is excluded from investment income. These securities are not restored to accrual status until the Company determines that future payment of principal and interest is probable.

The Company has entered into securities lending agreements with a custodial bank whereby eligible securities are loaned to third parties, primarily major brokerage firms. These transactions are used to generate additional income in the securities portfolio. The Company is entitled to receive from the borrower any payments of interest and dividends received on loaned securities during the loan term. The agreements require a minimum of 102% of the fair value of the loaned securities to be held as collateral. Cash collateral is invested by the custodial bank in investment-grade securities, which are included in the total investments of the Company. Additionally, the Company may receive non-cash collateral, which would be recorded off-balance sheet. As of December 31, 2015 and December 31, 2014, the fair value of the securities received as collateral and recorded off balance sheet is $167 million and $0, respectively. The Company recognizes loaned securities in available-for-sale investments. A securities lending payable is recorded in other liabilities for the amount of cash collateral received. Net income received from securities lending activities is included in net investment income. As of December 31, 2015 and 2014, the fair value of loaned securities was $389 million and $254 million, respectively.

For investments in certain residential and commercial mortgage-backed securities, the Company recognizes income and amortizes discounts and premiums using the effective-yield method, based on prepayment assumptions and the estimated economic life of the securities. When actual prepayments differ significantly from estimated prepayments, the effective-yield is recalculated to reflect actual payments to date and anticipated future payments. Any resulting adjustment is included in net investment income in the period the estimates are revised. All other investment income is recorded using the effective-yield method without anticipating the impact of prepayments.

The Company periodically reviews its available-for-sale securities to determine if any decline in fair value to below amortized cost is other-than-temporary. Factors considered in determining whether a decline is other-than-temporary include the length of time a security has been in an unrealized loss position, the severity of the unrealized loss, reasons for the decline in value and expectations for the amount and timing of a recovery in fair value.

In assessing corporate debt securities for other-than-temporary impairment, the Company evaluates the ability of the issuer to meet its debt obligations, the value of the company or specific collateral securing the debt, the Company’s intent to sell the security and whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost basis. The Company evaluates U.S. government, agencies and obligations of states and political subdivisions securities for other-than-temporary impairment by examining similar characteristics.

Mortgage-backed securities are assessed for impairment using default estimates based on loan level data, where available. Where loan level data is not available, a proxy based on collateral characteristics is used. The impairment assessment considers loss severity as a function of multiple factors, including unpaid balance, interest rate, mortgage insurance ratios, assessed property value at origination, change in property value, loan-to-value (“LTV”) ratio at origination and prepayment speeds. Cash flows generated by the collateral are then utilized, along with consideration of the instrument’s position in the overall structure, to determine cash flows associated with the security.

 

11

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Certain asset-backed securities are assessed for impairment using expected cash flows based on various inputs, including default estimates based on the underlying corporate securities, historical and forecasted loss severities or other market inputs when recovery estimates are not feasible. When the collateral is regional bank and insurance company trust preferred securities, default estimates used to estimate cash flows are based on U.S. Bank Rating service data and broker research.

The Company evaluates its intent to sell on an individual security basis. Other-than-temporary impairment losses on securities when the Company does not intend to sell the security and it is not more likely than not it will be required to sell the security prior to recovery of the security’s amortized cost basis are bifurcated, with the credit related portion of the impairment loss being recognized in earnings and the non-credit related portion of the impairment loss and any subsequent changes in the fair value of those debt securities being recognized in other comprehensive income, net of applicable taxes and other offsets. To estimate the credit related portion of an impairment loss recognized in earnings, the Company considers the present value of the cash flows. To the extent that the present value of cash flows generated by a debt security is less than the amortized cost, an other-than-temporary impairment is recognized through earnings.

It is possible that further declines in fair values of such investments, or changes in assumptions or estimates of anticipated recoveries and/or cash flows, may cause further other-than-temporary impairments, which could be significant.

The Company invests in fixed maturity securities that could qualify as variable interest entities (“VIEs”), including corporate securities, mortgage-backed securities and asset-backed securities. The Company is not the primary beneficiary of these securities as the Company does not have the power to direct the activities that most significantly impact the entities’ performance. The Company’s potential loss is limited to the carrying values of these securities. There are no liquidity arrangements, guarantees or other commitments by third parties that affect the fair value of the Company’s interest in these assets.

Mortgage loans, net of allowance. The Company holds commercial mortgage loans that are collateralized by properties throughout the U.S. These mortgage loans are further segregated into the following classes based on the unique risk profiles of the underlying property types: office, industrial, retail, apartment, hotel and other. Mortgage loans held-for-investment are held at amortized cost less a valuation allowance.

As part of the underwriting process, specific guidelines are followed to ensure the initial quality of a new mortgage loan. Third-party appraisals are obtained to support loaned amounts, as the loans are usually collateral dependent.

The collectability and value of a mortgage loan are based on the ability of the borrower to repay and/or the value of the underlying collateral. Many of the commercial mortgage loans are structured with balloon payment maturities, exposing the Company to risks associated with the borrowers’ ability to make the balloon payment or refinance the property.

Mortgage loans require a loan-specific reserve when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When management determines that a loan requires a loan-specific reserve, a provision for loss is established equal to the difference between the carrying value and either the fair value of the collateral less costs to sell or the present value of expected future cash flows, discounted at the loan’s market interest rate. Loan-specific reserve charges are recorded in net realized investment gains and losses. In the event a loan-specific reserve charge is reversed, the recovery is also recorded in net realized investment gains and losses.

In addition to the loan-specific reserves, the Company maintains a non-specific reserve based primarily on loan surveillance categories and property type classes, which reflects management’s best estimates of probable credit losses inherent in the portfolio of loans without specific reserves as of the balance sheet date. Management’s periodic evaluation of the adequacy of the non-specific reserve is based on past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect a borrower’s ability to repay, the estimated value of the underlying collateral, the composition of the loan portfolio, current economic conditions and other relevant factors. Non-specific reserve changes are recorded in net realized investment gains and losses.

Management evaluates the credit quality of individual commercial mortgage loans and the portfolio as a whole through a number of loan quality measurements, including but not limited to LTV and debt service coverage (“DSC”) ratios. The LTV ratio is calculated as a ratio of the amortized cost of a loan to the estimated value of the underlying collateral. DSC is the amount of cash flow generated by the underlying collateral of the mortgage loan available to meet periodic interest and principal payments of the loan. This process identifies commercial mortgage loans representing the lowest risk profile and lowest potential for loss and those representing the highest risk profile and highest potential for loss. These factors are updated and evaluated at least annually.

 

12

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Interest income on performing mortgage loans is recognized over the life of the loan using the effective-yield method. Loans in default or in the process of foreclosure are placed on non-accrual status. Interest received on non-accrual status mortgage loans is included in net investment income in the period received. Loans are restored to accrual status when the principal and interest is current and it is determined the future principal and interest payments are probable or the loan is modified. Loans are considered delinquent when contractual payments are 90 days past due.

Policy loans. Policy loans, which are collateralized by the related insurance policy, are held at the outstanding principal balance and do not exceed the net cash surrender value of the policy. As such, no valuation allowance for policy loans is required.

Short-term investments. Short-term investments consist primarily of highly liquid mutual funds and government agency discount notes with maturities of twelve months or less at acquisition. The Company and various affiliates maintain agreements with Nationwide Cash Management Company (“NCMC”), an affiliate, under which NCMC acts as a common agent in handling the purchase and sale of short-term securities for the respective accounts of the participants. Amounts on deposit with NCMC for the benefit of the Company are included in short-term investments on the consolidated balance sheets. The Company carries short-term investments at fair value.

Other investments. Other investments consist primarily of alternative investments in private equity, purchased tax credit funds and partnerships accounted for under the equity method, trading securities, equity securities and capital stock with the FHLB. The Company applies mark-to-market accounting to trading securities and recognizes changes in fair value in net realized investment gains and losses.

The Company holds investments in limited partnerships and similar entities including private equity funds, tax credit funds and real estate related funds. The Company applies the equity method of accounting to these investments as it does not have a controlling financial interest. The Company recognizes the change in equity method investments in net investment income. The Company’s unfunded commitments related to these investments were $315 million and $123 million as of December 31, 2015 and 2014, respectively. The carrying value of these investments was $199 million and $141 million as of December 31, 2015 and 2014, respectively.

The Company has sold $1.4 billion and $1.3 billion in Tax Credit Funds to unrelated third parties as of December 31, 2015 and 2014, respectively. The Company has guaranteed after-tax benefits to the third party investors through periods ending in 2031. These guarantees are in effect for periods of approximately 15 years each. The Tax Credit Funds provide a stream of tax benefits to the investors that will generate a yield and return of capital. If the tax benefits are not sufficient to provide these cumulative after-tax yields, the Company must fund any shortfall. The maximum amount of undiscounted future payments that the Company could be required to pay the investors under the terms of the guarantees is $720 million, but the Company does not anticipate making any material payments related to the guarantees. The Company’s risks are mitigated in the following ways: (1) the Company has the right to buyout the equity related to the guarantee under certain circumstances, (2) the Company may replace underperforming properties to mitigate exposure to guarantee payments and (3) the Company oversees the asset management of the deals.

In the normal course of business, the Company has relationships with VIEs. If the Company determines that it has a variable interest and is the primary beneficiary, it consolidates the VIE. The Company is the primary beneficiary if the Company has the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and the obligation to absorb losses or receive benefits from the entity that could be potentially significant to the VIE. This determination is based on a review of the entity’s contract and other deal-related information, such as the entity’s equity investment at risk, decision-making abilities, obligations to absorb economic risks and right to receive economic rewards of the entity. These consolidated VIEs are primarily made up of the Tax Credit Funds discussed above.

Net assets (controlling and noncontrolling interests) of all consolidated VIEs totaled $644 million and $640 million as of December 31, 2015 and 2014, respectively, and are included within the balance sheet primarily as other investments of $585 million, other assets of $113 million and other liabilities of $67 million as of December 31, 2015, and other investments of $580 million, other assets of $109 million and other liabilities of $75 million as of December 31, 2014. The Company’s general credit is not exposed to the creditors or beneficial interest holders of these consolidated VIEs. The results of operations and financial positions of each VIE for which the Company is the primary beneficiary, as well as the corresponding noncontrolling interests, are recorded in the consolidated financial statements. Ownership interests held by unrelated third parties in the consolidated VIEs are presented as noncontrolling interests in the equity section of the consolidated financial statements. Losses attributable to noncontrolling interests are excluded from the net income attributable to the Company on the consolidated statements of operations.

The Company is not required and does not intend to provide financial or other support outside of contractual requirements to any VIE.

 

13

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Derivative Instruments

The Company uses derivative instruments to manage exposures and mitigate risks primarily associated with interest rates, equity markets and foreign currency. These derivative instruments primarily include interest rate swaps, futures contracts and options. Certain features embedded in the Company’s indexed products and certain variable annuity contracts require derivative accounting. All derivative instruments are held at fair value and are reflected as other assets or liabilities in the consolidated balance sheets.

The fair value of derivative instruments is determined using various valuation techniques relying predominantly on observable market inputs. These inputs include interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels. In cases where observable inputs are not available, the Company will utilize non-binding broker quotes to determine fair value, and these instruments are classified accordingly in the fair value hierarchy. Price movements of these broker quotes are subject to validation and require approval from the Company’s management. Management uses models to internally value the instruments for comparison to the values received through broker quotes.

For derivatives that are not designated for hedge accounting, the gain or loss on the derivative is recognized in net realized investment gains and losses.

For derivative instruments that are designated and qualify for cash flow hedge accounting, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income and reclassified into earnings in the same period or periods that the hedged transaction impacts earnings. The ineffective portion of the derivative’s change in value, if any, along with any of the derivative’s change in value that is excluded from the assessment of hedge effectiveness, are recorded in net realized investment gains and losses.

The Company’s derivative transaction counterparties are generally financial institutions. To reduce the credit risk associated with open contracts, the Company enters into master netting agreements, which permit the closeout and netting of transactions with the same counterparty upon the occurrence of certain events. In addition, the Company attempts to reduce credit risk by obtaining collateral from counterparties. The determination of the need for and the levels of collateral vary based on an assessment of the credit risk of the counterparty. The Company accepts collateral in the forms of cash and marketable securities.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s view of market assumptions in the absence of observable market information. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In determining fair value, the Company uses various methods, including market, income and cost approaches.

The Company categorizes its financial instruments into a three-level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety.

The Company categorizes assets and liabilities held at fair value in the consolidated balance sheets as follows:

Level 1. Unadjusted quoted prices accessible in active markets for identical assets or liabilities at the measurement date and mutual funds, where the value per share (unit) is determined and published daily and is the basis for current transactions.

Level 2. Unadjusted quoted prices for similar assets or liabilities in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means. Primary inputs to this valuation technique may include comparative trades, bid/asks, interest rate movements, U.S. Treasury rates, London Interbank Offered Rate (“LIBOR”), prime rates, cash flows, maturity dates, call ability, estimated prepayments and/or underlying collateral values.

Level 3. Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimates of the assumptions market participants would use at the measurement date in pricing the asset or liability. Consideration is given to the risk inherent in both the method of valuation and the valuation inputs.

 

14

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

The Company reviews its fair value hierarchy classifications for assets and liabilities quarterly. Changes in the observability of significant valuation inputs identified during these reviews may trigger reclassifications. Reclassifications are reported as transfers at the beginning of the period in which the change occurs.

Fair Value Option. The Company assesses the fair value option election for newly acquired assets or liabilities on a prospective basis. There are no material assets or liabilities for which the Company has elected the fair value option.

Cash and Cash Equivalents

Cash and cash equivalents include highly liquid investments with original maturities of less than three months.

Goodwill

In connection with business acquisitions, the Company recognizes goodwill as the excess of the purchase price or fair value of consideration exchanged over the fair values of tangible assets acquired, liabilities assumed and separately identified intangible assets. Goodwill is not amortized, but is evaluated for impairment at the reporting unit level annually. Goodwill of a reporting unit is tested for impairment on an interim basis, in addition to the annual evaluation, if an event occurs or circumstances change which would more likely than not reduce the fair value of a reporting unit below its carrying amount. If a reporting unit’s fair value is less than its carrying value, the Company will calculate implied goodwill. Goodwill is impaired at the reporting unit level if its carrying value exceeds the implied value of its goodwill.

The process of evaluating goodwill for impairment requires several judgments and assumptions to be made to determine the fair value of the reporting units, including the method used to determine fair value, discount rates, expected levels of cash flows, revenues and earnings and the selection of comparable companies used to develop market-based assumptions. The Company performed its 2015 annual impairment test and determined that no impairment was required. As of December 31, 2015 and 2014, there were no accumulated impairments.

Closed Block

In connection with the sponsored demutualization of Provident Mutual Life Insurance Company (“Provident”) prior to its acquisition by the Company, Provident established a closed block for the benefit of certain classes of individual participating policies that had a dividend scale payable in 2001. Assets were allocated to the closed block in an amount that produces cash flows which, together with anticipated revenues from closed block business, is reasonably expected to be sufficient to provide for (1) payment of policy benefits, specified expenses and taxes, and (2) the continuation of dividends throughout the life of the Provident policies included in the closed block based upon the dividend scales payable for 2001, if the experience underlying such dividend scales continues.

Assets allocated to the closed block benefit only the holders of the policies included in the closed block and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the closed block and other portions of the Company’s general account, any of its separate accounts, or any affiliate of the Company without the approval of the Pennsylvania Insurance Department and ODI. The closed block will remain in effect as long as any policy in the closed block is in force.

If, over time, the aggregate performance of the closed block assets and policies is better than was assumed in funding the closed block, dividends to policyholders will increase. If, over time, the aggregate performance of the closed block assets and policies is less favorable than was assumed in the funding, dividends to policyholders could be reduced. If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from the Company’s assets outside of the closed block, which are general account assets.

The assets and liabilities allocated to the closed block are recorded in the Company’s consolidated financial statements on the same basis as other similar assets and liabilities. The carrying amount of closed block liabilities in excess of the carrying amount of closed block assets at the date Provident was acquired by the Company represents the maximum future earnings from the assets and liabilities designated to the closed block that can be recognized in income, for the benefit of stockholders, over the period the policies in the closed block remain in force.

If actual cumulative earnings exceed expected cumulative earnings, the expected earnings are recognized in income. This is because the excess actual cumulative earnings over expected cumulative earnings, which represents undistributed accumulated earnings attributable to policyholders, is recorded as a policyholder dividend obligation. Therefore, the excess will be paid to closed block policyholders as an additional policyholder dividend expense in the future unless it is otherwise offset by future performance of the closed block that is less favorable than originally expected. If actual cumulative performance is less favorable than expected, actual earnings will be recognized in income.

 

15

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

The principal cash flow items that affect the amount of closed block assets and liabilities are premiums, net investment income, purchases and sales of investments, policyholder benefits, policyholder dividends, premium taxes and income taxes. The principal income and expense items excluded from the closed block are management and maintenance expenses, commissions and net investment income and realized gains and losses on investments held outside of the closed block that support the closed block business, all of which enter into the determination of total gross margins of closed block policies. See Note 10 for further disclosure.

Separate Accounts

Separate account assets and liabilities represent contractholders’ funds that have been legally segregated into accounts with specific investment objectives. In the separate account, investment income and gains and losses on investments accrue directly to, and investment risk is borne by, the contractholder. Separate account assets are primarily comprised of public, privately-registered and non-registered mutual funds. Separate account assets are recorded at fair value based on the methodology that would be applicable to the underlying assets. The value of separate account liabilities is set to equal the fair value for separate account assets.

Federal Income Taxes

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income or loss in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce a deferred tax asset to the amount expected to be realized. Interest expense and any associated penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) are recorded as income tax expenses.

The Company provides for federal income taxes based on amounts the Company believes it ultimately will owe. Inherent in the provision for federal income taxes are estimates regarding the deductibility of certain items and the realization of certain tax credits. In the event the ultimate deductibility of certain items or the realization of certain tax credits differs from estimates, the Company may be required to change the provision for federal income taxes recorded in the consolidated financial statements, which could be significant.

Tax reserves are reviewed regularly and are adjusted as events occur that the Company believes impact its liability for additional taxes, such as the lapsing of applicable statutes of limitations, conclusion of tax audits or substantial agreement with taxing authorities on the deductibility/nondeductibility of uncertain items, additional exposure based on current calculations, identification of new issues, release of administrative guidance or rendering of a court decision affecting a particular tax issue. The Company believes its tax reserves reasonably provide for potential assessments that may result from IRS examinations and other tax-related matters for all open tax years.

Effective January 1, 2015, the Company is included in the NMIC consolidated federal income tax return. Prior to 2015, NLIC filed a separate consolidated federal income tax return with its subsidiaries.

Participating Business

Participating business, which refers to policies that participate in profits through policyholder dividends, represented approximately 3% of the Company’s life insurance in force in 2015 (4% in 2014 and 2013) and 35% of the number of life insurance policies in force in 2015 (37% in 2014 and 38% in 2013). The provision for policyholder dividends was based on the respective year’s dividend scales and has been included in future policy benefits and claims in the consolidated balance sheets.

Subsequent Events

The Company evaluated subsequent events through February 23, 2016, the date the consolidated financial statements were issued.

 

(3) Recently Issued Accounting Standards

Adopted Accounting Standards

On January 1, 2015, the Company adopted ASU 2014-04, which amends existing guidance in ASC 310, Receivables and ASC 360, Property, Plant and Equipment. The amended guidance provides clarification on the accounting for situations in which a creditor obtains collateral assets in satisfaction of all or part of a receivable. The adoption of this guidance had no impact on the Company’s consolidated financial statements.

 

16

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

On January 1, 2015, the Company adopted ASU 2014-11, which amends existing guidance in ASC 860, Transfers and Servicing. The amended guidance amends certain criteria when evaluating effective control in certain repurchase agreement transactions and eliminates specific guidance on repurchase financing and requires that these transactions be treated in the same manner as repurchase transactions. Additionally, the amended guidance requires additional disclosures for repurchase agreements. The adoption of this guidance had no impact on the Company’s consolidated financial statements.

On January 1, 2015, the Company adopted ASU 2014-14, which amends ASC 310, Receivables. The amended guidance requires creditors to classify certain foreclosed government guaranteed mortgage loans as a receivable from the guarantor that is measured at the amount expected to be recovered under the guarantee, without treating the guarantee as a separate unit of account. The adoption of this guidance had no impact on the Company’s consolidated financial statements.

On January 1, 2015, the Company adopted ASU 2014-17, which amends ASC 805, Business Combinations. The amended guidance gives an acquired entity the option to apply pushdown accounting in its stand-alone financial statements. The adoption of this guidance had no impact on the Company’s consolidated financial statements.

On January 1, 2015, the Company adopted ASU 2015-02, which amends existing guidance in ASC 810, Consolidation. The amended guidance changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (VIE), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The adoption of this guidance had no impact on the Company’s consolidated financial statements.

Pending Accounting Standards

In January 2015, the FASB issued ASU 2015-01, which amends existing guidance in ASC 225, Income Statement. The amended guidance eliminates the concept of extraordinary items. The Company will adopt the ASU for annual periods beginning January 1, 2016. The guidance will have no material impact to the Company upon adoption.

In April 2015, the FASB issued ASU 2015-03, which amends existing guidance in ASC 835, Interest. The amended guidance presents debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability. The Company will adopt the ASU for annual periods beginning January 1, 2016. The guidance will have no material impact to the Company upon adoption.

In May 2015, the FASB issued ASU 2015-07, which amends ASC 820, Fair Value Measurements. The amended guidance eliminates the requirement to categorize investments using net asset value as fair value within the fair value hierarchy. The Company will adopt the ASU for annual periods beginning January 1, 2016. The adoption of this guidance will result in changes to disclosures only.

In May 2015, the FASB issued ASU 2015-09, which amends ASC 944, Financial Services-Insurance. The amended guidance requires additional disclosures for short duration insurance contracts. The Company will adopt the ASU for annual periods beginning January 1, 2016. The guidance will have no material impact to the Company upon adoption.

In August 2015, the FASB issued ASU 2015-14, which amends ASC 606, Revenue from Contracts from Customers. The amended guidance defers the effective date of ASU 2014-09 for all entities by one year. The Company does not expect the adoption of this guidance to have any impact on the Company’s consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Liabilities. The amended guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The Company will adopt the ASU for interim and annual periods beginning January 1, 2018. The Company is currently in the process of determining the impact of adoption.

 

(4) Certain Long-Duration Contracts

Variable Annuity Contracts

The Company provides various forms of guarantees to benefit the related contractholders of variable annuity contracts issued through separate accounts. The Company provides four primary guarantee types: (1) GMDB, (2) GLWB, (3) GMAB and (4) guaranteed minimum income benefits (“GMIB”).

 

17

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

The GMDB, offered on variable annuity contracts, provides a specified minimum return upon death. Many of these death benefits are spousal, whereby a death benefit will be paid upon death of the first spouse. The survivor has the option to terminate the contract or continue it by having the death benefit paid into the contract and having a second death benefit paid upon the survivor’s death.

The GLWB, primarily offered in the Company’s Lifetime Income products, are living benefits that provide for enhanced retirement income security without the liquidity loss associated with annuitization. The withdrawal rates vary based on the age when withdrawals begin and are applied to a benefit base to determine the guaranteed lifetime income amount available to a contractholder. The benefit base is equal to the variable annuity premium at contract issuance and may increase as a result of a feature driven by minimum return and policy duration.

The GMAB, which was offered in the Company’s Capital Preservation Plus product, is a living benefit that provides the contractholder with a guaranteed return of deposits, adjusted proportionately for withdrawals, after a specified time period (5, 7 or 10 years) selected by the contractholder at the issuance of the variable annuity contract. In some cases, the contractholder also has the option, after a specified time period, to drop the guarantee and continue the variable annuity contract without the GMAB. In general, the GMAB requires a minimum allocation to guaranteed term options or adherence to limitations required by an approved asset allocation strategy.

The GMIB, which was offered with several variable annuity contracts, is a living benefit that provides the contractholder with a guaranteed annuitization stream of income.

The following table summarizes information regarding variable annuity contracts with guarantees invested in general and separate accounts, as of the dates indicated (a contract may contain multiple guarantees):

 

     December 31, 2015      December 31, 2014  

(in millions)

    General
account
value		      Separate
account
value		      Net
amount
at risk1		      Average
age2		      General
account
value		      Separate
account
value		      Net
amount
at risk1		      Average
age2		  

Contracts with GMDB:

                        

Return of net deposits

    $ 885       $ 24,452       $ 208         66       $ 872       $ 23,079       $ 21         65   

Minimum return or anniversary contract value

      1,817         31,511         1,133         70         1,918         33,662         292         69   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total contracts with GMDB

    $ 2,702       $ 55,963       $ 1,341         68       $ 2,790       $ 56,741       $ 313         68   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

GLWB Minimum return or anniversary contract value3

    $ 141       $ 32,187       $ 142         67       $ 135       $ 31,406       $ 195         66   

GMAB Return of net deposits3

    $ 19       $ 496       $ 2         66       $ 43       $ 1,177       $ —           67   

GMIB Minimum return or anniversary contract value

    $ 46       $ 380       $ 1         67       $ 45       $ 451       $ 1         66   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

1 Net amount at risk is calculated on a policy-level basis and equals the respective guaranteed benefit less the account value (or zero if the account value exceeds the guaranteed benefit).
2 Represents the weighted average attained age of contractholders at the respective date.
3 Certain prior period amounts related to contracts with a hybrid accumulation/withdrawal benefit have been reclassified to conform with current period presentation.

 

18

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

The following table summarizes the reserve balances for guarantees on variable annuity contracts, as of the dates indicated:

 

     December 31,  

(in millions)

    2015      2014  

GMDB

    $ 148       $ 76   

GLWB1

    $ 180       $ 185   

GMAB1

    $ —         $ (8 ) 

GMIB

    $ 2       $ 1   

 

1 Certain prior period amounts related to contracts with a hybrid accumulation/withdrawal benefit have been reclassified to conform with current period presentation.

During 2015, the Company recognized a net decrease in the liability for future policy benefits and claims in conjunction with the annual comprehensive review of assumptions, primarily related to the Company’s assumption for participant benefit utilization of the net settlement option within the GLWB. The Company changed its estimate to reduce expected utilization of the net settlement option. For the year ended December 31, 2015, the change in estimate resulted in net realized investment gains of $187 million, an increase to benefits and claims of $164 million and lower amortization of deferred policy acquisition costs of $28 million.

Paid claims for GMDBs were $20 million and $11 million for the years ended December 31, 2015 and 2014, respectively.

Paid claims for GLWBs, GMABs and GMIBs were immaterial for the years ended December 31, 2015 and 2014.

The following table summarizes the account balances of deferred variable annuity contracts with guarantees invested in separate accounts, as of the dates indicated:

 

     December 31,  

(in millions)

    2015      2014  

Mutual funds:

      

Bond

    $ 5,371       $ 5,280   

Domestic equity

      46,469         47,316   

International equity

      3,001         2,969   
  

 

 

     

 

 

  

Total mutual funds

    $ 54,841       $ 55,565   

Money market funds

      1,122         1,176   
  

 

 

     

 

 

  

Total1

    $ 55,963       $ 56,741   
  

 

 

     

 

 

  

 

1 Excludes $31.3 billion as of December 31, 2015 and 2014 of separate account assets not related to deferred variable annuity contracts with guarantees, primarily attributable to retirement plan, variable universal life and COLI products.

Fixed Annuity Contracts

The Company offers certain fixed annuity products with GMDB and GLWB. As of December 31, 2015 and 2014, the general account value for contracts with GMDB was $2.7 billion and $351 million, respectively, which includes $1.4 billion and $185 million, respectively, of general account value relating to contracts that also have GLWB. The net amount at risk and reserve balances on these guarantees were immaterial as of December 31, 2015 and 2014. Paid claims for GMDB were immaterial for the years ended December 31, 2015 and 2014. There were no paid claims for GLWB during the years ended December 31, 2015 and 2014.

Universal and Variable Universal Life Insurance Contracts

The Company offers certain universal life and variable universal life insurance products with no-lapse guarantees. These no-lapse guarantees provide that a policy will not lapse so long as the policyholder makes minimum premium payments. The reserve balances on these guarantees were $548 million and $401 million as of December 31, 2015 and 2014, respectively. Paid claims on these guarantees were immaterial for the years ended December 31, 2015 and 2014.

 

19

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

The following table summarizes information regarding universal and variable universal life insurance contracts with no-lapse guarantees invested in general and separate accounts, as of the dates indicated:

 

(in millions)

    General
account
value		      Separate
account
value		      Adjusted
insurance
in force1		      Average
age2		  

December 31, 2015

    $ 2,473       $ 2,053       $ 48,140         51   

December 31, 2014

    $ 1,954       $ 2,191       $ 41,484         51   

 

1 The adjusted insurance in force is calculated on a policy-level basis and equals the respective guaranteed death benefit less the account value and reinsurance.
2 Represents the weighted average attained age of contractholders at the respective date.

 

(5) Deferred Policy Acquisition Costs

The following table summarizes changes in the DAC balance, as of the dates indicated:

 

     December 31,  

(in millions)

    2015      2014      2013  

Balance at beginning of year

    $ 4,063       $ 3,778       $ 3,249   

Capitalization of DAC

      870         685         604   

Amortization of DAC, excluding unlocks

      (326 )       (397 )       (373 ) 

Amortization of DAC related to unlocks

      258         190         (1 ) 

Adjustments to DAC related to unrealized gains and losses on available-for-sale securities

      335         (193 )       299   
  

 

 

     

 

 

     

 

 

  

Balance at end of year

    $ 5,200       $ 4,063       $ 3,778   
  

 

 

     

 

 

     

 

 

  

During 2015, the Company recognized a decrease in DAC amortization of $258 million as a result of the annual comprehensive review of model assumptions and enhancements. The impact was primarily related to revisions made to the Company’s economic hedging strategies in conjunction with the change in estimate discussed in Note 4, as well as a decrease in the expected lapse rates for certain variable annuity products.

During 2014, the Company recognized a decrease in DAC amortization of $190 million as a result of the annual comprehensive review of model assumptions and enhancements. The updated assumptions were primarily related to the actual performance of the block of business since the prior year review and the expectations for lapses, partially offset by an update to the Company’s long-term assumptions for separate account investment performance.

During 2013, the net change in DAC amortization as a result of the annual comprehensive review of model assumptions was immaterial.

 

20

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

(6) Investments

Available-for-Sale Securities

The following table summarizes the amortized cost, unrealized gains and losses and fair value of available-for-sale securities, as of the dates indicated:

 

(in millions)

    Amortized
cost		      Unrealized
gains		      Unrealized
losses		      Fair value  

December 31, 2015

            

Fixed maturity securities:

            

U.S. government and agencies

    $ 343       $ 59       $ —         $ 402   

Obligations of states, political subdivisions and foreign governments

      2,137         241         11         2,367   

Corporate public securities

      23,174         868         752         23,290   

Corporate private securities

      5,082         203         115         5,170   

Residential mortgage-backed securities

      3,036         152         42         3,146   

Commercial mortgage-backed securities

      1,539         37         11         1,565   

Asset-backed securities

      1,685         19         74         1,630   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturity securities

    $ 36,996       $ 1,579       $ 1,005       $ 37,570   

Equity securities

      7         14         —           21   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total available-for-sale securities

    $ 37,003       $ 1,593       $ 1,005       $ 37,591   
  

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2014

            

Fixed maturity securities:

            

U.S. government and agencies

    $ 448       $ 79       $ —         $ 527   

Obligations of states, political subdivisions and foreign governments

      1,966         320         1         2,285   

Corporate public securities

      19,851         1,519         120         21,250   

Corporate private securities

      4,398         286         34         4,650   

Residential mortgage-backed securities

      3,694         190         45         3,839   

Commercial mortgage-backed securities

      1,431         74         3         1,502   

Asset-backed securities

      1,410         27         72         1,365   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturity securities

    $ 33,198       $ 2,495       $ 275       $ 35,418   

Equity securities

      6         15         —           21   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total available-for-sale securities

    $ 33,204       $ 2,510       $ 275       $ 35,439   
  

 

 

     

 

 

     

 

 

     

 

 

  

The fair value of the Company’s available-for-sale securities may fluctuate significantly in response to changes in interest rates, investment quality ratings and credit spreads. The Company has the ability and intent to hold equity securities until recovery. The Company does not have the intent to sell, nor is it more likely than not that it will be required to sell, fixed maturity securities in an unrealized loss position.

 

21

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

The following table summarizes the amortized cost and fair value of fixed maturity securities, by contractual maturity, as of December 31, 2015. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without early redemption penalties.

 

(in millions)

    Amortized
cost		      Fair
value		  

Fixed maturity securities:

      

Due in one year or less

    $ 977       $ 982   

Due after one year through five years

      10,512         10,861   

Due after five years through ten years

      9,302         9,295   

Due after ten years

      9,945         10,091   
  

 

 

     

 

 

  

Subtotal

    $ 30,736       $ 31,229   

Residential mortgage-backed securities

      3,036         3,146   

Commercial mortgage-backed securities

      1,539         1,565   

Asset-backed securities

      1,685         1,630   
  

 

 

     

 

 

  

Total fixed maturity securities

    $ 36,996       $ 37,570   
  

 

 

     

 

 

  

The following table summarizes the components of net unrealized gains and losses, as of the dates indicated:

 

     December 31,  

(in millions)

    2015      2014  

Net unrealized gains on available-for-sale securities, before adjustments and taxes1

    $ 588       $ 2,235   

Adjustment to DAC and other expense

      (33 )       (372 ) 

Adjustment to future policy benefits and claims

      (16 )       (159 ) 

Adjustment to policyholder dividend obligations

      (67 )       (120 ) 

Deferred federal income tax expense

      (156 )       (548 ) 
  

 

 

     

 

 

  

Net unrealized gains on available-for-sale securities

    $ 316       $ 1,036   
  

 

 

     

 

 

  

 

1 Includes net unrealized losses of $20 million and $9 million as of December 31, 2015 and 2014, respectively, related to the non-credit portion of other-than-temporarily impaired securities.

The following table summarizes the change in net unrealized gains and losses reported in accumulated other comprehensive income, for the years ended:

 

     December 31,  

(in millions)

    2015      2014  

Balance at beginning of year

    $ 1,036       $ 601   

Unrealized gains and losses arising during the year:

      

Net unrealized (losses) gains on available-for-sale securities before adjustments

      (1,662 )       939   

Non-credit impairments and subsequent changes in fair value of impaired debt securities

      (11 )       31   

Net adjustment to DAC and other expense

      339         (196 ) 

Net adjustment to future policy benefits and claims

      143         (70 ) 

Net adjustment to policyholder dividend obligations

      53         (35 ) 

Related federal income tax benefit (expense)

      401         (234 ) 
  

 

 

     

 

 

  

Unrealized (losses) gains on available-for-sale securities

    $ (737 )     $ 435   

Less: Reclassification adjustment for net losses realized on available-for-sale securities, net of tax benefit ($9 and $0 as of

      

December 31, 2015 and 2014, respectively)

      (17 )       —     
  

 

 

     

 

 

  

Net unrealized (losses) gains on available-for-sale securities

    $ (720 )     $ 435   
  

 

 

     

 

 

  

Balance at end of year

    $ 316       $ 1,036   
  

 

 

     

 

 

  

 

22

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

The following table summarizes, by asset class, available-for-sale securities, in an unrealized loss position based on the amount of time each type of security has been in an unrealized loss position, as well as the related fair value, as of the dates indicated:

 

     Less than or equal to one year      More than one year      Total  

(in millions)

    Fair
value		      Unrealized
losses		      Fair
value		      Unrealized
losses		      Unrealized
losses1		  

December 31, 2015

               

Fixed maturity securities:

               

Corporate public securities

    $ 8,170       $ 455       $ 975       $ 297       $ 752   

Corporate private securities

      1,642         56         418         59         115   

Asset-backed securities

      654         7         756         67         74   

Other

      1,271         23         504         41         64   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total2

    $ 11,737       $ 541       $ 2,653       $ 464       $ 1,005   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2014

               

Fixed maturity securities:

               

Corporate public securities

    $ 1,642       $ 63       $ 1,578       $ 57       $ 120   

Corporate private securities

      589         27         256         7         34   

Asset-backed securities

      662         5         493         67         72   

Other

      268         2         688         47         49   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total2

    $ 3,161       $ 97       $ 3,015       $ 178       $ 275   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

1 As of December 31, 2015 and 2014, there were $448 million and $66 million, respectively, of unrealized losses related to available-for-sale securities with a fair value to amortized cost ratio of less than 80%.
2 Represents 1,059 and 541 available-for-sale securities in an unrealized loss position as of December 31, 2015 and 2014, respectively.

The Company believes the unrealized losses on these available-for-sale securities represent temporary fluctuations in economic factors that are not indicative of other-than-temporary-impairment.

Mortgage Loans, Net of Allowance

The following table summarizes the amortized cost of mortgage loans by method of evaluation for credit loss, and the related valuation allowances by type of credit loss, as of the dates indicated:

 

     December 31,  

(in millions)

    2015      2014  

Amortized cost:

      

Loans with non-specific reserves

    $ 8,403       $ 7,279   

Loans with specific reserves

      19         17   
  

 

 

     

 

 

  

Total amortized cost

    $ 8,422       $ 7,296   
  

 

 

     

 

 

  

Valuation allowance:

      

Non-specific reserves

    $ 23       $ 21   

Specific reserves

      3         5   
  

 

 

     

 

 

  

Total valuation allowance

    $ 26       $ 26   
  

 

 

     

 

 

  

Mortgage loans, net of allowance

    $ 8,396       $ 7,270   
  

 

 

     

 

 

  

The following table summarizes activity in the valuation allowance for mortgage loans, for the years ended:

 

     December 31,  

(in millions)

    2015      2014      2013  

Balance at beginning of year

    $ 26       $ 35       $ 44   

Current period provision1

      2         (8 )       (4 ) 

Recoveries2

      (2 )       (1 )       (5 ) 
  

 

 

     

 

 

     

 

 

  

Balance at end of year

    $ 26       $ 26       $ 35   
  

 

 

     

 

 

     

 

 

  

 

23

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

1 Includes specific reserve provisions and all changes in non-specific reserves.
2 Includes recoveries on sales and increases in the valuation of loans with specific reserves.

Interest income recognized on commercial mortgage loans with a specific reserve was $2 million, $1 million and $3 million for the years ended December 31, 2015, 2014 and 2013, respectively. The average recorded investment was $14 million, $16 million and $30 million for the years ended December 31, 2015, 2014 and 2013, respectively.

As of December 31, 2015 and 2014, the Company’s mortgage loans classified as delinquent and/or in non-accrual status were immaterial in relation to the total mortgage loan portfolio. The Company had no mortgage loans 90 days or more past due and still accruing interest.

The following table summarizes the LTV ratio and DSC ratios of the mortgage loan portfolio, as of the dates indicated:

 

     LTV ratio      DSC ratio  

(in millions)

    Less
than
90%		      90%
or
greater		      Total1      Greater
than
1.00		      Less
than
1.00		      Total1  

December 31, 2015

                  

Apartment

    $ 2,791       $ —         $ 2,791       $ 2,791       $ —         $ 2,791   

Industrial

      1,221         25         1,246         1,193         53         1,246   

Office

      1,318         3         1,321         1,286         35         1,321   

Retail

      2,765         2         2,767         2,756         11         2,767   

Other

      297         —           297         297         —           297   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total2

    $ 8,392       $ 30       $ 8,422       $ 8,323       $ 99       $ 8,422   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2014

                  

Apartment

    $ 2,267       $ 17       $ 2,284       $ 2,278       $ 6       $ 2,284   

Industrial

      1,165         35         1,200         1,137         63         1,200   

Office

      1,020         20         1,040         994         46         1,040   

Retail

      2,570         11         2,581         2,549         32         2,581   

Other

      191         —           191         191         —           191   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total3

    $ 7,213       $ 83       $ 7,296       $ 7,149       $ 147       $ 7,296   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

1 While these loan quality measurements contribute to management’s assessment of relative credit risk in the commercial mortgage loan portfolio for the dates indicated, based on underwriting criteria and ongoing assessment of the properties’ performance, management believes the amounts, net of valuation allowance, are collectible.
2 As of December 31, 2015, the weighted average DSC ratios for the respective LTV ratio ranges above were 2.02 and 0.83, with a total weighted average DSC ratio of 2.02. As of December 31, 2015, the weighted average LTV ratios for the respective DSC ratio ranges above were 60% and 85%, with a total weighted average LTV ratio of 60%.
3 As of December 31, 2014, the weighted average DSC ratios for the respective LTV ratio ranges above were 1.94 and 0.90, with a total weighted average DSC ratio of 1.93. As of December 31, 2014, the weighted average LTV ratios for the respective DSC ratio ranges above were 60% and 90%, with a total weighted average LTV ratio of 60%.

While these loan quality measurements contribute to management’s assessment of relative credit risk in the mortgage loan portfolio for the dates indicated, based on underwriting criteria and ongoing assessment of the properties’ performance, management believes the amounts, net of valuation allowance, are collectible.

Available-For-Sale Securities on Deposit, Held in Trust and Pledged as Collateral

Available-for-sale securities with a carrying value of $8 million were on deposit with various regulatory agencies as required by law as of December 31, 2015 and 2014. Additionally, available-for-sale securities with a carrying value of $538 million and $683 million were pledged as collateral to secure recoveries under reinsurance contracts and other funding agreements as of December 31, 2015 and 2014, respectively. These securities are primarily included in fixed maturity securities in the consolidated balance sheets.

 

24

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Net Investment Income

The following table summarizes net investment income, by investment type, for the years ended:

 

     December 31,  

(in millions)

    2015      2014      2013  

Fixed maturity securities, available-for-sale

    $ 1,646       $ 1,575       $ 1,565   

Mortgage loans

      390         362         348   

Alternative Investments

      (56 )       (32 )       (68 ) 

Policy loans

      51         51         52   

Other

      12         3         11   
  

 

 

     

 

 

     

 

 

  

Gross investment income

    $ 2,043       $ 1,959       $ 1,908   

Investment expenses

      61         59         59   
  

 

 

     

 

 

     

 

 

  

Net investment income

    $ 1,982       $ 1,900       $ 1,849   
  

 

 

     

 

 

     

 

 

  

Net Realized Investment Gains and Losses, Including Other-Than-Temporary Impairments

The following table summarizes net realized investment gains and losses, including other-than-temporary impairments, by source, for the years ended:

 

     December 31,  

(in millions)

    2015      2014      2013  

Net realized derivative gains (losses)

    $ 120       $ (1,087 )     $ 705   

Realized gains on sales

      11         31         32   

Realized losses on sales

      (37 )       (19 )       (54 ) 

Other

      (11 )       2         —     
  

 

 

     

 

 

     

 

 

  

Net realized investment gains (losses) before other-than-temporary-impairments on fixed maturity securities

    $ 83       $ (1,073 )     $ 683   

Other-than-temporary-impairments on fixed maturity securities1

      (1 )       (5 )       (5 ) 
  

 

 

     

 

 

     

 

 

  

Net realized investment gains (losses), including other-than-temporary-impairments

    $ 82       $ (1,078 )     $ 678   
  

 

 

     

 

 

     

 

 

  

 

1 Other-than-temporary impairments on fixed maturity securities are net $2 million, $1 million and $6 million of non-credit losses included in other comprehensive income for the years ended December 31, 2015, 2014 and 2013, respectively.

Proceeds from the sale of available-for-sale securities were $466 million, $647 million and $1.1 billion during the years ended December 31, 2015, 2014 and 2013, respectively. Gross gains of $11 million, $17 million and $31 million and gross losses of $36 million, $10 million and $50 million were realized on sales of available-for-sale securities during the years ended December 31, 2015, 2014 and 2013, respectively.

The following table summarizes the cumulative credits losses, for the years ended:

 

(in millions)

    December 31,  
   2015      2014      2013  

Cumulative credit losses at beginning of year1

    $ (254 )     $ (272 )     $ (289 ) 

New credit losses

      (1 )       (2 )       (3 ) 

Incremental credit losses

      —           (4 )       (3 ) 

Losses related to securities included in the beginning balance sold or paid down during the period

      31         24         23   
  

 

 

     

 

 

     

 

 

  

Cumulative credit losses at end of year1

    $ (224 )     $ (254 )     $ (272 ) 
  

 

 

     

 

 

     

 

 

  

 

1 Cumulative credit losses are defined as amounts related to the Company’s credit portion of the other-than-temporary impairment losses on debt securities that the Company does not intend to sell and that it is not more likely than not the Company will be required to sell prior to recovery of the amortized cost basis.

 

(7) Derivative Instruments

The Company is exposed to certain risks related to its ongoing business operations which are managed using derivative instruments.

 

25

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Interest rate risk management. In the normal course of business, the Company enters into transactions that expose it to interest rate risk arising from mismatches between assets and liabilities. The Company uses interest rate swaps and futures to reduce or alter interest rate exposure.

Interest rate contracts are used by the Company in association with fixed and variable rate investments to achieve cash flow streams that support certain financial obligations of the Company and to produce desired investment returns. As such, interest rate contracts are generally used to convert fixed rate cash flow streams to variable rate cash flow streams or vice versa. In addition, prior to expiry in June 2015, the Company engaged in an interest rate swap program, which was structured to provide an offset against the negative impact of higher interest rates on the Company’s statutory surplus position and to mitigate the negative impact of lower interest rates on certain guarantees related to variable annuity contracts.

Equity market risk management. The Company issues a variety of insurance products that expose it to equity risks. To mitigate these risks, the Company enters into a variety of derivatives including equity index futures, options and total return swaps.

Other risk management. As part of its regular investing activities, the Company may purchase foreign currency denominated investments. These investments and the associated income expose the Company to volatility associated with movements in foreign exchange rates. As foreign exchange rates change, the increase or decrease in the cash flows of the derivative instrument are intended to mitigate the changes in the functional-currency equivalent cash flows of the hedged item. To mitigate this risk, the Company uses cross-currency swaps, which are included in other derivative contracts in the following tables.

Credit risk associated with derivatives transactions. The Company periodically evaluates the risks within the derivative portfolios due to credit exposure. When evaluating these risks, the Company considers several factors which include, but are not limited to, the counterparty credit risk associated with derivative receivables, the Company’s own credit as it relates to derivative payables, the collateral thresholds associated with each counterparty and changes in relevant market data in order to gain insight into the probability of default by the counterparty. In addition, the impact the Company’s exposure to credit risk could have on the effectiveness of the Company’s hedging relationships is considered. As of December 31, 2015 and 2014, the impact of the exposure to credit risk on the fair value measurement of derivatives and the effectiveness of the Company’s hedging relationships was immaterial.

The following table summarizes the fair value and related notional amounts of derivative instruments, as of the dates indicated:

 

     Derivative assets      Derivative liabilities  

(in millions)

    Fair value      Notional      Fair value      Notional  

December 31, 2015

            

Derivatives designated and qualifying as hedging instruments

    $ 86       $ 725       $ 2       $ 89   

Derivatives not designated as hedging instruments:

            

Interest rate contracts1

    $ 39       $ 875       $ 98       $ 1,059   

Equity contracts

      445         7,329         —           —     

Total return swaps and other derivative contracts

      —           77         6         2   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total derivatives2

    $ 570       $ 9,006       $ 106       $ 1,150   
  

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2014

            

Derivatives designated and qualifying as hedging instruments

    $ 29       $ 381       $ 9       $ 176   

Derivatives not designated as hedging instruments:

            

Interest rate contracts1

    $ 2,602       $ 32,829       $ 2,611       $ 32,756   

Equity contracts

      411         5,990         —           —     

Total return swaps and other derivative contracts

      —           —           44         2,810   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total derivatives2

    $ 3,042       $ 39,200       $ 2,664       $ 35,742   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1 The decreases in the fair value and notional amounts of interest rate contracts are primarily a result of revisions made to the Company’s economic hedging strategies in conjunction with the change in estimate discussed in Note 4.
2 Fair value balance excludes accrued interest on derivative assets and liabilities of $10 and $11 million, respectively, for the year ended December 31, 2015. Fair value balance excludes accrued interest on derivative assets and liabilities of $243 million and $244 million, respectively, for the year ended December 31, 2014.

 

26

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Of the $570 million and $3.0 billion of fair value of total derivative assets at December 31, 2015 and 2014, $48 million and $2.6 billion, respectively, are subject to master netting agreements. The Company received $374 million and $535 million of cash collateral and held $99 million and $64 million, respectively, of securities as off-balance sheet collateral, resulting in an immaterial uncollateralized position as of December 31, 2015 and 2014. Of the $106 million and $2.7 billion of fair value of total derivative liabilities at December 31, 2015 and 2014, $48 million and $2.6 billion, respectively, are subject to master netting agreements. The Company posted $92 million and $330 million of cash collateral and pledged securities with a fair value of $64 million and $174 million, respectively, resulting in an immaterial uncollateralized position as of December 31, 2015 and 2014.

The following table summarizes gains and losses for derivative instruments recognized in net realized investment gains and losses in the consolidated statements of operations, for the years ended:

 

     December 31,  

(in millions)

    2015      2014      2013  

Derivatives designated and qualifying as hedging instruments

    $ —         $ —         $ (1 ) 

Derivatives not designated as hedging instruments:

         

Interest rate contracts

    $ (141 )     $ 142       $ (209 ) 

Equity contracts

      (257 )       (79 )       (776 ) 

Total return swaps

      (44 )       (195 )       (321 ) 

Other derivative contracts

      (6 )       4         (9 ) 

Net interest settlements

      32         20         14   
  

 

 

     

 

 

     

 

 

  

Total derivative losses1

    $ (416 )     $ (108 )     $ (1,302 ) 

Change in embedded derivative liabilities and related fees2

    $ 536       $ (979 )     $ 2,007   
  

 

 

     

 

 

     

 

 

  

Net realized derivative gains (losses)

    $ 120       $ (1,087 )     $ 705   
  

 

 

     

 

 

     

 

 

  

 

1 Included in total derivative losses are economic hedging (losses) gains of $(402) million, $941 million and $(1.8) billion related to the guaranteed benefit annuity programs for the years ended December 31, 2015, 2014 and 2013, respectively. Also included are economic hedging gains (losses) of $52 million, $(1.0) billion and $645 million, respectively, related to the program that protects against the negative impact of higher interest rates on the Company’s statutory surplus position through expiry.
2 During 2015, the annual comprehensive review of model assumptions for the individual variable annuity business produced a favorable impact of $187 million for the year ended December 31, 2015, attributable to the change in estimate discussed in Note 4. During 2014 and 2013, the annual comprehensive review of model assumptions for the individual variable annuity business included a favorable impact for the years ended December 31, 2014 and 2013, primarily due to model enhancements and updated assumptions for discounting and benefit utilization, partially offset by mortality and lapse rates.

 

27

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

(8) Fair Value Measurements

The following table summarizes assets and liabilities held at fair value on a recurring basis as of December 31, 2015:

 

(in millions)

    Level 1      Level 2      Level 3      Total  

Assets

            

Investments:

            

Fixed maturity securities, available-for-sale:

            

U.S. government and agencies

    $ 399       $ 1       $ 2       $ 402   

Obligations of states, political subdivisions and foreign governments

      63         2,304         —           2,367   

Corporate public securities

      —           23,142         148         23,290   

Corporate private securities

      —           4,226         944         5,170   

Residential mortgage-backed securities

      846         2,291         9         3,146   

Commercial mortgage-backed securities

      —           1,565         —           1,565   

Asset-backed securities

      —           1,505         125         1,630   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturity securities, available-for-sale, at fair value

    $ 1,308       $ 35,034       $ 1,228       $ 37,570   

Other investments at fair value1

      270         546         37         853   
  

 

 

     

 

 

     

 

 

     

 

 

  

Investments at fair value

    $ 1,578       $ 35,580       $ 1,265       $ 38,423   
  

 

 

     

 

 

     

 

 

     

 

 

  

Derivative instruments - assets

      —           125         445         570   

Separate account assets

      83,466         1,323         2,449         87,238   
  

 

 

     

 

 

     

 

 

     

 

 

  

Assets at fair value

    $ 85,044       $ 37,028       $ 4,159       $ 126,231   
  

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities

            

Future policy benefits and claims

    $ —         $ —         $ (65 )     $ (65 ) 

Derivative instruments - liabilities

      —           (100 )       (6 )       (106 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities at fair value

    $ —         $ (100 )     $ (71 )     $ (171 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1 Other investments at fair value includes $66 million of trading securities as of December 31, 2015.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2015:

 

(in millions)

    Fixed
maturity
securities2		     Other
investments		      Derivative
assets3		     Separate
account
assets		      Total assets
at fair value		     Liabilities at
fair value3		  

Balance as of December 31, 2014

    $ 1,267      $ 36       $ 411      $ 2,106       $ 3,820      $ (264 ) 

Net (losses) gains

               

In operations1

      (6 )      —           (46 )      18         (34 )      313   

In other comprehensive income

      (44 )      —           —          —           (44 )      —     

Purchases

      142        1         104        325         572        (144 ) 

Sales

      (162 )      —           (24 )      —           (186 )      24   

Transfers into Level 3

      201        —           —          —           201        —     

Transfers out of Level 3

      (170 )      —           —          —           (170 )      —     
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Balance as of December 31, 2015

    $ 1,228      $ 37       $ 445      $ 2,449       $ 4,159      $ (71 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

1 Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets are attributable to contractholders and therefore are not included in the Company’s earnings. The change in unrealized gains (losses) included in operations on assets and liabilities still held at the end of the year was $316 million for future policy benefits and claims, $(9) million for derivative assets, and $2 million for derivative liabilities.
2 Non-binding broker quotes were utilized to determine a fair value of $1.1 billion of total fixed maturity securities as of December 31, 2015.
3 Non-binding broker quotes were utilized to determine a fair value of all Level 3 derivative assets and liabilities.

Transfers into and out of Level 3 during the year ended December 31, 2015 are primarily due to certain corporate private securities priced using unobservable inputs to priced using observable inputs. There were no material transfers between Levels 1 and 2 during the year ended December 31, 2015.

 

28

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Living Benefit Guarantees

The following table summarizes significant unobservable inputs used for fair value measurements for living benefits liabilities, included in future policy benefits and claims and classified as Level 3 as of December 31, 2015:

 

Unobservable Inputs

    Range

Mortality

    0.1% - 8%2

Lapse

    0% - 35%

Wait period

    0 yrs - 30 yrs3

Efficiency of benefit utilization1

    60% - 100%

Discount rate4

    See note 4 below

Index volatility

    15% - 25%

 

1 The unobservable input is not applicable to GMABs.
2 Represents the mortality for the majority of business with living benefits, with policyholders ranging from 45 to 85.
3 A portion of the contractholders could never use the benefit, which would extend the range to an indeterminate period.
4 Incorporates the liquidity and non-performance risk adjustment. The liquidity spread takes into consideration market observables for spreads in illiquid assets. The non-performance risk adjustment reflects an additional spread over LIBOR determined by market observables for similarly rated public bonds.

The following changes in any of the significant unobservable inputs presented in the table above may result in a change in the fair value measurements of the living benefits liability:

Higher mortality rates tend to decrease the value of the liability and lower mortality rates tend to increase the value of the liability.

Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to increase the value of the liability. Factors that impact the predicted lapse rate can include: age, policy duration, policy size, benefit in-the-moneyness, tax status (i.e. qualified or non-qualified), interest rate levels, short-term equity market performance, partial withdrawal behavior and applicable surrender charges. All else being equal, policies that are in-the-money will have lower lapse rates than policies that are out-of-the-money, and policies that have a surrender charge present will have lower lapse rates than policies without a surrender charge.

The assumed wait period and the efficiency of utilization determine the timing and amount of living benefits withdrawals. These assumptions vary by the product type, age of the policyholder, policy size and policy duration. Many products have a bonus feature which enhances the guarantee on every policy anniversary for the first ten years so long as withdrawals have not commenced. All else being equal, policies commencing withdrawals at a time around the year ten bonus will have higher liability values than policies commencing withdrawals 20 years after issue or policies commencing withdrawals only one year after issue. In addition, policies that are assumed to withdraw the maximum permitted amount will have a higher liability value than a policy that is assumed to withdraw less than the maximum allowed amount.

A higher discount rate tends to decrease the value of the liability and a lower discount rate tends to increase the value of the liability.

Higher index volatility tends to increase the value of the liability and lower index volatility tends to decrease the value of the liability.

Indexed Products

The following table summarizes significant unobservable inputs used for fair value measurements for indexed universal life and indexed annuity products classified as Level 3 as of December 31, 2015:

 

Unobservable Inputs

    Range

Mortality

    0% - 4%¹

Lapse

    0% -10%

Index volatility

    15% - 25%

 

1 Represents the mortality for the majority of business, with policyholders ranging from 0 to 75.

The following changes in any of the significant unobservable inputs presented in the table above may result in a change in the fair value measurements of the indexed products:

Higher mortality rates tend to decrease the value of the liability and lower mortality rates tend to increase the value of the liability.

 

29

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to increase the value of the liability. Factors that impact the predicted lapse rate can include: age, policy duration, policy size, and applicable surrender charges. All else being equal, policies with a surrender charge present will have lower lapse rates than policies without a surrender charge.

Higher index volatility tends to increase the value of the liability and lower index volatility tends to decrease the value of the liability.

Separate Accounts

The Company’s separate account assets include an investment in a mutual fund with a non-readily determinable fair value. Net asset value has been used to estimate the fair value of this investment as a practical expedient. The investments are included in Level 3 as they may not be redeemed until the guarantee period expires in 2016. The investment strategy of this fund is to build a portfolio where the assets shall be sufficient to achieve a target portfolio value by the end of the guarantee period. The net asset value of this fund reported in separate account assets was $1.7 billion as of December 31, 2015 and 2014.

The following table summarizes assets and liabilities held at fair value on a recurring basis as of December 31, 2014:

 

(in millions)

    Level 1      Level 2     Level 3     Total  

Assets

          

Investments:

          

Fixed maturity securities, available-for-sale:

          

U.S. government and agencies

    $ 523       $ 1      $ 3      $ 527   

Obligations of states, political subdivisions and foreign governments

      66         2,219        —          2,285   

Corporate public securities

      —           21,158        92        21,250   

Corporate private securities

      —           3,659        991        4,650   

Residential mortgage-backed securities

      1,034         2,796        9        3,839   

Commercial mortgage-backed securities

      —           1,499        3        1,502   

Other asset-backed securities

      —           1,196        169        1,365   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total fixed maturity securities, available-for-sale, at fair value

    $ 1,623       $ 32,528      $ 1,267      $ 35,418   

Other investments at fair value1

      42         899        36        977   
  

 

 

     

 

 

    

 

 

    

 

 

  

Investments at fair value

    $ 1,665       $ 33,427      $ 1,303      $ 36,395   
  

 

 

     

 

 

    

 

 

    

 

 

  

Derivative instruments - assets

      —           2,631        411        3,042   

Separate account assets

      84,583         1,387        2,106        88,076   
  

 

 

     

 

 

    

 

 

    

 

 

  

Assets at fair value

    $ 86,248       $ 37,445      $ 3,820      $ 127,513   
  

 

 

     

 

 

    

 

 

    

 

 

  

Liabilities

          

Future policy benefits and claims at fair value

    $ —         $ —        $ (261 )    $ (261 ) 

Derivative instruments - liabilities

      —           (2,661 )      (3 )      (2,664 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

Liabilities at fair value

    $ —         $ (2,661 )    $ (264 )    $ (2,925 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

 

1 Other investments at fair value includes $21 million of trading securities as of December 31, 2014.

 

30

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2014:

 

(in millions)

    Fixed
maturity
securities2		     Other
investments		     Derivative
assets3		     Separate
account
assets		      Total assets
at fair value		     Liabilities at
fair value3		  

Balance as of December 31, 2013

    $ 1,088      $ 45      $ 343      $ 2,083       $ 3,559      $ 1,005   

Net gains (losses)

              

In operations1

      (5 )      6        40        23         64        (1,269 ) 

In other comprehensive income

      21        1        —          —           22        —     

Purchases

      121        —          46        —           167        —     

Sales

      (241 )      (16 )      (18 )      —           (275 )      —     

Transfers into Level 3

      400        —          —          —           400        —     

Transfers out of Level 3

      (117 )      —          —          —           (117 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Balance as of December 31, 2014

    $ 1,267      $ 36      $ 411      $ 2,106       $ 3,820      $ (264 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

1 Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets are attributable to contractholders and therefore are not included in the Company’s earnings. The change in unrealized (losses) gains included in operations on assets and liabilities still held as of the end of the year was $(1.3) billion for future policy benefits and claims, $154 million for derivative assets and $6 million for other investments at fair value.
2 Non-binding broker quotes were utilized to determine a fair value of $1.1 billion of total fixed maturity securities as of December 31, 2014.
3 Non-binding broker quotes were utilized to determine a fair value of all Level 3 derivative assets and liabilities.

Transfers into and out of Level 3 during the year ended December 31, 2014 are primarily due to certain corporate private securities and other asset-backed securities, which changed pricing sources between broker quotes and independent pricing services. There were no transfers between Levels 1 and 2 during the year ended December 31, 2014.

Financial Instruments Not Carried at Fair Value

The following table summarizes the carrying value and fair value of the Company’s financial instruments not carried at fair value as of the dates indicated. The valuation techniques used to estimate these fair values are described below.

 

     December 31, 2015      December 31, 2014  

(in millions)

    Carrying
value		      Fair
value		      Level 2      Level 3      Carrying
value		      Fair
value		      Level 2      Level 3  

Assets

                        

Investments:

                        

Mortgage loans, net of allowance

    $ 8,396       $ 8,462       $ —         $ 8,462       $ 7,270       $ 7,616       $ —         $ 7,616   

Policy loans

    $ 993       $ 993       $ —         $ 993       $ 992       $ 992       $ —         $ 992   

Other investments

    $ 71       $ 71       $ —         $ 71       $ 60       $ 60       $ —         $ 60   

Liabilities

                        

Investment contracts

    $ 27,301       $ 25,822       $ —         $ 25,822       $ 23,470       $ 21,742       $ —         $ 21,742   

Short-term debt

    $ 400       $ 400       $ —         $ 400       $ 660       $ 660       $ —         $ 660   

Long-term debt

    $ 707       $ 941       $ 934       $ 7       $ 709       $ 1,069       $ 1,060       $ 9   

Mortgage loans, net of allowance. The fair values of mortgage loans are estimated using discounted cash flow analyses based on interest rates currently being offered for similar loans to borrowers with similar credit ratings.

Policy loans. The carrying amount reported in the consolidated balance sheets approximates fair value.

Other investments. Other investments not held at fair value consist of FHLB stock. The carrying amount reported in the consolidated balance sheets approximates fair value.

 

31

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Investment contracts. For investment contracts without defined maturities, fair value is the amount payable on demand, net of surrender charges. For investment contracts with known or determined maturities, fair value is estimated using discounted cash flow analysis. Interest rates used in this analysis are similar to currently offered contracts with maturities consistent with those remaining for the contracts being valued. The fair value of adjustable rate contracts approximates their carrying value.

Short-term debt. The carrying amount reported in the consolidated balance sheets approximates fair value.

Long-term debt. The fair values for long-term debt are based on estimated market prices using observable inputs from similar debt instruments.

 

(9) Goodwill

The following table summarizes changes in the carrying value of goodwill by segment for the years indicated:

 

(in millions)

    Retirement
Plans		      Individual
Products &
Solutions - Life
and NBSG		      Total  

Balance as of December 31, 20131

    $ 25       $ 175       $ 200   

Adjustments

      —           —           —     
  

 

 

     

 

 

     

 

 

  

Balance as of December 31, 20141

    $ 25       $ 175       $ 200   

Adjustments

      —           —           —     
  

 

 

     

 

 

     

 

 

  

Balance as of December 31, 20151

    $ 25       $ 175       $ 200   
  

 

 

     

 

 

     

 

 

  

 

1 The goodwill balances have not been previously impaired.

 

32

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

(10) Closed Block

The amounts shown in the following tables for assets, liabilities, revenues and expenses of the closed block are those that enter into the determination of amounts that are to be paid to policyholders.

The following table summarizes financial information for the closed block, as of the dates indicated:

 

     December 31,  

(in millions)

    2015      2014  

Liabilities:

      

Future policyholder benefits

    $ 1,637       $ 1,669   

Policyholder funds and accumulated dividends

      138         139   

Policyholder dividends payable

      21         22   

Policyholder dividend obligation

      99         152   

Other policy obligations and liabilities

      35         33   
  

 

 

     

 

 

  

Total liabilities

    $ 1,930       $ 2,015   
  

 

 

     

 

 

  

Assets:

      

Fixed maturity securities, available-for-sale

    $ 1,316       $ 1,336   

Mortgage loans, net of allowance

      235         272   

Policy loans

      146         149   

Other assets

      71         86   
  

 

 

     

 

 

  

Total assets

    $ 1,768       $ 1,843   
  

 

 

     

 

 

  

Excess of reported liabilities over assets

      162         172   
  

 

 

     

 

 

  

Portion of above representing other comprehensive income:

      

(Decrease) increase in unrealized gain on fixed maturity securities, available-for-sale

    $ (53 )     $ 35   

Adjustment to policyholder dividend obligation

      53         (35 ) 
  

 

 

     

 

 

  

Total

    $ —         $ —     
  

 

 

     

 

 

  

Maximum future earnings to be recognized from assets and liabilities

    $ 162       $ 172   
  

 

 

     

 

 

  

Other comprehensive income:

      

Fixed maturity securities, available-for-sale:

      

Fair value

    $ 1,316       $ 1,336   

Amortized cost

      1,249         1,216   

Shadow policyholder dividend obligation

      (67 )       (120 ) 
  

 

 

     

 

 

  

Net unrealized appreciation

    $ —         $ —     
  

 

 

     

 

 

  

 

33

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

The following table summarizes closed block operations for the years ended:

 

     December 31,  

(in millions)

    2015      2014      2013  

Revenues:

         

Premiums

    $ 58       $ 61       $ 66   

Net investment income

      87         93         94   

Realized investment gains

      1         1         —     

Realized losses credited to policyholder benefit obligation

      (5 )       (5 )       (4 ) 
  

 

 

     

 

 

     

 

 

  

Total revenues

    $ 141       $ 150       $ 156   
  

 

 

     

 

 

     

 

 

  

Benefits and expenses:

         

Policy and contract benefits

    $ 122       $ 124       $ 123   

Change in future policyholder benefits and interest credited to policyholder accounts

      (33 )       (34 )       (29 ) 

Policyholder dividends

      40         43         44   

Change in policyholder dividend obligation

      (4 )       (1 )       3   

Other expenses

      1         2         (2 ) 
  

 

 

     

 

 

     

 

 

  

Total benefits and expenses

    $ 126       $ 134       $ 139   
  

 

 

     

 

 

     

 

 

  

Total revenues, net of benefits and expenses, before federal income tax expense

    $ 15       $ 16       $ 17   

Federal income tax expense

      5         6         6   
  

 

 

     

 

 

     

 

 

  

Revenues, net of benefits and expenses and federal income tax expense

    $ 10       $ 10       $ 11   
  

 

 

     

 

 

     

 

 

  

Maximum future earnings from assets and liabilities:

         

Beginning of period

    $ 172       $ 182       $ 193   

Change during period

      (10 )       (10 )       (11 ) 
  

 

 

     

 

 

     

 

 

  

End of period

    $ 162       $ 172       $ 182   
  

 

 

     

 

 

     

 

 

  

Cumulative closed block earnings from inception through December 31, 2015, 2014 and 2013 were higher than expected as determined in the actuarial calculation. Therefore, policyholder dividend obligations (excluding the adjustment for unrealized gains on available-for-sale securities) were $32 million, $32 million and $28 million as of December 31, 2015, 2014 and 2013, respectively.

 

(11) Short-Term Debt

The Company classifies debt as short-term if the maturity date at inception is less than one year.

The following table summarizes the carrying value of short-term debt and weighted average annual interest rates, as of the dates indicated:

 

     December 31,  

(in millions)

    2015      2014  

$750 million commercial paper program (0.45% and 0.00%, respectively)1

    $ 400       $ —     

$600 million commercial paper program (0.00% and 0.20%, respectively)1

      —           264   

$400 million revolving variable rate line of credit (0.00% and 1.57%, respectively)

      —           396   
  

 

 

     

 

 

  

Total short-term debt

    $ 400       $ 660   
  

 

 

     

 

 

  

 

1 On December 4, 2015, the Company renewed an agreement to increase its $600 million commercial paper program to $750 million.

In November 2015, the Company terminated its $400 million unsecured revolving promissory note and line of credit agreement with its parent company.

 

34

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

In March 2015, the Company renewed an agreement to extend its ability to borrow with the FHLB. This extension, which expires on March 25, 2016, allows the Company access to borrow up to $250 million, which would be collateralized by pledged securities. The Company had $6.7 billion and $8.5 billion in eligible collateral and no amounts outstanding under the agreement as of December 31, 2015 and 2014, respectively. Additionally, in connection with the agreement, NLIC purchased $10 million in capital stock with the FHLB.

On April 2, 2015, Nationwide Mutual Insurance Company (“NMIC”) and NLIC replaced their previous $600 million revolving credit facility with a new credit facility of $750 million, which expires on April 2, 2020. The Company had no amounts outstanding under this agreement as of December 31, 2015 and 2014.

The Company has entered into an agreement with its custodial bank to borrow against the cash collateral that is posted in connection with its securities lending program. The maximum amount available under the agreement is $350 million. The borrowing rate on this program is equal to one-month U.S. LIBOR. The Company had no amounts outstanding under this agreement as of December 31, 2015 and 2014.

The terms of certain debt instruments contain various restrictive covenants, including, but not limited to, minimum statutory surplus defined in the agreements. The Company was in compliance with all covenants as of December 31, 2015 and 2014.

The amount of interest paid on short-term debt was immaterial in 2015, 2014 and 2013.

 

(12) Long-Term Debt

The following table summarizes the carrying value of long-term debt, as of the dates indicated:

 

     December 31,  

(in millions)

    2015      2014  

8.15% surplus note, due June 26, 2032, payable to NFS

    $ 300       $ 300   

7.50% surplus note, due December 17, 2031, payable to NFS

      300         300   

6.75% surplus note, due December 23, 2033, payable to NFS

      100         100   

Other

      7         9   
  

 

 

     

 

 

  

Total long-term debt

    $ 707       $ 709   
  

 

 

     

 

 

  

The Company made interest payments to NFS on surplus notes totaling $54 million for the years ended December 31, 2015, 2014 and 2013. Payments of interest and principal under the notes require the prior approval of the ODI.

 

35

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

(13) Federal Income Taxes

The following table summarizes the components of federal income tax expense (benefit) for the years ended:

 

     December 31,  

(in millions)

    2015      2014      2013  

Current tax expense (benefit)

    $ 76       $ 5       $ (33 ) 

Deferred tax expense (benefit)

      217         (152 )       346   
  

 

 

     

 

 

     

 

 

  

Total tax expense (benefit)

    $ 293       $ (147 )     $ 313   
  

 

 

     

 

 

     

 

 

  

The following table summarizes how the total federal income tax expense (benefit) differs from the amount computed by applying the U.S. federal income tax rate to net income for the years ended:

 

     December 31,  
     2015     2014     2013  

(in millions)

    Amount     %     Amount     %     Amount     %  

Rate reconciliation:

             

Computed (expected tax expense (benefit))

    $ 430        35  %    $ (46 )      35  %    $ 469        35  % 

Dividends received deduction

      (118 )      (10 )%      (87 )      66  %      (112 )      (8 )% 

Tax credits

      (63 )      (5 )%      (53 )      41  %      (82 )      (6 )% 

Other, net

      44        4  %      39        (30 )%      38        2  % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 293        24  %    $ (147 )      112  %    $ 313        23  % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The Company’s current federal income tax liability was $61 million and $18 million as of December 31, 2015 and 2014, respectively.

The Company made $33 million and immaterial payments for the years ended December 31, 2015 and 2014, respectively, and received a refund of $107 million for the year ended 2013.

During 2015 and 2014, the Company recorded a tax (benefit) expense of $(1) million and $16 million, respectively. These changes in estimates were primarily driven by differences in the Company’s separate account dividends received deduction (“DRD”) between the previous year’s estimate and the amount reported on the previous year’s tax return.

As of December 31, 2015, the Company had gross federal net operating loss carryforwards of $248 million, which expire in 2028. In addition, the Company had $218 million in low-income-housing credit carryforwards, which expire between 2024 and 2035, and $197 million in alternative minimum tax credit carryforwards, which have an unlimited carryforward. In addition, the Company had $68 million in foreign tax credit carryforwards which expire between 2019 and 2025. The Company expects to fully utilize all carryforwards.

 

36

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

The following table summarizes the tax effects of temporary differences that gave rise to significant components of the net deferred tax liability included in other liabilities in the consolidated balance sheets, as of the dates indicated:

 

     December 31,  

(in millions)

    2015      20141  

Deferred tax assets

      

Future policy benefits and claims

    $ 825       $ 839   

Tax credit carryforwards

      483         355   

Derivatives, including embedded derivatives

      120         147   

Other

      411         439   
  

 

 

     

 

 

  

Gross deferred tax assets

    $ 1,839       $ 1,780   

Valuation allowance

      (17 )       (17 ) 
  

 

 

     

 

 

  

Gross deferred tax assets, net of valuation allowance

    $ 1,822       $ 1,763   
  

 

 

     

 

 

  

Deferred tax liabilities

      

Deferred policy acquisition costs

    $ 1,502       $ 1,113   

Available-for-sale securities

      315         839   

Other

      249         209   
  

 

 

     

 

 

  

Gross deferred tax liabilities

    $ 2,066       $ 2,161   
  

 

 

     

 

 

  

Net deferred tax liability

    $ 244       $ 398   
  

 

 

     

 

 

  

 

1 Prior year amounts primarily related to certain annuity and life insurance balances have been reclassified between future policy benefits, available-for-sale securities, derivatives, other assets and other liabilities to conform with current year presentation.

In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion of the total gross deferred tax assets will not be realized. Based on the Company’s analysis, it is more likely than not that the results of future operations and the implementation of tax planning strategies will generate sufficient taxable income to enable the Company to realize the deferred tax assets for which the Company has not established valuation allowances.

The following table is a rollforward of the beginning and ending uncertain tax positions, including permanent and temporary differences, but excluding interest and penalties:

 

(in millions)

    2015      2014      2013  

Balance at beginning of period

    $ 38       $ 36       $ 36   

Additions for current year tax positions

      1         3         2   

Reductions for prior years tax positions

      (3 )       (1 )       (2 ) 
  

 

 

     

 

 

     

 

 

  

Balance at end of period

    $ 36       $ 38       $ 36   
  

 

 

     

 

 

     

 

 

  

The Company believes it is reasonably possible that the 2006 to 2010 IRS audit for the NLIC’s consolidated tax returns will be effectively settled within the next 12 months and as a result the liability for unrecognized tax benefits could decrease $15 million.

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities through the 2010 tax year. In 2015, the IRS commenced an examination of the Company’s U.S. income tax returns for the years 2011 through 2012. Any adjustments that may result from IRS examination of tax returns are not expected to have a material effect on the results of operations, cash flows or financial position of the Company.

 

37

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

(14) Statutory Financial Information

Statutory Results

The Company’s life insurance subsidiaries prepare their statutory financial statements in conformity with the statutory accounting practices prescribed and permitted by insurance regulatory authorities, subject to any deviations prescribed or permitted by the applicable state departments of insurance.

Olentangy Reinsurance, LLC (“Olentangy”), a special purpose financial captive insurance company subsidiary of NLAIC domiciled in the State of Vermont, was granted a permitted practice from the State of Vermont that increased NLAIC’s valuation of this subsidiary by $56 million and $66 million as of December 31, 2015 and 2014, respectively, which also allowed NLIC to admit additional deferred tax assets of $8 million and $10 million as of December 31, 2015 and 2014, respectively.

Eagle applies a prescribed practice from the State of Ohio that allows an alternative reserve basis on assumed liabilities, net of third party reinsurance, with respect to specified GMDB and GLWB obligations provided under substantially all of the variable annuity contracts issued and to be issued by NLIC. This prescribed practice decreased NLIC’s valuation of this subsidiary by $64 million as of December 31, 2015 and also reduced NLIC’s admitted deferred tax assets by $10 million.

Statutory accounting practices focus on insurer solvency and differ materially from GAAP primarily due to charging policy acquisition and other costs to expense as incurred, establishing future policy benefits and claims reserves based on different actuarial assumptions, excluding certain assets from statutory admitted assets and valuing investments and establishing deferred taxes on a different basis.

The following table summarizes the statutory net income (loss) and statutory capital and surplus for the Company’s primary life insurance subsidiaries for the years ended:

 

     December 31,  

(in millions)

    2015      2014      2013  

Statutory net income (loss)

         

NLIC

    $ 167       $ 341       $ 262   

NLAIC

    $ (99 )     $ (122 )     $ (103 ) 

Statutory capital and surplus

         

NLIC

    $ 4,567       $ 4,408       $ 3,550   

NLAIC

    $ 735       $ 691       $ 534   
  

 

 

     

 

 

     

 

 

  

Dividend Restrictions

The payment of dividends by NLIC is subject to restrictions set forth in the insurance laws and regulations of the State of Ohio, its domiciliary state. The State of Ohio insurance laws require Ohio-domiciled life insurance companies to notify the Ohio Superintendent of Insurance of all dividends prior to payment and must seek prior regulatory approval to pay a dividend or distribute cash or other property if the fair market value thereof, together with that of other dividends or distributions made in the preceding twelve months, exceeds the greater of (1) 10% of statutory-basis policyholders’ surplus as of the prior December 31 or (2) the statutory-basis net income of the insurer as of the prior December 31. During the years ended December 31, 2015, 2014 and 2013 NLIC did not pay any dividends to NFS. As of January 1, 2016, NLIC has the ability to pay dividends to NFS totaling $457 million without obtaining prior approval.

The State of Ohio insurance laws also require insurers to seek prior regulatory approval for any dividend paid from other than earned surplus. Earned surplus is defined under the State of Ohio insurance laws as the amount equal to the Company’s unassigned funds as set forth in its most recent statutory financial statements, including net unrealized capital gains and losses or revaluation of assets. Additionally, following any dividend, an insurer’s policyholder surplus must be reasonable in relation to the insurer’s outstanding liabilities and adequate for its financial needs. The payment of dividends by the Company may also be subject to restrictions set forth in the insurance laws of the State of New York that limit the amount of statutory profits on the Company’s participating policies (measured before dividends to policyholders) available for the benefit of the Company and its stockholders.

The Company currently does not expect such regulatory requirements to impair the ability to pay operating expenses and dividends in the future.

 

38

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Regulatory Risk-Based Capital

The National Association of Insurance Commissioners’ (“NAIC”) Risk-Based Capital (“RBC”) model law requires every insurer to calculate its total adjusted capital and RBC requirement to ensure insurer solvency. Regulatory guidelines provide for an insurance commissioner to intervene if the insurer experiences financial difficulty, as evidenced by a company’s total adjusted capital falling below established relationships to required RBC. The model includes components for asset risk, liability risk, interest rate exposure and other factors. The State of Ohio imposes minimum RBC requirements that are developed by the NAIC. The formulas in the model for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital to authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, all of which require specified corrective action. NLIC, NLAIC, Olentangy and Eagle each exceeded the minimum RBC requirements for all periods presented.

 

(15) Related Party Transactions

The Company has entered into significant, recurring transactions and agreements with NMIC, other affiliates and subsidiaries as a part of its ongoing operations. These include annuity and life insurance contracts, agreements related to reinsurance, cost sharing, tax sharing, administrative services, marketing, intercompany loans, intercompany repurchases, cash management services and software licensing. In addition, employees of the company participate in several benefit plans sponsored by NMIC, for which the Company has no legal obligations. Measures used to allocate expenses among companies include individual employee estimates of time spent, special cost studies, claims counts, policies in force, direct written premium, paid losses, pro rate share of employees or their salaries, the number of full-time employees, commission expense and other methods agreed to by the participating companies.

Effective January 1, 2015, the Company became party to a revised tax sharing agreement that reflects the new NMIC consolidated federal return group which includes its eligible life and non-life insurance company subsidiaries. The method of allocation among the companies is based upon separate return calculations with current benefit for tax losses and credits utilized in the consolidated return

In addition, Nationwide Services Company, LLC (“NSC”), a subsidiary of NMIC, provides data processing, systems development, hardware and software support, telephone, mail and other services to the Company, based on specified rates for units of service consumed pursuant to the enterprise cost sharing agreement. For the years ended December 31, 2015, 2014 and 2013, the Company was allocated costs from NMIC and NSC totaling $289 million, $275 million and $277 million, respectively.

The Company has issued group annuity and life insurance contracts and performs administrative services for various employee benefit plans sponsored by NMIC or its affiliates. Total account values of these contracts were $3.3 billion as of December 31, 2015 and 2014. Total revenues from these contracts were $129 million, $131 million and $137 million for the years ended December 31, 2015, 2014 and 2013, respectively, and include policy charges, net investment income from investments backing the contracts and administrative fees. Total interest credited to the account balances was $106 million for the year ended December 31, 2015 and $109 million for the years ended December 31, 2014 and 2013.

The Company may underwrite insurance policies for its agents, employees, officers and/or directors. The Company may offer discounts on certain products that are subject to applicable state insurance laws and approvals.

Under the enterprise cost sharing agreement, the Company has a cost sharing arrangement with NMIC to occupy office space. The Company made payments to NMIC of $18 million for the year ended December 31, 2015 and $16 million for the years ended December 31, 2014 and 2013.

NLIC has a reinsurance agreement with NMIC whereby all of NLIC’s accident and health business not ceded to unaffiliated reinsurers is ceded to NMIC on a modified coinsurance basis. Either party may terminate the agreement on January 1 of any year with prior notice. Under a modified coinsurance agreement, the ceding company retains invested assets, and investment earnings are paid to the reinsurer. Under the terms of NLIC’s agreements, the investment risk associated with changes in interest rates is borne by the reinsurer. The ceding of risk does not discharge the original insurer from its primary obligation to the policyholder. Revenues ceded to NMIC for the years ended December 31, 2015, 2014 and 2013 were $209 million, $208 million and $179 million, respectively, while benefits, claims and expenses ceded during these years were $207 million, $217 million and $178 million, respectively.

 

39

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Funds of Nationwide Funds Group (“NFG”), a group of Nationwide businesses that develops, sells and services mutual funds, are offered to the Company’s customers as investment options in certain of the Company’s products. As of December 31, 2015 and 2014, customer allocations to NFG funds totaled $59.1 billion and $58.1 billion, respectively. For the years ended December 31, 2015, 2014 and 2013, NFG paid the Company $196 million, $185 million and $163 million, respectively, for the distribution and servicing of these funds.

Amounts on deposit with NCMC for the benefit of the Company were $501 million and $636 million as of December 31, 2015 and 2014, respectively.

Nationwide Bank has a line of credit agreement with NLIC that allows the Bank access to borrow up to $50 million from NLIC. The borrowing rate on the line of credit is equal to the daily Prime Rate. The Bank had no amounts outstanding under this agreement as of December 31, 2015 and 2014.

Certain annuity products are sold through affiliated companies, which are also subsidiaries of NFS. Total commissions and fees paid to these affiliates were $63 million, $57 million and $54 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The Company provides financing to subsidiaries Nationwide Realty Investors, LTD, a subsidiary of NMIC. As of December 31, 2015 and 2014, the Company had notes receivable outstanding of $238 million and $142 million, respectively.

 

(16) Contingencies

Legal and Regulatory Matters

The Company is subject to legal and regulatory proceedings in the ordinary course of its business. The Company’s legal and regulatory matters include proceedings specific to the Company and other proceedings generally applicable to business practices in the industries in which the Company operates. These matters are subject to many uncertainties, and given their complexity and scope, their outcomes cannot be predicted. Regulatory proceedings could also affect the outcome of one or more of the Company’s litigation matters. Furthermore, it is often not possible to determine the ultimate outcomes of the pending regulatory investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty. Some matters, including certain of those referred to below, are in very preliminary stages, and the Company does not have sufficient information to make an assessment of the plaintiffs’ claims for liability or damages. In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period. In many of the cases, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available. The Company believes, however, that based on currently known information, the ultimate outcome of all pending legal and regulatory matters is not likely to have a material adverse effect on the Company’s consolidated financial position. Nonetheless, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that such outcomes could materially affect the Company’s consolidated financial position or results of operations.

The various businesses conducted by the Company are subject to oversight by numerous federal and state regulatory entities, including but not limited to the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the IRS and state insurance authorities. Such regulatory entities may, in the normal course, be engaged in general or targeted inquiries, examinations and investigations of the Company and/or its affiliates. The financial services industry has been the subject of increasing scrutiny in connection with a broad spectrum of regulatory issues; with respect to all such scrutiny directed at the Company and/or its affiliates, the Company is cooperating with regulators. The Company will cooperate with NMIC insofar as any inquiry, examination or investigation encompasses NMIC’s operations.

On August 15, 2001, NFS and NLIC were named in a lawsuit filed in the United States District Court for the District of Connecticut entitled Lou Haddock, as trustee of the Flyte Tool & Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc. and Nationwide Life Insurance Company. On November 18, 2009, the plaintiffs filed a sixth amended complaint amending the list of named plaintiffs and claiming to represent a class of qualified retirement plan trustees under the Employee Retirement Income Security Act of 1974 (ERISA) that purchased variable annuities from NLIC. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that NLIC and NFS breached ERISA fiduciary duties by allegedly accepting service payments from certain mutual funds. The complaint seeks damages in an amount equivalent to some or all of the payments allegedly received by NFS and NLIC, other unspecified relief for restitution, declaratory and injunctive relief and attorneys’ fees. On November 6, 2009, the Court granted the plaintiffs’ motion for class certification. On October 21, 2010, the District Court dismissed NFS from the lawsuit. On February 6, 2012, the Second Circuit Court of Appeals vacated the November 6, 2009 order granting class certification and remanded the case back to the District Court for further consideration. On September 6, 2013, the District

 

40

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Court granted the plaintiffs’ motion for class certification. On December 11, 2014, the plaintiffs filed a 7th Amended Complaint adding another sub class of defendants that held trust platform products. On December 11, 2014 plaintiffs filed a motion for preliminary approval of settlement. On January 5, 2015, the Court signed the Order Preliminarily Approving Settlement and Approving Form and Manner of Notice. On March 31, 2015, the Court held a Fairness Hearing. On April 9, 2015, the Court entered the Final Order and Consent Judgment. The Company has paid the loss amount. In November 2015, the settlement administrator mailed settlement checks to class members. NFS has made adequate provision for all probable and reasonably estimable losses associated with this settlement.

Indemnifications

In the normal course of business, the Company provides standard indemnifications to contractual counterparties. The types of indemnifications typically provided include breaches of representations and warranties, taxes and certain other liabilities, such as third party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated, and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations.

 

(17) Reinsurance

The following table summarizes the effects of reinsurance on life, accident and health insurance in force and premiums for the years ended:

 

     December 31,  

(in millions)

    2015      2014      2013  

Premiums

         

Direct

    $ 1,144       $ 1,178       $ 1,015   

Assumed from other companies

      —           —           —     

Ceded to other companies

      (358 )       (347 )       (291 ) 
  

 

 

     

 

 

     

 

 

  

Net

    $ 786       $ 831       $ 724   
  

 

 

     

 

 

     

 

 

  

Life, accident and health insurance in force

         

Direct

    $ 260,465       $ 241,936       $ 228,095   

Assumed from other companies

      5         5         6   

Ceded to other companies

      (60,976 )       (59,588 )       (58,310 ) 
  

 

 

     

 

 

     

 

 

  

Net

    $ 199,494       $ 182,353       $ 169,791   
  

 

 

     

 

 

     

 

 

  

Amounts recoverable under reinsurance contracts totaled $647 million, $704 million and $675 million as of December 31, 2015, 2014 and 2013, respectively, and are included in other assets in the consolidated balance sheets.

 

(18) Segment Information

Management views the Company’s business primarily based on its underlying products and uses this basis to define its four reportable segments: Individual Products and Solutions-Annuity, Retirement Plans, Individual Products and Solutions-Life and NBSG and Corporate and Other.

The primary segment profitability measure that management uses is a non-GAAP financial measure called pre-tax operating earnings (loss), which is calculated by adjusting income before federal income taxes to exclude: (1) certain changes in variable annuity liabilities and net realized investment gains and losses, except for operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges); (2) the adjustment to amortization of DAC related to certain changes in variable annuity liabilities and net realized investment gains and losses; and (3) net losses attributable to noncontrolling interest.

 

41

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

Individual Products and Solutions-Annuity

The Individual Products & Solutions - Annuity segment consists of individual annuity products marketed under the Nationwide DestinationSM and other Nationwide-specific or private label brands. Deferred annuity contracts provide the customer with tax-deferred accumulation of savings and flexible payout options including lump sum, systematic withdrawal or a stream of payments for life. In addition, deferred variable annuity contracts provide the customer with access to a wide range of investment options and asset protection features, while deferred fixed annuity contracts generate a return for the customer at a specified interest rate fixed for prescribed periods. Immediate annuities differ from deferred annuities in that the initial premium is exchanged for a stream of income for a certain period and/or for the owner’s lifetime without future access to the original investment. The majority of assets and recent sales for the Individual Products & Solutions - Annuity segment consist of deferred variable annuities.

Retirement Plans

The Retirement Plans segment is comprised of the private and public sector retirement plans businesses. The private sector business primarily includes Internal Revenue Code (“IRC”) Section 401 qualified plans funded through fixed and variable group annuity contracts issued through NLIC. The public sector business primarily includes IRC Section 457 (b) and Section 401(a) governmental plans, both in the form of full-service arrangements that provide plan administration along with fixed and variable group annuities, as well as administration-only business. Across the public and private sector business Nationwide Investment Advisors managed account services are also available. The Retirement Plans segment also includes stable value wrap products and solutions.

Individual Products and Solutions-Life and NBSG

The Individual Products & Solutions - Life and NBSG segment consists of life insurance products, including individual variable universal life, COLI and BOLI products, traditional life insurance products, fixed universal life insurance products and indexed universal life insurance products. Life insurance products provide a death benefit and, for certain products, allow the customer to build cash value on a tax-advantaged basis.

Corporate and Other

The Corporate and Other segment includes certain non-operating changes in variable annuity liabilities and non-operating realized gains and losses, related amortization and other revenues and expenses not allocated to other segments. Additionally, this segment includes the funding agreements with the FHLB.

 

42

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

The following tables summarize the Company’s business segment operating results for the years ended:

 

(in millions)

    Individual
Products
and
Solutions-
Annuity		     Retirement
Plans		      Individual
Products
and
Solutions-
Life and
NBSG		     Corporate
and Other		     Total  

December 31, 2015

            

Revenues:

            

Policy charges

    $ 1,259        111         846        —        $ 2,216   

Premiums

      459        —           292        35        786   

Net investment income

      591        752         602        37        1,982   

Non-operating changes in variable annuity liabilities and net realized investment losses1

      —          —           —          (56 )      (56 ) 

Other revenues2

      (76 )      —           (7 )      7        (76 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

    $ 2,233      $ 863       $ 1,733      $ 23      $ 4,852   

Benefits and expenses:

            

Interest credited to policyholder accounts

    $ 328        494         236        20      $ 1,078   

Benefits and claims3

      700        —           705        29        1,434   

Amortization of DAC

      13        7         115        (67 )      68   

Other expenses, net of deferrals

      334        163         371        176        1,044   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total benefits and expenses

    $ 1,375      $ 664       $ 1,427      $ 158      $ 3,624   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Income before federal income taxes and noncontrolling interests

    $ 858        199         306        (135 )    $ 1,228   
           

 

 

  

Less: certain non-operating changes in variable annuity liabilities and net realized investment gains (losses)1

      —          —           —          56     

Less: adjustment to amortization of DAC and other related expenses related to non-operating items above

      —          —           —          (74 )   

Less: net loss attributable to noncontrolling interest

      —          —           —          96     
  

 

 

    

 

 

     

 

 

    

 

 

    

Pre-tax operating earnings (loss)

    $ 858      $ 199       $ 306      $ (57 )   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Assets as of year end

    $ 73,370      $ 30,524       $ 30,650      $ 9,634      $ 144,178   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges).
2 Includes operating items discussed above.
3 Excludes certain non-operating changes in variable annuity liabilities.

 

43

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

(in millions)

    Individual
Products
and
Solutions-
Annuity		     Retirement
Plans		     Individual
Products
and
Solutions-
Life and
NBSG		      Corporate
and Other		     Total  

December 31, 2014

            

Revenues:

            

Policy charges

    $ 1,175      $ 107      $ 783       $ —        $ 2,065   

Premiums

      518        —          284         29        831   

Net investment income

      546        750        565         39        1,900   

Non-operating net realized investment gains, including other-than-temporary impairment losses1

      —          —          —           (1,051 )      (1,051 ) 

Other revenues2

      (38 )      —          12         10        (16 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

    $ 2,201      $ 857      $ 1,644       $ (973 )    $ 3,729   

Benefits and expenses:

            

Interest credited to policyholder accounts

    $ 370      $ 482      $ 231       $ 13      $ 1,096   

Benefits and claims

      828        —          644         30        1,502   

Amortization of DAC

      120        (28 )      122         (7 )      207   

Other expenses, net of deferrals

      300        153        348         254        1,055   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total benefits and expenses

    $ 1,618      $ 607      $ 1,345       $ 290      $ 3,860   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Income before federal income taxes and noncontrolling interests

    $ 583      $ 250      $ 299       $ (1,263 )    $ (131 ) 

Less: non-operating net realized investment gains, including other-than-temporary impairment losses1

      —          —          —           1,051     

Less: adjustment to amortization of DAC and other related expenses related to net realized investment gains and losses

      —          —          —           (11 )   

Less: net loss attributable to noncontrolling interest

      —          —          —           94     
  

 

 

    

 

 

    

 

 

     

 

 

    

Pre-tax operating earnings (loss)

    $ 583      $ 250      $ 299       $ (129 )   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Assets as of year end

    $ 72,429      $ 30,744      $ 29,322       $ 11,029      $ 143,524   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges).
2 Includes operating items discussed above.

 

44

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2015, 2014 and 2013 Consolidated Financial Statements

 

 

 

(in millions)

    Individual
Products
and
Solutions-
Annuity		     Retirement
Plans		     Individual
Products
and
Solutions-
Life and
NBSG		      Corporate
and Other		     Total  

December 31, 2013

            

Revenues:

            

Policy charges

    $ 1,021      $ 101      $ 727       $ —        $ 1,849   

Premiums

      416        —          282         26        724   

Net investment income

      546        743        544         16        1,849   

Non-operating net realized investment gains, including of other-than-temporary impairment losses1

      —          —          —           783        783   

Other revenues2

      (109 )      —          6         15        (88 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

    $ 1,874      $ 844      $ 1,559       $ 840      $ 5,117   

Benefits and expenses:

            

Interest credited to policyholder accounts

    $ 377      $ 473      $ 213       $ 4      $ 1,067   

Benefits and claims

      694        —          636         24        1,354   

Amortization of DAC

      185        (2 )      125         66        374   

Other expenses, net of deferrals

      295        151        347         188        981   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total benefits and expenses

    $ 1,551      $ 622      $ 1,321       $ 282      $ 3,776   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Income before federal income taxes and noncontrolling interests

    $ 323      $ 222      $ 238       $ 558      $ 1,341   

Less: non-operating net realized investment gains, including other-than-temporary impairment losses1

      —          —          —           (783 )   

Less: adjustment to amortization of DAC and other related expenses related to net realized investment gains and losses

      —          —          —           70     

Less: net loss attributable to noncontrolling interest

      —          —          —           82     
  

 

 

    

 

 

    

 

 

     

 

 

    

Pre-tax operating earnings (loss)

    $ 323      $ 222      $ 238       $ (73 )   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Assets as of year end

    $ 68,805      $ 29,904      $ 27,183       $ 7,553      $ 133,445   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges).
2 Includes operating items discussed above.

 

45

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

 

 

Schedule I        Consolidated Summary of Investments – Other Than Investments in Related Parties

As of December 31, 2015 (in millions)

 

Column A

    Column B      Column C      Column D  

Type of investment

    Cost      Fair
value		      Amount at
which shown
in the
consolidated
balance sheet		  

Fixed maturity securities, available-for-sale:

         

Bonds:

         

U.S. government and agencies

    $ 343       $ 402       $ 402   

Obligations of states, political subdivisions and foreign governments

      2,136         2,367         2,367   

Public utilities

      3,411         3,495         3,495   

All other corporate, mortgage-backed and asset-backed securities

      31,106         31,306         31,306   
  

 

 

     

 

 

     

 

 

  

Total fixed maturity securities, available-for-sale

    $ 36,996       $ 37,570       $ 37,570   

Equity securities, available-for-sale:

         

Common stocks:

         

Industrial, miscellaneous and all other

    $ 7       $ 17       $ 17   

Nonredeemable preferred stocks

      —           4         4   
  

 

 

     

 

 

     

 

 

  

Total equity securities, available-for-sale

    $ 7       $ 21       $ 21   

Trading assets

      72         67         67   

Mortgage loans, net of allowance

      8,422            8,396 1 

Policy loans

      993            993   

Other investments

      855            855   

Short-term investments

      766            766   
  

 

 

        

 

 

  

Total investments

    $ 48,111          $ 48,668   
  

 

 

        

 

 

  

 

1 Difference from Column B primarily is attributable to valuation allowances due to impairments on mortgage loans (see Note 6 to the audited consolidated financial statements).

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

 

46

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

 

 

 

 

Schedule III        Supplementary Insurance Information

As of December 31, 2015, 2014 and 2013 and for each of the years then ended (in millions)

 

Column A

    Column B     Column C      Column D     Column E      Column F  

Year: Segment

    Deferred policy
acquisition
costs		     Future policy benefits,
losses, claims and
loss expenses		      Unearned
premiums1		     Other policy
claims and
benefits payable1		      Premium
revenue		  

2015

             

IPS - Annuity

    $ 3,070      $ 15,160            $ 459   

Retirement Plans

      222        15,940              —     

IPS - Life and NBSG

      1,937        11,582              292   

Corporate and Other

      (29 )      2,715              35   
  

 

 

    

 

 

          

 

 

  

Total

    $ 5,200      $ 45,397            $ 786   
  

 

 

    

 

 

          

 

 

  

2014

             

IPS - Annuity

    $ 2,495      $ 12,619            $ 518   

Retirement Plans

      216        14,905              —     

IPS - Life and NBSG

      1,717        10,763              284   

Corporate and Other

      (365 )      2,443              29   
  

 

 

    

 

 

          

 

 

  

Total

    $ 4,063      $ 40,730            $ 831   
  

 

 

    

 

 

          

 

 

  

2013

             

IPS - Annuity

    $ 2,214      $ 10,985            $ 416   

Retirement Plans

      179        14,313              —     

IPS - Life and NBSG

      1,557        10,068              282   

Corporate and Other

      (172 )      1,399              26   
  

 

 

    

 

 

          

 

 

  

Total

    $ 3,778      $ 36,765            $ 724   
  

 

 

    

 

 

          

 

 

  

Column A

    Column G     Column H      Column I     Column J      Column K  

Year: Segment

    Net
investment
income2		     Benefits, claims,
losses and
settlement expenses		      Amortization
of deferred policy
acquisition costs		     Other
operating
expenses2		      Premiums
written		  

2015

             

IPS - Annuity

    $ 591      $ 1,257       $ 13        334      

Retirement Plans

      752        494         7        163      

IPS - Life and NBSG

      602        941         115        371      

Corporate and Other

      37        48         (67 )      176      
  

 

 

    

 

 

     

 

 

    

 

 

     

Total

    $ 1,982      $ 2,740       $ 68      $ 1,044      
  

 

 

    

 

 

     

 

 

    

 

 

     

2014

             

IPS - Annuity

    $ 546      $ 1,198       $ 120      $ 300      

Retirement Plans

      750        482         (28 )      153      

IPS - Life and NBSG

      565        875         122        348      

Corporate and Other

      39        43         (7 )      254      
  

 

 

    

 

 

     

 

 

    

 

 

     

Total

    $ 1,900      $ 2,598       $ 207      $ 1,055      
  

 

 

    

 

 

     

 

 

    

 

 

     

2013

             

IPS - Annuity

    $ 546      $ 1,071       $ 185      $ 295      

Retirement Plans

      743        473         (2 )      151      

IPS - Life and NBSG

      544        849         125        347      

Corporate and Other

      16        28         66        188      
  

 

 

    

 

 

     

 

 

    

 

 

     

Total

    $ 1,849      $ 2,421       $ 374      $ 981      
  

 

 

    

 

 

     

 

 

    

 

 

     

 

1 Unearned premiums and other policy claims and benefits payable are included in Column C amounts.
2 Allocations of net investment income and certain operating expenses are based on numerous assumptions and estimates, and reported segment operating results would change if different methods were applied.

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

 

47

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

 

 

 

 

Schedule IV        Reinsurance

As of December 31, 2015, 2014 and 2013 and for each of the years then ended (in millions)

 

Column A

    Column B      Column C     Column D      Column E  
     Gross
amount		      Ceded to
other
companies		     Assumed
from other
companies		      Net amount  

2015

           

Life, accident and health insurance in force

    $ 260,465       $ (60,976 )    $ 5       $ 199,494   

Premiums:

           

Life insurance1

    $ 842       $ (56 )    $ —         $ 786   

Accident and health insurance

      302         (302 )      —           —     
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 1,144       $ (358 )    $ —         $ 786   
  

 

 

     

 

 

    

 

 

     

 

 

  

2014

           

Life, accident and health insurance in force

    $ 241,936       $ (59,588 )    $ 5       $ 182,353   

Premiums:

           

Life insurance1

    $ 888       $ (57 )    $ —         $ 831   

Accident and health insurance

      290         (290 )      —           —     
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 1,178       $ (347 )    $ —         $ 831   
  

 

 

     

 

 

    

 

 

     

 

 

  

2013

           

Life, accident and health insurance in force

    $ 228,095       $ (58,310 )    $ 6       $ 169,791   

Premiums:

           

Life insurance1

    $ 783       $ (59 )    $ —         $ 724   

Accident and health insurance

      232         (232 )      —           —     
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 1,015       $ (291 )    $ —         $ 724   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

1 Primarily represents premiums from traditional life insurance and life-contingent immediate annuities and excludes deposits on investment and universal life insurance products.

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

 

48

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

 

 

 

 

Schedule V        Valuation and Qualifying Accounts

Years ended December 31, 2015, 2014 and 2013 (in millions)

 

Column A

    Column B      Column C      Column D     Column E  

Description

    Balance at
beginning
of period		      Charged to
costs and
expenses		     Charged to
other
accounts		      Deductions1     Balance at
end of
period		  

2015

             

Valuation allowances - mortgage loans

    $ 26       $ 2      $ —         $ (2 )    $ 26   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

2014

             

Valuation allowances - mortgage loans

    $ 35       $ (8 )    $ —         $ (1 )    $ 26   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

2013

             

Valuation allowances - mortgage loans

    $ 44       $ (4 )    $ —         $ (5 )    $ 35   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

1 Amounts generally represent payoffs, sales and recoveries.

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

 

49

PART C. OTHER INFORMATION
Item 26. Exhibits
(a) Resolution of the Depositor’s Board of Directors authorizing the establishment of the Registrant – Filed previously with initial registration statement (333-31725) and hereby incorporated by reference.
(b) Not Applicable
(c) Underwriting or Distribution of contracts between the Depositor and Principal Underwriter – Filed previously with the registration statement (333-27133) and hereby incorporated by reference.
(d) The form of the contract – Filed previously with initial registration statement (333-31725) and hereby incorporated by reference.
(e) The form of the contract application – Filed previously with initial registration statement (333-31725) and hereby incorporated by reference.
(f) Depositor’s Certificate of Incorporation and By-Laws.
(1) Amended Articles of Incorporation for Nationwide Life Insurance Company. Filed previously with initial registration statement (333-164119) on January 4, 2010 as document "exhibitf1.htm" and hereby incorporated by reference.
(2) Amended and Restated Code of Regulations of Nationwide Life Insurance Company. Filed previously with initial registration statement (333-164119) on January 4, 2010 as document "exhibitf2.htm" and hereby incorporated by reference.
(3) Articles of Merger of Nationwide Life Insurance Company of America with and into Nationwide Life Insurance Company, effective December 31, 2009. Filed previously with initial registration statement (333-164119) on January 4, 2010 as document "exhibitf3.htm" and hereby incorporated by reference.
(g) Reinsurance Contracts -Filed previously with registration statement (333-31725) and hereby incorporated by reference.
(h) Form of Participation Agreements –
  The following Fund Participation Agreements were previously filed on July 17, 2007 with pre-effective amendment number 1 of registration statement (333-140608) under Exhibit 26(h), and are hereby incorporated by reference.
(1) Fund Participation Agreement with AIM Variable Insurance Funds, AIM Advisors, Inc., and AIM Distributors dated January 6, 2003, under document "aimfpa99h1.htm"
(2) Amended and Restated Fund Participation and Shareholder Services Agreement with American Century Investment Services, Inc. dated September 15, 2004, as amended, under document "amcentfpa99h2"
(3) Restated and Amended Fund Participation Agreement with The Dreyfus Corporation dated January 27, 2000, as amended, under document "dreyfusfpa99h3.htm"
(4) Fund Participation Agreement with Federated Insurance Series and Federated Securities Corp. dated April 1, 2006, as amended, under document "fedfpa99h4.htm"
(5) Fund Participation Agreement with Fidelity Variable Insurance Products Fund dated May 1, 1988, as amended, including Fidelity Variable Insurance Products Fund IV and Fidelity Variable Insurance Products Fund V, under document "fidifpa99h5.htm"
(6) Amended and Restated Fund Participation Agreement with Franklin Templeton Variable Insurance Products Trust and Franklin/Templeton Distributors, Inc. dated May 1, 2003, as amended, under document "frankfpa99h8.htm"
(7) Fund Participation Agreement, Service and Institutional Shares, with Janus Aspen Series, dated December 31, 1999, under document "janusfpa99h9a.htm"
(8) Fund Participation Agreement with Nationwide Variable Insurance Trust (formerly, Gartmore Variable Insurance Trust) dated May 2, 2005, as amended, under document "nwfpa99h12a.htm"

 

(9) Fund Participation Agreement with Nationwide Variable Insurance Trust (formerly, Gartmore Variable Insurance Trust), American Funds Insurance Series, and Capital Research and Management Company dated May 1, 2007, as amended, under document "nwfpa99h12b.htm"
(10) Fund Participation Agreement with Neuberger Berman Advisers Management Trust / Lehman Brothers Advisers Management Trust (formerly, Neuberger Berman Advisers Management Trust) dated January 1, 2006, under document "neuberfpa99h13.htm"
(11) Fund Participation Agreement with Oppenheimer Variable Account Funds and Oppenheimer Funds, Inc. dated April 13, 2007, under document "oppenfpa99h14.htm"
(12) Fund Participation Agreement with T. Rowe Price Equity Series, Inc., T. Rowe Price International Series, Inc., T. Rowe Price Fixed Income Series, Inc., and T. Rowe Price Investment Services, Inc. dated October 1, 2002, as amended, under document "trowefpa99h15.htm"
(13) Fund Participation Agreement with The Universal Institutional Funds, Inc., Morgan Stanley Distribution, Inc., and Morgan Stanley Investment Management, Inc. dated February 1, 2002, as amended, under document "univfpa99h16.htm"
The following Fund Participation Agreements were previously filed on September 27, 2007 with pre-effective amendment number 3 of registration statement (333-137202) under Exhibit 26(h), and are hereby incorporated by reference.
(14) Fund Participation Agreement (Amended and Restated) with Alliance Capital Management L.P. and Alliance-Bernstein Investment Research and Management, Inc. dated June 1, 2003, as document "alliancebernsteinfpa.htm"
(15) Fund Participation Agreement with BlackRock (formerly FAM Distributors, Inc, and FAM Variable Series Funds, Inc.) dated April 13, 2004, as amended, under document "blackrockfpa.htm"
(16) Fund Participation Agreement with PIMCO Variable Insurance Trust and PIMCO Funds Distributors, LLC, dated March 28, 2002, as amended, under document "pimcofpa.htm"
(17) Fund Participation Agreement with Putnam Variable Trust and Putnam Retail Management, L.P., dated February 1, 2002, as document "putnamfpa.htm"
(18) Fund Participation Agreement Van Eck Investment Trust, Van Eck Associates Corporation, Van Eck Securities Corporation dated September 1, 1989, as amended, as document "vaneckfpa.htm"
(19) Fund Participation Agreement with Waddell & Reed Services Company and Waddell & Reed Inc. dated December 1, 2000, as document "waddellreedfpa.htm"
(20) Fund Participation Agreement with Wells Fargo Management, LLC, Stephens, Inc. dated November 15, 2004, as amended, as document "wellsfargofpa.htm"
(21) Fund Participation Agreement with Lord Abbett Series Fund, Inc. and Lord Abbett Distributor LLC, as amended, dated December 31, 2002, as document "lordabbettfpa.htm"
The following fund participation agreements were filed previously on April 12, 2011, with Post-Effective Amendment No. 43 (File No. 333-43671) as exhibit 26(h) and are hereby incorporated by reference:
(22) Fund Participation Agreement with Goldman Sachs Variable Insurance Trust, and Goldman Sachs & Co., dated December 22, 1998, as document "goldmansachsfpa.htm".
(23) Fund Participation Agreement with Delaware Management Company and Delaware Distributors, L.P., dated February 5, 2008, as amended, as document "delawarefpa.htm".
The following Fund Participation Agreement was previously filed on June 11, 2012, with post-effective amendment number 28 of registration statement (333-62692) and is hereby incorporated by reference:
(24) Fund Participation Agreement with Northern Lights Variable Trust and Northern Lights Distributors, LLC., dated February 8, 2012 as document "northernlightsfpa.htm".
The following Fund Participation Agreement was previously filed on April 18, 2008, with post-effective amendment number 20 of registration statement (333-62692) and is hereby incorporated by reference:
(25) Fund Participation Agreement with Fund Participation Agreement with Rydex Variable Trust & Rydex Distributors, Inc., dated September 10, 2001 as document "rydexfundpartagreement.htm".

 

The following Fund Participation Agreement was previously filed on April 16, 2015, with Post-Effective Amendment No. 15 to the registration statement associated with 1933 Act File No. 333-149213 under Exhibit 24(b), and is hereby incorporated by reference.
(26) Participation Agreement Among MFS Variable Insurance Trust, MFS Variable Insurance Trust II, Nationwide Financial Services, Inc., and MFS Fund Distributors, Inc., dated May 2, 2011, under document "mfsfpa.htm".
(i) Not Applicable
(j) Not Applicable
(k) Opinion of Counsel – Filed previously with Pre-Effective Amendment No. 1 to the registration statement (333-31725) and hereby incorporated by reference.
(l) Not Applicable
(m) Not Applicable
(n) Consent of Independent Registered Public Accounting Firm – Attached hereto.
(o) Not Applicable
(p) Not Applicable
(q) Redeemability Exemption – Filed previously with registration statement (333-31725) on December 21, 2009 under document "exhibit_26q.htm" and is hereby incorporated by reference.
(99) Power of Attorney – Attached hereto.

 

Item 27. Directors and Officers of the Depositor
The business address of the Directors and Officers of the Depositor is:
One Nationwide Plaza, Columbus, Ohio 43215
President and Chief Operating Officer and Director Kirt A. Walker
Executive Vice President-Chief Legal and Governance Officer Mark Howard
Senior Vice President-President, Nationwide Growth Solutions Terri L. Hill
Executive Vice President-Chief Information Officer Michael C. Keller
Executive Vice President-Chief Human Resources Officer Gale V. King
Executive Vice President Mark A. Pizzi
Executive Vice President and Director Mark R. Thresher
Senior Vice President Harry H. Hallowell
Senior Vice President and Treasurer David LaPaul
Senior Vice President-Chief Compliance Officer Sandra L. Rich
Senior Vice President-Chief Financial Officer and Director Timothy G. Frommeyer
Senior Vice President-CIO Enterprise Applications Michael A. Richardson
Senior Vice President-CIO NF Systems Susan J. Gueli
Senior Vice President-NW Retirement Plans and Director John L. Carter
Senior Vice President-Head of Taxation Pamela A. Biesecker
Senior Vice President-Individual Products & Solutions and Director Eric S. Henderson
Senior Vice President-Investment Management Group Michael S. Spangler
Senior Vice President-CIO CL & Agency Tammy Craig
Senior Vice President-Nationwide Financial Steven C. Power
Senior Vice President-Nationwide Financial Network Peter A. Golato
Senior Vice President-NF Legal Rae Ann Dankovic
Senior Vice President-NF Distribution and Sales David L. Giertz
Senior Vice President-NI Enterprise Brand Marketing Michael A. Boyd
Senior Vice President- NF Marketing Jennifer B. MacKenzie
Senior Vice President-Marketing Services Tiffanie Hiibner
Director Stephen S. Rasmussen
Item 28. Persons Controlled by or Under Common Control with the Depositor or Registrant.
Following is a list of entities directly or indirectly controlled by or under common control with the depositor or registrant. Ownership is indicated through indentation. Unless otherwise indicated, each subsidiary is either wholly-owned or majority-owned by the parent company immediately preceding it. (For example, Nationwide Fund Distributors, LLC is either wholly-owned or majority owned by NFS Distributors, Inc.) Separate accounts that have been established pursuant to board resolution but are not, and have never been, active are omitted.
Company Jurisdiction
of Domicile 		Brief Description of Business
Nationwide Financial Services, Inc. Delaware The company acts primarily as a holding company for companies within the Nationwide organization that offer or distribute life insurance, long-term savings and retirement products.
NFS Distributors, Inc. Delaware The company acts primarily as a holding company for Nationwide Financial Services, Inc. companies.
Nationwide Financial General Agency, Inc. Pennsylvania The company is a multi-state licensed insurance agency.
Nationwide Financial Institution Distributors Agency, Inc. Delaware The company is an insurance agency.
Nationwide Fund Distributors, LLC Delaware The company is a limited purpose broker-dealer.
Nationwide Fund Management, LLC Delaware The company provides administration, transfer and dividend disbursing agent services to various mutual fund entities.
Nationwide Retirement Solutions, Inc. Delaware The company markets and administers deferred compensation plans for public employees.
Nationwide Securities, LLC Delaware The company is a registered broker-dealer.

 

Company Jurisdiction
of Domicile 		Brief Description of Business
Nationwide Bank Federal This is a federally savings bank chartered by the Office of Thrift Supervision in the United States Department of Treasury to exercise deposit, lending, agency, custody and fiduciary powers and to engage in activities permissible for federal savings banks under the Home Owners’ Loan Act of 1933.
Nationwide Financial Services Capital Trust Delaware The trust’s sole purpose is to issue and sell certain securities representing individual beneficial interests in the assets of the trust
Nationwide Life Insurance Company2 Ohio A stock corporation. The corporation provides individual life insurance, group and health insurance, fixed and variable annuity products and other life insurance products.
MFS Variable Account2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Multi-Flex Variable Account2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-II2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-32,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-42,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-52,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-62,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-72,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-82,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-92,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-102,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-112,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-122,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-132,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-142,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Provident VA Separate Account 12,3 Pennsylvania A separate account issuing variable annuity contracts.
Nationwide VLI Separate Account2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-22,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-32,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-42,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-52,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-62,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-72,3 Ohio A separate account issuing variable life insurance policies.
Nationwide Provident VLI Separate Account 12,3 Pennsylvania A separate account issuing variable life insurance policies.
Nationwide Investment Services Corporation3 Oklahoma This is a limited purpose broker-dealer and distributor of variable annuities and variable life products for Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company. The company also provides educational services to retirement plan sponsors and its participants.
Nationwide Financial Assignment Company3 Ohio The company is an administrator of structured settlements.
Nationwide Investment Advisors, LLC3 Ohio The company provides investment advisory services.
Life Reo Holdings, LLC3 Ohio The company is an investment holding company.
Eagle Captive Reinsurance, LLC3 Ohio The company is engaged in the business of insurance

 

Company Jurisdiction
of Domicile 		Brief Description of Business
Nationwide Life and Annuity Insurance Company2,3 Ohio The company engages in underwriting life insurance and granting, purchasing and disposing of annuities.
Nationwide VA Separate Account-A2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide VA Separate Account-B2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide VA Separate Account-C2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide VA Separate Account-D2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Provident VA Separate Account A2,3 Delaware A separate account issuing variable annuity contracts.
Nationwide VL Separate Account-A2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VL Separate Account-B2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VL Separate Account-C2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VL Separate Account-D2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VL Separate Account-G2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide Provident VLI Separate Account A2,3 Delaware A separate account issuing variable life insurance policies.
Olentangy Reinsurance, LLC3 Vermont The company is a captive life reinsurance company.
Registered Investment Advisors Services, Inc.3 Texas The company is a technology company that facilitates third-party money management services for registered investment advisors
Nationwide Fund Advisors3,4 Delaware The trust acts as a registered investment advisor.
1 This subsidiary/entity is controlled by its immediate parent through contractual association.
2 This subsidiary/entity files separate financial statements.
3 Information for this subsidiary/entity is included in the consolidated financial statements of its immediate parent.
4 This subsidiary/entity is a business trust.
Item 29. Indemnification
Provision is made in Nationwide’s Amended and Restated Code of Regulations and expressly authorized by the General Corporation Law of the State of Ohio, for indemnification by Nationwide of any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that such person is or was a director, officer or employee of Nationwide, against expenses, including attorneys fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, to the extent and under the circumstances permitted by the General Corporation Law of the State of Ohio.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 ("Act") may be permitted to directors, officers or persons controlling Nationwide pursuant to the foregoing provisions, Nationwide has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
Item 30. Principal Underwriter
Nationwide Investment Services Corporation ("NISC")
(a) NISC serves as principal underwriter and general distributor for the following separate investment accounts of Nationwide or its affiliates:
   
MFS Variable Account Nationwide VA Separate Account-C

 

Multi-Flex Variable Account Nationwide VA Separate Account-D
Nationwide Variable Account Nationwide VLI Separate Account
Nationwide Variable Account-II Nationwide VLI Separate Account-2
Nationwide Variable Account-3 Nationwide VLI Separate Account-3
Nationwide Variable Account-4 Nationwide VLI Separate Account-4
Nationwide Variable Account-5 Nationwide VLI Separate Account-5
Nationwide Variable Account-6 Nationwide VLI Separate Account-6
Nationwide Variable Account-7 Nationwide VLI Separate Account-7
Nationwide Variable Account-8 Nationwide VL Separate Account-A
Nationwide Variable Account-9 Nationwide VL Separate Account-C
Nationwide Variable Account-10 Nationwide VL Separate Account-D
Nationwide Variable Account-11 Nationwide VL Separate Account-G
Nationwide Variable Account-12 Nationwide Provident VA Separate Account 1
Nationwide Variable Account-13 Nationwide Provident VA Separate Account A
Nationwide Variable Account-14 Nationwide Provident VLI Separate Account 1
Nationwide VA Separate Account-A Nationwide Provident VLI Separate Account A
Nationwide VA Separate Account-B  
(b) Directors and Officers of NISC:
   
President Robert O. Cline
Vice President-Chief Compliance Officer James J. Rabenstine
Vice President and Treasurer John A. Reese
Vice President-Tax Daniel P. Eppley
Associate Vice President and Secretary Kathy R. Richards
Associate Vice President and Assistant Secretary Parag H. Shah
Associate Vice President-Nationwide Financial Services Distribution Compliance Valerie Hamilton
Associate Vice President and Assistant Treasurer J. Morgan Elliott
Associate Vice President and Assistant Treasurer David A. Connor
Director John L. Carter
Director Eric S. Henderson
Director David L. Giertz
The business address of the Directors and Officers of NISC is:
One Nationwide Plaza, Columbus, Ohio 43215.
(c)
Name of Principal Underwriter   Net Underwriting
Discounts and
Commissions 		  Compensation on
Redemption or
Annuitization 		  Brokerage
Commissions 		  Compensation
Nationwide Investment Services Corporation
   N/A   N/A   N/A   N/A
Item 31. Location of Accounts and Records
Timothy G. Frommeyer
Nationwide Life Insurance Company
One Nationwide Plaza
Columbus, OH 43215
Item 32. Management Services
Not Applicable
Item 33. Fee Representation
Nationwide Life Insurance Company represents that the fees and charges deducted under the contract in the aggregate are reasonable in relation to the services rendered, the expenses expected to be incurred and risks assumed by Nationwide Life Insurance Company.

 

SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets the requirements of Rule 485(b) under the Securities Act of 1933 for effectiveness of the Registration Statement and has caused this Registration Statement to be signed by the undersigned, duly authorized, in the City of Columbus, and State of Ohio, on April 14, 2016.
Nationwide VLI Separate Account-4
(Registrant)
Nationwide Life Insurance Company
(Depositor)
By: /s/ JAMIE RUFF CASTO
Jamie Ruff Casto
Attorney-in-Fact
As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated, on April 14, 2016.
KIRT A. WALKER  
Kirt A. Walker, President and Chief Operating Officer, and Director  
MARK R. THRESHER  
Mark R. Thresher, Executive Vice President and Director  
TIMOTHY G. FROMMEYER  
Timothy G. Frommeyer, Senior Vice President-Chief Financial Officer and Director  
ERIC S. HENDERSON  
Eric S. Henderson, Senior Vice President - Individual Products & Solutions and Director  
JOHN L. CARTER  
John L. Carter, Senior Vice President – Nationwide Retirement Plans and Director  
STEPHEN S. RASMUSSEN  
Stephen S. Rasmussen, Director  
  By /s/ JAMIE RUFF CASTO
  Jamie Ruff Casto
Attorney-in-Fact

 

EX-99.(N) 2 d135497dex99n.htm CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Consent of Independent Registered Public Accounting Firm
Consent of Independent Registered Public Accounting Firm
The Board of Directors and Shareholder
Nationwide Life Insurance Company:
We consent to the use of our report with respect to Nationwide VLI Separate Account-4 and Nationwide Life Insurance Company and subsidiaries, dated March 16, 2016 and February 23, 2016, respectively, included herein. We also consent to the reference to our firm under the heading "Independent Registered Public Accounting Firm" in the Statement of Additional Information (File No. 333-31725) on Form N-6.
/s/ KPMG LLP
Columbus, Ohio
April 11, 2016

 

EX-99.(99) 3 d135497dex9999.htm POWER OF ATTORNEY Power of Attorney
POWER OF ATTORNEY
Each of the undersigned as directors and/or officers of NATIONWIDE LIFE INSURANCE COMPANY and NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY, both Ohio corporations, which have filed or will file with the U.S. Securities and Exchange Commission under the provisions of the Securities Act of 1933, as amended; the Investment Company Act of 1940, as amended; and, if applicable, the Securities Exchange Act of 1934, various registration statements and amendments thereto for the registration of current, as well as any future, separate accounts established by said corporations for the purpose of registering under said Act(s) immediate or deferred variable annuity contracts, fixed interest rate options subject to a market value adjustment, group flexible fund retirement annuity contracts and variable life insurance policies in connection with the separate accounts and contracts listed below:
Variable Annuities and Variable Life Insurance Policies
Separate Account (1940 Act File No.)   1933 Act File Nos.
MFS Variable Account (811-2662)   002-73432
Multi-Flex Variable Account (811-3338)   033-23905, 002-75174
Nationwide Variable Account (811-2716)   002-58043, 333-80481, 033-60239, 333-176908
Nationwide Variable Account-II (811-3330)   002-75059, 033-67636, 033-60063, 333-103093, 333-103094, 333-103095, 333-104513, 333-104511, 333-104512, 333-104510, 333-151990, 333-105992, 333-147273, 333-140621, 333-144053, 333-147198, 333-160635, 333-164886, 333-168818, 333-177934, 333-177581, 333-177582, 333-177316, 333-177319, 333-177439, 333-177441, 333-177729, 333-177731, 333-173349, 333-177938, 333-182494
Nationwide Variable Account-3 (811-5405)   033-18422, 033-24434
Nationwide Variable Account-4 (811-5701)   033-25734, 033-26454, 333-62692, 333-135650, 333-140812, 333-201820
Nationwide Variable Account-5 (811-8142)   033-71440
Nationwide Variable Account-6 (811-8684)   033-82370, 333-21909
Nationwide Variable Account-7 (811-8666)   033-82190, 033-82174, 033-89560
Nationwide Variable Account-8 (811-7357)   033-62637, 033-62659
Nationwide Variable Account-9 (811-08241)   333-28995, 333-52579, 333-56073, 333-53023, 333-79327, 333-69014, 333-75360
Nationwide Variable Account-10 (811-09407)   333-81701
Nationwide Variable Account-11 (811-10591)   333-74904, 333-74908
Nationwide Variable Account-12 (811-21099)   333-88612, 333-108894, 333-178057, 333-178059
Nationwide Variable Account-13 (811-21139)   333-91890
Nationwide Variable Account-14 (811-21205)   333-104339
Nationwide VA Separate Account-A (811-5606)   033-85164, 033-22940
Nationwide VA Separate Account-B (811-06399)   033-86408, 033-93482, 333-11415
Nationwide VA Separate Account-C (811-7908)   033-66496, 333-44485
Nationwide VA Separate Account-D (811-10139)   333-45976
Nationwide VLI Separate Account (811-4399)   033-00145, 033-44290, 033-35698
Nationwide VLI Separate Account-2 (811-5311)   033-16999, 033-62795, 033-42180, 033-35783, 033-63179, 333-27133
Nationwide VLI Separate Account-3 (811-6140)   033-44789, 033-44296
Nationwide VLI Separate Account-4 (811-08301)   333-31725, 333-43671, 333-52617, 333-94037, 333-52615, 333-53728, 333-69160, 333-83010, 333-137202, 333-153343, 333-169879
Nationwide VLI Separate Account-5 (811-10143)   333-46338, 333-46412, 333-66572, 333-121881, 333-125481, 333-125482
Nationwide VLI Separate Account-6 (811-21398)   333-106908
Nationwide VLI Separate Account-7 (811-21610)   333-117998, 333-121879, 333-146649, 333-140606, 333-149295, 333-156020, 333-182893, 333-182887
Nationwide VL Separate Account-A (811-6137)   033-44792, 033-44300, 033-35775, 333-27123, 333-22677

 

Variable Annuities and Variable Life Insurance Policies
Separate Account (1940 Act File No.)   1933 Act File Nos.
Nationwide VL Separate Account-B (811-07819)   333-12333
Nationwide VL Separate Account-C (811-8351)   333-43639, 333-36869
Nationwide VL Separate Account-D (811-08891)   333-59517
Nationwide VL Separate Account-G (811-21697)   333-121878, 333-140608, 333-146073, 333-146650, 333-149213, 333-155153, 333-182897, 333-182896
Nationwide Provident VA Separate Account 1 (811-7708)   333-164127; 333-164125; 333-164126; 333-164124
Nationwide Provident VLI Separate Account 1 (811-4460)   333-164180; 333-164117; 333-164178; 333-164179; 333-164119; 333-164120; 333-164115; 333-164118; 333-164116
Nationwide Provident VA Separate Account A (811-6484)   333-164131; 333-164130; 333-164132; 333-164129; 333-164128
Nationwide Provident VLI Separate Account A (811-8722)   333-164188; 333-164123; 333-164185; 333-164122; 333-164121
    
General Account Products
Insurance Company   1933 Act File Nos.
Nationwide Life Insurance Company   333-133163, 333-196863, 333-149613, 333-155368, 333-160418, 333-200329, 333-203062
Nationwide Life and Annuity Insurance Company   333-47640
hereby constitute and appoint Stephen S. Rasmussen, Kirt A. Walker, John L. Carter, Eric S. Henderson, Jamie Ruff Casto, Paige L. Ryan, Stephen M. Jackson, and Jeanny V. Simaitis, and each of them with power to act without the others, as his/her attorney, with full power of substitution for and in his/her name, place and stead, in any and all capacities, to approve, and sign such Registration Statements, and any and all amendments thereto, with power to affix the corporate seal of said corporation thereto and to attest said seal and to file the same, with all exhibits thereto and other documents in connection therewith, with the U.S. Securities and Exchange Commission, hereby granting unto said attorneys, and each of them, full power and authority to do and perform all and every act and thing requisite to all intents and purposes as he/she might or could do in person, hereby ratifying and confirming that which said attorneys, or any of them, may lawfully do or cause to be done by virtue hereof. This instrument may be executed in one or more counterparts.
IN WITNESS WHEREOF, the undersigned have herewith set their names as of this 26th day of February, 2016.
/s/ Timothy G. Frommeyer   /s/ Eric S. Henderson
TIMOTHY G. FROMMEYER, Director   ERIC S. HENDERSON, Director
/s/ Stephen S. Rasmussen   /s/ Mark R. Thresher
STEPHEN S. RASMUSSEN, Director   MARK R. THRESHER, Director
/s/ Kirt A. Walker   /s/ John L.Carter
KIRT A. WALKER, Director   JOHN L. CARTER, Director

 

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