As filed with the Securities and Exchange Commission on September 30, 1998
File No. 333-00999
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 4 /X/
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 6 /X/
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
(Exact Name of Registrant)
GLENBROOK LIFE AND ANNUITY COMPANY
3100 SANDERS ROAD
NORTHBROOK, ILLINOIS 60062
(Name of Depositor)
MICHAEL J. VELOTTA
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
GLENBROOK LIFE AND ANNUITY COMPANY
3100 SANDERS ROAD
NORTHBROOK, ILLINOIS 60062
874/402-2400
(Name and Complete Address of Agent for Service)
Copies to:
RICHARD T. CHOI, ESQUIRE TERRY R. YOUNG, ESQUIRE
FREEDMAN, LEVY, KROLL, AND SIMONDS ALLSTATE LIFE FINANCIAL
1050 CONNECTICUT AVENUE, N.W. SERVICES, INC.
WASHINGTON, D.C. 20036-5366 3100 SANDERS ROAD
NORTHBROOK, IL 60062
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE
(CHECK APPROPRIATE BOX)
/ / immediately upon filing pursuant to paragraph (b) of Rule 485
/ / on (date)pursuant to paragraph (b) of Rule 485
/x/ 60 days after filing pursuant to paragraph (a)(i) of Rule 485
/ / 75 days after filing pursuant to paragraph(a)(ii) of Rule 485
IF APPROPRIATE, CHECK THE FOLLOWING BOX:
/ / This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
Title of Securities Being Registered: Units of interest in the Glenbrook Life
Multi-Manager Variable Account under deferred variable annuity contracts.
<PAGE>
Explanatory Note
Registrant is filing this post-effective amendment ("Amendment") for the purpose
of adding a new prospectus, a new statement of additional information ("SAI"),
and additional exhibits related to a new form of contract ("new Contract") that
Registrant intends to offer. The new Contract is essentially identical to the
form of contract described in the currently effective prospectus and SAI
included in the Registration Statement, except that it has a different charge
structure and certain other enhancements that are consistent with the manner in
which the Contract will be distributed. The enhancements include new and
different investment options, a new dollar cost averaging fixed account, a new
enhanced death benefit option, a new income benefit option, and fewer instances
in which the withdrawal charge and/or market value adjustment is applied. The
Amendment is not intended to amend or delete any part of the Registration
Statement, except as specifically noted herein.
<PAGE>
Explanatory Note
Registrant is filing this post-effective amendment ("Amendment") for the purpose
of adding a new prospectus, a new statement of additional information ("SAI"),
and additional exhibits related to a new form of contract ("new Contract") that
Registrant intends to offer. The new Contract is essentially identical to the
form of contract described in the currently effective prospectus and SAI
included in the Registration Statement, except that it has a different charge
structure and certain other enhancements that are consistent with the manner in
which the Contract will be distributed. The enhancements include new and
different investment options, a new dollar cost averaging fixed account, a new
enhanced death benefit option, a new income benefit option, and fewer instances
in which the withdrawal charge and/or market value adjustment is applied. The
Amendment is not intended to amend or delete any part of the Registration
Statement, except as specifically noted herein.
<PAGE>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
OFFERED BY
GLENBROOK LIFE AND ANNUITY COMPANY
POST OFFICE BOX 94042
PALATINE, ILLINOIS 60094-4042
1-(800) 755-5275
INDIVIDUAL AND GROUP FLEXIBLE PREMIUM DEFERRED
VARIABLE ANNUITY CONTRACTS
This prospectus describes the "Glenbrook Provider Variable Annuity," a Flexible
Premium Deferred Variable Annuity Contract ("Contract") designed to aid You in
long-term financial planning and which can be used for retirement planning. The
Contracts are issued by Glenbrook Life and Annuity Company ("Company"), a wholly
owned subsidiary of Allstate Life Insurance Company. Purchase payments for the
Contracts will be allocated to a series of Variable Sub-accounts of the
Glenbrook Life Multi-Manager Variable Account ("Variable Account") and/or to a
Fixed Account option(s) funded through the Company's general account.
The Contracts are issued as individual Contracts or as group Contracts. In
states where the Contracts are available only as group Contracts, a certificate
is issued that summarizes the provisions of the group Contract. In certain
states, certificates are issued under group contracts issued to the Financial
Services Group Insurance Trust, an Illinois Trust. For convenience, this
prospectus refers to both Contracts and certificates as "Contracts."
The Variable Account will invest in shares of one or more managed investment
companies ("Funds") each of which will have multiple investment Portfolios. All
of the Funds and/or Portfolios which are described in this prospectus may not be
available with your Contract. Your annuity application will list all available
Portfolios. Presently, the Variable Account will invest in shares of the
following Funds:
- - AIM Variable Insurance Funds, Inc. ("AIM Fund")
- - American Century Variable Portfolios (VP), Inc. ("American Century Funds")
- - Dreyfus Variable Investment Fund (VIF), The Dreyfus Socially Responsible
Growth Fund, Inc. and Dreyfus Stock Index Fund(collectively the "Dreyfus
Funds")
- - Fidelity Variable Insurance Products Fund (VIP) and Fidelity Variable
Insurance Products Fund II (VIPII) (collectively the "Fidelity VIP Funds")
- - Goldman Sachs Variable Insurance Trust ("Goldman Sachs VIT Fund")
- - Morgan Stanley Universal Funds, Inc. ("Morgan Stanley Fund")
- - MFS(R) Variable Insurance TrustSM ("MFS Fund")
- - Neuberger & Berman Advisers Management Trust ("Neuberger & Berman AMT")
The Contract is not available in all states.
At least once each Contract Year, the Company will send the Owner an annual
statement that contains certain information pertinent to the individual Owner's
Contract. The annual statement details values and specific Contract data that
applies to each particular Contract. The annual statement does not contain
financial statements of the Company, although the Company's financial statements
are on page of this prospectus. Our Company files annual and quarterly
reports and other information with the SEC. You may read and copy any reports,
statements or other information we file at the SEC's public reference room in
Washington, D.C. You can request copies of these documents upon payment of a
duplicating fee, by writing to the SEC. Please call the SEC at 1-800-SEC-0330
for further information on the operation of the public reference rooms. Our SEC
filings are also available to the public on the SEC Internet site
(http://www.sec.gov).
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH
SUCH OFFERING MAY NOT LAWFULLY BE MADE. NO DEALER, SALESMAN, OR OTHER PERSON IS
AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS IN CONNECTION
WITH THIS OFFERING OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS, AND, IF GIVEN
OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON.
This prospectus presents information You should know before making a decision to
invest in the Contract and the available Investment Alternatives.
The Contract Value will vary daily as a function of the investment performance
of the Sub-accounts of our Variable Account and any interest credited to the
Fixed Account. The Company does not guarantee any minimum Contract Value for
amounts allocated to the Variable Account. Benefits provided by this Contract,
when based on the Guaranteed Maturity Fixed Account, are subject to a Market
Value Adjustment, the operation of which may result in upward or downward
adjustments in withdrawal benefits, death benefits, settlement values, transfers
to other Sub-accounts, or periodic income payments.
THE CONTRACTS MAY BE DISTRIBUTED THROUGH BROKER-DEALERS WHICH HAVE RELATIONSHIPS
WITH BANKS OR OTHER FINANCIAL INSTITUTIONS OR BY EMPLOYEES OF SUCH BANKS;
HOWEVER, THE CONTRACTS AND THE INVESTMENTS IN THE FUNDS ARE NOT DEPOSITS, OR
OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY ANY BANK, AND THE FUNDS' SHARES ARE
NOT FEDERALLY INSURED OR GUARANTEED BY THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY. INVESTMENT
IN THE CONTRACTS INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
THESE CONTRACTS ARE NOT FDIC INSURED.
The Company has prepared and filed a Statement of Additional Information dated
November __, 1998 with the U.S. Securities and Exchange Commission. If You wish
to receive the Statement of Additional Information, You may obtain a free copy
by calling or writing the Company at the address above. For your convenience, an
order form for the Statement of Additional Information may be found on page B-2
of this prospectus. Before ordering, You may wish to review the Table of
Contents of the Statement of Additional Information on page B-1 of this
prospectus. The Statement of Additional Information has been incorporated by
reference into this prospectus.
This prospectus is valid only when accompanied or preceded by a current
prospectus for the Funds.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION, NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
PLEASE READ THIS PROSPECTUS CAREFULLY AND RETAIN IT FOR FUTURE REFERENCE
THE DATE OF THIS PROSPECTUS IS NOVEMBER __, 1998.
<PAGE>
TABLE OF CONTENTS
Page
Glossary
Highlights
Summary of Variable Account Expenses
Condensed Financial Information
Yield and Total Return Disclosure
Financial Statements
Glenbrook Life and Annuity Company and the Variable Account
Glenbrook Life and Annuity Company.
The Variable Account.
The Funds
Fixed Account Options
Dollar Cost Averaging Fixed Account
Guaranteed Maturity Fixed Account
Example of Interest Crediting During the Guarantee Period
Withdrawals or Transfers
Market Value Adjustment
Purchase of the Contracts
Purchase Payment Limits
Free-Look Period
Crediting of Initial Purchase Payment
Allocation of Purchase Payments
Accumulation Units
Accumulation Unit Value
Transfers Among Investment Alternatives
Dollar Cost Averaging
Automatic Portfolio Rebalancing
Benefits Under the Contract Withdrawals
Income Payments
Payout Start Date for Income Payments
Variable Account
Income Payments
Fixed Amount Income Payments
Income Plans
Death Benefits
Distribution Upon Death Payment Provisions
Death Benefit Amount
Enhanced Income Benefit
Charges and Other Deductions
Deductions from Purchase Payments
Withdrawal Charge (Contingent Deferred Sales Charge)
Contract Maintenance Charge
Administrative Expense Charge
Mortality and Expense Risk Charge
Taxes
Transfer Charges
Fund Expenses
General Matters
Owner Beneficiary
Assignments
Delay of Payments
Modification
Customer Inquiries
Federal Tax Matters
Introduction
Taxation of Annuities in General
Tax Deferral
Non-Natural Owners
Diversification Requirements
Ownership Treatment
Delayed Maturity Dates
Taxation of Partial and Full Withdrawals
Taxation of Annuity Payments
Taxation of Annuity Death Benefits
Penalty Tax on Premature Distributions
Aggregation of Annuity Contracts
Tax Qualified Contracts
Restrictions Under Section 403(b) Plans
Roth Individual Retirement Annuities
Income Tax Withholding.
Distribution of the Contracts
Voting Rights
Selected Financial Data
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Competition
Employees
Properties
State and Federal Regulation
Executive Officers and Directors of the Company Executive Compensation
Legal Proceedings
Experts
Legal Matters
Financial Statements F-1
Appendix A -- Market Value Adjustment A-1
Statement of Additional Information: Table of Contents B-1
Order Form B-2
<PAGE>
GLOSSARY
ACCUMULATION UNIT -- A measure of your ownership interest in a Sub-account of
the Variable Account prior to the Payout Start Date. Analogous, though not
identical, to a share owned in a mutual fund.
ACCUMULATION UNIT VALUE -- The value of each Accumulation Unit which is
calculated each Valuation Date. Each Sub-account of the Variable Account has its
own distinct Accumulation Unit Value. Analogous, though not identical, to the
share price (net asset value) of a mutual fund.
ANNUITANT(S) -- The person or persons whose life determines the latest Payout
Start Date and the amount and duration of any income payments for Income Plan
options other than Guaranteed Payments for a Specified Period. Joint annuitants
are only permitted on or after the Payout Start Date.
BENEFICIARY(IES) -- The person(s) to whom any benefits are due when a death
benefit is payable and there is no surviving Owner.
COMPANY("WE," "US") -- Glenbrook Life and Annuity Company.
CONTRACT -- The Glenbrook Life and Annuity Company Flexible Premium Deferred
Variable Annuity Contract, known as the "Glenbrook Provider Variable Annuity"
that is described in this prospectus.
CONTRACT ANNIVERSARY -- An anniversary of the date that the Contract was issued.
CONTRACT VALUE -- The value of all amounts accumulated under the Contract prior
to the Payout Start Date, equivalent to the Accumulation Units in each
Sub-account of the Variable Account multiplied by the respective Accumulation
Unit Value, plus the value in the Fixed Account options.
CONTRACT YEAR -- A period of 12 months starting with the issue date or any
Contract Anniversary.
DOLLAR COST AVERAGING FIXED ACCOUNT -- Purchase payments may be allocated to the
Dollar Cost Averaging Fixed Account for the purpose of establishing a Dollar
Cost Averaging Program.
FIXED ACCOUNT -- All of the assets of the Company that are not in separate
accounts. Contributions to the Fixed Account are invested in the general account
of the Company.
GUARANTEED MATURITY FIXED ACCOUNT -- The Guaranteed Maturity Fixed Account is
divided into Sub-accounts. These Sub-accounts are distinguished by Guarantee
Period(s) and the dates the period(s) begin. The Fixed Sub-accounts are
established when purchase payments are allocated to the Guaranteed Maturity
Fixed Account; when previous Sub-accounts expire and new Guarantee Periods are
selected; and when You transfer an amount to the Guaranteed Maturity Fixed
Account. Also known as the "Guaranteed Maturity Account."
GUARANTEE PERIOD -- A period of years for which a specified effective annual
interest rate is guaranteed by the Company.
INCOME PLAN -- One of several ways in which a series of payments are made after
the Payout Start Date. Income payment amounts may vary based on any Sub-account
of the Variable Account and/or may be fixed for the duration of the Income Plan.
INVESTMENT ALTERNATIVES -- The Sub-accounts of the Variable Account and the
Fixed Account options.
MARKET VALUE ADJUSTMENT -- The adjustment made to the money distributed from a
Sub-account of the Guaranteed Maturity Fixed Account, prior to the end of the
Guarantee Period, to reflect the impact of changes in interest rates between the
time the Sub-account of the Guaranteed Maturity Fixed Account was established
and the time of distribution.
NON-QUALIFIED CONTRACTS -- Contracts other than Qualified Contracts.
OWNER(S)("YOU") -- With respect to individual Contracts, the person or persons
designated as the Owner in the Contract. With respect to group Contracts, an
individual participant(s) under the Contract.
PAYOUT START DATE -- The date money is applied to an income plan.
PORTFOLIOS -- The mutual fund Portfolios of the Funds.
QUALIFIED CONTRACTS -- Contracts issued under plans that qualify for special
federal income tax treatment under Sections 401(a), 403(a), 403(b) and 408 of
the Internal Revenue Code.
SHORT TERM DOLLAR COST AVERAGING FIXED ACCOUNT -- Purchase payments may be
allocated to the Short Term Dollar Cost Averaging Fixed Account for the purpose
of establishing a Dollar Cost Averaging Program with a transfer period no less
than 3 months nor more than 12 months.
VALUATION DATE -- Each day that the New York Stock Exchange is open for
business. The Valuation Date does not include such Federal and non-Federal
holidays as are observed by the New York Stock Exchange.
VALUATION PERIOD -- The period between successive Valuation Dates, commencing at
the close of regular trading on the New York Stock Exchange (which is normally
3:00pm Central Time) and ending as of the close of regular trading on the New
York Stock Exchange on the next succeeding Valuation Date.
VARIABLE ACCOUNT -- Glenbrook Life Multi-Manager Variable Account, a separate
investment account established by the Company to receive and invest purchase
payments paid under the Contracts.
VARIABLE SUB-ACCOUNT -- A portion of the Variable Account invested in shares of
a corresponding Portfolio. The investment performance of each Variable
Sub-account is linked directly to the investment performance of its
corresponding Portfolio.
HIGHLIGHTS
THE CONTRACTS
This Contracts are designed for long-term financial planning and retirement
planning. Money can be allocated to any combination of Variable Sub-accounts and
Fixed Account options. You have access to your funds either through withdrawals
of Contract Value or through periodic income payments. You bear the entire
investment risk for Contract Values and income payments based upon the Variable
Account, because values will vary depending on the investment performance of the
Portfolio(s) underlying the Variable Sub-accounts You select. See "Accumulation
Unit Value," page __ and "Income Payments," page __. You will also bear the
investment risk of adverse changes in interest rates in the event amounts are
prematurely withdrawn or transferred from Sub-accounts of the Guaranteed
Maturity Fixed Account. See "Market Value Adjustment," page __.
FREE-LOOK
You may cancel the Contract any time within 20 days after receipt of the
Contract, or longer if required by state law, and receive a full refund of
purchase payments allocated to the Fixed Account options. Purchase payments
allocated to the Variable Account will be returned after an adjustment to
reflect investment gain or loss that occurred from the date of allocation
through the date of cancellation, unless a refund of purchase payments is
required by state or federal law.
HOW TO INVEST
Your first purchase payment must be at least $3,000 (for Qualified Contracts,
$2,000). Subsequent purchase payments must be at least $50. Purchase payments
may also be made pursuant to an Automatic Addition Program. See "Purchase
Payment Limits," page __. At the time of your application, You will allocate
your purchase payment among the Investment Alternatives. The allocation You
specify on the application will be effective immediately. All allocations must
be in whole percents from 0% to 100% (total allocation equals 100%) or in whole
dollars (total allocation equals entire dollar amount of purchase payment).
Allocations may be changed by notifying the Company in writing. See "Allocation
of Purchase Payments," page __.
INVESTMENT ALTERNATIVES
Presently, the Variable Account invests in shares of the following Funds:
- - AIM Fund
- - American Century Funds
- - Dreyfus Funds
- - Fidelity VIP Funds
- - Goldman Sachs VIT Fund
- - Morgan Stanley Fund
- - MFS Fund
- - Neuberger & Berman AMT
The AIM FUND has ten available Portfolios
- -----------------------------------------
- - AIM V.I. Balanced Fund
- - AIM V.I. Capital Appreciation Fund
- - AIM V.I. Diversified Income Fund
- - AIM V.I. Global Utilities Fund
- - AIM V.I. Government Securities Fund
- - AIM V.I. Growth Fund
- - AIM V.I. Growth and Income Fund
- - AIM V.I. High Yield Fund
- - AIM V.I. International Equity Fund
- - AIM V.I. Value Fund
The AMERICAN CENTURY FUND has two available Portfolios
- ------------------------------------------------------
- - American Century VP Balanced
- - American Century VP International
The DREYFUS FUNDS have five available Portfolios
- ------------------------------------------------
- - VIF Growth and Income
- - VIF Money Market
- - The Dreyfus Socially Responsible Growth Fund, Inc.
- - VIF Small Company Stock
- - Dreyfus Stock Index Fund
The FIDELITY VIP FUNDS have four available Portfolios
- -----------------------------------------------------
- - VIP II Contrafund
- - VIP Growth
- - VIP High Income
- - VIP Equity-Income
The MFS FUND has three available Portfolios
- -------------------------------------------
- - MFS Emerging Growth Series
- - MFS Growth with Income Series
- - MFS New Discovery Series
The GOLDMAN SACHS VIT FUND has eight available Portfolios
- ------------------------------------------------------------
- - Growth and Income Fund
- - CORE U.S. Equity Fund
- - CORE Large Cap Growth Fund
- - CORE Small Cap Equity Fund
- - Capital Growth Fund
- - Mid Cap Equity Fund
- - International Equity Fund
- - Global Income Fund
The MORGAN STANLEY FUND has seven available Portfolios
- -------------------------------------------------------
- - Fixed Income
- - Equity Growth
- - Value
- - Mid Cap Value
- - U.S. Real Estate
- - Global Equity
- - International Magnum
The NEUBERGER & BERMAN AMT has three available Portfolios
- ---------------------------------------------------------
- - Partners
- - Guardian
- - Mid-Cap Growth
The assets of each Portfolio are held separately from the other Portfolios and
each has distinct investment objectives and policies which are described in the
accompanying prospectuses for the Funds.
In addition to the Variable Account, Owners can also allocate all or part of
their purchase payments to the Fixed Account options. See "Fixed Account
Options," on page __.
TRANSFERS AMONG INVESTMENT ALTERNATIVES
Prior to the Payout Start Date, You may transfer amounts among the Investment
Alternatives. The Company reserves the right to assess a $10 charge on each
transfer in excess of 12 per Contract Year. The Company is presently waiving
this charge. Transfers to the Guaranteed Maturity Fixed Account must be at least
$50. Certain Fixed Account transfers may be restricted. See "Transfers Among
Investment Alternatives," page __. You may want to enroll in a Dollar Cost
Averaging Program or an Automatic Portfolio Rebalancing Program. See "Dollar
Cost Averaging," page __, and "Automatic Portfolio Rebalancing," page __.
CHARGES AND DEDUCTIONS
The costs of the Contract include: 1) a contract maintenance charge ($35
annually); 2) a mortality and expense risk charge deducted daily, equal on an
annual basis to 1.05% of the Contract's daily net assets of the Variable
Account; for Contracts with the optional Enhanced Death Benefit Rider, an
additional mortality and expense risk charge of .22% is assessed bringing the
total mortality and expense risk charge to 1.27%; and, for Contracts with the
optional Enhanced Death Benefit and Income Benefit Combination Rider an
additional mortality and expense risk charge of .44% is assessed bringing the
total mortality and expense risk charge to 1.49%; and 3) an administrative
expense charge deducted daily, equal on an annual basis to .10% of the
Contract's daily net assets of the Variable Account. The Company reserves the
right to assess a transfer charge ($10 on each transfer in excess of twelve per
Contract Year). Additional deductions may be made for certain taxes. See
"Contract Maintenance Charge," page __, "Mortality and Expense Risk Charge,"
page __, "Administrative Expense Charge," page __, "Transfer Charges," page __,
and "Taxes," page __.
WITHDRAWALS
You may withdraw all or part of the Contract Value at any time prior to the
earlier of the death of the Owner (or the Annuitant if the Owner is not a
natural person) or the Payout Start Date. Each Contract Year, no withdrawal
charges or Market Value Adjustments will be applied to amounts withdrawn up to
15% of the amount of purchase payments. Amounts withdrawn in excess of the 15%
may be subject to a withdrawal charge of 0% to 6% depending on how long purchase
payments have been invested in the Contract. Amounts withdrawn from a
Sub-account of the Guaranteed Maturity Fixed Account, in excess of the 15%,
except during the 30 day period after the Guarantee Period expires, will be
subject to a Market Value Adjustment. Withdrawals may also be subject to income
tax and a 10% tax penalty. Once the total amount of withdrawals exceed the total
amount of purchase payments, future withdrawals will not be subject to a
withdrawal charge. See "Withdrawals," page __, "Withdrawals or Transfers," page
__, "Taxation of Annuities in General," page __ and "Withdrawal Charge," page
__.
DEATH BENEFIT
The Company will pay a death benefit prior to the Payout Start Date on the death
of any Owner or, if the Owner is not a natural person, the death of the
Annuitant. See "Death Benefit Amount," page __.
INCOME PAYMENTS
You will receive periodic income payments beginning on the Payout Start Date.
You may choose among several Income Plans to fit your needs. Income payments may
be received for a specified period or for life (either single or joint life),
with or without a guaranteed number of payments. You can select income payments
that are fixed, variable or a combination of fixed and variable. See "Income
Payments," page __.
SUMMARY OF VARIABLE ACCOUNT EXPENSES
The following table illustrates all expenses and fees that You will incur. The
expenses and fees set forth in the table are based on charges under the Contract
and on the expenses of the Variable Account and the underlying Funds.
OWNER TRANSACTION EXPENSES (ALL SUB-ACCOUNTS)
Sales Load Imposed on Purchases (as a percentage of purchase payments) None
Withdrawal Charge (as a percentage of purchase payments) *
APPLICABLE
NUMBER OF COMPLETE WITHDRAWAL
YEARS SINCE PURCHASE CHARGE AS
PAYMENT WAS MADE A PERCENTAGE
- -------------------- ------------
0 year 6%
1 year 6%
2 years 5%
3 years 5%
4 years 4%
5 years 3%
6 years or more 0%
Transfer Fee **
Contract Maintenance Charge $35***
<PAGE>
VARIABLE ACCOUNT ANNUAL EXPENSES (As A Percentage Of The Contract's Average Net
Assets In The Variable Account)
<TABLE>
<CAPTION>
With Optional
Without Optional With Optional Enhanced Death
Enhanced Death Enhanced Death and Income Benefit
Benefit Rider Benefit Rider Combination Rider
---------------- -------------- ------------------
<S> <C> <C> <C>
Mortality And Expense Risk Charge 1.05% 1.27% 1.49%
Administrative Expense Charge 0.10% 0.10% 0.10%
Total Variable Account Annual Expenses 1.15% 1.37% 1.59%
</TABLE>
* Each Contract Year up to 15% of the amount of purchase payments may be
withdrawn without a withdrawal charge or a Market Value Adjustment.
** No charges will be imposed on the first 12 transfers in any Contract Year.
The Company reserves the right to assess a $10 charge for each transfer in
excess of 12 in any Contract Year, excluding transfers due to Dollar Cost
Averaging and Automatic Portfolio Rebalancing.
*** The Contract Maintenance Charge will be waived if total purchase payments
as of a Contract Anniversary or upon a full withdrawal equals $50,000 or
more or if all monies are allocated to the Fixed Account options on the
Contract Anniversary.
<TABLE>
<CAPTION>
PORTFOLIO EXPENSES (Net Of Voluntary Reductions And Reimbursements)
(As A Percentage Of Portfolio Assets)
Total Fund
Management Other Annual
Portfolio Fees Expenses Expenses
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AIM V.I. Balanced Fund1, 2 0.75% 0.44% 1.19%
AIM V.I. Capital Appreciation Fund1 0.63% 0.05% 0.68%
AIM V.I. Diversified Income Fund1 0.60% 0.20% 0.80%
AIM V.I. Global Utilities Fund1 0.65% 0.63% 1.28%
AIM V.I. Government Securities Fund1 0.50% 0.37% 0.87%
AIM V.I. Growth Fund1 0.65% 0.08% 0.73%
AIM V.I. Growth and Income Fund1 0.63% 0.06% 0.69%
AIM V.I. High Yield1, 2 0.63% 0.48% 1.11%
AIM V.I. International Equity Fund1 0.75% 0.18% 0.93%
AIM V.I. Value Fund1 0.62% 0.08% 0.70%
American Century VP International 1.50% 0.00% 1.50%
American Century VP Balanced 1.00% 0.00% 1.00%
Dreyfus Socially Responsible Growth 0.75% 0.07% 0.82%
Dreyfus Stock Index 0.25% 0.03% 0.28%
VIF Small Company Stock 0.75% 0.37% 1.12%
VIF Growth and Income 0.75% 0.05% 0.80%
VIF Money Market 0.50% 0.11% 0.61%
Fidelity VIP Growth 0.60% 0.09% 0.69%
Fidelity VIP II Contrafund 0.60% 0.11% 0.71%
Fidelity VIP High Income 0.59% 0.12% 0.71%
Fidelity VIP Equity-Income 0.50% 0.08% 0.58%
Goldman Sachs Growth and Income Fund3 0.75% 0.15% 0.90%
Goldman Sachs CORE U.S. Equity Fund3 0.70% 0.10% 0.80%
Goldman Sachs CORE Large Cap Growth Fund3 0.70% 0.10% 0.80%
Goldman Sachs CORE Small Cap Equity Fund3 0.75% 0.15% 0.90%
Goldman Sachs Capital Growth Fund3 0.75% 0.15% 0.90%
Goldman Sachs Mid Cap Equity Fund3 0.80% 0.15% 0.95%
Goldman Sachs International Equity Fund3 1.00% 0.25% 1.25%
Goldman Sachs Global Income Fund3 0.90% 0.15% 1.05%
Morgan Stanley Fixed Income4 0.00% 0.70% 0.70%
Morgan Stanley Equity Growth4 0.00% 0.85% 0.85%
Morgan Stanley Value4 0.00% 0.85% 0.85%
Morgan Stanley Mid Cap Value4 0.00% 1.05% 1.05%
Morgan Stanley U.S. Real Estate4 0.00% 1.10% 1.10%
Morgan Stanley Global Equity4 0.00% 1.15% 1.15%
Morgan Stanley International Magnum4 0.00% 1.15% 1.15%
MFS Emerging Growth Series 0.75% 0.12% 0.87%
MFS Growth with Income Series 0.75% 0.25% 1.00%
MFS New Discovery Series 0.90% 0.25% 1.15%
Neuberger & Berman AMT Guardian 5, 6 0.60% 0.40% 1.00%
Neuberger & Berman AMT Mid-Cap Growth5, 6 0.60% 0.40% 1.00%
Neuberger & Berman AMT Partners5 0.80% 0.06% 0.86%
</TABLE>
===============================================================================
1 A I M Advisors, Inc. ("AIM") may from time to time voluntarily waive or
reduce its respective fees. Effective May 1, 1998, the Funds reimburse AIM
in an amount up to 0.25% of the average net asset value of each Fund, for
expenses incurred in providing, or assuring that participating insurance
companies provide certain administrative services. Currently, the fee only
applies to the average net asset value of each Fund in excess of the net
asset value of each Fund as calculated on April 30, 1998.
2 The fees and expenses are based on estimated expenses for the current
fiscal year.
3 Estimated for the current fiscal year based based on current average asset
levels. Each Portfolio's investment advisor has voluntarily agreed to
reduce or limit certain Other Expenses (excluding management fees, taxes,
interest and brokerage fees and litigation, indemnification and other
extraordinary expenses) to the extent such expenses exceed .15%, .10%,
.10%, .15%, .15%, .15%, .25% and .15%, respectively, of average daily net
assets of Goldman Sachs Growth and Income Fund, Goldman Sachs CORE U.S.
Equity Fund, Goldman Sachs CORE Large Cap Growth Fund, Goldman Sachs Small
Cap Equity Fund, Goldman Sachs Capital Growth Fund, Goldman Sachs Mid Cap
Equity Fund, Goldman Sachs International Equity Fund and Goldman Sachs
Global Income Fund. Without such reduction, the estimated Other Expenses
for the current fiscal year would have been 2.67%, 2.29%, 2.03%, 2.67%,
4.49%, 5.34%, 1.97% and 2.34% for the Goldman Sachs Growth and Income Fund,
Goldman Sachs CORE U.S. Equity Fund, Goldman Sachs CORE Large Cap Growth
Fund, Goldman Sachs Small Cap Equity Fund, Goldman Sachs Capital Growth
Fund, Goldman Sachs Mid Cap Equity Fund, Goldman Sachs International Equity
Fund and Goldman Sachs Global Income Fund, respectively.
4 The management fee has been reduced to reflect the voluntary waiver of a
portion or all of the management and the reimbursement by the extent "Total
Fund Annual Expenses" exceed the percentages set forth above. The advisers
can terminate this voluntary waiver at any time in their sole discretion.
Absent such reductions, "management Fees", "Other Expenses" and "Total
Annual Expenses", respectively, would be as follows: Fixed Income Portfolio
- 0.40%, 1.31%, 1.71%; Equity Growth Portfolio - 0.55%, 1.50%, 2.05%; Value
- 0.55%, 1.32%, 1.87%; Mid-Cap Value - 0.75%, 1.38%, 2.13%; U.S. Real
Estate Portfolio - 0.80%, 1.52%, 2.32%; Global Equity Portfolio - 0.80%,
1.63%, 2.43%; International Magnum Portfolio - 0.80%, 1.98%, 2.78%.
5 Neuberger & Berman Advisers Management Trust is divided into portfolios
("Portfolios"), each of which invests all of its net investable assets in a
corresponding series ("series") of Advisors Management Trust. The figures
reported under "Management Fees" include the aggregate of the
administration fees paid by the Portfolio and the management fees paid by
its corresponding Series. Similarly, "Other Expenses" includes all other
expenses of the Portfolio and its corresponding Series.
6 Expenses reflect expense reimbursement. Neuberger & Berman Management Inc.
("NBMI") has undertaken to reimburse the Guardian and Mid-Cap Growth
Portfolios for certain operating expenses, including the compensation of
NMBI and excluding taxes , interest, extraordinary expenses, brokerage
commissions and transaction costs, that exceed, in the aggregate, 1% of the
Guardian and Mid-Cap Growth Portfolios' average daily net asset value.
Absent the reimbursement, the Total Annual Expenses for the year ended
December 31, 1997 would be 1.25% for the Guardian Portfolio and 1.25% for
the Mid-Cap Growth Portfolio. The expense reimbursement policies are
subject to terminate upon 60 days written notice, and there can be no
assurance that these policies will be continued thereafter.
EXAMPLE
You would pay the following cumulative expenses on a $1,000 investment, assuming
a 5% annual return under the following circumstances.
If You terminate your Contract at the end of the applicable time period:
(With Enhanced Death Benefit Rider)
<TABLE>
<CAPTION>
PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
AIM V.I. Balanced Fund $78 $125 $167 $299
AIM V.I. Capital Appreciation Fund $73 $110 $140 $246
AIM V.I. Diversified Income Fund $74 $113 $147 $259
AIM V.I. Global Utilities Fund $79 $128 $171 $308
AIM V.I. Government Securities Fund $75 $115 $150 $266
AIM V.I. Growth Fund $73 $111 $143 $252
AIM V.I. Growth and Income Fund $73 $110 $141 $247
AIM V.I. High Yield Fund $73 $110 $141 $247
AIM V.I. International Equity Fund $75 $117 $153 $272
AIM V.I. Value Fund $73 $110 $141 $248
American Century VP International $81 $135 $182 $329
American Century VP Balanced $76 $119 $157 $279
Dreyfus Socially Responsible Growth $74 $114 $148 $261
Dreyfus Stock Index $69 $ 97 $119 $203
VIF Small Company Stock $77 $123 $163 $292
VIF Growth and Income $74 $113 $147 $259
VIF Money Market $72 $107 $137 $239
Fidelity VIP Growth $73 $110 $141 $247
Fidelity VIP II Contrafund $73 $110 $142 $249
Fidelity VIP High Income $73 $110 $142 $249
Fidelity VIP Equity-Income $72 $106 $135 $236
Goldman Sachs Growth and Income Fund $75 $116 $152 $269
Goldman Sachs CORE U.S. Equity Fund $74 $113 $147 $259
Goldman Sachs CORE Large Cap Growth Fund $74 $113 $147 $259
Goldman Sachs CORE Small Cap Equity Fund $75 $116 $152 $269
Goldman Sachs Capital Growth Fund $75 $116 $152 $269
Goldman Sachs Mid Cap Equity Fund $76 $118 $154 $274
Goldman Sachs International Equity Fund $79 $127 $170 $305
Goldman Sachs Global Income Fund $77 $121 $159 $285
Morgan Stanley Fixed Income $73 $110 $141 $248
Morgan Stanley Equity Growth $74 $115 $149 $264
Morgan Stanley Value $74 $115 $149 $264
Morgan Stanley Mid Cap Value $77 $121 $159 $285
Morgan Stanley U.S. Real Estate $77 $122 $162 $290
Morgan Stanley Global Equity $78 $124 $164 $295
Morgan Stanley International Magnum $78 $124 $164 $295
MFS Emerging Growth $75 $115 $150 $266
MFS Growth with Income $76 $119 $157 $279
MFS New Discovery $78 $124 $164 $295
Neuberger & Berman AMT Guardian $76 $119 $157 $279
Neuberger & Berman AMT Partners $75 $115 $150 $265
Neuberger & Berman AMT Mid-Cap Growth $76 $119 $157 $279
</TABLE>
(Without Enhanced Death Benefit Rider)
<TABLE>
<CAPTION>
PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
AIM V.I. Balanced Fund $76 $118 $155 $276
AIM V.I. Capital Appreciation Fund $70 $103 $129 $223
AIM V.I. Diversified Income Fund $72 $106 $135 $236
AIM V.I. Global Utilities Fund $77 $121 $160 $286
AIM V.I. Government Securities Fund $72 $109 $139 $243
AIM V.I. Growth Fund $71 $104 $131 $228
AIM V.I. Growth and Income Fund $71 $103 $129 $224
AIM V.I. High Yield Fund $71 $103 $129 $224
AIM V.I. International Equity Fund $73 $110 $142 $249
AIM V.I. Value Fund American $71 $103 $130 $225
Century VP International American $79 $128 $171 $308
Century VP Balanced $74 $113 $146 $257
Dreyfus Socially Responsible Growth $72 $107 $136 $238
Dreyfus Stock Index $66 $ 90 $108 $179
VIF Small Company Stock $75 $116 $152 $269
VIF Growth and Income $72 $106 $135 $236
VIF MoneyMarket Fidelity $70 $101 $125 $215
VIP Growth Fidelity $71 $103 $129 $224
VIP II Contrafund Fidelity $71 $104 $130 $226
VIP High Income Fidelity $71 $104 $130 $226
VIP Equity-Income $69 $100 $124 $212
Goldman Sachs Growth and Income Fund $73 $110 $140 $246
Goldman Sachs CORE U.S. Equity Fund $72 $106 $135 $236
Goldman Sachs CORE Large Cap Growth Fund $72 $106 $135 $236
Goldman Sachs CORE Small Cap Equity Fund $73 $110 $140 $246
Goldman Sachs Capital Growth Fund $73 $110 $140 $246
Goldman Sachs Mid Cap Equity Fund $73 $111 $143 $252
Goldman Sachs International Equity Fund $76 $120 $158 $283
Goldman Sachs Global Income Fund $74 $114 $148 $262
Morgan Stanley Fixed Income $71 $103 $130 $225
Morgan Stanley Equity Growth $72 $108 $138 $241
Morgan Stanley Value $72 $108 $138 $241
Morgan Stanley Mid Cap Value $74 $114 $148 $262
Morgan Stanley U.S. Real Estate $75 $116 $151 $267
Morgan Stanley Global Equity $75 $117 $153 $272
Morgan Stanley International Magnum $75 $117 $153 $272
MFS Emerging Growth $72 $109 $139 $243
MFS Growth with Income $74 $113 $146 $257
MFS New Discovery $75 $117 $153 $272
Neuberger & Berman AMT Guardian $74 $113 $146 $257
Neuberger & Berman AMT Partners $72 $108 $138 $242
Neuberger & Berman AMT Mid-Cap Growth $74 $113 $146 $257
</TABLE>
(With Enhanced Death and Income Benefit Combination Rider)
<TABLE>
<CAPTION>
PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
AIM V.I. Balanced Fund $80 $132 $178 $320
AIM V.I. Capital Appreciation Fund $75 $116 $152 $269
AIM V.I. Diversified Income Fund $76 $120 $158 $282
AIM V.I. Global Utilities Fund $81 $135 $182 $329
AIM V.I. Government Securities Fund $77 $122 $161 $289
AIM V.I. Growth Fund $76 $118 $154 $274
AIM V.I. Growth and Income Fund $75 $117 $152 $270
AIM V.I. High Yield Fund $75 $117 $152 $270
AIM V.I. International Equity Fund $78 $124 $164 $295
AIM V.I. Value Fund $75 $117 $153 $271
American Century VP International $83 $141 $193 $350
American Century VP Balanced $78 $126 $168 $302
Dreyfus Socially Responsible Growth $76 $121 $159 $284
Dreyfus Stock Index $71 $104 $131 $227
VIF Small Company Stock $80 $130 $174 $314
VIF Growth and Income $76 $120 $158 $282
VIF Money Market Fidelity $74 $114 $148 $262
VIP Growth Fidelity $75 $117 $152 $270
VIP II Contrafund Fidelity $75 $117 $153 $272
VIP High Income Fidelity $75 $117 $153 $272
VIP Equity-Income $74 $113 $174 $259
Goldman Sachs Growth and Income Fund $77 $123 $163 $292
Goldman Sachs CORE U.S. Equity Fund $76 $120 $158 $282
Goldman Sachs CORE Large Cap Growth Fund $76 $120 $158 $282
Goldman Sachs CORE Small Cap Equity Fund $77 $123 $163 $292
Goldman Sachs Capital Growth Fund $77 $123 $163 $292
Goldman Sachs Mid Cap Equity Fund $78 $125 $166 $297
Goldman Sachs International Equity Fund $81 $134 $181 $326
Goldman Sachs Global Income Fund $79 $128 $171 $307
Morgan Stanley Fixed Income $75 $117 $153 $271
Morgan Stanley Equity Growth $77 $122 $160 $287
Morgan Stanley Value $77 $122 $160 $287
Morgan Stanley Mid Cap Value $79 $128 $171 $307
Morgan Stanley U.S. Real Estate $79 $129 $173 $312
Morgan Stanley Global Equity $80 $131 $176 $317
Morgan Stanley International Magnum $80 $131 $176 $317
MFS Emerging Growth $77 $122 $161 $289
MFS Growth with Income $78 $126 $168 $302
MFS New Discovery $80 $131 $176 $317
Neuberger & Berman AMT Guardian $78 $126 $168 $302
Neuberger & Berman AMT Partners $77 $122 $161 $288
Neuberger & Berman AMT Mid-Cap Growth $78 $126 $168 $302
</TABLE>
If You do not terminate your Contract at the end of the applicable time period:
(With Enhanced Death Benefit Rider)
<TABLE>
<CAPTION>
PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
AIM V.I. Balanced Fund $27 $83 $141 $299
AIM V.I. Capital Appreciation Fund $22 $67 $115 $246
AIM V.I. Diversified Income Fund $23 $71 $121 $259
AIM V.I. Global Utilities Fund $28 $85 $146 $308
AIM V.I. Government Securities Fund $24 $73 $125 $266
AIM V.I. Growth Fund $22 $69 $117 $252
AIM V.I. Growth and Income Fund $22 $67 $115 $247
AIM V.I. High Yield Fund $22 $67 $115 $247
AIM V.I. International Equity Fund $24 $75 $128 $272
AIM V.I. Value Fund $22 $68 $116 $248
American Century VP International $30 $92 $157 $329
American Century VP Balanced $25 $77 $131 $279
Dreyfus Socially Responsible Growth $23 $71 $122 $261
Dreyfus Stock Index $18 $55 $ 94 $203
VIF Small Company Stock $26 $81 $137 $292
VIF Growth and Income $23 $71 $121 $259
VIF Money Market Fidelity $21 $65 $111 $239
VIP Growth Fidelity $22 $67 $115 $247
VIP II Contrafund Fidelity $22 $68 $116 $249
VIP High Income Fidelity $22 $68 $116 $249
VIP Equity-Income $21 $64 $110 $236
Goldman Sachs Growth and Income Fund $24 $74 $126 $269
Goldman Sachs CORE U.S. Equity Fund $23 $71 $121 $259
Goldman Sachs CORE Large Cap Growth Fund $23 $71 $121 $259
Goldman Sachs CORE Small Cap Equity Fund $24 $74 $126 $269
Goldman Sachs Capital Growth Fund $24 $74 $126 $269
Goldman Sachs Mid Cap Equity Fund $25 $75 $129 $274
Goldman Sachs International Equity Fund $28 $85 $144 $305
Goldman Sachs Global Income Fund $26 $78 $134 $285
Morgan Stanley Fixed Income $22 $68 $116 $248
Morgan Stanley Equity Growth $23 $72 $124 $264
Morgan Stanley Value $23 $72 $124 $264
Morgan Stanley Mid Cap Value $26 $78 $134 $285
Morgan Stanley U.S. Real Estate $26 $80 $136 $290
Morgan Stanley Global Equity $27 $82 $139 $295
Morgan Stanley International Magnum $27 $82 $139 $295
MFS Emerging Growth $24 $73 $125 $266
MFS Growth with Income $25 $77 $131 $279
MFS New Discovery $27 $82 $139 $295
Neuberger & Berman AMT Guardian $25 $77 $131 $279
Neuberger & Berman AMT Partners $24 $73 $124 $265
Neuberger & Berman AMT Mid-Cap Growth $25 $77 $131 $279
</TABLE>
(Without Enhanced Death Benefit Rider)
<TABLE>
<CAPTION>
PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
AIM V.I. Balanced Fund $25 $76 $130 $276
AIM V.I. Capital Appreciation Fund $19 $60 $103 $223
AIM V.I. Diversified Income Fund $21 $64 $110 $236
AIM V.I. Global Utilities Fund $26 $79 $134 $286
AIM V.I. Government Securities Fund $21 $66 $113 $243
AIM V.I. Growth Fund $20 $62 $106 $228
AIM V.I. Growth and Income Fund $20 $61 $104 $224
AIM V.I. High Yield Fund $20 $61 $104 $224
AIM V.I. International Equity Fund $22 $68 $116 $249
AIM V.I. Value Fund $20 $61 $104 $225
American Century VP International $28 $85 $146 $308
American Century VP Balanced $23 $70 $120 $257
Dreyfus Socially Responsible Growth $21 $65 $111 $238
Dreyfus Stock Index $15 $48 $ 82 $179
VIF Small Company Stock $24 $74 $126 $269
VIF Growth and Income $21 $64 $110 $236
VIF Money Market Fidelity $19 $58 $100 $215
VIP Growth Fidelity $20 $61 $104 $224
VIP II Contrafund Fidelity $20 $61 $105 $226
VIP High Income Fidelity $20 $61 $105 $226
VIP Equity-Income $18 $57 $ 98 $212
Goldman Sachs Growth and Income Fund $22 $67 $115 $246
Goldman Sachs CORE U.S. Equity Fund $21 $64 $110 $236
Goldman Sachs CORE Large Cap Growth Fund $21 $64 $110 $236
Goldman Sachs CORE Small Cap Equity Fund $22 $67 $115 $246
Goldman Sachs Capital Growth Fund $22 $67 $115 $246
Goldman Sachs Mid Cap Equity Fund $22 $69 $117 $252
Goldman Sachs International Equity Fund $25 $78 $133 $283
Goldman Sachs Global Income Fund $23 $72 $123 $262
Morgan Stanley Fixed Income $20 $61 $104 $225
Morgan Stanley Equity Growth $21 $65 $112 $241
Morgan Stanley Value $21 $65 $112 $241
Morgan Stanley Mid Cap Value $23 $72 $123 $262
Morgan Stanley U.S. Real Estate $24 $73 $125 $267
Morgan Stanley Global Equity $24 $75 $128 $272
Morgan Stanley International Magnum $24 $75 $128 $272
MFS Emerging Growth $21 $66 $113 $243
MFS Growth with Income $23 $70 $120 $257
MFS New Discovery $24 $75 $128 $272
Neuberger & Berman AMT Guardian $23 $70 $120 $257
Neuberger & Berman AMT Partners $21 $66 $113 $242
Neuberger & Berman AMT Mid-Cap Growth $23 $70 $120 $257
</TABLE>
(With Enhanced Death and Income Benefit Combination Rider)
<TABLE>
<CAPTION>
PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
AIM V.I. Balanced Fund $29 $89 $152 $320
AIM V.I. Capital Appreciation Fund $24 $74 $126 $269
AIM V.I. Diversified Income Fund $25 $78 $132 $282
AIM V.I. Global Utilities Fund $30 $92 $157 $329
AIM V.I. Government Securities Fund $26 $80 $136 $289
AIM V.I. Growth Fund $25 $75 $129 $274
AIM V.I. Growth and Income Fund $24 $74 $127 $270
AIM V.I. High Yield Fund $24 $74 $127 $270
AIM V.I. International Equity Fund $27 $82 $139 $295
AIM V.I. Value Fund $24 $74 $127 $271
American Century VP International $32 $99 $168 $350
American Century VP Balanced $27 $84 $143 $302
Dreyfus Socially Responsible Growth $25 $78 $133 $284
Dreyfus Stock Index $20 $61 $105 $227
VIF Small Company Stock $29 $87 $149 $314
VIF Growth and Income $25 $78 $132 $282
VIF Money Market Fidelity $23 $72 $123 $262
VIP Growth Fidelity $24 $74 $127 $270
VIP II Contrafund Fidelity $24 $75 $128 $272
VIP High Income Fidelity $24 $75 $128 $272
VIP Equity-Income $23 $71 $121 $259
Goldman Sachs Growth and Income Fund $26 $81 $137 $292
Goldman Sachs CORE U.S. Equity Fund $25 $78 $132 $282
Goldman Sachs CORE Large Cap Growth Fund $25 $78 $132 $282
Goldman Sachs CORE Small Cap Equity Fund $26 $81 $137 $292
Goldman Sachs Capital Growth Fund $26 $81 $137 $292
Goldman Sachs Mid Cap Equity Fund $27 $82 $140 $297
Goldman Sachs International Equity Fund $30 $91 $155 $326
Goldman Sachs Global Income Fund $28 $85 $145 $307
Morgan Stanley Fixed Income $24 $74 $127 $271
Morgan Stanley Equity Growth $26 $79 $135 $287
Morgan Stanley Value $26 $79 $135 $287
Morgan Stanley Mid Cap Value $28 $85 $145 $307
Morgan Stanley U.S. Real Estate $28 $87 $148 $312
Morgan Stanley Global Equity $29 $88 $150 $317
Morgan Stanley International Magnum $29 $88 $150 $317
MFS Emerging Growth $26 $80 $136 $289
MFS Growth with Income $27 $84 $143 $302
MFS New Discovery $29 $88 $150 $317
Neuberger & Berman AMT Guardian $27 $84 $143 $302
Neuberger & Berman AMT Partners $26 $79 $135 $288
Neuberger & Berman AMT Mid-Cap Growth $27 $84 $143 $302
</TABLE>
THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. The purpose
of the table is to assist You in understanding the various costs and expenses
that You will bear directly or indirectly. Premium taxes are not reflected in
the example, but may be applicable.
CONDENSED FINANCIAL INFORMATION
The Variable Account had no material operations for the period ended December
31, 1997. Accordingly, no financial information for that period is included
herein.
YIELD AND TOTAL RETURN DISCLOSURE
From time to time the Variable Account may advertise the yield and total return
investment performance of one or more Sub-accounts. Yield and standardized total
return advertisements include all charges and expenses attributable to the
Contracts. Including these fees has the effect of decreasing the advertised
performance of a Sub-account, so that a Sub-account's investment performance
will not be directly comparable to that of an ordinary mutual fund.
When a Sub-account advertises its standardized total return it will be
calculated for one year, five years, and ten years or since inception if the
Sub-account has not been in existence for such periods. Total return is measured
by comparing the value of an investment in the Sub-account at the end of the
relevant period to the value of the investment at the beginning of the period.
In addition to the standardized total return, the Sub-account may advertise a
non-standardized total return. This figure may be calculated for one year, five
years, and ten years or other periods. Non-standardized total return is measured
in the same manner as the standardized total return described above, except that
the withdrawal charges under the Contract are not deducted. Therefore, a
non-standardized total return for a Sub-account can be higher than a
standardized total return for a Sub-account.
Certain Sub-accounts may advertise yield in addition to total return. Except in
the case of the Money Market Sub-account, the yield will be computed in the
following manner: the net investment income per unit earned during a recent one
month period is divided by the unit value on the last day of the period, and
then annualized. This figure reflects the recurring charges at the separate
account level.
The Money Market Sub-account may advertise, in addition to the total return,
either yield or the effective yield. The yield in this case refers to the income
generated by an investment in that Sub-account over a seven-day period net of
recurring charges at the separate account level. The income is then annualized
(i.e., the amount of income generated by the investment during that week is
assumed to be generated each week over a 52-week period and is shown as a
percentage of the investment). The effective yield is calculated similarly but
when annualized, the income earned by an investment in the Money Market
Sub-account is assumed to be reinvested at the end of each seven-day period. The
effective yield will be slightly higher than the yield because of the
compounding effect of this assumed reinvestment during a 52-week period.
The Variable Account may also disclose yield and total return for periods prior
to the date that the Variable Account commenced operations. For periods prior to
the date the Variable Account commenced operations, performance information for
the Sub-accounts will be calculated based on the performance of the underlying
Portfolios and the assumption that the Sub-accounts were in existence for the
same periods as those of the underlying Portfolios, with a level of charges
equal to those currently assessed against the Sub-accounts.
Please refer to the Statement of Additional Information for a further
description of the method used to calculate a Sub-account's yield and total
return.
FINANCIAL STATEMENTS
The financial statements of Glenbrook Life and Annuity Company begin on page F-1
of this prospectus. The financial statements and notes of the Company as of June
30, 1998 and for the three-month and six-month periods ended June 30, 1998 and
1997 are unaudited. See "Experts" below. The financial statements of the
Variable Account are not included in the Statement of Additional Information
because it had no material operations for the year ended December 31, 1997.
GLENBROOK LIFE AND ANNUITY COMPANY AND THE VARIABLE ACCOUNT
GLENBROOK LIFE AND ANNUITY COMPANY
The Company is the issuer of the Contract. The Company is a stock life insurance
company which was organized under the laws of the State of Illinois in 1992. The
Company was originally organized under the laws of the State of Indiana in 1965.
From 1965 to 1983 the Company was known as "United Standard Life Assurance
Company" and from 1983 to 1992 the Company was known as "William Penn Life
Assurance Company of America." As of the date of this prospectus, the Company is
licensed to operate in the District of Columbia and all states except New York.
The Company intends to market the Contract in those jurisdictions in which it is
licensed to operate. The Company's home office is located at 3100 Sanders Road,
Northbrook, Illinois 60062.
The Company is a wholly owned subsidiary of Allstate Life Insurance Company
("Allstate Life"), a stock life insurance company incorporated under the laws of
the State of Illinois. Allstate Life is a wholly owned subsidiary of Allstate
Insurance Company ("Allstate"), a stock property-liability insurance company
incorporated under the laws of Illinois. All of the outstanding capital stock of
Allstate is owned by The Allstate Corporation ("Corporation"). On June 30, 1995,
Sears, Roebuck and Co. ("Sears") distributed its 80.3% ownership in the
Corporation to Sears common shareholders through a tax-free dividend.
The Company and Allstate Life entered into a reinsurance agreement, effective
June 5, 1992, under which the Company reinsures substantially all of its
business with Allstate Life. Under the reinsurance agreement, Fixed Account
purchase payments are automatically transferred to Allstate Life and become
invested with the assets of Allstate Life, and Allstate Life accepts 100% of the
liability under such contracts. However, the obligations of Allstate Life under
the reinsurance agreement are to the Company; the Company remains the sole
obligor under the Contract to the Owners.
THE VARIABLE ACCOUNT
Established on January 15, 1996, the Variable Account is a unit investment trust
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940. However, such registration does not signify that the
Commission supervises the management or investment practices or policies of the
Variable Account. The investment performance of the Variable Account is entirely
independent of both the investment performance of the Company's general account
and the performance of any other separate account.
The Variable Account is divided into multiple Sub-accounts, each of which
invests solely in its corresponding Portfolio. Additional Variable Sub-accounts
may be added at the discretion of the Company. The Company may also eliminate
one or more Sub-accounts if, in its sole discretion, marketing, tax or
investment conditions so warrant.
The assets of the Variable Account are held separately from the other assets of
the Company. They are not chargeable with liabilities incurred in the Company's
other business operations. Accordingly, the income, capital gains and capital
losses, realized or unrealized, incurred on the assets of the Variable Account
are credited to or charged against the assets of the Variable Account, without
regard to the income, capital gains or capital losses arising out of any other
business the Company may conduct. The Company's obligations arising under the
Contracts are general corporate obligations of the Company.
THE FUNDS
The Variable Account will invest in shares of one or more Funds. The Funds are
registered with the Securities and Exchange Commission as open-end, series,
management investment companies. Registration of the Funds does not involve
supervision of their management, investment practices or policies by the
Securities and Exchange Commission. The Funds' Portfolios are designed to
provide investment vehicles for variable insurance contracts of various
insurance companies, in addition to Contracts funded by the Variable Account.
The Funds available for investment by the Variable Account as of the date of
this Prospectus are listed below:
I. AIM FUND
- - AIM V.I. Balanced Fund - is a diversified Portfolio which seeks to achieve as
high a total return as possible, consistent with preservation of capital, by
investing in a broadly diversified portfolio of high-yielding securities,
including common stocks, preferred stocks, convertible securities and bonds.
- - AIM V.I. Capital Appreciation Fund - is a diversified Portfolio which seeks to
provide capital appreciation through investments in common stocks, with emphasis
on medium-sized and smaller emerging growth companies.
- - AIM V.I. Diversified Income Fund - is a diversified Portfolio which seeks to
achieve a high level of current income primarily by investing in a diversified
portfolio of foreign and U.S. government and corporate debt securities,
including lower rated high yield debt securities (commonly known as "junk
bonds"). The risks of investing in junk bonds are described in the accompanying
prospectus for the Portfolio, which should be read carefully before investing.
- - AIM V.I. Global Utilities Fund - is a non-diversified Portfolio which seeks to
achieve a high level of current income and, as a secondary objective, to achieve
capital appreciation, by investing primarily in common and preferred stocks of
public utility companies (either domestic or foreign).
- - AIM V.I. Government Securities Fund - is a diversified Portfolio which seeks
to achieve a high level of current income consistent with reasonable concern for
safety of principal by investing in debt securities issued, guaranteed or
otherwise backed by the U.S.
Government.
- - AIM V.I. Growth Fund - is a diversified Portfolio which seeks to provide
growth of capital through investments primarily in common stocks of leading U.S.
companies considered by A I M Advisors, Inc. ("AIM") to have strong earnings
momentum.
- - AIM V.I. Growth and Income Fund - is a diversified Portfolio which seeks to
provide growth of capital, with current income as a secondary objective by
investing primarily in dividend paying common stocks which have prospects for
both growth of capital and dividend income.
- - AIM V.I. High Yield Fund - is a diversified Portfolio which seeks to achieve a
high level of current income by investing primarily in publicly traded debt
securities of less than investment grade. Debt securities of less than
investment grade are considered "high risk" securities, commonly referred to as
"junk bonds." The Portfolio may also invest in preferred stocks. The securities
held by the Portfolio may be subject to greater risk of loss of income and
principal and are more speculative in nature. The risks of investing in junk
bonds are described in the accompanying prospectus for the Fund Series, which
should be read carefully before investing.
- - AIM V.I. International Equity Fund - is a diversified Portfolio which seeks to
provide long-term growth of capital by investing in international equity
securities, the issuers of which are considered by AIM to have strong earnings
momentum.
- - AIM V.I. Value Fund - is a diversified Portfolio which seeks to achieve
long-term growth of capital by investing primarily in equity securities judged
by AIM to be undervalued relative to the current or projected earnings of the
companies issuing the securities, or relative to current market values of assets
owned by the companies issuing the securities or relative to the equity markets
generally. Income is a secondary objective.
AIM serves as the investment advisor to the AIM Fund. AIM was organized in 1976
and, together with its domestic subsidiaries, manages or advises approximately
90 investment company portfolios (including the Portfolios listed above)
encompassing a broad range of investment objectives. AIM is a wholly owned
subsidiary of A I M Management Group Inc. Its principal place of business is 11
Greenway Plaza, Suite 100, Houston, Texas 77046-1173.
II. AMERICAN CENTURY FUNDS
- - AMERICAN CENTURY VP BALANCED -- the investment objective of American Century
VP Balanced is capital growth and current income. It will seek to achieve its
investment objective by maintaining approximately 60% of the assets of American
Century VP Balanced in common stocks that are considered by management to have
better-than-average prospects for appreciation and the remaining assets in bonds
and other fixed income securities.
- - AMERICAN CENTURY VP INTERNATIONAL -- the investment objective of American
Century VP International is Capital Growth. It will seek to achieve its
investment objective by investing primarily in an internationally diversified
portfolio of common stocks that are considered by management to have prospects
for appreciation. The Fund will invest primarily in securities of issuers
located in developed markets.
American Century Investment Management, Inc. serves as the investment manager of
American Century Variable Portfolios, Inc. Its principal place of business is
American Century Investments, 4500 Main Street, Kansas City, Missouri 64111.
III. DREYFUS FUNDS
- - VIF GROWTH AND INCOME PORTFOLIO -- seeks to provide long-term capital growth,
current income and growth of income, consistent with reasonable investment risk.
- - VIF MONEY MARKET PORTFOLIO -- seeks to provide as high a level of current
income as is consistent with the preservation of capital and the maintenance of
liquidity.
- - THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. -- seeks to provide capital
growth. Current income is a secondary goal. Invests principally in common
stocks, or securities convertible into common stock, of companies which, in the
opinion of the Fund's management, not only meet traditional investment
standards, but also show evidence that they conduct their business in a manner
that contributes to the enhancement of the quality of life in America.
- - VIF SMALL COMPANY STOCK PORTFOLIO -- seeks to provide investment results that
are greater than the total return performance of publicly-traded common stocks
in the aggregate, as represented by the Russell 2500-TM- Index. Invests
primarily in a portfolio of equity securities of small- to medium-sized domestic
issuers, while attempting to maintain volatility and diversification similar to
that of the Russell 2500-TM- Index.
- - DREYFUS STOCK INDEX FUND - seeks to provide investment results that correspond
to the price and yield performance of publicly traded common stocks in the
aggregate, as represented by the Standard & Poor's 500 Composite Stock Price
Index.
An investment in the Dreyfus VIF Money Market Portfolio is neither insured nor
guaranteed by the U.S. Government. There can be no assurance that the Money
Market Portfolio will be able to maintain a stable net asset value of $1.00 per
share.
The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166, was formed
in 1947 and serves as the Funds' investment manager. The Dreyfus Corporation is
a wholly owned subsidiary of Mellon Bank, N.A., which is a wholly owned
subsidiary of Mellon Bank Corporation. NCM Capital Management Group, Inc., 105
West Main Street, Durham, North Carolina 27701, serves as sub-investment adviser
to The Dreyfus Socially Responsible Growth Fund, Inc. Mellon Equity Associates,
an affiliate of Dreyfus, located at 500 Grant Street, Pittsburgh, PA 15258,
serves as the index fund manager to Dreyfus Stock Index Fund.
<PAGE>
IV. FIDELITY VIP FUNDS
- - VIP II CONTRAFUND PORTFOLIO -- seeks capital appreciation by investing in
securities of companies whose value Fidelity Management & Research Company
("FMR") believes is not fully recognized by the public.
- - VIP GROWTH PORTFOLIO -- seeks capital appreciation by investing primarily in
common stocks. The fund may also pursue capital appreciation through the
purchase of bonds and preferred stocks.
- - VIP HIGH INCOME PORTFOLIO -- seeks high current income by investing primarily
in all types of income-producing debt securities, preferred stocks, and
convertible securities.
- - VIP EQUITY-INCOME PORTFOLIO -- seeks reasonable income by investing primarily
in income-producing equity securities. When choosing the Portfolio's
investments, Fidelity Management & Research Company also considers the potential
for capital appreciation. The Portfolio seeks to achieve a yield that exceeds
the yield on the securities comprising the S&P 500.
Fidelity Management & Research Company, 82 Devonshire Street, Boston,
Massachusetts, is the Investment Manager of the Funds.
V. MFS FUND
- - MFS EMERGING GROWTH SERIES -- seeks to provide long-term growth of capital.
- - MFS GROWTH WITH INCOME SERIES - seeks to provide reasonable current income and
long-term growth of capital and income.
- - MFS NEW DISCOVERY SERIES - seeks capital appreciation.
MFS manages each Portfolio pursuant to an Investment Advisory Agreement with the
MFS Fund on behalf of each Portfolio. MFS provides the Series with overall
investment advisory and administrative services, as well as general office
facilities. Its principal place of business is 500 Boylston Street, Boston,
Massachusetts 02116.
VI. GOLDMAN SACHS VIT FUND
- - GROWTH AND INCOME FUND - Seeks long-term growth of capital and growth of
income through investments in equity securities that are considered to have
favorable prospects for capital appreciation and/or dividend paying ability.
- - CORE U.S. EQUITY FUND - Seeks long-term growth of capital and dividend income
through a broadly diversified portfolio of large cap and blue chip equity
securities representing all major sectors of the U.S. economy.
- - CORE LARGE CAP GROWTH FUND - Seeks long-term growth of capital through a
broadly diversified portfolio of equity securities of large cap U.S. issuers
that are expected to have better prospects for earnings growth than the growth
rate of the general domestic economy. Dividend income is a secondary
consideration.
- - CORE SMALL CAP EQUITY FUND - Seeks long-term growth of capital through a
broadly diversified portfolio of equity securities of U.S. insurers which are
included in the Russell 2000 Index at the time of investment.
- - CAPITAL GROWTH FUND - Seeks long-term growth of capital through diversified
investments in equity securities of companies that are considered to have
long-term capital appreciation potential.
- - MID CAP EQUITY FUND - Seeks long-term capital appreciation primarily through
investments in equity securities of companies with public stock market
capitalization within the range of the market capitalization of companies
constituting the Russell Mid Cap Index at the time of investment (currently
between $400 million and $16 billion).
- - INTERNATIONAL EQUITY FUND - Seeks long-term capital appreciation through
investments in equity securities of companies that are organized outside the
U.S. or whose securities are principally traded outside the U.S.
- - GLOBAL INCOME FUND - Seeks a high total return, emphasizing current income
and, to a lesser extent, providing opportunities for capital appreciation. The
Fund invests primarily in a portfolio of high quality fixed-income securities of
U.S. and foreign issuers and foreign currencies.
Goldman Sachs Asset Management ("GSAM"), One New York Plaza, New York, New York
10004, a separate operating division of Goldman Sachs, serves as the investment
adviser to the CORE Large Cap Growth, CORE Small Cap Equity, CORE U.S. Equity,
Growth and Income, Capital Growth and Mid Cap Equity Funds. Goldman Sachs Asset
Management International ("GSAMI"), 133 Peterborough Court, London EC4A 2BB,
England, an affiliate of Goldman Sachs, serves as the investment adviser to the
International Equity and Global Income Funds.
VII. MORGAN STANLEY FUND
- - FIXED INCOME - Seeks above-average total return over a market cycle of three
to five years by investing primarily in a diversified portfolio of U.S.
governments and agencies, corporate bonds, MBS's, foreign bonds and other fixed
income securities and derivatives.
- - EQUITY GROWTH - seeks long-term capital appreciation by investing primarily in
equity securities of medium and large capitalization companies that, in MSAM's
judgment, provide above-average potential for capital growth.
- - VALUE - Seeks above-average total return over a market cycle of three to five
years by investing primarily in a diversified portfolio of common stocks and
other equity securities that are deemed by MAS to be relatively undervalued
based on various measures such as price/earnings ratios and price/book ratios.
- - MID CAP VALUE - Seeks above-average total return over a market cycle of three
to five years by investing in common stocks and other equity securities of
issuers with equity capitalizations in the range of the companies represented in
the S&P MidCap 400 Index.
- - U.S. REAL ESTATE - Seeks above-average current income and long-term capital
appreciation by investing primarily in equity securities of U.S. and non-U.S.
companies principally engaged in the U.S. real estate industry, including real
estate investment trusts ("REITs").
- - GLOBAL EQUITY - Seeks long term capital appreciation by investing primarily in
equity securities of issuers throughout the world, including U.S. issuers, using
an approach that is oriented to the selection of individual stocks that MSAM
believes are undervalued.
- - INTERNATIONAL MAGNUM - Seeks long-term capital appreciation by investing
primarily in equity securities of non-U.S. issuers domiciled in EAFE countries.
Morgan Stanley Asset Management Inc. ("MSAM"), serves as the Adviser for the
International Magnum, Global Equity, U.S. Real Estate and Equity Growth
Portfolios. MSAM has its principal offices at 1221 Avenue of the Americas, New
York, New York 10020. Miller Anderson & Sherred, LLP ("MAS") serves as the
Adviser for the Fixed Income, Mid-Cap Value and Value Portfolios. MAS has its
principal offices at One Tower Bridge, West Conshohocken, Pennsylvania 19428.
VIII. NEUBERGER & BERMAN AMT
- - PARTNERS - the Portfolio invests principally in common stocks of medium to
large capitalization established companies, using the value-oriented investment
approach. The Portfolio seeks capital growth through an investment approach that
is designed to increase capital with reasonable risk.
- - GUARDIAN - the investment objective of the Portfolio is to seek capital
appreciation and, secondarily, current income. Using the value-oriented
investment approach, the Portfolio invests primarily in common stocks of
long-established, high quality companies.
- - MID-CAP GROWTH - the investment objective is to seek capital appreciation. The
Portfolio invests in a diversified portfolio of common stocks believed by
Neuberger & Berman Management Inc. ("NBMI") to have the maximum potential for
long-term above-average capital appreciation.
NBMI, with the assistance of Neuberger & Berman, LLC as sub-adviser, selects
investments for all series. The investments for the Portfolios are managed by
the same portfolio manager(s) who manage one or more other mutual funds that
have similar names, investment objectives and investment styles as the
Portfolios. You should be aware that the Portfolios are likely to differ from
the other mutual funds in size, cash flow pattern and tax matters. Accordingly,
the holdings and performance of the Portfolios can be expected to vary from
those of the other mutual funds. Its principal place of business is 605 Third
Avenue, 2nd Floor, New York, New York 10158-0180.
Shares of the Funds are not deposits or obligations of, or guaranteed or
endorsed by, any bank and the shares are not federally insured by the Federal
Deposit Insurance Corporation, the Federal Reserve Board or any other agency.
All dividends and capital gains distributions from the Portfolios are
automatically reinvested in shares of the distributing Portfolio at their net
asset value.
There is no assurance that the Portfolios will attain their respective stated
objectives. Additional information concerning the investment objectives and
policies of the Portfolios can be found in the current prospectuses for the
Funds accompanying this prospectus.
You will find more complete information about the Portfolios, including the
risks associated with each Portfolio, in the accompanying prospectuses. You
should read the prospectuses for the Portfolios in conjunction with this
prospectus.
THE FUND PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE ANY DECISION IS MADE
CONCERNING THE ALLOCATION OF PURCHASE PAYMENTS TO A PARTICULAR VARIABLE
SUB-ACCOUNT.
THE FIXED ACCOUNT
Purchase payments allocated to the Fixed Account become part of the general
account of the Company, which supports insurance and annuity obligations. The
general account consists of the general assets of the Company other than those
in segregated asset accounts.
Instead of You bearing the investment risk, as is the case for amounts in the
Variable Account or in other segregated asset accounts of the Company, we bear
the investment risk for all amounts in the Fixed Account. We have sole
discretion to invest the assets of the Fixed, subject to applicable law. We
guarantee that the amounts allocated to the Fixed Account will be credited
interest at a net effective annual interest rate at least equal to the minimum
guaranteed rate found in the Contract.
Any interest held in the Fixed Account does not entitle an Owner to share in the
investment experience of the general account.
Surrenders and withdrawals from the Fixed Account may be delayed for up to six
months.
Interests in the Fixed Account are not registered with the Securities and
Exchange Commission ("SEC") and the SEC does not review disclosure related to or
supervise the operations of this account. The Fixed Account options described
below may not be available in all states. Please consult your sales
representative for additional information.
DOLLAR COST AVERAGING FIXED ACCOUNT
Money allocated to the Dollar Cost Averaging Fixed Account earns interest for a
one year period at the current rate in effect at the time of allocation. After
the one year period, a renewal rate will be declared. Subsequent renewal dates
will be every 12 months for each payment. The renewal interest rate will be
guaranteed by us for a full year and will not be less than the minimum
guaranteed rate found in the Contract. We may declare more than one interest
rate for different monies based upon the date of allocation to the Dollar Cost
Averaging Fixed Account. Any interest credited to amounts allocated to the
Dollar Cost Averaging Fixed Account in excess of the guaranteed rate found in
the Contract will be determined at the sole discretion of the Company.
Purchase payments may be allocated to the Dollar Cost Averaging Fixed Account
for the purpose of establishing a Dollar Cost Averaging Program. Each purchase
payment and all its earnings must be transferred out of the Dollar Cost
Averaging Fixed Account via Dollar Cost Averaging within 36 months of the
payment. At the end of 36 months, any remaining payment and associated earnings
will be transferred to the Money Market Sub-account. No transfers are permitted
into the Dollar Cost Averaging Fixed Account.
SHORT TERM DOLLAR COST AVERAGING FIXED ACCOUNT
Purchase payments allocated to the Short Term Dollar Cost Averaging Fixed
Account will earn interest at the annual rate in effect at the time of
allocation to the Short Term Dollar Cost Averaging Fixed Account. Each purchase
payment and associated earnings in the Short Term Dollar Cost Averaging Fixed
Account must be transferred to one or more Sub-accounts of the Variable Account
in equal monthly installments within the selected transfer period. We will offer
at our discretion a transfer period no less than 3 months or more than 12
months. If you discontinue the Dollar Cost Averaging Program before the end of
the transfer period, the remaining balance in the Short Term Dollar Cost
Averaging Fixed Account will be transferred to the Money Market Sub-account
unless you request a different Investment Alternative. No transfers are
permitted into the Short Term Dollar Cost Averaging Fixed Account.
GUARANTEED MATURITY FIXED ACCOUNT
Purchase payments and transfers allocated to one or more of the Sub-accounts of
the Guaranteed Maturity Fixed Account become part of the general account of the
Company. Each Sub-account offers a separate interest rate Guarantee Period.
Guarantee Periods will be offered at the Company's discretion and may range from
one to ten years. Presently, the Company offers Guarantee Periods of one, three,
five, seven and ten years. The Owner must select the Sub-account(s) to which to
allocate each purchase payment and transfer. No less than $50 may be allocated
to any one Sub-account. The Company reserves the right to limit the number of
additional purchase payments.
Interest is credited daily to each Sub-account at a rate which compounds to the
effective annual interest rate declared for each Sub-account's Guarantee Period
that has been selected.
<PAGE>
The following example illustrates how the Sub-account value for a Sub-account of
the Guaranteed Maturity Fixed Account would grow given an assumed purchase
payment, Guarantee Period, and effective annual interest rate:
EXAMPLE OF INTEREST CREDITING DURING THE GUARANTEE PERIOD:
<TABLE>
<CAPTION>
Purchase Payment:. $10,000.00
Guarantee Period:. 5 years
Effective Annual Rate: 4.50%
END OF CONTRACT YEAR:
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Beginning Sub-Account Value $10,000.00
X (1 + Effective Annual Rate) 1.045
$10,450.00
Sub-Account Value at end of Contract $10,450.00
year 1 X (1 + Effective Annual Rate) 1.045
$10,920.25
Sub-Account Value at end of Contract $10,920.25
year 2 X (1 + Effective Annual Rate) 1.045
$11,411.66
Sub-Account Value at end of Contract $11,411.66
year 3 X (1 + Effective Annual Rate) 1.045
$11,925.19
Sub-Account Value at end of Contract $11,925.19
year 4 X (1 + Effective Annual Rate) 1.045
Sub-Account Value at end of Guarantee
Period: $12,461.82
TOTAL INTEREST CREDITED IN GUARANTEE PERIOD: $2,461.82 ($12,461.82 - 10,000.00)
</TABLE>
NOTE: The above illustration assumes no withdrawals of any amount during the
entire five year period. A withdrawal charge and a Market Value Adjustment may
apply to any amount withdrawn in excess of 15% of the amount of purchase
payments. The hypothetical interest rate is for illustrative purposes only and
is not intended to predict future interest rates to be declared under the
Contract.
The Company has no specific formula for determining the rate of interest that it
will declare initially or in the future. Such interest rates will be reflective
of investment returns available at the time of the determination. In addition,
the management of the Company may also consider various other factors in
determining interest rates, including regulatory and tax requirements, sales
commissions and administrative expenses borne by the Company, general economic
trends, and competitive factors. For current interest rate information, please
contact your sales representative or the Company's Customer Support Unit at
1(800)526-4827.
THE MANAGEMENT OF THE COMPANY WILL MAKE THE FINAL DETERMINATION AS TO THE
INTEREST RATES TO BE DECLARED. THE COMPANY CAN NEITHER PREDICT NOR GUARANTEE
FUTURE INTEREST RATES TO BE DECLARED.
At the end of a Guarantee Period, a notice will be mailed to the Owner outlining
the options available at the end of a Guarantee Period. During the 30 day period
after a Guarantee Period expires the Owner may:
- - take no action and the Company will automatically renew the Sub-account
value to a Guarantee Period of the same duration to be established as of
the day the previous Guarantee Period expired; or
- - notify the Company to apply the Sub-account value to a new Guarantee Period
or periods to be established as of the day the previous Guarantee Period
expired; or
- - notify the Company to apply the Sub-account value to any Sub-account of the
Variable Account on the day we receive the notification; or
- - receive a portion of the Sub-account value or the entire Sub-account value
through a partial or full withdrawal that is not subject to a Market Value
Adjustment. In this case, the amount withdrawn will be deemed to have been
renewed at the shortest Guarantee Period then being offered with current
interest credited from the date the Guarantee Period expired.
The Automatic Laddering Program allows the Owner to choose, in advance, one
renewal Guarantee Period for all renewing Sub-accounts. The Owner can select the
Automatic Laddering Program at any time during the accumulation phase, including
on the issue date. The Automatic Laddering Program will continue until the Owner
gives written notice to the Company asking to discontinue the program. The
Company reserves the right to discontinue this Program. For additional
information on the Automatic Laddering Program, please call the Company's
Customer Support Unit at 1(800)526-4827.
WITHDRAWALS
Withdrawals in excess of the free withdrawal amount and transfers paid from a
Sub-account of the Guaranteed Maturity Fixed Account other than during the 30
day period after a Guarantee Period expires are subject to a Market Value
Adjustment. See "Market Value Adjustment" section below.
The amount received by the Owner under a withdrawal request equals the amount
requested, adjusted by any Market Value Adjustment, less any applicable
withdrawal charge (based upon the amount requested prior to any Market Value
Adjustment), less premium taxes and withholding (if applicable), less any
applicable transfer fee.
MARKET VALUE ADJUSTMENT
The Market Value Adjustment reflects the relationship between (1) the Treasury
Rate for the original Guarantee Period at the time the Sub-account was
established, and (2) the Treasury Rate for the original Guarantee Period at the
time of the request for withdrawal or transfer, or at the time money is applied
to an Income Plan. As such, the Owner bears some investment risk under the
Contract. Treasury Rate means the U.S. Treasury Note Constant Maturity yield for
the preceding week as reported in Federal Reserve Bulletin Release H.15.
It is possible, therefore, that should investment yields increase significantly
from the time the purchase payment was made, the Market Value Adjustment,
withdrawal charge, premium taxes and withholding (if applicable), would reduce
the amount received by the Owner upon full withdrawal of the Contract Value to
an amount that is less than the purchase payment plus interest at the minimum
guaranteed interest rate under the Contract.
Generally, if the Treasury Rate at the time the Sub-account was established is
higher than the applicable current Treasury Rate, then the Market Value
Adjustment will result in a higher amount payable to the Owner or transferred.
Similarly, if the Treasury Rate at the time the Sub-account was established is
lower than the applicable current Treasury Rate (interest rate for a period
equal to the original Guarantee Period), then the Market Value Adjustment will
result in a lower amount payable to the Owner or transferred.
For example, assume the Owner purchases a Contract and selects an initial
Guarantee Period of five years and the five year Treasury Rate for that duration
is 4.50%. Assume that at the end of 3 years, the Owner makes a partial
withdrawal. If, at that later time, the current five year Treasury Rate is
4.20%, then the Market Value Adjustment will be positive, which will result in
an increase in the amount payable to the Owner. Similarly, if the current five
year Treasury Rate is 4.80%, then the Market Value Adjustment will be negative,
which will result in a decrease in the amount payable to the Owner.
The formula for calculating the Market Value Adjustment is set forth in Appendix
A to this prospectus, which also contains additional illustrations of the
application of the Market Value Adjustment.
PURCHASE OF THE CONTRACTS
PURCHASE PAYMENT LIMITS
Your first purchase payment must be at least $3,000 unless the Contract is a
Qualified Contract, in which case the first purchase payment must be at least
$2,000. All subsequent purchase payments must be $50 or more and may be made at
any time prior to the Payout Start Date. We may limit your ability to make
subsequent purchase payments in order to comply with the laws of the state where
the Contract is delivered. Subsequent purchase payments may also be made from
your bank account through Automatic Additions. Please consult with your sales
representative for detailed information about Automatic Additions. The minimum
purchase payment for allocation to the Dollar Cost Averaging Fixed Account or
any Sub-account of the Guaranteed Maturity Fixed Account is $50.
We reserve the right to limit the maximum amount of purchase payments we will
accept.
FREE-LOOK PERIOD
You may cancel the Contract any time within 20 days after receipt of the
Contract, or longer if required by state law, and receive a full refund of
purchase payments allocated to the Fixed Account Options. Purchase payments
allocated to the Variable Account will be returned after an adjustment to
reflect investment gain or loss that occurred from the date of allocation
through the date of cancellation unless a refund of purchase payments is
required by state or federal law.
<PAGE>
CREDITING OF PURCHASE PAYMENTS
The initial purchase payment accompanied by a duly completed application will be
credited to the Contract within two business days of receipt by us at our home
office. If an application is not duly completed, we will credit the purchase
payments to the Contract within five business days or return it at that time
unless You specifically consent to us holding the purchase payment until the
application is complete. We reserve the right to reject any application.
Subsequent purchase payments will be credited to the Contract at the close of
the Valuation Period in which the purchase payment is received by the Company at
its home office.
ALLOCATION OF PURCHASE PAYMENTS
On the application, You instruct us how to allocate the purchase payment among
the Investment Alternatives. Purchase payments may be allocated in whole
percents, from 0% to 100% (total allocation equals 100% of the purchase
payment), or in whole dollar amounts (total allocation equals the purchase
payment), to any Investment Alternative. Unless You notify us in writing
otherwise, subsequent purchase payments are allocated according to the
allocation for the previous purchase payment. Any change in allocation
instructions will be effective at the time we receive the notice in good order.
ACCUMULATION UNITS
Each purchase payment allocated to the Variable Account will be credited to the
Contract as Accumulation Units. For example, if a $10,000 purchase payment is
credited to the Contract when the Accumulation Unit value equals $10, then 1,000
Accumulation Units would be credited to the Contract. The Variable Account, in
turn, purchases shares of the corresponding Portfolio.
ACCUMULATION UNIT VALUE
The Accumulation Units of the various Sub-accounts of the Variable Account are
valued separately. The value of Accumulation Units will change each Valuation
Period according to the investment performance of the shares purchased by each
Variable Sub-account and the deduction of certain expenses and charges.
The value of an Accumulation Unit in a Variable Sub-account for any Valuation
Period equals the value of the Accumulation Unit as of the immediately preceding
Valuation Period, multiplied by the Net Investment Factor for that Sub-account
for the current Valuation Period. The Net Investment Factor for a Valuation
Period is a number representing the change, since the last Valuation Date in the
value of Sub-account assets per Accumulation Unit due to investment income,
realized or unrealized capital gain or loss, deductions for taxes, if any, and
deductions for the mortality and expense risk charge and administrative expense
charge.
TRANSFERS AMONG INVESTMENT ALTERNATIVES
Amounts may be transferred among Investment Alternatives, subject to the
following restrictions.
The Company reserves the right to assess a $10 charge on each transfer in excess
of 12 per Contract Year. The Company is presently waiving this charge. Transfers
to or from more than one Investment Alternative on the same day are treated as
one transfer.
Transfers among Investment Alternatives before the Payout Start Date may be made
at any time. After the Payout Start Date, if the Income Plan depends on any
person's life, transfers among Sub-accounts of the Variable Account or from a
variable amount income payment to a fixed amount income payment may be made only
once every six months and may not be made during the first six months following
the Payout Start Date. After the Payout Start Date, if the Income Plan does not
depend on any person's life, transfers among Sub-accounts of the Variable
Account or from a variable amount income payment to a fixed amount income
payment may be made immediately. After the Payout Start Date, transfers from a
fixed amount income payment are not allowed.
Telephone transfer requests will be accepted by the Company if received at
1(800)526-4827 by 3:00 p.m., Central Time. Telephone transfer requests received
at any other telephone number or after 3:00 p.m., Central Time will not be
accepted by the Company. Telephone transfer requests received before 3:00 p.m.,
Central Time are effected at the Sub-account value next computed. In the event
that the New York Stock Exchange ("NYSE") closes early, i.e., before 3:00 p.m.
Central Time, or in the event that the NYSE closes early for a period of time
but then reopens for trading on the same day, telephone transfer requests will
be processed by the Company as of the close of the NYSE on that particular day.
Telephone requests received at any telephone number other than the number that
appears in this paragraph or received after the close of trading on the NYSE
will not be accepted by the Company.
The Company utilizes procedures which the Company believes will provide
reasonable assurance that telephone authorized transfers are genuine. Such
procedures include taping of telephone conversations with persons purporting to
authorize such transfers and requesting identifying information from such
persons. Accordingly, the Company disclaims any liability for losses resulting
from such transfers by reason of their allegedly not having been properly
authorized. However, if the Company does not take reasonable steps to help
ensure that such authorizations are valid, the Company may be liable for such
losses.
The minimum amount that may be transferred into a Sub-account of the Guaranteed
Maturity Fixed Account is $50. No transfers are allowed into the Dollar Cost
Averaging Fixed Account or the Short Term Dollar Cost Averaging Fixed Account.
Any transfer from a Sub-account of the Guaranteed Maturity Fixed Account at a
time other than during the 30 day period after a Guarantee Period expires will
be subject to a Market Value Adjustment.
The Company reserves the right to waive transfer restrictions.
DOLLAR COST AVERAGING
Transfers may be made automatically through Dollar Cost Averaging prior to the
Payout Start Date. Dollar Cost Averaging permits the Owner to transfer a
specified amount every month from the Short Term Dollar Cost Averaging Fixed
Account, the Dollar Cost Averaging Fixed Account or the Money Market
Sub-account, to any Sub-account of the Variable Account. Dollar Cost Averaging
cannot be used to transfer amounts to the Guaranteed Maturity Fixed Account.
There are no additional charges imposed upon participants in the Dollar Cost
Averaging program. In addition, such transfers are not assessed a $10 charge and
are not counted towards the 12 free transfers per Contract Year.
The theory of Dollar Cost Averaging is that, if purchases of equal dollar
amounts are made at fluctuating prices, the aggregate average cost per unit will
be less than the average of the unit prices on the same purchase dates. However,
participation in the Dollar Cost Averaging program does not assure You of a
greater profit from your purchases under the program; nor will it prevent or
alleviate losses in a declining market.
AUTOMATIC PORTFOLIO REBALANCING
Transfers may be made automatically through Automatic Portfolio Rebalancing
prior to the Payout Start Date. By electing Automatic Portfolio Rebalancing, all
of the money allocated to Sub-accounts of the Variable Account will be
rebalanced to the desired allocation on a quarterly basis, determined from the
first date that You decide to rebalance. Each quarter, money will be transferred
among Sub-accounts of the Variable Account to achieve the desired allocation.
The desired allocation will be the allocation initially selected, unless
subsequently changed. You may change the allocation at any time by giving us
written notice. The new allocation will be effective with the first rebalancing
that occurs after we receive the written request. We are not responsible for
rebalancing that occurs prior to receipt of the written request.
Transfers made through Automatic Portfolio Rebalancing are not assessed a $10
charge and are not counted towards the 12 free transfers per Contract Year.
Any money allocated to the Fixed Account Options will not be included in the
Automatic Portfolio Rebalancing.
BENEFITS UNDER THE CONTRACT
WITHDRAWALS
You may withdraw all or part of the Contract Value at any time prior to the
earlier of the death of the Owner (or the Annuitant if the Owner is not a
natural person) or the Payout Start Date. The amount payable for withdrawal is
the Contract Value next computed after the Company receives the request for a
withdrawal at its home office, adjusted by any applicable Market Value
Adjustment, less any applicable withdrawal charges, contract maintenance
charges, income tax withholding, penalty tax and premium taxes. Withdrawals from
the Variable Account will be paid within seven days of receipt of the request,
subject to postponement in certain circumstances. Surrenders and withdrawals
from the Fixed Account may be delayed for up to six months. See "Delay of
Payments," page __.
Money can be withdrawn from the Variable Account or the Fixed Account. To
complete the partial withdrawal from the Variable Account, the Company will
redeem Accumulation Units in an amount equal to the withdrawal and any
applicable withdrawal charge and premium taxes. The Owner must name the
Investment Alternative from which the withdrawal is to be made. If none is
named, then the withdrawal request is incomplete and cannot be honored.
The minimum partial withdrawal is $50. If the Contract Value after a partial
withdrawal would be less than $2,000, then the Company will treat the request as
one for termination of the Contract and the entire Contract Value, adjusted by
any Market Value Adjustment, less any charges and premium taxes, will be paid
out.
Partial withdrawals may also be taken automatically through Systematic
Withdrawals on a monthly, quarterly, semi-annual or annual basis. Systematic
Withdrawals of $50 or more may be requested at any time prior to the Payout
Start Date. At the Company's discretion, Systematic Withdrawals may not be
offered in conjunction with Dollar Cost Averaging or Automatic Portfolio
Rebalancing.
Partial and full withdrawals may be subject to income tax and a 10% tax penalty,
which is explained in "Federal Tax Matters," on page __.
After the Payout Start Date, withdrawals are only permitted when payments from
the Variable Account are being made that do not involve life contingencies. In
that case, You may terminate the Variable Account portion of the income payments
at any time and receive a lump sum equal to the commuted balance of the
remaining variable payments due, less any applicable withdrawal charge.
DEATH BENEFITS
DISTRIBUTION UPON DEATH PAYMENT PROVISIONS
A distribution upon death may be paid to the Owner determined immediately after
the death if, prior to the Payout Start Date:
- - any Owner dies; or
- - the Annuitant dies and the Owner is not a natural person.
If the Owner eligible to receive a distribution upon death is not a natural
person, then the Owner may elect to receive the distribution upon death in one
or more distributions, as long as all distributions are completed within 5 years
of death. Otherwise, if the Owner is a natural person, the Owner may elect to
receive a distribution upon death in one or more distributions or periodic
payments through an Income Plan.
A death benefit will be paid: 1) if the Owner elects to receive the death
benefit in a single payment distributed within 180 days of the date of death;
and 2) if the death benefit is paid as of the day the value of the death benefit
is determined. Otherwise, the settlement value will be paid. The Company is
currently waiving the 180 day limit. The Company reserves the right to enforce
the limitation in the future. The settlement value is the same amount that would
be paid in the event of withdrawal of the Contract Value. The Company will
calculate the Settlement Value at the end of the Valuation Period coinciding
with the requested distribution date for payment or on the mandatory
distribution date of 5 years after the date of death. In any event, the entire
distribution upon death must be distributed within five years after the date of
death unless a surviving spouse continues the Contract or an Income Plan is
selected in accordance with the following rules:
Payments from the Income Plan must begin within one year of the date of death
and must be payable throughout:
- - the life of the Owner; or
- - a period not to exceed the life expectancy of the Owner; or
- - the life of the Owner with payments guaranteed for a period not to exceed
the life expectancy of the Owner.
If the surviving spouse of the deceased Owner is the new Owner, then the spouse
may elect one of the options listed above or may continue the Contract in the
accumulation phase as if the death had not occurred. The Company will only
permit the Contract to be continued once. If the Contract is continued in the
accumulation phase, the surviving spouse may make a single withdrawal of any
amount within one year of the date of death without incurring a withdrawal
charge. A Market Value Adjustment will not apply. If the surviving spouse is
under age 59 1/2, a 10% penalty tax may apply to the withdrawal.
DEATH BENEFIT AMOUNT
Prior to the Payout Start Date, the standard Death Benefit is equal to the
greatest of:
(a) the Contract Value on the date the Company determines the value of the
death benefit; or
(b) the settlement value on the date the Company determines the value of
the death benefit; or
(c) the Contract Value on each Death Benefit Anniversary prior to the date
the Company determines the death benefit adjusted by any purchase
payments and any withdrawals* made between such Death Benefit
Anniversary and the date the Company determines the death benefit. A
Death Benefit Anniversary is every seventh Contract Anniversary
beginning with the issue date. For example, the issue date, 7th and
14th Contract Anniversaries are the first three Death Benefit
Anniversaries.
The value of the death benefit will be determined at the end of the Valuation
Period during which the Company receives a complete request for payment of the
death benefit, which includes due proof of death. The Company will not settle
any death claim until it receives due proof of death.
For Contracts with the optional Enhanced Death Benefit rider, the death benefit
will be the greater of Standard Death Benefit described above, or the Enhanced
Death Benefit described below:
Prior to the Payout Start Date, the Enhanced Death Benefit is equal to the
greater of the Enhanced Death Benefit A or Enhanced Death Benefit B.
Enhanced Death Benefit A
At issue, Enhanced Death Benefit A is equal to the initial purchase payment.
After issue, the Enhanced Death Benefit A is recalculated on each Contract
Anniversary, or when a purchase payment or withdrawal is made, as follows:
- On each Contract anniversary, the Enhanced Death Benefit A is equal to
the greater of the Contract Value on that date or the most recently
calculated Enhanced Death Benefit A.
- For purchase payments, the Enhanced Death Benefit A is equal to the
most recently calculated Enhanced Death Benefit A plus the purchase
payment.
- For withdrawals, the Enhanced Death Benefit A is equal to the most
recently calculated Enhanced Death Benefit A reduced by the withdrawal
adjustment, as defined below.
In the absence of any withdrawals or purchase payments, the Enhanced Death
Benefit A will be the greatest of all Contract anniversary Contract Values on or
prior to the date the Company calculates the Death Benefit.
The Enhanced Death Benefit A will be recalculated for purchase payments,
withdrawals, and, on Contract Anniversaries until the oldest Owner or, if the
Owner is not a natural person, the Annuitant, attains age 85. After age 85, the
Enhanced Death Benefit A will be recalculated only for purchase payments and
withdrawals.
Enhanced Death Benefit B
The Enhanced Death Benefit B is equal to total purchase payments made reduced by
a withdrawal adjustment. Each purchase payment and each withdrawal adjustment
will accumulate daily at a rate equivalent to 5% per year until the earlier of
the date the Company determines the Death Benefit or the first day of the month
following the oldest Owner's or, if the Owner is not a living individual, the
Annuitant's 85th birthday.
The Enhanced Death Benefit will never be greater than the maximum death benefit
allowed by any nonforfeiture laws which govern the Contract.
* The adjustment for withdrawals is equal to the Contract Value on a Death
Benefit Anniversary or Contract Anniversary multiplied by the ratio of the
withdrawal amount to the Contract Value immediately prior to the withdrawal.
INCOME PAYMENTS
PAYOUT START DATE FOR INCOME PAYMENTS
The Payout Start Date is the day that money is applied to an Income Plan. You
may change the Payout Start Date at any time by notifying the Company in writing
of the change at least 30 days before the scheduled Payout Start Date. The
Payout Start Date must be (a) at least one month after the issue date; and (b)
no later than the day the Annuitant reaches age 90, or the 10th anniversary of
the issue date, if later.
VARIABLE ACCOUNT INCOME PAYMENTS
The amount of Variable Account income payments depends upon the investment
experience of the Sub-accounts selected by the Owner and any premium taxes, the
age and sex of the Annuitant, and the Income Plan chosen. The Company guarantees
that the amount of the income payment will not be affected by (1) actual
mortality experience and (2) the amount of the Company's administration
expenses.
The Contracts offered by this prospectus contain income payment tables that
provide for different benefit payments to men and women of the same age (except
in states which require unisex annuity tables). Nevertheless, in accordance with
the U.S. Supreme Court's decision in ARIZONA GOVERNING COMMITTEE V. NORRIS, in
certain employment-related situations, annuity tables that do not vary on the
basis of sex will be used.
The total income payments received may be more or less than the total purchase
payments made because (a) Variable Account income payments vary with the
investment results of the underlying Portfolios, and (b) Annuitants may not live
as long as, or may live longer than, expected.
The Income Plan option selected will affect the dollar amount of each income
payment. For example, if an Income Plan for a Life Income is chosen, the income
payments will be greater than income payments under an Income Plan for a Life
Income with Guaranteed Payments.
If the actual net investment experience of the Variable Account is less than the
assumed investment rate, then the dollar amount of the income payments will
decrease. The dollar amount of the income payments will stay level if the net
investment experience equals the assumed investment rate and the dollar amount
of the income payments will increase if the net investment experience exceeds
the assumed investment rate. For purposes of the Variable Account income
payments, the assumed investment rate is 3 percent. For more detailed
information as to how Variable Account income payments are determined, see the
Statement of Additional Information.
FIXED AMOUNT INCOME PAYMENTS
Income payment amounts derived from any monies allocated to any Fixed Account
Option are guaranteed for the duration of the Income Plan. The income payment
based upon any fixed amount income payment is calculated by applying the portion
of the Contract Value in any Fixed Account Option on the Payout Start Date,
adjusted by any Market Value Adjustment and less any applicable premium tax, to
the greater of the appropriate value from the income payment table selected or
such other value as we are offering at that time.
INCOME PLANS
The Income Plans include:
INCOME PLAN 1 -- LIFE INCOME WITH GUARANTEED PAYMENTS
The Company will make payments for as long as the Annuitant lives. If the
Annuitant dies before the selected number of guaranteed payments have
been made, the Company will continue to pay the remainder of the
guaranteed payments.
<PAGE>
INCOME PLAN 2 -- JOINT AND SURVIVOR LIFE INCOME WITH GUARANTEED PAYMENTS
The Company will make payments for as long as either the Annuitant or
Joint Annuitant, named at the time of Income Plan selection, is living.
If both the Annuitant and the Joint Annuitant die before the selected
number of guaranteed payments have been made, the Company will continue
to pay the remainder of the guaranteed payments.
INCOME PLAN 3 -- GUARANTEED NUMBER OF PAYMENTS
The Company will make payments for a specified number of months beginning
on the Payout Start Date. These payments do not depend on the Annuitant's
life. The number of months guaranteed may be from 60 to 360. The
mortality and expense risk charge will be deducted from Variable Account
assets supporting these payments even though the Company may not bear any
mortality risk. Income payments for less than 120 months may be subject
to a withdrawal charge.
The Owner may change the Income Plan until 30 days before the Payout Start Date.
If an Income Plan is chosen which depends on the Annuitant or Joint Annuitant's
life, proof of age will be required before income payments begin. Applicable
premium taxes will be assessed.
In the event that an Income Plan is not selected, the Company will make income
payments in accordance with Income Plan 1 with Guaranteed Payments for 120
Months. At the Company's discretion, other Income Plans may be available upon
request. The Company currently uses sex-distinct annuity tables. However, if
legislation is passed by Congress or the states, the Company reserves the right
to use income payment tables which do not distinguish on the basis of sex.
Special rules and limitations may apply to certain qualified contracts.
If the Contract Value to be applied to an Income Plan is less than $2,000, or if
the monthly payments determined under the Income Plan are less than $20, the
Company may pay the Contract Value adjusted by any Market Value Adjustment and
less any applicable taxes, in a lump sum or change the payment frequency to an
interval which results in income payments of at least $20.
ENHANCED INCOME BENEFIT
You may choose an Enhanced Income Benefit in conjunction with the Enhanced Death
Benefit Rider. To exercise your Enhanced Income Benefit, you must annuitize your
Contract. The Enhanced Income Benefit defines a minimum amount applied to the
payout phase. This minimum amount is equal to what the value of the Enhanced
Death Benefit would be on the Payout Start Date. The Enhanced Income Benefit
will apply if the Owner elects a Payout Start Date that: is on or after the
tenth Contract Anniversary; and is prior to the Annuitant's age 90. During the
Payout Phase of the Contract, the Contract Value or the Enhanced Income Benefit
will apply, whichever is greater. No Market Value Adjustment will be applied to
the Enhanced Income Benefit amount. The Enhanced Income Benefit will only apply
if the income plan selected provides payments guaranteed for either single or
joint life with a period certain of at least: (a) 10 years, if the youngest
Annuitant's age is 80 or less on the date the amount is applied; or (b) 5 years,
if the youngest Annuitant's age is greater than 80 on the date the amount is
applied. If, however, the amount applied to the income plan selected is the
Contract Value and not the Enhanced Income Benefit, then you may select any
income plan then offered by the Company.
CHARGES AND OTHER DEDUCTIONS
DEDUCTIONS FROM PURCHASE PAYMENTS
No deductions are made from purchase payments. Therefore, the full amount of
every purchase payment is invested in the Investment Alternative(s).
WITHDRAWAL CHARGE (CONTINGENT DEFERRED SALES CHARGE)
You may withdraw all or part of the Contract Value at any time prior to the
earlier of the death of the Owner (or the Annuitant if the Owner is not a
natural person) or the Payout Start Date.
There are no withdrawal charges on amounts withdrawn up to 15% of the amount of
purchase payments each Contract Year. Amounts withdrawn in excess of this may be
subject to a withdrawal charge. Amounts not subject to a withdrawal charge and
not withdrawn in a Contract Year are not carried over to later Contract Years.
Withdrawal charges, if applicable, will be deducted from the amount paid.
For purposes of calculating the amount of the withdrawal charge, withdrawals are
assumed to come from purchase payments first, beginning with the oldest payment.
Withdrawals made after all purchase payments have been withdrawn, will not be
subject to a withdrawal charge. For partial withdrawals, the Contract Value will
be adjusted to reflect the amount of payment requested by the Owner, any
withdrawal charge, any applicable taxes and any Market Value Adjustment.
Withdrawal charges may also be applicable during the annuity payout period.
Withdrawals in excess of the free withdrawal amount will be subject to a
withdrawal charge as set forth below:
APPLICABLE
COMPLETE YEARS SINCE WITHDRAWAL
PURCHASE PAYMENT WAS MADE CHARGE PERCENTAGE
0 YEARS 6%
1 YEAR 6%
2 YEARS 5%
3 YEARS 5%
4 YEARS 4%
5 YEARS 3%
6 YEARS OR MORE 0%
Withdrawal charges will be used to pay sales commissions and other promotional
or distribution expenses associated with the marketing of the Contracts. In
addition, federal and state income tax may be withheld from withdrawal amounts.
Certain terminations may also be subject to a federal tax penalty. See "Federal
Tax Matters," page __.
The Company will waive any withdrawal charge prior to the Payout Start Date if:
1) at least 30 days after the Contract Date any Owner (or Annuitant if the Owner
is not a natural person) is first confined to a long term care facility or
hospital for at least 90 consecutive days, confinement is prescribed by a
physician and is medically necessary, and the request for a withdrawal and
adequate written proof of confinement are received by us no later than 90 days
after discharge; or
2) at least 30 days after the Contract Date any Owner (or Annuitant if the Owner
is not a natural person) is first diagnosed with a terminal illness; or
3) the Owner, or, if the Owner is not a living individual, the Annuitant,
becomes unemployed at least one year after the Contract Date; the Owner, or, if
the Owner is not a living individual, the Annuitant, receives at least 30
consecutive days of Unemployment Compensation as defined in the Contract, for
that unemployment; and the Owner, of if the Owner is not a living individual,
the Annuitant, request the waiver within 180 days of the Owner's, or, if the
Owner is not a living individual, the Annuitant's, initial receipt of
Unemployment Compensation, as defined in the Contract.
The laws of your state may limit the availability of these waivers and may also
change certain terms and/or benefits available under the waivers. Such
withdrawals will not be subject to a Market Value Adjustment.
The withdrawal charge will also be waived on withdrawals taken to satisfy IRS
required minimum distribution rules. This waiver is permitted only for
withdrawals which satisfy distributions resulting from this Contract.
CONTRACT MAINTENANCE CHARGE
A contract maintenance charge is deducted annually from the Contract Value to
reimburse the Company for its costs in maintaining each Contract and the
Variable Account. The Company guarantees that the amount of this charge will not
exceed $35 per Contract Year over the life of the Contract. Prior to the Payout
Start Date, this charge will be waived if the total purchase payments are
$50,000 or more on a Contract Anniversary or if all money is allocated to the
Fixed Account on the Contract Anniversary. After the Payout Start Date, this
charge will be waived if total purchase payments are $50,000 or more or if all
payments are Fixed Amount Income Payments as of the Payout Start Date.
Maintenance costs include but are not limited to expenses incurred in billing
and collecting purchase payments; keeping records; processing death claims, cash
withdrawals, and policy changes; proxy statements; calculating Accumulation Unit
and Annuity Unit values; and issuing reports to Owners and regulatory agencies.
The contract maintenance charge will be deducted from the Contract Value
invested in each Sub-account of the Variable Account on each contract
anniversary prior to the Payout Start Date. The contract maintenance charge will
not be deducted from the Fixed Account Options. The amount deducted for the
contract maintenance charge will be in the same proportion that the Owner's
value in each bears to the Owner's total value in all Sub-accounts of the
Variable Account. After the Payout Start Date, a pro rata share of the annual
contract maintenance charge will be deducted from each income payment. For
example, 1/12 of the $35, or $2.92, will be deducted if there are twelve income
payments during the Contract Year. A pro-rated contract maintenance charge will
be deducted if the Contract is terminated on any date other than a Contract
Anniversary.
ADMINISTRATIVE EXPENSE CHARGE
The Company will deduct an administrative expense charge which is equal, on an
annual basis, to .10% of the daily net assets the Owner has allocated to the
Sub-accounts of the Variable Account. This charge is designed to cover actual
administrative expenses which exceed the revenues from the contract maintenance
charge. There is no necessary relationship between the amount of administrative
charge imposed on a given Contract and the amount of expenses that may be
attributable to that Contract.
MORTALITY AND EXPENSE RISK CHARGE
The Company will deduct a mortality and expense risk charge which is equal, on
an annual basis, to 1.05% of the daily net assets You have allocated to the
Sub-accounts of the Variable Account. For Contracts with the optional Enhanced
Death Benefit Rider, the mortality and expense risk charge will be deducted
daily, at a rate equal on an annual basis to 1.27% of the daily net assets in
the Variable Account. For Contracts with the optional Enhanced Death and Income
Benefit Combination Rider, the mortality and expense risk charge will be
deducted daily, at a rate equal on an annual basis to 1.49% of the daily net
assets in the Variable Account. The Company guarantees that the percentage for
this charge will not increase over the life of the Contract.
The mortality risk arises from the Company's guarantee to cover all death
benefits and to make income payments in accordance with the Income Plan selected
and the Income Payment Tables in Your Contract.
The expense risk arises from the possibility that the contract maintenance and
administrative expense charge, both of which are guaranteed not to increase,
will be insufficient to cover actual administrative expenses.
The Company expects to make a profit from this charge, which it may use to pay
for, among other things, expenses associated with the distribution of the
Contracts.
PREMIUM TAXES
The Company will deduct applicable state premium taxes or other similar
policyholder taxes relative to the Contract (collectively referred to as
"premium taxes") either at the Payout Start Date, or when a total withdrawal
occurs. Current premium tax rates range from 0 to 3.5%. The Company reserves the
right to deduct premium taxes from the purchase payments.
At the Payout Start Date, the charge for premium taxes will be deducted from
each Investment Alternative in the proportion that the Owner's value in the
Investment Alternative bears to the total Contract Value.
TRANSFER CHARGES
The Company reserves the right to assess a $10 charge on each transfer in excess
of 12 per Contract Year, excluding transfers through Dollar Cost Averaging and
Automatic Portfolio Rebalancing. The Company is presently waiving this charge.
FUND EXPENSES
Complete descriptions of the expenses and deductions from the Portfolios are
found in the prospectuses for the Funds, which accompany this prospectus.
GENERAL MATTERS
OWNER
The Owner has the sole right to exercise all rights and privileges under the
Contract, except as otherwise provided in the Contract. The Contract cannot be
jointly owned by both a non-natural person and a natural person.
BENEFICIARY
Subject to the terms of any irrevocable Beneficiary designation, the Owner may
change the Beneficiary at any time by notifying the Company in writing. Any
change will be effective at the time it is signed by the Owner, whether or not
the Annuitant is living when the change is received by the Company. The Company
will not, however, be liable as to any payment or settlement made prior to
receiving the written notice.
Unless otherwise provided in the Beneficiary designation, if a Beneficiary
predeceases the Owner and there are no other surviving beneficiaries or if the
Owner does not name a Beneficiary, the new Beneficiary will be: the Owner's
spouse if living; otherwise, the Owner's children, equally, if living;
otherwise, the Owner's estate. Multiple Beneficiaries may be named. Unless
otherwise provided in the Beneficiary designation, if more than one Beneficiary
survives the Owner, the surviving Beneficiaries will share equally in any
amounts due.
ASSIGNMENTS
The Company will not honor an assignment of an interest in a Contract as
collateral or security for a loan. Otherwise, the Owner may assign benefits
under the Contract prior to the Payout Start Date. No Beneficiary may assign
benefits under the Contract until they are due. No assignment will bind the
Company unless it is signed by the Owner and filed with the Company. The Company
is not responsible for the validity of an assignment. Federal law prohibits or
restricts the assignment of benefits under many types of retirement plans and
the terms of such plans may themselves contain restrictions on assignments.
DELAY OF PAYMENTS
Payment of any amounts due from the Variable Account under the Contract will
occur within seven days, unless:
1. The New York Stock Exchange is closed for other than usual weekends or
holidays, or trading on the Exchange is otherwise restricted;
2. An emergency exists as defined by the Securities and Exchange Commission; or
3. The Securities and Exchange Commission permits delay for the protection of
the Owners.
Payments or transfers from the Fixed Account may be delayed for up to 6 months.
If payment or transfer is delayed for 30 days or more, the Company will pay
interest as required by applicable law.
MODIFICATION
The Company may not modify the Contract without the consent of the Owner except
to make the Contract meet the requirements of the Investment Company Act of
1940, or to make the Contract comply with any changes in the Internal Revenue
Code or to make any changes required by the Code or by any other applicable law.
CUSTOMER INQUIRIES
The Owner or any persons interested in the Contract may make inquiries regarding
the Contract by calling or writing your representative or the Company at:
GLENBROOK LIFE AND ANNUITY COMPANY
POST OFFICE BOX 94042
PALATINE, ILLINOIS 60094-4042
1-(800) 526-4827
FEDERAL TAX MATTERS
INTRODUCTION
THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. THE
COMPANY MAKES NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR
TRANSACTION INVOLVING A CONTRACT. Federal, state, local and other tax
consequences of ownership or receipt of distributions under an annuity contract
depend on the individual circumstances of each person. If You are concerned
about any tax consequences with regard to your individual circumstances, You
should consult a competent tax adviser.
TAXATION OF ANNUITIES IN GENERAL
TAX DEFERRAL
Generally, an annuity contract owner is not taxed on increases in the Contract
Value until a distribution occurs. This rule applies only where (1) the owner is
a "natural person," (see "Non-Natural Owners" below for exception) (2) the
investments of the Variable Account are "adequately diversified" in accordance
with Treasury Department Regulations, and (3) the issuing insurance company,
instead of the annuity owner, is considered the owner for federal income tax
purposes of any separate account assets funding the contract.
<PAGE>
NON-NATURAL OWNERS
As a general rule, annuity contracts owned by non-natural persons such as
corporations, trusts, or other entities are not treated as annuity contracts for
federal income tax purposes and the income on such contracts is taxed as
ordinary income received or accrued by the owner during the taxable year. There
are several exceptions to the general rule for contracts owned by non-natural
persons which are discussed in the Statement of Additional Information.
DIVERSIFICATION REQUIREMENTS
For a Contract to be treated as an annuity for federal income tax purposes, the
investments in the Variable Account must be "adequately diversified" in
accordance with the standards provided in the Treasury regulations. If the
investments in the Variable Account are not adequately diversified, then the
Contract will not be treated as an annuity contract for federal income tax
purposes and the Owner will be taxed on the excess of the Contract Value over
the investment in the Contract. Although the Company does not have control over
the Portfolios or their investments, the Company expects the Portfolios to meet
the diversification requirements.
OWNERSHIP TREATMENT
In connection with the issuance of the regulations on the adequate
diversification standards, the Department of the Treasury announced that the
regulations do not provide guidance concerning the extent to which contract
owners may direct their investments among Sub-accounts of a variable account.
The Internal Revenue Service has previously stated in published rulings that a
variable contract owner will be considered the owner of separate account assets
if the owner possesses incidents of ownership in those assets such as the
ability to exercise investment control over the assets. At the time the
diversification regulations were issued, Treasury announced that guidance would
be issued in the future regarding the extent that owners could direct their
investments among Sub-accounts without being treated as owners of the underlying
assets of the Variable Account.
The ownership rights under this contract are similar to, but different in
certain respects from, those described by the Service in rulings in which it was
determined that contract owners were not owners of separate account assets. For
example, the owner of this contract has the choice of more investment options to
which to allocate premiums and contract values, and may be able to transfer
among investment options more frequently than in such rulings. These differences
could result in the contract owner being treated as the owner of the assets of
the Variable Account. In those circumstances, income and gains from the Variable
Account assets would be includible in the Contract Owners' gross income. In
addition, the Company does not know what standards will be set forth in the
regulations or rulings which the Treasury Department has stated it expects to
issue. It is possible that the Treasury's position, when announced, may
adversely affect the tax treatment of existing contracts. The Company,
therefore, reserves the right to modify the Contract as necessary to attempt to
prevent the Owner from being considered the federal tax owner of a pro rata
share of the assets of the Variable Account. However, the Company makes no
guarantee that such modification to the contract will be successful.
<PAGE>
DELAYED MATURITY DATE
If the contract's scheduled maturity date is at a time when the annuitant has
reached an advanced age, it is possible that the contract would not be treated
as an annuity. In that event, the income and gains under the contract could be
currently includible in the owner's income.
TAXATION OF PARTIAL AND FULL WITHDRAWALS
In the case of a partial withdrawal under a non-qualified contract, amounts
received are taxable to the extent the contract value, without regard to any
surrender charge, exceeds the investment in the contract. The contract value is
the sum of all account values. No matter which account a withdrawal is made
from, all account values are combined and the total contract value is used to
determine the amount of taxable income. The investment in the contract is the
gross premium or other consideration paid for the contract reduced by any
amounts previously received from the contract to the extent such amounts were
properly excluded from the owner's gross income. There is no definitive guidance
on the proper tax treatment of Market Value Adjustments, and you should contact
a competent tax advisor with respect to the potential tax consequences of Market
Value Adjustments. In the case of a partial withdrawal under a qualified
contract, the portion of the payment that bears the same ratio to the total
payment that the investment in the contract (i.e., nondeductible IRA
contributions, after tax contributions to qualified plans) bears to the contract
value, can be excluded from income. In the case of a full withdrawal under a
non-qualified contract or a qualified contract, the amount received will be
taxable only to the extent it exceeds the investment in the contract. If an
individual transfers an annuity contract without full and adequate consideration
to a person other than the individual's spouse (or to a former spouse incident
to a divorce), the owner will be taxed on the difference between the contract
value and the investment in the contract at the time of transfer. Other than in
the case of certain qualified contracts, any amount received as a loan under a
contract, and any assignment or pledge (or agreement to assign or pledge) of the
contract value is treated as a withdrawal of such amount or portion. The
contract provides a death benefit that in certain circumstances may exceed the
greater of the payments and the contract value. As described elsewhere in the
prospectus, the Company imposes certain charges with respect to the death
benefit. It is possible that some portion of those charges could be treated for
federal tax purposes as a partial withdrawal from the contract.
TAXATION OF ANNUITY PAYMENTS
Generally, the rule for income taxation of payments received from an annuity
contract provides for the return of the owner's investment in the contract in
equal tax-free amounts over the payment period. The balance of each payment
received is taxable. In the case of variable annuity payments, the amount
excluded from taxable income is determined by dividing the investment in the
contract by the total number of expected payments. In the case of fixed annuity
payments, the amount excluded from income is determined by multiplying the
payment by the ratio of the investment in the contract (adjusted for any refund
feature or period certain) to the total expected value of annuity payments for
the term of the contract. Once the total amount of the investment in the
contract is excluded using these ratios, the annuity payments will be fully
taxable. If annuity payments cease because of the death of the annuitant before
the total amount of the investment in the contract is recovered, the unrecovered
amount generally will be allowed as a deduction to the annuitant for his last
taxable year.
<PAGE>
TAXATION OF ANNUITY DEATH BENEFITS
Amounts may be distributed from an annuity contract because of the death of an
owner or annuitant. Generally, such amounts are includible in income as follows:
(1) if distributed in a lump sum, the amounts are taxed in the same manner as a
full withdrawal or (2) if distributed under an annuity option, the amounts are
taxed in the same manner as an annuity payment.
PENALTY TAX ON PREMATURE DISTRIBUTIONS
There is a 10% penalty tax on the taxable amount of any premature distribution
from a non-qualified annuity contract. The penalty tax generally applies to any
distribution made prior to the owner attaining age 59 1/2. However, there should
be no penalty tax on distributions to owners (1) made on or after the date the
owner attains age 59 1/2; (2) made as a result of an owner's death or
disability; (3) made in substantially equal periodic payments over life or life
expectancy; (4) made under an immediate annuity; or (5) attributable to an
investment in the contract before August 14, 1982. Similar rules apply for
distributions from qualified contracts. A competent tax advisor should be
consulted to determine if any other exceptions to the penalty apply to your
specific circumstances.
AGGREGATION OF ANNUITY CONTRACTS
All non-qualified deferred annuity contracts issued by the Company (or its
affiliates) to the same owner during any calendar year will be aggregated and
treated as one annuity contract for purposes of determining the taxable amount
of a distribution.
TAX QUALIFIED CONTRACTS
Annuity contracts may be used as investments with certain tax qualified plans
such as: (1) Individual Retirement Annuities under Section 408(b) of the Code;
(2) Roth Individual Retirement Annuities under Section 408 A of the Code; (3)
Simplified Employee Pension Plans under Section 408(k) of the Code; (4) Savings
Incentive Match Plans for Employees (SIMPLE) Plans under Section 408(p) of the
Code; (5) Tax Sheltered Annuities under Section 403(b) of the Code; (7)
Corporate and Self Employed Pension and Profit Sharing Plans; and (8) State and
Local Government and Tax-Exempt Organization Deferred Compensation Plans. In the
case of certain tax qualified plans, the terms of the plans may govern the right
to benefits, regardless of the terms of the contract.
RESTRICTIONS UNDER SECTION 403(b) PLANS
Section 403(b) of the Code provides for tax-deferred retirement savings plans
for employees of certain non-profit and educational organizations. In accordance
with the requirements of Section 403(b), any annuity contract used for a 403(b)
plan must provide that distributions attributable to salary reduction
contributions made after 12/31/88, and all earnings on salary reduction
contributions, may be made only on or after the date the employee attains age 59
1/2, separates from service, dies, becomes disabled or on account of hardship
(earnings on salary reduction contributions may not be distributed on the
account of hardship). These limitations do not apply to withdrawals where the
Company is directed to transfer some or all of the contract value to another
Section 403(b) plans.
ROTH INDIVIDUAL RETIREMENT ANNUITIES
Section 408A of the Code permits eligible individuals to make nondeductible
contributions to an individual retirement program known as a Roth Individual
Retirement Annuity. Roth Individual Retirement Annuities are subject to
limitations on the amount that can be contributed and on the time when
distributions may commence. "Qualified distributions" from Roth Individual
Retirement Annuities are not includible in gross income. "Qualified
distributions" are any distributions made more than five taxable years after the
taxable year of the first contribution to the Roth Individual Retirement
Annuity, and which are made on or after the date the individual attains age 59
1/2 , made to a beneficiary after the owner's death, attributable to the owner
being disabled or for a first time home purchase (first time home purchases are
subject to a lifetime limit of $10,000). "Nonqualified distributions" are
treated as made from contributions first and are includible in gross income to
the extent such distributions exceed the contributions made to the Roth
Individual Retirement Annuity. The taxable portion of a "nonqualified
distribution" may be subject to the 10% penalty tax on premature distributions.
Subject to certain limitations, a traditional Individual Retirement Account or
Annuity may be converted or "rolled over" to a Roth Individual Retirement
Annuity. The taxable portion of a conversion or rollover distribution is
includible in gross income, but is exempted from the 10% penalty tax on
premature distributions.
INCOME TAX WITHHOLDING
The Company is required to withhold federal income tax at a rate of 20% on all
"eligible rollover distributions" unless an individual elects to make a "direct
rollover" of such amounts to another qualified plan or Individual Retirement
Account or Annuity (IRA). Eligible rollover distributions generally include all
distributions from qualified contracts, excluding IRAs, with the exception of
(1) required minimum distributions, or (2) a series of substantially equal
periodic payments made over a period of at least 10 years, or the life (joint
lives) of the participant (and beneficiary). For any distributions from non-
qualified annuity contracts, or distributions from qualified contracts which are
not considered eligible rollover distributions, the Company may be required to
withhold federal and state income taxes unless the recipient elects not to have
taxes withheld and properly notifies the Company of such election.
DISTRIBUTION OF THE CONTRACTS
Allstate Life Financial Services, Inc. ("ALFS"), 3100 Sanders Road, Northbrook
Illinois, a wholly owned subsidiary of Allstate Life, acts as the principal
underwriter of the Contracts. ALFS is registered as a broker-dealer under the
Securities Exchange Act of 1934 and is a member of the National Association of
Securities Dealers, Inc. Contracts are sold by registered representatives of
unaffiliated broker-dealers or bank employees who are licensed insurance agents
appointed by the Company, either individually or through an incorporated
insurance agency and who have entered into a selling agreement with ALFS and the
Company to sell the Contract. In some states, Contracts may be sold by
representatives or employees of banks which may be acting as broker-dealers
without separate registration under the Securities Exchange Act of 1934,
pursuant to legal and regulatory exceptions.
Commissions paid may vary, but in aggregate are not anticipated to exceed 8.00%
of any purchase payment. In addition, under certain circumstances, certain
sellers of the Contracts may be paid persistency bonuses which will take into
account, among other things, the length of time purchase payments have been held
under a Contract, and Contract Values. A persistency bonus is not expected to
exceed 0.25%, on an annual basis, of the Contract Values considered in
connection with the bonus. These commissions are intended to cover distribution
expenses. The underwriting agreement with ALFS provides for indemnification of
ALFS by the Company for liability to Owners arising out of services rendered or
Contracts issued.
VOTING RIGHTS
The Owner or anyone with a voting interest in the Sub-account of the Variable
Account may instruct the Company on how to vote at shareholder meetings of each
Fund. The Company will solicit and cast each vote according to the procedures
set up by the Fund and to the extent required by law. Fund shares as to which no
timely instructions are received will be voted in proportion to the voting
instructions which are received with respect to all Contracts participating in
that Sub-account. Voting instructions to abstain on any item to be voted upon
will be applied on a pro-rata basis to reduce the votes eligible to be cast. The
Company reserves the right to vote Fund shares in its own right, to the extent
permitted by the Investment Company Act of 1940, its regulations or
interpretations thereof.
Before the Payout Start Date, the Owner holds the voting interest in the
Sub-account of the Variable Account. (The number of votes for the Owner will be
determined by dividing the Contract Value attributable to a Sub-account by the
net asset value per share of the applicable eligible Portfolio.)
After the Payout Start Date, the person receiving income payments has the voting
interest. After the Payout Start Date, the votes decrease as income payments are
made and as the reserves for the Contract decrease. That person's number of
votes will be determined by dividing the reserve for such Contract allocated to
the applicable Sub-account by the net asset value per share of the corresponding
eligible Portfolio.
SELECTED FINANCIAL DATA
The following selected financial data for the Company should be read in
conjunction with the financial statements and notes thereto included in this
prospectus beginning on page F-1.
GLENBROOK LIFE AND ANNUITY COMPANY
SELECTED FINANCIAL DATA
(IN THOUSANDS)
<TABLE>
<CAPTION>
YEAR-END FINANCIAL DATA 1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
For The Years Ended December 31:
Income Before Income Tax Expense. $8,764 $3,774 $4,455 $2,017 $836
Net Income. 5,686 2,435 2,879 1,294 529
As of December 31:
Total Assets. 3,351,541 2,404,527 1,409,705 750,245 169,361
</TABLE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1997.
The following discussion highlights significant factors influencing results of
operations and changes in financial position of Glenbrook Life and Annuity
Company (the "Company"). It should be read in conjunction with the financial
statements and related notes.
The Company, a wholly owned subsidiary of Allstate Life Insurance Company
("ALIC"), which is wholly owned by Allstate Insurance Company ("AIC"), a wholly
owned subsidiary of The Allstate Corporation, markets life insurance and annuity
products through banks and broker-dealers.
The Company issues flexible premium deferred variable annuity contracts and
variable life policies, the assets and liabilities of which are legally
segregated and reflected as Separate Account assets and liabilities. Separate
Account assets and liabilities are carried at fair value in the statements of
financial position. Certain of the Separate Account investment portfolios were
initially funded with a $10.0 million seed money contribution from the Company
in 1995. During 1997, the Company liquidated its funding in the Separate Account
investment portfolios. Investment income and realized gains and losses of the
Separate Accounts, other than the portion related to the Company's
participation, accrue directly to the contractholders (net of fees) and,
therefore, are not included in the Company's statements of operations.
<TABLE>
<CAPTION>
Results of Operations
($ in thousands)
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Net investment income $5,304 $3,774 $3,996
====== ====== ======
Realized capital gains and losses, after-tax $2,249 $ - $ 298
====== ====== ======
Net income $5,686 $2,435 $2,879
====== ====== ======
Investments $90,474 $50,676 $50,917
======= ======= =======
</TABLE>
The Company and ALIC entered into a reinsurance agreement effective June 5,
1992. All business issued subsequent to that date is ceded to ALIC. Life
insurance in force prior to that date is ceded to non-affiliated reinsurers. The
Company's results of operations include only investment income and realized
capital gains and losses earned on the assets of the Company that are not
transferred to ALIC under the reinsurance agreement.
Net income increased $3.3 million in 1997 due to realized capital gains arising
primarily from the withdrawal of the seed money from the Separate Account and
the increase in net investment income. The $444 thousand decrease in net income
in 1996 reflects the decrease in net investment income and realized capital
gains.
Pretax net investment income in 1997 increased 40.5%, or $1.5 million, to $5.3
million compared to $3.8 million in 1996. This higher net investment income was
caused by a significant increase in the level of investments primarily arising
from a $20.0 million capital contribution received from ALIC in January 1997 and
the liquidation of the Company's seed money investment in the Separate Account,
partially offset by an increase in investment expenses. Net investment income
decreased $222 thousand in 1996 due to the impact of the Company's $10.0 million
original investment in the variable funds of the Separate Account, whose assets
are invested predominantly in equity securities. The dividend yield on the
variable funds is significantly below the level of interest earned on fixed
income securities in which the $10.0 million was invested prior to the fourth
quarter of 1995. This decrease in income was partially offset by additional
investment income earned on the higher investment balances arising from positive
cash flows from operating activities in 1996.
Realized capital gains after tax of $2.2 million in 1997 were associated
primarily with the withdrawal of the investment in Separate Account portfolios.
Realized capital gains after tax of $298 thousand in 1995 were the result of
sales of investments to fund the Company's participation in the Separate
Accounts.
Financial Position
($ in thousands)
1997 1996
---- ----
Fixed income securities (1) $86,243 $49,389
Short-term investments 4,231 1,287
---------------------- ------- -------
Total investments $90,474 $50,676
================= ======= =======
Reinsurance recoverable from ALIC $2,637,983 $2,060,419
================================= ========== ==========
Separate Account assets $620,535 $272,420
======================= ======== ========
Contractholder funds $2,637,983 $2,060,419
==================== ========== ==========
Separate Account liabilities $620,535 $260,290
============================ ======== ========
(1) Fixed income securities are carried at fair value. Amortized cost for
these securities was $81,369 and $46,925 at December 31, 1997 and 1996,
respectively.
The Company's fixed income securities portfolio consists of mortgage-backed
securities, U.S. government bonds, publicly traded corporate bonds and
tax-exempt municipal bonds. The Company generally holds its fixed income
securities for the long term, but has classified all of these securities
available for sale to allow maximum flexibility in portfolio management.
Investments grew $39.8 million, or 78.5%, during 1997. The increase in
investments is primarily due to the receipt of a $20.0 million capital
contribution from ALIC in January 1997 and liquidation of the seed money from
the Separate Account during 1997. In addition, at December 31, 1997, unrealized
net capital gains on the fixed income securities portfolio were $4.9 million
compared to $2.5 million as of December 31, 1996, primarily attributable to the
increase in the Company's fixed income securities portfolio during 1997.
At the end of 1997, all of the Company's fixed income securities portfolio is
rated investment grade, with a National Association of Insurance Commissioners
("NAIC") rating of 1 or a Moody's rating of Aaa, Aa or A.
At December 31, 1997 and 1996, $31.9 million and $16.4 million, respectively, of
the fixed income securities portfolio were invested in mortgage-backed
securities ("MBS"). At December 31, 1997, all of the MBS had underlying
collateral that is guaranteed by U.S. government entities, thus credit risk was
minimal.
MBS, however, are subject to interest rate risk as the duration and ultimate
realized yield are affected by the rate of repayment of the underlying
mortgages. The Company attempts to limit interest rate risk by purchasing MBS
whose cost does not significantly exceed par value, and with repayment
protection to provide a more certain cash flow to the Company. At December 31,
1997, the amortized cost of the MBS portfolio was below par value by $417
thousand and over 31% of the MBS portfolio was invested in planned amortization
class bonds. This type of MBS is purchased to provide additional protection
against rising interest rates.
The Company closely monitors its fixed income securities portfolio for declines
in value that are other than temporary. Securities are placed on non-accrual
status when they are in default or when the receipt of interest payments is in
doubt.
The Company's short-term investment portfolio was $4.2 million and $1.3 million
at December 31, 1997 and 1996, respectively. The Company invests available cash
balances primarily in taxable short-term securities having a final maturity date
or redemption date of one year or less.
During 1997, contractholder funds and amounts recoverable from ALIC under the
reinsurance agreement increased by $577.6 million. The increases resulted from
sales of the Company's single and flexible premium deferred annuities, interest
credited to contractholders, partially offset by surrenders, withdrawals and
benefits paid. Reinsurance recoverable from ALIC relates to contract benefit
obligations ceded to ALIC.
Separate Account assets increased by $348.1 million and Separate Account
liabilities increased by $360.2 million as compared with December 31, 1996. The
increases were primarily attributable to increased sales of flexible premium
deferred variable annuity contracts and the favorable investment performance of
the Separate Account investment portfolios, partially offset by variable annuity
surrenders and withdrawals. Additionally, the Separate Account asset was reduced
by the Company's liquidation of its seed money investment during 1997.
Market Risk
- -----------
Market risk is the risk that the Company will incur losses due to adverse
changes in market rates and prices. The Company's primary market risk exposure
is to changes in interest rates. Interest rate risk is the risk that the Company
will incur economic losses due to adverse changes in interest rates, as the
Company invests substantial funds in interest-sensitive assets.
One way to quantify this exposure is duration. Duration measures the sensitivity
of the fair value of assets to changes in interest rates. For example, if
interest rates increase 1%, the fair value of an asset with a duration of 5
years is expected to decrease in value by approximately 5%. At December 31,
1997, the Company's asset duration was approximately 5.3 years.
To calculate duration, the Company projects asset cash flows, and discounts them
to a net present value basis using a risk-free market rate adjusted for credit
quality, sector attributes, liquidity and other specific risks. Duration is
calculated by revaluing these cash flows at an alternative level of interest
rates, and determining the percentage change in fair value from the base case.
The projections include assumptions (based upon historical market and Company
specific experience) reflecting the impact of changing interest rates on the
prepayment and/or option features of instruments, where applicable. Such
assumptions relate primarily to mortgage-backed securities, collateralized
mortgage obligations, and municipal and corporate obligations.
Based upon the information and assumptions the Company uses in its duration
calculation and in effect at December 31, 1997, management estimates that a 100
basis point immediate, parallel increase in interest rates ("rate shock") would
decrease the net fair value of its total investments by approximately $4.5
million. The selection of a 100 basis point immediate rate shock should not be
construed as a prediction by the Company's management of future market events;
but rather, to illustrate the potential impact of such an event.
To the extent that actual results differ from the assumptions utilized, the
Company's duration and rate shock measures could be significantly impacted.
Additionally, the Company's calculation assumes that the current relationship
between short-term and long-term interest rates (the term structure of interest
rates) will remain constant over time. As a result, these calculations may not
fully capture the impact of non-parallel changes in the term structure of
interest rates and/or large changes in interest rates.
In formulating and implementing policies for investing new and existing funds,
AIC, as parent company of ALIC, administers and oversees investment risk
management processes primarily through three oversight bodies: the Boards of
Directors and Investment Committees of its operating subsidiaries, and the
Credit and Risk Management Committee ("CRMC"). The Boards of Directors and
Investment Committees provide executive oversight of investment activities. The
CRMC is a senior management committee consisting of the Chief Investment
Officer, the Investment Risk Manager, and other investment officers who are
responsible for the day-to-day management of market risk. The CRMC meets at
least monthly to provide detailed oversight of investment risk, including market
risk.
AIC has investment guidelines that define the overall framework for managing
market and other investment risks, including the accountabilities and controls
over these activities. In addition, AIC has specific investment policies for
each of its affiliates, including the Company, that delineate the investment
limits and strategies that are appropriate for the Company's liquidity, surplus,
product and regulatory requirements.
Liquidity and Capital Resources
- -------------------------------
In January 1997, a $20.0 million capital contribution that was accrued at
December 31, 1996 was received from ALIC.
Under the terms of reinsurance agreements, premiums and deposits on universal
life policies and investment contracts, excluding those relating to Separate
Accounts, are transferred to ALIC, which maintains the investment portfolios
supporting the Company's products. The Company continues to have primary
liability as a direct insurer for risks reinsured.
The NAIC has a standard for assessing the solvency of insurance companies, which
is referred to as risk-based capital ("RBC"). The requirement consists of a
formula for determining each insurer's RBC and a model law specifying regulatory
actions if an insurer's RBC falls below specified levels. The RBC formula for
life insurance companies establishes capital requirements relating to insurance,
business, asset and interest rate risks. At December 31, 1997, RBC for the
Company was significantly above a level that would require regulatory action.
Year 2000
- ---------
The Company is heavily dependent upon complex computer systems for all phases of
its operations, including customer service, and policy and contract
administration. Since many of the Company's older computer software programs
recognize only the last two digits of the year in any date, some software may
fail to operate properly in or after the year 1999, if the software is not
reprogrammed or replaced, ("Year 2000 Issue"). The Company believes that many of
its counterparties and suppliers also have Year 2000 Issues which could affect
the Company. In 1995, AIC commenced a plan intended to mitigate and/or prevent
the adverse effects of Year 2000 Issues. These strategies include normal
development and enhancement of new and existing systems, upgrades to operating
systems already covered by maintenance agreements and modifications to existing
systems to make them Year 2000 compliant. The plan also includes the Company
actively working with its major external counterparties and suppliers to assess
their compliance efforts and the Company's exposure to them. The Company
presently believes that it will resolve the Year 2000 Issue in a timely manner,
and the financial impact will not materially affect its results of operations,
liquidity or financial position. Year 2000 costs are and will be expensed as
incurred.
Pending Accounting Standards
- ----------------------------
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 130 "Reporting Comprehensive Income"
and SFAS No. 131 "Disclosures About Segments of an Enterprise and Related
Information." SFAS No. 130 requires the presentation of comprehensive income in
the financial statements. Comprehensive income is a measurement of all changes
in equity that result from transactions and other economic events other than
transactions with stockholders. The requirements of this statement will be
adopted effective January 1, 1998.
SFAS No. 131 redefines how segments are determined and requires additional
segment disclosures for both annual and quarterly reporting. Under this
statement, segments are determined using the "management approach" for financial
statement reporting. The management approach is based on the way an enterprise
makes operating decisions and assesses performance of its businesses. The
Company is currently reviewing the requirements of the SFAS and has yet to
determine its impact on its current reporting segments.
The requirements of this statement will be adopted effective December 31, 1998.
In December 1997, the Accounting Standards Executive Committee of the American
Institute of Certified Public Accountants ("AICPA") issued Statement of Position
("SOP") 97-3, "Accounting by Insurance and Other Enterprises for
Insurance-related Assessments." The SOP provides guidance concerning when to
recognize a liability for insurance-related assessments and how those
liabilities should be measured. Specifically, insurance-related assessments
should be recognized as liabilities when all of the following criteria have been
met: a) an assessment has been imposed or it is probable that an assessment will
be imposed, b) the event obligating an entity to pay an assessment has occurred
and c) the amount of the assessment can be reasonably estimated. The
requirements of this standard will be adopted in 1999 and are not expected to
have a material impact on the results of operations, cash flows or financial
position of the Company. The SOP is expected to be adopted in 1999.
In March 1998, the Accounting Standards Executive Committee of the AICPA issued
SOP 98-1, "Accounting for the Costs of Computer Software Developed or Obtained
for Internal Use." The SOP provides guidance on accounting for the costs of
computer software developed or obtained for internal use. Specifically, certain
external, payroll and payroll related costs should be capitalized during the
application development state of a project and depreciated over the computer
software's useful life. The Company currently expenses these costs as incurred
and is evaluating the effects of this SOP on its accounting for internally
developed software. The SOP is expected to be adopted in 1998.
<PAGE>
Forward-Looking Statements
- --------------------------
The statements contained in this Management's Discussion and Analysis that are
not historical information are forward-looking statements that are based on
management's estimates, assumptions and projections. The Private Securities
Litigation Reform Act of 1995 provides a safe harbor under the Securities Act of
1933 and the Securities Exchange Act of 1934 for forward-looking statements.
Glenbrook Life and Annuity Company
Management's Discussion and Analysis
of Financial Condition and Results of Operations
For the Six Month Period Ended June 30, 1998
The Company, a wholly owned subsidiary of Allstate Life Insurance Company
("ALIC"), which is wholly owned by Allstate Insurance Company ("AIC"), a wholly
owned subsidiary of The Allstate Corporation (the "Corporation"), markets life
insurance and annuity products through banks and broker-dealers.
The Company issues flexible premium deferred variable annuity contracts and
variable life policies, the assets and liabilities of which are legally
segregated and reflected as Separate Account assets and liabilities. Separate
Account assets and liabilities are carried at fair value in the statements of
financial position. Certain of the Separate Account investment portfolios were
initially funded with a $10.0 million seed money contribution from the Company
in 1995. During 1997, the Company liquidated its funding in the Separate Account
investment portfolios. Investment income and realized gains and losses of the
Separate Accounts, other than the portion which related to the Company's
participation, accrue directly to the contractholders (net of fees) and,
therefore, are not included in the Company's statements of operations.
<TABLE>
<CAPTION>
Results of Operations
($ in thousands)
Three months ended Six months ended
June 30, June 30,
------------------------------------ ------------------------------------
1998 1997 1998 1997
---------------- ---------------- -------------- ------------------
<S> <C> <C> <C> <C>
Net investment income $ 1,541 $ 1,292 $ 3,127 $ 2,534
========= ========= ========= =========
Realized capital gains and
losses, after-tax $ - $ 766 $ - $ 770
========= ========= ========= =========
Net income $ 999 $ 1,603 $ 2,062 $ 2,411
========= ========= ========= =========
Investments $ 94,147 $ 72,544 $ 94,147 $ 72,544
========= ========= ========= =========
</TABLE>
The Company and ALIC entered into a reinsurance agreement effective June 5,
1992. All business issued subsequent to that date is ceded to ALIC. Life
insurance in force prior to that date is ceded to non-affiliated reinsurers. The
Company's results of operations include only investment income and realized
capital gains and losses earned on the assets of the Company that are not
transferred to ALIC under the reinsurance agreement.
Net income for the three-month and six-month periods ended June 30, 1998
decreased $604 thousand and $349 thousand, respectively, compared with the same
periods in 1997. Increased investment income was more than offset by decreased
realized capital gains in both periods. Realized capital gains in 1997 were
associated primarily with the withdrawal of the Company's seed money investment
in Separate Account portfolios.
<PAGE>
Pretax net investment income increased 19.3% and 23.4% in the second
quarter and the first six months of 1998, respectively, from the comparable 1997
periods. Additional investment income was earned on higher investment balances
arising from positive cash flows from operating activities.
Financial Position
($ in thousands)
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
-------------- ------------
<S> <C> <C>
Fixed income securities (1) $ 93,021 $ 86,243
Short-term investments 1,126 4,231
-------------- ------------
Total investments $ 94,147 $ 90,474
============== ============
Reinsurance recoverable from ALIC $ 2,843,210 $ 2,637,983
============== ============
Separate Account assets and liabilities $ 849,776 $ 620,535
============== ============
Contractholder funds $ 2,843,210 $ 2,637,983
============== ============
</TABLE>
(1) Fixed income securities are carried at fair value. Amortized cost for these
securities was $87,553 and $81,369 at June 30, 1998 and December 31, 1997,
respectively.
The Company's fixed income securities portfolio consists of mortgage-backed
securities, publicly traded corporate bonds, U.S. government bonds and
tax-exempt municipal bonds. The Company generally holds its fixed income
securities for the long term, but has classified all of these securities as
available for sale to allow maximum flexibility in portfolio management.
Total investments increased to $94.1 million at June 30, 1998 from $90.5
million at December 31, 1997. The increase in investments is primarily due to
amounts invested from positive cash flows generated from operations and an
increase in unrealized net capital gains on the fixed income securities
portfolio. At June 30, 1998, unrealized net capital gains on fixed income
securities were $5.5 million compared to $4.9 million at December 31, 1997.
At June 30, 1998, all of the Company's fixed income securities portfolio is
rated investment grade, with a National Association of Insurance Commissioners
rating of 1 or 2 or a Moody's rating of Aaa, Aa, A, or Baa, or a comparable
Company internal rating.
The Company's short-term investment portfolio was $1.1 million and $4.2
million at June 30, 1998 and December 31, 1997, respectively. The Company
invests available cash balances primarily in taxable short-term securities
having a final maturity date or redemption date of one year or less.
During 1998, contractholder funds and amounts recoverable from ALIC under
the reinsurance agreement increased by $205.2 million. The increases resulted
from sales of the Company's single and flexible premium deferred annuities and
interest credited to contractholders, partially offset by surrenders,
withdrawals and benefits paid. Reinsurance recoverable from ALIC relates to
contract benefit obligations ceded to ALIC.
Separate Account assets and liabilities increased by $229.2 million as
compared with December 31, 1997. The increases were primarily attributable to
sales of flexible premium deferred variable annuity contracts and the favorable
investment performance of the Separate Account investment portfolios, partially
offset by variable annuity surrenders and withdrawals.
<PAGE>
Liquidity and Capital Resources
Under the terms of reinsurance agreements, premiums and deposits on
universal life policies and annuity contracts, excluding those relating to
Separate Accounts, are transferred to ALIC, which maintains the investment
portfolios supporting the Company's products. The Company continues to have
primary liability as a direct insurer for risks reinsured.
Year 2000
The Company is heavily dependent upon complex computer systems for all
phases of its operations, including customer service, and policy and contract
administration. Since many of the Company's older computer software programs
recognize only the last two digits of the year in any date, some software may
fail to operate properly in or after the year 1999, if the software is not
reprogrammed, remediated or replaced ("Year 2000 Issue"). The Company believes
that many of its counterparties and suppliers also have Year 2000 Issues which
could affect the Company. In 1995, AIC commenced a plan intended to mitigate
and/or prevent the adverse effects of Year 2000 Issues. These strategies include
normal development and enhancement of new and existing systems, upgrades to
operating systems already covered by maintenance agreements and modifications to
existing systems to make them Year 2000 compliant. The plan also includes the
Company actively working with its major external counterparties and suppliers to
assess their compliance efforts and the Company's exposure to them. The Company
presently believes that it will resolve the Year 2000 Issue in a timely manner,
and the financial impact will not materially affect its results of operations,
liquidity or financial position. The Company is working closely with its
business partners, counterparties and suppliers in an effort to bring all
communications, facilities, software and systems into Year 2000 compliance. Year
2000 costs are expensed as incurred.
Pending Accounting Standards
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 131, "Disclosures about Segments of
an Enterprise and Related Information." SFAS No. 131 redefines how segments are
determined and requires additional segment disclosures for both annual and
quarterly reporting. Under this Statement, segments are determined using the
"management approach" for financial statement reporting. The management approach
is based on the way an enterprise makes operating decisions and assesses
performance of its businesses. The Company is currently reviewing the
requirements of the Statement and has not determined the impact on its current
reporting. The requirements of this Statement will be adopted effective December
31, 1998.
In December 1997, the Accounting Standards Executive Committee of the
American Institute of Certified Public Accountants ("AICPA") issued Statement of
Position ("SOP") 97-3, "Accounting by Insurance and Other Enterprises for
Insurance-Related Assessments." The SOP provides guidance concerning when to
recognize a liability for insurance-related assessments and how those
liabilities should be measured. Specifically, insurance-related assessments
should be recognized as liabilities when all of the following criteria have been
met: 1) an assessment has been imposed or it is probable that an assessment will
be imposed, 2) the event obligating an entity to pay an assessment has occurred
and 3) the amount of the assessment can be reasonably estimated. The
requirements of this Statement are expected to be adopted in 1999 and are not
expected to have a material impact on the results of operations, cash flows or
financial position of the Company.
Forward-Looking Statements
The statements contained in this Management's Discussion and Analysis that
are not historical information are forward-looking statements that are based on
management's estimates, assumptions and projections. The Private Securities
Litigation Reform Act of 1995 provides a safe harbor under The Securities Act of
1933 and The Securities Exchange Act of 1934 for forward-looking statements.
COMPETITION
The Company is engaged in a business that is highly competitive because of the
large number of stock and mutual life insurance companies and other entities
competing in the sale of insurance and annuities. There are approximately 2,000
stock, mutual and other types of insurers in business in the United States.
Several independent rating agencies regularly evaluate life insurer's
claims-paying ability, quality of investments and overall stability. A.M. Best
Company assigns A+ (Superior) to Allstate Life which automatically reinsures all
net business of the Company. A.M. Best Company also assigns the Company the
rating of A+(r) because the Company automatically reinsures all net business
with Allstate Life. Standard & Poor's Insurance Rating Services assigns AA+
(Excellent) to Glenbrook Life's claims-paying ability and Moody's assigns an Aa2
(Excellent) financial strength rating to Glenbrook Life. These ratings do not
relate to the investment performance of the Variable Account.
EMPLOYEES
As of December 31, 1997, the Company had approximately 125 employees at its home
office in Northbrook, Illinois.
PROPERTIES
The Company occupies office space provided by Allstate Insurance Company, in
Northbrook, Illinois. Expenses associated with these offices are allocated on a
direct and indirect basis to the Company.
STATE AND FEDERAL REGULATION
The insurance business of the Company is subject to comprehensive and detailed
regulation and supervision throughout the United States. The laws of the various
jurisdictions establish supervisory agencies with broad administrative powers
with respect to licensing to transact business, overseeing trade practices,
licensing agents, approving policy forms, establishing reserve requirements,
fixing maximum interest rates on life insurance policy loans and minimum rates
for accumulation of surrender values, prescribing the form and content of
required financial statements and regulating the type and amounts of investments
permitted. Each insurance company is required to file detailed annual reports
with supervisory agencies in each of the jurisdictions in which it does business
and its operations and accounts are subject to examination by such agencies at
regular intervals.
Under insurance guaranty fund law, in most states, insurers doing business
therein can be assessed up to prescribed limits for contract owner losses
incurred as a result of company insolvencies. The amount of any future
assessments on the Company under these laws cannot be reasonably estimated. Most
of these laws do provide, however, that an assessment may be excused or deferred
if it would threaten an insurer's own financial strength.
In addition, several states, including Illinois, regulate affiliated groups of
insurers, such as the Company and its affiliates, under insurance holding
company legislation. Under such laws, intercompany transfers of assets and
dividend payments from insurance subsidiaries may be subject to prior notice or
approval, depending on the size of such transfers and payments in relation to
the financial positions of the companies.
Although the federal government generally does not directly regulate the
business of insurance, federal initiatives often have an impact on the business
in a variety of ways. Current and proposed federal measures which may
significantly affect the insurance business include employee benefit regulation,
controls on medical care costs, removal of barriers preventing banks from
engaging in the securities and insurance business, tax law changes affecting the
taxation of insurance companies, the tax treatment of insurance products and its
impact on the relative desirability of various personal investment vehicles, and
proposed legislation to prohibit the use of gender in determining insurance and
pension rates and benefits.
EXECUTIVE OFFICERS AND DIRECTORS OF THE COMPANY
The directors and executive officers are listed below, together with information
as to their ages, dates of election and principal business occupations during
the last five years (if other than their present business occupations).
LOUIS G. LOWER, II, 53, Chief Executive Officer and Chairman of the Board and
Director (1995)*
Also Director (1986-Present) and Senior Vice President (1995-Present) of
Allstate Insurance Company; Director (1991-Present) of Allstate Life Financial
Services, Inc.; Director (1986-Present) and President (1990-Present) Allstate
Life Insurance Company; Director (1983-Present) and Chairman of the Board
(1990-Present) of Allstate Life Insurance Company of New York; Director
(1990-1997), Chairman of the Board of Directors and Chief Executive Officer
(1995-1997), Chairman of the Board of Directors and President (1990-1995) of
Glenbrook Life Insurance Company; Director and Chairman of the Board
(1995-Present) of Laughlin Group Holdings, Inc.; Director and Chairman of the
Board of Directors and Chief Executive Officer (1989-Present) Lincoln Benefit
Life Company; Director (1986-Present), Chairman of the Board of Directors and
Chief Executive Officer (1995-Present) of Northbrook Life Insurance Company; and
Chairman of the Board of Directors and Chief Executive Officer (1995-Present)
Surety Life Insurance Company.
PETER H. HECKMAN, 53, President, Chief Operating Officer and Director (1996)*
Also Director and Vice President (1988-Present) of Allstate Life Insurance
Company; Director (1990-1996), Vice President (1989-Present), Allstate Life
Insurance Company of New York; Director (1990-1997), President and Chief
Operating Officer (1996-1997), and Vice President (1990-1996), Glenbrook Life
Insurance Company; Director (1995-Present) and Vice Chairman of the Board
(1996-Present) Laughlin Group Holdings, Inc.; Director (1990-Present) and Vice
Chairman of the Board (1996-Present) Lincoln Benefit Life Company; Director
(1988-Present) President and Chief Operating Officer (1996-Present), and was
Vice President (1989-1996), Northbrook Life Insurance Company; and Director
(1995-Present) and Vice Chairman of the Board (1996-Present) Surety Life
Insurance Company.
MICHAEL J. VELOTTA, 52, Vice President, Secretary, General Counsel, and Director
(1992)*
Also Director and Secretary (1993-Present) of Allstate Life Financial Services,
Inc.; Director (1992-Present) Vice President, Secretary and General Counsel
(1993-Present) Allstate Life Insurance Company; Director (1992-Present) Vice
President, Secretary and General Counsel (1993-Present) Allstate Life Insurance
Company of New York; Director (1992-1997) Vice President, Secretary and General
Counsel (1993-1997) Glenbrook Life Insurance Company; Director and Secretary
(1995-Present) Laughlin Group Holdings, Inc.; Director (1992-Present) and
Assistant Secretary (1995-Present) Lincoln Benefit Life Company; Director
(1992-Present) Vice President, Secretary and General Counsel (1993-Present)
Northbrook Life Insurance Company; and Director and Assistant Secretary
(1995-Present) Surety Life Insurance Company.
JOHN R. HUNTER, 43, Senior Vice President (1997) and Director (1996)*
Also Assistant Vice President (1990-Present) Allstate Life Insurance Company;
Assistant Vice President (1996-Present) Allstate Life Insurance Company of New
York; President and Chief Executive Officer (1998-Present) Allstate Life
Financial Services Inc.; Director (1996-1997) Glenbrook Life Insurance Company;
and Director (1994-Present) and Assistant Vice President (1990-Present)
Northbrook Life Insurance Company.
G. CRAIG WHITEHEAD, 52, Senior Vice President and Director (1995)*
Also Assistant Vice President (1991-Present) Allstate Life Insurance Company;
Director (1994-1997) Assistant Vice President (1991-1997) Glenbrook Life
Insurance Company; Assistant Vice President (1992-Present) Secretary (1995)
Glenbrook Life and Annuity Company; Director (1995-Present); Vice President
(1997-Present) Laughlin Group Holdings, Inc.
MARLA G. FRIEDMAN, 44, Vice President (1996)*
Also Director (1991-Present) and Vice President (1988-Present) Allstate Life
Insurance Company; Director (1993-1996) Allstate Life Financial Services, Inc.;
Director (1997-Present) and Assistant Vice President (1996-Present) Allstate
Life Insurance Company of New York; Director (1991-1996), President and Chief
Operating Officer (1995-1996) and Vice President (1990-1995) and (1996-1997)
Glenbrook Life Insurance Company; Director and Vice Chairman of the Board
(1995-1996) Laughlin Group Holdings, Inc.; and Director (1989-1996), President
and Chief Operating Officer (1995-1996) and Vice President (1996-Present)
Northbrook Life Insurance Company.
KEVIN R. SLAWIN, 40, Vice President (1996) and Director (1998)*
Also Assistant Vice President and Assistant Treasurer (1995-1996) Allstate
Insurance Company; Director (1996-Present) and Assistant Treasurer (1995-1996)
Allstate Life Financial Services, Inc.; Director and Vice President
(1996-Present) and Assistant Treasurer (1995-1996) Allstate Life Insurance
Company; Director and Vice President (1996-Present) and Assistant Treasurer
(1995-1996) Allstate Life Insurance Company of New York; Director and Vice
President (1996-1997) and Assistant Treasurer (1995-1996) Glenbrook Life
Insurance Company; Director (1996-Present) and Assistant Treasurer (1995-1996)
Laughlin Group Holdings, Inc.; Director (1996-Present) Lincoln Benefit Life
Company; Director and Vice President (1996-Present) and Assistant Treasurer
(1995-1996) Northbrook Life Insurance Company; Director (1996-Present) Surety
Life Insurance Company; and Assistant Treasurer and Director (1994-1995) Sears
Roebuck and Co.; and Treasurer and First Vice President (1986-1994) Sears
Mortgage Corporation.
CASEY J. SYLLA, 55, Chief Investment Officer (1995)*
Also Director (1995-Present ) Senior Vice President and Chief Investment Officer
(1995-Present) Allstate Insurance Company; Director (1995-Present) Chief
Investment Officer (1995-Present) Allstate Life Insurance Company; Chief
Investment Officer (1995-Present) Allstate Life Insurance Company of New York;
Chief Investment Officer (1995-1997) Glenbrook Life Insurance Company; and
Director and Chief Investment Officer (1995-Present) Northbrook Life Insurance
Company. Prior to 1995 he was Senior Vice President and Executive
Officer-Investments (1992-1995) of Northwestern Mutual Life Insurance Company.
JAMES P. ZILS, 47, Treasurer (1995)*
Also Vice President and Treasurer (1995-Present) Allstate Insurance Company;
Treasurer (1995-Present) Allstate Life Financial Services, Inc.; Treasurer
(1995-Present) Allstate Life Insurance Company; Treasurer (1995-Present)
Allstate Life Insurance Company of New York; Treasurer (1995-1997) Glenbrook
Life Insurance Company; Treasurer (1995-Present) Laughlin Group Holdings, Inc.;
and Treasurer (1995-Present) Northbrook Life Insurance Company. From 1993 to
1995, he was Vice President of Allstate Life Insurance Company.
* Date elected to current office.
EXECUTIVE COMPENSATION
Executive officers of the Company also serve as officers of Allstate Life and
receive no compensation directly from the Company. Some of the officers also
serve as officers of other companies affiliated with the Company. Allocations
have been made as to each individual's time devoted to his or her duties as an
executive officer of the Company. However, no officer's compensation allocated
to the Company exceeded $100,000 in 1997. The allocated cash compensation of all
officers of the Company as a group for services rendered in all capacities to
the Company during 1997 totaled $214,774.75. Directors of the Company receive no
compensation in addition to their compensation as employees of the Company.
Shares of the Company and Allstate Life are not directly owned by any director
or officer of the Company. The percentage of shares of The Allstate Corporation
beneficially owned by any director, and by all directors and officers of the
Company as a group, does not exceed one percent of the class outstanding.
<PAGE>
<TABLE>
<CAPTION>
SUMMARY COMPENSATION TABLE
(ALLSTATE LIFE INSURANCE COMPANY)
LONG TERM COMPENSATION
ANNUAL COMPENSATION AWARDS PAYOUTS
(a) (b) (c) (d) (e) (f) (g) (h) (i)
Securities
Underlying
Other Annual Restricted Options/ LTIP All Other
Salary Bonus Compensation Stock SARS Payouts Compensation
Name and Principal Position Year ($) ($) $Award(s) (#) ($) ($)
---- --- --- --------- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Louis G. Lower, II.. 1997 $453,225 $500,000 $27,768 $280,589 $25,914 $570,068 $8,000(1)
Chief Executive Officer. 1996 $436,800 $246,781 $10,246 $0 $18,258 $0 $5,250(1)
and Chairman of the Board 1995 $416,000 $286,650 $17,044 $0 $89,359 $411,122 $5,250(1)
of Directors
</TABLE>
(1) Amount received by Mr. Lower which represents the value allocated to
his account from employer contributions under The Savings and Profit
Sharing Fund of Allstate Employees and prior to 1996, The Profit Sharing
Fund and to its predecessor, The Savings and Profit Sharing Fund of Sears
employees.
LEGAL PROCEEDINGS
From time to time the Company is involved in pending and threatened litigation
in the normal course of its business in which claims for monetary damages are
asserted. Management, after consultation with legal counsel, does not anticipate
the ultimate liability arising from such pending or threatened litigation to
have a material effect on the financial condition of the Company.
EXPERTS
The December 31, 1997 financial statements and financial statement schedule of
the Company included in this prospectus, have been audited by Deloitte & Touche
LLP, Two Prudential Plaza, 180 North Stetson Avenue, Chicago, Illinois,
60601-6779, independent auditors, as stated in their report appearing herein,
and are included in reliance upon the report of such firm given upon their
authority as experts in accounting and auditing.
LEGAL MATTERS
Freedman, Levy, Kroll & Simonds, Washington, D.C., has advised the Company on
certain federal securities law matters. All matters of Illinois law pertaining
to the Contracts, including the validity of the Contracts and the Company's
right to issue such Contracts under Illinois insurance law, have been passed
upon by Michael J. Velotta, General Counsel of the Company.
<PAGE>
INDEPENDENT AUDITORS' REPORT
TO THE BOARD OF DIRECTORS AND SHAREHOLDER OF
GLENBROOK LIFE AND ANNUITY COMPANY:
We have audited the accompanying Statements of Financial Position of Glenbrook
Life and Annuity Company (the "Company") as of December 31, 1997 and 1996, and
the related Statements of Operations, Shareholder's Equity and Cash Flows for
each of the three years in the period ended December 31, 1997. Our audits also
included Schedule IV - Reinsurance. These financial statements and financial
statement schedule are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
financial statement schedule based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the 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, such financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 1997 and
1996, and the results of its operations and its cash flows for each of the three
years in the period ended December 31, 1997 in conformity with generally
accepted accounting principles. Also, in our opinion, Schedule IV - Reinsurance,
when considered in relation to the basic financial statements taken as a whole,
presents fairly, in all material respects, the information set forth therein.
/s/ Deloitte & Touche LLP
Chicago, Illinois
February 20, 1998
F-1
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF FINANCIAL POSITION
<TABLE>
<CAPTION>
December 31,
------------
($ in thousands) 1997 1996
---------- ---------
<S> <C> <C>
ASSETS
Investments
Fixed income securities, at fair value
(amortized cost $81,369 and $46,925) $ 86,243 $ 49,389
Short-term 4,231 1,287
--------------- ---------------
Total investments 90,474 50,676
Reinsurance recoverable from Allstate Life Insurance
Company 2,637,983 2,060,419
Net receivable from affiliates - 18,963
Other assets 2,549 2,049
Separate Accounts 620,535 272,420
--------------- ---------------
Total assets $ 3,351,541 $ 2,404,527
=============== ===============
LIABILITIES
Contractholder funds $ 2,637,983 $ 2,060,419
Income taxes payable 609 410
Deferred income taxes 1,772 1,528
Net payable to affiliates 2,698 -
Separate Accounts 620,535 260,290
--------------- ---------------
Total liabilities 3,263,597 2,322,647
=============== ===============
SHAREHOLDER'S EQUITY
Common stock, $500 par value, 4,200 shares
authorized, issued, and outstanding 2,100 2,100
Additional capital paid-in 69,641 69,641
Unrealized net capital gains 3,168 2,790
Retained income 13,035 7,349
--------------- ---------------
Total shareholder's equity 87,944 81,880
--------------- ---------------
Total liabilities and shareholder's equity $ 3,351,541 $ 2,404,527
=============== ===============
</TABLE>
See notes to financial statements.
F-2
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------
($ in thousands) 1997 1996 1995
---------------- --------------- ----------------
<S> <C> <C> <C>
REVENUES
Net investment income $ 5,304 $ 3,774 $ 3,996
Realized capital gains and losses 3,460 - 459
---------------- --------------- ----------------
INCOME BEFORE INCOME TAX EXPENSE 8,764 3,774 4,455
INCOME TAX EXPENSE 3,078 1,339 1,576
---------------- --------------- ----------------
NET INCOME $ 5,686 $ 2,435 $ 2,879
================ =============== ================
</TABLE>
See notes to financial statements.
F-3
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF SHAREHOLDER'S EQUITY
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------
($ in thousands) 1997 1996 1995
--------------- --------------- ---------------
<S> <C> <C> <C>
COMMON STOCK $ 2,100 $ 2,100 $ 2,100
--------------- --------------- ---------------
ADDITIONAL CAPITAL PAID-IN
Balance, beginning of year 69,641 49,641 49,641
Capital contributions - 20,000 -
--------------- --------------- ---------------
Balance, end of year 69,641 69,641 49,641
--------------- --------------- ---------------
UNREALIZED NET CAPITAL GAINS
Balance, beginning of year 2,790 3,357 (1,118)
Net change 378 (567) 4,475
--------------- --------------- ---------------
Balance, end of year 3,168 2,790 3,357
--------------- --------------- ---------------
RETAINED INCOME
Balance, beginning of year 7,349 4,914 2,035
Net income 5,686 2,435 2,879
--------------- --------------- ---------------
Balance, end of year 13,035 7,349 4,914
--------------- --------------- ---------------
Total shareholder's equity $ 87,944 $ 81,880 $ 60,012
=============== =============== ===============
</TABLE>
See notes to financial statements.
F-4
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------
($ in thousands) 1997 1996 1995
------------ ------------ ------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 5,686 $ 2,435 $ 2,879
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation, amortization and other non-cash
items 29 - -
Realized capital gains and losses (3,460) - (459)
Change in deferred income taxes 41 4 (39)
Changes in other operating assets and liabilities 1,160 (510) 1,217
------------ ------------ ------------
Net cash provided by operating activities 3,456 1,929 3,598
------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed income securities
Proceeds from sales 1,405 - 7,836
Investment collections 14,217 2,891 1,568
Investment purchases (50,115) (5,667) (1,491)
Participation in Separate Accounts 13,981 (232) (10,069)
Change in short-term investments, net (2,944) 815 (1,178)
------------ ------------ ------------
Net cash used in investing activities (23,456) (2,193) (3,334)
------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Capital contribution 20,000 - -
------------ ------------ ------------
Net cash provided by financing activities 20,000 - -
------------ ------------ ------------
NET (DECREASE) INCREASE IN CASH - (264) 264
CASH AT BEGINNING OF YEAR - 264 -
------------ ------------ ------------
CASH AT END OF YEAR $ - $ - $ 264
============ ============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Noncash financing activity:
Capital contribution receivable from
Allstate Life Insurance Company $ - $ 20,000 $ -
============ ============ ============
</TABLE>
See notes to financial statements.
F-5
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
1. General
Basis of presentation
The accompanying financial statements include the accounts of Glenbrook Life and
Annuity Company (the "Company"), a wholly owned subsidiary of Allstate Life
Insurance Company ("ALIC"), which is wholly owned by Allstate Insurance Company
("AIC"), a wholly owned subsidiary of The Allstate Corporation (the
"Corporation"). On June 30, 1995, Sears, Roebuck and Co. ("Sears") distributed
its 80.3% ownership in the Corporation to Sears common shareholders through a
tax-free dividend (the "Distribution"). These financial statements have been
prepared in conformity with generally accepted accounting principles.
To conform with the 1997 presentation, certain amounts in the prior years'
financial statements and notes have been reclassified.
Nature of operations
The Company markets life insurance and annuity products in the United States
through banks and broker-dealers. Life insurance includes both
interest-sensitive and variable life insurance products. Annuities include
deferred annuities, such as variable annuities and fixed rate flexible premium
annuities. The Company has entered into exclusive distribution arrangements with
management investment companies to market its variable annuity contracts.
Annuity contracts and life insurance policies issued by the Company are subject
to discretionary withdrawal or surrender by customers, subject to applicable
surrender charges. These policies and contracts are reinsured with ALIC (see
Note 3), which invests premiums and deposits to provide cash flows that will be
used to fund future benefits and expenses. In order to support competitive
crediting rates and limit interest rate risk, ALIC , as the Company's reinsurer,
adheres to a basic philosophy of matching assets with related liabilities while
maintaining adequate liquidity and a prudent and diversified level of credit
risk.
The Company monitors economic and regulatory developments which have the
potential to impact its business. There continues to be new and proposed federal
and state regulation and legislation that would allow banks greater
participation in the securities and insurance businesses, which will present an
increased level of competition for sales of the Company's life and annuity
products. Furthermore, the market for deferred annuities and interest-sensitive
life insurance is enhanced by the tax incentives available under current law.
Any legislative changes which lessen these incentives are likely to negatively
impact the demand for these products.
Although the Company currently benefits from agreements with financial services
entities who market and distribute its products, consolidation within that
industry and specifically, a change in control of those entities with which the
Company partners, could affect the Company's sales.
Enacted and pending state legislation to permit mutual insurance companies to
convert to a hybrid structure known as a mutual holding company could have a
number of significant effects on the Company by (1) increasing industry
competition through consolidation caused by mergers and acquisitions related to
the new corporate form of business; (2) increasing competition in capital
markets; and (3) reopening stock/mutual company disagreements related to such
issues as taxation disparity between mutual and stock insurance companies.
The Company is authorized to sell life and annuity products in all states except
New York, as well as in the District of Columbia. The Company is also authorized
to sell variable annuities in Puerto Rico. The top geographic locations for
statutory premiums and deposits earned by the Company are Florida, Pennsylvania,
California, Texas and Michigan for the year ended December 31, 1997. No other
jurisdiction accounted for more than 5% of statutory premiums and deposits. All
premiums and contract charges are ceded to ALIC under reinsurance agreements.
2. Summary of Significant Accounting Policies
Investments
Fixed income securities include bonds and mortgage-backed securities. All fixed
income securities are carried at fair value and may be sold prior to their
contractual maturity ( "available for sale"). The difference between amortized
cost and fair value, net of deferred income taxes, is reflected as a component
of shareholder's equity. Provisions are recognized for declines in the value of
fixed income securities that are other than temporary. Such writedowns are
included in realized capital gains and losses. Short-term investments are
carried at cost which approximates fair value.
F-6
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
Investment income consists primarily of interest, which is recognized on an
accrual basis. Interest income on mortgage-backed securities is determined on
the effective yield method, based on the estimated principal repayments. Accrual
of income is suspended for fixed income securities that are in default or when
the receipt of interest payments is in doubt. Realized capital gains and losses
are determined on a specific identification basis.
Reinsurance
The Company and ALIC entered into a reinsurance agreement effective June 5,
1992. All business issued subsequent to that date is ceded to ALIC. Life
insurance in force prior to that date is ceded to non-affiliated reinsurers.
Contract charges, credited interest, policy benefits and certain expenses are
ceded to ALIC and reflected net of such cessions in the statements of
operations. The amounts shown in the Company's statements of operations relate
to the investment of those assets of the Company that are not transferred to
ALIC under the reinsurance agreements. Reinsurance recoverable and
contractholder funds are reported separately in the statements of financial
position. The Company continues to have primary liability as the direct insurer
for risks reinsured.
Recognition of premium revenue and contract charges
Revenues on interest-sensitive life insurance policies are comprised of contract
charges and fees, and are recognized when assessed against the policyholder
account balance. Revenues on annuities, which are considered investment
contracts, include contract charges and fees for contract administration and
surrenders. These revenues are recognized when levied against the contract
balance.
Income taxes
The income tax provision is calculated under the liability method. Deferred tax
assets and liabilities are recorded based on the difference between the
financial statement and tax bases of assets and liabilities at the enacted tax
rates, and reflect the impact of reinsurance agreements. Deferred income taxes
arise primarily from unrealized capital gains and losses on fixed income
securities carried at fair value.
Separate Accounts
The Company issues flexible premium deferred variable annuity contracts and
single premium variable life policies, the assets and liabilities of which are
legally segregated and reflected in the accompanying statements of financial
position as assets and liabilities of the Separate Accounts (Glenbrook Life and
Annuity Company Variable Annuity Account, Glenbrook Life and Annuity Company
Separate Account A, Glenbrook Life Multi-Manager Variable Account and Glenbrook
Life Variable Life Separate Account A, unit investment trusts registered with
the Securities and Exchange Commission).
Assets of the Separate Accounts, including the Company's ownership interest
("Participation"), are carried at fair value. Unrealized gains and losses on the
Company's Participation, net of deferred income taxes, are shown as a component
of shareholder's equity. Investment income and realized capital gains and losses
arising from the Participation are included in the Company's statements of
operations. The Company liquidated its Participation during 1997, resulting in a
realized capital gain of $3,515. At December 31, 1996, the Participation
amounted to $12,130.
Investment income and realized capital gains and losses of the Separate
Accounts, other than the portion related to the Participation, accrue directly
to the contractholders and, therefore, are not included in the Company's
statements of operations. Revenues to the Company from the Separate Accounts
consist of contract maintenance fees, administrative fees, mortality and expense
risk charges, cost of insurance charges and tax expense charges, all of which
are ceded to ALIC.
Contractholder funds
Contractholder funds arise from the issuance of individual or group policies and
contracts that include an investment component, including most annuities and
universal life policies. Payments received are recorded as interest-bearing
liabilities. Contractholder funds are equal to deposits received and interest
credited to the benefit of the customer less withdrawals, mortality charges and
administrative expenses. During 1997, credited interest rates on contractholder
funds ranged from 3.55% to 7.45% for those contracts with fixed interest rates
and from 3.70% to 7.85% for those with flexible rates.
Use of estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
F-7
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
3. Related Party Transactions
Reinsurance
Contract charges ceded to ALIC were $11,641, $4,254 and $1,523 in 1997, 1996 and
1995, respectively. Credited interest, policy benefits and expenses ceded to
ALIC amounted to $179,954, $113,703 and $71,905 in 1997, 1996 and 1995,
respectively. Investment income earned on the assets which support
contractholder funds is not included in the Company's financial statements as
those assets are owned and managed by ALIC under the terms of reinsurance
agreements.
Business operations
The Company utilizes services and business facilities owned or leased, and
operated by AIC in conducting its business activities. The Company reimburses
AIC for the operating expenses incurred by AIC on behalf of the Company. The
cost to the Company is determined by various allocation methods and is primarily
related to the level of services provided. Operating expenses, including
compensation and retirement and other benefit programs, allocated to the Company
were $5,959, $759 and $348 in 1997, 1996 and 1995, respectively. Of these costs,
the Company retains investment related expenses. All other costs are ceded to
ALIC under reinsurance agreements.
Laughlin Group
Laughlin Group, Inc. ("Laughlin") is an indirect wholly owned subsidiary of
ALIC. Laughlin markets certain of the Company's flexible premium deferred
variable annuity contracts and flexible premium deferred fixed annuity
contracts. Sales commissions paid to Laughlin, for which the related cost was
ceded to ALIC, were $945 and $8,623 during 1997 and 1996, respectively. The
Company had a receivable of $850 from Laughlin at December 31, 1996, which is
included in net receivable from affiliates in the statements of financial
position.
4. Investments
Fair values
The amortized cost, gross unrealized gains and losses, and fair value for fixed
income securities are as follows:
<TABLE>
<CAPTION>
Gross Unrealized
----------------
Amortized Fair
Cost Gains Losses Value
--------- ----- ------ -----
<S> <C> <C> <C> <C>
At December 31, 1997
U.S. government and agencies $ 24,419 $ 2,961 $ - $ 27,380
Municipal 656 17 - 673
Corporate 25,476 840 - 26,316
Mortgage-backed securities 30,818 1,056 - 31,874
-------- ------- --------- --------
Total fixed income securities $ 81,369 $ 4,874 $ - $ 86,243
======== ======= ========= ========
At December 31, 1996
U.S. government and agencies $ 24,265 $ 1,722 $ (3) $ 25,984
Corporate 6,970 96 (15) 7,051
Mortgage-backed securities 15,690 664 - 16,354
-------- ------- --------- --------
Total fixed income securities $ 46,925 $ 2,482 $ (18) $ 49,389
======== ======= ========= ========
</TABLE>
F-8
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
Scheduled maturities
The scheduled maturities for fixed income securities are as follows at December
31, 1997:
<TABLE>
<CAPTION>
Amortized Fair
Cost Value
--------- -----
<S> <C> <C>
Due in one year or less $ 400 $ 400
Due after one year through five years 3,838 3,877
Due after five years through ten years 33,245 35,102
Due after ten years 13,068 14,990
----------- ------------
50,551 54,369
Mortgage-backed securities 30,818 31,874
----------- ------------
Total $ 81,369 $ 86,243
=========== ============
</TABLE>
Actual maturities may differ from those scheduled as a result of prepayments by
the issuers.
<TABLE>
<CAPTION>
Net investment income
Year Ended December 31, 1997 1996 1995
----------------------- ---- ---- ----
<S> <C> <C> <C>
Fixed income securities $ 5,014 $ 3,478 $ 3,850
Short-term investments 231 126 113
Participation in Separate Accounts 161 232 69
-------------- -------------- --------------
Investment income, before expense 5,406 3,836 4,032
Investment expense 102 62 36
-------------- -------------- --------------
Net investment income $ 5,304 $ 3,774 $ 3,996
============== ============== ==============
</TABLE>
Realized capital gains and losses
<TABLE>
<CAPTION>
Year Ended December 31, 1997 1996 1995
----------------------- ---- ---- ----
<S> <C> <C> <C>
Fixed income securities $ (61) $ - $ 459
Short-term investments 6 - -
Participation in Separate Accounts 3,515 - -
------------- ------------- -------------
Realized capital gains and losses 3,460 - 459
Income taxes (1,211) - (161)
------------- ------------- -------------
Realized capital gains and losses,
after tax $ 2,249 $ - $ 298
============= ============= =============
</TABLE>
Excluding calls and prepayments, gross losses of $61 and gross gains of $459
were realized on sales of fixed income securities during 1997 and 1995,
respectively.
F-9
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
Unrealized net capital gains
Unrealized net capital gains on fixed income securities included in
shareholder's equity at December 31, 1997 are as follows:
<TABLE>
<CAPTION>
Cost/ Unrealized
Amortized Fair Net
Cost Value Gains
--------- ----- -----------
<S> <C> <C> <C>
Fixed income securities $ 81,369 $ 86,243 $ 4,874
Deferred income taxes ======== ======== (1,706)
-------
Unrealized net capital gains $ 3,168
=======
</TABLE>
Change in unrealized net capital gains
<TABLE>
<CAPTION>
Year Ended December 31, 1997 1996 1995
- ----------------------- ---- ---- ----
<S> <C> <C> <C>
Fixed income securities $ 2,410 $ (2,239) $ 6,423
Participation in Separate Accounts (1,829) 1,368 461
Deferred income taxes (203) 304 (2,409)
------------- ------------- -------------
Increase (decrease) in unrealized net capital gains $ 378 $ (567) $ 4,475
============= ============== =============
</TABLE>
Securities on deposit
At December 31, 1997, fixed income securities with a carrying value of
$10,108 were on deposit with regulatory authorities as required by law.
5. Financial Instruments
In the normal course of business, the Company invests in various financial
assets and incurs various financial liabilities. The fair value estimates of
financial instruments presented below are not necessarily indicative of the
amounts the Company might pay or receive in actual market transactions.
Potential taxes and other transaction costs have not been considered in
estimating fair value. The disclosures that follow do not reflect the fair value
of the Company as a whole since a number of the Company's significant assets
(including reinsurance recoverable) and liabilities (including deferred income
taxes) are not considered financial instruments and are not carried at fair
value. Other assets and liabilities considered financial instruments, such as
accrued investment income, are generally of a short-term nature. It is assumed
that their carrying value approximates fair value.
F-10
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
Financial assets
The carrying value and fair value of financial assets at December 31, are as
follows:
<TABLE>
<CAPTION>
1997 1996
---- ----
Carrying Fair Carrying Fair
Value Value Value Value
-------- ----- -------- -----
<S> <C> <C> <C> <C>
Fixed income securities $ 86,243 $ 86,243 $ 49,389 $ 49,389
Short-term investments 4,231 4,231 1,287 1,287
Separate Accounts 620,535 620,535 272,420 272,420
</TABLE>
Fair values for fixed income securities are based on quoted market prices.
Short-term investments are highly liquid investments with maturities of less
than one year whose carrying value approximates fair value.
Separate Accounts assets are carried in the statements of financial position at
fair value.
Financial liabilities
The carrying value and fair value of financial liabilities at December 31, are
as follows:
<TABLE>
<CAPTION>
1997 1996
---- ----
Carrying Fair Carrying Fair
Value Value Value Value
-------- ----- -------- -----
<S> <C> <C> <C> <C>
Contractholder funds on
investment contracts $ 2,636,331 $ 2,492,095 $ 2,059,642 $ 1,949,329
Separate Accounts 620,535 620,535 260,290 260,290
</TABLE>
The fair value of contractholder funds on investment contracts is based on the
terms of the underlying contracts. Reserves on investment contracts with no
stated maturities (single premium and flexible premium deferred annuities) are
valued at the account balance less surrender charges. The fair value of
immediate annuities and annuities without life contingencies with fixed terms is
estimated using discounted cash flow calculations based on interest rates
currently offered for contracts with similar terms and durations. Separate
Accounts liabilities are carried at the fair value of the underlying assets.
F-11
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
6. Income Taxes
For 1996 and 1995, the Company filed a separate federal income tax return. The
Company will join the Corporation and its other eligible domestic subsidiaries
in the filing of a consolidated federal income tax return (the "Allstate Group")
for 1997 and is party to a federal income tax allocation agreement (the "Tax
Sharing Agreement"). Under the Tax Sharing Agreement, the Company paid to or
received from the Corporation the amount, if any, by which the Allstate Group's
federal income tax liability was affected by virtue of inclusion of the Company
in the consolidated federal income tax return. Effectively, this results in the
Company's annual income tax provision being computed, with adjustments, as if
the Company filed a separate return.
Prior to the Distribution, the Corporation and all of its eligible domestic
subsidiaries, including the Company, joined with Sears and its domestic business
units (the "Sears Group") in the filing of a consolidated federal income tax
return (the "Sears Tax Group") and were parties to a federal income tax
allocation agreement (the "Sears Tax Sharing Agreement"). Under the Sears Tax
Sharing Agreement, the Company, through the Corporation, paid to or received
from the Sears Group the amount, if any, by which the Sears Tax Group's federal
income tax liability was affected by virtue of inclusion of the Company in the
consolidated federal income tax return. Effectively, this resulted in the
Company's annual income tax provision being computed as if the Allstate Group
filed a separate consolidated return, except that items such as net operating
losses, capital losses or similar items, which might not be recognized in a
separate return, were allocated according to the Sears Tax Sharing Agreement.
The Allstate Group and Sears Group have entered into an agreement which governs
their respective rights and obligations with respect to federal income taxes for
all periods prior to the Distribution ("Consolidated Tax Years"). The agreement
provides that all Consolidated Tax Years will continue to be governed by the
Sears Tax Sharing Agreement with respect to the Allstate Group's federal income
tax liability.
The components of the deferred income tax liability at December 31, are as
follows:
<TABLE>
<CAPTION>
1997 1996
---- ----
<S> <C> <C>
Unrealized net capital gains on fixed income securities $ 1,706 $ 1,503
Difference in tax bases of investments 66 25
------------- -------------
Total deferred liability $ 1,772 $ 1,528
============= =============
</TABLE>
F-12
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
($ in thousands)
The components of income tax expense for the year ended December 31, are as
follows:
<TABLE>
<CAPTION>
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Current $ 3,037 $ 1,335 $ 1,615
Deferred 41 4 (39)
------- ------- -------
Total income tax expense $ 3,078 $ 1,339 $ 1,576
======= ======= =======
</TABLE>
The Company paid income taxes of $2,839, $2,446 and $866 in 1997, 1996 and 1995,
respectively.
A reconciliation of the statutory federal income tax rate to the effective
income tax rate on income from operations for the year ended December 31, is as
follows:
<TABLE>
<CAPTION>
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Statutory federal income tax rate 35.0% 35.0% 35.0%
Other .1 .5 .4
---- ---- ----
Effective federal income tax rate 35.1% 35.5% 35.4%
==== ==== ====
</TABLE>
F-13
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
($ in thousands)
7. Statutory Financial Information
The following tables reconcile net income for the year ended December 31, and
shareholder's equity at December 31, as reported herein in conformity with
generally accepted accounting principles with statutory net income and capital
and surplus, determined in accordance with statutory accounting practices
prescribed or permitted by insurance regulatory authorities:
<TABLE>
<CAPTION>
Net Income
----------
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Balance per generally accepted accounting principles $ 5,686 $ 2,435 $ 2,879
Deferred income taxes 41 4 (39)
Unrealized gain on participation in
Separate Accounts (1,829) 1,368 -
Statutory investment reserves 93 35 (279)
Other (354) (85) 108
----------- ------------ ------------
Balance per statutory accounting practices $ 3,637 $ 3,757 $ 2,669
=========== ============ ============
Shareholder's Equity
--------------------
1997 1996
---- ----
Balance per generally accepted accounting principles $ 87,944 $ 81,880
Deferred income taxes 1,772 1,528
Unrealized gain/loss on fixed income securities (4,874) (2,464)
Non-admitted assets (86) (850)
Statutory investment reserves 958 (2,282)
Other (3,114) (2,118)
---------- ------------
Balance per statutory accounting practices $ 82,600 $ 75,694
========== ============
</TABLE>
Permitted statutory accounting practices
The Company prepares its statutory financial statements in accordance with
accounting principles and practices prescribed or permitted by the Illinois
Department of Insurance. Prescribed statutory accounting practices include a
variety of publications of the National Association of Insurance Commissioners
("NAIC"), as well as state laws, regulations and general administrative rules.
Permitted statutory accounting practices encompass all accounting practices not
so prescribed. The Company does not follow any permitted statutory accounting
practices that have a material effect on statutory surplus, statutory net income
or risk-based capital.
Final approval of the NAIC's proposed "Comprehensive Guide" on statutory
accounting principles is expected in early 1998. The requirements may be
effective as early as January 1, 1999, and are not expected to have a material
impact on statutory surplus of the Company.
Dividends
The ability of the Company to pay dividends is dependent on business conditions,
income, cash requirements of the Company and other relevant factors. The payment
of shareholder dividends by insurance companies without the prior approval of
the state insurance regulator is limited to formula amounts based on net income
and capital and surplus, determined in accordance with statutory accounting
practices, as well as the timing and amount of dividends paid in the preceding
twelve months. The maximum amount of dividends that the Company can distribute
during 1998 without prior approval of the Illinois Department of Insurance is
$8,050.
F-14
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
SCHEDULE IV--REINSURANCE
($ in thousands)
<TABLE>
<CAPTION>
Gross Net
Year Ended December 31, 1997 amount Ceded amount
- ---------------------------- --------- ------------ --------
<S> <C> <C> <C>
Life insurance in force $ 4,095 $ 4,095 $ -
================== ================== ==================
Premiums and contract charges:
Life and annuities $ 11,641 $ 11,641 $ -
================== ================== ==================
Gross Net
Year Ended December 31, 1996 amount Ceded amount
- ---------------------------- --------- ------------ --------
Life insurance in force $ 2,436 $ 2,436 $ -
================== ================== ==================
Premiums and contract charges:
Life and annuities $ 4,254 $ 4,254 $ -
================== =================== ==================
Gross Net
Year Ended December 31, 1995 amount Ceded amount
- ---------------------------- --------- ------------ --------
Life insurance in force $ 1,250 $ 1,250 $ -
================== ================== ==================
Premiums and contract charges:
Life and annuities $ 6,571 $ 6,571 $ -
================== ================== ==================
</TABLE>
F-15
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF FINANCIAL POSITION
<TABLE>
<CAPTION>
<S> <C> <C>
June 30, December 31,
($ in thousands) 1998 1997
----------------- ----------------
(Unaudited)
ASSETS
Investments
Fixed income securities, at fair value
(amortized cost $87,553 and $81,369) $ 93,021 $ 86,243
Short-term 1,126 4,231
------------ ------------
Total investments 94,147 90,474
Reinsurance recoverable from Allstate
Life Insurance Company 2,843,210 2,637,983
Other assets 2,704 2,549
Separate Accounts 849,776 620,535
------------ ------------
Total assets $ 3,789,837 $ 3,351,541
============ ============
LIABILITIES
Contractholder funds $ 2,843,210 $ 2,637,983
Income taxes payable 883 609
Deferred income taxes 2,195 1,772
Net payable to affiliates 3,381 2,698
Separate Accounts 849,776 620,535
------------ ------------
Total liabilities 3,699,445 3,263,597
------------ ------------
Commitments and Contingent Liabilities (Note 4)
SHAREHOLDER'S EQUITY
Common stock, $500 par value, 4,200 shares authorized,
issued, and outstanding 2,100 2,100
Additional capital paid-in 69,641 69,641
Retained income 15,097 13,035
Accumulated other comprehensive income:
Unrealized net capital gains 3,554 3,168
------------ ------------
Total accumulated other comprehensive income 3,554 3,168
------------ ------------
Total shareholder's equity 90,392 87,944
------------ ------------
Total liabilities and shareholder's equity $ 3,789,837 $ 3,351,541
============ ============
See notes to financial statements.
</TABLE>
F-16
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
----------------------------------- -----------------------------------
($ in thousands) 1998 1997 1998 1997
---------------- --------------- --------------- ---------------
(Unaudited)
REVENUES
<S> <C> <C> <C> <C>
Net investment income $ 1,541 $ 1,292 $ 3,127 $ 2,534
Realized capital gains and losses - 1,177 - 1,184
-------- -------- -------- ---------
INCOME BEFORE INCOME TAX
EXPENSE 1,541 2,469 3,127 3,718
INCOME TAX EXPENSE 542 866 1,065 1,307
-------- -------- -------- ---------
NET INCOME $ 999 $ 1,603 $ 2,062 $ 2,411
======== ======== ======== =========
</TABLE>
See notes to financial statements.
F-17
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six months ended
June 30,
-------------------------------------
($ in thousands) 1998 1997
---------------- -----------------
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income $ 2,062 $ 2,411
Adjustments to reconcile net income to net cash
provided by operating activities:
Realized capital gains and losses - (1,184)
Change in deferred income taxes 274 5
Changes in other operating assets and liabilities 747 (3,375)
---------- -----------
Net cash provided by (used in) operating activities 3,083 (2,143)
---------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed income securities
Proceeds from sales - 1,405
Investment collections 3,505 1,091
Investment purchases (9,693) (23,572)
Change in short-term investments, net 3,105 (1,247)
Participation in Separate Accounts - 4,652
---------- -----------
Net cash used in investing activities (3,083) (17,671)
---------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Capital contribution - 20,000
---------- -----------
Net cash provided by financing activities - 20,000
---------- -----------
NET INCREASE IN CASH - 186
CASH AT BEGINNING OF PERIOD - -
---------- -----------
CASH AT END OF PERIOD $ - $ 186
========== ===========
</TABLE>
See notes to financial statements.
F-18
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
The accompanying financial statements include the accounts of
Glenbrook Life and Annuity Company (the "Company") a wholly owned
subsidiary of Allstate Life Insurance Company ("ALIC"), which is wholly
owned by Allstate Insurance Company, a wholly owned subsidiary of The
Allstate Corporation (the "Corporation").
The financial statements and notes as of June 30, 1998 and for the
three-month and six-month periods ended June 30, 1998 and 1997 are
unaudited. The interim financial statements reflect all adjustments
(consisting only of normal recurring accruals) which are, in the opinion of
management, necessary for the fair presentation of the financial position,
results of operations and cash flows for the interim periods. These
financial statements and notes should be read in conjunction with the
financial statements and notes thereto included in the Glenbrook Life and
Annuity Company Annual Report on Form 10-K for 1997. The results of
operations for the interim period should not be considered indicative of
results to be expected for the full year.
Effective January 1, 1998, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income."
Comprehensive income is a measurement of certain changes in shareholder's
equity that result from transactions and other economic events other than
transactions with shareholders. For the Company, these consist of changes
in unrealized gains and losses of the investment portfolio. These amounts,
presented as other comprehensive income, net of related taxes, are added to
net income which results in comprehensive income. The required disclosures
are presented in Note 3.
In March 1998, the Accounting Standards Executive Committee of the
American Institute of Certified Public Accountants issued Statement of
Position ("SOP") 98-1, "Accounting for the Costs of Computer Software
Developed or Obtained for Internal Use." The SOP provides guidance on
accounting for the costs of computer software developed or obtained for
internal use. Specifically, certain external, payroll and payroll related
costs should be capitalized during the application development stage of a
software development project and depreciated over the computer software's
useful life. The Company has adopted the SOP effective January 1, 1998.
2. Reinsurance
The Company and ALIC entered into a reinsurance agreement effective
June 5, 1992. All business issued subsequent to that date is ceded to ALIC.
Life insurance in force prior to that date is ceded to non-affiliated
reinsurers. Contract charges, credited interest, policy benefits and
certain expenses are ceded to ALIC and reflected net of such cessions in
the statements of operations. The amounts shown in the Company's statements
of operations relate to the investment of those assets of the Company that
are not transferred to ALIC under the reinsurance agreement. Reinsurance
recoverable and contractholder funds are reported separately in the
statements of financial position. The Company continues to have primary
liability as the direct insurer for risks reinsured.
F-19
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Investment income earned on the assets which support contractholder
funds is not included in the Company's financial statements as those assets
are owned and managed by ALIC under the terms of reinsurance agreements.
The following amounts were ceded to ALIC under the reinsurance agreements.
<TABLE>
<CAPTION>
($ in thousands) Three months ended Six months ended
June 30, June 30,
------------------------------- -------------------------------
1998 1997 1998 1997
------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
Contract charges $ 5,081 $ 2,559 $ 9,188 $ 4,621
Credited interest, policy benefits
and expenses 48,319 41,450 94,602 79,063
</TABLE>
3. Comprehensive Income
The components of other comprehensive income on a pretax and after-tax
basis are as follows:
<TABLE>
<CAPTION>
Three months ended June 30,
---------------------------------------------------------------------------
($ in thousands) 1998 1997
---------------------------------- --------------------------------------
Income Income
tax After- tax After-
Pretax effect tax Pretax effect tax
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Unrealized capital gains and losses:
Unrealized holding gains
(losses) arising during
the period $ 753 $ (264) $ 489 $ 2,995 $ (1,049) $ 1,946
Less: reclassification adjust-
ment for realized net
capital gains included in
net income - - - 1,177 (412) 765
------- --------- -------- ---------- ---------- ----------
Other comprehensive income $ 753 $ (264) $ 489 $ 1,818 $ (637) $ 1,181
======= ========= -------- ========== ========== ----------
Net income 999 1,603
-------- ----------
Comprehensive income $ 1,488 $ 2,784
======== ==========
</TABLE>
F-20
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended June 30,
---------------------------------------------------------------------------
($ in thousands) 1998 1997
---------------------------------- --------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Income Income
tax After- tax After-
Pretax effect tax Pretax effect tax
------ ------ ------ ------ ------ ------
Unrealized capital gains and losses:
Unrealized holding gains
(losses) arising during
the period $ 595 $ (209) $ 386 $ 829 $ (290) $ 539
Less: reclassification adjust-
ment for realized net
capital gains included in
net income - - - 1,184 (414) 770
------- -------- -------- --------- --------- ---------
Other comprehensive income $ 595 $ (209) $ 386 $ (355) $ 124 $ (231)
======= ======== -------- ========= ========= ---------
Net income 2,062 2,411
-------- ---------
Comprehensive income $ 2,448 $ 2,180
======== =========
</TABLE>
4. Regulation and Legal Proceedings
The Company's business is subject to the effects of a changing social,
economic and regulatory environment. Public and regulatory initiatives have
varied and have included employee benefit regulation, removal of barriers
preventing banks from engaging in the securities and insurance business, tax law
changes affecting the taxation of insurance companies, the tax treatment of
insurance products and its impact on the relative desirability of various
personal investment vehicles, and proposed legislation to prohibit the use of
gender in determining insurance rates and benefits. The ultimate changes and
eventual effects, if any, of these initiatives are uncertain.
From time to time the Company is involved in pending and threatened
litigation in the normal course of its business in which claims for monetary
damages are asserted. In the opinion of management, the ultimate liability, if
any, arising from such pending or threatened litigation is not expected to have
a material effect on the results of operations, liquidity or financial position
of the Company.
F-21
<PAGE>
APPENDIX A
MARKET VALUE ADJUSTMENT
The Market Value Adjustment is based on the following:
I = the Treasury Rate for a maturity equal to the Sub-account's Guarantee Period
for the week preceding the establishment of the Sub-account.
N = the number of whole and partial years from the date we receive the
withdrawal, transfer, or death benefit request, or from the Payout Start Date to
the end of the Sub-account's Guarantee Period.
J = the Treasury Rate for a maturity equal to the Sub-account's Guarantee Period
for the week preceding the receipt of the withdrawal request, transfer request,
death benefit request, or income payment request. If a Note with a maturity of
the original guarantee period is not available, a weighted average will be used.
Treasury Rate means the U.S. Treasury Note Constant Maturity yield as reported
in Federal Reserve Bulletin Release H.15.
The Market Value Adjustment factor is determined from the following formula:
.9* (I-J)* N
Any transfer, withdrawal in excess of the free withdrawal amount, death benefit
or amount applied to an Income Plan from a Sub-account of the Guaranteed
Maturity Fixed Account will be multiplied by the Market Value Adjustment factor
to determine the Market Value Adjustment.
ILLUSTRATION
EXAMPLE OF MARKET VALUE ADJUSTMENT
Purchase Payment: $10,000
Guarantee Period: 5 years
Interest Rate: 4.50%
Full Withdrawal: End of Contract Year 3
NOTE: This illustration assumes that premium taxes are not applicable.
EXAMPLE 1: (ASSUMES DECLINING INTEREST RATES)
Step 1: Calculate Account Value at End of Contract Year 3:
= 10,000.00 * (1.045) = $11,411.66
A-1
<PAGE>
Step 2: Calculate the Free Withdrawal Amount:
= .15 * (10,000.00) = $1,500.00
Step 3: Calculate the Withdrawal Charge:
= .05 * (10,000.00 - 1,500.00) = $425.00
Step 4: Calculate the Market Value Adjustment:
I = 4.50%
J = 4.20%
N = 730 days = 2
365 days
Market Value Adjustment Factor: .9 * (I-J) * N
= .9 * (.045 - .042) * 2 = .0054
Market Value Adjustment = Factor * Amount Subject to Market Value Adjustment:
= .0054 * (11,411.66 - 1,500) = $53.52
Step 5: Calculate The Amount Received by Customers as a Result of a Full
Withdrawal at the end of Contract Year 3:
= 11,411.66 - 425.00 + 53.52 = $11,040.18
EXAMPLE 2: (ASSUMES RISING INTEREST RATES)
Step 1: Calculate Account Value at End of Contract Year 3:
= 10,000.00 * (1.045) = $11,411.66
Step 2: Calculate the Free Withdrawal Amount:
= .15 * (10,000.00) = $1,500.00
Step 3: Calculate the Withdrawal Charge:
= .05 * (10,000.00 - 1,500.00) = $425.00
A-2
<PAGE>
Step 4: Calculate the Market Value Adjustment:
I = 4.5%
J = 4.8%
N = 730 days = 2
365 days
Market Value Adjustment Factor: .9 * (I-J) * N
= .9 * (.045 - .048) * (2) = -.0054
Market Value Adjustment = Factor * Amount Subject to Market Value Adjustment
= -.0054 * (11,411.66 - 1,500) = -53.52
Step 5: Calculate The Net Withdrawal Value at End of Contract Year 3:
= 11,411.66 - 425.00 - 53.52 = $10,933.14
A-3
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION: TABLE OF CONTENTS
Additions, Deletions or Substitutions of Investments
Reinvestment
The Contract
Purchase of Contracts
Performance Data
Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers)
Premium Taxes
Tax Reserves
Income Payments
Calculation of Variable Annuity Unit Values
General Matters
Incontestability
Settlements
Safekeeping of the Variable Account's Assets
Federal Tax Matters
Introduction
Taxation of Glenbrook Life and Annuity Company
Exceptions to the Non-Natural Owner Rule
IRS Required Distribution at Death Rules
Qualified Plans
Types of Qualified Plans
Variable Account Financial Statements
B-1
<PAGE>
ORDER FORM
Please send me a copy of the most recent Statement of Additional Information for
the Glenbrook Provider Variable Annuity.
(Date) (Name)
(Street Address)
(City) (State) (Zip Code)
Send to: Glenbrook Life and Annuity Company Post Office Box 94042 Palatine,
Illinois 60094-4042 Attention: Customer Service Unit
B-2
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
OFFERED BY
GLENBROOK LIFE AND ANNUITY COMPANY
POST OFFICE BOX 94042
PALATINE, IL 60094-4042
1-(800)755-5275
INDIVIDUAL AND GROUP
FLEXIBLE PREMIUM DEFERRED
VARIABLE ANNUITY CONTRACTS
This Statement of Additional Information supplements the information in the
prospectus for the Individual and Group Flexible Premium Deferred Variable
Annuity Contract offered by Glenbrook Life and Annuity Company ("Company"), a
wholly owned subsidiary of Allstate Life Insurance Company. The Contract is
primarily designed to aid individuals in long-term financial planning and it can
be used for retirement planning regardless of whether the plan qualifies for
special federal income tax treatment. The prospectus may be obtained from
Glenbrook Life and Annuity Company by writing or calling the address or
telephone number listed above.
THIS STATEMENT OF ADDITIONAL INFORMATION
IS NOT A PROSPECTUS AND SHOULD BE READ ONLY
IN CONJUNCTION WITH THE PROSPECTUS
FOR THE CONTRACT
The prospectus, dated November __, 1998, has been filed with the Securities and
Exchange Commission
DATED NOVEMBER __, 1998
<PAGE>
TABLE OF CONTENTS
PAGE
Additions, Deletions or Substitutions of Investments......... 3
Reinvestment................................................. 3
The Contract................................................. 3
Purchase of Contracts........................................ 3
Performance Data............................................. 3
Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers). 5
Premium Taxes................................................ 6
Tax Reserves................................................. 6
Income Payments.............................................. 6
Calculation of Variable Annuity Unit Values.................. 6
General Matters.............................................. 6
Incontestability............................................. 6
Settlements.................................................. 6
Safekeeping of the Variable Account's Assets................. 7
Federal Tax Matters.......................................... 7
Introduction................................................. 7
Taxation of Glenbrook Life and Annuity Company............... 7
Exceptions to the Non-Natural Owner Rule..................... 7
IRS Required Distribution at Death Rules..................... 7
Qualified Plans.............................................. 8
Types of Qualified Plans..................................... 8
Variable Account Financial Statements........................ 9
<PAGE>
ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS
The Company retains the right, subject to any applicable law, to make additions
to, deletions from or substitutions for the Fund shares held by any Sub-account
of the Variable Account. The Company reserves the right to eliminate the shares
of any of the portfolios and to substitute shares of another portfolio of a
Fund, or of another open-end, registered investment company, if the shares of
the Fund are no longer available for investment, or if, in the Company's
judgment, investment in any Fund would become inappropriate in view of the
purposes of the Variable Account. Substitutions of shares attributable to an
Owner's interest in a Sub-account will not be made until the Owner has been
notified of the change, and until the Securities and Exchange Commission has
approved the change, to the extent such notification and approval is required by
the Investment Company Act of 1940. Nothing contained in this Statement of
Additional Information shall prevent the Variable Account from purchasing other
securities for other series or classes of contracts, or from effecting a
conversion between series or classes of contracts on the basis of requests made
by Owners.
The Company may also establish additional Sub-accounts or series of Sub-accounts
of the Variable Account. Each additional Sub-account would purchase shares in a
new portfolio of a Fund or in another mutual fund. New Sub-accounts may be
established when, in the sole discretion of the Company, marketing needs or
investment conditions warrant. Any new Sub-accounts offered in conjunction with
the Contract will be made available to existing Owners on a basis to be
determined by the Company. The Company may also eliminate one or more
Sub-accounts if, in its sole discretion, marketing, tax or investment conditions
so warrant.
In the event of any such substitution or change, the Company may, by appropriate
endorsement, make such changes in the Contract as may be necessary or
appropriate to reflect such substitution or change. If deemed to be in the best
interests of persons having voting rights under the policies, the Variable
Account may be operated as a management company under the Investment Company Act
of 1940 or it may be deregistered under such Act in the event such registration
is no longer required.
REINVESTMENT
All dividends and capital gains distributions from the Funds are automatically
reinvested in shares of the distributing Fund at their net asset value.
THE CONTRACT
Purchase of Contracts
- ---------------------
The Contracts are offered to the public through brokers as well as banks
licensed under the federal securities laws and state insurance laws. The
Contracts are distributed through the principal underwriter for the Variable
Account, Allstate Life Financial Services, Inc., an affiliate of Glenbrook Life
and Annuity Company. The offering of the Contracts is continuous and the Company
does not anticipate discontinuing the offering of the Contracts. However, the
Company reserves the right to discontinue the offering of the Contracts.
Performance Data
- ----------------
From time to time the Variable Account may publish advertisements containing
performance data relating to its Sub-accounts. The performance data for the
Sub-accounts (other than for the Money Market Sub-account) will always be
accompanied by total return quotations. Performance figures used by the Variable
Account are based on actual historical performance of its Sub-accounts for
specified periods, and the figures are not intended to indicate future
performance.
Standardized Total Returns
A Sub-account's "average annual total return" represents an annualization of the
Sub-account's total return over a particular period and is computed by finding
the annual percentage rate which, when compounded annually, will accumulate a
hypothetical $1,000 purchase payment to the redeemable value at the end of the
one, five or ten year period, or for a period from the date of commencement of
the Sub-account's operations, if shorter than any of the foregoing. The average
annual total return is obtained by dividing the ending redeemable value, after
deductions for any withdrawal charges or contract maintenance charges imposed on
the Contracts by the Variable Account, by the initial hypothetical $1,000
purchase payment, taking the "n"th root of the quotient (where "n" is the number
of years in the period) and subtracting 1 from the result.
The withdrawal charges assessed upon redemption are computed as follows: the
free withdrawal amount is not assessed a withdrawal charge. Withdrawal charges
are charged on the amount of redemption equal to the purchase payment, reduced
by the amount of the free withdrawal amount, if any. The remaining amount of the
redemption, if any, is not assessed a withdrawal charge. The withdrawal charge
schedule specifies rates based on the number of complete years since each
purchase payment was made. The contract maintenance charge ($35 per contract)
used in the total return calculation is normally prorated using the following
method: The total amount of annual Contract fees collected during the year is
divided by the total average net assets of all the Sub-accounts. The resulting
percentage is then multiplied by the ending Contract Value.
The Contracts described in the Prospectus to which this Statement relates were
first offered on November __, 1998. Accordingly, no standardized performance
relating to the Contracts is shown.
Non-Standardized Total Returns
From time to time, sales literature or advertisements may also quote average
annual total returns that do not reflect the Withdrawal Charge. These are
calculated in exactly the same way as the average annual total returns described
above, except that the ending redeemable value of the hypothetical account for
the period is replaced with an ending value for the period that does not take
into account any charges on amounts surrendered. In addition, the Variable
Account may advertise the total return over different periods of time by means
of aggregate, average, year-by-year or other types of total return figures. Such
calculations would not reflect deductions for withdrawal charges which may be
imposed on the Contracts by the Variable Account which, if reflected, would
reduce the performance quoted. The formula for computing such total return
quotations involves a per unit change calculation. This calculation is based on
the Accumulation Unit value at the end of the defined period divided by the
Accumulation Unit value at the beginning of such period, minus 1. The periods
included in such advertisements are "year-to- date" (prior calendar year end to
the day of the advertisement); "year to most recent quarter" (prior calendar
year end to the end of the most recent quarter); "the prior calendar year"; "
'n' most recent Calendar Years"; and "Inception (commencement of the
Sub-account's operation) to date" (day of the advertisement).
The annualized non-standardized total returns for the Sub-accounts as of the
year ended 12/31/97 are presented below:
Historical Total Returns
The Variable Account may also disclose yield and total return for periods prior
to the date that the Variable Account commenced operations. For periods prior to
the date the Variable Account commenced operations, performance information for
the Sub-accounts will be calculated based on the performance of the underlying
Funds and the assumption that the Sub-accounts were in existence for the same
periods as those of the underlying Funds, with a level of charges equal to those
currently assessed against the Sub-accounts.
The annualized historical total returns for the Sub-accounts for various periods
ended 6/30/98 are presented below:
(Without Enhanced Death Benefit)
<TABLE>
<CAPTION>
ONE YEAR FIVE YEARS TEN YEARS INCEPTION (Portfolio start date)
---------- --------- ------------ ----------------
<S> <C> <C> <C> <C>
AIM V.I. Balanced Fund N/A N/A -21.34% 5/1/98
AIM V.I. Capital Appreciation Fund -48.21% 2.25% 2.70% 5/5/93
AIM V.I. Diversified Income Fund 4.39% 6.47% 6.56% 5/2/94
AIM V.I. Global Utilities Fund 16.38% N/A 13.74% 5/2/94
AIM V.I. Government Securities Fund 2.81% 3.70% 3.85% 5/5/93
AIM V.I. Growth Fund 23.89% 18.19% 18.60% 5/5/93
AIM V.I. Growth and Income Fund 16.67% N/A 20.36% 5/2/94
AIM V.I. High Yield Fund N/A N/A -26.65% 5/1/98
AIM V.I. International Equity Fund 7.28% 14.50% 13.72% 5/5/93
AIM V.I. Value Fund 19.71% 19.04% 19.94% 5/5/93
American Century VP International 18.52% N/A 13.43% 5/2/94
American Century VP Balanced 15.05% 11.78% 11.00% 5/1/91
Dreyfus Socially Responsible Growth 17.91% N/A 20.35% 10/7/93
Dreyfus Stock Index 23.07% 20.88% 15.65% 9/29/89
VIF Small Company Stock 8.62% N/A 12.45% 4/30/96
VIF Growth and Income 8.15% N/A 21.61% 5/2/94
VIF Money Market -1.39% 3.10% 3.63% 8/31/90
Fidelity VIP Growth 5.59% 14.52% 14.53% 10/9/86
Fidelity VIP II Contrafund 15.85% N/A 24.99% 1/3/95
Fidelity VIP High Income -4.73% 8.08% 9.76% 9/20/85
Fidelity VIP Equity-Income 7.62% 16.37% 13.43% 10/23/86
Goldman Sachs Growth and Income Fund N/A N/A -6.41% 1/12/98
Goldman Sachs CORE U.S. Equity Fund N/A N/A 19.26% 2/13/98
Goldman Sachs CORE Large Cap Growth Fund N/A N/A 19.26% 2/13/98
Goldman Sachs CORE Small Cap Equity Fund N/A N/A -1.41% 2/13/98
Goldman Sachs Capital Growth Fund N/A N/A -14.44% 4/30/98
Goldman Sachs Mid Cap Equity Fund N/A N/A -51.41% 4/30/98
Goldman Sachs International Equity Fund N/A N/A 31.96% 1/12/98
Goldman Sachs Global Income Fund N/A N/A -6.41% 1/12/98
Morgan Stanley Fixed Income 3.56% N/A 4.42% 1/2/97
Morgan Stanley Equity Growth 26.24% N/A 28.97% 1/2/97
Morgan Stanley Value 4.09% N/A 13.17% 1/2/97
Morgan Stanley Mid Cap Value 22.43% N/A 28.85% 1/2/97
Morgan Stanley U.S. Real Estate 1.98% N/A 4.10% 3/4/97
Morgan Stanley Global Equity 10.68% N/A 17.48% 1/2/97
Morgan Stanley International Magnum 2.10% N/A 12.60% 1/2/97
MFS Emerging Growth 27.02% N/A 24.95% 7/24/95
MFS Growth with Income 21.14% N/A 26.41% 10/9/95
MFS New Discovery N/A N/A -32.98% 4/29/98
Neuberger & Berman AMT Guardian N/A N/A 62.81% 11/3/97
Neuberger & Berman AMT Mid-Cap Growth N/A N/A 69.91% 11/3/97
Neuberger & Berman AMT Partners 13.60% N/A 20.87% 3/22/94
</TABLE>
(With Enhanced Death Benefit)
<TABLE>
<CAPTION>
ONE YEAR FIVE YEARS TEN YEARS INCEPTION (Portfolio start date)
---------- --------- ------------ ----------------
<S> <C> <C> <C> <C>
AIM V.I. Balanced Fund N/A N/A -21.52% 5/1/98
AIM V.I. Capital Appreciation Fund -47.69% 2.26% 2.70% 5/5/93
AIM V.I. Diversified Income Fund 4.15% 6.23% 6.32% 5/2/94
AIM V.I. Global Utilities Fund 16.11% N/A 13.49% 5/2/94
AIM V.I. Government Securities Fund 2.57% 3.47% 3.61% 5/5/93
AIM V.I. Growth Fund 23.60% 17.93% 18.34% 5/5/93
AIM V.I. Growth and Income Fund 16.41% N/A 20.09% 5/2/94
AIM V.I. High Yield Fund N/A N/A -26.82% 5/1/98
AIM V.I. International Equity Fund 7.03% 14.25% 13.47% 5/5/93
AIM V.I. Value Fund 19.44% 18.78% 19.68% 5/5/93
American Century VP International 18.25% N/A 13.17% 5/2/94
American Century VP Balanced 14.79% 11.53% 10.76% 5/1/91
Dreyfus Socially Responsible Growth 17.66% N/A 20.08% 10/7/93
Dreyfus Stock Index 22.78% 20.61% 15.40% 9/29/89
VIF Small Company Stock 8.37% N/A 12.20% 4/30/96
VIF Growth and Income 7.90% N/A 21.34% 5/2/94
VIF Money Market -1.61% 2.87% 3.40% 8/31/90
Fidelity VIP Growth 5.35% 14.26% 14.27% 10/9/86
Fidelity VIP II Contrafund 15.58% N/A 24.71% 1/3/95
Fidelity VIP High Income -4.95% 7.83% 9.52% 9/20/85
Fidelity VIP Equity-Income 7.37% 16.11% 13.18% 10/23/8
Goldman Sachs Growth and Income Fund N/A N/A -6.63% 1/12/98
Goldman Sachs CORE U.S. Equity Fund N/A N/A 18.98% 2/13/98
Goldman Sachs CORE Large Cap Growth Fund N/A N/A 18.98% 2/13/98
Goldman Sachs CORE Small Cap Equity Fund N/A N/A -1.64% 2/13/98
Goldman Sachs Capital Growth Fund N/A N/A -14.64% 4/30/98
Goldman Sachs Mid Cap Equity Fund N/A N/A -51.52% 4/30/98
Goldman Sachs International Equity Fund N/A N/A 31.66% 1/12/98
Goldman Sachs Global Income Fund N/A N/A -6.63% 1/12/98
Morgan Stanley Fixed Income 3.32% N/A 4.18% 1/2/97
Morgan Stanley Equity Growth 25.95% N/A 28.67% 1/2/97
Morgan Stanley Value 3.85% N/A 12.91% 1/2/97
Morgan Stanley Mid Cap Value 22.15% N/A 28.56% 1/2/97
Morgan Stanley U.S. Real Estate 1.74% N/A 3.86% 3/4/97
Morgan Stanley Global Equity 10.42% N/A 17.21% 1/2/97
Morgan Stanley International Magnum 1.87% N/A 12.34% 1/2/97
MFS Emerging Growth 26.73% N/A 24.67% 7/24/95
MFS Growth with Income 20.86% N/A 26.12% 10/9/95
MFS New Discovery N/A N/A -33.13% 4/29/98
Neuberger & Berman AMT Guardian N/A N/A 62.44% 11/3/97
Neuberger & Berman AMT Mid-Cap Growth N/A N/A 69.52% 11/3/97
Neuberger & Berman AMT Partners 13.34% N/A 20.60% 3/22/94
</TABLE>
(With Enhanced Death and Income Benefit Combination Rider)
<TABLE>
<CAPTION>
ONE YEAR FIVE YEARS TEN YEARS INCEPTION (Portfolio start date)
---------- --------- ------------ ----------------
<S> <C> <C> <C> <C>
AIM V.I. Balanced Fund N/A N/A -21.70% 5/1/98
AIM V.I. Capital Appreciation Fund -47.16% 2.26% 2.70% 5/5/93
AIM V.I. Diversified Income Fund 3.91% 5.99% 6.08% 5/2/94
AIM V.I. Global Utilities Fund 15.85% N/A 13.23% 5/2/94
AIM V.I. Government Securities Fund 2.34% 3.23% 3.38% 5/5/93
AIM V.I. Growth Fund 23.32% 17.66% 18.07% 5/5/93
AIM V.I. Growth and Income Fund 16.14% N/A 19.82% 5/2/94
AIM V.I. High Yield Fund N/A N/A -26.99% 5/1/98
AIM V.I. International Equity Fund 6.79% 13.99% 13.22 5/5/93
AIM V.I. Value Fund 19.16% 18.52% 19.41% 5/5/93
American Century VP International 17.98% N/A 12.92% 5/2/94
American Century VP Balanced 14.52% 11.28% 10.51% 5/1/91
Dreyfus Socially Responsible Growth 17.42% N/A 19.82% 10/7/93
Dreyfus Stock Index 22.50% 20.35% 15.15% 9/29/89
VIF Small Company Stock 8.12% N/A 11.95% 4/30/96
VIF Growth and Income 7.66% N/A 21.07% 5/2/94
VIF Money Market -1.84% 2.64% 3.18% 8/31/90
Fidelity VIP Growth 5.11% 14.01% 14.02% 10/9/86
Fidelity VIP II Contrafund 15.32% N/A 24.43% 1/3/95
Fidelity VIP High Income -5.17% 7.59% 9.28% 9/20/85
Fidelity VIP Equity-Income 7.13% 15.85% 12.93% 10/23/8
Goldman Sachs Growth and Income Fund N/A N/A -6.84% 1/12/98
Goldman Sachs CORE U.S. Equity Fund N/A N/A 18.71% 2/13/98
Goldman Sachs CORE Large Cap Growth Fund N/A N/A 18.71% 2/13/98
Goldman Sachs CORE Small Cap Equity Fund N/A N/A -1.87% 2/13/98
Goldman Sachs Capital Growth Fund N/A N/A -14.84% 4/30/98
Goldman Sachs Mid Cap Equity Fund N/A N/A -51.63% 4/30/98
Goldman Sachs International Equity Fund N/A N/A 31.36% 1/12/98
Goldman Sachs Global Income Fund N/A N/A -6.84% 1/12/98
Morgan Stanley Fixed Income 3.08% N/A 3.94% 1/2/97
Morgan Stanley Equity Growth 25.67% N/A 28.38% 1/2/97
Morgan Stanley Value 3.61% N/A 12.65% 1/2/97
Morgan Stanley Mid Cap Value 21.87% N/A 28.26% 1/2/97
Morgan Stanley U.S. Real Estate 1.51% N/A 3.62% 3/4/97
Morgan Stanley Global Equity 10.17% N/A 16.94% 1/2/97
Morgan Stanley International Magnum 1.63% N/A 12.09% 1/2/97
MFS Emerging Growth 26.44% N/A 24.39% 7/24/95
MFS Growth with Income 20.58% N/A 25.84% 10/9/95
MFS New Discovery N/A N/A -33.29% 4/29/98
Neuberger & Berman AMT Guardian N/A N/A 62.07% 11/3/97
Neuberger & Berman AMT Mid-Cap Growth N/A N/A 69.14% 11/3/97
Neuberger & Berman AMT Partners 13.08% N/A 20.34% 3/22/94
</TABLE>
* see corresponding inception dates in performance data without the enhanced
death benefit, immediately above this table.
The Variable Account may also advertise the performance of the Sub-accounts
relative to certain performance rankings and indexes compiled by independent
organizations, such as: (a) Lipper Analytical Services, Inc.; (b) the Standard &
Poor's 500 Composite Stock Price Index ("S & P 500"); (c) A.M. Best Company; (d)
Bank Rate Monitor; and (e) Morningstar.
Tax-Free Exchanges (1035 Exchanges, Rollovers and Transfers)
- ------------------------------------------------------------
The Company accepts purchase payments which are the proceeds of a Contract in a
transaction qualifying for a tax-free exchange under Section 1035 of the
Internal Revenue Code. Except as required by federal law in calculating the
basis of the Contract, the Company does not differentiate between Section 1035
purchase payments and non-Section 1035 purchase payments.
The Company also accepts "rollovers" and transfers from Contracts qualifying as
tax-sheltered annuities ("TSAs"), individual retirement annuities or accounts
("IRAs"), or any other Qualified Contract which is eligible to "rollover" into
an IRA. The Company differentiates among Non-Qualified Contracts, TSAs, IRAs and
other Qualified Contracts to the extent necessary to comply with federal tax
laws. For example, the Company restricts the assignment, transfer or pledge of
TSAs and IRAs so the Contracts will continue to qualify for special tax
treatment. An Owner contemplating any such exchange, rollover or transfer of a
Contract should contact a competent tax adviser with respect to the potential
effects of such a transaction.
Premium Taxes
- -------------
Applicable premium tax rates depend on the Owner's state of residency and the
insurance laws and status of the Company in those states where premium taxes are
incurred. Premium tax rates may be changed by legislation, administrative
interpretations or judicial acts.
Tax Reserves
- ------------
The Company does not establish capital gains tax reserves for any Sub-account
nor does it deduct charges for tax reserves because the Company believes that
capital gains attributable to the Variable Account will not be taxable. However,
the Company reserves the right to deduct charges to establish tax reserves for
potential taxes on realized or unrealized capital gains.
INCOME PAYMENTS
Calculation of Variable Annuity Unit Values
- -------------------------------------------
The amount of the first income payment is calculated by applying the Contract
Value allocated to each Variable Sub-account less any applicable premium tax
charge deducted at this time, to the income payment tables in the Contract. The
first variable annuity income payment is divided by the Sub-account's then
current annuity unit value to determine the number of annuity units upon which
later income payments will be based. Variable annuity income payments after the
first will be equal to the sum of the number of annuity units determined in this
manner for each Sub-account times the then current annuity unit value for each
respective Sub-account.
Annuity units in each variable Sub-account are valued separately and annuity
unit values will depend upon the investment experience of the particular
portfolios in which the Sub-account invests. The value of the annuity unit for
each variable Sub-account at the end of any Valuation Period is calculated by:
(a) multiplying the annuity unit Value at the end of the immediately preceding
Valuation Period by the Sub-account's net investment factor during the period;
and then (b) dividing the product by the sum of 1.0 plus the assumed investment
rate for the period. The assumed investment rate adjusts for the interest rate
assumed in the income payment tables used to determine the dollar amount of the
first variable annuity income payment, and is at an effective annual rate which
is disclosed in the Contract.
The amount of the first income payment paid under an income plan is determined
using the interest rate and mortality table disclosed in the Contract. Due to
judicial or legislative developments regarding the use of tables which do not
differentiate on the basis of sex, different annuity tables may be used.
GENERAL MATTERS
Incontestability
- ----------------
The Contract will not be contested after it is issued.
Settlements
- -----------
Due proof of the Owner(s) death (or Annuitant's death if there is a non-natural
Owner) must be received prior to settlement of a death claim.
Safekeeping of the Variable Account's Assets
- --------------------------------------------
The Company holds title to the assets of the Variable Account. The assets are
kept physically segregated and held separate and apart from the Company's
general corporate assets. Records are maintained of all purchases and
redemptions of the Portfolio shares held by each of the variable Sub-accounts.
The Funds do not issue certificates and, therefore, the Company holds the
Account's assets in open account in lieu of stock certificates. See the Funds'
prospectuses for a more complete description of the custodians of the Funds.
FEDERAL TAX MATTERS
Introduction
- ------------
THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. THE
COMPANY MAKES NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR
TRANSACTION INVOLVING A CONTRACT. Federal, state, local and other tax
consequences of ownership or receipt of distributions under an annuity contract
depend on the individual circumstances of each person. If you are concerned
about any tax consequences with regard to your individual circumstances, you
should consult a competent tax adviser.
Taxation of Glenbrook Life and Annuity Company
- -----------------------------------------------
The Company is taxed as a life insurance company under Part I of Subchapter L of
the Internal Revenue Code. Since the Variable Account is not an entity separate
from the Company, and its operations form a part of the Company, it will not be
taxed separately as a "Regulated Investment Company" under Subchapter M of the
Code. Investment income and realized capital gains of the Variable Account are
automatically applied to increase reserves under the contract. Under existing
federal income tax law, the Company believes that the Variable Account
investment income and capital gains will not be taxed to the extent that such
income and gains are applied to increase the reserves under the contract.
Accordingly, the Company does not anticipate that it will incur any federal
income tax liability attributable to the Variable Account, and therefore the
Company does not intend to make provisions for any such taxes. If the Company is
taxed on investment income or capital gains of the Variable Account, then the
Company may impose a charge against the Variable Account in order to make
provision for such taxes.
Exceptions to the Non-Natural Owner Rule
- ----------------------------------------
There are several exceptions to the general rule that contracts held by a
non-natural owner are not treated as annuity contracts for federal income tax
purposes. Contracts will generally be treated as held by a natural person if the
nominal owner is a trust or other entity which holds the contract as agent for a
natural person. However, this special exception will not apply in the case of an
employer who is the nominal owner of an annuity contract under a non-qualified
deferred compensation arrangement for its employees. Other exceptions to the
non-natural owner rule are: (1) contracts acquired by an estate of a decedent by
reason of the death of the decedent; (2) certain qualified contracts; (3)
contracts purchased by employers upon the termination of certain qualified
plans; (4) certain contracts used in connection with structured settlement
agreements, and (5) contracts purchased with a single premium when the annuity
starting date is no later than a year from purchase of the annuity and
substantially equal periodic payments are made, not less frequently than
annually, during the annuity period.
IRS Required Distribution at Death Rules
- ----------------------------------------
In order to be considered an annuity contract for federal income tax purposes,
an annuity contract must provide: (1) if any owner dies on or after the annuity
start date but before the entire interest in the contract has been distributed,
the remaining portion of such interest must be distributed at least as rapidly
as under the method of distribution being used as of the date of the owner's
death; (2) if any owner dies prior to the annuity start date, the entire
interest in the contract will be distributed within five years after the date of
the owner's death. These requirements are satisfied if any portion of the
owner's interest which is payable to (or for the benefit of) a designated
beneficiary is distributed over the life of such beneficiary (or over a period
not extending beyond the life expectancy of the beneficiary) and the
distributions begin within one year of the owner's death. If the owner's
designated beneficiary is the surviving spouse of the owner, the contract may be
continued with the surviving spouse as the new owner. If the owner of the
contract is a non-natural person, then the annuitant will be treated as the
owner for purposes of applying the distribution at death rules. In addition, a
change in the annuitant on a contract owned by a non-natural person will be
treated as the death of the owner.
Qualified Plans
- ---------------
This annuity contract may be used with several types of qualified plans. The tax
rules applicable to participants in such qualified plans vary according to the
type of plan and the terms and conditions of the plan itself. Adverse tax
consequences may result from excess contributions, premature distributions,
distributions that do not conform to specified commencement and minimum
distribution rules, excess distributions and in other circumstances. Owners and
participants under the plan and annuitants and beneficiaries under the contract
may be subject to the terms and conditions of the plan regardless of the terms
of the contract.
Types of Qualified Plans
- ------------------------
Individual Retirement Annuities
Section 408 of the Code permits eligible individuals to contribute to an
individual retirement program known as an Individual Retirement Annuity (IRA).
Individual Retirement Annuities are subject to limitations on the amount that
can be contributed and on the time when distributions may commence. Certain
distributions from other types of qualified plans may be "rolled over" on a
tax-deferred basis into an Individual Retirement Annuity. An IRA generally may
not provide life insurance, but it may provide a death benefit that equals the
greater of the premiums paid and the contract's cash value. The contract
provides a death benefit that in certain circumstances may exceed the greater of
the payments and the contract value. It is possible that the Death Benefit could
be viewed as violating the prohibition on investment in life insurance contracts
with the result that the Contract would not be viewed as satisfying the
requirements of an IRA.
Roth Individual Retirement Annuities
Section 408A of the Code permits eligible individuals to make nondeductible
contributions to an individual retirement program known as a Roth Individual
Retirement Annuity. Roth Individual Retirement Annuities are subject to
limitations on the amount that can be contributed and on the time when
distributions may commence. "Qualified distributions" from Roth Individual
Retirement Annuities are not includible in gross income. "Qualified
distributions" are any distributions made more than five taxable years after the
taxable year of the first contribution to the Roth Individual Retirement
Annuity, and which are made on or after the date the individual attains age 59
1/2, made to a beneficiary after the owner's death, attributable to the owner
being disabled or for a first time home purchase (first time home purchases are
subject to a lifetime limit of $10,000). "Nonqualified distributions" are
treated as made from contributions first and are includible in gross income to
the extent such distributions exceed the contributions made to the Roth
Individual Retirement Annuity. The taxable portion of a "nonqualified
distribution" may be subject to the 10% penalty tax on premature distributions.
Subject to certain limitations, a traditional Individual Retirement Account or
Annuity may be converted or "rolled over" to a Roth Individual Retirement
Annuity. The taxable portion of a conversion or rollover distribution is
includible in gross income, but is exempted from the 10% penalty tax on
premature distributions.
Simplified Employee Pension Plans
Section 408(k) of the Code allows employers to establish simplified employee
pension plans for their employees using the employees' individual retirement
annuities if certain criteria are met. Under these plans the employer may,
within specified limits, make deductible contributions on behalf of the
employees to their individual retirement annuities. Employers intending to use
the contract in connection with such plans should seek competent advice. In
particular, employers should consider that an IRA generally may not provide life
insurance, but it may provide a death benefit that equals the greater of the
premiums paid and the contract's cash value. The contract provides a death
benefit that in certain circumstances may exceed the greater of the payments and
the contract value. It is possible that the Death Benefit could be viewed as
violating the prohibition on investment in life insurance contracts with the
result that the Contract would not be viewed as satisfying the requirements of
an IRA.
Savings Incentive Match Plans for Employees (SIMPLE Plans)
Sections 408(p) and 401(k) of the Code allow employers with 100 or fewer
employees to establish SIMPLE retirement plans for their employees. SIMPLE plans
may be structured as a SIMPLE retirement account using an employee's IRA to hold
the assets or as a Section 401(k) qualified cash or deferred arrangement. In
general, a SIMPLE plan consists of a salary deferral program for eligible
employees and matching or nonelective contributions made by employers. Employers
intending to use the contract in conjunction with SIMPLE plans should seek
competent tax and legal advice.
Tax Sheltered Annuities
Section 403(b) of the Code permits public school employees and employees of
certain types of tax-exempt organizations (specified in Section 501(c)(3) of the
Code) to have their employers purchase annuity contracts for them, and subject
to certain limitations, to exclude the purchase payments from the employees'
gross income. An annuity contract used for a Section 403(b) plan must provide
that distributions attributable to salary reduction contributions made after
12/31/88, and all earnings on salary reduction contributions, may be made only
on or after the date the employee attains age 59 1/2, separates from service,
dies, becomes disabled or on the account of hardship (earnings on salary
reduction contributions may not be distributed for hardship). These limitations
do not apply to withdrawals where the Company is directed to transfer some or
all of the contract value to another 403(b) plan.
Corporate and Self-Employed Pension and Profit Sharing Plans
Sections 401(a) and 403(a) of the Code permit corporate employers to establish
various types of tax favored retirement plans for employees. The Self-Employed
Individuals Retirement Act of 1962, as amended, (commonly referred to as "H.R.
10" or "Keogh") permits self-employed individuals to establish tax favored
retirement plans for themselves and their employees. Such retirement plans may
permit the purchase of annuity contracts in order to provide benefits under the
plans.
State and Local Government and Tax-Exempt Organization
Deferred Compensation Plans
Section 457 of the Code permits employees of state and local governments and
tax-exempt organizations to defer a portion of their compensation without paying
current taxes. The employees must be participants in an eligible deferred
compensation plan. To the extent the contracts are used in connection with an
eligible plan, employees are considered general creditors of the employer and
the employer as owner of the contract has the sole right to the proceeds of the
contract. Generally, under the non-natural owner rules, such contracts are not
treated as annuity contracts for federal income tax purposes. Under these plans,
contributions made for the benefit of the employees will not be includible in
the employees' gross income until distributed from the plan. However, under a
457 plan all the compensation deferred under the plan must remain solely the
property of the employer, subject only to the claims of the employer's general
creditors, until such time as made available to the employee or a beneficiary.
VARIABLE ACCOUNT FINANCIAL STATEMENTS
The financial statements of the Glenbrook Life Multi-Manager Variable Account
are not included herein because the Variable Account had no material operations
for the year ended December 31, 1997. The financial statements of Glenbrook Life
and Annuity Company begin on Page F-1 of the Prospectus.
<PAGE>
PART C
OTHER INFORMATION
24a. FINANCIAL STATEMENTS
PART A: Glenbrook Life and Annuity Company Financial Statements and Financial
Statement Schedules are contained in Part A of this Registration Statement.
PART B: No audited financial statements of Glenbrook Life Multi-Manager Variable
Account are included herein because the Variable Account had no material
operations during the year ended December 31, 1997, and the incremental benefit
to contract holders of preparing such financial statements does not justify the
additional cost that would be incurred.
24b. EXHIBITS
The following exhibits:
The following exhibits correspond to those required by paragraph (b) of
Item 24 as to exhibits in Form N-4:
(1) Resolution of the Board of Directors of Glenbrook Life and Annuity
Company authorizing establishment of the Glenbrook Life Multi-Manager
Variable Account*
(2) Not Applicable
(3) Underwriting Agreement**
(4) (a) Specimen Contract**
(b) Contract Endorsement
(5) Application for a Contract**
(6) (a) Certificate of Incorporation of Glenbrook Life and Annuity
Company***
(b) By-laws of Glenbrook Life and Annuity Company***
(7) Reinsurance Agreement***
(8) Form of Participation Agreements**,*****
(9) Opinion and Consent of Michael J. Velotta, Vice President, Secretary
and General Counsel of Glenbrook Life and Annuity Company**
(10) (a) Consent of Accountants
(b) Consent of Attorneys
(11) Not applicable
(12) Not applicable
(13) Performance Data Calculations
(14) Not applicable
(15) Powers of Attorney ****
* Previously filed and incorporated herein by reference to Depositor's Form
N-4 Registration Statement No. 333-00999 dated February 12, 1996.
** Previously filed and incorporated herein by reference to Depositor's Form
N-4 Registration Statement No. 333-00999 dated August 22, 1996.
*** Previously filed and incorporated herein by reference to Depositor's Form
S-1 Registration Statement No. 333-07275 dated June 28, 1996.
**** Previously filed.
*****Goldman Sachs, Morgan Stanley and Neuberger & Berman Agreements filed
herewith.
<PAGE>
25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
Name and Principal Position and Office
Business Address With Depositor of the Trust
<S> <C>
Louis G. Lower, II Chairman of the Board and Chief Executive Officer and Director
Michael J. Velotta Vice President, Secretary, General Counsel and Director
Peter H. Heckman President, Chief Operating Officer and Director
Marla G. Friedman Vice President
Kevin R. Slawin Vice President and Director
James P. Zils Treasurer
Casey J. Sylla Chief Investment Officer
John R. Hunter Senior Vice President and Director
G. Craig Whitehead Senior Vice President and Director
Sarah R. Donahue Assistant Vice President
Emma M. Kalaidjian Assistant Secretary
Paul N. Kierig Assistant Secretary
Mary J. McGinn Assistant Secretary
Keith A. Hauschildt Assistant Vice President and Controller
Barry S. Paul Assistant Vice President
Robert N. Roeters Assistant Vice President
Nancy M. Bufalino Assistant Treasurer
C. Nelson Strom Assistant Vice President and Corporate Actuary
Patricia W. Wilson Assistant Treasurer
Brenda D. Sneed Assistant Secretary and Assistant General Counsel
Joanne M. Derrig Chief Compliance Officer and Assistant Secretary
</TABLE>
The principal business address of the foregoing officers and directors is 3100
Sanders Road, Northbrook, IL 60062
26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH DEPOSITOR OR REGISTRANT
See 10-K Commission File #1-11840, The Allstate Corporation.
27. NUMBER OF CONTRACT OWNERS
As of September 29, 1998:
93 - nonqualified 88 - qualified
28. INDEMNIFICATION
The by-laws of both Glenbrook Life and Annuity Company (Depositor) and Allstate
Life Financial Services, Inc. (Distributor), provide for the indemnification of
its Directors, Officers and Controlling Persons, against expenses, judgments,
fines and amounts paid in settlement as incurred by such person, if such person
acted properly. No indemnification shall be made in respect of any claim, issue
or matter as to which such person shall have been adjudged to be liable for
negligence or misconduct in the performance of a duty to the Company, unless a
court determines such person is entitled to such indemnity.
29a. RELATIONSHIP OF PRINCIPAL UNDERWRITER TO OTHER INVESTMENT COMPANIES
- Glenbrook Life and Annuity Company Separate Account A
- Glenbrook Life and Annuity Company Variable Annuity Account
- Allstate Life of New York Separate Account A
- Glenbrook Life Variable Life Separate Account A
- Glenbrook Life AIM Variable Life Separate Account A
<PAGE>
29b. PRINCIPAL UNDERWRITER
Name and Principal Business Allstate Life Financial
Address Of Each Such Person Services, Inc. ("ALFS")
Louis G. Lower, II Director
Kevin R. Slawin Director
Michael J. Velotta Director and Secretary
John R. Hunter President and Chief Executive Officer
Diane Bellas Vice President and Controller
Karen C. Gardner Vice President
Andrea J. Schur Vice President
Brent H. Hamann Vice President
James P. Zils Treasurer
Terry R. Young General Counsel and Assistant Secretary
Lisa A. Burnell Assistant Vice President and Compliance
Officer
Robert N. Roeters Assistant Vice President
Emma M. Kalaidjian Assistant Secretary
Brenda D. Sneed Assistant Secretary
Nancy M. Bufalino Assistant Treasurer
The principal address of ALFS is 3100 Sanders Road, Northbrook, Illinois
29c. COMPENSATION OF ALLSTATE LIFE FINANCIAL SERVICES, INC.
None
30. LOCATION OF ACCOUNTS AND RECORDS
The Depositor, Glenbrook Life and Annuity Company, is located at 3100 Sanders
Road, Northbrook, Illinois 60062.
The Distributor, Allstate Life Financial Services, Inc., is located at 3100
Sanders Road, Northbrook, Illinois 60062.
Each company maintains those accounts and records required to be maintained
pursuant to Section 31(a) of the Investment Company Act and the rules
promulgated thereunder.
31. MANAGEMENT SERVICES
None
32. UNDERTAKINGS
The undersigned registrant, Glenbrook Life and Annuity Company, hereby
undertakes:
(a) To file, as frequently as is necessary to ensure that the audited
financial statements in the registration statement are never more
than 16 months old for so long as payments under the variable annuity
contracts may be accepted; a post-effective amendment to this
registration statement
(b) To include either (1) as part of any application to purchase a
contract offered by the prospectus, a space that an applicant can
check to request a Statement of Additional Information, or (2) a post
card or similar written communication affixed to or included in the
prospectus that the applicant can remove to send for a Statement of
Additional Information.
(c) To deliver any Statement of Additional Information and any
financial statements required to be made available under this Form
promptly upon written or oral request.
Insofar as indemnification for liabilities arising under the Securities Act of
1933 ("Act") may be permitted to directors, officers and controlling persons of
Glenbrook Life and Annuity Company ("Registrant"), Registrant has been advised
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 that the payment by Registrant of expenses incurred or
paid by a director, officer or controlling person of 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, 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.
33. REPRESENTATION PURSUANT TO SECTION 403(b) OF THE INTERNAL REVENUE CODE
The Company represents that it is relying upon a November 28, 1988 Securities
and Exchange Commission no-action letter issued to the American Council of Life
Insurance ("ACLI") and that the provisions of paragraphs 1-4 of the no-action
letter have been complied with.
34. REPRESENTATION REGARDING CONTRACT EXPENSES
Glenbrook Life and Annuity Company ("Glenbrook Life") represents that the fees
and charges deducted under the Flexible Premium Deferred Variable Annuity
Contract hereby registered by this Registration Statement, in the aggregate, are
reasonable in relation to the services rendered, the expenses expected to be
incurred, and the risks assumed by Glenbrook Life.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 (the "Act") and the
Investment Company Act of 1940, the registrant, Glenbrook Life Multi-Manager
Variable Account, has duly caused this Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, and its seal to be
hereunto affixed and attested, all in the Township of Northfield, State of
Illinois, on the 28th day of September, 1998.
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
(Registrant)
By: GLENBROOK LIFE AND ANNUITY COMPANY
(Depositor)
(SEAL)
Attest: /s/BRENDA D. SNEED By: /s/MICAHEL J. VELOTTA
------------------ ---------------------
Brenda D. Sneed Michael J. Velotta
Assistant Secretary Vice President, Secretary and
and Assistant General Counsel
General Counsel
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, this Registration Statement has been duly signed below by
the following Directors and Officers of Glenbrook Life and Annuity Company on
the 28th day of September, 1998.
*/LOUIS G. LOWER, II Chairman of the Board of Directors and
- -------------------- Chief Executive Officer
Louis G. Lower, II (Principal Executive Officer)
/s/MICHAEL J. VELOTTA Vice President, Secretary,
- --------------------- General Counsel and Director
Michael J. Velotta
*/PETER H. HECKMAN President, Chief Operating Officer
- -------------------- and Director
Peter H. Heckman
*/JOHN R. HUNTER Senior Vice President Director
- --------------------
John R. Hunter
*/KEVIN R. SLAWIN Vice President and Director
- -------------------- (Principal Financial Officer)
Kevin R. Slawin
*/MARLA G. FRIEDMAN Vice President
- --------------------
Marla G. Friedman
*/G. CRAIG WHITEHEAD Senior Vice President and Director
- --------------------
G. Craig Whitehead
*/JAMES P. ZILS Treasurer
- --------------------
James P. Zils
*/CASEY J. SYLLA Chief Investment Officer
- ---------------------
Casey J. Sylla
*/KEITH A. HAUSCHILDT Assistant Vice President and Controller
- --------------------- (Principal Accounting Officer)
Keith A. Hauschildt
*/ By Michael J. Velotta, pursuant to Power of Attorney, previously filed.
GLENBROOK LIFE AND ANNUITY COMPANY
(herein called "we" or "us")
Certificate Amendment
The following changes are made to your Certificate.
I. The Investment Alternatives provision is replaced with the following:
Investment Alternatives The Investment Alternatives are the Sub-accounts of
the Variable Account and the Fixed Account Options shown on the
Application. We may offer additional Sub-accounts of the Variable Account
at our discretion. We reserve the right to limit the availability of the
Investment Alternatives.
II. The Fixed Account Options provision is replaced with the following:
Fixed Account Options The Fixed Account Options are the Dollar Cost
Averaging Fixed Account, the Short Term Dollar Cost Averaging Fixed
Account, and the Sub-accounts of the Guaranteed Maturity Fixed Account.
III. The Short Term Dollar Cost Averaging Fixed Account provision is added to
your Certificate.
Short Term Dollar Cost Averaging Fixed Account Money in the Short Term
Dollar Cost Averaging Fixed Account will earn interest at the annual rate
in effect at the time of allocation to the Short Term Dollar Cost Averaging
Fixed Account. Each purchase payment and associated interest in the Short
Term Dollar Cost Averaging Fixed Account must be transferred to
Sub-accounts of the Variable Account in equal monthly installments within
the selected transfer period. We will offer at our discretion a transfer
period no less than 3 months or more than 12 months. If you discontinue the
Dollar Cost Averaging Program before the end of the transfer period, the
remaining balance in the Short Term Dollar Cost Averaging Fixed Account
will be transferred to the Money Market Investment Alternative unless you
request a different Investment Alternative. No amount may be transferred
into the Short Term Dollar Cost Averaging Fixed Account.
IV. The following is added to the Purchase Payments provision:
For each purchase payment, the minimum amount that may be allocated to the
Short Term Dollar Cost Averaging Fixed Account is $5,000. We reserve the
right to reduce the minimum allocation amount.
V. The Crediting Interest provision is replaced with the following:
Crediting Interest We credit interest daily to money allocated to the
Dollar Cost Averaging Fixed Account, the Short Term Dollar Cost Averaging
Fixed Account, and each Sub-account of the Guaranteed Maturity Fixed
Account at a rate which compounds over one year to the interest rate we
guaranteed when the money was allocated. We will credit interest to the
initial purchase payment from the issue date. We will credit interest to
subsequent purchase payments from the date we receive them. We will credit
interest to transfers from the date the transfer is made. The annual
interest rates for the Dollar Cost Averaging Fixed Account and the Short
Term Dollar Cost Averaging Fixed Account will never be less than 3.0%.
GLA5 (7/98)
Page 1
<PAGE>
VI. The following is added to the Transfers provision:
No amount may be transferred into the Short Term Dollar Cost Averaging
Fixed Account.
At the end of the transfer period, any remaining portion of the purchase
payment and interest in the Short Term Dollar Cost Averaging Fixed Account
will be allocated to other Investment Alternatives as set forth in the
current Short Term Dollar Cost Averaging Fixed Account allocation.
VII. The Certificate Value provision is replaced with the following:
Certificate Value Your "Certificate Value" is equal to the sum of:
o the number of Accumulation Units you hold in each Sub-account of the
Variable Account multiplied by the Accumulation Unit Value for that
Sub-account on the most recent Valuation Date; plus
o the total value you have in the Dollar Cost Averaging Fixed Account;
plus
o the total value you have in the Short Term Dollar Cost Averaging Fixed
Account; plus
o the sum of Sub-account values in the Guaranteed Maturity Fixed
Account.
VIII.The Mortality and Expense Risk Charge provision is replaced with the
following:
Mortality and Expense Risk Charge The annualized Mortality and Expense Risk
Charge will never be greater than 1.05%. (See Net Investment Factor for a
description of how this charge is applied.)
Our actual mortality and expense experience will not adversely affect the
dollar amount of variable benefits or other contractual payments or values
under this Certificate.
IX. The last paragraph of the Withdrawal provision is deleted and replaced with
the following:
Any Withdrawal Charge or Market Value Adjustment will be waived on
withdrawals taken to satisfy IRS minimum distribution rules. This waiver is
permitted only for withdrawals which satisfy distributions resulting from
this Certificate.
X. The last paragraph of the Death of Owner or Annuitant provision is deleted
and replaced with the following:
If the surviving spouse of the deceased owner is the new owner, then the
spouse may elect one of the options listed above or may continue the
Certificate in the Accumulation Phase as if the death had not occurred. If
the Certificate is continued in the Accumulation Phase, the surviving
spouse may make a one time withdrawal of any amount within one year of the
date of death without incurring a Withdrawal Charge or Market Value
Adjustment.
XI. The Fixed Amount Income Payments provision is replaced with the following:
Fixed Amount Income Payments The income payment amount derived from any
money allocated to the Fixed Account Options during the Accumulation Phase
are fixed for the duration of the Income Plan.
GLA5 (7/98)
Page 2
<PAGE>
The Fixed Amount Income Payment is calculated by applying the portion of
the Certificate Value in the Fixed Account Options on the Payout Start
Date, adjusted by any Market Value Adjustment plus any amount from the
Variable Account that the owner elects to apply to a Fixed Amount Income
Payment and less any applicable premium tax, to the greater of the
appropriate value from the Income Payment Table selected or such other
value as we are offering at that time.
XII. The last paragraph of the Deferment of Payments provision is deleted and
replaced with the following:
We reserve the right to postpone payments or transfers from the Fixed
Account Options for up to six months. If we elect to postpone payments or
transfers from the Fixed Account Options for 30 days or more, we will pay
interest as required by applicable law. Any interest would be payable from
the date the payment or transfer request is received by us to the date the
payment or transfer is made.
XIII.Income Plan number 3 in the Income Plans provision is deleted and replaced
with the following:
3. Guaranteed Number of Payments. We will make payments for a specified
number of months beginning on the Payout Start Date. These payments do
not depend on the Annuitant's life. The number of months guaranteed
may be from 60 to 360. Income payments for less than 120 months may be
subject to a Withdrawal Charge.
Except as amended in this endorsement, the Certificate remains unchanged.
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Secretary Chief Executive Officer
GLA5 (7/98)
Page 3
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
(herein called "we" or "us")
Enhanced Death Benefit Rider
This rider was issued because you selected the Enhanced Death Benefit.
Enhanced Death Benefit The Death Benefit provision of your Certificate is
modified as follows:
If the owner is a living individual, the Enhanced Death Benefit applies only to
the death of the owner. If the owner is not a living individual, the Enhanced
Death Benefit applies only to the death of the annuitant.
The Death Benefit will be the greater of the values stated in your Certificate,
or the value of the Enhanced Death Benefit.
Enhanced Death Benefit
The Enhanced Death Benefit is equal to total purchase payments made
reduced by a withdrawal adjustment defined below. Each purchase payment
and each withdrawal adjustment will accumulate daily at a rate
equivalent to 5% per year until the earlier of:
1. the date we determine the Death Benefit, or
2. the first day of the month following the oldest owner's or, if
the owner is not a living individual, the annuitant's 85th
birthday.
The Enhanced Death Benefit will never be greater than the maximum death
benefit allowed by any nonforfeiture laws which govern the Certificate.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the
result multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Certificate Value immediately prior to the withdrawal.
(c) = the most recently calculated Enhanced Death Benefit.
Mortality and Expense Risk Charge The Mortality and Expense Risk Charge
provision of your Certificate is modified as follows:
The maximum annualized Mortality and Expense Risk Charge is increased by 0.15%
for this rider.
Except as amended in this rider, the Certificate remains unchanged.
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Secretary Chief Executive Officer
GLA7 (7/98)
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
(herein called "we" or "us")
Enhanced Death Benefit Rider
This rider was issued because you selected the Enhanced Death Benefit.
Enhanced Death Benefit The Death Benefit provision of your Certificate is
modified as follows:
If the owner is a living individual, the Enhanced Death Benefit applies only to
the death of the owner. If the owner is not a living individual, the Enhanced
Death Benefit applies only to the death of the annuitant.
The Death Benefit will be the greater of the values stated in your Certificate,
or the value of the Enhanced Death Benefit.
Enhanced Death Benefit
At issue, the Enhanced Death Benefit is equal to the initial purchase
payment. After issue, the Enhanced Death Benefit is recalculated when a
purchase payment or withdrawal is made or on a Certificate anniversary
as follows:
1. For purchase payments, the Enhanced Death Benefit is equal to
the most recently calculated Enhanced Death Benefit plus the
purchase payment.
2. For withdrawals, the Enhanced Death Benefit is equal to the
most recently calculated Enhanced Death Benefit reduced by a
withdrawal adjustment defined below.
3. On each Certificate anniversary, the Enhanced Death Benefit is
equal to the greater of the Certificate Value or the most
recently calculated Enhanced Death Benefit.
In the absence of any withdrawals or purchase payments, the Enhanced
Death Benefit will be the greatest of all Certificate anniversary
Certificate Values on or prior to the date we calculate the Death
Benefit.
The Enhanced Death Benefit will be recalculated for purchase payments,
withdrawals and on Certificate anniversaries until the oldest owner or
the annuitant, if the owner is not a living individual, attains age 85.
After age 85, the Enhanced Death Benefit will be recalculated only for
purchase payments and withdrawals.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the
result multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Certificate Value immediately prior to the withdrawal.
(c) = the most recently calculated Enhanced Death Benefit.
GLA8 Page 1 (7/98)
<PAGE>
Mortality and Expense Risk Charge The Mortality and Expense Risk Charge
provision of your Certificate is modified as follows:
The maximum annualized Mortality and Expense Risk Charge is increased by 0.15%
for this rider.
Except as amended in this rider, the Certificate remains unchanged.
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Secretary Chief Executive Officer
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
(herein called "we" or "us")
Enhanced Death Benefit Rider
This rider was issued because you selected the Enhanced Death Benefit at the
time you applied for this annuity.
Enhanced Death Benefit The Death Benefit provision of your Certificate is
modified as follows:
If the owner is a living individual, the Enhanced Death Benefit applies only to
the death of the owner. If the owner is not a living individual, the Enhanced
Death Benefit applies only to the death of the annuitant.
The Death Benefit will be the greater of the values stated in your Certificate,
or the value of the Enhanced Death Benefit.
The Enhanced Death Benefit is equal to the greater of the Enhanced Death Benefit
A or Enhanced Death Benefit B. The Enhanced Death Benefit will cease on the date
we determine the value of the Death Benefit.
Enhanced Death Benefit A.
At issue, the Enhanced Death Benefit A is equal to the initial purchase
payment. After issue, the Enhanced Death Benefit A is recalculated when
a purchase payment or withdrawal is made or on a Certificate
anniversary as follows:
1. For purchase payments, the Enhanced Death Benefit A is equal
to the most recently calculated Enhanced Death Benefit A plus
the purchase payment.
2. For withdrawals, the Enhanced Death Benefit A is equal to the
most recently calculated Enhanced Death Benefit A reduced by a
withdrawal adjustment defined below.
3. On each Certificate anniversary, the Enhanced Death Benefit A
is equal to the greater of the Certificate Value or the most
recently calculated Enhanced Death Benefit A.
In the absence of any withdrawals or purchase payments, the Enhanced
Death Benefit A will be the greatest of all Certificate anniversary
Certificate Values on or prior to the date we calculate the Death
Benefit.
The Enhanced Death Benefit A will be recalculated for purchase
payments, withdrawals and on Certificate anniversaries until the oldest
owner or the annuitant, if the owner is not a living individual,
attains age 85.
After age 85, the Enhanced Death Benefit A will be recalculated only
for purchase payments and withdrawals.
Enhanced Death Benefit B.
The Enhanced Death Benefit B is equal to total purchase payments made
reduced by a withdrawal adjustment defined below. Each purchase payment
and each withdrawal adjustment will accumulate daily at a rate
equivalent to 5% per year until the earlier of:
1. the date we determine the Death Benefit, or
GLA9 (7/98)
Page 1
<PAGE>
2. the first day of the month following the oldest owner's or, if
the owner is not a living individual, the annuitant's 85th
birthday.
The Enhanced Death Benefit B will never be greater than the maximum
death benefit allowed by any nonforfeiture laws which govern the
Certificate.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the
result multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Certificate Value immediately prior to the withdrawal.
(c) = the most recently calculated Enhanced Death Benefit A or
B, as applicable.
Mortality and Expense Risk Charge The Mortality and Expense Risk Charge
provision of your Certificate is modified as follows:
The maximum annualized Mortality and Expense Risk Charge os increased by 0.22%
for this rider.
Except as amended in this rider, the Certificate remains unchanged.
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Michael J. Velotta Louis G. Lower, II
Secretary Chief Executive Officer
Page 2
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
(herein called "we" or "us")
Enhanced Death and Income Benefit Combination Rider
This rider was issued because you selected the Enhanced Death Benefit and the
Enhanced Income Benefit.
Enhanced Death Benefit The Death Benefit provision of your Certificate is
modified as follows:
If the owner is a living individual, the Enhanced Death Benefit applies only to
the death of the owner. If the owner is not a living individual, the Enhanced
Death Benefit applies only to the death of the annuitant.
The Death Benefit will be the greater of the values stated in your Certificate,
or the value of the Enhanced Death Benefit.
Enhanced Death Benefit
The Enhanced Death Benefit is equal to total purchase payments made
reduced by a withdrawal adjustment. Each purchase payment and each
withdrawal adjustment will accumulate daily at a rate equivalent to 5%
per year until the earlier of:
1. the date we determine the Death Benefit, or
2. the first day of the month following the oldest owner's or, if
the owner is not a living individual, the annuitant's 85th
birthday.
The Enhanced Death Benefit will never be greater than the maximum death
benefit allowed by any nonforfeiture laws which govern the Certificate.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the
result multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Certificate Value immediately prior to the withdrawal.
(c) = the most recently calculated Enhanced Death Benefit.
Enhanced Income Benefit The following is added to your Certificate.
I. The Enhanced Income Benefit will apply if the owner elects a Payout Start
Date that:
o is on or after the tenth Certificate anniversary, and
o is prior to the annuitant's age 90.
Throughout the PAYOUT PHASE section of your Certificate, the term
"Certificate Value" is replaced with "the greater of the Certificate Value
or the Enhanced Income Benefit"; however, no Market Value Adjustment will
be applied to the Enhanced Income Benefit amount.
If the amount applied to an income plan is the Enhanced Income Benefit,
then the income plan must
GLA10 Page 1 (7/98)
<PAGE>
provide payments guaranteed for either single or joint life with a period
certain of at least:
o 10 years, if the youngest annuitant's age is 80 or less on the date
the amount is applied, or
o 5 years, if the youngest annuitant's age is greater than 80 on the
date the amount is applied.
If the amount applied to an income plan is the Certificate Value, then the
income plan may be any plan then offered by us.
II. The Enhanced Income Benefit is equal to what the value of the Enhanced
Death Benefit would be on the Payout Start Date.
Mortality and Expense Risk Charge The Mortality and Expense Risk Charge
provision of your Certificate is modified as follows:
The maximum annualized Mortality and Expense Risk Charge is increased by 0.30%
for this rider.
Except as amended in this rider, the Certificate remains unchanged.
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Secretary Chief Executive Officer
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
(herein called "we" or "us")
Enhanced Death and Income Benefit Combination Rider
This rider was issued because you selected the Enhanced Death Benefit and the
Enhanced Income Benefit.
Enhanced Death Benefit The Death Benefit provision of your Certificate is
modified as follows:
If the owner is a living individual, the Enhanced Death Benefit applies only to
the death of the owner. If the owner is not a living individual, the Enhanced
Death Benefit applies only to the death of the annuitant.
The Death Benefit will be the greater of the values stated in your Certificate,
or the value of the Enhanced Death Benefit.
Enhanced Death Benefit
At issue, the Enhanced Death Benefit is equal to the initial purchase
payment. After issue, the Enhanced Death Benefit is recalculated when a
purchase payment or withdrawal is made or on a Certificate anniversary
as follows:
1. For purchase payments, the Enhanced Death Benefit is equal to
the most recently calculated Enhanced Death Benefit plus the
purchase payment.
2. For withdrawals, the Enhanced Death Benefit is equal to the
most recently calculated Enhanced Death Benefit reduced by a
withdrawal adjustment defined below.
3. On each Certificate anniversary, the Enhanced Death Benefit is
equal to the greater of the Certificate Value or the most
recently calculated Enhanced Death Benefit.
In the absence of any withdrawals or purchase payments, the Enhanced
Death Benefit will be the greatest of all Certificate anniversary
Certificate Values on or prior to the date we calculate the Death
Benefit.
The Enhanced Death Benefit will be recalculated for purchase payments,
withdrawals and on Certificate anniversaries until the oldest owner or
the annuitant, if the owner is not a living individual, attains age 85.
After age 85, the Enhanced Death Benefit will be recalculated only for
purchase payments and withdrawals.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the
result multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Certificate Value immediately prior to the withdrawal.
(c) = the most recently calculated Enhanced Death Benefit.
GLA11 (7/98)
Page 1
<PAGE>
Enhanced Income Benefit The following is added to your Certificate.
I. The Enhanced Income Benefit will apply if the owner elects a Payout Start
Date that:
o is on or after the tenth Certificate anniversary, and
o is prior to the annuitant's age 90.
Throughout the PAYOUT PHASE section of your Certificate, the term
"Certificate Value" is replaced with "the greater of the Certificate Value
or the Enhanced Income Benefit"; however, no Market Value Adjustment will
be applied to the Enhanced Income Benefit amount.
If the amount applied to an income plan is the Enhanced Income Benefit,
then the income plan must provide payments guaranteed for either single or
joint life with a period certain of at least:
o 10 years, if the youngest annuitant's age is 80 or less on the date
the amount is applied, or
o 5 years, if the youngest annuitant's age is greater than 80 on the
date the amount is applied.
If the amount applied to an income plan is the Certificate Value, then the
income plan may be any plan then offered by us.
II. The Enhanced Income Benefit is equal to what the value of the Enhanced
Death Benefit would be on the Payout Start Date.
Mortality and Expense Risk Charge The Mortality and Expense Risk Charge
provision of your Certificate is modified as follows:
The maximum annualized Mortality and Expense Risk Charge is increased by 0.30%
for this rider.
Except as amended in this rider, the Certificate remains unchanged.
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Secretary Chief Executive Officer
Page 2
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
(herein called "we" or "us")
Enhanced Death and Income Benefit Combination Rider
This rider was issued because you selected the Enhanced Death Benefit and the
Enhanced Income Benefit.
Enhanced Death Benefit The Death Benefit provision of your Certificate is
modified as follows:
If the owner is a living individual, the Enhanced Death Benefit applies only to
the death of the owner. If the owner is not a living individual, the Enhanced
Death Benefit applies only to the death of the annuitant.
The Death Benefit will be the greater of the values stated in your Certificate,
or the value of the Enhanced Death Benefit.
The Enhanced Death Benefit is equal to the greater of the Enhanced Death Benefit
A or Enhanced Death Benefit B. The Enhanced Death Benefit will cease on the date
we determine the value of the Death Benefit.
Enhanced Death Benefit A.
At issue, the Enhanced Death Benefit A is equal to the initial purchase
payment. After issue, the Enhanced Death Benefit A is recalculated when
a purchase payment or withdrawal is made or on a Certificate
anniversary as follows:
1. For purchase payments, the Enhanced Death Benefit A is equal
to the most recently calculated Enhanced Death Benefit A plus
the purchase payment.
2. For withdrawals, the Enhanced Death Benefit A is equal to the
most recently calculated Enhanced Death Benefit A reduced by a
withdrawal adjustment defined below.
3. On each Certificate anniversary, the Enhanced Death Benefit A
is equal to the greater of the Certificate Value or the most
recently calculated Enhanced Death Benefit A.
In the absence of any withdrawals or purchase payments, the Enhanced
Death Benefit A will be the greatest of all Certificate anniversary
Certificate Values on or prior to the date we calculate the Death
Benefit.
The Enhanced Death Benefit A will be recalculated for purchase
payments, withdrawals and on Certificate anniversaries until the oldest
owner or the annuitant, if the owner is not a living individual,
attains age 85.
After age 85, the Enhanced Death Benefit A will be recalculated only
for purchase payments and withdrawals.
Enhanced Death Benefit B.
The Enhanced Death Benefit B is equal to total purchase payments made
reduced by a withdrawal adjustment. Each purchase payment and each
withdrawal adjustment will accumulate daily at a rate equivalent to 5%
per year until the earlier of:
1. the date we determine the Death Benefit, or
GLA12 (7/98)
Page 1
<PAGE>
2. the first day of the month following the oldest owner's or, if
the owner is not a living individual, the annuitant's 85th
birthday.
The Enhanced Death Benefit B will never be greater than the maximum
death benefit allowed by any nonforfeiture laws which govern the
Certificate.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the
result multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Certificate Value immediately prior to the withdrawal.
(c) = the most recently calculated Enhanced Death Benefit A
or B, as applicable.
Enhanced Income Benefit The following is added to your Certificate.
I. The Enhanced Income Benefit will apply if the owner elects a Payout Start
Date that:
o is on or after the tenth Certificate anniversary, and
o is prior to the annuitant's age 90.
Throughout the PAYOUT PHASE section of your Certificate, the term
"Certificate Value" is replaced with "the greater of the Certificate Value
or the Enhanced Income Benefit"; however, no Market Value Adjustment will
be applied to the Enhanced Income Benefit amount.
If the amount applied to an income plan is the Enhanced Income Benefit,
then the income plan must provide payments guaranteed for either single or
joint life with a period certain of at least:
o 10 years, if the youngest annuitant's age is 80 or less on the date
the amount is applied, or
o 5 years, if the youngest annuitant's age is greater than 80 on the
date the amount is applied.
If the amount applied to an income plan is the Certificate Value, then the
income plan may be any plan then offered by us.
II. The Enhanced Income Benefit is equal to what the value of the Enhanced
Death Benefit would be on the Payout Start Date.
Mortality and Expense Risk Charge The Mortality and Expense Risk Charge
provision of your Certificate is modified as follows:
The maximum annualized Mortality and Expense Risk Charge is increased by 0.44%
for this rider.
Except as amended in this rider, the Certificate remains unchanged.
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Secretary Chief Executive Officer
Page 2
THIS AGREEMENT, made and entered into as of the day of _____ __,
1998 by and among [NAME OF INSURANCE COMPANY] (hereinafter the
"Company"), an _______ corporation, on its own behalf and on behalf of
each separate account of the Company set forth on Schedule A hereto as
may be amended from time to time (each such account hereinafter referred
to as the "Account"), and MORGAN STANLEY UNIVERSAL FUNDS, INC.
(hereinafter the "Fund"), a Maryland corporation, and MORGAN STANLEY
ASSET MANAGEMENT INC. and MILLER ANDERSON & SHERRERD, LLP (hereinafter
collectively the "Advisers" and individually the "Adviser"), a Delaware
corporation and a Pennsylvania limited liability partnership,
respectively.
WHEREAS, the Fund engages in business as an open-end management
investment company and is available to act as (i) the investment vehicle for
separate accounts established by insurance companies for individual and group
life insurance policies and annuity contracts with variable accumulation and/or
pay-out provisions (hereinafter referred to individually and/or collectively as
"Variable Insurance Products") and (ii) the investment vehicle for certain
qualified pension and retirement plans (hereinafter "Qualified Plans"); and
WHEREAS, insurance companies desiring to utilize the Fund as an
investment vehicle under their Variable Insurance Contracts enter into
participation agreements with the Fund and the Advisers (the "Participating
Insurance Companies");
WHEREAS, shares of the Fund are divided into several series of shares,
each representing the interest in a particular managed portfolio of securities
and other assets, any one or more of which may be made available under this
Agreement, as may be amended from time to time by mutual agreement of the
parties hereto (each such series hereinafter referred to as a "Portfolio"); and
WHEREAS, the Fund has obtained an order from the Securities and Exchange
Commission, dated September 19, 1996 (File No. 812-10118), granting
Participating Insurance Companies and Variable Insurance Product separate
accounts exemptions from the provisions of Sections 9(a), 13(a), 15(a), and
15(b) of the Investment Company Act of 1940, as amended (hereinafter the "1940
Act"), and Rules 6e-2(b)(15) and 6e-3(T)(b)(15) thereunder, to the extent
necessary to permit shares of the Fund to be sold to and held by Variable
Annuity Product separate accounts of both affiliated and unaffiliated life
insurance companies and Qualified Plans (hereinafter the "Shared Funding
Exemptive Order"); and
WHEREAS, the Fund is registered as an open-end management investment
company under the 1940 Act and its shares are registered under the Securities
Act of 1933, as amended (hereinafter the "1933 Act"); and
WHEREAS, each Adviser is duly registered as an investment adviser under
the Investment Advisers Act of 1940, as amended, and any applicable state
securities laws; and
WHEREAS, each Adviser manages certain Portfolios of the Fund; and
WHEREAS, Morgan Stanley & Co. Incorporated (the "Underwriter") is
registered as a broker/dealer under the Securities Exchange Act of 1934, as
amended (hereinafter the "1934 Act"), is a member in good standing of the
National Association of Securities Dealers, Inc. (hereinafter "NASD") and serves
as principal underwriter of the shares of the Fund; and
WHEREAS, the Company has registered or will register certain Variable
Insurance Products under the 1933 Act; and
WHEREAS, each Account is a duly organized, validly existing segregated
asset account, established by resolution or under authority of the Board of
Directors of the Company, on the date shown for such Account on Schedule A
hereto, to set aside and invest assets attributable to the aforesaid Variable
Insurance Product; and
WHEREAS, the Company has registered or will register each Account as a
unit investment trust under the 1940 Act; and
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, the Company intends to purchase, on behalf of each Account, shares
in the Portfolios set forth in Schedule B attached to this Agreement, to fund
certain of the aforesaid Variable Insurance Products and the Underwriter is
authorized to sell such shares to each such Account at net asset value;
NOW, THEREFORE, in consideration of their mutual promises, the Company,
the Fund and the Underwriter agree as follows:
ARTICLE I. Purchase of Fund Shares
1.1. The Fund agrees to make available for purchase by the Company
shares of the Fund and shall execute orders placed for each Account on a daily
basis at the net asset value next computed after receipt by the Fund or its
designee of such order. For purposes of this Section 1.1, the Company shall be
the designee of the Fund for receipt of such orders from each Account and
receipt by such designee shall constitute receipt by the Fund; provided that the
Fund receives notice of such order by 10:00 a.m. Eastern time on the next
following Business Day. "Business Day" shall mean any day on which the New York
Stock Exchange is open for trading and on which the Fund calculates its net
asset value pursuant to the rules of the Securities and Exchange Commission.
1.2. The Fund, so long as this Agreement is in effect, agrees to make
its shares available indefinitely for purchase at the applicable net asset value
per share by the Company and its Accounts on those days on which the Fund
calculates its net asset value pursuant to rules of the Securities and Exchange
Commission and the Fund shall use reasonable efforts to calculate such net asset
value on each day which the New York Stock Exchange is open for trading.
Notwithstanding the foregoing, the Board of Directors of the Fund (hereinafter
the "Board") may refuse to permit the Fund to sell shares of any Portfolio to
any person, or suspend or terminate the offering of shares of any Portfolio if
such action is required by law or by regulatory authorities having jurisdiction
or is, in the sole discretion of the Board acting in good faith and in light of
their fiduciary duties under federal and any applicable state laws, necessary in
the best interests of the shareholders of such Portfolio.
1.3. The Fund agrees that shares of the Fund will be sold only to
Participating Insurance Companies and their separate accounts and to certain
Qualified Plans. No shares of any Portfolio will be sold to the general public.
1.4. The Fund agrees to redeem for cash, on the Company's request, any
full or fractional shares of the Fund held by the Company, executing such
requests on a daily basis at the net asset value next computed after receipt by
the Fund or its designee of the request for redemption. For purposes of this
Section 1.4, the Company shall be the designee of the Fund for receipt of
requests for redemption from each Account and receipt by such designee shall
constitute receipt by the Fund, provided that the Fund receives notice of such
request for redemption on the next following Business Day.
1.5. The Company agrees that purchases and redemptions of Portfolio
shares offered by the then current prospectus of the Fund shall be made in
accordance with the provisions of such prospectus. The Variable Insurance
Products issued by the Company, under which amounts may be invested in the Fund
(hereinafter the "Contracts"), are listed on Schedule A attached hereto and
incorporated herein by reference, as such Schedule A may be amended from time to
time by mutual written agreement of all of the parties hereto. The Company will
give the Fund and the Adviser 45 days written notice of its intention to make
available in the future, as a funding vehicle under the Contracts, any other
investment company.
1.6. The Company shall pay for Fund shares on the next Business Day
after an order to purchase Fund shares is made in accordance with the provisions
of Section 1.1 hereof. Payment shall be in federal funds transmitted by wire.
For purposes of Section 2.10 and 2.11, upon receipt by the Fund of the federal
funds so wired, such funds shall cease to be the responsibility of the Company
and shall become the responsibility of the Fund.
1.7. Issuance and transfer of the Fund's shares will be by book entry
only. Stock certificates will not be issued to the Company or any Account.
Shares ordered from the Fund will be recorded in an appropriate title for each
Account or the appropriate subaccount of each Account.
1.8. The Fund shall furnish same day notice (by wire or telephone,
followed by written confirmation) to the Company of any income, dividends or
capital gain distributions payable on the Fund's shares. The Company hereby
elects to receive all such income dividends and capital gain distributions as
are payable on the Portfolio shares in additional shares of that Portfolio. The
Company reserves the right to revoke this election and to receive all such
income dividends and capital gain distributions in cash. The Fund shall notify
the Company of the number of shares so issued as payment of such dividends and
distributions.
1.9. The Fund shall make the net asset value per share for each
Portfolio available to the Company on a daily basis as soon as reasonably
practical after the net asset value per share is calculated (normally by 6:30
p.m. Eastern time) and shall use its best efforts to make such net asset value
per share available by 7:00 p.m. Eastern time.
ARTICLE II. Representations and Warranties
2.1. The Company represents and warrants that the Contracts are or will
be registered under the 1933 Act; that the Contracts will be issued and sold in
compliance in all material respects with all applicable federal and state laws
and that the sale of the Contracts shall comply in all material respects with
state insurance suitability requirements. The Company further represents and
warrants that it is an insurance company duly organized and in good standing
under applicable law and that it has legally and validly established each
Account prior to any issuance or sale thereof as a segregated asset account
under Section [Citation of state separate account law] and has registered or,
prior to any issuance or sale of the Contracts, will register each Account as a
unit investment trust in accordance with the provisions of the 1940 Act to serve
as a segregated investment account for the Contracts.
2.2. The Fund represents and warrants that Fund shares sold pursuant to
this Agreement shall be registered under the 1933 Act, duly authorized for
issuance and sold in compliance with the laws of the State of Maryland and all
applicable federal and state securities laws and that the Fund is and shall
remain registered under the 1940 Act. The Fund shall amend the registration
statement for its shares under the 1933 Act and the 1940 Act from time to time
as required in order to effect the continuous offering of its shares. The Fund
shall register and qualify the shares for sale in accordance with the laws of
the various states only if and to the extent deemed advisable by the Fund.
2.3. The Fund represents that it is currently qualified as a Regulated
Investment Company under Subchapter M of the Internal Revenue Code of 1986, as
amended (the "Code"), and that it will make every effort to maintain such
qualification (under Subchapter M or any successor or similar provision) and
that it will notify the Company immediately upon having a reasonable basis for
believing that it has ceased to so qualify or that it might not so qualify in
the future.
2.4. The Company represents that the Contracts are currently treated as
life insurance policies or annuity contracts, under applicable provisions of the
Code and that it will make every effort to maintain such treatment and that it
will notify the Fund immediately upon having a reasonable basis for believing
that the Contracts have ceased to be so treated or that they might not be so
treated in the future.
2.5. The Fund represents that to the extent that it decides to finance
distribution expenses pursuant to Rule 12b-1 under the 1940 Act, the Fund
undertakes to have a board of directors, a majority of whom are not interested
persons of the Fund, formulate and approve any plan under Rule 12b-1 to finance
distribution expenses.
2.6. The Fund makes no representation as to whether any aspect of its
operations (including, but not limited to, fees and expenses and investment
policies) complies with the insurance laws or regulations of the various states
except that the Fund represents that the Fund's investment policies, fees and
expenses are and shall at all times remain in compliance with the laws of the
State of Maryland and the Fund represents that their respective operations are
and shall at all times remain in material compliance with the laws of the State
of Maryland to the extent required to perform this Agreement.
2.7. The Fund represents that it is lawfully organized and validly
existing under the laws of the State of Maryland and that it does and will
comply in all material respects with the 1940 Act.
2.8. Each Adviser represents and warrants that it is and shall remain
duly registered in all material respects under all applicable federal and state
securities laws and that it will perform its obligations for the Fund in
compliance in all material respects with the laws of its state of domicile and
any applicable state and federal securities laws.
2.9. The Fund represents and warrants that its directors, officers,
employees, and other individuals/entities dealing with the money and/or
securities of the Fund are and shall continue to be at all times covered by a
blanket fidelity bond or similar coverage for the benefit of the Fund in an
amount not less than the minimal coverage as required currently by Rule 17g-(1)
of the 1940 Act or related provisions as may be promulgated from time to time.
The aforesaid blanket fidelity bond shall include coverage for larceny and
embezzlement and shall be issued by a reputable bonding company.
2.10. The Company represents and warrants that all of its directors,
officers, employees, investment advisers, and other individuals/entities dealing
with the money and/or securities of the Fund are covered by a blanket fidelity
bond or similar coverage, in an amount not less $5 million. The aforesaid
includes coverage for larceny and embezzlement is issued by a reputable bonding
company. The Company agrees to make all reasonable efforts to see that this bond
or another bond containing these provisions is always in effect, and agrees to
notify the Fund and the Underwriter in the event that such coverage no longer
applies.
ARTICLE III. Prospectuses, Reports to Shareholders and Proxy Statements; Voting
3.1. The Fund or its designee shall provide the Company with as many
printed copies of the Fund's current prospectus and statement of additional
information as the Company may reasonably request. If requested by the Company,
in lieu of providing printed copies the Fund shall provide camera-ready film or
computer diskettes containing the Fund's prospectus and statement of additional
information, and such other assistance as is reasonably necessary in order for
the Company once each year (or more frequently if the prospectus and/or
statement of additional information for the Fund is amended during the year) to
have the prospectus for the Contracts and the Fund's prospectus printed together
in one document, and to have the statement of additional information for the
Fund and the statement of additional information for the Contracts printed
together in one document. Alternatively, the Company may print the Fund's
prospectus and/or its statement of additional information in combination with
other fund companies' prospectuses and statements of additional information.
3.2. Except as provided in this Section 3.2., all expenses of
preparing, setting in type and printing and distributing Fund
prospectuses and statements of additional information shall be
the expense of the Company. For prospectuses and statements of
additional information provided by the Company to its existing
owners of Contracts who currently own shares of one or more of
the Fund's Portfolios, in order to update disclosure as required
by the 1933 Act and/or the 1940 Act, the cost of printing shall
be borne by the Fund. If the Company chooses to receive
camera-ready film or computer diskettes in lieu of receiving
printed copies of the Fund's prospectus, the Fund shall bear the
cost of typesetting to provide the Fund's prospectus to the
Company in the format in which the Fund is accustomed to
formatting prospectuses, and the Company shall bear the expense
of adjusting or changing the format to conform with any of its
prospectuses. In such event, the Fund will reimburse the Company
in an amount equal to the product of x and y where x is the
number of such prospectuses distributed to owners of the
Contracts who currently own shares of one or more of the Fund's
Portfolios, and y is the Fund's per unit cost of typesetting and
printing the Fund's prospectus. The same procedures shall be
followed with respect to the Fund's statement of additional
information. The Company agrees to provide the Fund or its
designee with such information as may be reasonably requested by
the Fund to assure that the Fund's expenses do not include the
cost of printing, typesetting, and distributing any prospectuses
or statements of additional information other than those actually
distributed to existing owners of the Contracts who currently own
shares of one or more of the Fund's Portfolios.
3.3. The Fund's statement of additional information shall be obtainable
from the Fund, the Company or such other person as the Fund may designate, as
agreed upon by the parties.
3.4. The Fund, at its expense, shall provide the Company with copies of
its proxy statements, reports to shareholders, and other communications (except
for prospectuses and statements of additional information, which are covered in
section 3.1) to shareholders in such quantity as the Company shall reasonably
require for distributing to Contract owners.
3.5. If and to the extent required by law the Company shall:
(i) solicit voting instructions from Contract owners;
(ii) vote the Fund shares in accordance with instructions
received from Contract owners; and
(iii)vote Fund shares for which no instructions have been
received in the same proportion as Fund shares of such
Portfolio for which instructions have been received,
so long as and to the extent that the Securities and Exchange Commission
continues to interpret the 1940 Act to require pass-through voting privileges
for variable contract owners. The Company reserves the right to vote Fund shares
held in any segregated asset account in its own right, to the extent permitted
by law. The Fund and the Company shall follow the procedures, and shall have the
corresponding responsibilities, for the handling of proxy and voting instruction
solicitations, as set forth in Schedule C attached hereto and incorporated
herein by reference. Participating Insurance Companies shall be responsible for
ensuring that each of their separate accounts participating in the Fund
calculates voting privileges in a manner consistent with the standards set forth
on Schedule C, which standards will also be provided to the other Participating
Insurance Companies.
3.6. The Fund will comply with all provisions of the 1940 Act requiring
voting by shareholders, and in particular the Fund will either provide for
annual meetings or comply with Section 16(c) of the 1940 Act (although the Fund
is not one of the trusts described in Section 16(c) of that Act) as well as with
Sections 16(a) and, if and when applicable, 16(b). Further, the Fund will act in
accordance with the Securities and Exchange Commission's interpretation of the
requirements of Section 16(a) with respect to periodic elections of directors
and with whatever rules the Commission may promulgate with respect thereto.
3.7. The Fund shall use reasonable efforts to provide Fund prospectuses,
reports to shareholders, proxy materials and other Fund communications (or
camera-ready equivalents) to the Company sufficiently in advance of the
Company's mailing dates to enable the Company to complete, at reasonable cost,
the printing, assembling and/or distribution of the communications in accordance
with applicable laws and regulations.
ARTICLE IV. Sales Material and Information
4.1. The Company shall furnish, or shall cause to be furnished, to the
Fund or its designee, each piece of sales literature or other promotional
material in which the Fund or the Adviser(s) is named, at least ten Business
Days prior to its use. No such material shall be used if the Fund or its
designee reasonably objects to such use within ten Business Days after receipt
of such material.
4.2. The Company shall not give any information or make any
representations or statements on behalf of the Fund or concerning the Fund in
connection with the sale of the Contracts other than the information or
representations contained in the registration statement or prospectus for the
Fund shares, as such registration statement and prospectus may be amended or
supplemented from time to time, or in reports or proxy statements for the Fund,
or in sales literature or other promotional material approved by the Fund or its
designee, except with the permission of the Fund.
4.3. The Fund or its designee shall furnish, or shall cause to be
furnished, to the Company or its designee, each piece of sales literature or
other promotional material in which the Company and/or its separate account(s)
is named at least ten Business Days prior to its use. No such material shall be
used if the Company or its designee reasonably objects to such use within ten
Business Days after receipt of such material.
4.4. The Fund and the Advisers shall not give any information or make
any representations on behalf of the Company or concerning the Company, each
Account, or the Contracts, other than the information or representations
contained in a registration statement or prospectus for the Contracts, as such
registration statement and prospectus may be amended or supplemented from time
to time, or in published reports for each Account which are in the public domain
or approved by the Company for distribution to Contract owners, or in sales
literature or other promotional material approved by the Company or its
designee, except with the permission of the Company.
4.5. The Fund will provide to the Company at least one complete copy of
all registration statements, prospectuses, statements of additional information,
reports, proxy statements, sales literature and other promotional materials,
applications for exemptions, requests for no-action letters, and all amendments
to any of the above, that relate to the Fund or its shares, which are relevant
to the Company or the Contracts.
4.6. The Company will provide to the Fund at least one complete copy of
all registration statements, prospectuses, statements of additional information,
reports, solicitations for voting instructions, sales literature and other
promotional materials, applications for exemptions, requests for no action
letters, and all amendments to any of the above, that relate to the investment
in the Fund under the Contracts.
4.7. For purposes of this Article IV, the phrase "sales literature or
other promotional material" includes, but is not limited to, any of the
following that refer to the Fund or any affiliate of the Fund: advertisements
(such as material published, or designed for use in, a newspaper, magazine, or
other periodical, radio, television, telephone or tape recording, videotape
display, signs or billboards, motion pictures, or other public media), sales
literature (i.e., any written communication distributed or made generally
available to customers or the public, including brochures, circulars, research
reports, market letters, form letters, seminar texts, reprints or excerpts of
any other advertisement, sales literature, or published article), educational or
training materials or other communications distributed or made generally
available to some or all agents or employees, and registration statements,
prospectuses, statements of additional information, shareholder reports, and
proxy materials.
ARTICLE V. Fees and Expenses
5.1. The Fund shall pay no fee or other compensation to the Company
under this Agreement, except that if the Fund or any Portfolio adopts and
implements a plan pursuant to Rule 12b-1 to finance distribution expenses, then
the Underwriter may make payments to the Company or to the underwriter for the
Contracts if and in amounts agreed to by the Underwriter in writing.
5.2. All expenses incident to performance by the Fund under this
Agreement shall be paid by the Fund. The Fund shall see to it that all its
shares are registered and authorized for issuance in accordance with applicable
federal law and, if and to the extent deemed advisable by the Fund, in
accordance with applicable state laws prior to their sale. Except as otherwise
set forth in the Section 3.2 of this Agreement, the Fund shall bear the expenses
for the cost of registration and qualification of the Fund's shares, preparation
and filing of the Fund's prospectus and registration statement, proxy materials
and reports, setting the prospectus in type, setting in type and printing the
proxy materials and reports to shareholders, the preparation of all statements
and notices required by any federal or state law, and all taxes on the issuance
or transfer of the Fund's shares.
5.3. The Company shall bear the expenses of distributing the Fund's
prospectus, proxy materials and reports to owners of Contracts issued by the
Company.
ARTICLE VI. Diversification
6.1. The Fund will at all times invest money from the Contracts in such
a manner as to ensure that the Contracts will be treated as variable contracts
under the Code and the regulations issued thereunder. Without limiting the scope
of the foregoing, the Fund will at all times comply with Section 817(h) of the
Code and Treasury Regulation 1.817-5, relating to the diversification
requirements for variable annuity, endowment, or life insurance contracts and
any amendments or other modifications to such Section or Regulations. In the
event of a breach of this Article VI by the Fund, it will take all reasonable
steps (a) to notify Company of such breach and (b) to adequately diversify the
Fund so as to achieve compliance within the grace period afforded by Regulation
817-5.
ARTICLE VII. Potential Conflicts
7.1. The Board will monitor the Fund for the existence of any material
irreconcilable conflict between the interests of the contract owners of all
separate accounts investing in the Fund. An irreconcilable material conflict may
arise for a variety of reasons, including: (a) an action by any state insurance
regulatory authority; (b) a change in applicable federal or state insurance,
tax, or securities laws or regulations, or a public ruling, private letter
ruling, no-action or interpretative letter, or any similar action by insurance,
tax, or securities regulatory authorities; (c) an administrative or judicial
decision in any relevant proceeding; (d) the manner in which the investments of
any Portfolio are being managed; (e) a difference in voting instructions given
by Variable Insurance Product owners; or (f) a decision by a Participating
Insurance Company to disregard the voting instructions of contract owners. The
Board shall promptly inform the Company if it determines that an irreconcilable
material conflict exists and the implications thereof.
7.2. The Company will report any potential or existing conflicts of
which it is aware to the Board. The Company will assist the Board in carrying
out its responsibilities under the Shared Funding Exemptive Order, by providing
the Board with all information reasonably necessary for the Board to consider
any issues raised. This includes, but is not limited to, an obligation by the
Company to inform the Board whenever contract owner voting instructions are
disregarded.
7.3. If it is determined by a majority of the Board, or a majority of
its disinterested members, that a material irreconcilable conflict exists, the
Company and other Participating Insurance Companies shall, at their expense and
to the extent reasonably practicable (as determined by a majority of the
disinterested directors), take whatever steps are necessary to remedy or
eliminate the irreconcilable material conflict, up to and including: (1)
withdrawing the assets allocable to some or all of the separate accounts from
the Fund or any Portfolio and reinvesting such assets in a different investment
medium, including (but not limited to) another Portfolio of the Fund, or
submitting the question whether such segregation should be implemented to a vote
of all affected Contract owners and, as appropriate, segregating the assets of
any appropriate group (i.e., annuity contract owners, life insurance policy
owners, or variable contract owners of one or more Participating Insurance
Companies) that votes in favor of such segregation, or offering to the affected
contract owners the option of making such a change; and (2) establishing a new
registered management investment company or managed separate account.
7.4. If a material irreconcilable conflict arises because of a decision
by the Company to disregard contract owner voting instructions and that decision
represents a minority position or would preclude a majority vote, the Company
may be required, at the Fund's election, to withdraw the affected Account's
investment in the Fund and terminate this Agreement with respect to such Account
(at the Company's expense); provided, however that such withdrawal and
termination shall be limited to the extent required by the foregoing material
irreconcilable conflict as determined by a majority of the disinterested members
of the Board.
7.5. If a material irreconcilable conflict arises because a particular
state insurance regulator's decision applicable to the Company conflicts with
the majority of other state regulators, then the Company will withdraw the
affected Account's investment in the Fund and terminate this Agreement with
respect to such Account within six months after the Board informs the Company in
writing that it has determined that such decision has created an irreconcilable
material conflict; provided, however, that such withdrawal and termination shall
be limited to the extent required by the foregoing material irreconcilable
conflict as determined by a majority of the disinterested members of the Board.
Until the end of the foregoing six month period, the Underwriter and Fund shall
continue to accept and implement orders by the Company for the purchase (and
redemption) of shares of the Fund.
7.6. For purposes of Sections 7.3 through 7.5 of this Agreement, a
majority of the disinterested members of the Board shall determine whether any
proposed action adequately remedies any irreconcilable material conflict, but in
no event will the Fund be required to establish a new funding medium for the
Contracts. The Company shall not be required by Section 7.3 to establish a new
funding medium for the Contracts if an offer to do so has been declined by vote
of a majority of Contract owners materially adversely affected by the
irreconcilable material conflict.
7.7. If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended,
or Rule 6e-3 is adopted, to provide exemptive relief from any provision of the
1940 Act or the rules promulgated thereunder with respect to mixed or shared
funding (as defined in the Shared Funding Exemptive Order) on terms and
conditions materially different from those contained in the Shared Funding
Exemptive Order, then (a) the Fund and/or the Participating Insurance Companies,
as appropriate, shall take such steps as may be necessary to comply with Rules
6e-2 and 6e-3(T), as amended, and Rule 6e-3, as adopted, to the extent such
rules are applicable; and (b) Sections 3.4, 3.5, 7.1, 7.2, 7.3, 7.4, and 7.5 of
this Agreement shall continue in effect only to the extent that terms and
conditions substantially identical to such Sections are contained in such
Rule(s) as so amended or adopted.
ARTICLE VIII. Indemnification
8.1. Indemnification By The Company
8.1(a) The Company agrees to indemnify and hold harmless the Fund and
each member of the Board and officers, and each Adviser and each director and
officer of each Adviser, and each person, if any, who controls the Fund or the
Adviser within the meaning of Section 15 of the 1933 Act (collectively, the
"Indemnified Parties" and individually, "Indemnified Party," for purposes of
this Section 8.1) against any and all losses, claims, damages, liabilities
(including amounts paid in settlement with the written consent of the Company)
or litigation (including legal and other expenses), to which the Indemnified
Parties may become subject under any statute, regulation, at common law or
otherwise, insofar as such losses, claims, damages, liabilities or expenses (or
actions in respect thereof) or settlements are related to the sale or
acquisition of the Fund's shares or the Contracts and:
(i) arise out of or are based upon any untrue
statements or alleged untrue statements of any material fact
contained in the registration statement or prospectus for the
Contracts or contained in the Contracts or sales literature for
the Contracts (or any amendment or supplement to any of the
foregoing), or arise out of or are based upon the omission or the
alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not
misleading, provided that this agreement to indemnify shall not
apply as to any Indemnified Party if such statement or omission
or such alleged statement or omission was made in reliance upon
and in conformity with information furnished to the Company by or
on behalf of the Fund for use in the registration statement or
prospectus for the Contracts or in the Contracts or sales
literature (or any amendment or supplement) or otherwise for use
in connection with the sale of the Contracts or Fund shares; or
(ii) arise out of or as a result of statements
or representations (other than statements or representations
contained in the registration statement, prospectus or sales
literature of the Fund not supplied by the Company, or persons
under its control and other than statements or representations
authorized by the Fund or an Adviser) or unlawful conduct of the
Company or persons under its control, with respect to the sale or
distribution of the Contracts or Fund shares; or
(iii) arise out of or as a result of any untrue
statement or alleged untrue statement of a material fact
contained in a registration statement, prospectus, or sales
literature of the Fund or any amendment thereof or supplement
thereto or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make
the statements therein not misleading if such a statement or
omission was made in reliance upon and in conformity with
information furnished to the Fund by or on behalf of the Company;
or
(iv) arise as a result of any failure by the
Company to provide the services and furnish the materials under
the terms of this Agreement; or
(v) arise out of or result from any material
breach of any representation and/or warranty made by the Company
in this Agreement or arise out of or result from any other
material breach of this Agreement by the Company, as limited by
and in accordance with the provisions of Sections 8.1(b) and
8.1(c) hereof.
8.1(b). The Company shall not be liable under this
indemnification provision with respect to any losses, claims,
damages, liabilities or litigation incurred or assessed against
an Indemnified Party as such may arise from such Indemnified
Party's willful misfeasance, bad faith, or gross negligence in
the performance of such Indemnified Party's duties or by reason
of such Indemnified Party's reckless disregard of obligations or
duties under this Agreement.
8.1(c). The Company shall not be liable under this
indemnification provision with respect to any claim made against
an Indemnified Party unless such Indemnified Party shall have
notified the Company in writing within a reasonable time after
the summons or other first legal process giving information of
the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have
received notice of such service on any designated agent), but
failure to notify the Company of any such claim shall not relieve
the Company from any liability which it may have to the
Indemnified Party against whom such action is brought otherwise
than on account of this indemnification provision. In case any
such action is brought against the Indemnified Parties, the
Company shall be entitled to participate, at its own expense, in
the defense of such action. The Company also shall be entitled to
assume the defense thereof, with counsel satisfactory to the
party named in the action. After notice from the Company to such
party of the Company's election to assume the defense thereof,
the Indemnified Party shall bear the fees and expenses of any
additional counsel retained by it, and the Company will not be
liable to such party under this Agreement for any legal or other
expenses subsequently incurred by such party independently in
connection with the defense thereof other than reasonable costs
of investigation.
8.1(d). The Indemnified Parties will promptly notify the
Company of the commencement of any litigation or proceedings
against them in connection with the issuance or sale of the Fund
shares or the Contracts or the operation of the Fund.
8.2. Indemnification by the Advisers
8.2(a). Each Adviser agrees, with respect to each
Portfolio that it manages, to indemnify and hold harmless the
Company and each of its directors and officers and each person,
if any, who controls the Company within the meaning of Section 15
of the 1933 Act (collectively, the "Indemnified Parties" and
individually, "Indemnified Party," for purposes of this Section
8.2) against any and all losses, claims, damages, liabilities
(including amounts paid in settlement with the written consent of
the Adviser) or litigation (including legal and other expenses)
to which the Indemnified Parties may become subject under any
statute, regulation, at common law or otherwise, insofar as such
losses, claims, damages, liabilities or expenses (or actions in
respect thereof) or settlements are related to the sale or
acquisition of shares of the Portfolio that it manages or the
Contracts and:
(i) arise out of or are based upon any
untrue statement or alleged untrue statement of any
material fact contained in the registration
statement or prospectus or sales literature of the
Fund (or any amendment or supplement to any of the
foregoing), or arise out of or are based upon the
omission or the alleged omission to state therein a
material fact required to be stated therein or
necessary to make the statements therein not
misleading, provided that this agreement to
indemnify shall not apply as to any Indemnified
Party if such statement or omission or such alleged
statement or omission was made in reliance upon and
in conformity with information furnished to the
Fund by or on behalf of the Company for use in the
registration statement or prospectus for the Fund
or in sales literature (or any amendment or
supplement) or otherwise for use in connection with
the sale of the Contracts or Portfolio shares; or
(ii) arise out of or as a result of
statements or representations (other than
statements or representations contained in the
registration statement, prospectus or sales
literature for the Contracts not supplied by the
Fund or persons under its control and other than
statements or representations authorized by the
Company) or unlawful conduct of the Fund,
Adviser(s) or Underwriter or persons under their
control, with respect to the sale or distribution
of the Contracts or Portfolio shares; or
(iii) arise out of or as a result of any
untrue statement or alleged untrue statement of a
material fact contained in a registration
statement, prospectus, or sales literature covering
the Contracts, or any amendment thereof or
supplement thereto, or the omission or alleged
omission to state therein a material fact required
to be stated therein or necessary to make the
statement or statements therein not misleading, if
such statement or omission was made in reliance
upon information furnished to the Company by or on
behalf of the Fund; or
(iv) arise as a result of any failure by the
Fund to provide the services and furnish the
materials under the terms of this Agreement; or
(v) arise out of or result from any material
breach of any representation and/or warranty made
by the Adviser in this Agreement or arise out of or
result from any other material breach of this
Agreement by the Adviser; as limited by and in
accordance with the provisions of Sections 8.2(b)
and 8.2(c) hereof.
8.2(b). An Adviser shall not be liable under this
indemnification provision with respect to any losses, claims,
damages, liabilities or litigation incurred or assessed against
an Indemnified Party as such may arise from such Indemnified
Party's willful misfeasance, bad faith, or gross negligence in
the performance of such Indemnified Party's duties or by reason
of such Indemnified Party's reckless disregard of obligations and
duties under this Agreement.
8.2(c). An Adviser shall not be liable under this
indemnification provision with respect to any claim made against
an Indemnified Party unless such Indemnified Party shall have
notified the Adviser in writing within a reasonable time after
the summons or other first legal process giving information of
the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have
received notice of such service on any designated agent), but
failure to notify the Adviser of any such claim shall not relieve
the Adviser from any liability which it may have to the
Indemnified Party against whom such action is brought otherwise
than on account of this indemnification provision. In case any
such action is brought against the Indemnified Parties, the
Adviser will be entitled to participate, at its own expense, in
the defense thereof. The Adviser also shall be entitled to assume
the defense thereof, with counsel satisfactory to the party named
in the action. After notice from the Adviser to such party of the
Adviser's election to assume the defense thereof, the Indemnified
Party shall bear the fees and expenses of any additional counsel
retained by it, and the Adviser will not be liable to such party
under this Agreement for any legal or other expenses subsequently
incurred by such party independently in connection with the
defense thereof other than reasonable costs of investigation.
8.2(d). The Company agrees promptly to notify the Adviser
of the commencement of any litigation or proceedings against it
or any of its officers or directors in connection with the
issuance or sale of the Contracts or the operation of each
Account.
8.3. Indemnification by the Fund
---------------------------
8.3(a). The Fund agrees to indemnify and hold harmless the
Company, and each of its directors and officers and each person,
if any, who controls the Company within the meaning of Section 15
of the 1933 Act (hereinafter collectively, the "Indemnified
Parties" and individually, "Indemnified Party," for purposes of
this Section 8.3) against any and all losses, claims, damages,
liabilities (including amounts paid in settlement with the
written consent of the Fund) or litigation (including legal and
other expenses) to which the Indemnified Parties may become
subject under any statute, regulation, at common law or
otherwise, insofar as such losses, claims, damages, liabilities
or expenses (or actions in respect thereof) or settlements result
from the gross negligence, bad faith or willful misconduct of the
Board or any member thereof, are related to the operations of the
Fund and:
(i) arise as a result of any failure
by the Fund to provide the services and furnish the
materials under the terms of this Agreement; or
(ii) arise out of or result from any
material breach of any representation and/or
warranty made by the Fund in this Agreement or
arise out of or result from any other material
breach of this Agreement by the Fund;
8.3(b). The Fund shall not be liable under this
indemnification provision with respect to any losses, claims,
damages, liabilities or litigation incurred or assessed against
an Indemnified Party as may arise from such Indemnified Party's
willful misfeasance, bad faith, or gross negligence in the
performance of such Indemnified Party's duties or by reason of
such Indemnified Party's reckless disregard of obligations and
duties under this Agreement.
8.3(c). The Fund shall not be liable under this
indemnification provision with respect to any claim made against
an Indemnified Party unless such Indemnified Party shall have
notified the Fund in writing within a reasonable time after the
summons or other first legal process giving information of the
nature of the claim shall have been served upon such Indemnified
Party (or after such Indemnified Party shall have received notice
of such service on any designated agent), but failure to notify
the Fund of any such claim shall not relieve the Fund from any
liability which it may have to the Indemnified Party against whom
such action is brought otherwise than on account of this
indemnification provision. In case any such action is brought
against the Indemnified Parties, the Fund will be entitled to
participate, at its own expense, in the defense thereof. The Fund
also shall be entitled to assume the defense thereof, with
counsel satisfactory to the party named in the action. After
notice from the Fund to such party of the Fund's election to
assume the defense thereof, the Indemnified Party shall bear the
fees and expenses of any additional counsel retained by it, and
the Fund will not be liable to such party under this Agreement
for any legal or other expenses subsequently incurred by such
party independently in connection with the defense thereof other
than reasonable costs of investigation.
8.3(d). The Company agrees promptly to notify the Fund of
the commencement of any litigation or proceedings against it or
any of its respective officers or directors in connection with
this Agreement, the issuance or sale of the Contracts, with
respect to the operation of either Account, or the sale or
acquisition of shares of the Fund.
ARTICLE IX. Applicable Law
9.1. This Agreement shall be construed and the provisions
hereof interpreted under and in accordance with the laws of the
State of New York.
9.2. This Agreement shall be subject to the provisions of
the 1933, 1934 and 1940 Acts, and the rules and regulations and
rulings thereunder, including such exemptions from those
statutes, rules and regulations as the Securities and Exchange
Commission may grant (including, but not limited to, the Shared
Funding Exemptive Order) and the terms hereof shall be
interpreted and construed in accordance therewith.
ARTICLE X. Termination
10.1. This Agreement shall continue in full force and
effect until the first to occur of:
(a) termination by any party for any reason by sixty (60)
days advance written notice delivered to the other parties; or
(b) termination by the Company by written notice to the
Fund and the Adviser with respect to any Portfolio based upon the
Company's determination that shares of such Portfolio is not
reasonably available to meet the requirements of the Contracts;
or
(c) termination by the Company by written notice to the
Fund and the Adviser with respect to any Portfolio in the event
any of the Portfolio's shares are not registered, issued or sold
in accordance with applicable state and/or federal law or such
law precludes the use of such shares as the underlying investment
media of the Contracts issued or to be issued by the Company; or
(d) termination by the Company by written notice to the
Fund and the Adviser with respect to any Portfolio in the event
that such Portfolio ceases to qualify as a Regulated Investment
Company under Subchapter M of the Code or under any successor or
similar provision, or if the Company reasonably believes that the
Fund may fail to so qualify; or
(e) termination by the Company by written notice to the
Fund and the Adviser with respect to any Portfolio in the event
that such Portfolio falls to meet the diversification
requirements specified in Article VI hereof; or
(f) termination by either the Fund by written notice to
the Company if the Fund shall determine, in its sole judgment
exercised in good faith, that the Company and/or its affiliated
companies has suffered a material adverse change in its business,
operations, financial condition or prospects since the date of
this Agreement or is the subject of material adverse publicity,
or
(g) termination by the Company by written notice to the
Fund and the Adviser, if the Company shall determine, in its sole
judgment exercised in good faith, that either the Fund or the
Adviser has suffered a material adverse change in its business,
operations, financial condition or prospects since the date of
this Agreement or is the subject of material adverse publicity;
or
(h) termination by the Fund or the Adviser by written
notice to the Company, if the Company gives the Fund and the
Adviser the written notice specified in Section 1.5 hereof and at
the time such notice was given there was no notice of termination
outstanding under any other provision of this Agreement;
provided, however any termination under this Section 10.1(h)
shall be effective forty five (45) days after the notice
specified in Section 1.5 was given.
10.2. Notwithstanding any termination of this Agreement,
the Fund shall at the option of the Company, continue to make
available additional shares of the Fund pursuant to the terms and
conditions of this Agreement, for all Contracts in effect on the
effective date of termination of this Agreement (hereinafter
referred to as "Existing, Contracts"). Specifically, without
limitation, the owners of the Existing Contracts shall be
permitted to direct reallocation of investments in the Fund,
redemption of investments in the Fund and/or investment in the
Fund upon the making of additional purchase payments under the
Existing Contracts. The parties agree that this Section 10.2
shall not apply to any terminations under Article VII and the
effect of such Article VII terminations shall be governed by
Article VII of this Agreement.
10.3. The Company shall not redeem Fund shares
attributable to the Contracts (as distinct from Fund shares
attributable to the Company's assets held in the Account) except
(i) as necessary to implement Contract Owner initiated or
approved transactions, or (ii) as required by state and/or
federal laws or regulations or judicial or other legal precedent
of general application (hereinafter referred to as a "Legally
Required Redemption") or (iii) as permitted by an order of the
Securities and Exchange Commission pursuant to Section 26(b) of
the 1940 Act. Upon request, the Company will promptly furnish to
the Fund the opinion of counsel for the Company (which counsel
shall be reasonably satisfactory to the Fund) to the effect that
any redemption pursuant to clause (ii) above is a Legally
Required Redemption. Furthermore, except in cases where permitted
under the terms of the Contracts, the Company shall not prevent
Contract Owners from allocating payments to a Portfolio that was
otherwise available under the Contracts without first giving the
Fund 90 days prior written notice of its intention to do so.
ARTICLE XI. Notices
Any notice shall be sufficiently given when sent by
registered or certified mail to the other party at the address of
such party set forth below or at such other address as such party
may from time to time specify in writing to the other party.
If to the Fund:
Morgan Stanley Universal Funds, Inc.
c/o Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, New York 10020
Attention: Harold J. Schaaff, Jr., Esq.
If to Adviser:
Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, New York 10020
Attention: Harold J. Schaaff, Jr., Esq.
If to Adviser:
Miller Anderson & Sherrerd, LLP
One Tower Bridge
West Conshohocken, Pennsylvania 19428
Attention: Lorraine Truten
If to the Company:
_____________________________________
_____________________________________
_____________________________________
Attention: __________________________
ARTICLE XII. Miscellaneous
12.1. All persons dealing with the Fund must look solely
to the property of the Fund for the enforcement of any claims
against the Fund as neither the Board, officers, agents or
shareholders assume any personal liability for obligations
entered into on behalf of the Fund.
12.2. Subject to the requirements of legal process and
regulatory authority, each party hereto shall treat as
confidential the names and addresses of the owners of the
Contracts and all information reasonably identified as
confidential in writing by any other party hereto and, except as
permitted by this Agreement, shall not disclose, disseminate or
utilize such names and addresses and other confidential
information until such time as it may come into the public domain
without the express written consent of the affected party.
12.3. The captions in this Agreement are included for
convenience of reference only and in no way define or delineate
any of the provisions hereof or otherwise affect their
construction or effect.
12.4. This Agreement may be executed simultaneously in two
or more counterparts, each of which taken together shall
constitute one and the same instrument.
12.5. If any provision of this Agreement shall be held or
made invalid by a court decision, statute, rule or otherwise, the
remainder of the Agreement shall not be affected thereby.
12.6. Each party hereto shall cooperate with each other
party and all appropriate governmental authorities (including
without limitation the Securities and Exchange Commission, the
National Association of Securities Dealers and state insurance
regulators) and shall permit such authorities reasonable access
to its books and records in connection with any investigation or
inquiry relating to this Agreement or the transactions
contemplated hereby. Notwithstanding the generality of the
foregoing, each party hereto further agrees to furnish the
California Insurance Commissioner with any information or reports
in connection with services provided under this Agreement which
such Commissioner may request in order to ascertain whether the
insurance operations of the Company are being conducted in a
manner consistent with the California Insurance Regulations and
any other applicable law or regulations.
12.7. The rights, remedies and obligations contained in
this Agreement are cumulative and are in addition to any and all
rights, remedies and obligations at law or in equity, which the
parties hereto are entitled to under state and federal laws.
12.8. This Agreement or any of the rights and obligations
hereunder may not be assigned by any party without the prior
written consent of all parties hereto; provided, however, that an
Adviser may assign this Agreement or any rights or obligations
hereunder to any affiliate of or company under common control
with the Adviser, if such assignee is duly licensed and
registered to perform the obligations of the Adviser under this
Agreement.
12.9 The Company shall furnish, or shall cause to be
furnished, to the Fund or its designee copies of the following
reports:
(a) the Company's annual statement (prepared under
statutory accounting principles) and annual report
(prepared under generally accepted accounting principles
("GAAP"), if any), as soon as practical and in any event
within 90 days after the end of each fiscal year;
(b) the Company's quarterly statements (statutory)
(and GAAP, if any), as soon as practical and in any event
within 45 days after the end of each quarterly period:
(c) any financial statement, proxy statement,
notice or report of the Company sent to stockholders
and/or policyholders, as soon as practical after the
delivery thereof to stockholders;
(d) any registration statement (without exhibits)
and financial reports of the Company filed with the
Securities and Exchange Commission or any state insurance
regulator, as soon as practical after the filing thereof;
(e) any other report submitted to the Company by
independent accountants in connection with any annual,
interim or special audit made by them of the books of the
Company, as soon as practical after the receipt thereof.
IN WITNESS WHEREOF, each of the parties hereto has caused
this Agreement to be executed in its name and on its behalf by
its duly authorized representative and its seal to be hereunder
affixed hereto as of the date specified above.
<PAGE>
[NAME OF INSURANCE COMPANY]
By: ______________________________
Name:
Title:
MORGAN STANLEY UNIVERSAL FUNDS, INC.
By: ______________________________
Name:
Title:
MORGAN STANLEY ASSET MANAGEMENT INC.
By: ______________________________
Name:
Title:
MILLER ANDERSON & SHERRERD, LLP
By: ______________________________
Name:
Title:
<PAGE>
Draft
PARTICIPATION AGREEMENT
Among
MORGAN STANLEY UNIVERSAL FUNDS, INC.,
MORGAN STANLEY ASSET MANAGEMENT INC.
MILLER ANDERSON & SHERRERD, LLP
and
[NAME OF INSURANCE COMPANY]
DATED AS OF
------------, ----
<PAGE>
THIS AGREEMENT, made and entered into as of the day of
________, 1998 by and among [NAME OF INSURANCE COMPANY] (hereinafter
the "Company"), an _______ corporation, on its own behalf and on behalf
of each separate account of the Company set forth on Schedule A hereto
as may be amended from time to time (each such account hereinafter
referred to as the "Account"), and GOLDMAN SACHS VARIABLE INSURANCE
TRUST (hereinafter the "Fund"), a Delaware unincorporated business
trust, GOLDMAN, SACHS & CO.
(hereinafter the "Adviser"), a New York limited partnership.
WHEREAS, the Fund engages in business as an open-end management
investment company and is available to act as (i) the investment vehicle for
separate accounts established by insurance companies for individual and group
life insurance policies and annuity contracts with variable accumulation and/or
pay-out provisions (hereinafter referred to individually and/or collectively as
"Variable Insurance Products") and (ii) the investment vehicle for certain
qualified pension and retirement plans (hereinafter "Qualified Plans"); and
WHEREAS, insurance companies desiring to utilize the Fund as an
investment vehicle under their Variable Insurance Contracts enter into
participation agreements with the Fund and the Adviser (the "Participating
Insurance Companies");
WHEREAS, shares of the Fund are divided into several series of shares,
each representing the interest in a particular managed portfolio of securities
and other assets, any one or more of which may be made available under this
Agreement, as may be amended from time to time by mutual agreement of the
parties hereto (each such series hereinafter referred to as a "Portfolio"); and
WHEREAS, the Fund has obtained an order from the Securities and
Exchange Commission, dated September 19, 1996 (File No. 812-10118), granting
Participating Insurance Companies and Variable Insurance Product separate
accounts exemptions from the provisions of Sections 9(a), 13(a), 15(a), and
15(b) of the Investment Company Act of 1940, as amended (hereinafter the "1940
Act"), and Rules 6e-2(b)(15) and 6e-3(T)(b)(15) thereunder, to the extent
necessary to permit shares of the Fund to be sold to and held by Variable
Annuity Product separate accounts of both affiliated and unaffiliated life
insurance companies and Qualified Plans (hereinafter the "Shared Funding
Exemptive Order"); and
WHEREAS, the Fund is registered as an open-end management investment
company under the 1940 Act and its shares are registered under the Securities
Act of 1933, as amended (hereinafter the "1933 Act"); and
WHEREAS, each Adviser is duly registered as an investment adviser under
the Investment Advisers Act of 1940, as amended, and any applicable state
securities laws; and
WHEREAS, each Adviser manages certain Portfolios of the Fund; and
WHEREAS, ________________________ (the "Underwriter") is registered as
a broker/dealer under the Securities Exchange Act of 1934, as amended
(hereinafter the "1934 Act"), is a member in good standing of the National
Association of Securities Dealers, Inc. (hereinafter "NASD") and serves as
principal underwriter of the shares of the Fund; and
WHEREAS, the Company has registered or will register certain Variable
Insurance Products under the 1933 Act; and
WHEREAS, each Account is a duly organized, validly existing segregated
asset account, established by resolution or under authority of the Board of
Directors of the Company, on the date shown for such Account on Schedule A
hereto, to set aside and invest assets attributable to the aforesaid Variable
Insurance Product; and
WHEREAS, the Company has registered or will register each Account as a
unit investment trust under the 1940 Act; and
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, the Company intends to purchase, on behalf of each Account, shares
in the Portfolios set forth in Schedule B attached to this Agreement, to fund
certain of the aforesaid Variable Insurance Products and the Underwriter is
authorized to sell such shares to each such Account at net asset value;
NOW, THEREFORE, in consideration of their mutual promises, the Company,
the Fund and the Underwriter agree as follows:
ARTICLE I. Purchase of Fund Shares
1.1. The Fund agrees to make available for purchase by the Company
shares of the Fund and shall execute orders placed for each Account on a daily
basis at the net asset value next computed after receipt by the Fund or its
designee of such order. For purposes of this Section 1.1, the Company shall be
the designee of the Fund for receipt of such orders from each Account and
receipt by such designee shall constitute receipt by the Fund; provided that the
Fund receives notice of such order by 10:00 a.m. Eastern time on the next
following Business Day. "Business Day" shall mean any day on which the New York
Stock Exchange is open for trading and on which the Fund calculates its net
asset value pursuant to the rules of the Securities and Exchange Commission.
1.2. The Fund, so long as this Agreement is in effect, agrees to make
its shares available indefinitely for purchase at the applicable net asset value
per share by the Company and its Accounts on those days on which the Fund
calculates its net asset value pursuant to rules of the Securities and Exchange
Commission and the Fund shall use reasonable efforts to calculate such net asset
value on each day which the New York Stock Exchange is open for trading.
Notwithstanding the foregoing, the Board of Directors of the Fund (hereinafter
the "Board") may refuse to permit the Fund to sell shares of any Portfolio to
any person, or suspend or terminate the offering of shares of any Portfolio if
such action is required by law or by regulatory authorities having jurisdiction
or is, in the sole discretion of the Board acting in good faith and in light of
their fiduciary duties under federal and any applicable state laws, necessary in
the best interests of the shareholders of such Portfolio.
1.3. The Fund agrees that shares of the Fund will be sold only to
Participating Insurance Companies and their separate accounts and to certain
Qualified Plans. No shares of any Portfolio will be sold to the general public.
1.4. The Fund agrees to redeem for cash, on the Company's request, any
full or fractional shares of the Fund held by the Company, executing such
requests on a daily basis at the net asset value next computed after receipt by
the Fund or its designee of the request for redemption. For purposes of this
Section 1.4, the Company shall be the designee of the Fund for receipt of
requests for redemption from each Account and receipt by such designee shall
constitute receipt by the Fund, provided that the Fund receives notice of such
request for redemption on the next following Business Day.
1.5. The Company agrees that purchases and redemption's of Portfolio
shares offered by the then current prospectus of the Fund shall be made in
accordance with the provisions of such prospectus. The Variable Insurance
Products issued by the Company, under which amounts may be invested in the Fund
(hereinafter the "Contracts"), are listed on Schedule A attached hereto and
incorporated herein by reference, as such Schedule A may be amended from time to
time by mutual written agreement of all of the parties hereto. The Company will
give the Fund and the Adviser 45 days written notice of its intention to make
available in the future, as a funding vehicle under the Contracts, any other
investment company.
1.6. The Company shall pay for Fund shares on the next Business Day
after an order to purchase Fund shares is made in accordance with the provisions
of Section 1.1 hereof. Payment shall be in federal funds transmitted by wire.
For purposes of Section 2.10 and 2.11, upon receipt by the Fund of the federal
funds so wired, such funds shall cease to be the responsibility of the Company
and shall become the responsibility of the Fund.
1.7. Issuance and transfer of the Fund's shares will be by book entry
only. Stock certificates will not be issued to the Company or any Account.
Shares ordered from the Fund will be recorded in an appropriate title for each
Account or the appropriate subaccount of each Account.
1.8. The Fund shall furnish same day notice (by wire or telephone,
followed by written confirmation) to the Company of any income, dividends or
capital gain distributions payable on the Fund's shares. The Company hereby
elects to receive all such income dividends and capital gain distributions as
are payable on the Portfolio shares in additional shares of that Portfolio. The
Company reserves the right to revoke this election and to receive all such
income dividends and capital gain distributions in cash. The Fund shall notify
the Company of the number of shares so issued as payment of such dividends and
distributions.
1.9. The Fund shall make the net asset value per share for each
Portfolio available to the Company on a daily basis as soon as reasonably
practical after the net asset value per share is calculated (normally by 6:30
p.m. Eastern time) and shall use its best efforts to make such net asset value
per share available by 7:00 p.m.
Eastern time.
ARTICLE II. Representations and Warranties
2.1. The Company represents and warrants that the Contracts are or will
be registered under the 1933 Act; that the Contracts will be issued and sold in
compliance in all material respects with all applicable federal and state laws
and that the sale of the Contracts shall comply in all material respects with
state insurance suitability requirements. The Company further represents and
warrants that it is an insurance company duly organized and in good standing
under applicable law and that it has legally and validly established each
Account prior to any issuance or sale thereof as a segregated asset account
under Section [Citation of state separate account law] and has registered or,
prior to any issuance or sale of the Contracts, will register each Account as a
unit investment trust in accordance with the provisions of the 1940 Act to serve
as a segregated investment account for the Contracts.
2.2. The Fund represents and warrants that Fund shares sold pursuant to
this Agreement shall be registered under the 1933 Act, duly authorized for
issuance and sold in compliance with the laws of the State of Maryland and all
applicable federal and state securities laws and that the Fund is and shall
remain registered under the 1940 Act. The Fund shall amend the registration
statement for its shares under the 1933 Act and the 1940 Act from time to time
as required in order to effect the continuous offering of its shares. The Fund
shall register and qualify the shares for sale in accordance with the laws of
the various states only if and to the extent deemed advisable by the Fund.
2.3. The Fund represents that it is currently qualified as a Regulated
Investment Company under Subchapter M of the Internal Revenue Code of 1986, as
amended (the "Code"), and that it will make every effort to maintain such
qualification (under Subchapter M or any successor or similar provision) and
that it will notify the Company immediately upon having a reasonable basis for
believing that it has ceased to so qualify or that it might not so qualify in
the future.
2.4. The Company represents that the Contracts are currently treated as
life insurance policies or annuity contracts, under applicable provisions of the
Code and that it will make every effort to maintain such treatment and that it
will notify the Fund immediately upon having a reasonable basis for believing
that the Contracts have ceased to be so treated or that they might not be so
treated in the future.
2.5. The Fund represents that to the extent that it decides to finance
distribution expenses pursuant to Rule 12b-1 under the 1940 Act, the Fund
undertakes to have a board of directors, a majority of whom are not interested
persons of the Fund, formulate and approve any plan under Rule 12b-1 to finance
distribution expenses.
2.6. The Fund makes no representation as to whether any aspect of its
operations (including, but not limited to, fees and expenses and investment
policies) complies with the insurance laws or regulations of the various states
except that the Fund represents that the Fund's investment policies, fees and
expenses are and shall at all times remain in compliance with the laws of the
State of Maryland and the Fund represents that their respective operations are
and shall at all times remain in material compliance with the laws of the State
of Maryland to the extent required to perform this Agreement.
2.7. The Fund represents that it is lawfully organized and validly
existing under the laws of the State of Maryland and that it does and will
comply in all material respects with the 1940 Act.
2.8. Each Adviser represents and warrants that it is and shall remain
duly registered in all material respects under all applicable federal and state
securities laws and that it will perform its obligations for the Fund in
compliance in all material respects with the laws of its state of domicile and
any applicable state and federal securities laws.
2.9. The Fund represents and warrants that its directors, officers,
employees, and other individuals/entities dealing with the money and/or
securities of the Fund are and shall continue to be at all times covered by a
blanket fidelity bond or similar coverage for the benefit of the Fund in an
amount not less than the minimal coverage as required currently by Rule 17g-(1)
of the 1940 Act or related provisions as may be promulgated from time to time.
The aforesaid blanket fidelity bond shall include coverage for larceny and
embezzlement and shall be issued by a reputable bonding company.
2.10. The Company represents and warrants that all of its directors,
officers, employees, investment advisers, and other individuals/entities dealing
with the money and/or securities of the Fund are covered by a blanket fidelity
bond or similar coverage, in an amount not less $5 million. The aforesaid
includes coverage for larceny and embezzlement is issued by a reputable bonding
company. The Company agrees to make all reasonable efforts to see that this bond
or another bond containing these provisions is always in effect, and agrees to
notify the Fund and the Underwriter in the event that such coverage no longer
applies.
ARTICLE III. Prospectuses, Reports to Shareholders and Proxy Statements; Voting
3.1. The Fund or its designee shall provide the Company with as many
printed copies of the Fund's current prospectus and statement of additional
information as the Company may reasonably request. If requested by the Company,
in lieu of providing printed copies the Fund shall provide camera-ready film or
computer diskettes containing the Fund's prospectus and statement of additional
information, and such other assistance as is reasonably necessary in order for
the Company once each year (or more frequently if the prospectus and/or
statement of additional information for the Fund is amended during the year) to
have the prospectus for the Contracts and the Fund's prospectus printed together
in one document, and to have the statement of additional information for the
Fund and the statement of additional information for the Contracts printed
together in one document. Alternatively, the Company may print the Fund's
prospectus and/or its statement of additional information in combination with
other fund companies' prospectuses and statements of additional information.
3.2. Except as provided in this Section 3.2., all expenses of preparing,
setting in type and printing and distributing Fund prospectuses and statements
of additional information shall be the expense of the Company. For prospectuses
and statements of additional information provided by the Company to its existing
owners of Contracts who currently own shares of one or more of the Fund's
Portfolios, in order to update disclosure as required by the 1933 Act and/or the
1940 Act, the cost of printing shall be borne by the Fund. If the Company
chooses to receive camera-ready film or computer diskettes in lieu of receiving
printed copies of the Fund's prospectus, the Fund shall bear the cost of
typesetting to provide the Fund's prospectus to the Company in the format in
which the Fund is accustomed to formatting prospectuses, and the Company shall
bear the expense of adjusting or changing the format to conform with any of its
prospectuses. In such event, the Fund will reimburse the Company in an amount
equal to the product of x and y where x is the number of such prospectuses
distributed to owners of the Contracts who currently own shares of one or more
of the Fund's Portfolios, and y is the Fund's per unit cost of typesetting and
printing the Fund's prospectus. The same procedures shall be followed with
respect to the Fund's statement of additional information. The Company agrees to
provide the Fund or its designee with such information as may be reasonably
requested by the Fund to assure that the Fund's expenses do not include the cost
of printing, typesetting, and distributing any prospectuses or statements of
additional information other than those actually distributed to existing owners
of the Contracts who currently own shares of one or more of the Fund's
Portfolios.
3.3. The Fund's statement of additional information shall be obtainable
from the Fund, the Company or such other person as the Fund may designate, as
agreed upon by the parties.
3.4. The Fund, at its expense, shall provide the Company with copies of
its proxy statements, reports to shareholders, and other communications (except
for prospectuses and statements of additional information, which are covered in
section 3.1) to shareholders in such quantity as the Company shall reasonably
require for distributing to Contract owners.
3.5. If and to the extent required by law the Company shall:
(i) solicit voting instructions from Contract owners;
(ii) vote the Fund shares in accordance with instructions
received from Contract owners; and
(iii)vote Fund shares for which no instructions have been
received in the same proportion as Fund shares of such
Portfolio for which instructions have been received,
so long as and to the extent that the Securities and Exchange Commission
continues to interpret the 1940 Act to require pass-through voting privileges
for variable contract owners. The Company reserves the right to vote Fund shares
held in any segregated asset account in its own right, to the extent permitted
by law. The Fund and the Company shall follow the procedures, and shall have the
corresponding responsibilities, for the handling of proxy and voting instruction
solicitations, as set forth in Schedule C attached hereto and incorporated
herein by reference. Participating Insurance Companies shall be responsible for
ensuring that each of their separate accounts participating in the Fund
calculates voting privileges in a manner consistent with the standards set forth
on Schedule C, which standards will also be provided to the other Participating
Insurance Companies.
3.6. The Fund will comply with all provisions of the 1940 Act requiring
voting by shareholders, and in particular the Fund will either provide for
annual meetings or comply with Section 16(c) of the 1940 Act (although the Fund
is not one of the trusts described in Section 16(c) of that Act) as well as with
Sections 16(a) and, if and when applicable, 16(b). Further, the Fund will act in
accordance with the Securities and Exchange Commission's interpretation of the
requirements of Section 16(a) with respect to periodic elections of directors
and with whatever rules the Commission may promulgate with respect thereto.
3.7. The Fund shall use reasonable efforts to provide Fund
prospectuses, reports to shareholders, proxy materials and other Fund
communications (or camera-ready equivalents) to the Company sufficiently in
advance of the Company's mailing dates to enable the Company to complete, at
reasonable cost, the printing, assembling and/or distribution of the
communications in accordance with applicable laws and regulations.
ARTICLE IV. Sales Material and Information
4.1. The Company shall furnish, or shall cause to be furnished, to the
Fund or its designee, each piece of sales literature or other promotional
material in which the Fund or the Adviser(s) is named, at least ten Business
Days prior to its use. No such material shall be used if the Fund or its
designee reasonably objects to such use within ten Business Days after receipt
of such material.
4.2. The Company shall not give any information or make any
representations or statements on behalf of the Fund or concerning the Fund in
connection with the sale of the Contracts other than the information or
representations contained in the registration statement or prospectus for the
Fund shares, as such registration statement and prospectus may be amended or
supplemented from time to time, or in reports or proxy statements for the Fund,
or in sales literature or other promotional material approved by the Fund or its
designee, except with the permission of the Fund.
4.3. The Fund or its designee shall furnish, or shall cause to be
furnished, to the Company or its designee, each piece of sales literature or
other promotional material in which the Company and/or its separate account(s)
is named at least ten Business Days prior to its use. No such material shall be
used if the Company or its designee reasonably objects to such use within ten
Business Days after receipt of such material.
4.4. The Fund and the Adviser shall not give any information or make
any representations on behalf of the Company or concerning the Company, each
Account, or the Contracts, other than the information or representations
contained in a registration statement or prospectus for the Contracts, as such
registration statement and prospectus may be amended or supplemented from time
to time, or in published reports for each Account which are in the public domain
or approved by the Company for distribution to Contract owners, or in sales
literature or other promotional material approved by the Company or its
designee, except with the permission of the Company.
4.5. The Fund will provide to the Company at least one complete copy of
all registration statements, prospectuses, statements of additional information,
reports, proxy statements, sales literature and other promotional materials,
applications for exemptions, requests for no-action letters, and all amendments
to any of the above, that relate to the Fund or its shares, which are relevant
to the Company or the Contracts.
4.6. The Company will provide to the Fund at least one complete copy of
all registration statements, prospectuses, statements of additional information,
reports, solicitations for voting instructions, sales literature and other
promotional materials, applications for exemptions, requests for no action
letters, and all amendments to any of the above, that relate to the investment
in the Fund under the Contracts.
4.7. For purposes of this Article IV, the phrase "sales literature or
other promotional material" includes, but is not limited to, any of the
following that refer to the Fund or any affiliate of the Fund: advertisements
(such as material published, or designed for use in, a newspaper, magazine, or
other periodical, radio, television, telephone or tape recording, videotape
display, signs or billboards, motion pictures, or other public media), sales
literature (i.e., any written communication distributed or made generally
available to customers or the public, including brochures, circulars, research
reports, market letters, form letters, seminar texts, reprints or excerpts of
any other advertisement, sales literature, or published article), educational or
training materials or other communications distributed or made generally
available to some or all agents or employees, and registration statements,
prospectuses, statements of additional information, shareholder reports, and
proxy materials.
ARTICLE V. Fees and Expenses
5.1. The Fund shall pay no fee or other compensation to the Company
under this Agreement, except that if the Fund or any Portfolio adopts and
implements a plan pursuant to Rule 12b-1 to finance distribution expenses, then
the Underwriter may make payments to the Company or to the underwriter for the
Contracts if and in amounts agreed to by the Underwriter in writing.
5.2. All expenses incident to performance by the Fund under this
Agreement shall be paid by the Fund. The Fund shall see to it that all its
shares are registered and authorized for issuance in accordance with applicable
federal law and, if and to the extent deemed advisable by the Fund, in
accordance with applicable state laws prior to their sale. Except as otherwise
set forth in the Section 3.2 of this Agreement, the Fund shall bear the expenses
for the cost of registration and qualification of the Fund's shares, preparation
and filing of the Fund's prospectus and registration statement, proxy materials
and reports, setting the prospectus in type, setting in type and printing the
proxy materials and reports to shareholders, the preparation of all statements
and notices required by any federal or state law, and all taxes on the issuance
or transfer of the Fund's shares.
5.3. The Company shall bear the expenses of distributing the Fund's
prospectus, proxy materials and reports to owners of Contracts issued by the
Company.
ARTICLE VI. Diversification
6.1. The Fund will at all times invest money from the Contracts in such
a manner as to ensure that the Contracts will be treated as variable contracts
under the Code and the regulations issued thereunder. Without limiting the scope
of the foregoing, the Fund will at all times comply with Section 817(h) of the
Code and Treasury Regulation 1.817-5, relating to the diversification
requirements for variable annuity, endowment, or life insurance contracts and
any amendments or other modifications to such Section or Regulations. In the
event of a breach of this Article VI by the Fund, it will take all reasonable
steps (a) to notify Company of such breach and (b) to adequately diversify the
Fund so as to achieve compliance within the grace period afforded by Regulation
817-5.
ARTICLE VII. Potential Conflicts
7.1. The Board will monitor the Fund for the existence of any material
irreconcilable conflict between the interests of the contract owners of all
separate accounts investing in the Fund. An irreconcilable material conflict may
arise for a variety of reasons, including: (a) an action by any state insurance
regulatory authority; (b) a change in applicable federal or state insurance,
tax, or securities laws or regulations, or a public ruling, private letter
ruling, no-action or interpretative letter, or any similar action by insurance,
tax, or securities regulatory authorities; (c) an administrative or judicial
decision in any relevant proceeding; (d) the manner in which the investments of
any Portfolio are being managed; (e) a difference in voting instructions given
by Variable Insurance Product owners; or (f) a decision by a Participating
Insurance Company to disregard the voting instructions of contract owners. The
Board shall promptly inform the Company if it determines that an irreconcilable
material conflict exists and the implications thereof.
7.2. The Company will report any potential or existing conflicts of
which it is aware to the Board. The Company will assist the Board in carrying
out its responsibilities under the Shared Funding Exemptive Order, by providing
the Board with all information reasonably necessary for the Board to consider
any issues raised. This includes, but is not limited to, an obligation by the
Company to inform the Board whenever contract owner voting instructions are
disregarded.
7.3. If it is determined by a majority of the Board, or a majority of
its disinterested members, that a material irreconcilable conflict exists, the
Company and other Participating Insurance Companies shall, at their expense and
to the extent reasonably practicable (as determined by a majority of the
disinterested directors), take whatever steps are necessary to remedy or
eliminate the irreconcilable material conflict, up to and including: (1)
withdrawing the assets allocable to some or all of the separate accounts from
the Fund or any Portfolio and reinvesting such assets in a different investment
medium, including (but not limited to) another Portfolio of the Fund, or
submitting the question whether such segregation should be implemented to a vote
of all affected Contract owners and, as appropriate, segregating the assets of
any appropriate group (i.e., annuity contract owners, life insurance policy
owners, or variable contract owners of one or more Participating Insurance
Companies) that votes in favor of such segregation, or offering to the affected
contract owners the option of making such a change; and (2) establishing a new
registered management investment company or managed separate account.
7.4. If a material irreconcilable conflict arises because of a decision
by the Company to disregard contract owner voting instructions and that decision
represents a minority position or would preclude a majority vote, the Company
may be required, at the Fund's election, to withdraw the affected Account's
investment in the Fund and terminate this Agreement with respect to such Account
(at the Company's expense); provided, however that such withdrawal and
termination shall be limited to the extent required by the foregoing material
irreconcilable conflict as determined by a majority of the disinterested members
of the Board.
7.5. If a material irreconcilable conflict arises because a particular
state insurance regulator's decision applicable to the Company conflicts with
the majority of other state regulators, then the Company will withdraw the
affected Account's investment in the Fund and terminate this Agreement with
respect to such Account within six months after the Board informs the Company in
writing that it has determined that such decision has created an irreconcilable
material conflict; provided, however, that such withdrawal and termination shall
be limited to the extent required by the foregoing material irreconcilable
conflict as determined by a majority of the disinterested members of the Board.
Until the end of the foregoing six month period, the Underwriter and Fund shall
continue to accept and implement orders by the Company for the purchase (and
redemption) of shares of the Fund.
7.6. For purposes of Sections 7.3 through 7.5 of this Agreement, a
majority of the disinterested members of the Board shall determine whether any
proposed action adequately remedies any irreconcilable material conflict, but in
no event will the Fund be required to establish a new funding medium for the
Contracts. The Company shall not be required by Section 7.3 to establish a new
funding medium for the Contracts if an offer to do so has been declined by vote
of a majority of Contract owners materially adversely affected by the
irreconcilable material conflict.
7.7. If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended,
or Rule 6e-3 is adopted, to provide exemptive relief from any provision of the
1940 Act or the rules promulgated thereunder with respect to mixed or shared
funding (as defined in the Shared Funding Exemptive Order) on terms and
conditions materially different from those contained in the Shared Funding
Exemptive Order, then (a) the Fund and/or the Participating Insurance Companies,
as appropriate, shall take such steps as may be necessary to comply with Rules
6e-2 and 6e-3(T), as amended, and Rule 6e-3, as adopted, to the extent such
rules are applicable; and (b) Sections 3.4, 3.5, 7.1, 7.2, 7.3, 7.4, and 7.5 of
this Agreement shall continue in effect only to the extent that terms and
conditions substantially identical to such Sections are contained in such
Rule(s) as so amended or adopted.
ARTICLE VIII. Indemnification
8.1. Indemnification By The Company
8.1(a) The Company agrees to indemnify and hold harmless the Fund and
each member of the Board and officers, and each Adviser and each director and
officer of each Adviser, and each person, if any, who controls the Fund or the
Adviser within the meaning of Section 15 of the 1933 Act (collectively, the
"Indemnified Parties" and individually, "Indemnified Party," for purposes of
this Section 8.1) against any and all losses, claims, damages, liabilities
(including amounts paid in settlement with the written consent of the Company)
or litigation (including legal and other expenses), to which the Indemnified
Parties may become subject under any statute, regulation, at common law or
otherwise, insofar as such losses, claims, damages, liabilities or expenses (or
actions in respect thereof) or settlements are related to the sale or
acquisition of the Fund's shares or the Contracts and:
(i) arise out of or are based upon any untrue statements or
alleged untrue statements of any material fact contained in
the registration statement or prospectus for the Contracts
or contained in the Contracts or sales literature for the
Contracts (or any amendment or supplement to any of the
foregoing), or arise out of or are based upon the omission
or the alleged omission to state therein a material fact
required to be stated therein or necessary to make the
statements therein not misleading, provided that this
agreement to indemnify shall not apply as to any Indemnified
Party if such statement or omission or such alleged
statement or omission was made in reliance upon and in
conformity with information furnished to the Company by or
on behalf of the Fund for use in the registration statement
or prospectus for the Contracts or in the Contracts or sales
literature (or any amendment or supplement) or otherwise for
use in connection with the sale of the Contracts or Fund
shares; or
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the
registration statement, prospectus or sales literature of
the Fund not supplied by the Company, or persons under its
control and other than statements or representations
authorized by the Fund or an Adviser) or unlawful conduct of
the Company or persons under its control, with respect to
the sale or distribution of the Contracts or Fund shares; or
(iii)arise out of or as a result of any untrue statement or
alleged untrue statement of a material fact contained in a
registration statement, prospectus, or sales literature of
the Fund or any amendment thereof or supplement thereto or
the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the
statements therein not misleading if such a statement or
omission was made in reliance upon and in conformity with
information furnished to the Fund by or on behalf of the
Company; or
(iv) arise as a result of any failure by the Company to provide
the services and furnish the materials under the terms of
this Agreement; or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Company in this
Agreement or arise out of or result from any other material
breach of this Agreement by the Company, as limited by and
in accordance with the provisions of Sections 8.1(b) and
8.1(c) hereof.
8.1(b). The Company shall not be liable under this indemnification
provision with respect to any losses, claims, damages, liabilities or litigation
incurred or assessed against an Indemnified Party as such may arise from such
Indemnified Party's willful misfeasance, bad faith, or gross negligence in the
performance of such Indemnified Party's duties or by reason of such Indemnified
Party's reckless disregard of obligations or duties under this Agreement.
8.1(c). The Company shall not be liable under this indemnification
provision with respect to any claim made against an Indemnified Party unless
such Indemnified Party shall have notified the Company in writing within a
reasonable time after the summons or other first legal process giving
information of the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have received notice of
such service on any designated agent), but failure to notify the Company of any
such claim shall not relieve the Company from any liability which it may have to
the Indemnified Party against whom such action is brought otherwise than on
account of this indemnification provision. In case any such action is brought
against the Indemnified Parties, the Company shall be entitled to participate,
at its own expense, in the defense of such action. The Company also shall be
entitled to assume the defense thereof, with counsel satisfactory to the party
named in the action. After notice from the Company to such party of the
Company's election to assume the defense thereof, the Indemnified Party shall
bear the fees and expenses of any additional counsel retained by it, and the
Company will not be liable to such party under this Agreement for any legal or
other expenses subsequently incurred by such party independently in connection
with the defense thereof other than reasonable costs of investigation.
8.1(d). The Indemnified Parties will promptly notify the Company of the
commencement of any litigation or proceedings against them in connection with
the issuance or sale of the Fund shares or the Contracts or the operation of the
Fund.
8.2. Indemnification by the Adviser
8.2(a). Each Adviser agrees, with respect to each Portfolio that it
manages, to indemnify and hold harmless the Company and each of its directors
and officers and each person, if any, who controls the Company within the
meaning of Section 15 of the 1933 Act (collectively, the "Indemnified Parties"
and individually, "Indemnified Party," for purposes of this Section 8.2) against
any and all losses, claims, damages, liabilities (including amounts paid in
settlement with the written consent of the Adviser) or litigation (including
legal and other expenses) to which the Indemnified Parties may become subject
under any statute, regulation, at common law or otherwise, insofar as such
losses, claims, damages, liabilities or expenses (or actions in respect thereof)
or settlements are related to the sale or acquisition of shares of the Portfolio
that it manages or the Contracts and:
(i) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in
the registration statement or prospectus or sales literature
of the Fund (or any amendment or supplement to any of the
foregoing), or arise out of or are based upon the omission
or the alleged omission to state therein a material fact
required to be stated therein or necessary to make the
statements therein not misleading, provided that this
agreement to indemnify shall not apply as to any Indemnified
Party if such statement or omission or such alleged
statement or omission was made in reliance upon and in
conformity with information furnished to the Fund by or on
behalf of the Company for use in the registration statement
or prospectus for the Fund or in sales literature (or any
amendment or supplement) or otherwise for use in connection
with the sale of the Contracts or Portfolio shares; or
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the
registration statement, prospectus or sales literature for
the Contracts not supplied by the Fund or persons under its
control and other than statements or representations
authorized by the Company) or unlawful conduct of the Fund,
Adviser(s) or Underwriter or persons under their control,
with respect to the sale or distribution of the Contracts or
Portfolio shares; or
(iii)arise out of or as a result of any untrue statement or
alleged untrue statement of a material fact contained in a
registration statement, prospectus, or sales literature
covering the Contracts, or any amendment thereof or
supplement thereto, or the omission or alleged omission to
state therein a material fact required to be stated therein
or necessary to make the statement or statements therein not
misleading, if such statement or omission was made in
reliance upon information furnished to the Company by or on
behalf of the Fund; or
(iv) arise as a result of any failure by the Fund to provide the
services and furnish the materials under the terms of this
Agreement; or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Adviser in this
Agreement or arise out of or result from any other material
breach of this Agreement by the Adviser; as limited by and
in accordance with the provisions of Sections 8.2(b) and
8.2(c) hereof.
8.2(b). An Adviser shall not be liable under this indemnification provision
with respect to any losses, claims, damages, liabilities or litigation incurred
or assessed against an Indemnified Party as such may arise from such Indemnified
Party's willful misfeasance, bad faith, or gross negligence in the performance
of such Indemnified Party's duties or by reason of such Indemnified Party's
reckless disregard of obligations and duties under this Agreement.
8.2(c). An Adviser shall not be liable under this indemnification provision
with respect to any claim made against an Indemnified Party unless such
Indemnified Party shall have notified the Adviser in writing within a reasonable
time after the summons or other first legal process giving information of the
nature of the claim shall have been served upon such Indemnified Party (or after
such Indemnified Party shall have received notice of such service on any
designated agent), but failure to notify the Adviser of any such claim shall not
relieve the Adviser from any liability which it may have to the Indemnified
Party against whom such action is brought otherwise than on account of this
indemnification provision. In case any such action is brought against the
Indemnified Parties, the Adviser will be entitled to participate, at its own
expense, in the defense thereof. The Adviser also shall be entitled to assume
the defense thereof, with counsel satisfactory to the party named in the action.
After notice from the Adviser to such party of the Adviser's election to assume
the defense thereof, the Indemnified Party shall bear the fees and expenses of
any additional counsel retained by it, and the Adviser will not be liable to
such party under this Agreement for any legal or other expenses subsequently
incurred by such party independently in connection with the defense thereof
other than reasonable costs of investigation.
8.2(d). The Company agrees promptly to notify the Adviser of the
commencement of any litigation or proceedings against it or any of its officers
or directors in connection with the issuance or sale of the Contracts or the
operation of each Account.
8.3. Indemnification by the Fund
8.3(a). The Fund agrees to indemnify and hold harmless the Company, and
each of its directors and officers and each person, if any, who controls the
Company within the meaning of Section 15 of the 1933 Act (hereinafter
collectively, the "Indemnified Parties" and individually, "Indemnified Party,"
for purposes of this Section 8.3) against any and all losses, claims, damages,
liabilities (including amounts paid in settlement with the written consent of
the Fund) or litigation (including legal and other expenses) to which the
Indemnified Parties may become subject under any statute, regulation, at common
law or otherwise, insofar as such losses, claims, damages, liabilities or
expenses (or actions in respect thereof) or settlements result from the gross
negligence, bad faith or willful misconduct of the Board or any member thereof,
are related to the operations of the Fund and:
(i) arise as a result of any failure by the Fund to provide the
services and furnish the materials under the terms of this
Agreement; or
(ii) arise out of or result from any material breach of any
representation and/or warranty made by the Fund in this
Agreement or arise out of or result from any other material
breach of this Agreement by the Fund;
8.3(b). The Fund shall not be liable under this indemnification provision
with respect to any losses, claims, damages, liabilities or litigation incurred
or assessed against an Indemnified Party as may arise from such Indemnified
Party's willful misfeasance, bad faith, or gross negligence in the performance
of such Indemnified Party's duties or by reason of such Indemnified Party's
reckless disregard of obligations and duties under this Agreement.
8.3(c). The Fund shall not be liable under this indemnification provision
with respect to any claim made against an Indemnified Party unless such
Indemnified Party shall have notified the Fund in writing within a reasonable
time after the summons or other first legal process giving information of the
nature of the claim shall have been served upon such Indemnified Party (or after
such Indemnified Party shall have received notice of such service on any
designated agent), but failure to notify the Fund of any such claim shall not
relieve the Fund from any liability which it may have to the Indemnified Party
against whom such action is brought otherwise than on account of this
indemnification provision. In case any such action is brought against the
Indemnified Parties, the Fund will be entitled to participate, at its own
expense, in the defense thereof. The Fund also shall be entitled to assume the
defense thereof, with counsel satisfactory to the party named in the action.
After notice from the Fund to such party of the Fund's election to assume the
defense thereof, the Indemnified Party shall bear the fees and expenses of any
additional counsel retained by it, and the Fund will not be liable to such party
under this Agreement for any legal or other expenses subsequently incurred by
such party independently in connection with the defense thereof other than
reasonable costs of investigation.
8.3(d). The Company agrees promptly to notify the Fund of the commencement
of any litigation or proceedings against it or any of its respective officers or
directors in connection with this Agreement, the issuance or sale of the
Contracts, with respect to the operation of either Account, or the sale or
acquisition of shares of the Fund.
ARTICLE IX. Applicable Law
9.1. This Agreement shall be construed and the provisions hereof
interpreted under and in accordance with the laws of the State of New York.
9.2. This Agreement shall be subject to the provisions of the 1933, 1934
and 1940 Acts, and the rules and regulations and rulings thereunder, including
such exemptions from those statutes, rules and regulations as the Securities and
Exchange Commission may grant (including, but not limited to, the Shared Funding
Exemptive Order) and the terms hereof shall be interpreted and construed in
accordance therewith.
ARTICLE X. Termination
10.1. This Agreement shall continue in full force and effect until the
first to occur of:
(a) termination by any party for any reason by sixty (60) days
advance written notice delivered to the other parties; or
(b) termination by the Company by written notice to the Fund and
the Adviser with respect to any Portfolio based upon the
Company's determination that shares of such Portfolio is not
reasonably available to meet the requirements of the
Contracts; or
(c) termination by the Company by written notice to the Fund and
the Adviser with respect to any Portfolio in the event any
of the Portfolio's shares are not registered, issued or sold
in accordance with applicable state and/or federal law or
such law precludes the use of such shares as the underlying
investment media of the Contracts issued or to be issued by
the Company; or
(d) termination by the Company by written notice to the Fund and
the Adviser with respect to any Portfolio in the event that
such Portfolio ceases to qualify as a Regulated Investment
Company under Subchapter M of the Code or under any
successor or similar provision, or if the Company reasonably
believes that the Fund may fail to so qualify; or
(e) termination by the Company by written notice to the Fund and
the Adviser with respect to any Portfolio in the event that
such Portfolio falls to meet the diversification
requirements specified in Article VI hereof; or
(f) termination by either the Fund by written notice to the
Company if the Fund shall determine, in its sole judgment
exercised in good faith, that the Company and/or its
affiliated companies has suffered a material adverse change
in its business, operations, financial condition or
prospects since the date of this Agreement or is the subject
of material adverse publicity, or
(g) termination by the Company by written notice to the Fund and
the Adviser, if the Company shall determine, in its sole
judgment exercised in good faith, that either the Fund or
the Adviser has suffered a material adverse change in its
business, operations, financial condition or prospects since
the date of this Agreement or is the subject of material
adverse publicity; or
(h) termination by the Fund or the Adviser by written notice to
the Company, if the Company gives the Fund and the Adviser
the written notice specified in Section 1.5 hereof and at
the time such notice was given there was no notice of
termination outstanding under any other provision of this
Agreement; provided, however any termination under this
Section 10.1(h) shall be effective forty five (45) days
after the notice specified in Section 1.5 was given.
10.2. Notwithstanding any termination of this Agreement, the Fund shall at
the option of the Company, continue to make available additional shares of the
Fund pursuant to the terms and conditions of this Agreement, for all Contracts
in effect on the effective date of termination of this Agreement (hereinafter
referred to as "Existing, Contracts"). Specifically, without limitation, the
owners of the Existing Contracts shall be permitted to direct reallocation of
investments in the Fund, redemption of investments in the Fund and/or investment
in the Fund upon the making of additional purchase payments under the Existing
Contracts. The parties agree that this Section 10.2 shall not apply to any
terminations under Article VII and the effect of such Article VII terminations
shall be governed by Article VII of this Agreement.
10.3. The Company shall not redeem Fund shares attributable to the
Contracts (as distinct from Fund shares attributable to the Company's assets
held in the Account) except (i) as necessary to implement Contract Owner
initiated or approved transactions, or (ii) as required by state and/or federal
laws or regulations or judicial or other legal precedent of general application
(hereinafter referred to as a "Legally Required Redemption") or (iii) as
permitted by an order of the Securities and Exchange Commission pursuant to
Section 26(b) of the 1940 Act. Upon request, the Company will promptly furnish
to the Fund the opinion of counsel for the Company (which counsel shall be
reasonably satisfactory to the Fund) to the effect that any redemption pursuant
to clause (ii) above is a Legally Required Redemption. Furthermore, except in
cases where permitted under the terms of the Contracts, the Company shall not
prevent Contract Owners from allocating payments to a Portfolio that was
otherwise available under the Contracts without first giving the Fund 90 days
prior written notice of its intention to do so.
ARTICLE XI. Notices
Any notice shall be sufficiently given when sent by registered or certified
mail to the other party at the address of such party set forth below or at such
other address as such party may from time to time specify in writing to the
other party.
If to the Fund:
If to Adviser:
If to the Company:
======================================
-------------------------------------- Attention:
__________________________
ARTICLE XII. Miscellaneous
12.1. All persons dealing with the Fund must look solely to the property of
the Fund for the enforcement of any claims against the Fund as neither the
Board, officers, agents or shareholders assume any personal liability for
obligations entered into on behalf of the Fund.
12.2. Subject to the requirements of legal process and regulatory
authority, each party hereto shall treat as confidential the names and addresses
of the owners of the Contracts and all information reasonably identified as
confidential in writing by any other party hereto and, except as permitted by
this Agreement, shall not disclose, disseminate or utilize such names and
addresses and other confidential information until such time as it may come into
the public domain without the express written consent of the affected party.
12.3. The captions in this Agreement are included for convenience of
reference only and in no way define or delineate any of the provisions hereof or
otherwise affect their construction or effect.
12.4. This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together shall constitute one and the same
instrument.
12.5. If any provision of this Agreement shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Agreement shall
not be affected thereby.
12.6. Each party hereto shall cooperate with each other party and all
appropriate governmental authorities (including without limitation the
Securities and Exchange Commission, the National Association of Securities
Dealers and state insurance regulators) and shall permit such authorities
reasonable access to its books and records in connection with any investigation
or inquiry relating to this Agreement or the transactions contemplated hereby.
Notwithstanding the generality of the foregoing, each party hereto further
agrees to furnish the California Insurance Commissioner with any information or
reports in connection with services provided under this Agreement which such
Commissioner may request in order to ascertain whether the insurance operations
of the Company are being conducted in a manner consistent with the California
Insurance Regulations and any other applicable law or regulations.
12.7. The rights, remedies and obligations contained in this Agreement are
cumulative and are in addition to any and all rights, remedies and obligations
at law or in equity, which the parties hereto are entitled to under state and
federal laws.
12.8. This Agreement or any of the rights and obligations hereunder may not
be assigned by any party without the prior written consent of all parties
hereto; provided, however, that an Adviser may assign this Agreement or any
rights or obligations hereunder to any affiliate of or company under common
control with the Adviser, if such assignee is duly licensed and registered to
perform the obligations of the Adviser under this Agreement.
12. 9 The Company shall furnish, or shall cause to be furnished, to the
Fund or its designee copies of the following reports:
(a) the Company's annual statement (prepared under statutory
accounting principles) and annual report (prepared under
generally accepted accounting principles ("GAAP"), if any), as
soon as practical and in any event within 90 days after the end
of each fiscal year;
(b) the Company's quarterly statements (statutory) (and GAAP, if
any), as soon as practical and in any event within 45 days after
the end of each quarterly period:
(c) any financial statement, proxy statement, notice or report of the
Company sent to stockholders and/or policyholders, as soon as
practical after the delivery thereof to stockholders;
(d) any registration statement (without exhibits) and financial
reports of the Company filed with the Securities and Exchange
Commission or any state insurance regulator, as soon as practical
after the filing thereof;
(e) any other report submitted to the Company by independent
accountants in connection with any annual, interim or special
audit made by them of the books of the Company, as soon as
practical after the receipt thereof.
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to
be executed in its name and on its behalf by its duly authorized representative
and its seal to be hereunder affixed hereto as of the date specified above.
<PAGE>
[NAME OF INSURANCE COMPANY]
By: ______________________________
Name:
Title:
GOLDMAN SACHS VARIABLE INSURANCE TRUST
By: ______________________________
Name:
Title:
GOLDMAN, SACHS & CO.
By: ______________________________
Name:
Title:
<PAGE>
Draft
PARTICIPATION AGREEMENT
Among
MORGAN STANLEY UNIVERSAL FUNDS, INC.,
MORGAN STANLEY ASSET MANAGEMENT INC.
MILLER ANDERSON & SHERRERD, LLP
and
[NAME OF INSURANCE COMPANY]
DATED AS OF
------------, ----
<PAGE>
THIS AGREEMENT, made and entered into as of the day of ________, 1998 by
and among [NAME OF INSURANCE COMPANY] (hereinafter the "Company"), an _______
corporation, on its own behalf and on behalf of each separate account of the
Company set forth on Schedule A hereto as may be amended from time to time (each
such account hereinafter referred to as the "Account"), and NEUBERGER & BERMAN
ADVISERS MANAGEMENT TRUST (hereinafter the "Fund"), a Delaware business trust,
NEUBERGER & BERMAN MANAGEMENT INCORPORATED (hereinafter the "Adviser"), a New
York corporation.
WHEREAS, the Fund engages in business as an open-end management investment
company and is available to act as (i) the investment vehicle for separate
accounts established by insurance companies for individual and group life
insurance policies and annuity contracts with variable accumulation and/or
pay-out provisions (hereinafter referred to individually and/or collectively as
"Variable Insurance Products") and (ii) the investment vehicle for certain
qualified pension and retirement plans (hereinafter "Qualified Plans"); and
WHEREAS, insurance companies desiring to utilize the Fund as an investment
vehicle under their Variable Insurance Contracts enter into participation
agreements with the Fund and the Adviser (the "Participating Insurance
Companies");
WHEREAS, shares of the Fund are divided into several series of shares, each
representing the interest in a particular managed portfolio of securities and
other assets, any one or more of which may be made available under this
Agreement, as may be amended from time to time by mutual agreement of the
parties hereto (each such series hereinafter referred to as a "Portfolio"); and
WHEREAS, the Fund has obtained an order from the Securities and Exchange
Commission, dated September 19, 1996 (File No. 812-10118), granting
Participating Insurance Companies and Variable Insurance Product separate
accounts exemptions from the provisions of Sections 9(a), 13(a), 15(a), and
15(b) of the Investment Company Act of 1940, as amended (hereinafter the "1940
Act"), and Rules 6e-2(b)(15) and 6e-3(T)(b)(15) thereunder, to the extent
necessary to permit shares of the Fund to be sold to and held by Variable
Annuity Product separate accounts of both affiliated and unaffiliated life
insurance companies and Qualified Plans (hereinafter the "Shared Funding
Exemptive Order"); and
WHEREAS, the Fund is registered as an open-end management investment
company under the 1940 Act and its shares are registered under the Securities
Act of 1933, as amended (hereinafter the "1933 Act"); and
WHEREAS, each Adviser is duly registered as an investment adviser under the
Investment Advisers Act of 1940, as amended, and any applicable state securities
laws; and
WHEREAS, each Adviser manages certain Portfolios of the Fund; and
WHEREAS, ________________________ (the "Underwriter") is registered as a
broker/dealer under the Securities Exchange Act of 1934, as amended (hereinafter
the "1934 Act"), is a member in good standing of the National Association of
Securities Dealers, Inc. (hereinafter "NASD") and serves as principal
underwriter of the shares of the Fund; and
WHEREAS, the Company has registered or will register certain Variable
Insurance Products under the 1933 Act; and
WHEREAS, each Account is a duly organized, validly existing segregated
asset account, established by resolution or under authority of the Board of
Directors of the Company, on the date shown for such Account on Schedule A
hereto, to set aside and invest assets attributable to the aforesaid Variable
Insurance Product; and
WHEREAS, the Company has registered or will register each Account as a unit
investment trust under the 1940 Act; and
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, the Company intends to purchase, on behalf of each Account, shares
in the Portfolios set forth in Schedule B attached to this Agreement, to fund
certain of the aforesaid Variable Insurance Products and the Underwriter is
authorized to sell such shares to each such Account at net asset value;
NOW, THEREFORE, in consideration of their mutual promises, the Company, the
Fund and the Underwriter agree as follows:
ARTICLE I. Purchase of Fund Shares
1.1. The Fund agrees to make available for purchase by the Company shares
of the Fund and shall execute orders placed for each Account on a daily basis at
the net asset value next computed after receipt by the Fund or its designee of
such order. For purposes of this Section 1.1, the Company shall be the designee
of the Fund for receipt of such orders from each Account and receipt by such
designee shall constitute receipt by the Fund; provided that the Fund receives
notice of such order by 10:00 a.m. Eastern time on the next following Business
Day. "Business Day" shall mean any day on which the New York Stock Exchange is
open for trading and on which the Fund calculates its net asset value pursuant
to the rules of the Securities and Exchange Commission.
1.2. The Fund, so long as this Agreement is in effect, agrees to make its
shares available indefinitely for purchase at the applicable net asset value per
share by the Company and its Accounts on those days on which the Fund calculates
its net asset value pursuant to rules of the Securities and Exchange Commission
and the Fund shall use reasonable efforts to calculate such net asset value on
each day which the New York Stock Exchange is open for trading. Notwithstanding
the foregoing, the Board of Directors of the Fund (hereinafter the "Board") may
refuse to permit the Fund to sell shares of any Portfolio to any person, or
suspend or terminate the offering of shares of any Portfolio if such action is
required by law or by regulatory authorities having jurisdiction or is, in the
sole discretion of the Board acting in good faith and in light of their
fiduciary duties under federal and any applicable state laws, necessary in the
best interests of the shareholders of such Portfolio.
1.3. The Fund agrees that shares of the Fund will be sold only to
Participating Insurance Companies and their separate accounts and to certain
Qualified Plans. No shares of any Portfolio will be sold to the general public.
1.4. The Fund agrees to redeem for cash, on the Company's request, any full
or fractional shares of the Fund held by the Company, executing such requests on
a daily basis at the net asset value next computed after receipt by the Fund or
its designee of the request for redemption. For purposes of this Section 1.4,
the Company shall be the designee of the Fund for receipt of requests for
redemption from each Account and receipt by such designee shall constitute
receipt by the Fund, provided that the Fund receives notice of such request for
redemption on the next following Business Day.
1.5. The Company agrees that purchases and redemption's of Portfolio shares
offered by the then current prospectus of the Fund shall be made in accordance
with the provisions of such prospectus. The Variable Insurance Products issued
by the Company, under which amounts may be invested in the Fund (hereinafter the
"Contracts"), are listed on Schedule A attached hereto and incorporated herein
by reference, as such Schedule A may be amended from time to time by mutual
written agreement of all of the parties hereto. The Company will give the Fund
and the Adviser 45 days written notice of its intention to make available in the
future, as a funding vehicle under the Contracts, any other investment company.
1.6. The Company shall pay for Fund shares on the next Business Day after
an order to purchase Fund shares is made in accordance with the provisions of
Section 1.1 hereof. Payment shall be in federal funds transmitted by wire. For
purposes of Section 2.10 and 2.11, upon receipt by the Fund of the federal funds
so wired, such funds shall cease to be the responsibility of the Company and
shall become the responsibility of the Fund.
1.7. Issuance and transfer of the Fund's shares will be by book entry only.
Stock certificates will not be issued to the Company or any Account. Shares
ordered from the Fund will be recorded in an appropriate title for each Account
or the appropriate subaccount of each Account.
1.8. The Fund shall furnish same day notice (by wire or telephone, followed
by written confirmation) to the Company of any income, dividends or capital gain
distributions payable on the Fund's shares. The Company hereby elects to receive
all such income dividends and capital gain distributions as are payable on the
Portfolio shares in additional shares of that Portfolio. The Company reserves
the right to revoke this election and to receive all such income dividends and
capital gain distributions in cash. The Fund shall notify the Company of the
number of shares so issued as payment of such dividends and distributions.
1.9. The Fund shall make the net asset value per share for each Portfolio
available to the Company on a daily basis as soon as reasonably practical after
the net asset value per share is calculated (normally by 6:30 p.m. Eastern time)
and shall use its best efforts to make such net asset value per share available
by 7:00 p.m. Eastern time.
ARTICLE II. Representations and Warranties
2.1. The Company represents and warrants that the Contracts are or will be
registered under the 1933 Act; that the Contracts will be issued and sold in
compliance in all material respects with all applicable federal and state laws
and that the sale of the Contracts shall comply in all material respects with
state insurance suitability requirements. The Company further represents and
warrants that it is an insurance company duly organized and in good standing
under applicable law and that it has legally and validly established each
Account prior to any issuance or sale thereof as a segregated asset account
under Section [Citation of state separate account law] and has registered or,
prior to any issuance or sale of the Contracts, will register each Account as a
unit investment trust in accordance with the provisions of the 1940 Act to serve
as a segregated investment account for the Contracts.
2.2. The Fund represents and warrants that Fund shares sold pursuant to
this Agreement shall be registered under the 1933 Act, duly authorized for
issuance and sold in compliance with the laws of the State of Maryland and all
applicable federal and state securities laws and that the Fund is and shall
remain registered under the 1940 Act. The Fund shall amend the registration
statement for its shares under the 1933 Act and the 1940 Act from time to time
as required in order to effect the continuous offering of its shares. The Fund
shall register and qualify the shares for sale in accordance with the laws of
the various states only if and to the extent deemed advisable by the Fund.
2.3. The Fund represents that it is currently qualified as a Regulated
Investment Company under Subchapter M of the Internal Revenue Code of 1986, as
amended (the "Code"), and that it will make every effort to maintain such
qualification (under Subchapter M or any successor or similar provision) and
that it will notify the Company immediately upon having a reasonable basis for
believing that it has ceased to so qualify or that it might not so qualify in
the future.
2.4. The Company represents that the Contracts are currently treated as
life insurance policies or annuity contracts, under applicable provisions of the
Code and that it will make every effort to maintain such treatment and that it
will notify the Fund immediately upon having a reasonable basis for believing
that the Contracts have ceased to be so treated or that they might not be so
treated in the future.
2.5. The Fund represents that to the extent that it decides to finance
distribution expenses pursuant to Rule 12b-1 under the 1940 Act, the Fund
undertakes to have a board of directors, a majority of whom are not interested
persons of the Fund, formulate and approve any plan under Rule 12b-1 to finance
distribution expenses.
2.6. The Fund makes no representation as to whether any aspect of its
operations (including, but not limited to, fees and expenses and investment
policies) complies with the insurance laws or regulations of the various states
except that the Fund represents that the Fund's investment policies, fees and
expenses are and shall at all times remain in compliance with the laws of the
State of Maryland and the Fund represents that their respective operations are
and shall at all times remain in material compliance with the laws of the State
of Maryland to the extent required to perform this Agreement.
2.7. The Fund represents that it is lawfully organized and validly existing
under the laws of the State of Maryland and that it does and will comply in all
material respects with the 1940 Act.
2.8. Each Adviser represents and warrants that it is and shall remain duly
registered in all material respects under all applicable federal and state
securities laws and that it will perform its obligations for the Fund in
compliance in all material respects with the laws of its state of domicile and
any applicable state and federal securities laws.
2.9. The Fund represents and warrants that its directors, officers,
employees, and other individuals/entities dealing with the money and/or
securities of the Fund are and shall continue to be at all times covered by a
blanket fidelity bond or similar coverage for the benefit of the Fund in an
amount not less than the minimal coverage as required currently by Rule 17g-(1)
of the 1940 Act or related provisions as may be promulgated from time to time.
The aforesaid blanket fidelity bond shall include coverage for larceny and
embezzlement and shall be issued by a reputable bonding company.
2.10. The Company represents and warrants that all of its directors,
officers, employees, investment advisers, and other individuals/entities dealing
with the money and/or securities of the Fund are covered by a blanket fidelity
bond or similar coverage, in an amount not less $5 million. The aforesaid
includes coverage for larceny and embezzlement is issued by a reputable bonding
company. The Company agrees to make all reasonable efforts to see that this bond
or another bond containing these provisions is always in effect, and agrees to
notify the Fund and the Underwriter in the event that such coverage no longer
applies.
ARTICLE III. Prospectuses, Reports to Shareholders and Proxy Statements; Voting
3.1. The Fund or its designee shall provide the Company with as many
printed copies of the Fund's current prospectus and statement of additional
information as the Company may reasonably request. If requested by the Company,
in lieu of providing printed copies the Fund shall provide camera-ready film or
computer diskettes containing the Fund's prospectus and statement of additional
information, and such other assistance as is reasonably necessary in order for
the Company once each year (or more frequently if the prospectus and/or
statement of additional information for the Fund is amended during the year) to
have the prospectus for the Contracts and the Fund's prospectus printed together
in one document, and to have the statement of additional information for the
Fund and the statement of additional information for the Contracts printed
together in one document. Alternatively, the Company may print the Fund's
prospectus and/or its statement of additional information in combination with
other fund companies' prospectuses and statements of additional information.
3.2. Except as provided in this Section 3.2., all expenses of preparing,
setting in type and printing and distributing Fund prospectuses and statements
of additional information shall be the expense of the Company. For prospectuses
and statements of additional information provided by the Company to its existing
owners of Contracts who currently own shares of one or more of the Fund's
Portfolios, in order to update disclosure as required by the 1933 Act and/or the
1940 Act, the cost of printing shall be borne by the Fund. If the Company
chooses to receive camera-ready film or computer diskettes in lieu of receiving
printed copies of the Fund's prospectus, the Fund shall bear the cost of
typesetting to provide the Fund's prospectus to the Company in the format in
which the Fund is accustomed to formatting prospectuses, and the Company shall
bear the expense of adjusting or changing the format to conform with any of its
prospectuses. In such event, the Fund will reimburse the Company in an amount
equal to the product of x and y where x is the number of such prospectuses
distributed to owners of the Contracts who currently own shares of one or more
of the Fund's Portfolios, and y is the Fund's per unit cost of typesetting and
printing the Fund's prospectus. The same procedures shall be followed with
respect to the Fund's statement of additional information. The Company agrees to
provide the Fund or its designee with such information as may be reasonably
requested by the Fund to assure that the Fund's expenses do not include the cost
of printing, typesetting, and distributing any prospectuses or statements of
additional information other than those actually distributed to existing owners
of the Contracts who currently own shares of one or more of the Fund's
Portfolios.
3.3. The Fund's statement of additional information shall be obtainable
from the Fund, the Company or such other person as the Fund may designate, as
agreed upon by the parties.
3.4. The Fund, at its expense, shall provide the Company with copies of its
proxy statements, reports to shareholders, and other communications (except for
prospectuses and statements of additional information, which are covered in
section 3.1) to shareholders in such quantity as the Company shall reasonably
require for distributing to Contract owners.
3.5. If and to the extent required by law the Company shall:
(i) solicit voting instructions from Contract owners;
(ii) vote the Fund shares in accordance with instructions received
from Contract owners; and
(iii)vote Fund shares for which no instructions have been received in
the same proportion as Fund shares of such Portfolio for which
instructions have been received,
so long as and to the extent that the Securities and Exchange Commission
continues to interpret the 1940 Act to require pass-through voting privileges
for variable contract owners. The Company reserves the right to vote Fund shares
held in any segregated asset account in its own right, to the extent permitted
by law. The Fund and the Company shall follow the procedures, and shall have the
corresponding responsibilities, for the handling of proxy and voting instruction
solicitations, as set forth in Schedule C attached hereto and incorporated
herein by reference. Participating Insurance Companies shall be responsible for
ensuring that each of their separate accounts participating in the Fund
calculates voting privileges in a manner consistent with the standards set forth
on Schedule C, which standards will also be provided to the other Participating
Insurance Companies.
3.6. The Fund will comply with all provisions of the 1940 Act requiring
voting by shareholders, and in particular the Fund will either provide for
annual meetings or comply with Section 16(c) of the 1940 Act (although the Fund
is not one of the trusts described in Section 16(c) of that Act) as well as with
Sections 16(a) and, if and when applicable, 16(b). Further, the Fund will act in
accordance with the Securities and Exchange Commission's interpretation of the
requirements of Section 16(a) with respect to periodic elections of directors
and with whatever rules the Commission may promulgate with respect thereto.
3.7. The Fund shall use reasonable efforts to provide Fund prospectuses,
reports to shareholders, proxy materials and other Fund communications (or
camera-ready equivalents) to the Company sufficiently in advance of the
Company's mailing dates to enable the Company to complete, at reasonable cost,
the printing, assembling and/or distribution of the communications in accordance
with applicable laws and regulations.
ARTICLE IV. Sales Material and Information
4.1. The Company shall furnish, or shall cause to be furnished, to the Fund
or its designee, each piece of sales literature or other promotional material in
which the Fund or the Adviser(s) is named, at least ten Business Days prior to
its use. No such material shall be used if the Fund or its designee reasonably
objects to such use within ten Business Days after receipt of such material.
4.2. The Company shall not give any information or make any representations
or statements on behalf of the Fund or concerning the Fund in connection with
the sale of the Contracts other than the information or representations
contained in the registration statement or prospectus for the Fund shares, as
such registration statement and prospectus may be amended or supplemented from
time to time, or in reports or proxy statements for the Fund, or in sales
literature or other promotional material approved by the Fund or its designee,
except with the permission of the Fund.
4.3. The Fund or its designee shall furnish, or shall cause to be
furnished, to the Company or its designee, each piece of sales literature or
other promotional material in which the Company and/or its separate account(s)
is named at least ten Business Days prior to its use. No such material shall be
used if the Company or its designee reasonably objects to such use within ten
Business Days after receipt of such material.
4.4. The Fund and the Adviser shall not give any information or make any
representations on behalf of the Company or concerning the Company, each
Account, or the Contracts, other than the information or representations
contained in a registration statement or prospectus for the Contracts, as such
registration statement and prospectus may be amended or supplemented from time
to time, or in published reports for each Account which are in the public domain
or approved by the Company for distribution to Contract owners, or in sales
literature or other promotional material approved by the Company or its
designee, except with the permission of the Company.
4.5. The Fund will provide to the Company at least one complete copy of all
registration statements, prospectuses, statements of additional information,
reports, proxy statements, sales literature and other promotional materials,
applications for exemptions, requests for no-action letters, and all amendments
to any of the above, that relate to the Fund or its shares, which are relevant
to the Company or the Contracts.
4.6. The Company will provide to the Fund at least one complete copy of all
registration statements, prospectuses, statements of additional information,
reports, solicitations for voting instructions, sales literature and other
promotional materials, applications for exemptions, requests for no action
letters, and all amendments to any of the above, that relate to the investment
in the Fund under the Contracts.
4.7. For purposes of this Article IV, the phrase "sales literature or other
promotional material" includes, but is not limited to, any of the following that
refer to the Fund or any affiliate of the Fund: advertisements (such as material
published, or designed for use in, a newspaper, magazine, or other periodical,
radio, television, telephone or tape recording, videotape display, signs or
billboards, motion pictures, or other public media), sales literature (i.e., any
written communication distributed or made generally available to customers or
the public, including brochures, circulars, research reports, market letters,
form letters, seminar texts, reprints or excerpts of any other advertisement,
sales literature, or published article), educational or training materials or
other communications distributed or made generally available to some or all
agents or employees, and registration statements, prospectuses, statements of
additional information, shareholder reports, and proxy materials.
ARTICLE V. Fees and Expenses
5.1. The Fund shall pay no fee or other compensation to the Company under
this Agreement, except that if the Fund or any Portfolio adopts and implements a
plan pursuant to Rule 12b-1 to finance distribution expenses, then the
Underwriter may make payments to the Company or to the underwriter for the
Contracts if and in amounts agreed to by the Underwriter in writing.
5.2. All expenses incident to performance by the Fund under this Agreement
shall be paid by the Fund. The Fund shall see to it that all its shares are
registered and authorized for issuance in accordance with applicable federal law
and, if and to the extent deemed advisable by the Fund, in accordance with
applicable state laws prior to their sale. Except as otherwise set forth in the
Section 3.2 of this Agreement, the Fund shall bear the expenses for the cost of
registration and qualification of the Fund's shares, preparation and filing of
the Fund's prospectus and registration statement, proxy materials and reports,
setting the prospectus in type, setting in type and printing the proxy materials
and reports to shareholders, the preparation of all statements and notices
required by any federal or state law, and all taxes on the issuance or transfer
of the Fund's shares.
5.3. The Company shall bear the expenses of distributing the Fund's
prospectus, proxy materials and reports to owners of Contracts issued by the
Company.
ARTICLE VI. Diversification
6.1. The Fund will at all times invest money from the Contracts in such a
manner as to ensure that the Contracts will be treated as variable contracts
under the Code and the regulations issued thereunder. Without limiting the scope
of the foregoing, the Fund will at all times comply with Section 817(h) of the
Code and Treasury Regulation 1.817-5, relating to the diversification
requirements for variable annuity, endowment, or life insurance contracts and
any amendments or other modifications to such Section or Regulations. In the
event of a breach of this Article VI by the Fund, it will take all reasonable
steps (a) to notify Company of such breach and (b) to adequately diversify the
Fund so as to achieve compliance within the grace period afforded by Regulation
817-5.
ARTICLE VII. Potential Conflicts
7.1. The Board will monitor the Fund for the existence of any material
irreconcilable conflict between the interests of the contract owners of all
separate accounts investing in the Fund. An irreconcilable material conflict may
arise for a variety of reasons, including: (a) an action by any state insurance
regulatory authority; (b) a change in applicable federal or state insurance,
tax, or securities laws or regulations, or a public ruling, private letter
ruling, no-action or interpretative letter, or any similar action by insurance,
tax, or securities regulatory authorities; (c) an administrative or judicial
decision in any relevant proceeding; (d) the manner in which the investments of
any Portfolio are being managed; (e) a difference in voting instructions given
by Variable Insurance Product owners; or (f) a decision by a Participating
Insurance Company to disregard the voting instructions of contract owners. The
Board shall promptly inform the Company if it determines that an irreconcilable
material conflict exists and the implications thereof.
7.2. The Company will report any potential or existing conflicts of which
it is aware to the Board. The Company will assist the Board in carrying out its
responsibilities under the Shared Funding Exemptive Order, by providing the
Board with all information reasonably necessary for the Board to consider any
issues raised. This includes, but is not limited to, an obligation by the
Company to inform the Board whenever contract owner voting instructions are
disregarded.
7.3. If it is determined by a majority of the Board, or a majority of its
disinterested members, that a material irreconcilable conflict exists, the
Company and other Participating Insurance Companies shall, at their expense and
to the extent reasonably practicable (as determined by a majority of the
disinterested directors), take whatever steps are necessary to remedy or
eliminate the irreconcilable material conflict, up to and including: (1)
withdrawing the assets allocable to some or all of the separate accounts from
the Fund or any Portfolio and reinvesting such assets in a different investment
medium, including (but not limited to) another Portfolio of the Fund, or
submitting the question whether such segregation should be implemented to a vote
of all affected Contract owners and, as appropriate, segregating the assets of
any appropriate group (i.e., annuity contract owners, life insurance policy
owners, or variable contract owners of one or more Participating Insurance
Companies) that votes in favor of such segregation, or offering to the affected
contract owners the option of making such a change; and (2) establishing a new
registered management investment company or managed separate account.
7.4. If a material irreconcilable conflict arises because of a decision by
the Company to disregard contract owner voting instructions and that decision
represents a minority position or would preclude a majority vote, the Company
may be required, at the Fund's election, to withdraw the affected Account's
investment in the Fund and terminate this Agreement with respect to such Account
(at the Company's expense); provided, however that such withdrawal and
termination shall be limited to the extent required by the foregoing material
irreconcilable conflict as determined by a majority of the disinterested members
of the Board.
7.5. If a material irreconcilable conflict arises because a particular
state insurance regulator's decision applicable to the Company conflicts with
the majority of other state regulators, then the Company will withdraw the
affected Account's investment in the Fund and terminate this Agreement with
respect to such Account within six months after the Board informs the Company in
writing that it has determined that such decision has created an irreconcilable
material conflict; provided, however, that such withdrawal and termination shall
be limited to the extent required by the foregoing material irreconcilable
conflict as determined by a majority of the disinterested members of the Board.
Until the end of the foregoing six month period, the Underwriter and Fund shall
continue to accept and implement orders by the Company for the purchase (and
redemption) of shares of the Fund.
7.6. For purposes of Sections 7.3 through 7.5 of this Agreement, a majority
of the disinterested members of the Board shall determine whether any proposed
action adequately remedies any irreconcilable material conflict, but in no event
will the Fund be required to establish a new funding medium for the Contracts.
The Company shall not be required by Section 7.3 to establish a new funding
medium for the Contracts if an offer to do so has been declined by vote of a
majority of Contract owners materially adversely affected by the irreconcilable
material conflict.
7.7. If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended, or
Rule 6e-3 is adopted, to provide exemptive relief from any provision of the 1940
Act or the rules promulgated thereunder with respect to mixed or shared funding
(as defined in the Shared Funding Exemptive Order) on terms and conditions
materially different from those contained in the Shared Funding Exemptive Order,
then (a) the Fund and/or the Participating Insurance Companies, as appropriate,
shall take such steps as may be necessary to comply with Rules 6e-2 and 6e-3(T),
as amended, and Rule 6e-3, as adopted, to the extent such rules are applicable;
and (b) Sections 3.4, 3.5, 7.1, 7.2, 7.3, 7.4, and 7.5 of this Agreement shall
continue in effect only to the extent that terms and conditions substantially
identical to such Sections are contained in such Rule(s) as so amended or
adopted.
ARTICLE VIII. Indemnification
8.1. Indemnification By The Company
8.1(a) The Company agrees to indemnify and hold harmless the Fund and each
member of the Board and officers, and each Adviser and each director and officer
of each Adviser, and each person, if any, who controls the Fund or the Adviser
within the meaning of Section 15 of the 1933 Act (collectively, the "Indemnified
Parties" and individually, "Indemnified Party," for purposes of this Section
8.1) against any and all losses, claims, damages, liabilities (including amounts
paid in settlement with the written consent of the Company) or litigation
(including legal and other expenses), to which the Indemnified Parties may
become subject under any statute, regulation, at common law or otherwise,
insofar as such losses, claims, damages, liabilities or expenses (or actions in
respect thereof) or settlements are related to the sale or acquisition of the
Fund's shares or the Contracts and:
(i) arise out of or are based upon any untrue statements or alleged
untrue statements of any material fact contained in the registration
statement or prospectus for the Contracts or contained in the Contracts or
sales literature for the Contracts (or any amendment or supplement to any
of the foregoing), or arise out of or are based upon the omission or the
alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading,
provided that this agreement to indemnify shall not apply as to any
Indemnified Party if such statement or omission or such alleged statement
or omission was made in reliance upon and in conformity with information
furnished to the Company by or on behalf of the Fund for use in the
registration statement or prospectus for the Contracts or in the Contracts
or sales literature (or any amendment or supplement) or otherwise for use
in connection with the sale of the Contracts or Fund shares; or
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the registration
statement, prospectus or sales literature of the Fund not supplied by the
Company, or persons under its control and other than statements or
representations authorized by the Fund or an Adviser) or unlawful conduct
of the Company or persons under its control, with respect to the sale or
distribution of the Contracts or Fund shares; or
(iii) arise out of or as a result of any untrue statement or alleged
untrue statement of a material fact contained in a registration statement,
prospectus, or sales literature of the Fund or any amendment thereof or
supplement thereto or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the
statements therein not misleading if such a statement or omission was made
in reliance upon and in conformity with information furnished to the Fund
by or on behalf of the Company; or
(iv) arise as a result of any failure by the Company to provide the
services and furnish the materials under the terms of this Agreement; or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Company in this Agreement or
arise out of or result from any other material breach of this Agreement by
the Company, as limited by and in accordance with the provisions of
Sections 8.1(b) and 8.1(c) hereof.
8.1(b). The Company shall not be liable under this indemnification
provision with respect to any losses, claims, damages, liabilities or litigation
incurred or assessed against an Indemnified Party as such may arise from such
Indemnified Party's willful misfeasance, bad faith, or gross negligence in the
performance of such Indemnified Party's duties or by reason of such Indemnified
Party's reckless disregard of obligations or duties under this Agreement.
8.1(c). The Company shall not be liable under this indemnification
provision with respect to any claim made against an Indemnified Party unless
such Indemnified Party shall have notified the Company in writing within a
reasonable time after the summons or other first legal process giving
information of the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have received notice of
such service on any designated agent), but failure to notify the Company of any
such claim shall not relieve the Company from any liability which it may have to
the Indemnified Party against whom such action is brought otherwise than on
account of this indemnification provision. In case any such action is brought
against the Indemnified Parties, the Company shall be entitled to participate,
at its own expense, in the defense of such action. The Company also shall be
entitled to assume the defense thereof, with counsel satisfactory to the party
named in the action. After notice from the Company to such party of the
Company's election to assume the defense thereof, the Indemnified Party shall
bear the fees and expenses of any additional counsel retained by it, and the
Company will not be liable to such party under this Agreement for any legal or
other expenses subsequently incurred by such party independently in connection
with the defense thereof other than reasonable costs of investigation.
8.1(d). The Indemnified Parties will promptly notify the Company of the
commencement of any litigation or proceedings against them in connection with
the issuance or sale of the Fund shares or the Contracts or the operation of the
Fund.
8.2. Indemnification by the Adviser
8.2(a). Each Adviser agrees, with respect to each Portfolio that it
manages, to indemnify and hold harmless the Company and each of its directors
and officers and each person, if any, who controls the Company within the
meaning of Section 15 of the 1933 Act (collectively, the "Indemnified Parties"
and individually, "Indemnified Party," for purposes of this Section 8.2) against
any and all losses, claims, damages, liabilities (including amounts paid in
settlement with the written consent of the Adviser) or litigation (including
legal and other expenses) to which the Indemnified Parties may become subject
under any statute, regulation, at common law or otherwise, insofar as such
losses, claims, damages, liabilities or expenses (or actions in respect thereof)
or settlements are related to the sale or acquisition of shares of the Portfolio
that it manages or the Contracts and:
(i) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in the registration
statement or prospectus or sales literature of the Fund (or any amendment
or supplement to any of the foregoing), or arise out of or are based upon
the omission or the alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein
not misleading, provided that this agreement to indemnify shall not apply
as to any Indemnified Party if such statement or omission or such alleged
statement or omission was made in reliance upon and in conformity with
information furnished to the Fund by or on behalf of the Company for use in
the registration statement or prospectus for the Fund or in sales
literature (or any amendment or supplement) or otherwise for use in
connection with the sale of the Contracts or Portfolio shares; or
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the registration
statement, prospectus or sales literature for the Contracts not supplied by
the Fund or persons under its control and other than statements or
representations authorized by the Company) or unlawful conduct of the Fund,
Adviser(s) or Underwriter or persons under their control, with respect to
the sale or distribution of the Contracts or Portfolio shares; or
(iii) arise out of or as a result of any untrue statement or alleged
untrue statement of a material fact contained in a registration statement,
prospectus, or sales literature covering the Contracts, or any amendment
thereof or supplement thereto, or the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make
the statement or statements therein not misleading, if such statement or
omission was made in reliance upon information furnished to the Company by
or on behalf of the Fund; or
(iv) arise as a result of any failure by the Fund to provide the
services and furnish the materials under the terms of this Agreement; or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Adviser in this Agreement or
arise out of or result from any other material breach of this Agreement by
the Adviser; as limited by and in accordance with the provisions of
Sections 8.2(b) and 8.2(c) hereof.
8.2(b). An Adviser shall not be liable under this indemnification provision
with respect to any losses, claims, damages, liabilities or litigation incurred
or assessed against an Indemnified Party as such may arise from such Indemnified
Party's willful misfeasance, bad faith, or gross negligence in the performance
of such Indemnified Party's duties or by reason of such Indemnified Party's
reckless disregard of obligations and duties under this Agreement.
8.2(c). An Adviser shall not be liable under this indemnification provision
with respect to any claim made against an Indemnified Party unless such
Indemnified Party shall have notified the Adviser in writing within a reasonable
time after the summons or other first legal process giving information of the
nature of the claim shall have been served upon such Indemnified Party (or after
such Indemnified Party shall have received notice of such service on any
designated agent), but failure to notify the Adviser of any such claim shall not
relieve the Adviser from any liability which it may have to the Indemnified
Party against whom such action is brought otherwise than on account of this
indemnification provision. In case any such action is brought against the
Indemnified Parties, the Adviser will be entitled to participate, at its own
expense, in the defense thereof. The Adviser also shall be entitled to assume
the defense thereof, with counsel satisfactory to the party named in the action.
After notice from the Adviser to such party of the Adviser's election to assume
the defense thereof, the Indemnified Party shall bear the fees and expenses of
any additional counsel retained by it, and the Adviser will not be liable to
such party under this Agreement for any legal or other expenses subsequently
incurred by such party independently in connection with the defense thereof
other than reasonable costs of investigation.
8.2(d). The Company agrees promptly to notify the Adviser of the
commencement of any litigation or proceedings against it or any of its officers
or directors in connection with the issuance or sale of the Contracts or the
operation of each Account.
8.3. Indemnification by the Fund
8.3(a). The Fund agrees to indemnify and hold harmless the Company, and
each of its directors and officers and each person, if any, who controls the
Company within the meaning of Section 15 of the 1933 Act (hereinafter
collectively, the "Indemnified Parties" and individually, "Indemnified Party,"
for purposes of this Section 8.3) against any and all losses, claims, damages,
liabilities (including amounts paid in settlement with the written consent of
the Fund) or litigation (including legal and other expenses) to which the
Indemnified Parties may become subject under any statute, regulation, at common
law or otherwise, insofar as such losses, claims, damages, liabilities or
expenses (or actions in respect thereof) or settlements result from the gross
negligence, bad faith or willful misconduct of the Board or any member thereof,
are related to the operations of the Fund and:
(i) arise as a result of any failure by the Fund to provide the
services and furnish the materials under the terms of this Agreement; or
(ii) arise out of or result from any material breach of any
representation and/or warranty made by the Fund in this Agreement or arise
out of or result from any other material breach of this Agreement by the
Fund;
8.3(b). The Fund shall not be liable under this indemnification provision
with respect to any losses, claims, damages, liabilities or litigation incurred
or assessed against an Indemnified Party as may arise from such Indemnified
Party's willful misfeasance, bad faith, or gross negligence in the performance
of such Indemnified Party's duties or by reason of such Indemnified Party's
reckless disregard of obligations and duties under this Agreement.
8.3(c). The Fund shall not be liable under this indemnification provision
with respect to any claim made against an Indemnified Party unless such
Indemnified Party shall have notified the Fund in writing within a reasonable
time after the summons or other first legal process giving information of the
nature of the claim shall have been served upon such Indemnified Party (or after
such Indemnified Party shall have received notice of such service on any
designated agent), but failure to notify the Fund of any such claim shall not
relieve the Fund from any liability which it may have to the Indemnified Party
against whom such action is brought otherwise than on account of this
indemnification provision. In case any such action is brought against the
Indemnified Parties, the Fund will be entitled to participate, at its own
expense, in the defense thereof. The Fund also shall be entitled to assume the
defense thereof, with counsel satisfactory to the party named in the action.
After notice from the Fund to such party of the Fund's election to assume the
defense thereof, the Indemnified Party shall bear the fees and expenses of any
additional counsel retained by it, and the Fund will not be liable to such party
under this Agreement for any legal or other expenses subsequently incurred by
such party independently in connection with the defense thereof other than
reasonable costs of investigation.
8.3(d). The Company agrees promptly to notify the Fund of the commencement
of any litigation or proceedings against it or any of its respective officers or
directors in connection with this Agreement, the issuance or sale of the
Contracts, with respect to the operation of either Account, or the sale or
acquisition of shares of the Fund.
ARTICLE IX. Applicable Law
9.1. This Agreement shall be construed and the provisions hereof
interpreted under and in accordance with the laws of the State of New York.
9.2. This Agreement shall be subject to the provisions of the 1933, 1934
and 1940 Acts, and the rules and regulations and rulings thereunder, including
such exemptions from those statutes, rules and regulations as the Securities and
Exchange Commission may grant (including, but not limited to, the Shared Funding
Exemptive Order) and the terms hereof shall be interpreted and construed in
accordance therewith.
ARTICLE X. Termination
10.1. This Agreement shall continue in full force and effect until the
first to occur of:
(a) termination by any party for any reason by sixty (60) days advance
written notice delivered to the other parties; or
(b) termination by the Company by written notice to the Fund and the
Adviser with respect to any Portfolio based upon the Company's
determination that shares of such Portfolio is not reasonably available to
meet the requirements of the Contracts; or
(c) termination by the Company by written notice to the Fund and the
Adviser with respect to any Portfolio in the event any of the Portfolio's
shares are not registered, issued or sold in accordance with applicable
state and/or federal law or such law precludes the use of such shares as
the underlying investment media of the Contracts issued or to be issued by
the Company; or
(d) termination by the Company by written notice to the Fund and the
Adviser with respect to any Portfolio in the event that such Portfolio
ceases to qualify as a Regulated Investment Company under Subchapter M of
the Code or under any successor or similar provision, or if the Company
reasonably believes that the Fund may fail to so qualify; or
(e) termination by the Company by written notice to the Fund and the
Adviser with respect to any Portfolio in the event that such Portfolio
falls to meet the diversification requirements specified in Article VI
hereof; or
(f) termination by either the Fund by written notice to the Company if
the Fund shall determine, in its sole judgment exercised in good faith,
that the Company and/or its affiliated companies has suffered a material
adverse change in its business, operations, financial condition or
prospects since the date of this Agreement or is the subject of material
adverse publicity, or
(g) termination by the Company by written notice to the Fund and the
Adviser, if the Company shall determine, in its sole judgment exercised in
good faith, that either the Fund or the Adviser has suffered a material
adverse change in its business, operations, financial condition or
prospects since the date of this Agreement or is the subject of material
adverse publicity; or
(h) termination by the Fund or the Adviser by written notice to the
Company, if the Company gives the Fund and the Adviser the written notice
specified in Section 1.5 hereof and at the time such notice was given there
was no notice of termination outstanding under any other provision of this
Agreement; provided, however any termination under this Section 10.1(h)
shall be effective forty five (45) days after the notice specified in
Section 1.5 was given.
10.2. Notwithstanding any termination of this Agreement, the Fund shall at
the option of the Company, continue to make available additional shares of the
Fund pursuant to the terms and conditions of this Agreement, for all Contracts
in effect on the effective date of termination of this Agreement (hereinafter
referred to as "Existing, Contracts"). Specifically, without limitation, the
owners of the Existing Contracts shall be permitted to direct reallocation of
investments in the Fund, redemption of investments in the Fund and/or investment
in the Fund upon the making of additional purchase payments under the Existing
Contracts. The parties agree that this Section 10.2 shall not apply to any
terminations under Article VII and the effect of such Article VII terminations
shall be governed by Article VII of this Agreement.
10.3. The Company shall not redeem Fund shares attributable to the
Contracts (as distinct from Fund shares attributable to the Company's assets
held in the Account) except (i) as necessary to implement Contract Owner
initiated or approved transactions, or (ii) as required by state and/or federal
laws or regulations or judicial or other legal precedent of general application
(hereinafter referred to as a "Legally Required Redemption") or (iii) as
permitted by an order of the Securities and Exchange Commission pursuant to
Section 26(b) of the 1940 Act. Upon request, the Company will promptly furnish
to the Fund the opinion of counsel for the Company (which counsel shall be
reasonably satisfactory to the Fund) to the effect that any redemption pursuant
to clause (ii) above is a Legally Required Redemption. Furthermore, except in
cases where permitted under the terms of the Contracts, the Company shall not
prevent Contract Owners from allocating payments to a Portfolio that was
otherwise available under the Contracts without first giving the Fund 90 days
prior written notice of its intention to do so.
ARTICLE XI. Notices
Any notice shall be sufficiently given when sent by registered or certified
mail to the other party at the address of such party set forth below or at such
other address as such party may from time to time specify in writing to the
other party.
If to the Fund:
If to Adviser:
If to the Company:
======================================
- -------------------------------------- Attention: __________________________
ARTICLE XII. Miscellaneous
12.1. All persons dealing with the Fund must look solely to the property of
the Fund for the enforcement of any claims against the Fund as neither the
Board, officers, agents or shareholders assume any personal liability for
obligations entered into on behalf of the Fund.
12.2. Subject to the requirements of legal process and regulatory
authority, each party hereto shall treat as confidential the names and addresses
of the owners of the Contracts and all information reasonably identified as
confidential in writing by any other party hereto and, except as permitted by
this Agreement, shall not disclose, disseminate or utilize such names and
addresses and other confidential information until such time as it may come into
the public domain without the express written consent of the affected party.
12.3. The captions in this Agreement are included for convenience of
reference only and in no way define or delineate any of the provisions hereof or
otherwise affect their construction or effect.
12.4. This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together shall constitute one and the same
instrument.
12.5. If any provision of this Agreement shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Agreement shall
not be affected thereby.
12.6. Each party hereto shall cooperate with each other party and all
appropriate governmental authorities (including without limitation the
Securities and Exchange Commission, the National Association of Securities
Dealers and state insurance regulators) and shall permit such authorities
reasonable access to its books and records in connection with any investigation
or inquiry relating to this Agreement or the transactions contemplated hereby.
Notwithstanding the generality of the foregoing, each party hereto further
agrees to furnish the California Insurance Commissioner with any information or
reports in connection with services provided under this Agreement which such
Commissioner may request in order to ascertain whether the insurance operations
of the Company are being conducted in a manner consistent with the California
Insurance Regulations and any other applicable law or regulations.
12.7. The rights, remedies and obligations contained in this Agreement are
cumulative and are in addition to any and all rights, remedies and obligations
at law or in equity, which the parties hereto are entitled to under state and
federal laws.
12.8. This Agreement or any of the rights and obligations hereunder may not
be assigned by any party without the prior written consent of all parties
hereto; provided, however, that an Adviser may assign this Agreement or any
rights or obligations hereunder to any affiliate of or company under common
control with the Adviser, if such assignee is duly licensed and registered to
perform the obligations of the Adviser under this Agreement.
12. 9 The Company shall furnish, or shall cause to be furnished, to the
Fund or its designee copies of the following reports:
(a) the Company's annual statement (prepared under statutory
accounting principles) and annual report (prepared under generally accepted
accounting principles ("GAAP"), if any), as soon as practical and in any
event within 90 days after the end of each fiscal year;
(b) the Company's quarterly statements (statutory) (and GAAP, if any),
as soon as practical and in any event within 45 days after the end of each
quarterly period:
(c) any financial statement, proxy statement, notice or report of the
Company sent to stockholders and/or policyholders, as soon as practical
after the delivery thereof to stockholders;
(d) any registration statement (without exhibits) and financial
reports of the Company filed with the Securities and Exchange Commission or
any state insurance regulator, as soon as practical after the filing
thereof;
(e) any other report submitted to the Company by independent
accountants in connection with any annual, interim or special audit made by
them of the books of the Company, as soon as practical after the receipt
thereof.
IN WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be executed in its name and on its behalf by its duly
authorized representative and its seal to be hereunder affixed hereto as of
the date specified above.
<PAGE>
[NAME OF INSURANCE COMPANY]
By: ______________________________
Name:
Title:
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
By: ______________________________
Name:
Title:
NEUBERGER & BERMAN MANAGEMENT INCORPORATED
By: ______________________________
Name:
Title:
<PAGE>
PARTICIPATION AGREEMENT
Among
MORGAN STANLEY UNIVERSAL FUNDS, INC.,
MORGAN STANLEY ASSET MANAGEMENT INC.
MILLER ANDERSON & SHERRERD, LLP
and
[NAME OF INSURANCE COMPANY]
DATED AS OF
------------, ----
INDEPENDENT AUDITORS' CONSENT
We consent to the use in this Post-Effective Amendment No. 4 to Registration
Statement No. 333-00999 of Glenbrook Life Multi-Manager Variable Account of
Glenbrook Life and Annuity Company on Form N-4 of our report dated February 20,
1998 relating to the financial statements and financial statement schedule of
Glenbrook Life and Annuity Company, appearing in the Prospectus, which is part
of such Registration Statement, and to the reference to us under the heading
"Experts" in such Prospectus.
/s/ DELOITTE & TOUCHE LLP
Chicago, Illinois
September 28, 1998
CONSENT OF
FREEDMAN, LEVY, KROLL & SIMONDS
We hereby consent to the reference to our firm under the caption "Legal
Matters" in the prospectus contained in Post-Effective Amendment No. 4 to the
Form N-4 Registration Statement of Glenbrook Life Multi-Manager Variable Account
(File No. 333-00999).
/s/ Freedman, Levy, Krokk & Simonds
-----------------------------------
FREEDMAN, LEVY, KROLL & SIMONDS
Washington, D.C.
September 29, 1998
<TABLE>
<CAPTION>
1yr ago: 6/30/97
Date: 6/30/98
Morgan Stanley Fixed Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
<S> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 10.291802 97.16471
1 FEE 30-Jun-98 0.737333 11.190315 0.06589 0.06
RESULTING VALUE 30-Jun-98 11.190315 97.09882 1086.5664
1.000
FORMULA: 1000*(1+T)= 1086.5664
= 1035.566425
T = 3.56% 8.66%
R = 3.56% 8.66%
Morgan Stanley Equity Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 11.514939 86.84371
1 FEE 30-Jun-98 0.737333 15.132557 0.04872 0.06
RESULTING VALUE 30-Jun-98 15.132557 86.79498 1313.4300
1.000
FORMULA: 1000*(1+T)= 1313.4300
= 1262.430028
T = 26.24% 31.34%
R = 26.24% 31.34%
Morgan Stanley Value
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 11.485126 87.06914
1 FEE 30-Jun-98 0.737333 12.548725 0.05876 0.06
RESULTING VALUE 30-Jun-98 12.548725 87.01038 1091.8693
1.000
FORMULA: 1000*(1+T)= 1091.8693
= 1040.869313
T = 4.09% 9.19%
R = 4.09% 9.19%
Morgan Stanley Mid Cap Value
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 11.843098 84.43737
1 FEE 30-Jun-98 0.737333 15.112138 0.04879 0.06
RESULTING VALUE 30-Jun-98 15.112138 84.38858 1275.2918
1.000
FORMULA: 1000*(1+T)= 1275.2918
= 1224.291793
T = 22.43% 27.53%
R = 22.43% 27.53%
Morgan Stanley U.S. Real Estate
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 10.331527 96.79111
1 FEE 30-Jun-98 0.737333 11.070360 0.06660 0.06
RESULTING VALUE 30-Jun-98 11.070360 96.72451 1070.7751
1.000
FORMULA: 1000*(1+T)= 1070.7751
= 1019.775135
T = 1.98% 7.08%
R = 1.98% 7.08%
Morgan Stanley Global Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 11.425424 87.52410
1 FEE 30-Jun-98 0.737333 13.236501 0.05570 0.06
RESULTING VALUE 30-Jun-98 13.236501 87.46840 1157.7756
1.000
FORMULA: 1000*(1+T)= 1157.7756
= 1106.775559
T = 10.68% 15.78%
R = 10.68% 15.78%
Morgan Stanley International Magnum
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 11.614382 86.10015
1 FEE 30-Jun-98 0.737333 12.459642 0.05918 0.06
RESULTING VALUE 30-Jun-98 12.459642 86.04097 1072.0397
1.000
FORMULA: 1000*(1+T)= 1072.0397
= 1021.039677
T = 2.10% 7.20%
R = 2.10% 7.20%
Fidelity Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 41.380382 24.16604
1 FEE 30-Jun-98 0.737333 45.835488 0.01609 0.06
RESULTING VALUE 30-Jun-98 45.835488 24.14995 1106.9249
1.000
FORMULA: 1000*(1+T)= 1106.9249
= 1055.92494
T = 5.59% 10.69%
R = 5.59% 10.69%
Fidelity High Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 29.250521 34.18743
1 FEE 30-Jun-98 0.737333 29.381347 0.02510 0.06
RESULTING VALUE 30-Jun-98 29.381347 34.16233 1003.7353
1.000
FORMULA: 1000*(1+T)= 1003.7353
= 952.7352707
T = -4.73% 0.37%
R = -4.73% 0.37%
Fidelity Contrafund
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 18.373382 54.42656
1 FEE 30-Jun-98 0.737333 22.235758 0.03316 0.06
RESULTING VALUE 30-Jun-98 22.235758 54.39340 1209.4785
1.000
FORMULA: 1000*(1+T)= 1209.4785
= 1158.47851
T = 15.85% 20.95%
R = 15.85% 20.95%
MFS Emerging Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 14.888850 67.16435
1 FEE 30-Jun-98 0.737333 19.681454 0.03746 0.06
RESULTING VALUE 30-Jun-98 19.681454 67.12689 1321.1548
1.000
FORMULA: 1000*(1+T)= 1321.1548
= 1270.154821
T = 27.02% 32.12%
R = 27.02% 32.12%
MFS Growth and Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 15.347739 65.15618
1 FEE 30-Jun-98 0.737333 19.385797 0.03803 0.06
RESULTING VALUE 30-Jun-98 19.385797 65.11814 1262.3671
1.000
FORMULA: 1000*(1+T)= 1262.3671
= 1211.367089
T = 21.14% 26.24%
R = 21.14% 26.24%
MFS New Discovery
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 9.860688 0.07478 0.06
RESULTING VALUE 30-Jun-98 9.860688#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Dreyfus Growth and Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 20.258666 49.36159
1 FEE 30-Jun-98 0.737333 22.958481 0.03212 0.06
RESULTING VALUE 30-Jun-98 22.958481 49.32948 1132.5298
1.000
FORMULA: 1000*(1+T)= 1132.5298
= 1081.529832
T = 8.15% 13.25%
R = 8.15% 13.25%
Dreyfus Money Market
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 12.803955 78.10087
1 FEE 30-Jun-98 0.737333 13.289013 0.05548 0.06
RESULTING VALUE 30-Jun-98 13.289013 78.04538 1037.1461
1.000
FORMULA: 1000*(1+T)= 1037.1461
= 986.1461175
T = -1.39% 3.71%
R = -1.39% 3.71%
Dreyfus Socially Responsible
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 19.824451 50.44276
1 FEE 30-Jun-98 0.737333 24.401464 0.03022 0.06
RESULTING VALUE 30-Jun-98 24.401464 50.41254 1230.1398
1.000
FORMULA: 1000*(1+T)= 1230.1398
= 1179.139829
T = 17.91% 23.01%
R = 17.91% 23.01%
Dreyfus Small Company
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 11.725466 85.28446
1 FEE 30-Jun-98 0.737333 13.343123 0.05526 0.06
RESULTING VALUE 30-Jun-98 13.343123 85.22920 1137.2237
1.000
FORMULA: 1000*(1+T)= 1137.2237
= 1086.223665
T = 8.62% 13.72%
R = 8.62% 13.72%
American Century Balanced
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 17.644156 56.67599
1 FEE 30-Jun-98 0.737333 21.212782 0.03476 0.06
RESULTING VALUE 30-Jun-98 21.212782 56.64123 1201.5181
1.000
FORMULA: 1000*(1+T)= 1201.5181
= 1150.518076
T = 15.05% 20.15%
R = 15.05% 20.15%
American Century International
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 13.972214 71.57062
1 FEE 30-Jun-98 0.737333 17.282573 0.04266 0.06
RESULTING VALUE 30-Jun-98 17.282573 71.52796 1236.1871
1.000
FORMULA: 1000*(1+T)= 1236.1871
= 1185.187108
T = 18.52% 23.62%
R = 18.52% 23.62%
Fidelity Equity Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 36.481358 27.41126
1 FEE 30-Jun-98 0.737333 41.148839 0.01792 0.06
RESULTING VALUE 30-Jun-98 41.148839 27.39334 1127.2042
1.000
FORMULA: 1000*(1+T)= 1127.2042
= 1076.204203
T = 7.62% 12.72%
R = 7.62% 12.72%
Dreyfus Stock Index
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 27.954512 35.77240
1 FEE 30-Jun-98 0.737333 35.848630 0.02057 0.06
RESULTING VALUE 30-Jun-98 35.848630 35.75183 1281.6542
1.000
FORMULA: 1000*(1+T)= 1281.6542
= 1230.654218
T = 23.07% 28.17%
R = 23.07% 28.17%
AIM Capital Appreciation
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 20.653783 48.41728
1 FEE 30-Jun-98 0.737333 11.764585 0.06267 0.06
RESULTING VALUE 30-Jun-98 11.764585 48.35461 568.8719
1.000
FORMULA: 1000*(1+T)= 568.8719
= 517.8718757
T = -48.21% -43.11%
R = -48.21% -43.11%
AIM Diversified Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 12.941625 77.27005
1 FEE 30-Jun-98 0.737333 14.179619 0.05200 0.06
RESULTING VALUE 30-Jun-98 14.179619 77.21805 1094.9225
1.000
FORMULA: 1000*(1+T)= 1094.9225
= 1043.922524
T = 4.39% 9.49%
R = 4.39% 9.49%
AIM Growth and Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 18.066866 55.34994
1 FEE 30-Jun-98 0.737333 22.014216 0.03349 0.06
RESULTING VALUE 30-Jun-98 22.014216 55.31645 1217.7483
1.000
FORMULA: 1000*(1+T)= 1217.7483
= 1166.748263
T = 16.67% 21.77%
R = 16.67% 21.77%
AIM Government Securities
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 11.530261 86.72831
1 FEE 30-Jun-98 0.737333 12.450774 0.05922 0.06
RESULTING VALUE 30-Jun-98 12.450774 86.66909 1079.0972
1.000
FORMULA: 1000*(1+T)= 1079.0972
= 1028.097199
T = 2.81% 7.91%
R = 2.81% 7.91%
AIM Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 18.913690 52.87176
1 FEE 30-Jun-98 0.737333 24.409791 0.03021 0.06
RESULTING VALUE 30-Jun-98 24.409791 52.84155 1289.8512
1.000
FORMULA: 1000*(1+T)= 1289.8512
= 1238.851177
T = 23.89% 28.99%
R = 23.89% 28.99%
AIM International Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 17.529404 57.04701
1 FEE 30-Jun-98 0.737333 19.712810 0.03740 0.06
RESULTING VALUE 30-Jun-98 19.712810 57.00960 1123.8194
1.000
FORMULA: 1000*(1+T)= 1123.8194
= 1072.81944
T = 7.28% 12.38%
R = 7.28% 12.38%
AIM Global Utilities
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 14.376989 69.55559
1 FEE 30-Jun-98 0.737333 17.475914 0.04219 0.06
RESULTING VALUE 30-Jun-98 17.475914 69.51340 1214.8102
1.000
FORMULA: 1000*(1+T)= 1214.8102
= 1163.810234
T = 16.38% 21.48%
R = 16.38% 21.48%
AIM Value
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 20.696533 48.31727
1 FEE 30-Jun-98 0.737333 25.846593 0.02853 0.06
RESULTING VALUE 30-Jun-98 25.846593 48.28874 1248.0995
1.000
FORMULA: 1000*(1+T)= 1248.0995
= 1197.099513
T = 19.71% 24.81%
R = 19.71% 24.81%
AIM Balanced
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.130820 0.07278 0.06
RESULTING VALUE 30-Jun-98 10.130820#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
AIM High Yield
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.021000 0.07358 0.06
RESULTING VALUE 30-Jun-98 10.021000#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Growth and Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.215477 0.07218 0.06
RESULTING VALUE 30-Jun-98 10.215477#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE U.S. Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 11.200315 0.06583 0.06
RESULTING VALUE 30-Jun-98 11.200315#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE Large Cap Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 11.200308 0.06583 0.06
RESULTING VALUE 30-Jun-98 11.200308#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE Small Cap Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.464208 0.07046 0.06
RESULTING VALUE 30-Jun-98 10.464208#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Capital Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.260252 0.07186 0.06
RESULTING VALUE 30-Jun-98 10.260252#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Mid Cap Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 9.381912 0.07859 0.06
RESULTING VALUE 30-Jun-98 9.381912#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs International Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 11.886608 0.06203 0.06
RESULTING VALUE 30-Jun-98 11.886608#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Global Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.215477 0.07218 0.06
RESULTING VALUE 30-Jun-98 10.215477#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Guardian
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 14.274225 0.05165 0.06
RESULTING VALUE 30-Jun-98 14.274225#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Mid-Cap Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 14.663599 0.05028 0.06
RESULTING VALUE 30-Jun-98 14.663599#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Partners
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-97 1000.00 19.261169 51.91793
1 FEE 30-Jun-98 0.737333 22.876499 0.03223 0.06
RESULTING VALUE 30-Jun-98 22.876499 51.88570 1186.9631
1.000
FORMULA: 1000*(1+T)= 1186.9631
= 1135.963112
T = 13.60% 18.70%
R = 13.60% 18.70%
</TABLE>
<PAGE>
5 yrs ago: 6/30/93
4 years Ago: 6/30/94
3 yrs ago: 6/30/95
2 Years ago: 6/28/96
1 Year Ago: 6/30/97
Date: 6/30/98
<TABLE>
<CAPTION>
Morgan Stanley Fixed Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
<S> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 10.291802 0.07164
5 FEE 30-Jun-98 0.737333 11.190315 0.06589 0.03
RESULTING VALUE 30-Jun-98 11.1903#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley Equity Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.514939 0.06403
5 FEE 30-Jun-98 0.737333 15.132557 0.04872 0.03
RESULTING VALUE 30-Jun-98 15.1325#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley Value
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.485126 0.06420
5 FEE 30-Jun-98 0.737333 12.548725 0.05876 0.03
RESULTING VALUE 30-Jun-98 12.5487#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley Mid Cap Value
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.843098 0.06226
5 FEE 30-Jun-98 0.737333 15.112138 0.04879 0.03
RESULTING VALUE 30-Jun-98 15.1121#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley U.S. Real Estate
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 10.331527 0.07137
5 FEE 30-Jun-98 0.737333 11.070360 0.06660 0.03
RESULTING VALUE 30-Jun-98 11.0703#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley Global Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.425424 0.06453
5 FEE 30-Jun-98 0.737333 13.236501 0.05570 0.03
RESULTING VALUE 30-Jun-98 13.2365#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley International Magnum
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.614382 0.06348
5 FEE 30-Jun-98 0.737333 12.459642 0.05918 0.03
RESULTING VALUE 30-Jun-98 12.4596#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Fidelity Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 22.915123 43.63930
1 FEE 30-Jun-94 0.737333 21.899001 0.03367
2 FEE 30-Jun-95 0.737333 29.653319 0.02487
3 FEE 28-Jun-96 0.737333 35.500024 0.02077
4 FEE 30-Jun-97 0.737333 41.380382 0.01782
5 FEE 30-Jun-98 0.737333 45.835488 0.01609 0.03
RESULTING VALUE 30-Jun-98 45.835488 43.52609 1995.0397
5.000
FORMULA: 1000*(1+T)= 1995.0397
= 1969.539734
T = 14.52% 14.81%
R = 96.95% 99.50%
Fidelity High Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 19.530462 51.20207
1 FEE 30-Jun-94 0.737333 20.459782 0.03604
2 FEE 30-Jun-95 0.737333 22.631226 0.03258
3 FEE 28-Jun-96 0.737333 25.850178 0.02852
4 FEE 30-Jun-97 0.737333 29.250521 0.02521
5 FEE 30-Jun-98 0.737333 29.381347 0.02510 0.03
RESULTING VALUE 30-Jun-98 29.381347 51.05462 1500.0535
5.000
FORMULA: 1000*(1+T)= 1500.0535
= 1474.553538
T = 8.08% 8.45%
R = 47.46% 50.01%
Fidelity Contrafund
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 12.420263 0.05937
3 FEE 28-Jun-96 0.737333 14.860848 0.04962
4 FEE 30-Jun-97 0.737333 18.373382 0.04013
5 FEE 30-Jun-98 0.737333 22.235758 0.03316 0.03
RESULTING VALUE 30-Jun-98 22.2357#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
MFS Emerging Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 13.367089 0.05516
4 FEE 30-Jun-97 0.737333 14.888850 0.04952
5 FEE 30-Jun-98 0.737333 19.681454 0.03746 0.03
RESULTING VALUE 30-Jun-98 19.6814#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
MFS Growth and Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 11.752751 0.06274
4 FEE 30-Jun-97 0.737333 15.347739 0.04804
5 FEE 30-Jun-98 0.737333 19.385797 0.03803 0.03
RESULTING VALUE 30-Jun-98 19.3857#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
MFS New Discovery
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 9.860688 0.07478 0.03
RESULTING VALUE 30-Jun-98 9.8606#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Dreyfus Growth and Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.860908 0.07477
2 FEE 30-Jun-95 0.737333 13.028206 0.05660
3 FEE 28-Jun-96 0.737333 18.009847 0.04094
4 FEE 30-Jun-97 0.737333 20.258666 0.03640
5 FEE 30-Jun-98 0.737333 22.958481 0.03212 0.03
RESULTING VALUE 30-Jun-98 22.9584#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Dreyfus Money Market
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 11.127126 89.87047
1 FEE 30-Jun-94 0.737333 11.380795 0.06479
2 FEE 30-Jun-95 0.737333 11.866775 0.06213
3 FEE 28-Jun-96 0.737333 12.313423 0.05988
4 FEE 30-Jun-97 0.737333 12.803955 0.05759
5 FEE 30-Jun-98 0.737333 13.289013 0.05548 0.03
RESULTING VALUE 30-Jun-98 13.289013 89.57059 1190.3048
5.000
FORMULA: 1000*(1+T)= 1190.3048
= 1164.804775
T = 3.10% 3.55%
R = 16.48% 19.03%
Dreyfus Socially Responsible
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 10.564309 0.06979
2 FEE 30-Jun-95 0.737333 12.578524 0.05862
3 FEE 28-Jun-96 0.737333 15.734581 0.04686
4 FEE 30-Jun-97 0.737333 19.824451 0.03719
5 FEE 30-Jun-98 0.737333 24.401464 0.03022 0.03
RESULTING VALUE 30-Jun-98 24.4014#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Dreyfus Small Company
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 10.382260 0.07102
4 FEE 30-Jun-97 0.737333 11.725466 0.06288
5 FEE 30-Jun-98 0.737333 13.343123 0.05526 0.03
RESULTING VALUE 30-Jun-98 13.3431#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
American Century Balanced
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 11.944717 83.71902
1 FEE 30-Jun-94 0.737333 11.936609 0.06177
2 FEE 30-Jun-95 0.737333 13.715253 0.05376
3 FEE 28-Jun-96 0.737333 15.362666 0.04800
4 FEE 30-Jun-97 0.737333 17.644156 0.04179
5 FEE 30-Jun-98 0.737333 21.212782 0.03476 0.03
RESULTING VALUE 30-Jun-98 21.212782 83.47895 1770.8207
5.000
FORMULA: 1000*(1+T)= 1770.8207
= 1745.32068
T = 11.78% 12.11%
R = 74.53% 77.08%
American Century International
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.761815 0.07553
2 FEE 30-Jun-95 0.737333 9.748857 0.07563
3 FEE 28-Jun-96 0.737333 11.158243 0.06608
4 FEE 30-Jun-97 0.737333 13.972214 0.05277
5 FEE 30-Jun-98 0.737333 17.282573 0.04266 0.03
RESULTING VALUE 30-Jun-98 17.2825#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Fidelity Equity Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 19.008402 52.60831
1 FEE 30-Jun-94 0.737333 20.213719 0.03648
2 FEE 30-Jun-95 0.737333 24.778783 0.02976
3 FEE 28-Jun-96 0.737333 29.859131 0.02469
4 FEE 30-Jun-97 0.737333 36.481358 0.02021
5 FEE 30-Jun-98 0.737333 41.148839 0.01792 0.03
RESULTING VALUE 30-Jun-98 41.148839 52.47926 2159.4605
5.000
FORMULA: 1000*(1+T)= 2159.4605
= 2133.96053
T = 16.37% 16.65%
R = 113.40% 115.95%
Dreyfus Stock Index
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 13.720982 72.88108
1 FEE 30-Jun-94 0.737333 13.695119 0.05384
2 FEE 30-Jun-95 0.737333 16.974097 0.04344
3 FEE 28-Jun-96 0.737333 21.065268 0.03500
4 FEE 30-Jun-97 0.737333 27.954512 0.02638
5 FEE 30-Jun-98 0.737333 35.848630 0.02057 0.03
RESULTING VALUE 30-Jun-98 35.848630 72.70186 2606.2620
5.000
FORMULA: 1000*(1+T)= 2606.2620
= 2580.761958
T = 20.88% 21.12%
R = 158.08% 160.63%
AIM Capital Appreciation
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 10.264467 97.42347
1 FEE 30-Jun-94 0.737333 11.154228 0.06610
2 FEE 30-Jun-95 0.737333 15.167953 0.04861
3 FEE 28-Jun-96 0.737333 17.179196 0.04292
4 FEE 30-Jun-97 0.737333 20.653783 0.03570
5 FEE 30-Jun-98 0.737333 11.764585 0.06267 0.03
RESULTING VALUE 30-Jun-98 11.764585 97.16746 1143.1349
5.000
FORMULA: 1000*(1+T)= 1143.1349
= 1117.634868
T = 2.25% 2.71%
R = 11.76% 14.31%
AIM Diversified Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 10.142098 98.59893
1 FEE 30-Jun-94 0.737333 9.988993 0.07381
2 FEE 30-Jun-95 0.737333 10.916466 0.06754
3 FEE 28-Jun-96 0.737333 11.799073 0.06249
4 FEE 30-Jun-97 0.737333 12.941625 0.05697
5 FEE 30-Jun-98 0.737333 14.179619 0.05200 0.03
RESULTING VALUE 30-Jun-98 14.179619 98.28611 1393.6596
5.000
FORMULA: 1000*(1+T)= 1393.6596
= 1368.159551
T = 6.47% 6.86%
R = 36.82% 39.37%
AIM Growth and Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.751835 0.07561
2 FEE 30-Jun-95 0.737333 11.852634 0.06221
3 FEE 28-Jun-96 0.737333 14.282264 0.05163
4 FEE 30-Jun-97 0.737333 18.066866 0.04081
5 FEE 30-Jun-98 0.737333 22.014216 0.03349 0.03
RESULTING VALUE 30-Jun-98 22.0142#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
AIM Government Securities
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 10.132120 98.69603
1 FEE 30-Jun-94 0.737333 9.791600 0.07530
2 FEE 30-Jun-95 0.737333 10.667682 0.06912
3 FEE 28-Jun-96 0.737333 10.913582 0.06756
4 FEE 30-Jun-97 0.737333 11.530261 0.06395
5 FEE 30-Jun-98 0.737333 12.450774 0.05922 0.03
RESULTING VALUE 30-Jun-98 12.450774 98.36088 1224.6691
5.000
FORMULA: 1000*(1+T)= 1224.6691
= 1199.169067
T = 3.70% 4.14%
R = 19.92% 22.47%
AIM Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 10.441606 95.77071
1 FEE 30-Jun-94 0.737333 10.021210 0.07358
2 FEE 30-Jun-95 0.737333 12.885115 0.05722
3 FEE 28-Jun-96 0.737333 15.182958 0.04856
4 FEE 30-Jun-97 0.737333 18.913690 0.03898
5 FEE 30-Jun-98 0.737333 24.409791 0.03021 0.03
RESULTING VALUE 30-Jun-98 24.409791 95.52215 2331.6758
5.000
FORMULA: 1000*(1+T)= 2331.6758
= 2306.175799
T = 18.19% 18.45%
R = 130.62% 133.17%
AIM International Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 9.862560 101.39355
1 FEE 30-Jun-94 0.737333 11.466895 0.06430
2 FEE 30-Jun-95 0.737333 12.360524 0.05965
3 FEE 28-Jun-96 0.737333 14.950187 0.04932
4 FEE 30-Jun-97 0.737333 17.529404 0.04206
5 FEE 30-Jun-98 0.737333 19.712810 0.03740 0.03
RESULTING VALUE 30-Jun-98 19.712810 101.14081 1993.7696
5.000
FORMULA: 1000*(1+T)= 1993.7696
= 1968.269647
T = 14.50% 14.80%
R = 96.83% 99.38%
AIM Global Utilities
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.642034 0.07647
2 FEE 30-Jun-95 0.737333 10.685088 0.06901
3 FEE 28-Jun-96 0.737333 12.424769 0.05934
4 FEE 30-Jun-97 0.737333 14.376989 0.05129
5 FEE 30-Jun-98 0.737333 17.475914 0.04219 0.03
RESULTING VALUE 30-Jun-98 17.4759#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
AIM Value
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 10.671206 93.71012
1 FEE 30-Jun-94 0.737333 11.162752 0.06605
2 FEE 30-Jun-95 0.737333 14.441220 0.05106
3 FEE 28-Jun-96 0.737333 16.583502 0.04446
4 FEE 30-Jun-97 0.737333 20.696533 0.03563
5 FEE 30-Jun-98 0.737333 25.846593 0.02853 0.03
RESULTING VALUE 30-Jun-98 25.846593 93.48439 2416.2531
5.000
FORMULA: 1000*(1+T)= 2416.2531
= 2390.753105
T = 19.04% 19.30%
R = 139.08% 141.63%
AIM Balanced
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.130820 0.07278 0.03
RESULTING VALUE 30-Jun-98 10.1308#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
AIM High Yield
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.021000 0.07358 0.03
RESULTING VALUE 30-Jun-98 10.0210#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Growth and Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.215477 0.07218 0.03
RESULTING VALUE 30-Jun-98 10.2154#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE U.S. Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 11.200315 0.06583 0.03
RESULTING VALUE 30-Jun-98 11.2003#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE Large Cap Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 11.200308 0.06583 0.03
RESULTING VALUE 30-Jun-98 11.2003#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE Small Cap Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.464208 0.07046 0.03
RESULTING VALUE 30-Jun-98 10.4642#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Capital Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.260252 0.07186 0.03
RESULTING VALUE 30-Jun-98 10.2602#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Mid Cap Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 9.381912 0.07859 0.03
RESULTING VALUE 30-Jun-98 9.3819#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs International Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 11.886608 0.06203 0.03
RESULTING VALUE 30-Jun-98 11.8866#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Global Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.215477 0.07218 0.03
RESULTING VALUE 30-Jun-98 10.2154#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Guardian
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 14.274225 0.05165 0.03
RESULTING VALUE 30-Jun-98 14.2742#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Mid-Cap Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 14.663599 0.05028 0.03
RESULTING VALUE 30-Jun-98 14.6635#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Partners
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-93 1000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.220847 0.07996
2 FEE 30-Jun-95 0.737333 11.659503 0.06324
3 FEE 28-Jun-96 0.737333 14.594261 0.05052
4 FEE 30-Jun-97 0.737333 19.261169 0.03828
5 FEE 30-Jun-98 0.737333 22.876499 0.03223 0.03
RESULTING VALUE 30-Jun-98 22.8764#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Morgan Stanley Fixed Income
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
<S> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 10.919535 0.06752 0.06
2 FEE 30-Jun-98 0.7373334 11.190315 0.06589 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.05
5 FEE N/A 0 N/A 0.00000 0.04
6 FEE N/A 0 N/A 0.00000 0.03
7 FEE N/A 0 N/A 0.00000 0
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.190315 99.86659 1117.5385
1.489
FORMULA: 1000*(1+T)= 1117.5385
= 1066.538549
T = 4.42%
R = 6.65%
Morgan Stanley Equity Growth
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 13.122222 0.05619 0.06
2 FEE 30-Jun-98 0.7373334 15.132557 0.04872 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 15.132557 99.89509 1511.6681
1.489
FORMULA: 1000*(1+T)= 1511.6681
= 1460.668073
T = 28.97%
R = 46.07%
Morgan Stanley Value
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 11.990231 0.06149 0.06
2 FEE 30-Jun-98 0.7373334 12.548725 0.05876 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 12.548725 99.87975 1253.3635
1.489
FORMULA: 1000*(1+T)= 1253.3635
= 1202.363489
T = 13.17%
R = 20.24%
Morgan Stanley Mid Cap Value
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 13.869257 0.05316 0.06
2 FEE 30-Jun-98 0.7373334 15.112138 0.04879 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 15.112138 99.89805 1509.6731
1.489
FORMULA: 1000*(1+T)= 1509.6731
= 1458.673058
T = 28.85%
R = 45.87%
Morgan Stanley U.S. Real Estate
04-Mar-97
TO NO. YEARS 1.322
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 04-Mar-97 1000.00 10.000000 100.00000
1 FEE 04-Mar-98 0.7373334 11.418311 0.06457 0.06
2 FEE 30-Jun-98 0.7373334 11.070360 0.06660 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.070360 99.86882 1105.5838
1.322
FORMULA: 1000*(1+T)= 1105.5838
= 1054.583802
T = 4.10%
R = 5.46%
Morgan Stanley Global Equity
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 11.886204 0.06203 0.06
2 FEE 30-Jun-98 0.7373334 13.236501 0.05570 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 13.236501 99.88226 1322.0917
1.489
FORMULA: 1000*(1+T)= 1322.0917
= 1271.091671
T = 17.48%
R = 27.11%
Morgan Stanley International Magnum
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 10.649503 0.06924 0.06
2 FEE 30-Jun-98 0.7373334 12.459642 0.05918 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 12.459642 99.87159 1244.3642
1.489
FORMULA: 1000*(1+T)= 1244.3642
= 1193.364206
T = 12.60%
R = 19.34%
Fidelity Growth
30-Jun-88
TO NO. YEARS 10.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-88 1000.00 11.761447 85.02355
1 FEE 30-Jun-89 0.7373334 13.551586 0.05441
2 FEE 30-Jun-90 0.7373334 15.726453 0.04688
3 FEE 30-Jun-91 0.7373334 15.155530 0.04865
4 FEE 30-Jun-92 0.7373334 17.696754 0.04166
5 FEE 30-Jun-93 0.7373334 22.915123 0.03218
6 FEE 30-Jun-94 0.7373334 21.899001 0.03367
7 FEE 30-Jun-95 0.7373334 29.653319 0.02487
8 FEE 30-Jun-96 0.7373334 35.500024 0.02077
9 FEE 30-Jun-97 0.7373334 41.380382 0.01782
10 FEE 30-Jun-98 0.7373334 45.835488 0.01609 0
RESULTING VALUE 30-Jun-98 45.835488 84.68656 3881.6496
10.000
FORMULA: 1000*(1+T)= 3881.6496
= 3881.649584
T = 14.53% 14.53%
R = 288.16% 288.16%
Fidelity High Income
30-Jun-88
TO NO. YEARS 10.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-88 1000.00 11.520590 86.80111
1 FEE 30-Jun-89 0.7373334 12.332679 0.05979
2 FEE 30-Jun-90 0.7373334 10.995292 0.06706
3 FEE 30-Jun-91 0.7373334 12.853855 0.05736
4 FEE 30-Jun-92 0.7373334 16.633954 0.04433
5 FEE 30-Jun-93 0.7373334 19.530462 0.03775
6 FEE 30-Jun-94 0.7373334 20.459782 0.03604
7 FEE 30-Jun-95 0.7373334 22.631226 0.03258
8 FEE 30-Jun-96 0.7373334 25.850178 0.02852
9 FEE 30-Jun-97 0.7373334 29.250521 0.02521
10 FEE 30-Jun-98 0.7373334 29.381347 0.02510 0
RESULTING VALUE 30-Jun-98 29.381347 86.38738 2538.1775
10.000
FORMULA: 1000*(1+T)= 2538.1775
= 2538.177486
T = 9.76% 9.76%
R = 153.82% 153.82%
Fidelity Contrafund
03-Jan-95
TO NO. YEARS 3.488
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 03-Jan-95 1000.00 10.000000 100.00000
1 FEE 03-Jan-96 0.7373334 13.712241 0.05377 0.06
2 FEE 03-Jan-97 0.7373334 16.542049 0.04457 0.06
3 FEE 03-Jan-98 0.7373334 20.283878 0.03635 0.05
4 30-Jun-98 0.7373334 22.235758 0.03316 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 22.235758 99.83214 2219.8434
3.488
FORMULA: 1000*(1+T)= 2219.8434
= 2177.343401
T = 24.99%
R = 117.73%
Fidelity Equity Income
30-Jun-88
TO NO. YEARS 10.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-88 1000.00 11.616135 86.08715
1 FEE 30-Jun-89 0.7373334 13.531910 0.05449
2 FEE 30-Jun-90 0.7373334 13.011930 0.05667
3 FEE 30-Jun-91 0.7373334 13.300163 0.05544
4 FEE 30-Jun-92 0.7373334 15.751213 0.04681
5 FEE 30-Jun-93 0.7373334 19.008402 0.03879
6 FEE 30-Jun-94 0.7373334 20.213719 0.03648
7 FEE 30-Jun-95 0.7373334 24.778783 0.02976
8 FEE 30-Jun-96 0.7373334 29.859131 0.02469
9 FEE 30-Jun-97 0.7373334 36.481358 0.02021
10 FEE 30-Jun-98 0.7373334 41.148839 0.01792 0
RESULTING VALUE 30-Jun-98 41.148839 85.70590 3526.6984
10.000
FORMULA: 1000*(1+T)= 3526.6984
= 3526.69841
T = 13.43% 13.43%
R = 252.67% 252.67%
MFS Emerging Growth
24-Jul-95
TO NO. YEARS 2.935
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 24-Jul-95 1000.00 10.000000 100.00000
1 FEE 24-Jul-96 0.7373334 11.891277 0.06201 0.06
2 FEE 24-Jul-97 0.7373334 16.084483 0.04584 0.06
3 FEE 30-Jun-98 0.7373334 19.681454 0.03746 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 19.681454 99.85469 1965.2855
2.935
FORMULA: 1000*(1+T)= 1965.2855
= 1922.78547
T = 24.95%
R = 92.28%
MFS Growth and Income
09-Oct-95
TO NO. YEARS 2.724
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 09-Oct-95 1000.00 10.000000 100.00000
1 FEE 09-Oct-96 0.7373334 12.340758 0.05975 0.06
2 FEE 09-Oct-97 0.7373334 16.508201 0.04466 0.06
3 FEE 30-Jun-98 0.7373334 19.385797 0.03803 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 19.385797 99.85755 1935.8182
2.724
FORMULA: 1000*(1+T)= 1935.8182
= 1893.318247
T = 26.41%
R = 89.33%
MFS New Discovery
29-Apr-98
TO NO. YEARS 0.170
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Apr-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 9.860688 0.07478 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 9.860688 99.92522 985.3315
0.170
FORMULA: 1000*(1+T)= 985.3315
= 934.3314666
T = -32.98%
R = -6.57%
Dreyfus Growth & Income
02-May-94
TO NO. YEARS 4.162
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.7373334 12.086553 0.06100 0.06
2 FEE 02-May-96 0.7373334 17.338952 0.04252 0.06
3 FEE 02-May-97 0.7373334 18.452103 0.03996 0.05
4 02-May-98 0.7373334 24.401230 0.03022 0.05
5 30-Jun-98 0.7373334 22.958481 0.03212 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 22.958481 99.79418 2291.1228
4.162
FORMULA: 1000*(1+T)= 2291.1228
= 2257.122752
T = 21.61%
R = 125.71%
Dreyfus Money Market
31-Aug-90
TO NO. YEARS 7.830
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Aug-90 1000.00 10.000000 100.00000
1 FEE 31-Aug-91 0.7373334 10.539372 0.06996 0.06
2 FEE 31-Aug-92 0.7373334 10.917396 0.06754 0.06
3 FEE 31-Aug-93 0.7373334 11.165304 0.06604 0.05
4 31-Aug-94 0.7373334 11.446416 0.06442 0.05
5 31-Aug-95 0.7373334 11.953679 0.06168 0.04
6 31-Aug-96 0.7373334 12.429100 0.05932 0.03
7 31-Aug-97 0.7373334 12.887914 0.05721 0
8 30-Jun-98 0.7373334 13.289013 0.05548 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 13.289013 99.49835 1322.2348
7.830
FORMULA: 1000*(1+T)= 1322.2348
= 1322.23483
T = 3.63%
R = 32.22%
Dreyfus Socially Responsible
07-Oct-93
TO NO. YEARS 4.728
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 07-Oct-93 1000.00 10.000000 100.00000
1 FEE 07-Oct-94 0.7373334 10.756031 0.06855 0.06
2 FEE 07-Oct-95 0.7373334 13.855571 0.05322 0.06
3 FEE 07-Oct-96 0.7373334 16.378851 0.04502 0.05
4 07-Oct-97 0.7373334 22.671900 0.03252 0.05
5 30-Jun-98 0.7373334 24.401464 0.03022 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 24.401464 99.77048 2434.5457
4.728
FORMULA: 1000*(1+T)= 2434.5457
= 2400.545716
T = 20.35%
R = 140.05%
Dreyfus Small Company
30-Apr-96
TO NO. YEARS 2.166
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-96 1000.00 10.000000 100.00000
1 FEE 30-Apr-97 0.7373334 10.418753 0.07077 0.06
2 FEE 30-Apr-98 0.7373334 13.996269 0.05268 0.06
3 FEE 30-Jun-98 0.7373334 13.343123 0.05526 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 13.343123 99.82129 1331.9278
2.166
FORMULA: 1000*(1+T)= 1331.9278
= 1289.427751
T = 12.45%
R = 28.94%
Dreyfus Stock Index
29-Sep-89
TO NO. YEARS 8.750
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-89 1000.00 10.000000 100.00000
1 FEE 29-Sep-90 0.7373334 8.963788 0.08226 0.06
2 FEE 29-Sep-91 0.7373334 11.768444 0.06265 0.06
3 FEE 29-Sep-92 0.7373334 12.505061 0.05896 0.05
4 29-Sep-93 0.7373334 14.136247 0.05216 0.05
5 29-Sep-94 0.7373334 14.606704 0.05048 0.04
6 29-Sep-95 0.7373334 18.254203 0.04039 0.03
7 29-Sep-96 0.7373334 20.500766 0.03597 0
8 29-Sep-97 0.7373334 29.320773 0.02515 0
9 30-Jun-98 0.7373334 35.848630 0.02057 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 35.848630 99.57141 3569.4988
8.750
FORMULA: 1000*(1+T)= 3569.4988
= 3569.498812
T = 15.65%
R = 256.95%
American Century Balanced
01-May-91
TO NO. YEARS 7.165
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-91 1000.00 10.000000 100.00000
1 FEE 01-May-92 0.7373334 11.295643 0.06528 0.06
2 FEE 01-May-93 0.7373334 11.448331 0.06441 0.06
3 FEE 01-May-94 0.7373334 12.267749 0.06010 0.05
4 01-May-95 0.7373334 12.916581 0.05708 0.05
5 01-May-96 0.7373334 15.018653 0.04909 0.04
6 01-May-97 0.7373334 16.331717 0.04515 0.03
7 01-May-98 0.7373334 20.246992 0.03642 0
8 30-Jun-98 0.7373334 21.212782 0.03476 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 21.212782 99.58771 2112.5325
7.165
FORMULA: 1000*(1+T)= 2112.5325
= 2112.532455
T = 11.00%
R = 111.25%
American Century International
02-May-94
TO NO. YEARS 4.162
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.7373334 9.608821 0.07674 0.06
2 FEE 02-May-96 0.7373334 11.062373 0.06665 0.06
3 FEE 02-May-97 0.7373334 12.731174 0.05792 0.05
4 02-May-98 0.7373334 16.755308 0.04401 0.05
5 30-Jun-98 0.7373334 17.282573 0.04266 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 17.282573 99.71203 1723.2804
4.162
FORMULA: 1000*(1+T)= 1723.2804
= 1689.280396
T = 13.43%
R = 68.93%
AIM Capital Appreciation
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 10.840236 0.06802 0.06
2 FEE 05-May-95 0.7373334 14.962239 0.04928 0.06
3 FEE 05-May-96 0.7373334 15.962470 0.04619 0.05
4 05-May-97 0.7373334 20.234875 0.03644 0.05
5 05-May-98 0.7373334 19.851752 0.03714 0.04
6 30-Jun-98 0.7373334 11.764585 0.06267 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.764585 99.70026 1172.9321
5.153
FORMULA: 1000*(1+T)= 1172.9321
= 1147.432134
T = 2.70%
R = 14.74%
AIM Diversified Income
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 10.007156 0.07368 0.06
2 FEE 05-May-95 0.7373334 10.725852 0.06874 0.06
3 FEE 05-May-96 0.7373334 11.495690 0.06414 0.05
4 05-May-97 0.7373334 12.647070 0.05830 0.05
5 05-May-98 0.7373334 14.120100 0.05222 0.04
6 30-Jun-98 0.7373334 14.179619 0.05200 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 14.179619 99.63092 1412.7284
5.153
FORMULA: 1000*(1+T)= 1412.7284
= 1387.228442
T = 6.56%
R = 38.72%
AIM Growth and Income
02-May-94
TO NO. YEARS 4.162
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.7373334 11.072987 0.06659 0.06
2 FEE 02-May-96 0.7373334 13.853960 0.05322 0.06
3 FEE 02-May-97 0.7373334 16.500881 0.04468 0.05
4 02-May-98 0.7373334 21.728999 0.03393 0.05
5 30-Jun-98 0.7373334 22.014216 0.03349 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 22.014216 99.76808 2196.3160
4.162
FORMULA: 1000*(1+T)= 2196.3160
= 2162.31603
T = 20.36%
R = 116.23%
AIM Government Securities
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 9.825079 0.07505 0.06
2 FEE 05-May-95 0.7373334 10.419609 0.07076 0.06
3 FEE 05-May-96 0.7373334 10.746745 0.06861 0.05
4 05-May-97 0.7373334 11.379582 0.06479 0.05
5 05-May-98 0.7373334 12.258481 0.06015 0.04
6 30-Jun-98 0.7373334 12.450774 0.05922 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 12.450774 99.60142 1240.1147
5.153
FORMULA: 1000*(1+T)= 1240.1147
= 1214.614731
T = 3.85%
R = 21.46%
AIM Growth
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 10.533952 0.07000 0.06
2 FEE 05-May-95 0.7373334 11.805941 0.06245 0.06
3 FEE 05-May-96 0.7373334 14.946950 0.04933 0.05
4 05-May-97 0.7373334 17.644874 0.04179 0.05
5 05-May-98 0.7373334 23.820068 0.03095 0.04
6 30-Jun-98 0.7373334 24.409791 0.03021 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 24.409791 99.71527 2434.0289
5.153
FORMULA: 1000*(1+T)= 2434.0289
= 2408.528937
T = 18.60%
R = 140.85%
AIM International Equity
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 11.625568 0.06342 0.06
2 FEE 05-May-95 0.7373334 12.049266 0.06119 0.06
3 FEE 05-May-96 0.7373334 14.472103 0.05095 0.05
4 05-May-97 0.7373334 16.022446 0.04602 0.05
5 05-May-98 0.7373334 19.670022 0.03749 0.04
6 30-Jun-98 0.7373334 19.712810 0.03740 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 19.712810 99.70353 1965.4367
5.153
FORMULA: 1000*(1+T)= 1965.4367
= 1939.936685
T = 13.72%
R = 93.99%
AIM Global Utilities
02-May-94
TO NO. YEARS 4.162
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.7373334 10.172758 0.07248 0.06
2 FEE 02-May-96 0.7373334 11.992531 0.06148 0.06
3 FEE 02-May-97 0.7373334 13.512094 0.05457 0.05
4 02-May-98 0.7373334 17.624473 0.04184 0.05
5 30-Jun-98 0.7373334 17.475914 0.04219 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 17.475914 99.72744 1742.8282
4.162
FORMULA: 1000*(1+T)= 1742.8282
= 1708.828174
T = 13.74%
R = 70.88%
AIM Value
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 11.648018 0.06330 0.06
2 FEE 05-May-95 0.7373334 13.203550 0.05584 0.06
3 FEE 05-May-96 0.7373334 15.948960 0.04623 0.05
4 05-May-97 0.7373334 19.239699 0.03832 0.05
5 05-May-98 0.7373334 24.811212 0.02972 0.04
6 30-Jun-98 0.7373334 25.846593 0.02853 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 25.846593 99.73806 2577.8889
5.153
FORMULA: 1000*(1+T)= 2577.8889
= 2552.388936
T = 19.94%
R = 155.24%
AIM Balanced
01-May-98
TO NO. YEARS 0.164
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.130820 0.07278 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.130820 99.92722 1012.3447
0.164
FORMULA: 1000*(1+T)= 1012.3447
= 961.3446666
T = -21.34%
R = -3.87%
AIM High Yield
01-May-98
TO NO. YEARS 0.164
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.021000 0.07358 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.021000 99.92642 1001.3627
0.164
FORMULA: 1000*(1+T)= 1001.3627
= 950.3626666
T = -26.65%
R = -4.96%
Goldman Sachs Growth and Income
12-Jan-98
TO NO. YEARS 0.463
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 12-Jan-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.215477 0.07218 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.215477 99.92782 1020.8104
0.463
FORMULA: 1000*(1+T)= 1020.8104
= 969.8103666
T = -6.41%
R = -3.02%
Goldman Sachs CORE U.S. Equity
13-Feb-98
TO NO. YEARS 0.375
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 13-Feb-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 11.200315 0.06583 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.200315 99.93417 1119.2942
0.375
FORMULA: 1000*(1+T)= 1119.2942
= 1068.294167
T = 19.26%
R = 6.83%
Goldman Sachs CORE Large Cap Growth
13-Feb-98
TO NO. YEARS 0.375
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 13-Feb-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 11.200308 0.06583 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.200308 99.93417 1119.2935
0.375
FORMULA: 1000*(1+T)= 1119.2935
= 1068.293467
T = 19.26%
R = 6.83%
Goldman Sachs CORE Small Cap Equity
13-Feb-98
TO NO. YEARS 0.375
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 13-Feb-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.464208 0.07046 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.464208 99.92954 1045.6835
0.375
FORMULA: 1000*(1+T)= 1045.6835
= 994.6834666
T = -1.41%
R = -0.53%
Goldman Sachs Capital Growth
30-Apr-98
TO NO. YEARS 0.167
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.260252 0.07186 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.260252 99.92814 1025.2879
0.167
FORMULA: 1000*(1+T)= 1025.2879
= 974.2878666
T = -14.44%
R = -2.57%
Goldman Sachs Mid Cap Equity
30-Apr-98
TO NO. YEARS 0.167
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 9.381912 0.07859 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 9.381912 99.92141 937.4539
0.167
FORMULA: 1000*(1+T)= 937.4539
= 886.4538666
T = -51.41%
R = -11.35%
Goldman Sachs International Equity
12-Jan-98
TO NO. YEARS 0.463
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 12-Jan-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 11.886608 0.06203 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.886608 99.93797 1187.9235
0.463
FORMULA: 1000*(1+T)= 1187.9235
= 1136.923467
T = 31.96%
R = 13.69%
Goldman Sachs Global Income
12-Jan-98
TO NO. YEARS 0.463
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 12-Jan-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.215477 0.07218 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.215477 99.92782 1020.8104
0.463
FORMULA: 1000*(1+T)= 1020.8104
= 969.8103666
T = -6.41%
R = -3.02%
Neuberger & Berman AMT Guardian
03-Nov-97
TO NO. YEARS 0.654
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 03-Nov-97 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 14.274225 0.05165 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 14.274225 99.94835 1426.6852
0.654
FORMULA: 1000*(1+T)= 1426.6852
= 1375.685167
T = 62.81%
R = 37.57%
Neuberger & Berman AMT Mid-Cap Growth
03-Nov-97
TO NO. YEARS 0.654
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 03-Nov-97 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 14.663599 0.05028 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 14.663599 99.94972 1465.6226
0.654
FORMULA: 1000*(1+T)= 1465.6226
= 1414.622567
T = 69.91%
R = 41.46%
Neuberger & Berman AMT Partners
22-Mar-94
TO NO. YEARS 4.274
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 22-Mar-94 1000.00 10.000000 100.00000
1 FEE 22-Mar-95 0.7373334 10.321380 0.07144 0.06
2 FEE 22-Mar-96 0.7373334 14.147525 0.05212 0.06
3 FEE 22-Mar-97 0.7373334 17.355145 0.04249 0.05
4 22-Mar-98 0.7373334 24.094789 0.03060 0.05
5 30-Jun-98 0.7373334 22.876499 0.03223 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 22.876499 99.77113 2282.4141
4.274
FORMULA: 1000*(1+T)= 2282.4141
= 2248.414101
T = 20.87%
R = 124.84%
</TABLE>
<TABLE>
<CAPTION>
1yr ago: 6/30/97
Date: 6/30/98
Morgan Stanley Fixed Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
<S> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.269622 97.37457
1 FEE 30-Jun-98 0.737333 11.117189 0.06632 0.06
RESULTING VALUE 30-Jun-98 11.117189 97.30824 1081.7941
1.000
FORMULA: 1000*(1+T)= 1081.7941
= 1030.794137
T = 3.08% 8.18%
R = 3.08% 8.18%
Morgan Stanley Equity Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.490144 87.03111
1 FEE 30-Jun-98 0.737333 15.033777 0.04905 0.06
RESULTING VALUE 30-Jun-98 15.033777 86.98207 1307.6690
1.000
FORMULA: 1000*(1+T)= 1307.6690
= 1256.668984
T = 25.67% 30.77%
R = 25.67% 30.77%
Morgan Stanley Value
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.460399 87.25700
1 FEE 30-Jun-98 0.737333 12.466750 0.05914 0.06
RESULTING VALUE 30-Jun-98 12.466750 87.19785 1087.0738
1.000
FORMULA: 1000*(1+T)= 1087.0738
= 1036.073833
T = 3.61% 8.71%
R = 3.61% 8.71%
Morgan Stanley Mid Cap Value
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.817598 84.61956
1 FEE 30-Jun-98 0.737333 15.013412 0.04911 0.06
RESULTING VALUE 30-Jun-98 15.013412 84.57045 1269.6911
1.000
FORMULA: 1000*(1+T)= 1269.6911
= 1218.691057
T = 21.87% 26.97%
R = 21.87% 26.97%
Morgan Stanley U.S. Real Estate
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.316843 96.92888
1 FEE 30-Jun-98 0.737333 11.006093 0.06699 0.06
RESULTING VALUE 30-Jun-98 11.006093 96.86188 1066.0709
1.000
FORMULA: 1000*(1+T)= 1066.0709
= 1015.070895
T = 1.51% 6.61%
R = 1.51% 6.61%
Morgan Stanley Global Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.400827 87.71294
1 FEE 30-Jun-98 0.737333 13.150030 0.05607 0.06
RESULTING VALUE 30-Jun-98 13.150030 87.65686 1152.6904
1.000
FORMULA: 1000*(1+T)= 1152.6904
= 1101.690396
T = 10.17% 15.27%
R = 10.17% 15.27%
Morgan Stanley International Magnum
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.589369 86.28597
1 FEE 30-Jun-98 0.737333 12.378248 0.05957 0.06
RESULTING VALUE 30-Jun-98 12.378248 86.22641 1067.3319
1.000
FORMULA: 1000*(1+T)= 1067.3319
= 1016.33186
T = 1.63% 6.73%
R = 1.63% 6.73%
Fidelity Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 39.473560 25.33341
1 FEE 30-Jun-98 0.737333 43.531509 0.01694 0.06
RESULTING VALUE 30-Jun-98 43.531509 25.31648 1102.0644
1.000
FORMULA: 1000*(1+T)= 1102.0644
= 1051.064365
T = 5.11% 10.21%
R = 5.11% 10.21%
Fidelity High Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 27.774047 36.00484
1 FEE 30-Jun-98 0.737333 27.775791 0.02655 0.06
RESULTING VALUE 30-Jun-98 27.775791 35.97829 999.3255
1.000
FORMULA: 1000*(1+T)= 999.3255
= 948.325459
T = -5.17% -0.07%
R = -5.17% -0.07%
Fidelity Contrafund
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 18.173486 55.02522
1 FEE 30-Jun-98 0.737333 21.897336 0.03367 0.06
RESULTING VALUE 30-Jun-98 21.897336 54.99154 1204.1683
1.000
FORMULA: 1000*(1+T)= 1204.1683
= 1153.168319
T = 15.32% 20.42%
R = 15.32% 20.42%
MFS Emerging Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 14.762677 67.73839
1 FEE 30-Jun-98 0.737333 19.429049 0.03795 0.06
RESULTING VALUE 30-Jun-98 19.429049 67.70044 1315.3552
1.000
FORMULA: 1000*(1+T)= 1315.3552
= 1264.355202
T = 26.44% 31.54%
R = 26.44% 31.54%
MFS Growth and Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 15.231891 65.65173
1 FEE 30-Jun-98 0.737333 19.155191 0.03849 0.06
RESULTING VALUE 30-Jun-98 19.155191 65.61324 1256.8341
1.000
FORMULA: 1000*(1+T)= 1256.8341
= 1205.8341
T = 20.58% 25.68%
R = 20.58% 25.68%
MFS New Discovery
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 9.853308 0.07483 0.06
RESULTING VALUE 30-Jun-98 9.8533#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Dreyfus Growth and Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 19.983139 50.04219
1 FEE 30-Jun-98 0.737333 22.546849 0.03270 0.06
RESULTING VALUE 30-Jun-98 22.546849 50.00949 1127.5563
1.000
FORMULA: 1000*(1+T)= 1127.5563
= 1076.556325
T = 7.66% 12.76%
R = 7.66% 12.76%
Dreyfus Money Market
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 12.425938 80.47682
1 FEE 30-Jun-98 0.737333 12.840060 0.05742 0.06
RESULTING VALUE 30-Jun-98 12.840060 80.41940 1032.5899
1.000
FORMULA: 1000*(1+T)= 1032.5899
= 981.5898891
T = -1.84% 3.26%
R = -1.84% 3.26%
Dreyfus Socially Responsible
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 19.504807 51.26941
1 FEE 30-Jun-98 0.737333 23.910790 0.03084 0.06
RESULTING VALUE 30-Jun-98 23.910790 51.23858 1225.1548
1.000
FORMULA: 1000*(1+T)= 1225.1548
= 1174.154827
T = 17.42% 22.52%
R = 17.42% 22.52%
Dreyfus Small Company
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.666027 85.71899
1 FEE 30-Jun-98 0.737333 13.217220 0.05579 0.06
RESULTING VALUE 30-Jun-98 13.217220 85.66320 1132.2294
1.000
FORMULA: 1000*(1+T)= 1132.2294
= 1081.229357
T = 8.12% 13.22%
R = 8.12% 13.22%
American Century Balanced
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 17.172125 58.23391
1 FEE 30-Jun-98 0.737333 20.554713 0.03587 0.06
RESULTING VALUE 30-Jun-98 20.554713 58.19804 1196.2440
1.000
FORMULA: 1000*(1+T)= 1196.2440
= 1145.243995
T = 14.52% 19.62%
R = 14.52% 19.62%
American Century International
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 13.779215 72.57307
1 FEE 30-Jun-98 0.737333 16.969086 0.04345 0.06
RESULTING VALUE 30-Jun-98 16.969086 72.52962 1230.7614
1.000
FORMULA: 1000*(1+T)= 1230.7614
= 1179.761413
T = 17.98% 23.08%
R = 17.98% 23.08%
Fidelity Equity Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 34.806452 28.73031
1 FEE 30-Jun-98 0.737333 39.087385 0.01886 0.06
RESULTING VALUE 30-Jun-98 39.087385 28.71144 1122.2552
1.000
FORMULA: 1000*(1+T)= 1122.2552
= 1071.25518
T = 7.13% 12.23%
R = 7.13% 12.23%
Dreyfus Stock Index
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 27.026439 37.00081
1 FEE 30-Jun-98 0.737333 34.506939 0.02137 0.06
RESULTING VALUE 30-Jun-98 34.506939 36.97944 1276.0472
1.000
FORMULA: 1000*(1+T)= 1276.0472
= 1225.047189
T = 22.50% 27.60%
R = 22.50% 27.60%
AIM Capital Appreciation
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 20.280363 49.30878
1 FEE 30-Jun-98 0.737333 11.764585 0.06267 0.06
RESULTING VALUE 30-Jun-98 11.764585 49.24611 579.3600
1.000
FORMULA: 1000*(1+T)= 579.3600
= 528.3600248
T = -47.16% -42.06%
R = -47.16% -42.06%
AIM Diversified Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 12.707280 78.69505
1 FEE 30-Jun-98 0.737333 13.861762 0.05319 0.06
RESULTING VALUE 30-Jun-98 13.861762 78.64186 1090.1147
1.000
FORMULA: 1000*(1+T)= 1090.1147
= 1039.114682
T = 3.91% 9.01%
R = 3.91% 9.01%
AIM Growth and Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 17.817410 56.12488
1 FEE 30-Jun-98 0.737333 21.615012 0.03411 0.06
RESULTING VALUE 30-Jun-98 21.615012 56.09077 1212.4026
1.000
FORMULA: 1000*(1+T)= 1212.4026
= 1161.402624
T = 16.14% 21.24%
R = 16.14% 21.24%
AIM Government Securities
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.321485 88.32764
1 FEE 30-Jun-98 0.737333 12.171675 0.06058 0.06
RESULTING VALUE 30-Jun-98 12.171675 88.26706 1074.3579
1.000
FORMULA: 1000*(1+T)= 1074.3579
= 1023.357939
T = 2.34% 7.44%
R = 2.34% 7.44%
AIM Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 18.571286 53.84657
1 FEE 30-Jun-98 0.737333 23.862749 0.03090 0.06
RESULTING VALUE 30-Jun-98 23.862749 53.81567 1284.1898
1.000
FORMULA: 1000*(1+T)= 1284.1898
= 1233.189785
T = 23.32% 28.42%
R = 23.32% 28.42%
AIM International Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 17.212060 58.09880
1 FEE 30-Jun-98 0.737333 19.270983 0.03826 0.06
RESULTING VALUE 30-Jun-98 19.270983 58.06054 1118.8836
1.000
FORMULA: 1000*(1+T)= 1118.8836
= 1067.883618
T = 6.79% 11.89%
R = 6.79% 11.89%
AIM Global Utilities
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 14.178452 70.52956
1 FEE 30-Jun-98 0.737333 17.158967 0.04297 0.06
RESULTING VALUE 30-Jun-98 17.158967 70.48659 1209.4771
1.000
FORMULA: 1000*(1+T)= 1209.4771
= 1158.477082
T = 15.85% 20.95%
R = 15.85% 20.95%
AIM Value
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 20.321928 49.20793
1 FEE 30-Jun-98 0.737333 25.267438 0.02918 0.06
RESULTING VALUE 30-Jun-98 25.267438 49.17875 1242.6210
1.000
FORMULA: 1000*(1+T)= 1242.6210
= 1191.620974
T = 19.16% 24.26%
R = 19.16% 24.26%
AIM Balanced
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.123491 0.07283 0.06
RESULTING VALUE 30-Jun-98 10.1234#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
AIM High Yield
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.013755 0.07363 0.06
RESULTING VALUE 30-Jun-98 10.0137#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Growth and Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.194691 0.07233 0.06
RESULTING VALUE 30-Jun-98 10.1946#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE U.S. Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 11.181834 0.06594 0.06
RESULTING VALUE 30-Jun-98 11.1818#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE Large Cap Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 11.181831 0.06594 0.06
RESULTING VALUE 30-Jun-98 11.1818#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE Small Cap Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.446937 0.07058 0.06
RESULTING VALUE 30-Jun-98 10.4469#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Capital Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.252700 0.07192 0.06
RESULTING VALUE 30-Jun-98 10.2527#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Mid Cap Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 9.375000 0.07865 0.06
RESULTING VALUE 30-Jun-98 9.3750#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs International Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 11.862448 0.06216 0.06
RESULTING VALUE 30-Jun-98 11.8624#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Global Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.194691 0.07233 0.06
RESULTING VALUE 30-Jun-98 10.1946#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Guardian
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 14.233284 0.05180 0.06
RESULTING VALUE 30-Jun-98 14.2332#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Mid-Cap Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 14.621502 0.05043 0.06
RESULTING VALUE 30-Jun-98 14.6215#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Partners
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 18.985835 52.67085
1 FEE 30-Jun-98 0.737333 22.450554 0.03284 0.06
RESULTING VALUE 30-Jun-98 22.450554 52.63800 1181.7523
1.000
FORMULA: 1000*(1+T)= 1181.7523
= 1130.752349
T = 13.08% 18.18%
R = 13.08% 18.18%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
5 yrs ago: 6/30/93
4 years Ago: 6/30/94
3 yrs ago: 6/30/95
2 Years ago: 6/28/96
1 Year Ago: 6/30/97
Date: 6/30/98
Morgan Stanley Fixed Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
<S> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 10.269622 0.07180
5 FEE 30-Jun-98 0.737333 11.117189 0.06632 0.03
RESULTING VALUE 30-Jun-98 11.117#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley Equity Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.490144 0.06417
5 FEE 30-Jun-98 0.737333 15.033777 0.04905 0.03
RESULTING VALUE 30-Jun-98 15.033#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley Value
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.460399 0.06434
5 FEE 30-Jun-98 0.737333 12.466750 0.05914 0.03
RESULTING VALUE 30-Jun-98 12.466#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley Mid Cap Value
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.817598 0.06239
5 FEE 30-Jun-98 0.737333 15.013412 0.04911 0.03
RESULTING VALUE 30-Jun-98 15.013#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley U.S. Real Estate
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 10.316843 0.07147
5 FEE 30-Jun-98 0.737333 11.006093 0.06699 0.03
RESULTING VALUE 30-Jun-98 11.006#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley Global Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.400827 0.06467
5 FEE 30-Jun-98 0.737333 13.150030 0.05607 0.03
RESULTING VALUE 30-Jun-98 13.150#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley International Magnum
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.589369 0.06362
5 FEE 30-Jun-98 0.737333 12.378248 0.05957 0.03
RESULTING VALUE 30-Jun-98 12.378#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Fidelity Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 22.247194 44.94949
1 FEE 30-Jun-94 0.737333 21.167322 0.03483
2 FEE 30-Jun-95 0.737333 28.536835 0.02584
3 FEE 28-Jun-96 0.737333 34.014114 0.02168
4 FEE 30-Jun-97 0.737333 39.473560 0.01868
5 FEE 30-Jun-98 0.737333 43.531509 0.01694 0.03
RESULTING VALUE 30-Jun-98 43.531509 44.83152 1951.5838
5.000
FORMULA: 1000*(1+T)= 1951.5838
= 1926.083848
T = 14.01% 14.31%
R = 92.61% 95.16%
Fidelity High Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 18.873767 52.98359
1 FEE 30-Jun-94 0.737333 19.685042 0.03746
2 FEE 30-Jun-95 0.737333 21.678712 0.03401
3 FEE 28-Jun-96 0.737333 24.653983 0.02991
4 FEE 30-Jun-97 0.737333 27.774047 0.02655
5 FEE 30-Jun-98 0.737333 27.775791 0.02655 0.03
RESULTING VALUE 30-Jun-98 27.775791 52.82912 1467.3707
5.000
FORMULA: 1000*(1+T)= 1467.3707
= 1441.870719
T = 7.59% 7.97%
R = 44.19% 46.74%
Fidelity Contrafund
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 12.393684 0.05949
3 FEE 28-Jun-96 0.737333 14.764222 0.04994
4 FEE 30-Jun-97 0.737333 18.173486 0.04057
5 FEE 30-Jun-98 0.737333 21.897336 0.03367 0.03
RESULTING VALUE 30-Jun-98 21.897#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
MFS Emerging Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 13.312529 0.05539
4 FEE 30-Jun-97 0.737333 14.762677 0.04995
5 FEE 30-Jun-98 0.737333 19.429049 0.03795 0.03
RESULTING VALUE 30-Jun-98 19.429#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
MFS Growth and Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 11.715638 0.06294
4 FEE 30-Jun-97 0.737333 15.231891 0.04841
5 FEE 30-Jun-98 0.737333 19.155191 0.03849 0.03
RESULTING VALUE 30-Jun-98 19.155#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
MFS New Discovery
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 9.853308 0.07483 0.03
RESULTING VALUE 30-Jun-98 9.853#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Dreyfus Growth and Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.853608 0.07483
2 FEE 30-Jun-95 0.737333 12.962646 0.05688
3 FEE 28-Jun-96 0.737333 17.848948 0.04131
4 FEE 30-Jun-97 0.737333 19.983139 0.03690
5 FEE 30-Jun-98 0.737333 22.546849 0.03270 0.03
RESULTING VALUE 30-Jun-98 22.546#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Dreyfus Money Market
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.989825 90.99326
1 FEE 30-Jun-94 0.737333 11.191098 0.06589
2 FEE 30-Jun-95 0.737333 11.617916 0.06347
3 FEE 28-Jun-96 0.737333 12.006681 0.06141
4 FEE 30-Jun-97 0.737333 12.425938 0.05934
5 FEE 30-Jun-98 0.737333 12.840060 0.05742 0.03
RESULTING VALUE 30-Jun-98 12.840060 90.68574 1164.4103
5.000
FORMULA: 1000*(1+T)= 1164.4103
= 1138.910289
T = 2.64% 3.09%
R = 13.89% 16.44%
Dreyfus Socially Responsible
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 10.529805 0.07002
2 FEE 30-Jun-95 0.737333 12.483175 0.05907
3 FEE 28-Jun-96 0.737333 15.553503 0.04741
4 FEE 30-Jun-97 0.737333 19.504807 0.03780
5 FEE 30-Jun-98 0.737333 23.910790 0.03084 0.03
RESULTING VALUE 30-Jun-98 23.910#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Dreyfus Small Company
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 10.378533 0.07104
4 FEE 30-Jun-97 0.737333 11.666027 0.06320
5 FEE 30-Jun-98 0.737333 13.217220 0.05579 0.03
RESULTING VALUE 30-Jun-98 13.217#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
American Century Balanced
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.831520 84.51999
1 FEE 30-Jun-94 0.737333 11.771578 0.06264
2 FEE 30-Jun-95 0.737333 13.466284 0.05475
3 FEE 28-Jun-96 0.737333 15.017865 0.04910
4 FEE 30-Jun-97 0.737333 17.172125 0.04294
5 FEE 30-Jun-98 0.737333 20.554713 0.03587 0.03
RESULTING VALUE 30-Jun-98 20.554713 84.27470 1732.2422
5.000
FORMULA: 1000*(1+T)= 1732.2422
= 1706.742202
T = 11.28% 11.61%
R = 70.67% 73.22%
American Century International
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.754865 0.07559
2 FEE 30-Jun-95 0.737333 9.699140 0.07602
3 FEE 28-Jun-96 0.737333 11.052815 0.06671
4 FEE 30-Jun-97 0.737333 13.779215 0.05351
5 FEE 30-Jun-98 0.737333 16.969086 0.04345 0.03
RESULTING VALUE 30-Jun-98 16.969#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Fidelity Equity Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 18.457534 54.17842
1 FEE 30-Jun-94 0.737333 19.541758 0.03773
2 FEE 30-Jun-95 0.737333 23.849991 0.03092
3 FEE 28-Jun-96 0.737333 28.614331 0.02577
4 FEE 30-Jun-97 0.737333 34.806452 0.02118
5 FEE 30-Jun-98 0.737333 39.087385 0.01886 0.03
RESULTING VALUE 30-Jun-98 39.087385 54.04396 2112.4369
5.000
FORMULA: 1000*(1+T)= 2112.4369
= 2086.936926
T = 15.85% 16.13%
R = 108.69% 111.24%
Dreyfus Stock Index
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 13.497545 74.08755
1 FEE 30-Jun-94 0.737333 13.412974 0.05497
2 FEE 30-Jun-95 0.737333 16.552775 0.04454
3 FEE 28-Jun-96 0.737333 20.454141 0.03605
4 FEE 30-Jun-97 0.737333 27.026439 0.02728
5 FEE 30-Jun-98 0.737333 34.506939 0.02137 0.03
RESULTING VALUE 30-Jun-98 34.506939 73.90333 2550.1778
5.000
FORMULA: 1000*(1+T)= 2550.1778
= 2524.677812
T = 20.35% 20.59%
R = 152.47% 155.02%
AIM Capital Appreciation
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.257539 97.48927
1 FEE 30-Jun-94 0.737333 11.097773 0.06644
2 FEE 30-Jun-95 0.737333 15.024985 0.04907
3 FEE 28-Jun-96 0.737333 16.942912 0.04352
4 FEE 30-Jun-97 0.737333 20.280363 0.03636
5 FEE 30-Jun-98 0.737333 11.764585 0.06267 0.03
RESULTING VALUE 30-Jun-98 11.764585 97.23121 1143.8848
5.000
FORMULA: 1000*(1+T)= 1143.8848
= 1118.384809
T = 2.26% 2.73%
R = 11.84% 14.39%
AIM Diversified Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.135252 98.66553
1 FEE 30-Jun-94 0.737333 9.938406 0.07419
2 FEE 30-Jun-95 0.737333 10.813513 0.06819
3 FEE 28-Jun-96 0.737333 11.636708 0.06336
4 FEE 30-Jun-97 0.737333 12.707280 0.05802
5 FEE 30-Jun-98 0.737333 13.861762 0.05319 0.03
RESULTING VALUE 30-Jun-98 13.861762 98.34857 1363.2845
5.000
FORMULA: 1000*(1+T)= 1363.2845
= 1337.784516
T = 5.99% 6.39%
R = 33.78% 36.33%
AIM Growth and Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.744889 0.07566
2 FEE 30-Jun-95 0.737333 11.792234 0.06253
3 FEE 28-Jun-96 0.737333 14.147410 0.05212
4 FEE 30-Jun-97 0.737333 17.817410 0.04138
5 FEE 30-Jun-98 0.737333 21.615012 0.03411 0.03
RESULTING VALUE 30-Jun-98 21.615#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
AIM Government Securities
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.125282 98.76268
1 FEE 30-Jun-94 0.737333 9.742026 0.07569
2 FEE 30-Jun-95 0.737333 10.567100 0.06978
3 FEE 28-Jun-96 0.737333 10.763421 0.06850
4 FEE 30-Jun-97 0.737333 11.321485 0.06513
5 FEE 30-Jun-98 0.737333 12.171675 0.06058 0.03
RESULTING VALUE 30-Jun-98 12.171675 98.42301 1197.9729
5.000
FORMULA: 1000*(1+T)= 1197.9729
= 1172.472901
T = 3.23% 3.68%
R = 17.25% 19.80%
AIM Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.434579 95.83520
1 FEE 30-Jun-94 0.737333 9.970487 0.07395
2 FEE 30-Jun-95 0.737333 12.763650 0.05777
3 FEE 28-Jun-96 0.737333 14.974099 0.04924
4 FEE 30-Jun-97 0.737333 18.571286 0.03970
5 FEE 30-Jun-98 0.737333 23.862749 0.03090 0.03
RESULTING VALUE 30-Jun-98 23.862749 95.58364 2280.8884
5.000
FORMULA: 1000*(1+T)= 2280.8884
= 2255.388436
T = 17.66% 17.93%
R = 125.54% 128.09%
AIM International Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 9.855898 101.46209
1 FEE 30-Jun-94 0.737333 11.408845 0.06463
2 FEE 30-Jun-95 0.737333 12.243966 0.06022
3 FEE 28-Jun-96 0.737333 14.744505 0.05001
4 FEE 30-Jun-97 0.737333 17.212060 0.04284
5 FEE 30-Jun-98 0.737333 19.270983 0.03826 0.03
RESULTING VALUE 30-Jun-98 19.270983 101.20613 1950.3417
5.000
FORMULA: 1000*(1+T)= 1950.3417
= 1924.841684
T = 13.99% 14.29%
R = 92.48% 95.03%
AIM Global Utilities
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.635177 0.07653
2 FEE 30-Jun-95 0.737333 10.630635 0.06936
3 FEE 28-Jun-96 0.737333 12.307418 0.05991
4 FEE 30-Jun-97 0.737333 14.178452 0.05200
5 FEE 30-Jun-98 0.737333 17.158967 0.04297 0.03
RESULTING VALUE 30-Jun-98 17.158#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
AIM Value
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.664022 93.77325
1 FEE 30-Jun-94 0.737333 11.106263 0.06639
2 FEE 30-Jun-95 0.737333 14.305125 0.05154
3 FEE 28-Jun-96 0.737333 16.355418 0.04508
4 FEE 30-Jun-97 0.737333 20.321928 0.03628
5 FEE 30-Jun-98 0.737333 25.267438 0.02918 0.03
RESULTING VALUE 30-Jun-98 25.267438 93.54477 2363.6367
5.000
FORMULA: 1000*(1+T)= 2363.6367
= 2338.136724
T = 18.52% 18.77%
R = 133.81% 136.36%
AIM Balanced
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.123491 0.07283 0.03
RESULTING VALUE 30-Jun-98 10.123#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
AIM High Yield
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.013755 0.07363 0.03
RESULTING VALUE 30-Jun-98 10.013#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Growth and Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.194691 0.07233 0.03
RESULTING VALUE 30-Jun-98 10.194#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE U.S. Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 11.181834 0.06594 0.03
RESULTING VALUE 30-Jun-98 11.181#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE Large Cap Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 11.181831 0.06594 0.03
RESULTING VALUE 30-Jun-98 11.181#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE Small Cap Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.446937 0.07058 0.03
RESULTING VALUE 30-Jun-98 10.446#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Capital Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.252700 0.07192 0.03
RESULTING VALUE 30-Jun-98 10.252#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Mid Cap Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 9.375000 0.07865 0.03
RESULTING VALUE 30-Jun-98 9.375#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs International Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 11.862448 0.06216 0.03
RESULTING VALUE 30-Jun-98 11.862#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Global Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.194691 0.07233 0.03
RESULTING VALUE 30-Jun-98 10.194#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Guardian
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 14.233284 0.05180 0.03
RESULTING VALUE 30-Jun-98 14.233#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Mid-Cap Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 14.621502 0.05043 0.03
RESULTING VALUE 30-Jun-98 14.621#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Partners
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.209714 0.08006
2 FEE 30-Jun-95 0.737333 11.594343 0.06359
3 FEE 28-Jun-96 0.737333 14.449285 0.05103
4 FEE 30-Jun-97 0.737333 18.985835 0.03884
5 FEE 30-Jun-98 0.737333 22.450554 0.03284 0.03
RESULTING VALUE 30-Jun-98 22.450#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Morgan Stanley Fixed Income
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
<S> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 10.871609 0.06782 0.06
2 FEE 30-Jun-98 0.7373334 11.117189 0.06632 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.05
5 FEE N/A 0 N/A 0.00000 0.04
6 FEE N/A 0 N/A 0.00000 0.03
7 FEE N/A 0 N/A 0.00000 0
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.117189 99.86585 1110.2276
1.489
FORMULA: 1000*(1+T)= 1110.2276
= 1059.227577
T = 3.94%
R = 5.92%
Morgan Stanley Equity Growth
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 13.064702 0.05644 0.06
2 FEE 30-Jun-98 0.7373334 15.033777 0.04905 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 15.033777 99.89452 1501.7919
1.489
FORMULA: 1000*(1+T)= 1501.7919
= 1450.791904
T = 28.38%
R = 45.08%
Morgan Stanley Value
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 11.937633 0.06177 0.06
2 FEE 30-Jun-98 0.7373334 12.466750 0.05914 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 12.466750 99.87909 1245.1677
1.489
FORMULA: 1000*(1+T)= 1245.1677
= 1194.167652
T = 12.65%
R = 19.42%
Morgan Stanley Mid Cap Value
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 13.808418 0.05340 0.06
2 FEE 30-Jun-98 0.7373334 15.013412 0.04911 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 15.013412 99.89749 1499.8022
1.489
FORMULA: 1000*(1+T)= 1499.8022
= 1448.80219
T = 28.26%
R = 44.88%
Morgan Stanley U.S. Real Estate
04-Mar-97
TO NO. YEARS 1.322
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 04-Mar-97 1000.00 10.000000 100.00000
1 FEE 04-Mar-98 0.7373334 11.368199 0.06486 0.06
2 FEE 30-Jun-98 0.7373334 11.006093 0.06699 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.006093 99.86815 1099.1581
1.322
FORMULA: 1000*(1+T)= 1099.1581
= 1048.158119
T = 3.62%
R = 4.82%
Morgan Stanley Global Equity
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 11.834057 0.06231 0.06
2 FEE 30-Jun-98 0.7373334 13.150030 0.05607 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 13.150030 99.88162 1313.4463
1.489
FORMULA: 1000*(1+T)= 1313.4463
= 1262.44634
T = 16.94%
R = 26.24%
Morgan Stanley International Magnum
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 10.602751 0.06954 0.06
2 FEE 30-Jun-98 0.7373334 12.378248 0.05957 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 12.378248 99.87089 1236.2267
1.489
FORMULA: 1000*(1+T)= 1236.2267
= 1185.226662
T = 12.09%
R = 18.52%
Fidelity Growth
30-Jun-88
TO NO. YEARS 10.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-88 1000.00 11.672492 85.67151
1 FEE 30-Jun-89 0.7373334 13.390133 0.05507
2 FEE 30-Jun-90 0.7373334 15.471073 0.04766
3 FEE 30-Jun-91 0.7373334 14.844117 0.04967
4 FEE 30-Jun-92 0.7373334 17.256529 0.04273
5 FEE 30-Jun-93 0.7373334 22.247194 0.03314
6 FEE 30-Jun-94 0.7373334 21.167322 0.03483
7 FEE 30-Jun-95 0.7373334 28.536835 0.02584
8 FEE 30-Jun-96 0.7373334 34.014114 0.02168
9 FEE 30-Jun-97 0.7373334 39.473560 0.01868
10 FEE 30-Jun-98 0.7373334 43.531509 0.01694 0
RESULTING VALUE 30-Jun-98 43.531509 85.32528 3714.3380
10.000
FORMULA: 1000*(1+T)= 3714.3380
= 3714.33803
T = 14.02% 14.02%
R = 271.43% 271.43%
Fidelity High Income
30-Jun-88
TO NO. YEARS 10.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-88 1000.00 11.380703 87.86803
1 FEE 30-Jun-89 0.7373334 12.129524 0.06079
2 FEE 30-Jun-90 0.7373334 10.766784 0.06848
3 FEE 30-Jun-91 0.7373334 12.531650 0.05884
4 FEE 30-Jun-92 0.7373334 16.145399 0.04567
5 FEE 30-Jun-93 0.7373334 18.873767 0.03907
6 FEE 30-Jun-94 0.7373334 19.685042 0.03746
7 FEE 30-Jun-95 0.7373334 21.678712 0.03401
8 FEE 30-Jun-96 0.7373334 24.653983 0.02991
9 FEE 30-Jun-97 0.7373334 27.774047 0.02655
10 FEE 30-Jun-98 0.7373334 27.775791 0.02655 0
RESULTING VALUE 30-Jun-98 27.775791 87.44072 2428.7352
10.000
FORMULA: 1000*(1+T)= 2428.7352
= 2428.735216
T = 9.28% 9.28%
R = 142.87% 142.87%
Fidelity Contrafund
03-Jan-95
TO NO. YEARS 3.488
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 03-Jan-95 1000.00 10.000000 100.00000
1 FEE 03-Jan-96 0.7373334 13.652091 0.05401 0.06
2 FEE 03-Jan-97 0.7373334 16.397210 0.04497 0.06
3 FEE 03-Jan-98 0.7373334 20.018541 0.03683 0.05
4 30-Jun-98 0.7373334 21.897336 0.03367 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 21.897336 99.83052 2186.0224
3.488
FORMULA: 1000*(1+T)= 2186.0224
= 2143.522425
T = 24.43%
R = 114.35%
Fidelity Equity Income
30-Jun-88
TO NO. YEARS 10.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-88 1000.00 11.530214 86.72866
1 FEE 30-Jun-89 0.7373334 13.372975 0.05514
2 FEE 30-Jun-90 0.7373334 12.802789 0.05759
3 FEE 30-Jun-91 0.7373334 13.029106 0.05659
4 FEE 30-Jun-92 0.7373334 15.362043 0.04800
5 FEE 30-Jun-93 0.7373334 18.457534 0.03995
6 FEE 30-Jun-94 0.7373334 19.541758 0.03773
7 FEE 30-Jun-95 0.7373334 23.849991 0.03092
8 FEE 30-Jun-96 0.7373334 28.614331 0.02577
9 FEE 30-Jun-97 0.7373334 34.806452 0.02118
10 FEE 30-Jun-98 0.7373334 39.087385 0.01886 0
RESULTING VALUE 30-Jun-98 39.087385 86.33693 3374.6850
10.000
FORMULA: 1000*(1+T)= 3374.6850
= 3374.684956
T = 12.93% 12.93%
R = 237.47% 237.47%
MFS Emerging Growth
24-Jul-95
TO NO. YEARS 2.935
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 24-Jul-95 1000.00 10.000000 100.00000
1 FEE 24-Jul-96 0.7373334 11.839006 0.06228 0.06
2 FEE 24-Jul-97 0.7373334 15.943581 0.04625 0.06
3 FEE 30-Jun-98 0.7373334 19.429049 0.03795 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 19.429049 99.85352 1940.0590
2.935
FORMULA: 1000*(1+T)= 1940.0590
= 1897.559001
T = 24.39%
R = 89.76%
MFS Growth and Income
09-Oct-95
TO NO. YEARS 2.724
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 09-Oct-95 1000.00 10.000000 100.00000
1 FEE 09-Oct-96 0.7373334 12.286564 0.06001 0.06
2 FEE 09-Oct-97 0.7373334 16.363690 0.04506 0.06
3 FEE 30-Jun-98 0.7373334 19.155191 0.03849 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 19.155191 99.85644 1912.7691
2.724
FORMULA: 1000*(1+T)= 1912.7691
= 1870.269122
T = 25.84%
R = 87.03%
MFS New Discovery
29-Apr-98
TO NO. YEARS 0.170
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Apr-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 9.853308 0.07483 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 9.853308 99.92517 984.5935
0.170
FORMULA: 1000*(1+T)= 984.5935
= 933.5934666
T = -33.29%
R = -6.64%
Dreyfus Growth & Income
02-May-94
TO NO. YEARS 4.162
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.7373334 12.034255 0.06127 0.06
2 FEE 02-May-96 0.7373334 17.190214 0.04289 0.06
3 FEE 02-May-97 0.7373334 18.213986 0.04048 0.05
4 02-May-98 0.7373334 23.981114 0.03075 0.05
5 30-Jun-98 0.7373334 22.546849 0.03270 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 22.546849 99.79191 2249.9931
4.162
FORMULA: 1000*(1+T)= 2249.9931
= 2215.993068
T = 21.07%
R = 121.60%
Dreyfus Money Market
31-Aug-90
TO NO. YEARS 7.830
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Aug-90 1000.00 10.000000 100.00000
1 FEE 31-Aug-91 0.7373334 10.493294 0.07027 0.06
2 FEE 31-Aug-92 0.7373334 10.822029 0.06813 0.06
3 FEE 31-Aug-93 0.7373334 11.019306 0.06691 0.05
4 31-Aug-94 0.7373334 11.247238 0.06556 0.05
5 31-Aug-95 0.7373334 11.694284 0.06305 0.04
6 31-Aug-96 0.7373334 12.106118 0.06091 0.03
7 31-Aug-97 0.7373334 12.498376 0.05899 0
8 30-Jun-98 0.7373334 12.840060 0.05742 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 12.840060 99.48876 1277.4416
7.830
FORMULA: 1000*(1+T)= 1277.4416
= 1277.441585
T = 3.18%
R = 27.74%
Dreyfus Socially Responsible
07-Oct-93
TO NO. YEARS 4.728
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 07-Oct-93 1000.00 10.000000 100.00000
1 FEE 07-Oct-94 0.7373334 10.709088 0.06885 0.06
2 FEE 07-Oct-95 0.7373334 13.735778 0.05368 0.06
3 FEE 07-Oct-96 0.7373334 16.166826 0.04561 0.05
4 07-Oct-97 0.7373334 22.279807 0.03309 0.05
5 30-Jun-98 0.7373334 23.910790 0.03084 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 23.910790 99.76793 2385.5300
4.728
FORMULA: 1000*(1+T)= 2385.5300
= 2351.530027
T = 19.82%
R = 135.15%
Dreyfus Small Company
30-Apr-96
TO NO. YEARS 2.166
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-96 1000.00 10.000000 100.00000
1 FEE 30-Apr-97 0.7373334 10.373205 0.07108 0.06
2 FEE 30-Apr-98 0.7373334 13.874426 0.05314 0.06
3 FEE 30-Jun-98 0.7373334 13.217220 0.05579 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 13.217220 99.81999 1319.3428
2.166
FORMULA: 1000*(1+T)= 1319.3428
= 1276.842772
T = 11.95%
R = 27.68%
Dreyfus Stock Index
29-Sep-89
TO NO. YEARS 8.750
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-89 1000.00 10.000000 100.00000
1 FEE 29-Sep-90 0.7373334 8.924120 0.08262 0.06
2 FEE 29-Sep-91 0.7373334 11.669979 0.06318 0.06
3 FEE 29-Sep-92 0.7373334 12.345956 0.05972 0.05
4 29-Sep-93 0.7373334 13.895666 0.05306 0.05
5 29-Sep-94 0.7373334 14.295260 0.05158 0.04
6 29-Sep-95 0.7373334 17.782033 0.04147 0.03
7 29-Sep-96 0.7373334 19.890704 0.03707 0
8 29-Sep-97 0.7373334 28.325689 0.02603 0
9 30-Jun-98 0.7373334 34.506939 0.02137 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 34.506939 99.56390 3435.6454
8.750
FORMULA: 1000*(1+T)= 3435.6454
= 3435.645396
T = 15.15%
R = 243.56%
American Century Balanced
01-May-91
TO NO. YEARS 7.165
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-91 1000.00 10.000000 100.00000
1 FEE 01-May-92 0.7373334 11.245962 0.06556 0.06
2 FEE 01-May-93 0.7373334 11.348164 0.06497 0.06
3 FEE 01-May-94 0.7373334 12.107196 0.06090 0.05
4 01-May-95 0.7373334 12.691267 0.05810 0.05
5 01-May-96 0.7373334 14.691806 0.05019 0.04
6 01-May-97 0.7373334 15.906282 0.04635 0.03
7 01-May-98 0.7373334 19.633070 0.03756 0
8 30-Jun-98 0.7373334 20.554713 0.03587 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 20.554713 99.58049 2046.8485
7.165
FORMULA: 1000*(1+T)= 2046.8485
= 2046.848491
T = 10.51%
R = 104.68%
American Century International
02-May-94
TO NO. YEARS 4.162
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.7373334 9.566621 0.07707 0.06
2 FEE 02-May-96 0.7373334 10.965358 0.06724 0.06
3 FEE 02-May-97 0.7373334 12.564234 0.05869 0.05
4 02-May-98 0.7373334 16.463283 0.04479 0.05
5 30-Jun-98 0.7373334 16.969086 0.04345 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 16.969086 99.70876 1691.9665
4.162
FORMULA: 1000*(1+T)= 1691.9665
= 1657.966543
T = 12.92%
R = 65.80%
AIM Capital Appreciation
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 10.792653 0.06832 0.06
2 FEE 05-May-95 0.7373334 14.831228 0.04971 0.06
3 FEE 05-May-96 0.7373334 15.753507 0.04680 0.05
4 05-May-97 0.7373334 19.882423 0.03708 0.05
5 05-May-98 0.7373334 19.419852 0.03797 0.04
6 30-Jun-98 0.7373334 11.764585 0.06267 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.764585 99.69744 1172.8990
5.153
FORMULA: 1000*(1+T)= 1172.8990
= 1147.398959
T = 2.70%
R = 14.74%
AIM Diversified Income
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 9.963206 0.07401 0.06
2 FEE 05-May-95 0.7373334 10.631869 0.06935 0.06
3 FEE 05-May-96 0.7373334 11.345129 0.06499 0.05
4 05-May-97 0.7373334 12.426443 0.05934 0.05
5 05-May-98 0.7373334 13.812899 0.05338 0.04
6 30-Jun-98 0.7373334 13.861762 0.05319 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 13.861762 99.62574 1380.9884
5.153
FORMULA: 1000*(1+T)= 1380.9884
= 1355.488354
T = 6.08%
R = 35.55%
AIM Growth and Income
02-May-94
TO NO. YEARS 4.162
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.7373334 11.024389 0.06688 0.06
2 FEE 02-May-96 0.7373334 13.732554 0.05369 0.06
3 FEE 02-May-97 0.7373334 16.284597 0.04528 0.05
4 02-May-98 0.7373334 21.350414 0.03453 0.05
5 30-Jun-98 0.7373334 21.615012 0.03411 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 21.615012 99.76550 2156.4325
4.162
FORMULA: 1000*(1+T)= 2156.4325
= 2122.432495
T = 19.82%
R = 112.24%
AIM Government Securities
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 9.781940 0.07538 0.06
2 FEE 05-May-95 0.7373334 10.328329 0.07139 0.06
3 FEE 05-May-96 0.7373334 10.606016 0.06952 0.05
4 05-May-97 0.7373334 11.181082 0.06594 0.05
5 05-May-98 0.7373334 11.991775 0.06149 0.04
6 30-Jun-98 0.7373334 12.171675 0.06058 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 12.171675 99.59570 1212.2465
5.153
FORMULA: 1000*(1+T)= 1212.2465
= 1186.746542
T = 3.38%
R = 18.67%
AIM Growth
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 10.487725 0.07030 0.06
2 FEE 05-May-95 0.7373334 11.702528 0.06301 0.06
3 FEE 05-May-96 0.7373334 14.751263 0.04998 0.05
4 05-May-97 0.7373334 17.337125 0.04253 0.05
5 05-May-98 0.7373334 23.301979 0.03164 0.04
6 30-Jun-98 0.7373334 23.862749 0.03090 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 23.862749 99.71163 2379.3937
5.153
FORMULA: 1000*(1+T)= 2379.3937
= 2353.893699
T = 18.07%
R = 135.39%
AIM International Equity
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 11.574535 0.06370 0.06
2 FEE 05-May-95 0.7373334 11.943699 0.06173 0.06
3 FEE 05-May-96 0.7373334 14.282600 0.05162 0.05
4 05-May-97 0.7373334 15.742985 0.04684 0.05
5 05-May-98 0.7373334 19.242150 0.03832 0.04
6 30-Jun-98 0.7373334 19.270983 0.03826 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 19.270983 99.69952 1921.3078
5.153
FORMULA: 1000*(1+T)= 1921.3078
= 1895.807805
T = 13.22%
R = 89.58%
AIM Global Utilities
02-May-94
TO NO. YEARS 4.162
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.7373334 10.128103 0.07280 0.06
2 FEE 02-May-96 0.7373334 11.887406 0.06203 0.06
3 FEE 02-May-97 0.7373334 13.334964 0.05529 0.05
4 02-May-98 0.7373334 17.317364 0.04258 0.05
5 30-Jun-98 0.7373334 17.158967 0.04297 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 17.158967 99.72433 1711.1665
4.162
FORMULA: 1000*(1+T)= 1711.1665
= 1677.166507
T = 13.23%
R = 67.72%
AIM Value
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 11.596907 0.06358 0.06
2 FEE 05-May-95 0.7373334 13.087930 0.05634 0.06
3 FEE 05-May-96 0.7373334 15.740189 0.04684 0.05
4 05-May-97 0.7373334 18.904213 0.03900 0.05
5 05-May-98 0.7373334 24.271640 0.03038 0.04
6 30-Jun-98 0.7373334 25.267438 0.02918 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 25.267438 99.73468 2520.0397
5.153
FORMULA: 1000*(1+T)= 2520.0397
= 2494.539735
T = 19.41%
R = 149.45%
AIM Balanced
01-May-98
TO NO. YEARS 0.164
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.123491 0.07283 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.123491 99.92717 1011.6118
0.164
FORMULA: 1000*(1+T)= 1011.6118
= 960.6117666
T = -21.70%
R = -3.94%
AIM High Yield
01-May-98
TO NO. YEARS 0.164
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.013755 0.07363 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.013755 99.92637 1000.6382
0.164
FORMULA: 1000*(1+T)= 1000.6382
= 949.6381666
T = -26.99%
R = -5.04%
Goldman Sachs Growth and Income
12-Jan-98
TO NO. YEARS 0.463
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 12-Jan-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.194691 0.07233 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.194691 99.92767 1018.7318
0.463
FORMULA: 1000*(1+T)= 1018.7318
= 967.7317666
T = -6.84%
R = -3.23%
Goldman Sachs CORE U.S. Equity
13-Feb-98
TO NO. YEARS 0.375
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 13-Feb-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 11.181834 0.06594 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.181834 99.93406 1117.4461
0.375
FORMULA: 1000*(1+T)= 1117.4461
= 1066.446067
T = 18.71%
R = 6.64%
Goldman Sachs CORE Large Cap Growth
13-Feb-98
TO NO. YEARS 0.375
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 13-Feb-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 11.181831 0.06594 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.181831 99.93406 1117.4458
0.375
FORMULA: 1000*(1+T)= 1117.4458
= 1066.445767
T = 18.71%
R = 6.64%
Goldman Sachs CORE Small Cap Equity
13-Feb-98
TO NO. YEARS 0.375
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 13-Feb-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.446937 0.07058 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.446937 99.92942 1043.9564
0.375
FORMULA: 1000*(1+T)= 1043.9564
= 992.9563666
T = -1.87%
R = -0.70%
Goldman Sachs Capital Growth
30-Apr-98
TO NO. YEARS 0.167
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.252700 0.07192 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.252700 99.92808 1024.5327
0.167
FORMULA: 1000*(1+T)= 1024.5327
= 973.5326666
T = -14.84%
R = -2.65%
Goldman Sachs Mid Cap Equity
30-Apr-98
TO NO. YEARS 0.167
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 9.375000 0.07865 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 9.375000 99.92135 936.7627
0.167
FORMULA: 1000*(1+T)= 936.7627
= 885.7626666
T = -51.63%
R = -11.42%
Goldman Sachs International Equity
12-Jan-98
TO NO. YEARS 0.463
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 12-Jan-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 11.862448 0.06216 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.862448 99.93784 1185.5075
0.463
FORMULA: 1000*(1+T)= 1185.5075
= 1134.507467
T = 31.36%
R = 13.45%
Goldman Sachs Global Income
12-Jan-98
TO NO. YEARS 0.463
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 12-Jan-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.194691 0.07233 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.194691 99.92767 1018.7318
0.463
FORMULA: 1000*(1+T)= 1018.7318
= 967.7317666
T = -6.84%
R = -3.23%
Neuberger & Berman AMT Guardian
03-Nov-97
TO NO. YEARS 0.654
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 03-Nov-97 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 14.233284 0.05180 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 14.233284 99.94820 1422.5911
0.654
FORMULA: 1000*(1+T)= 1422.5911
= 1371.591067
T = 62.07%
R = 37.16%
Neuberger & Berman AMT Mid-Cap Growth
03-Nov-97
TO NO. YEARS 0.654
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 03-Nov-97 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 14.621502 0.05043 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 14.621502 99.94957 1461.4129
0.654
FORMULA: 1000*(1+T)= 1461.4129
= 1410.412867
T = 69.14%
R = 41.04%
Neuberger & Berman AMT Partners
22-Mar-94
TO NO. YEARS 4.274
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 22-Mar-94 1000.00 10.000000 100.00000
1 FEE 22-Mar-95 0.7373334 10.276057 0.07175 0.06
2 FEE 22-Mar-96 0.7373334 14.023498 0.05258 0.06
3 FEE 22-Mar-97 0.7373334 17.127873 0.04305 0.05
4 22-Mar-98 0.7373334 23.675305 0.03114 0.05
5 30-Jun-98 0.7373334 22.450554 0.03284 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 22.450554 99.76863 2239.8611
4.274
FORMULA: 1000*(1+T)= 2239.8611
= 2205.861109
T = 20.34%
R = 120.59%
</TABLE>
<PAGE>
One Year
1yr ago: 6/30/97
Date: 6/30/98
<TABLE>
<CAPTION>
Morgan Stanley Fixed Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
<S> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91 000.00 10.280701 97.26963
1 FEE 30-Jun-98 0.737333 11.153687 0.06611 0.06
RESULTING VALUE 30-Jun-98 11.153687 97.20353 1084.1777
1.000
FORMULA: 1000*(1+T)= 1084.1777
= 033.177693
T = 3.32% 8.42%
R = 3.32% 8.42%
Morgan Stanley Equity Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.502536 86.93735
1 FEE 30-Jun-98 0.737333 15.083085 0.04888 0.06
RESULTING VALUE 30-Jun-98 15.083085 86.88847 1310.5461
1.000
FORMULA: 1000*(1+T)= 1310.5461
= 1259.546109
T = 25.95% 31.05%
R = 25.95% 31.05%
Morgan Stanley Value
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.472756 87.16301
1 FEE 30-Jun-98 0.737333 12.507673 0.05895 0.06
RESULTING VALUE 30-Jun-98 12.507673 87.10406 1089.4692
1.000
FORMULA: 1000*(1+T)= 1089.4692
= 1038.469152
T = 3.85% 8.95%
R = 3.85% 8.95%
Morgan Stanley Mid Cap Value
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.830345 84.52839
1 FEE 30-Jun-98 0.737333 15.062698 0.04895 0.06
RESULTING VALUE 30-Jun-98 15.062698 84.47944 1272.4883
1.000
FORMULA: 1000*(1+T)= 1272.4883
= 1221.488257
T = 22.15% 27.25%
R = 22.15% 27.25%
Morgan Stanley U.S. Real Estate
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.324183 96.85996
1 FEE 30-Jun-98 0.737333 11.038182 0.06680 0.06
RESULTING VALUE 30-Jun-98 11.038182 96.79317 1068.4206
1.000
FORMULA: 1000*(1+T)= 1068.4206
= 1017.420584
T = 1.74% 6.84%
R = 1.74% 6.84%
Morgan Stanley Global Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.413116 87.61849
1 FEE 30-Jun-98 0.737333 13.193205 0.05589 0.06
RESULTING VALUE 30-Jun-98 13.193205 87.56260 1155.2314
1.000
FORMULA: 1000*(1+T)= 1155.2314
= 1104.231378
T = 10.42% 15.52%
R = 10.42% 15.52%
Morgan Stanley International Magnum
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.601873 86.19298
1 FEE 30-Jun-98 0.737333 12.418885 0.05937 0.06
RESULTING VALUE 30-Jun-98 12.418885 86.13361 1069.6834
1.000
FORMULA: 1000*(1+T)= 1069.6834
= 1018.683365
T = 1.87% 6.97%
R = 1.87% 6.97%
Fidelity Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 40.415686 24.74287
1 FEE 30-Jun-98 0.737333 44.668598 0.01651 0.06
RESULTING VALUE 30-Jun-98 44.668598 24.72636 1104.4919
1.000
FORMULA: 1000*(1+T)= 1104.4919
= 1053.491909
T = 5.35% 10.45%
R = 5.35% 10.45%
Fidelity High Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 28.502835 35.08423
1 FEE 30-Jun-98 0.737333 28.567386 0.02581 0.06
RESULTING VALUE 30-Jun-98 28.567386 35.05842 1001.5274
1.000
FORMULA: 1000*(1+T)= 1001.5274
= 950.5273887
T = -4.95% 0.15%
R = -4.95% 0.15%
Fidelity Contrafund
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 18.273161 54.72507
1 FEE 30-Jun-98 0.737333 22.065898 0.03342 0.06
RESULTING VALUE 30-Jun-98 22.065898 54.69165 1206.8205
1.000
FORMULA: 1000*(1+T)= 1206.8205
= 1155.820461
T = 15.58% 20.68%
R = 15.58% 20.68%
MFS Emerging Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 14.825612 67.45084
1 FEE 30-Jun-98 0.737333 19.554829 0.03771 0.06
RESULTING VALUE 30-Jun-98 19.554829 67.41314 1318.2523
1.000
FORMULA: 1000*(1+T)= 1318.2523
= 1267.252331
T = 26.73% 31.83%
R = 26.73% 31.83%
MFS Growth and Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 15.289713 65.40345
1 FEE 30-Jun-98 0.737333 19.270151 0.03826 0.06
RESULTING VALUE 30-Jun-98 19.270151 65.36519 1259.5970
1.000
FORMULA: 1000*(1+T)= 1259.5970
= 1208.59705
T = 20.86% 25.96%
R = 20.86% 25.96%
MFS New Discovery
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 9.856995 0.07480 0.06
RESULTING VALUE 30-Jun-98 9.8569#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Dreyfus Growth and Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 20.120438 49.70071
1 FEE 30-Jun-98 0.737333 22.751740 0.03241 0.06
RESULTING VALUE 30-Jun-98 22.751740 49.66830 1130.0402
1.000
FORMULA: 1000*(1+T)= 1130.0402
= 1079.040237
T = 7.90% 13.00%
R = 7.90% 13.00%
Dreyfus Money Market
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 12.613553 79.27980
1 FEE 30-Jun-98 0.737333 13.062628 0.05645 0.06
RESULTING VALUE 30-Jun-98 13.062628 79.22336 1034.8652
1.000
FORMULA: 1000*(1+T)= 1034.8652
= 983.8652442
T = -1.61% 3.49%
R = -1.61% 3.49%
Dreyfus Socially Responsible
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 19.664000 50.85435
1 FEE 30-Jun-98 0.737333 24.154905 0.03053 0.06
RESULTING VALUE 30-Jun-98 24.154905 50.82383 1227.6447
1.000
FORMULA: 1000*(1+T)= 1227.6447
= 1176.644735
T = 17.66% 22.76%
R = 17.66% 22.76%
Dreyfus Small Company
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.695713 85.50141
1 FEE 30-Jun-98 0.737333 13.280024 0.05552 0.06
RESULTING VALUE 30-Jun-98 13.280024 85.44589 1134.7235
1.000
FORMULA: 1000*(1+T)= 1134.7235
= 1083.723497
T = 8.37% 13.47%
R = 8.37% 13.47%
American Century Balanced
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 17.406514 57.44976
1 FEE 30-Jun-98 0.737333 20.881128 0.03531 0.06
RESULTING VALUE 30-Jun-98 20.881128 57.41445 1198.8784
1.000
FORMULA: 1000*(1+T)= 1198.8784
= 1147.878397
T = 14.79% 19.89%
R = 14.79% 19.89%
American Century International
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 13.875381 72.07009
1 FEE 30-Jun-98 0.737333 17.125110 0.04306 0.06
RESULTING VALUE 30-Jun-98 17.125110 72.02704 1233.4709
1.000
FORMULA: 1000*(1+T)= 1233.4709
= 1182.470938
T = 18.25% 23.35%
R = 18.25% 23.35%
Fidelity Equity Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 35.634013 28.06308
1 FEE 30-Jun-98 0.737333 40.104820 0.01839 0.06
RESULTING VALUE 30-Jun-98 40.104820 28.04469 1124.7273
1.000
FORMULA: 1000*(1+T)= 1124.7273
= 1073.727261
T = 7.37% 12.47%
R = 7.37% 12.47%
Dreyfus Stock Index
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 27.486593 36.38137
1 FEE 30-Jun-98 0.737333 35.171433 0.02096 0.06
RESULTING VALUE 30-Jun-98 35.171433 36.36041 1278.8477
1.000
FORMULA: 1000*(1+T)= 1278.8477
= 1227.847699
T = 22.78% 27.88%
R = 22.78% 27.88%
AIM Capital Appreciation
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 20.466213 48.86102
1 FEE 30-Jun-98 0.737333 11.764585 0.06267 0.06
RESULTING VALUE 30-Jun-98 11.764585 48.79834 574.0923
1.000
FORMULA: 1000*(1+T)= 574.0923
= 523.092265
T = -47.69% -42.59%
R = -47.69% -42.59%
AIM Diversified Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 12.823920 77.97928
1 FEE 30-Jun-98 0.737333 14.019795 0.05259 0.06
RESULTING VALUE 30-Jun-98 14.019795 77.92668 1092.5161
1.000
FORMULA: 1000*(1+T)= 1092.5161
= 1041.516134
T = 4.15% 9.25%
R = 4.15% 9.25%
AIM Growth and Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 17.941712 55.73604
1 FEE 30-Jun-98 0.737333 21.813719 0.03380 0.06
RESULTING VALUE 30-Jun-98 21.813719 55.70224 1215.0730
1.000
FORMULA: 1000*(1+T)= 1215.0730
= 1164.073008
T = 16.41% 21.51%
R = 16.41% 21.51%
AIM Government Securities
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.425413 87.52419
1 FEE 30-Jun-98 0.737333 12.310448 0.05989 0.06
RESULTING VALUE 30-Jun-98 12.310448 87.46429 1076.7246
1.000
FORMULA: 1000*(1+T)= 1076.7246
= 1025.724637
T = 2.57% 7.67%
R = 2.57% 7.67%
AIM Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 18.741709 53.35693
1 FEE 30-Jun-98 0.737333 24.134722 0.03055 0.06
RESULTING VALUE 30-Jun-98 24.134722 53.32638 1287.0173
1.000
FORMULA: 1000*(1+T)= 1287.0173
= 1236.017268
T = 23.60% 28.70%
R = 23.60% 28.70%
AIM International Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 17.370006 57.57050
1 FEE 30-Jun-98 0.737333 19.490648 0.03783 0.06
RESULTING VALUE 30-Jun-98 19.490648 57.53267 1121.3491
1.000
FORMULA: 1000*(1+T)= 1121.3491
= 1070.349095
T = 7.03% 12.13%
R = 7.03% 12.13%
AIM Global Utilities
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 14.277390 70.04081
1 FEE 30-Jun-98 0.737333 17.316725 0.04258 0.06
RESULTING VALUE 30-Jun-98 17.316725 69.99823 1212.1402
1.000
FORMULA: 1000*(1+T)= 1212.1402
= 1161.14016
T = 16.11% 21.21%
R = 16.11% 21.21%
AIM Value
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 20.508380 48.76056
1 FEE 30-Jun-98 0.737333 25.555377 0.02885 0.06
RESULTING VALUE 30-Jun-98 25.555377 48.73170 1245.3570
1.000
FORMULA: 1000*(1+T)= 1245.3570
= 1194.357044
T = 19.44% 24.54%
R = 19.44% 24.54%
AIM Balanced
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.127154 0.07281 0.06
RESULTING VALUE 30-Jun-98 10.1271#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
AIM High Yield
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.017375 0.07361 0.06
RESULTING VALUE 30-Jun-98 10.0173#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Growth and Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.205083 0.07225 0.06
RESULTING VALUE 30-Jun-98 10.2050#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE U.S. Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 11.191065 0.06589 0.06
RESULTING VALUE 30-Jun-98 11.1910#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE Large Cap Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 11.191068 0.06589 0.06
RESULTING VALUE 30-Jun-98 11.1910#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE Small Cap Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.455572 0.07052 0.06
RESULTING VALUE 30-Jun-98 10.4555#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Capital Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.256470 0.07189 0.06
RESULTING VALUE 30-Jun-98 10.2564#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Mid Cap Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 9.378458 0.07862 0.06
RESULTING VALUE 30-Jun-98 9.3784#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs International Equity
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 11.874525 0.06209 0.06
RESULTING VALUE 30-Jun-98 11.8745#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Global Income
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 10.205083 0.07225 0.06
RESULTING VALUE 30-Jun-98 10.2050#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Guardian
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 14.253737 0.05173 0.06
RESULTING VALUE 30-Jun-98 14.2537#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Mid-Cap Growth
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-98 0.737333 14.642526 0.05036 0.06
RESULTING VALUE 30-Jun-98 14.6425#N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Partners
30-Jun-97
TO NO. YEARS 1.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 19.123004 52.29304
1 FEE 30-Jun-98 0.737333 22.662521 0.03254 0.06
RESULTING VALUE 30-Jun-98 22.662521 52.26050 1184.3548
1.000
FORMULA: 1000*(1+T)= 1184.3548
= 1133.354768
T = 13.34% 18.44%
R = 13.34% 18.44%
</TABLE>
<PAGE>
FIVE YEAR
5 yrs ago: 6/30/93
4 years Ago: 6/30/94
3 yrs ago: 6/30/95
2 Years ago: 6/28/96
1 Year Ago: 6/30/97
Date: 6/30/98
<TABLE>
<CAPTION>
Morgan Stanley Fixed Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
<S> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 10.280701 0.07172
5 FEE 30-Jun-98 0.737333 11.153687 0.06611 0.03
RESULTING VALUE 30-Jun-98 11.153#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley Equity Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.502536 0.06410
5 FEE 30-Jun-98 0.737333 15.083085 0.04888 0.03
RESULTING VALUE 30-Jun-98 15.083#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley Value
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.472756 0.06427
5 FEE 30-Jun-98 0.737333 12.507673 0.05895 0.03
RESULTING VALUE 30-Jun-98 12.507#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley Mid Cap Value
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.830345 0.06233
5 FEE 30-Jun-98 0.737333 15.062698 0.04895 0.03
RESULTING VALUE 30-Jun-98 15.062#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley U.S. Real Estate
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 10.324183 0.07142
5 FEE 30-Jun-98 0.737333 11.038182 0.06680 0.03
RESULTING VALUE 30-Jun-98 11.038#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley Global Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.413116 0.06460
5 FEE 30-Jun-98 0.737333 13.193205 0.05589 0.03
RESULTING VALUE 30-Jun-98 13.193#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Morgan Stanley International Magnum
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 11.601873 0.06355
5 FEE 30-Jun-98 0.737333 12.418885 0.05937 0.03
RESULTING VALUE 30-Jun-98 12.418#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Fidelity Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 22.578668 44.28959
1 FEE 30-Jun-94 0.737333 21.530036 0.03425
2 FEE 30-Jun-95 0.737333 29.089699 0.02535
3 FEE 28-Jun-96 0.737333 34.749101 0.02122
4 FEE 30-Jun-97 0.737333 40.415686 0.01824
5 FEE 30-Jun-98 0.737333 44.668598 0.01651 0.03
RESULTING VALUE 30-Jun-98 44.668598 44.17403 1973.1920
5.000
FORMULA: 1000*(1+T)= 1973.1920
= 1947.691961
T = 14.26% 14.56%
R = 94.77% 97.32%
Fidelity High Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 19.199377 52.08502
1 FEE 30-Jun-94 0.737333 20.068741 0.03674
2 FEE 30-Jun-95 0.737333 22.149929 0.03329
3 FEE 28-Jun-96 0.737333 25.245099 0.02921
4 FEE 30-Jun-97 0.737333 28.502835 0.02587
5 FEE 30-Jun-98 0.737333 28.567386 0.02581 0.03
RESULTING VALUE 30-Jun-98 28.567386 51.93411 1483.6217
5.000
FORMULA: 1000*(1+T)= 1483.6217
= 1458.121727
T = 7.83% 8.21%
R = 45.81% 48.36%
Fidelity Contrafund
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 12.406958 0.05943
3 FEE 28-Jun-96 0.737333 14.812461 0.04978
4 FEE 30-Jun-97 0.737333 18.273161 0.04035
5 FEE 30-Jun-98 0.737333 22.065898 0.03342 0.03
RESULTING VALUE 30-Jun-98 22.065#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
MFS Emerging Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 13.339774 0.05527
4 FEE 30-Jun-97 0.737333 14.825612 0.04973
5 FEE 30-Jun-98 0.737333 19.554829 0.03771 0.03
RESULTING VALUE 30-Jun-98 19.554#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
MFS Growth and Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 11.734187 0.06284
4 FEE 30-Jun-97 0.737333 15.289713 0.04822
5 FEE 30-Jun-98 0.737333 19.270151 0.03826 0.03
RESULTING VALUE 30-Jun-98 19.270#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
MFS New Discovery
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 9.856995 0.07480 0.03
RESULTING VALUE 30-Jun-98 9.856#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Dreyfus Growth and Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.857257 0.07480
2 FEE 30-Jun-95 0.737333 12.995387 0.05674
3 FEE 28-Jun-96 0.737333 17.929222 0.04112
4 FEE 30-Jun-97 0.737333 20.120438 0.03665
5 FEE 30-Jun-98 0.737333 22.751740 0.03241 0.03
RESULTING VALUE 30-Jun-98 22.751#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Dreyfus Money Market
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.058271 90.43005
1 FEE 30-Jun-94 0.737333 11.285558 0.06533
2 FEE 30-Jun-95 0.737333 11.741701 0.06280
3 FEE 28-Jun-96 0.737333 12.159103 0.06064
4 FEE 30-Jun-97 0.737333 12.613553 0.05846
5 FEE 30-Jun-98 0.737333 13.062628 0.05645 0.03
RESULTING VALUE 30-Jun-98 13.062628 90.12638 1177.2873
5.000
FORMULA: 1000*(1+T)= 1177.2873
= 1151.787343
T = 2.87% 3.32%
R = 15.18% 17.73%
Dreyfus Socially Responsible
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 10.547045 0.06991
2 FEE 30-Jun-95 0.737333 12.530765 0.05884
3 FEE 28-Jun-96 0.737333 15.643792 0.04713
4 FEE 30-Jun-97 0.737333 19.664000 0.03750
5 FEE 30-Jun-98 0.737333 24.154905 0.03053 0.03
RESULTING VALUE 30-Jun-98 24.154#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Dreyfus Small Company
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 10.380396 0.07103
4 FEE 30-Jun-97 0.737333 11.695713 0.06304
5 FEE 30-Jun-98 0.737333 13.280024 0.05552 0.03
RESULTING VALUE 30-Jun-98 13.280#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
American Century Balanced
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 11.887967 84.11867
1 FEE 30-Jun-94 0.737333 11.853785 0.06220
2 FEE 30-Jun-95 0.737333 13.590169 0.05425
3 FEE 28-Jun-96 0.737333 15.189266 0.04854
4 FEE 30-Jun-97 0.737333 17.406514 0.04236
5 FEE 30-Jun-98 0.737333 20.881128 0.03531 0.03
RESULTING VALUE 30-Jun-98 20.881128 83.87600 1751.4255
5.000
FORMULA: 1000*(1+T)= 1751.4255
= 1725.92552
T = 11.53% 11.86%
R = 72.59% 75.14%
American Century International
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.758340 0.07556
2 FEE 30-Jun-95 0.737333 9.723964 0.07583
3 FEE 28-Jun-96 0.737333 11.105406 0.06639
4 FEE 30-Jun-97 0.737333 13.875381 0.05314
5 FEE 30-Jun-98 0.737333 17.125110 0.04306 0.03
RESULTING VALUE 30-Jun-98 17.125#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Fidelity Equity Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 18.730907 53.38770
1 FEE 30-Jun-94 0.737333 19.874869 0.03710
2 FEE 30-Jun-95 0.737333 24.309912 0.03033
3 FEE 28-Jun-96 0.737333 29.230064 0.02523
4 FEE 30-Jun-97 0.737333 35.634013 0.02069
5 FEE 30-Jun-98 0.737333 40.104820 0.01839 0.03
RESULTING VALUE 30-Jun-98 40.104820 53.25597 2135.8209
5.000
FORMULA: 1000*(1+T)= 2135.8209
= 2110.320936
T = 16.11% 16.39%
R = 111.03% 113.58%
Dreyfus Stock Index
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 13.608813 73.48179
1 FEE 30-Jun-94 0.737333 13.553321 0.05440
2 FEE 30-Jun-95 0.737333 16.762126 0.04399
3 FEE 28-Jun-96 0.737333 20.757477 0.03552
4 FEE 30-Jun-97 0.737333 27.486593 0.02683
5 FEE 30-Jun-98 0.737333 35.171433 0.02096 0.03
RESULTING VALUE 30-Jun-98 35.171433 73.30009 2578.0693
5.000
FORMULA: 1000*(1+T)= 2578.0693
= 2552.569327
T = 20.61% 20.85%
R = 155.26% 157.81%
AIM Capital Appreciation
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.261001 97.45638
1 FEE 30-Jun-94 0.737333 11.125963 0.06627
2 FEE 30-Jun-95 0.737333 15.096290 0.04884
3 FEE 28-Jun-96 0.737333 17.060632 0.04322
4 FEE 30-Jun-97 0.737333 20.466213 0.03603
5 FEE 30-Jun-98 0.737333 11.764585 0.06267 0.03
RESULTING VALUE 30-Jun-98 11.764585 97.19935 1143.5100
5.000
FORMULA: 1000*(1+T)= 1143.5100
= 1118.009969
T = 2.26% 2.72%
R = 11.80% 14.35%
AIM Diversified Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.138678 98.63219
1 FEE 30-Jun-94 0.737333 9.963672 0.07400
2 FEE 30-Jun-95 0.737333 10.864874 0.06786
3 FEE 28-Jun-96 0.737333 11.717614 0.06293
4 FEE 30-Jun-97 0.737333 12.823920 0.05750
5 FEE 30-Jun-98 0.737333 14.019795 0.05259 0.03
RESULTING VALUE 30-Jun-98 14.019795 98.31731 1378.3885
5.000
FORMULA: 1000*(1+T)= 1378.3885
= 1352.888505
T = 6.23% 6.63%
R = 35.29% 37.84%
AIM Growth and Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.748361 0.07564
2 FEE 30-Jun-95 0.737333 11.822401 0.06237
3 FEE 28-Jun-96 0.737333 14.214677 0.05187
4 FEE 30-Jun-97 0.737333 17.941712 0.04110
5 FEE 30-Jun-98 0.737333 21.813719 0.03380 0.03
RESULTING VALUE 30-Jun-98 21.813#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
AIM Government Securities
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.128702 98.72933
1 FEE 30-Jun-94 0.737333 9.766786 0.07549
2 FEE 30-Jun-95 0.737333 10.617282 0.06945
3 FEE 28-Jun-96 0.737333 10.838258 0.06803
4 FEE 30-Jun-97 0.737333 11.425413 0.06453
5 FEE 30-Jun-98 0.737333 12.310448 0.05989 0.03
RESULTING VALUE 30-Jun-98 12.310448 98.39193 1211.2488
5.000
FORMULA: 1000*(1+T)= 1211.2488
= 1185.748777
T = 3.47% 3.91%
R = 18.57% 21.12%
AIM Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.438089 95.80298
1 FEE 30-Jun-94 0.737333 9.995806 0.07376
2 FEE 30-Jun-95 0.737333 12.824238 0.05750
3 FEE 28-Jun-96 0.737333 15.078168 0.04890
4 FEE 30-Jun-97 0.737333 18.741709 0.03934
5 FEE 30-Jun-98 0.737333 24.134722 0.03055 0.03
RESULTING VALUE 30-Jun-98 24.134722 95.55292 2306.1433
5.000
FORMULA: 1000*(1+T)= 2306.1433
= 2280.643259
T = 17.93% 18.19%
R = 128.06% 130.61%
AIM International Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 9.859229 101.42781
1 FEE 30-Jun-94 0.737333 11.437831 0.06446
2 FEE 30-Jun-95 0.737333 12.302112 0.05994
3 FEE 28-Jun-96 0.737333 14.846985 0.04966
4 FEE 30-Jun-97 0.737333 17.370006 0.04245
5 FEE 30-Jun-98 0.737333 19.490648 0.03783 0.03
RESULTING VALUE 30-Jun-98 19.490648 101.17347 1971.9365
5.000
FORMULA: 1000*(1+T)= 1971.9365
= 1946.436462
T = 14.25% 14.55%
R = 94.64% 97.19%
AIM Global Utilities
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.638606 0.07650
2 FEE 30-Jun-95 0.737333 10.657840 0.06918
3 FEE 28-Jun-96 0.737333 12.365973 0.05963
4 FEE 30-Jun-97 0.737333 14.277390 0.05164
5 FEE 30-Jun-98 0.737333 17.316725 0.04258 0.03
RESULTING VALUE 30-Jun-98 17.316#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
AIM Value
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 10.667607 93.74174
1 FEE 30-Jun-94 0.737333 11.134469 0.06622
2 FEE 30-Jun-95 0.737333 14.373020 0.05130
3 FEE 28-Jun-96 0.737333 16.469061 0.04477
4 FEE 30-Jun-97 0.737333 20.508380 0.03595
5 FEE 30-Jun-98 0.737333 25.555377 0.02885 0.03
RESULTING VALUE 30-Jun-98 25.555377 93.51464 2389.8019
5.000
FORMULA: 1000*(1+T)= 2389.8019
= 2364.301867
T = 18.78% 19.03%
R = 136.43% 138.98%
AIM Balanced
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.127154 0.07281 0.03
RESULTING VALUE 30-Jun-98 10.127#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
AIM High Yield
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.017375 0.07361 0.03
RESULTING VALUE 30-Jun-98 10.017#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Growth and Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.205083 0.07225 0.03
RESULTING VALUE 30-Jun-98 10.205#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE U.S. Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 11.191065 0.06589 0.03
RESULTING VALUE 30-Jun-98 11.191#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE Large Cap Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 11.191068 0.06589 0.03
RESULTING VALUE 30-Jun-98 11.191#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs CORE Small Cap Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.455572 0.07052 0.03
RESULTING VALUE 30-Jun-98 10.455#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Capital Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.256470 0.07189 0.03
RESULTING VALUE 30-Jun-98 10.256#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Mid Cap Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 9.378458 0.07862 0.03
RESULTING VALUE 30-Jun-98 9.378#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs International Equity
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 11.874525 0.06209 0.03
RESULTING VALUE 30-Jun-98 11.874#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Goldman Sachs Global Income
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 10.205083 0.07225 0.03
RESULTING VALUE 30-Jun-98 10.205#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Guardian
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 14.253737 0.05173 0.03
RESULTING VALUE 30-Jun-98 14.253#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Mid-Cap Growth
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 #N/A #N/A
2 FEE 30-Jun-95 0.737333 #N/A #N/A
3 FEE 28-Jun-96 0.737333 #N/A #N/A
4 FEE 30-Jun-97 0.737333 #N/A #N/A
5 FEE 30-Jun-98 0.737333 14.642526 0.05036 0.03
RESULTING VALUE 30-Jun-98 14.642#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Neuberger & Berman AMT Partners
30-Jun-93
TO NO. YEARS 5.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-91000.00 #N/A #N/A
1 FEE 30-Jun-94 0.737333 9.215278 0.08001
2 FEE 30-Jun-95 0.737333 11.626876 0.06342
3 FEE 28-Jun-96 0.737333 14.521588 0.05077
4 FEE 30-Jun-97 0.737333 19.123004 0.03856
5 FEE 30-Jun-98 0.737333 22.662521 0.03254 0.03
RESULTING VALUE 30-Jun-98 22.662#N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Ten or Since Inception
Morgan Stanley Fixed Income
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
<S> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 10.895544 0.06767 0.06
2 FEE 30-Jun-98 0.7373334 11.153687 0.06611 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.05
5 FEE N/A 0 N/A 0.00000 0.04
6 FEE N/A 0 N/A 0.00000 0.03
7 FEE N/A 0 N/A 0.00000 0
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.153687 99.86622 1113.8766
1.489
FORMULA: 1000*(1+T)= 1113.8766
= 1062.876564
T = 4.18%
R = 6.29%
Morgan Stanley Equity Growth
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 13.093429 0.05631 0.06
2 FEE 30-Jun-98 0.7373334 15.083085 0.04888 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 15.083085 99.89480 1506.7218
1.489
FORMULA: 1000*(1+T)= 1506.7218
= 1455.721789
T = 28.67%
R = 45.57%
Morgan Stanley Value
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 11.963903 0.06163 0.06
2 FEE 30-Jun-98 0.7373334 12.507673 0.05895 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 12.507673 99.87942 1249.2591
1.489
FORMULA: 1000*(1+T)= 1249.2591
= 1198.259121
T = 12.91%
R = 19.83%
Morgan Stanley Mid Cap Value
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 13.838806 0.05328 0.06
2 FEE 30-Jun-98 0.7373334 15.062698 0.04895 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 15.062698 99.89777 1504.7299
1.489
FORMULA: 1000*(1+T)= 1504.7299
= 1453.729924
T = 28.56%
R = 45.37%
Morgan Stanley U.S. Real Estate
04-Mar-97
TO NO. YEARS 1.322
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 04-Mar-97 1000.00 10.000000 100.00000
1 FEE 04-Mar-98 0.7373334 11.393232 0.06472 0.06
2 FEE 30-Jun-98 0.7373334 11.038182 0.06680 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.038182 99.86848 1102.3665
1.322
FORMULA: 1000*(1+T)= 1102.3665
= 1051.366511
T = 3.86%
R = 5.14%
Morgan Stanley Global Equity
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 11.860106 0.06217 0.06
2 FEE 30-Jun-98 0.7373334 13.193205 0.05589 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 13.193205 99.88194 1317.7630
1.489
FORMULA: 1000*(1+T)= 1317.7630
= 1266.762955
T = 17.21%
R = 26.68%
Morgan Stanley International Magnum
02-Jan-97
TO NO. YEARS 1.489
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.7373334 10.626106 0.06939 0.06
2 FEE 30-Jun-98 0.7373334 12.418885 0.05937 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 12.418885 99.87124 1240.2894
1.489
FORMULA: 1000*(1+T)= 1240.2894
= 1189.289434
T = 12.34%
R = 18.93%
Fidelity Growth
30-Jun-88
TO NO. YEARS 10.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-88 1000.00 11.716881 85.34695
1 FEE 30-Jun-89 0.7373334 13.470613 0.05474
2 FEE 30-Jun-90 0.7373334 15.598230 0.04727
3 FEE 30-Jun-91 0.7373334 14.999007 0.04916
4 FEE 30-Jun-92 0.7373334 17.475244 0.04219
5 FEE 30-Jun-93 0.7373334 22.578668 0.03266
6 FEE 30-Jun-94 0.7373334 21.530036 0.03425
7 FEE 30-Jun-95 0.7373334 29.089699 0.02535
8 FEE 30-Jun-96 0.7373334 34.749101 0.02122
9 FEE 30-Jun-97 0.7373334 40.415686 0.01824
10 FEE 30-Jun-98 0.7373334 44.668598 0.01651 0
RESULTING VALUE 30-Jun-98 44.668598 85.00537 3797.0706
10.000
FORMULA: 1000*(1+T)= 3797.0706
= 3797.070587
T = 14.27% 14.27%
R = 279.71% 279.71%
Fidelity High Income
30-Jun-88
TO NO. YEARS 10.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-88 1000.00 11.450462 87.33272
1 FEE 30-Jun-89 0.7373334 12.230705 0.06029
2 FEE 30-Jun-90 0.7373334 10.880470 0.06777
3 FEE 30-Jun-91 0.7373334 12.691774 0.05810
4 FEE 30-Jun-92 0.7373334 16.387911 0.04499
5 FEE 30-Jun-93 0.7373334 19.199377 0.03840
6 FEE 30-Jun-94 0.7373334 20.068741 0.03674
7 FEE 30-Jun-95 0.7373334 22.149929 0.03329
8 FEE 30-Jun-96 0.7373334 25.245099 0.02921
9 FEE 30-Jun-97 0.7373334 28.502835 0.02587
10 FEE 30-Jun-98 0.7373334 28.567386 0.02581 0
RESULTING VALUE 30-Jun-98 28.567386 86.91226 2482.8561
10.000
FORMULA: 1000*(1+T)= 2482.8561
= 2482.856134
T = 9.52% 9.52%
R = 148.29% 148.29%
Fidelity Contrafund
03-Jan-95
TO NO. YEARS 3.488
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 03-Jan-95 1000.00 10.000000 100.00000
1 FEE 03-Jan-96 0.7373334 13.682126 0.05389 0.06
2 FEE 03-Jan-97 0.7373334 16.469469 0.04477 0.06
3 FEE 03-Jan-98 0.7373334 20.150771 0.03659 0.05
4 30-Jun-98 0.7373334 22.065898 0.03342 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 22.065898 99.83133 2202.8680
3.488
FORMULA: 1000*(1+T)= 2202.8680
= 2160.368036
T = 24.71%
R = 116.04%
Fidelity Equity Income
30-Jun-88
TO NO. YEARS 10.000
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Jun-88 1000.00 11.573088 86.40736
1 FEE 30-Jun-89 0.7373334 13.452203 0.05481
2 FEE 30-Jun-90 0.7373334 12.906922 0.05713
3 FEE 30-Jun-91 0.7373334 13.163922 0.05601
4 FEE 30-Jun-92 0.7373334 15.555387 0.04740
5 FEE 30-Jun-93 0.7373334 18.730907 0.03936
6 FEE 30-Jun-94 0.7373334 19.874869 0.03710
7 FEE 30-Jun-95 0.7373334 24.309912 0.03033
8 FEE 30-Jun-96 0.7373334 29.230064 0.02523
9 FEE 30-Jun-97 0.7373334 35.634013 0.02069
10 FEE 30-Jun-98 0.7373334 40.104820 0.01839 0
RESULTING VALUE 30-Jun-98 40.104820 86.02092 3449.85331
10
FORMULA: 1000*(1+T)= 3449.853315
= 3449.853315
T = 0.131827 0.13183
R = 2.44985 2.4498533
MFS Emerging Growth
24-Jul-95
TO NO. YEARS 2.935
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 24-Jul-95 1000.00 10.000000 100.00000
1 FEE 24-Jul-96 0.7373334 11.865105 0.06214 0.06
2 FEE 24-Jul-97 0.7373334 16.013859 0.04604 0.06
3 FEE 30-Jun-98 0.7373334 19.554829 0.03771 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 19.554829 99.85411 1952.6300
2.935
FORMULA: 1000*(1+T)= 1952.6300
= 1910.129999
T = 24.67%
R = 91.01%
MFS Growth and Income
09-Oct-95
TO NO. YEARS 2.724
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 09-Oct-95 1000.00 10.000000 100.00000
1 FEE 09-Oct-96 0.7373334 12.313634 0.05988 0.06
2 FEE 09-Oct-97 0.7373334 16.435787 0.04486 0.06
3 FEE 30-Jun-98 0.7373334 19.270151 0.03826 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 19.270151 99.85700 1924.2594
2.724
FORMULA: 1000*(1+T)= 1924.2594
= 1881.759394
T = 26.12%
R = 88.18%
MFS New Discovery
29-Apr-98
TO NO. YEARS 0.170
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Apr-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 9.856995 0.07480 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 9.856995 99.92520 984.9622
0.170
FORMULA: 1000*(1+T)= 984.9622
= 933.9621666
T = -33.13%
R = -6.60%
Dreyfus Growth & Income
02-May-94
TO NO. YEARS 4.162
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.7373334 12.060377 0.06114 0.06
2 FEE 02-May-96 0.7373334 17.264427 0.04271 0.06
3 FEE 02-May-97 0.7373334 18.332664 0.04022 0.05
4 02-May-98 0.7373334 24.190266 0.03048 0.05
5 30-Jun-98 0.7373334 22.751740 0.03241 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 22.751740 99.79305 2270.4655
4.162
FORMULA: 1000*(1+T)= 2270.4655
= 2236.465457
T = 21.34%
R = 123.65%
Dreyfus Money Market
31-Aug-90
TO NO. YEARS 7.830
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Aug-90 1000.00 10.000000 100.00000
1 FEE 31-Aug-91 0.7373334 10.516311 0.07011 0.06
2 FEE 31-Aug-92 0.7373334 10.869613 0.06783 0.06
3 FEE 31-Aug-93 0.7373334 11.092074 0.06647 0.05
4 31-Aug-94 0.7373334 11.346401 0.06498 0.05
5 31-Aug-95 0.7373334 11.823286 0.06236 0.04
6 31-Aug-96 0.7373334 12.266565 0.06011 0.03
7 31-Aug-97 0.7373334 12.691672 0.05810 0
8 30-Jun-98 0.7373334 13.062628 0.05645 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 13.062628 99.49358 1299.6476
7.830
FORMULA: 1000*(1+T)= 1299.6476
= 1299.647632
T = 3.40%
R = 29.96%
Dreyfus Socially Responsible
07-Oct-93
TO NO. YEARS 4.728
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 07-Oct-93 1000.00 10.000000 100.00000
1 FEE 07-Oct-94 0.7373334 10.732537 0.06870 0.06
2 FEE 07-Oct-95 0.7373334 13.795553 0.05345 0.06
3 FEE 07-Oct-96 0.7373334 16.272507 0.04531 0.05
4 07-Oct-97 0.7373334 22.475020 0.03281 0.05
5 30-Jun-98 0.7373334 24.154905 0.03053 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 24.154905 99.76921 2409.9158
4.728
FORMULA: 1000*(1+T)= 2409.9158
= 2375.915752
T = 20.08%
R = 137.59%
Dreyfus Small Company
30-Apr-96
TO NO. YEARS 2.166
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-96 1000.00 10.000000 100.00000
1 FEE 30-Apr-97 0.7373334 10.395956 0.07093 0.06
2 FEE 30-Apr-98 0.7373334 13.935216 0.05291 0.06
3 FEE 30-Jun-98 0.7373334 13.280024 0.05552 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 13.280024 99.82064 1325.6205
2.166
FORMULA: 1000*(1+T)= 1325.6205
= 1283.120514
T = 12.20%
R = 28.31%
Dreyfus Stock Index
29-Sep-89
TO NO. YEARS 8.750
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-89 1000.00 10.000000 100.00000
1 FEE 29-Sep-90 0.7373334 8.943933 0.08244 0.06
2 FEE 29-Sep-91 0.7373334 11.719111 0.06292 0.06
3 FEE 29-Sep-92 0.7373334 12.425259 0.05934 0.05
4 29-Sep-93 0.7373334 14.015448 0.05261 0.05
5 29-Sep-94 0.7373334 14.450151 0.05103 0.04
6 29-Sep-95 0.7373334 18.016587 0.04093 0.03
7 29-Sep-96 0.7373334 20.193453 0.03651 0
8 29-Sep-97 0.7373334 28.818974 0.02558 0
9 30-Jun-98 0.7373334 35.171433 0.02096 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 35.171433 99.56768 3501.9380
8.750
FORMULA: 1000*(1+T)= 3501.9380
= 3501.937968
T = 15.40%
R = 250.19%
American Century Balanced
01-May-91
TO NO. YEARS 7.165
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-91 1000.00 10.000000 100.00000
1 FEE 01-May-92 0.7373334 11.270769 0.06542 0.06
2 FEE 01-May-93 0.7373334 11.398123 0.06469 0.06
3 FEE 01-May-94 0.7373334 12.187185 0.06050 0.05
4 01-May-95 0.7373334 12.803399 0.05759 0.05
5 01-May-96 0.7373334 14.854306 0.04964 0.04
6 01-May-97 0.7373334 16.117570 0.04575 0.03
7 01-May-98 0.7373334 19.937643 0.03698 0
8 30-Jun-98 0.7373334 20.881128 0.03531 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 20.881128 99.58412 2079.4288
7.165
FORMULA: 1000*(1+T)= 2079.4288
= 2079.428831
T = 10.76%
R = 107.94%
American Century International
02-May-94
TO NO. YEARS 4.162
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.7373334 9.587692 0.07690 0.06
2 FEE 02-May-96 0.7373334 11.013762 0.06695 0.06
3 FEE 02-May-97 0.7373334 12.647432 0.05830 0.05
4 02-May-98 0.7373334 16.608649 0.04439 0.05
5 30-Jun-98 0.7373334 17.125110 0.04306 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 17.125110 99.71040 1707.5516
4.162
FORMULA: 1000*(1+T)= 1707.5516
= 1673.551568
T = 13.17%
R = 67.36%
AIM Capital Appreciation
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 10.816419 0.06817 0.06
2 FEE 05-May-95 0.7373334 14.896581 0.04950 0.06
3 FEE 05-May-96 0.7373334 15.857636 0.04650 0.05
4 05-May-97 0.7373334 20.057862 0.03676 0.05
5 05-May-98 0.7373334 19.634612 0.03755 0.04
6 30-Jun-98 0.7373334 11.764585 0.06267 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.764585 99.69885 1172.9156
5.153
FORMULA: 1000*(1+T)= 1172.9156
= 1147.415608
T = 2.70%
R = 14.74%
AIM Diversified Income
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 9.985164 0.07384 0.06
2 FEE 05-May-95 0.7373334 10.678761 0.06905 0.06
3 FEE 05-May-96 0.7373334 11.420170 0.06456 0.05
4 05-May-97 0.7373334 12.536274 0.05882 0.05
5 05-May-98 0.7373334 13.965659 0.05280 0.04
6 30-Jun-98 0.7373334 14.019795 0.05259 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 14.019795 99.62834 1396.7689
5.153
FORMULA: 1000*(1+T)= 1396.7689
= 1371.268928
T = 6.32%
R = 37.13%
AIM Growth and Income
02-May-94
TO NO. YEARS 4.162
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.7373334 11.048667 0.06674 0.06
2 FEE 02-May-96 0.7373334 13.793127 0.05346 0.06
3 FEE 02-May-97 0.7373334 16.392388 0.04498 0.05
4 02-May-98 0.7373334 21.538893 0.03423 0.05
5 30-Jun-98 0.7373334 21.813719 0.03380 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 21.813719 99.76679 2176.2848
4.162
FORMULA: 1000*(1+T)= 2176.2848
= 2142.284812
T = 20.09%
R = 114.23%
AIM Government Securities
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 9.803487 0.07521 0.06
2 FEE 05-May-95 0.7373334 10.373874 0.07108 0.06
3 FEE 05-May-96 0.7373334 10.676163 0.06906 0.05
4 05-May-97 0.7373334 11.279913 0.06537 0.05
5 05-May-98 0.7373334 12.124409 0.06081 0.04
6 30-Jun-98 0.7373334 12.310448 0.05989 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 12.310448 99.59857 1226.1031
5.153
FORMULA: 1000*(1+T)= 1226.1031
= 1200.603058
T = 3.61%
R = 20.06%
AIM Growth
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 10.510798 0.07015 0.06
2 FEE 05-May-95 0.7373334 11.754121 0.06273 0.06
3 FEE 05-May-96 0.7373334 14.848782 0.04966 0.05
4 05-May-97 0.7373334 17.490322 0.04216 0.05
5 05-May-98 0.7373334 23.559601 0.03130 0.04
6 30-Jun-98 0.7373334 24.134722 0.03055 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 24.134722 99.71346 2406.5566
5.153
FORMULA: 1000*(1+T)= 2406.5566
= 2381.056639
T = 18.34%
R = 138.11%
AIM International Equity
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 11.600021 0.06356 0.06
2 FEE 05-May-95 0.7373334 11.996372 0.06146 0.06
3 FEE 05-May-96 0.7373334 14.377038 0.05129 0.05
4 05-May-97 0.7373334 15.882101 0.04643 0.05
5 05-May-98 0.7373334 19.454911 0.03790 0.04
6 30-Jun-98 0.7373334 19.490648 0.03783 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 19.490648 99.70153 1943.2475
5.153
FORMULA: 1000*(1+T)= 1943.2475
= 1917.747489
T = 13.47%
R = 91.77%
AIM Global Utilities
02-May-94
TO NO. YEARS 4.162
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.7373334 10.150415 0.07264 0.06
2 FEE 02-May-96 0.7373334 11.939873 0.06175 0.06
3 FEE 02-May-97 0.7373334 13.423250 0.05493 0.05
4 02-May-98 0.7373334 17.470254 0.04221 0.05
5 30-Jun-98 0.7373334 17.316725 0.04258 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 17.316725 99.72589 1726.9258
4.162
FORMULA: 1000*(1+T)= 1726.9258
= 1692.925838
T = 13.49%
R = 69.29%
AIM Value
05-May-93
TO NO. YEARS 5.153
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 10.000000 100.00000
1 FEE 05-May-94 0.7373334 11.622430 0.06344 0.06
2 FEE 05-May-95 0.7373334 13.145623 0.05609 0.06
3 FEE 05-May-96 0.7373334 15.844229 0.04654 0.05
4 05-May-97 0.7373334 19.071223 0.03866 0.05
5 05-May-98 0.7373334 24.539942 0.03005 0.04
6 30-Jun-98 0.7373334 25.555377 0.02885 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 25.555377 99.73637 2548.8006
5.153
FORMULA: 1000*(1+T)= 2548.8006
= 2523.300604
T = 19.68%
R = 152.33%
AIM Balanced
01-May-98
TO NO. YEARS 0.164
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.127154 0.07281 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.127154 99.92719 1011.9781
0.164
FORMULA: 1000*(1+T)= 1011.9781
= 960.9780666
T = -21.52%
R = -3.90%
AIM High Yield
01-May-98
TO NO. YEARS 0.164
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.017375 0.07361 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.017375 99.92639 1001.0002
0.164
FORMULA: 1000*(1+T)= 1001.0002
= 950.0001666
T = -26.82%
R = -5.00%
Goldman Sachs Growth and Income
12-Jan-98
TO NO. YEARS 0.463
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 12-Jan-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.205083 0.07225 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.205083 99.92775 1019.7710
0.463
FORMULA: 1000*(1+T)= 1019.7710
= 968.7709666
T = -6.63%
R = -3.12%
Goldman Sachs CORE U.S. Equity
13-Feb-98
TO NO. YEARS 0.375
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 13-Feb-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 11.191065 0.06589 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.191065 99.93411 1118.3692
0.375
FORMULA: 1000*(1+T)= 1118.3692
= 1067.369167
T = 18.98%
R = 6.74%
Goldman Sachs CORE Large Cap Growth
13-Feb-98
TO NO. YEARS 0.375
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 13-Feb-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 11.191068 0.06589 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.191068 99.93411 1118.3695
0.375
FORMULA: 1000*(1+T)= 1118.3695
= 1067.369467
T = 18.98%
R = 6.74%
Goldman Sachs CORE Small Cap Equity
13-Feb-98
TO NO. YEARS 0.375
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 13-Feb-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.455572 0.07052 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.455572 99.92948 1044.8199
0.375
FORMULA: 1000*(1+T)= 1044.8199
= 993.8198666
T = -1.64%
R = -0.62%
Goldman Sachs Capital Growth
30-Apr-98
TO NO. YEARS 0.167
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.256470 0.07189 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.256470 99.92811 1024.9097
0.167
FORMULA: 1000*(1+T)= 1024.9097
= 973.9096666
T = -14.64%
R = -2.61%
Goldman Sachs Mid Cap Equity
30-Apr-98
TO NO. YEARS 0.167
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 9.378458 0.07862 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 9.378458 99.92138 937.1085
0.167
FORMULA: 1000*(1+T)= 937.1085
= 886.1084666
T = -51.52%
R = -11.39%
Goldman Sachs International Equity
12-Jan-98
TO NO. YEARS 0.463
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 12-Jan-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 11.874525 0.06209 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 11.874525 99.93791 1186.7152
0.463
FORMULA: 1000*(1+T)= 1186.7152
= 1135.715167
T = 31.66%
R = 13.57%
Goldman Sachs Global Income
12-Jan-98
TO NO. YEARS 0.463
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 12-Jan-98 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 10.205083 0.07225 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 10.205083 99.92775 1019.7710
0.463
FORMULA: 1000*(1+T)= 1019.7710
= 968.7709666
T = -6.63%
R = -3.12%
Neuberger & Berman AMT Guardian
03-Nov-97
TO NO. YEARS 0.654
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 03-Nov-97 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 14.253737 0.05173 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 14.253737 99.94827 1424.6364
0.654
FORMULA: 1000*(1+T)= 1424.6364
= 1373.636367
T = 62.44%
R = 37.36%
Neuberger & Berman AMT Mid-Cap Growth
03-Nov-97
TO NO. YEARS 0.654
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 03-Nov-97 1000.00 10.000000 100.00000
1 FEE 30-Jun-98 0.7373334 14.642526 0.05036 0.06
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 14.642526 99.94964 1463.5153
0.654
FORMULA: 1000*(1+T)= 1463.5153
= 1412.515267
T = 69.52%
R = 41.25%
Neuberger & Berman AMT Partners
22-Mar-94
TO NO. YEARS 4.274
30-Jun-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 22-Mar-94 1000.00 10.000000 100.00000
1 FEE 22-Mar-95 0.7373334 10.298689 0.07159 0.06
2 FEE 22-Mar-96 0.7373334 14.085371 0.05235 0.06
3 FEE 22-Mar-97 0.7373334 17.241133 0.04277 0.05
4 22-Mar-98 0.7373334 23.884122 0.03087 0.05
5 30-Jun-98 0.7373334 22.662521 0.03254 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Jun-98 22.662521 99.76989 2261.0371
4.274
FORMULA: 1000*(1+T)= 2261.0371
= 2227.037115
T = 20.60%
R = 122.70%
</TABLE>
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