AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JANUARY __, 2000
FILE NOS. 333-00999
811-07541
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NOS. 7 /X/
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940
AMENDMENT NO. 9 /X/
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
(Exact Name of Registrant)
GLENBROOK LIFE AND ANNUITY COMPANY
(Name of Depositor)
3100 SANDERS ROAD
NORTHBROOK, ILLINOIS 60062
847/402-2400
(Address and Telephone number of Depositor's Principal Offices)
MICHAEL J. VELOTTA
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
GLENBROOK LIFE AND ANNUITY COMPANY
3100 SANDERS ROAD
NORTHBROOK, ILLINOIS 60062
847/402-2400
(Name, Complete Address and Telephone Number of Agent for Service)
COPIES TO:
RICHARD T. CHOI, ESQUIRE TERRY R. YOUNG, ESQUIRE
FREEDMAN, LEVY, KROLL & SIMONDS ALLSTATE LIFE FINANCIAL SERVICES, INC.
1050 CONNECTICUT AVENUE, N.W. 3100 SANDERS ROAD
SUITE 825 NORTHBROOK, IL 60062
WASHINGTON, D.C. 20036-5366
Approximate date of proposed public offering: Continuous
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE
(CHECK APPROPRIATE BOX)
/X/ immediately upon filing pursuant to paragraph (b) of Rule 485
/ / on (date)pursuant to paragraph (b) of Rule 485
/ / 60 days after filing pursuant to paragraph (a)(1) of Rule 485
/ / on (date) pursuant to paragraph (a)(i) 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 No. 7 solely for the purpose
of reflecting changes in the variable sub-accounts that will be available under
the Glenbrook Enhanced Provider Variable Annuity contract described in the
registration statement, when offered by SunTrust Annuities, Inc. Registrant does
not intend for this Post-effective Amendment No. 7 to amend or delete, any other
part of this registration statement except as specifically noted herein.
<PAGE>
Glenbrook Life and Annuity Company
Glenbrook Life Multi-Manager Variable Account
Supplement, dated January 21, 2000 to
Glenbrook Provider Variable Annuity Prospectus
dated May 1, 1999
This supplement amends certain disclosure contained in the above-referenced
prospectus for the Glenbrook Provider Variable Annuity Contract (the "Contract")
offered by SunTrust Annuities, Inc. ("SunTrust Annuities") and sold under the
direction of SunTrust Securities, Inc., a registered broker-dealer ("SunTrust
Securities"). SunTrust Annuities and SunTrust Securities are affiliates of
SunTrust Banks, Inc. This supplement supercedes any prior supplement to the
prospectus. Please keep this supplement for future reference together with your
prospectus.
Cover page: Replace the second paragraph and the first sentence of the third
paragraph with the following:
The Contract currently offers 35 ("investment alternatives"). The investment
alternatives include 3 fixed account options ("Fixed Account Options") and
32 variable sub-accounts ("Variable Sub-Accounts") of the Glenbrook Life
Multi-Manager Variable Account ("Variable Account"). Each Variable
Sub-Account invests exclusively in shares of one of the following portfolios
("Portfolios") of the following mutual funds ("Funds"):
<TABLE>
<CAPTION>
AIM Variable Insurance Funds, Inc.: Oppenheimer Variable Account Funds:
---------------------------------- ----------------------------------
<S> <C>
AIM V.I. Balanced Fund Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Capital Appreciation Fund/VA
AIM V.I. Growth Fund Oppenheimer Global Securities Fund/VA
AIM V.I. Growth and Income Fund Oppenheimer Main Street Growth and Income Fund/VA
AIM V.I. High Yield Fund Oppenheimer Multiple Strategies Fund/VA
AIM V.I. Value Fund Oppenheimer Strategic Bond Fund/VA
Federated Insurance Series STI Classic Variable Trust:
--------------------------- ---------------------------
Federated Prime Money Fund II STI Capital Appreciation Fund
STI Growth and Income Fund
Fidelity Variable Insurance Products Fund (VIP): STI International Equity
-------------------------------------------------- STI Investment Grade Bond Fund
Fund Fidelity VIP Equity-Income Portfolio - Initial Class STI Mid-Cap Equity Fund
Fidelity VIP Growth Portfolio - Initial Class STI Quality Growth Stock Fund
Fidelity VIP High Income Portfolio - Initial Class STI Small Cap Equity Fund
Fidelity VIP Overseas Portfolio - Initial Class STI Value Income Stock Fund
Fidelity Variable Insurance Products Fund II (VIPII): Templeton Variable Products Series Fund:
---------------------------------------------------- ----------------------------------------
Fidelity VIP II Contrafund(R)Portfolio - Initial Class Templeton Bond Fund - Class 2
Fidelity VIP II Index 500 Portfolio - Initial Class Templeton Stock Fund - Class 2
MFS(R) Variable Insurance Trust SM
----------------------------------
MFS Emerging Growth Series
MFS Growth with Income Series
MFS Research Series
</TABLE>
Delete all references in the prospectus to any Portfolio not listed above, to
any corresponding Variable Sub-Account, and to the following investment
advisers: American Century Investment Management, Inc., The Dreyfus Corporation,
Goldman Sachs Asset Management, Goldman Sachs Asset Management International,
Morgan Stanley Dean Witter Investment Management, Inc., and Neuberger Berman
Management Inc.
Page 4: Add "Federated Investment Management Company," "OppenheimerFunds, Inc.,"
"Templeton Investment Counsel, Inc.," and Trusco Capital Management, Inc. to the
list of investment advisers under the heading "Investment Alternatives."
Change all references throughout the prospectus to the availability of "44"
Variable Sub-Accounts to "32" Variable Sub-Accounts, and "47" investment
alternatives to "35" investment alternatives.
Page 8: Insert the following to the chart describing Portfolio Annual Expenses:
<TABLE>
<CAPTION>
Total Annual
Management Rule 12b-1 Other Portfolio
Portfolio Fee Fees Expenses Expenses
--------- -------- ------ -------- --------------
<S> <C> <C> <C> <C>
Federated Prime Money Fund II 0.49 - - - 0.31 0.80%
Fidelity VIP Overseas Portfolio - Initial Class 0.74 - - - 0.15 0.89%
Fidelity VIP II Index 500 Portfolio - Initial Class 0.24 - - - 0.04 0.28%
MFS Research Series(4) 0.75 - - - 0.11 0.86%
Oppenheimer Aggressive Growth Fund/VA 0.69 - - - 0.02 0.71%
Oppenheimer Capital Appreciation Fund/VA 0.72 - - - 0.03 0.75%
Oppenheimer Global Securities Fund/VA 0.68 - - - 0.06 0.74%
Oppenheimer Main Street Growth and Income Fund/VA 0.74 - - - 0.05 0.79%
Oppenheimer Multiple Strategies Fund/VA 0.72 - - - 0.04 0.76%
Oppenheimer Strategic Bond Fund/VA 0.74 - - - 0.06 0.80%
STI Growth and Income Fund(6) 0.90 - - - 0.30 1.20%
STI International Equity Fund(1) 0.78 - - - 0.82 1.60%
STI Investment Grade Bond Fund(1) 0.15 - - - 0.60 0.75%
STI Mid-Cap Equity Fund(1) 0.77 - - - 0.38 1.15%
STI Quality Growth Stock Fund(6) 1.00 - - - 0.30 1.30%
STI Small Cap Equity Fund(1) 0.45 - - - 0.75 1.20%
Templeton Bond Fund - Class 2(5) 0.50 0.15 0.23 0.88%
Templeton Stock Fund - Class 2(5) 0.70 0.25 0.19 1.14%
</TABLE>
Page 9: Insert the following after the first sentence of footnote (1) of the
chart describing Portfolio Annual Expenses:
<TABLE>
<CAPTION>
Total Annual
Management Rule 12b-1 Other Portfolio
Portfolio Fee Fees Expenses Expenses
--------- --- ---- -------- --------
<S> <C> <C> <C> <C>
Federated Prime Money Fund II 0.50 - - - 0.31 0.81%
Fidelity VIP Overseas Portfolio - Initial Class 0.74 - - - 0.17 0.91%
Fidelity VIP II Index 500 Portfolio- Initial Class 0.24 - - - 0.11 0.35%
STI International Equity Fund 1.25 - - - 0.82 2.07%
STI Investment Grade Bond Fund 0.74 - - - 0.60 1.34%
STI Mid-Cap Equity Fund 1.15 - - - 0.38 1.53%
STI Small Cap Equity Fund 1.15 - - - 0.75 1.90%
</TABLE>
Page 9: Add the following to footnote (3) of the chart describing Portfolio
Annual Expenses:
Absent reimbursements by MFS, "Other Expenses" for the Portfolio, expressed
as a percentage of average net assets, would have been 4.32%.
Page 9: Delete footnote (4) to the chart describing Portfolio Annual Expenses
and add the following footnotes:
(4) The Portfolio has an expense offset arrangement and directed brokerage
arrangements that have the effect of reducing the Portfolio's expenses. Expenses
do not take into account these expense reductions, and are therefore higher than
the actual expenses of the Portfolio.
(5) Class 2 of the Templeton Bond Fund has a distribution plan or "Rule 12b-1
plan" as described in the Fund prospectus. Because no Class 2 shares of
Templeton Bond Fund were issued as of December 31, 1998, figures (other than
"12b-1 Fees") are based on the expenses of the Fund's Class 1 shares for the
fiscal year ended December 31, 1998, plus Class 2's maximum annual Rule 12b-1
fee of 0.15%. See the Templeton Variable Products Series Fund prospectus for
more information about the Rule 12b-1 fees payable under the Fund's distribution
plan.
(6) As of December 31, 1999, the Portfolio had not commenced operations. "Other
Expenses" are based on estimated amounts for the current year.
<PAGE>
<TABLE>
<CAPTION>
Page 10: Insert the following to Example 1:
Variable Sub-Account 1 Year 3 Years 5 Years 10 Years
- -------------------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
Federated Prime Money Fund II $78 $126 $168 $302
Fidelity VIP Overseas $77 $123 $162 $291
Fidelity VIP II Index 500 $71 $104 $131 $227
MFS Research $77 $122 $161 $288
Oppenheimer Aggressive Growth $75 $117 $153 $272
Oppenheimer Capital Appreciation $76 $118 $155 $276
Oppenheimer Global Securities $76 $118 $155 $275
Oppenheimer Main Street Growth and Income $76 $120 $157 $280
Oppenheimer Multiple Strategies $76 $119 $156 $277
Oppenheimer Strategic Bond $76 $120 $158 $282
STI Growth and Income $80 $132 $178 $321
STI International Equity $84 $144 $198 $360
STI Investment Grade Bond $76 $118 $155 $276
STI Mid-Cap Equity $80 $131 $176 $317
STI Quality Growth Stock $81 $135 $183 $331
STI Small Cap Equity $80 $132 $178 $321
Templeton Bond $77 $122 $162 $290
Templeton Stock $80 $130 $175 $316
</TABLE>
<TABLE>
<CAPTION>
Page 11: Insert the following to Example 2:
Variable Sub-Account 1 Year 3 Years 5 Years 10 Years
- -------------------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
Federated Prime Money Fund II $27 $84 $143 $302
Fidelity VIP Overseas $26 $80 $137 $291
Fidelity VIP II Index 500 $20 $61 $105 $227
MFS Research $26 $79 $135 $288
Oppenheimer Aggressive Growth $24 $75 $128 $272
Oppenheimer Capital Appreciation $25 $76 $130 $276
Oppenheimer Global Securities $25 $76 $129 $275
Oppenheimer Main Street Growth and Income $25 $77 $132 $280
Oppenheimer Multiple Strategies $25 $76 $130 $277
Oppenheimer Strategic Bond $25 $78 $132 $282
STI Growth and Income $29 $90 $153 $321
STI International Equity $33 $102 $173 $360
STI Investment Grade Bond $25 $76 $130 $276
STI Mid-Cap Equity $29 $88 $150 $317
STI Quality Growth Stock $30 $93 $158 $331
STI Small Cap Equity $29 $90 $153 $321
Templeton Bond $26 $80 $136 $290
Templeton Stock $29 $88 $150 $316
</TABLE>
Page 12: Replace the last two sentences of the second paragraph under Financial
Information with the following:
The financial statements of Glenbrook and the Variable Account, including
unaudited financial statements for the period ended September 30, 1999,
appear in the Statement of Additional Information.
Page 16: Insert the following to the table describing the investment objective
and investment adviser of each Portfolio:
<TABLE>
<CAPTION>
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
<S> <C> <C>
Portfolio: Each Portfolio Seeks: Investment Adviser*
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Federated Insurance Series
- -----------------------------------------------------------------------------------------------------------------------------------
Federated Prime Money Fund II Current income consistent with the Federated Investment Management
stability of principal and liquidity Company
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Fund (VIP) *
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio - Initial Class Long-term growth of capital Fidelity Management & Research
Company
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Fund II (VIPII) *
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Index 500 Portfolio - Initial Class Investment results that correspond to the Fidelity Management & Research
total return of common stocks publicly Company
traded in the United States, as
represented by the S&P 500
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
MFS(R) Variable Insurance Trust SM
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
MFS Research Series Long-term growth of capital and future MFS Investment Management(R)
income
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
- -----------------------------------------------------------------------------------------------------------------------------------
OppenheimerFunds, Inc.
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Oppenheimer Aggressive Growth Fund/VA Capital appreciation
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Oppenheimer Capital Appreciation Fund/VA Capital appreciation
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Oppenheimer Global Securities Fund/VA Long-term capital appreciation
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Oppenheimer Main Street Growth and Income Fund/VA High total return, which includes
growth in the value of its shares
as well as current income, from
equity and debt securities
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Oppenheimer Multiple Strategies Fund/VA A high total investment return which
includes current income and capital
appreciation in the value of its
shares.
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Oppenheimer Strategic Bond Fund/VA High level of current income
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
STI Growth and Income Fund Long-term capital appreciation with the Trusco Capital Management, Inc.
secondary goal of current income
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
STI International Equity Fund Long-term capital appreciation STI Capital Management, N.A.
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
STI Investment Grade Bond Fund High total return through current income STI Capital Management, N.A.
and capital appreciation, while
preserving the principal amount invested
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
STI Mid-Cap Equity Fund Capital appreciation STI Capital Management, N.A.
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
STI Quality Growth Stock Fund Long-term capital appreciation with Trusco Capital Management, Inc.
nominal dividend income
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
STI Small Cap Equity Fund Capital appreciation with the secondary STI Capital Management, N.A.
goal of current income
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Templeton Variable Products Series Fund
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Templeton Bond Fund - Class 2 High current income Templeton Investment Counsel,
Inc.
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Templeton Stock Fund - Class 2 Long-term capital growth Templeton Investment Counsel,
Inc.
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
</TABLE>
<PAGE>
* The following entities serve as sub-advisers to the Portfolios indicated
below:
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------------------------
<S> <C>
Portfolio Sub-Adviser(s)
- ----------------------------------------------------------- --------------------------------------------------------------------
- ----------------------------------------------------------- --------------------------------------------------------------------
Fidelity VIP Overseas Portfolio - Initial Class Fidelity Management & Research (U.K.) Inc.; Fidelity Management &
Research Far East Inc.; Fidelity International Investment
Advisors; and Fidelity International Investment Advisors (UK)
- ----------------------------------------------------------- --------------------------------------------------------------------
- ----------------------------------------------------------- --------------------------------------------------------------------
Fidelity VIP II Index 500 Portfolio - Initial Class Bankers Trust Company
- ----------------------------------------------------------- --------------------------------------------------------------------
</TABLE>
Page 29: Replace the first sentence of the third paragraph under the sub-heading
THE VARIABLE ACCOUNT with the following:
The Variable Account consists of 66 Variable Sub-Accounts, of which 32 are
currently available for investment under the Contract.
Page A-1 (Appendix A): Add the following after the table of Accumulation Unit
Values:
As of September 30, 1999, there were no Accumulation Unit Values to report
for the following Variable Sub-Accounts, which had not commenced operations
as of that date: the Federated Prime Money Fund II, Fidelity Overseas,
Fidelity Index 500, MFS Research, Oppenheimer Aggressive Growth,
Oppenheimer Capital Appreciation, Oppenheimer Global Securities,
Oppenheimer Main Street Growth and Income, Oppenheimer Multiple Strategies,
Oppenheimer Strategic Bond, STI Growth and Income, STI International
Equity, STI Investment Grade Bond, STI Mid-Cap Equity, STI Quality Growth
Stock, STI Small Cap Equity, Templeton Bond, and Templeton Stock Variable
Sub-Accounts.
<PAGE>
Glenbrook Life and Annuity Company
Glenbrook Life Multi-Manager Variable Account
Supplement, dated January 21, 2000, to
Glenbrook Provider Variable Annuity
Statement of Additional Information
dated May 1, 1999
This supplement amends certain disclosure contained in the above-referenced
Statement of Additional Information ("SAI") for the Glenbrook Provider Variable
Annuity Contract (the "Contract") offered by SunTrust Annuities, Inc. ("SunTrust
Annuities") and sold under the direction of SunTrust Securities, Inc., a
registered broker-dealer ("SunTrust Securities"). SunTrust Annuities and
SunTrust Securities are affiliates of SunTrust Banks, Inc. This supplement
supersedes any prior supplement(s) to the Statement of Additional Information.
For convenience, we sometimes refer to the Contract as the Glenbrook Enhanced
SunTrust Provider Variable Annuity contract ("Enhanced SunTrust Provider
Contract").
With respect to the Enhanced SunTrust Provider Contracts, delete all references
in the statement of additional information to the following Portfolios and to
any corresponding Variable Sub-Account:
<TABLE>
<CAPTION>
<S> <C>
AIM V.I. Diversified Income Fund Goldman Sachs Capital Growth Fund
AIM V.I. Global Utilities Fund Goldman Sachs Mid Cap Equity Fund
AIM V.I. Government Securities Fund Goldman Sachs International Equity Fund
AIM V.I. International Equity Fund Goldman Sachs Global Income Fund
American Century VP Balanced Morgan Stanley Fixed Income
American Century VP International Morgan Stanley Equity Growth
Dreyfus Socially Responsible Growth Morgan Stanley Value
Dreyfus Stock Index Morgan Stanley Mid Cap Value
Dreyfus VIF Growth and Income Morgan Stanley U.S. Real Estate
Dreyfus VIF Money Market Morgan Stanley Global Equity
Dreyfus VIF Small Company Stock Morgan Stanley International Magnum
Goldman Sachs Growth and Income Fund MFS New Discovery
Goldman Sachs CORE U.S. Equity Fund Neuberger & Berman AMT Guardian
Goldman Sachs CORE Large Cap Growth Fund Neuberger & Berman AMT Mid-Cap Growth
Goldman Sachs CORE Small Cap Equity Fund Neuberger & Berman AMT Partners
</TABLE>
Pages 4, 10 & 15: Insert "(except as otherwise indicated)" after the date in the
first sentence of the fourth paragraph under Standardized Total Returns, after
the date in the first sentence of the third paragraph under Non-Standardized
Total Returns, and after the date in the first sentence of the second paragraph
under Adjusted Historical Total Returns.
Page 4: Append the following to the fifth paragraph under Standardized Total
Returns:
No standardized total returns are shown for the Federated Prime Money Fund
II. In addition, no standardized total returns are shown for the Fidelity
VIP II Index 500, Fidelity VIP Overseas, Oppenheimer Multiple Strategies,
STI Growth and Income, STI International Equity, STI Investment Grade Bond,
STI Mid-Cap Equity, STI Quality Growth Stock, STI Small Cap Equity, and
Templeton Bond Variable Sub-Accounts, because they commenced operations on
January 21, 2000.
Page 10: Append the following after the charts showing standardized total
returns for the Enhanced Provider Contracts:
<TABLE>
<CAPTION>
Since inception* through December 31, 1999
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Without the Enhanced
Death Benefit Rider or
the Enhanced Death and With the Enhanced Death
Income Benefit With the Enhanced Death and Income Benefit
Variable Sub-Account Combination Rider Benefit Rider Combination Rider
- -------------------- ----------------- ------------- -----------------
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
MFS Research 1.31% 1.30% 1.29%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Capital Appreciation 2.75% 2.74% 2.73%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Aggressive Growth 9.90% 9.89% 9.88%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Strategic Bond -5.02% -5.02% -5.03%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Main Street Growth and
Income -1.73% -1.74% -1.75%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Global Securities 3.78% 3.77% 3.77%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Templeton Stock -1.06% -1.07% -1.08%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
</TABLE>
* The Variable Sub-Accounts listed above commenced operations on December
17, 1999. Performance information is not annualized.
Page 11: Append the following after the first sentence of the third paragraph
under Non-Standardized Total Returns:
No non-standardized total returns are shown for the Fidelity VIP II
Index 500, Fidelity VIP Overseas, Oppenheimer Multiple Strategies, STI
Growth and Income, STI International Equity, STI Investment Grade
Bond, STI Mid-Cap Equity, STI Quality Growth Stock, STI Small Cap
Equity, and Templeton Bond Variable Sub-Accounts, because they
commenced operations on January 21, 2000.
Page 11: Append the following after the charts showing non-standardized total
returns for the Enhanced Provider Contracts:
<TABLE>
<CAPTION>
Since inception* through December 31, 1999
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Without the Enhanced
Death Benefit Rider or
the Enhanced Death and With the Enhanced Death
Income Benefit With the Enhanced Death and Income Benefit
Variable Sub-Account Combination Rider Benefit Rider Combination Rider
- -------------------- ----------------- ------------- -----------------
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
MFS Research 6.48% 6.47% 6.46%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Capital Appreciation 7.92% 7.92% 7.91%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Aggressive Growth 15.07% 15.06% 15.05%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Strategic Bond 0.16% 0.15% 0.14%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Main Street Growth and
Income 3.44% 3.43% 3.42%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Global Securities 8.96% 8.95% 3.77%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Templeton Stock 4.11% 4.11% 4.10%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
</TABLE>
* The Variable Sub-Accounts listed above commenced operations on December 17,
1999. Performance information is not annualized.
Page 16: Insert the following to the chart describing the inception dates of the
Portfolios:
Portfolio Inception Date
--------- --------------
Fidelity VIP II Index 500 8/27/92
Fidelity VIP Overseas 1/28/87
MFS Research 7/26/95
Oppenheimer Multiple Strategies 2/9/87
Oppenheimer Aggressive Growth 8/15/86
Oppenheimer Capital Appreciation 4/3/95
Oppenheimer Global Securities 11/1/90
Oppenheimer Main Street Growth and Income 7/1/95
Oppenheimer Strategic Bond 5/3/93
STI Growth and Income 12/31/99
STI International Equity 11/7/96
STI Investment Grade Bond 10/2/95
STI Mid-Cap Equity 10/2/95
STI Quality Growth Stock 12/31/99
STI Small Cap Equity 10/21/97
Templeton Bond 8/24/88
Templeton Stock 8/24/88
<PAGE>
Page 17: Insert the following after the tables describing the Adjusted
Historical Total Returns for the Enhanced Provider Contracts:
The adjusted historical returns for the following new Variable Sub-Accounts
for the periods ended December 31, 1999 are set out below. No adjusted
historical total returns are shown for the Federated Prime Money Fund II.
No adjusted historical total returns are shown for the STI Growth and
Income or STI Quality Growth Stock Funds which commenced operations on
December 31, 1999.
(Without the Enhanced Death Benefit Rider or the Enhanced Death and Income
Benefit Combination Rider)
<TABLE>
<CAPTION>
------------------------------------------------------- ---------------- ------------------ ---------------------
10 Years or Since
Inception of
Variable Sub-Account 1 Year 5 Years Portfolio if less
-------------------- ------ ------- -----------------
<S> <S> <C> <C> <C>
Fidelity Index 500 19.16% 26.67% 19.70%
Fidelity Overseas 41.04% 15.98% 10.13%
MFS Research 17.46% N/A 21.00%
Oppenheimer Capital Appreciation 34.86% 28.93% 16.23%
Oppenheimer Aggressive Growth 76.34% 27.98% 17.76%
Oppenheimer Strategic Bond -3.52% 6.56% 5.79%
Oppenheimer Main Street Growth and Income 15.14% N/A 23.95%
Oppenheimer Global Securities 51.50% 19.97% 15.40%
Oppenheimer Multiple Strategies Fund/VA 10.52% 13.09% 9.57%
STI International Equity 7.57% N/A 10.82%
STI Investment Grade Bond -2.86% N/A 4.02%
STI Mid-Cap Equity 12.53% N/A 13.36%
STI Small Cap Equity -5.87% N/A -9.74%
Templeton Bond Fund - Class 2 1.49% 6.02% 5.55%
Templeton Stock - Class 2
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
(With Enhanced Death Benefit Rider)*
------------------------------------------------------- ---------------- ------------------ ---------------------
10 Years or Since
Inception of
Variable Sub-Account 1 Year 5 Years Portfolio if less
-------------------- ------ ------- -----------------
<S> <C> <C> <C>
Fidelity Index 500 18.90% 26.40% 19.44%
Fidelity Overseas 40.74% 15.72% 9.89%
MFS Research 17.19% N/A 20.73%
Oppenheimer Capital Appreciation 34.56% 28.64% 15.98%
Oppenheimer Aggressive Growth 75.94% 27.69% 17.50%
Oppenheimer Strategic Bond -3.75% 6.32% 5.55%
Oppenheimer Main Street Growth and Income 14.88% N/A 23.67%
Oppenheimer Global Securities 51.16% 19.70% 15.15%
Oppenheimer Multiple Strategies Fund/VA 10.28% 12.84% 9.33%
STI International Equity 7.33% N/A 10.58%
STI Investment Grade Bond -3.07% N/A 3.79%
STI Mid-Cap Equity 12.28% N/A 13.11%
STI Small Cap Equity -6.08% N/A -9.94%
Templeton Bond Fund - Class 2 1.26% 5.79% 5.32%
Templeton Stock - Class 2
</TABLE>
<TABLE>
<CAPTION>
(With Enhanced Death and Income Benefit Combination Rider)*
------------------------------------------------------- ---------------- ------------------ ---------------------
10 Years or Since
Inception of
Variable Sub-Account 1 Year 5 Years Portfolio if less
-------------------- ------ ------- -----------------
<S> <C> <C> <C>
Fidelity Index 500 18.65% 26.12% 19.18%
Fidelity Overseas 40.44% 15.47% 9.65%
MFS Research 17.14% N/A 20.72%
Oppenheimer Capital Appreciation 34.51% 28.63% 15.98%
Oppenheimer Aggressive Growth 75.87% 27.68% 17.50%
Oppenheimer Strategic Bond -3.78% 6.31% 5.55%
Oppenheimer Main Street Growth and Income 14.84% N/A 23.66%
Oppenheimer Global Securities 51.10% 19.70% 15.14%
Oppenheimer Multiple Strategies 10.03% 12.59% 9.08%
STI International Equity 7.09% N/A 10.34%
STI Investment Grade Bond -3.28% N/A 3.56%
STI Mid-Cap Equity 12.03% N/A 12.86%
STI Small Cap Equity -6.28% N/A -10.14%
Templeton Bond Fund - Class 2 1.04% 5.56% 5.09%
Templeton Stock - Class 2
</TABLE>
Page 27: Replace the sentence under the heading "Experts" with the following:
The financial statements and related financial statement schedule of
Glenbrook as of December 31, 1998 and 1997 and for each of the three years
in the period ended December 31, 1998 that appear in this Statement of
Additional Information, have been audited by Deloitte & Touche LLP,
independent auditors, as stated in their reports appearing herein, and have
been so included in reliance upon the report of such firm given upon their
authority as experts in accounting and auditing.
The financial statements of the Variable Account as of December 31, 1998
and for the periods indicated in the table of contents to the financial
statements appearing in this Statement of Additional Information, have been
audited by Deloitte & Touche LLP, independent auditors, as stated in their
reports appearing herein, and have been so included in reliance upon the
report of such firm given upon their authority as experts in accounting and
auditing.
Page 28: Replace the first sentence under Financial Statements with the
following:
The financial statements of the Variable Account and Glenbrook as of and
for the periods ended December 31, 1998, and the accompanying Independent
Auditors' Report appear on the pages that follow. The financial statements
of the Variable Account and Glenbrook for the period ended September 30,
1999 are unaudited.
Financial Statements: Insert the following unaudited financial statements for
the Variable Account and Glenbrook after the audited financial statements for
the Variable Account and Glenbrook as of and for the period ended December 31,
1998 that are attached to the Glenbrook Provider Variable Annuity Statement of
Additional Information dated May 1, 1999.
<PAGE>
Glenbrook Life Multi-Manager Variable Account
Financial Statements as of September 30, 1999
(unaudited)
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENT OF NET ASSETS
September 30, 1999
- ------------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C>
NET ASSETS
Allocation to Sub-Accounts investing in the AIM Variable Insurance Funds, Inc. :
V.I. Capital Appreciation, 15,969 shares (cost $386,606) $ 428,753
V.I. Diversified Income, 20,990 shares (cost $237,048) 224,587
V.I. Government Securities, 35,425 shares (cost $390,630) 417,100
V.I. Growth, 26,191 shares (cost $619,195) 717,198
V.I. Growth and Income, 43,024 shares (cost $921,928) 1,127,175
V.I. International Equity, 3,693 shares (cost $74,909) 79,169
V.I. Global Utilities, 1,072 shares (cost $19,493) 19,746
V.I. Value, 63,527 shares (cost $1,615,669) 1,889,720
V.I. Balanced, 19,649 shares (cost $227,506) 225,833
V.I. High Yield, 1,644 shares (cost $15,349) 15,288
Allocation to Sub-Accounts investing in the American Century Variable Portfolios, Inc.:
American Century VP Balanced, 33,978 shares (cost $268,519) 245,322
American Century VP International, 11,045 shares (cost $85,259) 93,553
Allocation to Sub-Accounts investing in the Dreyfus Variable Investment Fund:
VIF Growth and Income, 20,317 shares (cost $449,686) 471,357
VIF Money Market, 108,872 shares (cost $108,872) 108,872
VIF Small Company Stock, 6,130 shares (cost $91,202) 90,340
Allocation to Sub-Account investing in the Dreyfus Socially Responsible Growth Fund,
Inc., 6,383 shares (cost $196,995) 215,171
Allocation to Sub-Account investing in the Dreyfus Stock Index Fund, 59,499 shares (cost $1,800,445) 2,006,926
Allocation to Sub-Accounts investing in the Morgan Stanley Dean Witter Variable Investment Series:
VIS Dividend Growth -
VIS European Growth -
VIS Quality Income Plus -
VIS Utilities -
Allocation to Sub-Accounts investing in the Fidelity Variable Insurance Products Fund:
VIP Growth, 13,233 shares (cost $542,363) 588,475
VIP High Income, 32,602 shares (cost $376,041) 358,411
VIP Equity-Income, 58,598 shares (cost $1,446,162) 1,457,924
Allocation to Sub-Accounts investing in the Fidelity Variable Insurance Products Fund II:
VIP II Contrafund, 22,871 shares (cost $527,234) 568,108
Allocation to Sub-Accounts investing in the MFS Variable Insurance Trust:
MFS Emerging Growth, 22,553 shares (cost $485,694) 551,882
MFS Limited Maturity, 7,183 shares (cost $76,667) 74,268
MFS Growth With Income, 7,067 shares (cost $144,548) 136,243
MFS New Discovery, 2,389 shares (cost $28,360) 27,403
</TABLE>
See notes to financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENT OF NET ASSETS (continued)
September 30, 1999
- ----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C>
NET ASSETS
Allocation to Sub-Accounts investing in the Goldman Sachs Variable Insurance Trust:
Growth and Income, 2,714 shares (cost $30,396) $ 27,493
CORE U.S. Equity, 18,935 shares (cost $237,197) 232,717
CORE Large Cap Growth, -
CORE Small Cap Equity, 19,917 shares (cost $175,453) 181,645
Capital Growth, 2,170 shares (cost $26,173) 26,045
Mid Cap Value, -
International Equity -
Global Income -
Allocation to Sub-Accounts investing in the Morgan Stanley Dean Witter Universal Funds, Inc.:
Fixed Income, 1,471 shares (cost $15,372) 15,494
Equity Growth, 6,251 shares (cost $103,762) 107,972
Value 15,718 shares (cost $185,139) 166,004
Mid Cap Value, 1,028 shares (cost $15,924) 15,989
U.S. Real Estate -
Global Equity, 191 shares (cost $2,462) 2,537
International Magnum -
Allocation to Sub-Accounts investing in the Neuberger & Berman Advisers Management Trust:
AMT Guardian, 2,545 shares (cost $39,765) 34,683
AMT Partners, 9,657 shares (cost $188,365) 174,314
AMT Mid-Cap Growth, 275 shares (cost $4,247) 4,489
Allocation to Sub-Accounts investing in the STI Classic Variable Trust:
STI Capital Appreciation Fund -
STI Value Income Stock Fund -
--------------
Total Assets 13,128,206
LIABILITIES
Payable to Glenbrook Life and Annuity Company:
Accrued contract charges 3,706
--------------
Net Assets $ 13,124,500
==============
</TABLE>
See notes to financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------
(unaudited)
AIM Variable Insurance Funds, Inc. Sub-account
--------------------------------------------------------------------
For the Nine Months Ended September 30, 1999
--------------------------------------------------------------------
V.I. V.I. V.I. V.I.
Capital Diversified Government V.I. Growth &
Appreciation Income Securities Growth Income
------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 6,867 $ 11,966 $ - $ 26,540 $ 12,017
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (3,705) (2,157) (2,398) (5,853) (10,600)
Administrative expense (273) (167) (178) (448) (803)
------------ ----------- ----------- ----------- -----------
Net investment income (loss) 2,889 9,642 (2,576) 20,239 614
------------ ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 38,741 48,286 11,055 41,879 130,033
Cost of investments sold 45,802 65,300 12,278 61,310 123,492
------------ ----------- ----------- ----------- -----------
Net realized gains (losses) (7,061) (17,014) (1,223) (19,431) 6,541
------------ ----------- ----------- ----------- -----------
Change in unrealized gains (losses) 21,695 (2,089) (352) 46,463 64,909
------------ ----------- ----------- ----------- -----------
Net gains (losses) on investments 14,634 (19,103) (1,575) 27,032 71,450
------------ ----------- ----------- ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ 17,523 $ (9,461) $ (4,151) $ 47,271 $ 72,064
============ =========== =========== =========== ===========
</TABLE>
See notes to financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------
(unaudited)
AIM Variable Insurance Funds, Inc. Sub-account
--------------------------------------------------------------------
For the Nine Months Ended September 30, 1999
--------------------------------------------------------------------
V.I. V.I. V.I.
International Global V.I. V.I. High
Equity Utilities Value Balanced Yield
----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 626 $ - $ 52,775 $ - $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (734) (97) (15,230) (1,186) (50)
Administrative expense (56) (7) (1,156) (82) (4)
----------- ------------ ------------ ----------- -----------
Net investment income (loss) (164) (104) 36,389 (1,268) (54)
----------- ------------ ------------ ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 5,271 103 194,003 10,076 52
Cost of investments sold 10,333 101 167,254 10,007 52
----------- ------------ ------------ ----------- -----------
Net realized gains (losses) (5,062) 2 26,749 69 -
----------- ------------ ------------ ----------- -----------
Change in unrealized gains (losses) 6,956 254 103,943 (1,875) (61)
----------- ------------ ------------ ----------- -----------
Net gains (losses) on investments 1,894 256 130,692 (1,806) (61)
----------- ------------ ------------ ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,730 $ 152 $ 167,081 $ (3,074) $ (115)
=========== ============ ============ =========== ===========
</TABLE>
See notes to financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------------------------------------------
(unaudited)
American Century Variable Dreyfus Variable Investment Fund
Portfolios, Inc. Sub-account Sub-account
---------------------------- ---------------------------------------
For the Nine Months Ended September 30, 1999
----------------------------------------------------------------------
American American VIF VIF VIF
Century Century Growth and Money Small Company
VP Balanced VP International Income Market Stock
------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 33,476 $ - $ 3,668 $ 5,209 $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (2,278) (830) (4,455) (1,542) (902)
Administrative expense (175) (62) (342) (116) (65)
----------- ------------ ------------ ------------ ------------
Net investment income (loss) 31,023 (892) (1,129) 3,551 (967)
----------- ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 2,169 781 38,638 87,281 10,832
Cost of investments sold 2,316 746 36,625 87,281 11,006
----------- ------------ ------------ ------------ ------------
Net realized gains (losses) (147) 35 2,013 - (174)
----------- ------------ ------------ ------------ ------------
Change in unrealized gains (losses) (28,866) 8,650 8,091 - (4,065)
----------- ------------ ------------ ------------ ------------
Net gains (losses) on investments (29,013) 8,685 10,104 - (4,239)
----------- ------------ ------------ ------------ ------------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ 2,010 $ 7,793 $ 8,975 $ 3,551 $ (5,206)
=========== ============ ============ ============ ============
</TABLE>
See notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------------------------------------------
(unaudited)
Dreyfus Socially
Responsible Dreyfus Stock Morgan Stanley Dean Witter
Growth Fund, Inc. Index Fund Variable Investment Series
Sub-account Sub-account Sub-account
--------------- ----------- --------------------------------------
For the Nine Months Ended September 30, 1999
----------------------------------------------------------------------
Dreyfus Socially VIS VIS VIS
Responsible Dreyfus Stock Dividend European Quality
Growth Fund, Inc. Index Fund Growth Growth Income Plus
--------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 4,551 $ 23,858 $ - $ - $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (1,385) (18,738) - - -
Administrative expense (106) (1,419) - - -
--------------- ----------- ----------- ----------- -----------
Net investment income (loss) 3,060 3,701 - - -
--------------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales (2,268) 199,938 - - -
Cost of investments sold 2,291 181,160 - - -
--------------- ----------- ----------- ----------- -----------
Net realized gains (losses) (4,559) 18,778 - - -
--------------- ----------- ----------- ----------- -----------
Change in unrealized gains (losses) 10,260 24,784 - - -
--------------- ----------- ----------- ----------- -----------
Net gains (losses) on investments 5,701 43,562 - - -
--------------- ----------- ----------- ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ 8,761 $ 47,263 $ - $ - $ -
=============== =========== =========== =========== ===========
</TABLE>
See notes to financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------
(unaudited)
Morgan Stanley
Dean Witter
Variable Fidelity Variable
Investment Series Fidelity Variable Insurance Insurance Products
Sub-account Products Fund Sub-account Fund II Sub-account
-------------- -------------------------------- -------------------
For the Nine Months Ended September 30, 1999
------------------------------------------------------------------------
VIP VIP
VIS VIP High Equity- VIP II
Utilities Growth Income Income Contrafund
-------------- ---------- ---------- ---------- ----------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ - $ 26,003 $ 33,365 $ 63,618 $ 12,548
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk - (3,954) (3,595) (14,039) (4,497)
Administrative expense - (308) (270) (1,066) (334)
-------------- ---------- ---------- ---------- ----------------
Net investment income (loss) - 21,741 29,500 48,513 7,717
-------------- ---------- ---------- ---------- ----------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales - 22,989 26,073 181,942 52,360
Cost of investments sold - 23,265 40,629 172,412 52,234
-------------- ---------- ---------- ---------- ----------------
Net realized gains (losses) - (276) (14,556) 9,530 126
-------------- ---------- ---------- ---------- ----------------
Change in unrealized gains (losses) - 3,272 (18,335) (35,127) (2,545)
-------------- ---------- ---------- ---------- ----------------
Net gains (losses) on investments - 2,996 (32,891) (25,597) (2,419)
-------------- ---------- ---------- ---------- ----------------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ - $ 24,737 $ (3,391) $ 22,916 $ 5,298
============== ========== ========== ========== ================
</TABLE>
See notes to financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
(unaudited)
Goldman Sachs
Variable Insurance
MFS Variable Insurance Trust Sub-account Trust Sub-account
---------------------------------------------------- ---------------
For the Nine Months Ended September 30, 1999
---------------------------------------------------------------------
MFS Emerging MFS Limited MFS Growth MFS New Growth and
Growth Maturity With Income Discovery Income
----------- ----------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ - $ 1,987 $ 189 $ - $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (3,470) (661) (462) (43) (167)
Administrative expense (254) (49) (34) (3) (12)
----------- ----------- ----------- ----------- ---------------
Net investment income (loss) (3,724) 1,277 (307) (46) (179)
----------- ----------- ----------- ----------- ---------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 15,559 (2,100) 15,071 43 8,561
Cost of investments sold 14,529 778 15,360 44 8,492
----------- ----------- ----------- ----------- ---------------
Net realized gains (losses) 1,030 (2,878) (289) (1) 69
----------- ----------- ----------- ----------- ---------------
Change in unrealized gains (losses) 43,854 1,107 (8,305) (957) (2,971)
----------- ----------- ----------- ----------- ---------------
Net gains (losses) on investments 44,884 (1,771) (8,594) (958) (2,902)
----------- ----------- ----------- ----------- ---------------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ 41,160 $ (494) $ (8,901) $ (1,004) $ (3,081)
=========== =========== =========== =========== ===============
</TABLE>
See notes to financial statements.
9
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------
(unaudited)
Goldman Sachs Variable Insurance Trust Sub-account
--------------------------------------------------------------------
For the Nine Months Ended September 30, 1999
--------------------------------------------------------------------
CORE CORE
CORE Large Cap Small Cap Capital Mid Cap
U.S. Equity Growth Equity Growth Value
----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ - $ - $ - $ - $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (1,378) - (1,105) (136) (14)
Administrative expense (93) - (74) (9) (1)
----------- ------------ ------------ ----------- -----------
Net investment income (loss) (1,471) - (1,179) (145) (15)
----------- ------------ ------------ ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 21,296 - 10,921 188 5,133
Cost of investments sold 20,759 - 10,141 160 5,036
----------- ------------ ------------ ----------- -----------
Net realized gains (losses) 537 - 780 28 97
----------- ------------ ------------ ----------- -----------
Change in unrealized gains (losses) (4,657) - 6,191 (128) (168)
----------- ------------ ------------ ----------- -----------
Net gains (losses) on investments (4,120) - 6,971 (100) (71)
----------- ------------ ------------ ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ (5,591) $ - $ 5,792 $ (245) $ (86)
=========== ============ ============ =========== ===========
</TABLE>
See notes to financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------
(unaudited)
Goldman Sachs Variable Morgan Stanley Dean Witter
Insurance Trust Sub-account Universal Funds, Inc. Sub-account
---------------------------- ------------------------------------
For the Nine Months Ended September 30, 1999
--------------------------------------------------------------------
International Global Fixed Equity
Equity Income Income Growth Value
----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ - $ - $ 2 $ 59 $ 23
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk - - (50) (498) (1,123)
Administrative expense - - (4) (33) (74)
----------- ------------ ------------ ----------- -----------
Net investment income (loss) - - (52) (472) (1,174)
----------- ------------ ------------ ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales - - 52 14,159 26,570
Cost of investments sold - - 52 13,707 26,242
----------- ------------ ------------ ----------- -----------
Net realized gains (losses) - - - 452 328
----------- ------------ ------------ ----------- -----------
Change in unrealized gains (losses) - - 122 3,930 (19,155)
----------- ------------ ------------ ----------- -----------
Net gains (losses) on investments - - 122 4,382 (18,827)
----------- ------------ ------------ ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ - $ - $ 70 $ 3,910 $ (20,001)
=========== ============ ============ =========== ===========
</TABLE>
See notes to financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------------------------
(unaudited)
Morgan Stanley Dean Witter
Universal Funds, Inc. Sub-account
------------------------------------------------------
For the Nine Months Ended September 30, 1999
------------------------------------------------------
Mid Cap U.S. Global International
Value Real Estate Equity Magnum
----------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 122 $ - $ 11 $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (59) - (29) -
Administrative expense (4) - (2) -
----------- ------------ ------------ -----------
Net investment income (loss) 59 - (20) -
----------- ------------ ------------ -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 10,563 - 2,528 -
Cost of investments sold 10,577 - 2,511 -
----------- ------------ ------------ -----------
Net realized gains (losses) (14) - 17 -
----------- ------------ ------------ -----------
Change in unrealized gains (losses) (244) - (18) -
----------- ------------ ------------ -----------
Net gains (losses) on investments (258) - (1) -
----------- ------------ ------------ -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ (199) $ - $ (21) $ -
=========== ============ ============ ===========
</TABLE>
See notes to financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------
(unaudited)
Neuberger & Berman Advisers STI Classic
Management Trust Sub-account Variable Trust Sub-account
---------------------------------------- -------------------------
For the Nine Months Ended September 30, 1999
--------------------------------------------------------------------
AMT Capital Value
AMT AMT Mid-Cap Appreciation Income
Guardian Partners Growth Fund Stock Fund
----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ - $ 431 $ - $ - $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (143) (1,185) (6) - -
Administrative expense (10) (79) (1) - -
----------- ------------ ------------ ----------- -----------
Net investment income (loss) (153) (833) (7) - -
----------- ------------ ------------ ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 451 12,571 6 - -
Cost of investments sold 465 12,684 6 - -
----------- ------------ ------------ ----------- -----------
Net realized gains (losses) (14) (113) - - -
----------- ------------ ------------ ----------- -----------
Change in unrealized gains (losses) (5,082) (14,051) 242 - -
----------- ------------ ------------ ----------- -----------
Net gains (losses) on investments (5,096) (14,164) 242 - -
----------- ------------ ------------ ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ (5,249) $ (14,997) $ 235 $ - $ -
=========== ============ ============ =========== ===========
</TABLE>
See notes to financial statements.
13
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
AIM Variable Insurance Funds, Inc. Sub-account
---------------------------------------------------------------------------------
For the Nine Months Ended September 30, 1999
---------------------------------------------------------------------------------
V.I. V.I. V.I. V.I.
Capital Diversified Government V.I. Growth &
Appreciation Income Securities Growth Income
------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 2,889 $ 9,642 $ (2,576) $ 20,239 $ 614
Net realized gains (losses) (7,061) (17,014) (1,223) (19,431) 6,541
Change in unrealized gains (losses) 21,695 (2,089) (352) 46,463 64,909
------------- -------------- -------------- ------------- --------------
Change in net assets resulting from operations 17,523 (9,461) (4,151) 47,271 72,064
------------- -------------- -------------- ------------- --------------
FROM CAPITAL TRANSACTIONS
Deposits 132,911 85,926 - 271,914 125,772
Benefit payments - - (10,033) - (12,064)
Payments on termination (720) (10,729) - (13,059) (67,439)
Contract maintenance charges (85) (60) (100) (220) (371)
Transfers among the sub-accounts
and with the Fixed Account - net 17,367 (29,433) 341,818 (13,550) 68,122
------------- -------------- -------------- ------------- --------------
Change in net assets resulting
from capital transactions 149,473 45,704 331,685 245,085 114,020
------------- -------------- -------------- ------------- --------------
INCREASE (DECREASE) IN NET ASSETS 166,996 36,243 327,534 292,356 186,084
NET ASSETS AT BEGINNING OF PERIOD 261,635 188,282 89,448 424,639 940,773
------------- -------------- -------------- ------------- --------------
NET ASSETS AT END OF PERIOD $ 428,631 $ 224,525 $ 416,982 $ 716,995 $ 1,126,857
============= ============== ============== ============= ==============
</TABLE>
See notes to financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
AIM Variable Insurance Funds, Inc. Sub-account
---------------------------------------------------------------------------------
For the Nine Months Ended September 30, 1999
---------------------------------------------------------------------------------
V.I. V.I. V.I.
International Global V.I. V.I. High
Equity Utilities Value Balanced Yield
------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ $ (164) $ (104) $ 36,389 $ (1,268) $ (54)
Net realized gains (losses) (5,062) 2 26,749 69 -
Change in unrealized gains (losses) 6,956 254 103,943 (1,875) (61)
------------- -------------- -------------- ------------- --------------
Change in net assets resulting from operations 1,730 152 167,081 (3,074) (115)
------------- -------------- -------------- ------------- --------------
FROM CAPITAL TRANSACTIONS
Deposits 3,682 - 543,466 213,262 15,425
Benefit payments - - (10,108) - -
Payments on termination (3,300) - (43,729) (300) -
Contract maintenance charges (16) (6) (587) (62) (4)
Transfers among the sub-accounts
and with the Fixed Account - net (1,808) 19,595 71,776 11,602 (23)
------------- -------------- -------------- ------------- --------------
Change in net assets resulting
from capital transactions (1,442) 19,589 560,818 224,502 15,398
------------- -------------- -------------- ------------- --------------
INCREASE (DECREASE) IN NET ASSETS 288 19,741 727,899 221,428 15,283
NET ASSETS AT BEGINNING OF PERIOD 78,858 - 1,161,286 4,341 -
------------- -------------- -------------- ------------- --------------
NET ASSETS AT END OF PERIOD $ 79,146 $ 19,741 $ 1,889,185 $ 225,769 $ 15,283
============= ============== ============== ============= ==============
</TABLE>
See notes to financial statements.
15
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
- -----------------------------------------------------------------------------------------------------------------------------------
American Century Variable
Portfolios, Inc. Sub-account Dreyfus Variable Investment Fund Sub-account
------------------------------- ----------------------------------------------
For the Nine Months Ended September 30, 1999
---------------------------------------------------------------------------------
American American VIF VIF VIF
Century Century Growth and Money Small Company
VP Balanced VP International Income Market Stock
-------------- ------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 31,023 $ (892) $ (1,129) $ 3,551 $ (967)
Net realized gains (losses) (147) 35 2,013 - (174)
Change in unrealized gains (losses) (28,866) 8,650 8,091 - (4,065)
------------- -------------- -------------- -------------- -------------
Change in net assets resulting from operations 2,010 7,793 8,975 3,551 (5,206)
------------- -------------- -------------- -------------- -------------
FROM CAPITAL TRANSACTIONS
Deposits - - 82,986 47,217 20,822
Benefit payments - - - - (3,013)
Payments on termination - - (17,335) (6,750) -
Contract maintenance charges (35) (9) (108) (18) (7)
Transfers among the sub-accounts
and with the Fixed Account - net 33,044 20,736 3,138 (80,748) 3,010
------------- -------------- -------------- -------------- -------------
Change in net assets resulting
from capital transactions 33,009 20,727 68,681 (40,299) 20,812
------------- -------------- -------------- -------------- -------------
INCREASE (DECREASE) IN NET ASSETS 35,019 28,520 77,656 (36,748) 15,606
NET ASSETS AT BEGINNING OF PERIOD 210,235 65,005 393,567 145,589 74,709
------------- -------------- -------------- -------------- -------------
NET ASSETS AT END OF PERIOD $ 245,254 $ 93,525 $ 471,223 $ 108,841 $ 90,315
============= ============== ============== ============== =============
</TABLE>
See notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
- -----------------------------------------------------------------------------------------------------------------------------------
Dreyfus Socially
Responsible Dreyfus Stock Morgan Stanley Dean Witter
Growth Fund, Inc. Index Fund Variable Investment Series
Sub-account Sub-account Sub-account
------------------- -------------- ------------------------------------------------
For the Nine Months Ended September 30, 1999
----------------------------------------------------------------------------------------
Dreyfus Socially VIS VIS VIS
Responsible Dreyfus Stock Dividend European Quality
Growth Fund, Inc. Index Fund Growth Growth Income Plus
------------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 3,060 $ 3,701 $ - $ - $ -
Net realized gains (losses) (4,559) 18,778 - - -
Change in unrealized gains (losses) 10,260 24,784 - - -
------------------- -------------- ------------- -------------- --------------
Change in net assets resulting
from operations 8,761 47,263 - - -
------------------- -------------- ------------- -------------- --------------
FROM CAPITAL TRANSACTIONS
Deposits 44,599 406,908 - - -
Benefit payments - - - - -
Payments on termination - (55,136) - - -
Contract maintenance charges (38) (719) - - -
Transfers among the sub-accounts
and with the Fixed Account - net 36,296 (13,790) - - -
------------------- -------------- ------------- -------------- --------------
Change in net assets resulting
from capital transactions 80,857 337,263 - - -
------------------- -------------- ------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS 89,618 384,526 - - -
NET ASSETS AT BEGINNING OF PERIOD 125,492 1,621,832 - - -
------------------- -------------- ------------- -------------- --------------
NET ASSETS AT END OF PERIOD $ 215,110 $ 2,006,358 $ - $ - $ -
=================== ============== ============= ============== ==============
</TABLE>
See notes to financial statements.
17
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
- -----------------------------------------------------------------------------------------------------------------------------
Morgan Stanley
Dean Witter Fidelity Variable
Variable Insurance Products
Investment Series Fidelity Variable Insurance Products Fund II
Sub-account Fund Sub-account Sub-account
----------------- ----------------------------------------------- ---------------
For the Nine Months Ended September 30, 1999
-------------------------------------------------------------------------------------
VIP VIP
VIS VIP High Equity- VIP II
Utilities Growth Income Income Contrafund
----------------- ------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ - $ 21,741 $ 29,500 $ 48,513 $ 7,717
- (276) (14,556) 9,530 126
Change in unrealized gains (losses) - 3,272 (18,335) (35,127) (2,545)
----------------- ------------- ------------- ------------- ---------------
Change in net assets resulting
from operations - 24,737 (3,391) 22,916 5,298
----------------- ------------- ------------- ------------- ---------------
FROM CAPITAL TRANSACTIONS
Deposits - 246,059 4,000 191,350 261,735
Benefit payments - - (4,021) - -
Payments on termination - (4,464) (7,109) (44,116) (3,930)
Contract maintenance charges - (230) (49) (368) (84)
Transfers among the sub-accounts
and with the Fixed Account - net - 93,686 22,801 (22,334) (311)
----------------- ------------- ------------- ------------- ---------------
Change in net assets resulting
from capital transactions - 335,051 15,622 124,532 257,410
----------------- ------------- ------------- ------------- ---------------
INCREASE (DECREASE) IN NET ASSETS - 359,788 12,231 147,448 262,708
NET ASSETS AT BEGINNING OF PERIOD - 228,522 346,079 1,310,064 305,242
----------------- ------------- ------------- ------------- ---------------
NET ASSETS AT END OF PERIOD $ - $ 588,310 $ 358,310 $ 1,457,512 $ 567,950
================= ============= ============= ============= ===============
</TABLE>
See notes to financial statements.
18
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
- ---------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs
Variable
Insurance Trust
MFS Variable Insurance Trust Sub-account Sub-account
------------------------------------------------------------------ -------------------
For the Nine Months Ended September 30, 1999
----------------------------------------------------------------------------------------
MFS Emerging MFS Limited MFS Growth MFS New Growth and
Growth Maturity With Income Discovery Income
-------------- -------------- ------------- -------------- -------------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (3,724) $ 1,277 $ (307) $ (46) $ (179)
Net realized gains (losses) 1,030 (2,878) (289) (1) 69
Change in unrealized gains (losses) 43,854 1,107 (8,305) (957) (2,971)
-------------- -------------- ------------- -------------- -------------------
Change in net assets resulting
from operations 41,160 (494) (8,901) (1,004) (3,081)
-------------- -------------- ------------- -------------- -------------------
FROM CAPITAL TRANSACTIONS
Deposits 278,660 - 140,519 18,194 26,360
Benefit payments - - - - -
Payments on termination (1,875) - (300) - -
Contract maintenance charges (169) (45) (38) (8) (6)
Transfers among the sub-accounts
and with the Fixed Account - net 68,508 20,428 4,924 10,214 53
-------------- -------------- ------------- -------------- -------------------
Change in net assets resulting
from capital transactions 345,124 20,383 145,105 28,400 26,407
-------------- -------------- ------------- -------------- -------------------
INCREASE (DECREASE) IN NET ASSETS 386,284 19,889 136,204 27,396 23,326
NET ASSETS AT BEGINNING OF PERIOD 165,443 54,358 - - 4,158
-------------- -------------- ------------- -------------- -------------------
NET ASSETS AT END OF PERIOD $ 551,727 $ 74,247 $ 136,204 $ 27,396 $ 27,484
============== ============== ============= ============== ===================
</TABLE>
See notes to financial statements.
19
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
- ----------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Variable Insurance Trust Sub-account
-----------------------------------------------------------------------------------
For the Nine Months Ended September 30, 1999
-----------------------------------------------------------------------------------
CORE CORE
CORE Large Cap Small Cap Capital Mid Cap
U.S. Equity Growth Growth Growth Growth
------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (1,471) $ - $ (1,179) $ (145) $ (15)
Net realized gains (losses) 537 - 780 28 97
Change in unrealized gains (losses) (4,657) - 6,191 (128) (168)
------------- -------------- -------------- ------------- --------------
Change in net assets resulting
from operations (5,591) - 5,792 (245) (86)
------------- -------------- -------------- ------------- --------------
FROM CAPITAL TRANSACTIONS
Deposits 236,994 - 184,989 13,428 (5,000)
Benefit payments - - - - -
Payments on termination (300) - - - -
Contract maintenance charges (64) - (51) (7) 3
Transfers among the sub-accounts
and with the Fixed Account - net (2,754) - (9,136) 12,861 (77)
------------- -------------- -------------- ------------- --------------
Change in net assets resulting
from capital transactions 233,876 - 175,802 26,282 (5,074)
------------- -------------- -------------- ------------- --------------
INCREASE (DECREASE) IN NET ASSETS 228,285 - 181,594 26,037 (5,160)
NET ASSETS AT BEGINNING OF PERIOD 4,366 - - - 5,160
------------- -------------- -------------- ------------- --------------
NET ASSETS AT END OF PERIOD $ 232,651 $ - $ 181,594 $ 26,037 $ -
============= ============== ============== ============= ==============
</TABLE>
See notes to financial statements.
20
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
- ----------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Variable Morgan Stanley Dean Witter
Insurance Trust Sub-account Universal Funds, Inc. Sub-account
------------------------------- -------------------------------------------------
For the Nine Months Ended September 30, 1999
-----------------------------------------------------------------------------------
International Global Fixed Equity
Equity Income Income Growth Value
------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ - $ - $ (52) $ (472) $ (1,174)
Net realized gains (losses) - - - 452 328
Change in unrealized gains (losses) - - 122 3,930 (19,155)
------------- -------------- -------------- ------------- --------------
Change in net assets resulting
from operations - - 70 3,910 (20,001)
------------- -------------- -------------- ------------- --------------
FROM CAPITAL TRANSACTIONS
Deposits - - 15,425 83,764 198,511
Benefit payments - - - - -
Payments on termination - - - - (300)
Contract maintenance charges - - (4) (28) (47)
Transfers among the sub-accounts
and with the Fixed Account - net - - (1) 15,859 (12,205)
------------- -------------- -------------- ------------- --------------
Change in net assets resulting
from capital transactions - - 15,420 99,595 185,959
------------- -------------- -------------- ------------- --------------
INCREASE (DECREASE) IN NET ASSETS - - 15,490 103,505 165,958
NET ASSETS AT BEGINNING OF PERIOD - - - 4,438 -
------------- -------------- -------------- ------------- --------------
NET ASSETS AT END OF PERIOD $ - $ - $ 15,490 $ 107,943 $ 165,958
============= ============== ============== ============= ==============
</TABLE>
See notes to financial statements.
21
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Dean Witter
Universal Funds, Inc. Sub-account
-----------------------------------------------------------------
For the Nine Months Ended September 30, 1999
-----------------------------------------------------------------
Mid Cap U.S. Global International
Value Real Estate Equity Magnum
------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 59 $ - $ (20) $ -
Net realized gains (losses) (14) - 17 -
Change in unrealized gains (losses) (244) - (18) -
------------- -------------- -------------- -------------
Change in net assets resulting from operations (199) - (21) -
------------- -------------- -------------- -------------
FROM CAPITAL TRANSACTIONS
Deposits 2,486 - - -
Benefit payments - - - -
Payments on termination - - - -
Contract maintenance charges (2) - 1 -
Transfers among the sub-accounts
and with the Fixed Account - net 9,231 - (2) -
------------- -------------- -------------- -------------
Change in net assets resulting
from capital transactions 11,715 - (1) -
------------- -------------- -------------- -------------
INCREASE (DECREASE) IN NET ASSETS 11,516 - (22) -
NET ASSETS AT BEGINNING OF PERIOD 4,468 - 2,558 -
------------- -------------- -------------- -------------
NET ASSETS AT END OF PERIOD $ 15,984 $ - $ 2,536 $ -
============= ============== ============== =============
</TABLE>
See notes to financial statements.
22
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------
Neuberger & Berman Advisers STI Classic
Management Trust Sub-account Variable Trust Sub-account
------------------------------------------------ --------------------------------
For the Nine Months Ended September 30, 1999
----------------------------------------------------------------------------------
AMT Capital Value
AMT AMT Mid-Cap Appreciation Income
Guardian Partners Growth Fund Stock Fund
------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (153) $ (833) $ (7) $ - $ -
Net realized gains (losses) (14) (113) - - -
Change in unrealized gains (losses) (5,082) (14,051) 242 - -
------------- -------------- -------------- -------------- --------------
Change in net assets resulting
from operations (5,249) (14,997) 235 - -
------------- -------------- -------------- -------------- --------------
FROM CAPITAL TRANSACTIONS
Deposits 40,089 200,554 4,263 - -
Benefit payments - - - - -
Payments on termination (300) - - - -
Contract maintenance charges (10) (49) (1) - -
Transfers among the sub-accounts
and with the Fixed Account - net 142 (11,243) (10) - -
------------- -------------- -------------- -------------- --------------
Change in net assets resulting
from capital transactions 39,921 189,262 4,252 - -
------------- -------------- -------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS 34,672 174,265 4,487 - -
NET ASSETS AT BEGINNING OF PERIOD - - - - -
------------- -------------- -------------- -------------- --------------
NET ASSETS AT END OF PERIOD $ 34,672 $ 174,265 $ 4,487 $ - $ -
============= ============== ============== ============== ==============
</TABLE>
See notes to financial statements.
23
<PAGE>
Glenbrook Life Multi-Manager Variable Account
Notes to Financial Statements
(unaudited)
1. Organization
Glenbrook Life Multi-Manager Variable Account (the "Account"), a unit
investment trust registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, is a Separate Account of
Glenbrook Life and Annuity Company ("Glenbrook Life"). The assets of the
Account are legally segregated from those of Glenbrook Life. Glenbrook Life
is wholly owned by Allstate Life Insurance Company, a wholly owned
subsidiary of Allstate Insurance Company, which is wholly owned by The
Allstate Corporation.
These financial statements and notes as of September 30, 1999 and for the
nine-month period ended September 30, 1999 are unaudited. The 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 changes
in net assets for the interim period. These financial statements and notes
should be read in conjunction with the Glenbrook Life Multi-Manager
Variable Account II financial statements and notes for the period ended
December 31, 1998 included in the Registration Statement on Form N-4 for
the Account. The results of operations for the interim periods should not
be considered indicative of results to be expected for the full year.
24
<PAGE>
<TABLE>
<CAPTION>
Glenbrook Life Multi-Manager Variable Account
Notes to Financial Statements
(unaudited)
2. UNITS OUTSTANDING AND ACCUMULATION UNIT VALUE
(Units in whole amounts)
Glenbrook Provider
-------------------------------------
Accumulation
Units Outstanding Unit Value
September 30, 1999 September 30, 1999
----------------- -----------------
<S> <C> <C>
Investments in AIM Variable Insurance Funds, Inc.:
V.I. Capital Appreciation 7,789 13.03
V.I. Diversified Income 13,069 9.81
V.I. Government Securities 712 10.32
V.I. Growth Fund 14,643 14.74
V.I. Growth and Income 21,888 13.90
V.I. International Equity 1,207 12.38
V.I. Global Utilities - -
V.I. Value 32,735 14.52
V.I. Balanced - -
V.I. High Yield - -
Investments in the American Century Variable Portfolios Inc.:
American Century VP Balanced 9,678 12.25
American Century VP International 371 12.93
Investments in Dreyfus Variable Investment Fund: - -
VIF Growth & Income 14,991 11.95
VIF Money Market 6,353 10.83
VIF Small Company Stock 709 9.75
Investment in The Dreyfus Socially Responsible Growth Fund, Inc. 6,935 14.80
Investment in the Dreyfus Stock Index Fund 37,306 13.34
Investments in the Morgan Stanley Dean Witter Variable Investment Series:
VIS Dividend Growth - -
VIS European Growth - -
VIS Quality Income Plus - -
VIS Utilities - -
Investment in the Fidelity Variable Insurance Products Fund:
VIP Growth 7,682 16.21
VIP High Income 6,120 10.49
VIP Equity-Income 42,061 11.48
Investment in the Fidelity Variable Insurance Products Fund II:
VIP II Contrafund 9,593 14.89
Investments in MFS Variable Insurance Trust:
MFS Emerging Growth 6,247 16.43
MFS Limited Maturity 1,053 10.77
MFS Growth with Income - -
MFS New Discovery - -
Investments in the Goldman Sachs Variable Insurance Trust:
Growth and Income - -
CORE U.S. Equity - -
CORE Large Cap Growth - -
CORE Small Cap Equity - -
Capital Growth - -
Mid Cap Value - -
International Equity - -
Global Income - -
Investments in Morgan Stanley Dean Witter Universal Funds, Inc.:
Fixed Income - -
Equity Growth - -
Value - -
Mid Cap Value - -
U.S. Real Estate - -
Global Equity - -
International Magnum - -
Investments in Neuberger & Berman Advisers Management Trust:
AMT Guardian - -
AMT Partners - -
AMT Mid Cap Growth - -
Investments in STI Classic Variable Trust:
STI Capital Appreciation - -
STI Value Income Stock - -
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
Glenbrook Life Multi-Manager Variable Account
Notes to Financial Statements
(unaudited)
2. UNITS OUTSTANDING AND ACCUMULATION UNIT VALUE
(Units in whole amounts)
Glenbrook Provider with Enhanced
Death Benefit Rider
----------------------------------------
Accumulation
Units Outstanding Unit Value
September 30, 1999 September 30, 1999
------------------ -------------------
<S> <C> <C>
Investments in AIM Variable Insurance Funds, Inc.:
V.I. Capital Appreciation 13,893 13.01
V.I. Diversified Income 7,618 9.79
V.I. Government Securities 1,584 12.00
V.I. Growth 39,760 10.31
V.I. Growth and Income 16,160 14.71
V.I. International Equity 54,162 13.88
V.I. Global Utilities 4,969 12.36
V.I. Value 67,216 14.50
V.I. Balanced - -
V.I. High Yield - -
Investments in the American Century Variable Portfolios Inc.:
American Century VP Balanced 10,367 12.23
American Century VP International 6,879 12.90
Investments in Dreyfus Variable Investment Fund: - -
VIF Growth & Income 18,568 11.92
VIF Money Market 3,704 10.81
VIF Small Company Stock 5,756 9.72
Investment in The Dreyfus Socially Responsible Growth Fund, Inc. 4,681 14.77
Investment in the Dreyfus Stock Index Fund 87,700 13.32
Investments in the Morgan Stanley Dean Witter Variable Investment Series:
VIS Dividend Growth - -
VIS European Growth - -
VIS Quality Income Plus - -
VIS Utilities - -
Investment in the Fidelity Variable Insurance Products Fund:
VIP Growth 13,202 16.17
VIP High Income 28,126 10.46
VIP Equity-Income 73,471 11.46
Investment in the Fidelity Variable Insurance Products Fund II:
VIP II Contrafund 14,768 14.86
Investments in MFS Variable Insurance Trust:
MFS Emerging Growth 12,191 16.40
MFS Limited Maturity 5,859 10.74
MFS Growth with Income - -
MFS New Discovery - -
Investments in the Goldman Sachs Variable Insurance Trust:
Growth and Income - -
CORE U.S. Equity - -
CORE Large Cap Growth - -
CORE Small Cap Equity - -
Capital Growth - -
Mid Cap Value - -
International Equity - -
Global Income - -
Investments in Morgan Stanley Dean Witter Universal Funds, Inc.:
Fixed Income - -
Equity Growth - -
Value - -
Mid Cap Value - -
U.S. Real Estate - -
Global Equity - -
International Magnum - -
Investments in Neuberger & Berman Advisers Management Trust:
AMT Guardian - -
AMT Partners - -
AMT Mid Cap Growth - -
Investments in STI Classic Variable Trust:
STI Capital Appreciation - -
STI Value Income Stock - -
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
Glenbrook Life Multi-Manager Variable Account
Notes to Financial Statements
(unaudited)
2. UNITS OUTSTANDING AND ACCUMULATION UNIT VALUE (continued)
(Units in whole amounts)
Enhanced Glenbrook Provider
-------------------------------------
Accumulation
Units Outstanding Unit Value
September 30, 1999 September 30, 1999
----------------- ----------------
<S> <C> <C>
Investments in AIM Variable Insurance Funds, Inc.:
V.I. Capital Appreciation 693 12.04
V.I. Diversified Income 721 9.91
V.I. Government Securities - -
V.I. Growth 7,558 12.95
V.I. Growth and Income 1,969 12.27
V.I. International Equity - -
V.I. Global Utilities - -
V.I. Value 10,561 12.61
V.I. Balanced - -
V.I. High Yield - -
Investments in the American Century Variable Portfolios Inc.:
American Century VP Balanced - -
American Century VP International - -
Investments in Dreyfus Variable Investment Fund: - -
VIF Growth & Income 2,681 10.92
VIF Money Market - -
VIF Small Company Stock 200 10.05
Investment in The Dreyfus Socially Responsible Growth Fund, Inc. 2,014 12.04
Investment in the Dreyfus Stock Index Fund 9,284 11.33
Investments in the Morgan Stanley Dean Witter Variable Investment Series:
VIS Dividend Growth - -
VIS European Growth - -
VIS Quality Income Plus - -
VIS Utilities - -
Investment in the Fidelity Variable Insurance Products Fund:
VIP Growth 9,846 12.36
VIP High Income - -
VIP Equity-Income 4,707 10.69
Investment in the Fidelity Variable Insurance Products Fund II:
VIP II Contrafund 2,166 12.24
Investments in MFS Variable Insurance Trust:
MFS Emerging Growth 915 13.51
MFS Limited Maturity - -
MFS Growth with Income 5,818 10.35
MFS New Discovery 158 12.77
Investments in the Goldman Sachs Variable Insurance Trust:
Growth and Income 637 9.65
CORE U.S. Equity 244 11.68
CORE Large Cap Growth - -
CORE Small Cap Equity - -
Capital Growth - -
Mid Cap Value - -
International Equity - -
Global Income - -
Investments in Morgan Stanley Dean Witter Universal Funds, Inc.:
Fixed Income - -
Equity Growth - -
Value - -
Mid Cap Value - -
U.S. Real Estate - -
Global Equity - -
International Magnum - -
Investments in Neuberger & Berman Advisers Management Trust:
AMT Guardian - -
AMT Partners - -
AMT Mid Cap Growth 296 12.45
Investments in STI Classic Variable Trust:
STI Capital Appreciation - -
STI Value Income Stock - -
</TABLE>
27
<PAGE>
<TABLE>
<CAPTION>
Glenbrook Life Multi-Manager Variable Account
Notes to Financial Statements
(unaudited)
2. UNITS OUTSTANDING AND ACCUMULATION UNIT VALUE (continued)
(Units in whole amounts)
Enhanced Glenbrook Provider
With Enhanced Death Benefit Rider
-------------------------------------
Accumulation
Units Outstanding Unit Value
September 30, 1999 September 30, 1999
---------------- -----------------
<S> <C> <C>
Investments in AIM Variable Insurance Funds, Inc.:
V.I. Capital Appreciation 672 12.01
V.I. Diversified Income - -
V.I. Government Securities - -
V.I. Growth - -
V.I. Growth and Income - -
V.I. International Equity 243 11.56
V.I. Global Utilities 65 11.27
V.I. Value 3,400 12.58
V.I. Balanced 1,814 10.96
V.I. High Yield 1,423 10.74
Investments in the American Century Variable Portfolios Inc.:
American Century VP Balanced - -
American Century VP International - -
Investments in Dreyfus Variable Investment Fund: - -
VIF Growth & Income - -
VIF Money Market - -
VIF Small Company Stock - -
Investment in The Dreyfus Socially Responsible Growth Fund, Inc. 200 12.02
Investment in the Dreyfus Stock Index Fund 5,009 11.31
Investments in the Morgan Stanley Dean Witter Variable Investment Series:
VIS Dividend Growth - -
VIS European Growth - -
VIS Quality Income Plus - -
VIS Utilities - -
Investment in the Fidelity Variable Insurance Products Fund:
VIP Growth 3,381 12.34
VIP High Income -
VIP Equity-Income 3,469 10.67
Investment in the Fidelity Variable Insurance Products Fund II:
VIP II Contrafund 844 12.22
Investments in MFS Variable Insurance Trust:
MFS Emerging Growth 2,281 13.48
MFS Limited Maturity -
MFS Growth with Income 3,227 10.33
MFS New Discovery 1,286 12.75
Investments in the Goldman Sachs Variable Insurance Trust:
Growth and Income - -
CORE U.S. Equity - -
CORE Large Cap Growth - -
CORE Small Cap Equity - -
Capital Growth - -
Mid Cap Value - -
International Equity - -
Global Income - -
Investments in Morgan Stanley Dean Witter Universal Funds, Inc.:
Fixed Income 1,566 10
Equity Growth 1,954 12
Value 903 9
Mid Cap Value - -
U.S. Real Estate - -
Global Equity - -
International Magnum - -
Investments in Neuberger & Berman Advisers Management Trust:
AMT Guardian 1,333 11
AMT Partners - -
AMT Mid Cap Growth - -
Investments in STI Classic Variable Trust:
STI Capital Appreciation - -
STI Value Income Stock - -
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
Glenbrook Life Multi-Manager Variable Account
Notes to Financial Statements
(unaudited)
2. UNITS OUTSTANDING AND ACCUMULATION UNIT VALUE (continued)
(Units in whole amounts)
Enhanced Glenbrook Provider
With Enhanced Death Benefit Rider
and Income Benefit Combination Rider
---------------------------------------
Accumulation
Units Outstanding Unit Value
September 30, 1999 September 30, 1999
----------------- ------------------
<S> <C> <C>
Investments in AIM Variable Insurance Funds, Inc.:
V.I. Capital Appreciation 10,859 11.99
V.I. Diversified Income 1,484 9.87
V.I. Government Securities - -
V.I. Growth 12,852 12.90
V.I. Growth and Income 3,850 12.22
V.I. International Equity - -
V.I. Global Utilities - -
V.I. Value 20,997 12.56
V.I. Balanced 15,569 10.94
V.I. High Yield - -
Investments in the American Century Variable Portfolios Inc.:
American Century VP Balanced - -
American Century VP International - -
Investments in Dreyfus Variable Investment Fund: - -
VIF Growth & Income 3,829 10.87
VIF Money Market - -
VIF Small Company Stock 2,544 10.01
Investment in The Dreyfus Socially Responsible Growth Fund, Inc. 1,399 11.99
Investment in the Dreyfus Stock Index Fund 15,848 11.29
Investments in the Morgan Stanley Dean Witter Variable Investment Series: - -
VIS Dividend Growth - -
VIS European Growth - -
VIS Quality Income Plus - -
VIS Utilities - -
Investment in the Fidelity Variable Insurance Products Fund:
VIP Growth 7,074 12.31
VIP High Income - -
VIP Equity-Income 4,290 10.65
Investment in the Fidelity Variable Insurance Products Fund II:
VIP II Contrafund 13,860 12.20
Investments in MFS Variable Insurance Trust: - -
MFS Emerging Growth 15,323 13.46
MFS Limited Maturity - -
MFS Growth with Income 4,138 10.31
MFS New Discovery 707 12.72
Investments in the Goldman Sachs Variable Insurance Trust:
Growth and Income 2,221 9.61
CORE U.S. Equity 19,750 11.64
CORE Large Cap Growth - -
CORE Small Cap Equity 17,135 10.60
Capital Growth 2,233 11.66
Mid Cap Value - -
International Equity - -
Global Income - -
Investments in Morgan Stanley Dean Witter Universal Funds, Inc.:
Fixed Income - -
Equity Growth 6,766 12.38
Value 16,854 9.35
Mid Cap Value 1,386 11.53
U.S. Real Estate - -
Global Equity 245 10.34
International Magnum - -
Investments in Neuberger & Berman Advisers Management Trust:
AMT Guardian 1,951 10.55
AMT Partners 17,349 10.05
AMT Mid Cap Growth 64 12.40
Investments in STI Classic Variable Trust:
STI Capital Appreciation - -
STI Value Income Stock - -
</TABLE>
29
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF FINANCIAL POSITION
SEPTEMBER 30, DECEMBER 31,
1999 1998
------------ ------------
($ in thousands, except par value data) (UNAUDITED)
ASSETS
Investments
Fixed income securities, at fair value
(amortized cost $94,957 and $87,415) .......... $ 95,569 $ 94,313
Short-term ....................................... 689 4,663
---------- ----------
Total investments .......................... 96,258 98,976
Reinsurance recoverable from
Allstate Life Insurance Company .................. 3,900,740 3,113,278
Other assets ........................................ 3,157 2,590
Separate Accounts ................................... 1,236,227 993,622
---------- ----------
TOTAL ASSETS ............................... $5,236,382 $4,208,466
========== ==========
LIABILITIES
Contractholder funds ................................ $3,900,740 $3,113,278
Current income taxes payable ........................ 1,863 2,181
Deferred income taxes ............................... 285 2,499
Payable to affiliates, net .......................... 4,641 3,583
Separate Accounts ................................... 1,236,227 993,622
---------- ----------
TOTAL LIABILITIES .......................... 5,143,756 4,115,163
---------- ----------
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 ..................................... 20,487 17,079
Accumulated other comprehensive income:
Unrealized net capital gains .................... 398 4,483
---------- ----------
TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME 398 4,483
---------- ----------
TOTAL SHAREHOLDER'S EQUITY ................. 92,626 93,303
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY . $5,236,382 $4,208,466
========== ==========
See notes to financial statements.
3
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------- -----------------
($ in thousands) 1999 1998 1999 1998
-------- ------- ------- -------
(UNAUDITED) (UNAUDITED)
REVENUES
Net investment income ........... $ 1,682 $ 1,563 $ 4,864 $ 4,690
Realized capital losses and gains (69) -- 360 --
------- ------- ------- -------
INCOME BEFORE INCOME TAX EXPENSE 1,613 1,563 5,224 4,690
Income tax expense .............. 555 559 1,816 1,624
------- ------- ------- -------
NET INCOME ...................... $ 1,058 $ 1,004 $ 3,408 $ 3,066
======= ======= ======= =======
See notes to financial statements.
4
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
---------------------
($ in thousands) 1999 1998
--------- --------
(UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ..................................................... $ 3,408 $ 3,066
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization and other non-cash items ................... (8) --
Realized capital gains and losses ....................... (360) --
Changes in:
Income taxes payable ................................ (331) 1,045
Other operating assets and payable to affiliates, net 288 2,815
-------- --------
Net cash provided by operating activities ....... 2,997 6,926
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed income securities
Proceeds from sales ..................................... 7,116 --
Investment collections .................................. 4,297 5,164
Investment purchases .................................... (18,394) (11,265)
Change in short-term investments, net .......................... 3,984 1,680
-------- --------
Net cash used in investing activities ........... (2,997) (4,421)
-------- --------
NET INCREASE IN CASH ........................................... -- 2,505
CASH AT THE BEGINNING OF PERIOD ................................ -- --
-------- --------
CASH AT END OF PERIOD .......................................... $ -- $ 2,505
======== ========
</TABLE>
See notes to financial statements.
5
<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 ("AIC"), a wholly owned subsidiary of The
Allstate Corporation (the "Corporation"). These financial statements have
been prepared in conformity with generally accepted accounting principles.
The financial statements and notes as of September 30, 1999 and for the
three month and nine month periods ended September 30, 1999 and 1998 are
unaudited. The 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 1998. The results of
operations for the interim periods should not be considered indicative of
results to be expected for the full year.
Effective January 1, 1999, the Company adopted 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 adoption of this statement had
an immaterial impact on the Company's results of operations and financial
position.
To conform with the 1999 presentation, certain amounts in the prior years'
financial statements and notes have been reclassified.
2. REINSURANCE
The Company has reinsurance agreements whereby substantially all contract
charges, credited interest, policy benefits and certain expenses are ceded
to ALIC and reflected net of such reinsurance 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 under reinsurance agreements. Reinsurance recoverable and the
related 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.
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 the assuming company under the terms of reinsurance
agreements. The following amounts were ceded to ALIC under reinsurance
agreements.
6
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------------- -------------------------------
($ in thousands) 1999 1998 1999 1998
--------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Contract charges $ 6,924 $ 5,010 $ 19,540 $ 14,198
Credited interest, policy
benefits, and certain
expenses 59,740 62,025 177,233 156,627
</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 SEPTEMBER 30,
-------------------------------------------------------------------------------
($ in thousands) 1999 1998
-------------------------------------- ------------------------------------
After- After-
Pretax Tax Tax Pretax Tax tax
------ --- --- ------ --- ---
<S> <C> <C> <C> <C> <C> <C>
Unrealized capital gains and losses:
Unrealized holding
(losses) gains arising
during the period $ (951) $ 334 $ (617) $3,115 $ (1,090) $2,025
Less: reclassification
adjustment for realized
net capital losses
included in net income (69) 24 (45) - - -
------ ----- ------ ------ ------- -----
Unrealized net capital
(losses) gains (882) 310 (572) 3,115 (1,090) 2,025
------ ----- ------ ------ ------- -----
Other comprehensive
(loss) income $ (882) $ 310 (572) $3,115 $(1,090) 2,025
====== ====== ====== =======
Net income 1,058 1,004
------ ------
Comprehensive
income $ 486 $3,029
====== ======
</TABLE>
7
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
3. COMPREHENSIVE INCOME (CONTINUED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------------------------------------------------------
($ in thousands) 1999 1998
-------------------------------------- ------------------------------------
After- After-
Pretax Tax Tax Pretax Tax tax
------ --- --- ------ --- ---
<S> <C> <C> <C> <C> <C> <C>
Unrealized capital gains and losses:
Unrealized holding
(losses) gains arising
during the period $(5,926) $2,075 $(3,851) $3,710 $ (1,299) $2,411
Less: reclassification
adjustment for realized
net capital gains
included in net income 360 (126) 234 - - -
------ ------ ------- ------ ------- -----
Unrealized net capital
(losses) gains (6,286) 2,201 (4,085) 3,710 (1,299) 2,411
------ ------ ------- ------ ------- -----
Other comprehensive
(loss) income $(6,286) $2,201 (4,085) $3,710 $(1,299) 2,411
======= ====== ====== =======
Net income 3,408 3,066
------- ------
Comprehensive
(loss) income $ (677) $5,477
======= ======
</TABLE>
4. COMMITMENTS AND CONTINGENT LIABILITIES
REGULATION AND LEGAL PROCEEDINGS
The Company is subject to the effects of a changing social, economic and
regulatory environment. Public and regulatory initiatives have varied and
have included employee benefit regulations, 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.
Various other legal and regulatory actions are currently pending that
involve the Company and specific aspects of its conduct of business. In
the opinion of management, the ultimate liability, if any, in one or more
of these actions in excess of amounts currently reserved is not expected
to have a material effect on the results of operations, liquidity or
financial position of the Company.
8
<PAGE>
Part C is hereby amended to include the following exhibits:
Item 24(b) Exhibit
- ---------- -------
(8) Form of Participation Agreement for STI/SEI Inc.
Form of Participation Agreement for Oppenheimer
Form of Participation Agreement for Fidelity
Form of Participation Agreement for Franklin Templeton
(9) Opinion and Consent of Michael J. Velotta, Vice President, Secretary and
General Counsel of Glenbrook Life and Annuity Company.
(10)(a) Independent Auditors' Consent
(10)(b) Consent of Freedman, Levy, Kroll & Simonds
(13) Performance Data Calculations for: STI Classic Growth and Income, STI
International Equity, STI Investment Grade Bond, STI Mid-Cap Equity, STI
Quality Stock Growth, Templeton Bond, Fidelity Index 500, Fidelity VIP
Index 500, Fidelity VIP Overseas and Oppenheimer Multiple Strategies
Fund/VA
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant, Glenbrook Life Multi-Manager Variable Account, certifies
that it meets the requirements of the Securities Act Rule 485 (b) for
effectiveness of this amended Registration Statement and has caused this amended
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 18th day of January, 2000.
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
(REGISTRANT)
BY: GLENBROOK LIFE AND ANNUITY COMPANY
(DEPOSITOR)
(SEAL)
Attest: /s/Joanne M. Derrig By: /s/Michael J. Velotta
------------------------ ----------------------
Joanne M. Derrig Michael J. Velotta
Assistant Secretary, Assistant General Vice President, Secretary
Counsel and Chief Compliance Officer and General Counsel
As required by the Securities Act of 1933, this amended Registration Statement
has been duly signed below by the following Directors and Officers of Glenbrook
Life and Annuity Company on the 18th day of January, 2000.
*/LOUIS G. LOWER, II Chairman of the Board, Chief
Louis G. Lower, II Executive Officer and Director
(Principal Executive Officer)
*/THOMAS J. WILSON, II President, Director and
Thomas J. Wilson, II Chief Operating Officer
/s/MICHAEL J. VELOTTA Vice President, Secretary, General
- --------------------- Counsel and Director
Michael J. Velotta
*/JOHN R. HUNTER Vice President and Director
John Hunter
*/SAMUEL H. PILCH Controller
Samuel H. Pilch (Principal Accounting Officer)
*/G. KEVIN R. SLAWIN Vice President and Director
Kevin R. Slawin (Principal Financial Officer)
*/CRAIG WHITEHEAD Vice President and Director
G. Craig Whitehead
*/By Michael J. Velotta, pursuant to Powers of Attorney previously filed.
<PAGE>
Exhibit Index
Exhibit 8 Form of Participation Agreement for STI/SEI Inc.
Form of Participation Agreement for Oppenheimer
Form of Participation Agreement for Fidelity
Form of Participation Agreement for Franklin Templeton
Exhibit 9 Opinion and Consent of Michael J. Velotta
Exhibit 10(a) Independent Auditors' Consent
Exhibit 10(b) Consent of Freedman, Levy, Kroll & Simonds
Exhibit 13(c) Performance Data Calculations: STI Classic Growth and
Income, STI International Equity, STI Investment Grade Bond, STI
Mid-Cap Equity, STI Quality Stock Growth, Templeton Bond,
Fidelity Index 500, Fidelity VIP Index 500, Fidelity VIP Overseas
and Oppenheimer Multiple Strategies Fund/VA
FORM OF
PARTICIPATION AGREEMENT
Among
OPPENHEIMER VARIABLE ACCOUNT FUNDS,
OPPENHEIMERFUNDS, INC.
and
LIFE INSURANCE COMPANY
THIS AGREEMENT (the "Agreement"), made and entered into as of the ____ day
of ____________, 199__ by and among Glenbrook Life and Annuity Company
(hereinafter the "Company"), on its own behalf and on behalf of each separate
account of the Company named in Schedule 1 to this Agreement, as may be amended
from time to time by mutual consent (hereinafter collectively the "Accounts"),
Oppenheimer Variable Account Funds (hereinafter the "Fund") and
OppenheimerFunds, Inc. (hereinafter the "Adviser"). WHEREAS, the Fund is an
open-end management investment company and is available to act as the investment
vehicle for separate accounts now in existence or to be established at any date
hereafter for variable life insurance policies and variable annuity contracts
(collectively, the "Variable Insurance Products") offered by insurance companies
(hereinafter "Participating Insurance Companies"); WHEREAS, the beneficial
interest in the Fund is divided into several series of shares, each designated a
"Portfolio", and each representing the interests in a particular managed pool of
securities and other assets;
WHEREAS, the Fund has obtained an order from the Securities and Exchange
Commission, dated July 16, 1986 (File No. 812-6324) granting Participating
Insurance Companies and variable annuity and variable life insurance 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 and variable life insurance separate accounts of both affiliated and
unaffiliated life insurance companies (hereinafter the "Mixed and Shared Funding
Exemptive Order")
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");
WHEREAS, the Adviser is duly registered as an investment adviser under the
federal Investment Advisers Act of 1940;
WHEREAS, the Company has registered or will register certain variable
annuity and/or life insurance contracts under the 1933 Act (hereinafter
"Contracts") (unless an exemption from registration is available);
WHEREAS, the Accounts are or will be duly organized, validly existing
segregated asset accounts, established by resolution of the Board of Directors
of the Company, to set aside and invest assets attributable to the aforesaid
variable contracts (the Contract(s) and the Account(s) covered by the Agreement
are specified in Schedule 2 attached hereto, as may be modified by mutual
consent from time to time);
WHEREAS, the Company has registered or will register the Accounts as unit
investment trusts under the 1940 Act (unless an exemption from registration is
available);
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, the Company intends to purchase shares in the Portfolios (the
Portfolios covered by this Agreement are specified in Schedule 2 attached hereto
as may be modified by mutual consent from time to time), on behalf of the
Accounts to fund the Contracts named in Schedule 3, as may be amended from time
to time by mutual consent, and the Fund is authorized to sell such shares to
unit investment trusts such as the Accounts at net asset value; and
NOW, THEREFORE, in consideration of their mutual promises, the Fund, the
Adviser and the Company agree as follows:
ARTICLE I. Sale of Fund Shares
1.1. The Fund agrees to sell to the Company those shares of the Fund which
the Company orders on behalf of the Account, executing such orders on a daily
basis at the net asset value next computed after receipt by the Fund or its
designee of the order for the shares of the Fund. 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 written (or facsimile) notice of such
order by 9:30 a.m. New York 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 SEC.
1.2. The Company shall pay for Fund shares on the next Business Day after
it places an order to purchase Fund shares in accordance with Section 1.1
hereof. Payment shall be in federal funds transmitted by wire or by a credit for
any shares redeemed.
1.3. The Fund agrees to make Fund shares available for purchase at the
applicable net asset value per share by the Company for their separate Accounts
listed in Schedule 1 on those days on which the Fund calculates its net asset
value pursuant to rules of the SEC; provided, however, that the Board of
Trustees of the Fund (hereinafter the "Trustees") may refuse 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 Trustees, acting in
good faith and in light of their fiduciary duties under federal and any
applicable state laws, in the best interests of the shareholders of any
Portfolio.
1.4. The Fund agrees to redeem, upon 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 and receipt by such designee shall constitute receipt by the Fund;
provided that the Fund receives written (or facsimile) notice of such request
for redemption by 9:30 a.m. New York time on the next following Business Day.
Payment shall be made within the time period specified in the Fund's prospectus
or statement of additional information, in federal funds transmitted by wire to
the Company's account as designated by the Company in writing from time to time.
1.5. The Company shall pay for the Fund shares on the next Business Day
after an order to purchase shares is made in accordance with the provisions of
Section 1.4 hereof. Payment shall be in federal funds transmitted by wire
pursuant to the instructions of the Fund's treasurer or by a credit for any
shares redeemed.
1.6. The Company agree to purchase and redeem the shares of the Portfolios
named in Schedule 2 offered by the then current prospectus and statement of
additional information of the Fund in accordance with the provisions of such
prospectus and statement of additional information. The Company shall not permit
any person other than a Contract owner to give instructions to the Company which
would require the Company to redeem or exchange shares of the Fund.
ARTICLE II. Sales Material, Prospectuses and Other Reports
2.1. 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 is named, at least ten Business Days prior to its
use. No such material shall be used if the Fund or its designee reasonably
object to such use within ten Business Days after receipt of such material.
"Business Day" shall mean any day in which the New York Stock Exchange is open
for trading and in which the Fund calculates its net asset value pursuant to the
rules of the Securities and Exchange Commission.
2.2. 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 sale
literature or other promotional material approved by the Fund or its designee,
except with the permission of the Fund.
2.3. For purposes of this Article II, the phrase "sales literature or other
promotional material" means 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 billboard
or electronic media), and sales literature (such as brochures, circulars, market
letters and form letters), distributed or made generally available to customers
or the public.
2.4. The Fund shall provide a copy of its current prospectus within a
reasonable period of its filing date, and provide other assistance as is
reasonably necessary in order for the Company once each year (or more frequently
if the prospectus for the Fund is supplemented or amended) to have the
prospectus for the Contracts and the Fund's prospectus printed together in one
document (such printing to be at the Company's expense). The Adviser shall be
permitted to review and approve the typeset form of the Fund's Prospectus prior
to such printing.
2.5. The Fund or the Adviser shall provide the Company with either: (i) a
copy of the Fund's proxy material, reports to shareholders, other information
relating to the Fund necessary to prepare financial reports, and other
communications to shareholders for printing and distribution to Contract owners
at the Company's expense, or (ii) camera ready and/or printed copies, if
appropriate, of such material for distribution to Contract owners at the
Company' expense, within a reasonable period of the filing date for definitive
copies of such material. The Adviser shall be permitted to review and approve
the typeset form of such proxy material and shareholder reports prior to such
printing provided such materials have been provided within a reasonable period.
ARTICLE III. Fees and Expenses
3.1. The Fund and Adviser shall pay no fee or other compensation to the
Company under this agreement, and the Company shall pay no fee or other
compensation to the Fund or Adviser, except as provided herein.
3.2. All expenses incident to performance by each party of its respective
duties under this Agreement shall be paid by that party. 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 advisable by the Fund, in
accordance with applicable state laws prior to their sale. 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, and the preparation of all statements
and notices required by any federal or state law.
3.3. The Company shall bear the expenses of typesetting, printing and
distributing the Fund's prospectus, proxy materials and reports to owners of
Contracts issued by the Company.
3.4. In the event the Fund adds one or more additional Portfolios and the
parties desire to make such Portfolios available to the respective Contract
owners as an underlying investment medium, a new Schedule 3 or an amendment to
this Agreement shall be executed by the parties authorizing the issuance of
shares of the new Portfolios to the particular Account. The amendment may also
provide for the sharing of expenses for the establishment of new Portfolios
among Participating Insurance Companies desiring to invest in such Portfolios
and the provision of funds as the initial investment in the new Portfolios.
ARTICLE IV. Potential Conflicts
4.1. The Board of Trustees of the Fund (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 annuity contract and
variable life insurance contract owners; or (f) a decision by an insurer 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.
4.2. The Company has reviewed a copy of the Mixed and Shared Funding
Exemptive Order, and in particular, has reviewed the conditions to the requested
relief set forth therein. The Company agrees to be bound by the responsibilities
of a participating insurance companies as set forth in the Mixed and Shared
Funding Exemptive Order, including without limitation the requirement that the
Company 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 in
monitoring such conflicts under the Mixed and Shared Funding Exemptive Order, by
providing the Board in a timely manner 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 and by confirming in writing, at the Fund's
request, that the Company are unaware of any such potential or existing material
irreconcilable conflicts.
4.3. If it is determined by a majority of the Board, or a majority of its
disinterested Trustees, that a material irreconcilable conflict exists, the
Company shall, at its expense and to the extent reasonably practicable (as
determined by a majority of the disinterested trustees), take whatever steps are
necessary to remedy or eliminate the irreconcilable material conflict, up to an
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 contract 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.
4.4. 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 Account's investment in
the Fund and terminate this Agreement; 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. Any such withdrawal and termination must
take place within six (6) months after the Fund gives written notice that this
provision is being implemented, and until the end of the six month period the
Fund shall continue to accept and implement orders by the Company for the
purchase and redemption of shares of the Fund.
4.5. 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
Account's investment in the Fund and terminate this Agreement 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 Fund shall continue to accept and implement orders by the Company
for the purchase and redemption of shares of the Fund, subject to applicable
regulatory limitation.
4.6. For purposes of Sections 4.3 through 4.6 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 4.3 to establish a new funding
medium for 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. In the event that the Board determines that any proposed
action does not adequately remedy any irreconcilable material conflict, then the
Company will withdraw the particular Account's investment in the Fund and
terminate this Agreement within six (6) months after the Board informs the
Company in writing of the foregoing determination, provided, however, that such
withdrawal and termination shall be limited to the extent required by any such
material irreconcilable conflict as determined by a majority of the
disinterested members of the Board.
ARTICLE V. Applicable Law
5.1. This Agreement shall be construed and the provisions hereof
interpreted under and in accordance with the laws of the State of New York.
5.2. 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 Mixed and
Shared Funding Exemptive Order) and the terms hereof shall be interpreted and
construed in accordance therewith.
ARTICLE VI. Termination
6.1 This Agreement shall terminate with respect to some or all Portfolios:
(a) at the option of any party upon six month's advance written notice
to the other parties;
(b) at the option of the Company to the extent that shares of
Portfolios are not reasonably available to meet the requirements of its
Contracts or are not appropriate funding vehicles for the Contracts, as
determined by the Company reasonably and in good faith. Prompt notice of
the election to terminate for such cause and an explanation of such cause
shall be furnished by the Company; or
(c) as provided in Article IV 6.2. It is understood and agreed that
the right of any party hereto to terminate this Agreement pursuant to
Section 6.1(a) may be exercised for cause or for no cause.
ARTICLE VII. 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
to the other party.
If to the Fund:
Oppenheimer Variable Account Funds
c/o OppenheimerFunds, Inc.
2 World Trade Center
New York, NY 10048-0203
Attn: Legal Department
If to the Adviser:
OppenheimerFunds, Inc.
2 World Trade Center
New York, NY 10048-0203
Attn: General Counsel
If to the Company:
ARTICLE VIII. Miscellaneous
8.1. 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 without the express
written consent of the affected party until such time as it may come into the
public domain.
8.2. 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.
8.3. This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together shall constitute one and the same
instrument.
8.4. 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.
8.5. Each party hereto shall cooperate with, and promptly notify each other
party and all appropriate governmental authorities (including without limitation
the Securities and Exchange Commission, the National Association of Securities
Dealers, Inc. 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.
8.6. 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.
8.7. It is understood by the parties that this Agreement is not an
exclusive arrangement in any respect.
8.8. The Company and the Adviser each understand and agree that the
obligations of the Fund under this Agreement are not binding upon any
shareholder of the Fund personally, but bind only the Fund and the Fund's
property; the Company and the Adviser each represent that it has notice of the
provisions of the Declaration of Trust of the Fund disclaiming shareholder
liability for acts or obligations of the Fund.
8.9. This Agreement shall not be assigned by any party hereto without the
prior written consent of all the parties.
8.10. This Agreement sets forth the entire agreement between the parties
and supercedes all prior communications, agreements and understandings, oral or
written, between the parties regarding the subject matter hereof.
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 as of the date specified below.
_____________ LIFE INSURANCE COMPANY
By: __________________________________
Title: _______________________________
Date: ________________________________
OPPENHEIMER VARIABLE ACCOUNT
FUNDS
By: __________________________________
Title: _______________________________
Date: ________________________________
OPPENHEIMERFUNDS, INC.
By:______________________________________
Title: __________________________________
Date: ________________________________
<PAGE>
FORM OF
PARTICIPATION AGREEMENT
AMONG TEMPLETON VARIABLE PRODUCTS SERIES FUND,
FRANKLIN TEMPLETON DISTRIBUTORS, INC. and
GLENBROOK LIFE AND ANNUITY COMPANY
THIS AGREEMENT made as of ____________, 1998, among Templeton Variable
Products Series Fund (the "Trust"), an open-end management investment company
organized as a business trust under Massachusetts law, Franklin Templeton
Distributors, Inc., a California corporation, the Trust's principal underwriter
("Underwriter"), and Glenbrook Life and Annuity Company, a life insurance
company organized as a corporation under Illinois law (the "Company"), on its
own behalf and on behalf of each segregated asset account of the Company set
forth in Schedule A, as may be amended from time to time (the "Accounts").
W I T N E S S E T H:
WHEREAS, the Trust is registered with the Securities and Exchange
Commission (the "SEC") as an open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act"), and has an
effective registration statement relating to the offer and sale of the various
series of its shares under the Securities Act of 1933, as amended (the "1933
Act");
WHEREAS, the Trust and the Underwriter desire that Trust shares be used as
an investment vehicle for separate accounts established for variable life
insurance policies and variable annuity contracts to be offered by life
insurance companies which have entered into fund participation agreements with
the Trust (the "Participating Insurance Companies");
WHEREAS, the beneficial interest in the Trust is divided into several
series of shares, each series representing an interest in a particular managed
portfolio of securities and other assets, and certain of those series, named in
Schedule B, (the "Portfolios") are to be made available for purchase by the
Company for the Accounts; and
WHEREAS, the Trust has received an order from the SEC, dated November 16,
1993 (File No. 812-8546), granting Participating Insurance Companies and their
separate accounts exemptions from the provisions of Sections 9(a), 13(a), 15(a)
and 15(b) of 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 Trust to be sold to
and held by variable annuity and variable life insurance separate accounts of
both affiliated and unaffiliated life insurance companies and certain qualified
pension and retirement plans (the "Shared Funding Exemptive Order");
WHEREAS, the Company has registered or will register each Account as a unit
investment trust under the 1940 Act unless an exemption from registration under
the 1940 Act is available and the Trust has been so advised; and has registered
or will register certain variable annuity contracts and variable life insurance
policies, listed on Schedule C attached hereto, under which the portfolios are
to be made available as investment vehicles (the "Contracts") under the 1933 Act
unless such interests under the Contracts in the Accounts are exempt from
registration under the 1933 Act and the Trust has been so advised;
WHEREAS, each Account is a duly organized, validly existing segregated
asset account, established by resolution 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 one or more Contracts; and
WHEREAS, the Underwriter is registered as a broker dealer with the
Securities and Exchange Commission under the Securities Exchange Act of 1934, as
amended (the "1934 Act"), and is a member in good standing of the National
Association of Securities Dealers, Inc. ("NASD"); and
WHEREAS, each investment adviser listed on Schedule B (each, an "Adviser")
is duly registered as an investment adviser under the Investment Advisers Act of
1940, as amended ("Advisers Act") and any applicable state securities laws;
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, the Company intends to purchase shares in the Portfolios on behalf
of each Account to fund certain of the aforesaid Contracts and the Underwriter
is authorized to sell such shares to unit investment trusts such as each Account
at net asset value;
NOW THEREFORE, in consideration of their mutual promises, the parties agree
as follows:
ARTICLE I.
Purchase and Redemption of Trust Portfolio Shares
1.1. For purposes of this Article I, the Company shall be the Trust's agent
for receipt of purchase orders and requests for redemption relating to each
Portfolio from each Account, provided that the Company notifies the Trust of
such purchase orders and requests for redemption by 9:00 a.m. Eastern time on
the next following Business Day, as defined in Section 1.3.
1.2. The Trust agrees to make shares of the Portfolios available to the
Accounts for purchase at the net asset value per share next computed after
receipt of a purchase order by the Trust (or its agent), as established in
accordance with the provisions of the then current prospectus of the Trust
describing Portfolio purchase procedures on those days on which the Trust
calculates its net asset value pursuant to rules of the SEC, and the Trust shall
use its best efforts to calculate such net asset value on each day on which the
New York Stock Exchange ("NYSE") is open for trading. The Company will transmit
orders from time to time to the Trust for the purchase of shares of the
Portfolios. The Trustees of the Trust (the "Trustees") may refuse 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 if, in the sole discretion of the Trustees acting in good
faith and in light of their fiduciary duties under federal and any applicable
state laws, such action is deemed in the best interests of the shareholders of
such Portfolio.
1.3 The Company shall submit payment for the purchase of shares of a
Portfolio on behalf of an Account no later than the close of business on the
next Business Day after the Trust receives the purchase order. Payment shall be
made in federal funds transmitted by wire to the Trust or its designated
custodian. Upon receipt by the Trust of the federal funds so wired, such funds
shall cease to be the responsibility of the Company and shall become the
responsibility of the Trust for this purpose. "Business Day" shall mean any day
on which the NYSE is open for trading and on which the Trust calculates its net
asset value pursuant to the rules of the SEC.
1.4 The Trust will redeem for cash any full or fractional shares of any
Portfolio, when requested by the Company on behalf of an Account, at the net
asset value next computed after receipt by the Trust (or its agent) of the
request for redemption, as established in accordance with the provisions of the
then current prospectus of the Trust describing Portfolio redemption procedures.
The Trust shall make payment for such shares in the manner established from time
to time by the Trust. Redemption with respect to a Portfolio will normally be
paid to the Company for an Account in federal funds transmitted by wire to the
Company before the close of business on the next Business Day after the receipt
of the request for redemption. Such payment may be delayed if, for example, the
Portfolio's cash position so requires or if extraordinary market conditions
exist, but in no event shall payment be delayed for a greater period than is
permitted by the 1940 Act.
1.5 Payments for the purchase of shares of the Trust's Portfolios by the
Company under Section 1.3 and payments for the redemption of shares of the
Trust's Portfolios under Section 1.4 may be netted against one another on any
Business Day for the purpose of determining the amount of any wire transfer on
that Business Day.
1.6 Issuance and transfer of the Trust's Portfolio shares will be by book
entry only. Stock certificates will not be issued to the Company or the Account.
Portfolio Shares purchased from the Trust will be recorded in the appropriate
title for each Account or the appropriate subaccount of each Account.
1.7 The Trust shall furnish, on or before the ex-dividend date, notice to
the Company of any income dividends or capital gain distributions payable on the
shares of any Portfolio of the Trust. The Company hereby elects to receive all
such income dividends and capital gain distributions as are payable on a
Portfolio's shares in additional shares of the Portfolio. The Trust shall notify
the Company of the number of shares so issued as payment of such dividends and
distributions.
1.8 The Trust shall calculate the net asset value of each Portfolio on each
Business Day, as defined in Section 1.3. The Trust shall make the net asset
value per share for each Portfolio available to the Company or its designated
agent 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
reasonable efforts to make such net asset value per share available by 7:00 p.m.
Eastern time each Business Day.
1.9 The Trust agrees that its Portfolio shares will be sold only to
Participating Insurance Companies and their separate accounts and to certain
qualified pension and retirement plans to the extent permitted by the Shared
Funding Exemptive Order. No shares of any Portfolio will be sold directly to the
general public. The Company agrees that it will use Trust shares only for the
purposes of funding the Contracts through the Accounts listed in Schedule A, as
amended from time to time.
1.10 The Company agrees that all net amounts available under the Contracts
shall be invested in the Trust, in such other Funds advised by an Adviser or its
affiliates as may be mutually agreed to in writing by the parties hereto, or in
the Company's general account, provided that such amounts may also be invested
in an investment company other than the Trust if: (a) such other investment
company, or series thereof, has investment objectives or policies that are
substantially different from the investment objectives and policies of the
Portfolios; or (b) the Company gives the Trust and the Underwriter 45 days
written notice of its intention to make such other investment company available
as a funding vehicle for the Contracts; or (c) such other investment company is
available as a funding vehicle for the Contracts at the date of this Agreement
and the Company so informs the Trust and the Underwriter prior to their signing
this Agreement (a list of such investment companies appearing on Schedule D to
this Agreement); or (d) the Trust or Underwriter consents to the use of such
other investment company.
1.11 The Trust agrees that all Participating Insurance Companies shall have
the obligations and responsibilities regarding pass-through voting and conflicts
of interest corresponding to those contained in Section 2.10 and Article IV of
this Agreement.
1.12 Each party to this Agreement shall have the right to rely on
information or confirmations provided by any other party (or by any affiliate of
any other party), and shall not be liable in the event that an error results
from any incorrect information or confirmations supplied by any other party. If
an error is made in reliance upon incorrect information or confirmations, any
amount required to make a Contract owner's account whole shall be borne by the
party who provided the incorrect information or confirmation.
ARTICLE II.
Obligations of the Parties; Fees and Expenses
2.1 The Trust shall prepare and be responsible for filing with the SEC and
any state regulators requiring such filing all shareholder reports, notices,
proxy materials (or similar materials such as voting instruction solicitation
materials), prospectuses and statements of additional information of the Trust.
The Trust shall bear the costs of registration and qualification of its shares
of the Portfolios, preparation and filing of the documents listed in this
Section 2.1 and all taxes to which an issuer is subject on the issuance and
transfer of its shares.
2.2 At the option of the Company, the Trust or the Underwriter shall either
(a) provide the Company with as many copies of portions of the Trust's current
prospectus, annual report, semi-annual report and other shareholder
communications, including any amendments or supplements to any of the foregoing,
pertaining specifically to the Portfolios as the Company shall reasonably
request; or (b) provide the Company with a camera ready copy of such documents
in a form suitable for printing and from which information relating to series of
the Trust other than the Portfolios has been deleted to the extent practicable.
The Trust or the Underwriter shall provide the Company with a copy of its
current statement of additional information, including any amendments or
supplements, in a form suitable for duplication by the Company. Expenses of
furnishing such documents for marketing purposes shall be borne by the Company
and expenses of furnishing such documents for current contract owners invested
in the Trust shall be borne by the Trust or the Underwriter.
2.3 The Trust (at its expense) shall provide the Company with copies of any
Trust-sponsored proxy materials in such quantity as the Company shall reasonably
require for distribution to Contract owners. The Company shall bear the costs of
distributing proxy materials (or similar materials such as voting solicitation
instructions), prospectuses and statements of additional information to Contract
owners. The Company assumes sole responsibility for ensuring that such materials
are delivered to Contract owners in accordance with applicable federal and state
securities laws.
2.4 If and to the extent required by law, the Company shall: (i) solicit
voting instructions from Contract owners; (ii) vote the Trust shares in
accordance with the instructions received from Contract owners; and (iii) vote
Trust shares for which no instructions have been received in the same proportion
as Trust shares of such Portfolio for which instructions have been received; so
long as and to the extent that the SEC continues to interpret the 1940 Act to
require pass-through voting privileges for variable contract owners. The Company
reserves the right to vote Trust shares held in any segregated asset account in
its own right, to the extent permitted by law.
2.5 Except as provided in section 2.6, the Company shall not use any
designation comprised in whole or part of the names or marks "Franklin" or
"Templeton" or any other Trademark relating to the Trust or Underwriter without
prior written consent, and upon termination of this Agreement for any reason,
the Company shall cease all use of any such name or mark as soon as reasonably
practicable.
2.6 The Company shall furnish, or cause to be furnished to the Trust or its
designee, at least one complete copy of each registration statement, prospectus,
statement of additional information, retirement plan disclosure information or
other disclosure documents or similar information, as applicable (collectively
"disclosure documents"), as well as any report, solicitation for voting
instructions, sales literature and other promotional materials, and all
amendments to any of the above that relate to the Contracts or the Accounts
prior to its first use. The Company shall furnish, or shall cause to be
furnished, to the Trust or its designee each piece of sales literature or other
promotional material in which the Trust or an Adviser is named, at least 15
Business Days prior to its use. No such material shall be used if the Trust or
its designee reasonably objects to such use within five Business Days after
receipt of such material. For purposes of this paragraph, "sales literature or
other promotional material" includes, but is not limited to, portions of the
following that use any Trademark related to the Trust or Underwriter or refer to
the Trust or affiliates of the Trust: 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 electronic communication 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 or
any other advertisement, sales literature or published article or electronic
communication), educational or training materials or other communications
distributed or made generally available to some or all agents or employees, and
disclosure documents, shareholder reports and proxy materials.
2.7 The Company and its agents shall not give any information or make any
representations or statements on behalf of the Trust or concerning the Trust,
the Underwriter or an Adviser in connection with the sale of the Contracts other
than information or representations contained in and accurately derived from the
registration statement or prospectus for the Trust shares (as such registration
statement and prospectus may be amended or supplemented from time to time),
annual and semi-annual reports of the Trust, Trust-sponsored proxy statements,
or in sales literature or other promotional material approved by the Trust or
its designee, except as required by legal process or regulatory authorities or
with the written permission of the Trust or its designee.
2.8 The Trust shall use its best efforts to provide the Company, on a
timely basis, with such information about the Trust, the Portfolios and each
Adviser, in such form as the Company may reasonably require, as the Company
shall reasonably request in connection with the preparation of disclosure
documents and annual and semi-annual reports pertaining to the Contracts.
2.9 The Trust shall not give any information or make any representations or
statements on behalf of the Company or concerning the Company, the Accounts or
the Contracts other than information or representations contained in and
accurately derived from disclosure documents for the Contracts (as such
disclosure documents may be amended or supplemented from time to time), or in
materials approved by the Company for distribution including sales literature or
other promotional materials, except as required by legal process or regulatory
authorities or with the written permission of the Company.
2.10 So long as, and to the extent that, the SEC interprets the 1940 Act to
require pass-through voting privileges for Contract owners, the Company will
provide pass-through voting privileges to Contract owners whose Contract values
are invested, through the registered Accounts, in shares of one or more
Portfolios of the Trust. The Trust shall require all Participating Insurance
Companies to calculate voting privileges in the same manner and the Company
shall be responsible for assuring that the Accounts calculate voting privileges
in the manner established by the Trust. With respect to each registered Account,
the Company will vote shares of each Portfolio of the Trust held by a registered
Account and for which no timely voting instructions from Contract owners are
received in the same proportion as those shares held by that registered Account
for which voting instructions are received. The Company and its agents will in
no way recommend or oppose or interfere with the solicitation of proxies for
Portfolio shares held to fund the Contracts without the prior written consent of
the Trust, which consent may be withheld in the Trust's sole discretion.
2.11 The Trust and Underwriter shall pay no fee or other compensation to
the Company under this Agreement except as provided on Schedule E, if attached.
Nevertheless, the Trust or the Underwriter or an affiliate may make payments
(other than pursuant to a Rule 12b-1 Plan) to the Company or its affiliates or
to the Contracts' underwriter in amounts agreed to by the Underwriter in writing
and such payments may be made out of fees otherwise payable to the Underwriter
or its affiliates, profits of the Underwriter or its affiliates, or other
resources available to the Underwriter or its affiliates.
ARTICLE III.
Representations and Warranties
3.1 The Company represents and warrants that it is an insurance company
duly organized and in good standing under the laws of its state of incorporation
and that it has legally and validly established each Account as a segregated
asset account under such law as of the date set forth in Schedule A.
3.2 The Company represents and warrants that, with respect to each Account,
(1) the Company has registered or, prior to any issuance or sale of the
Contracts, will register the Account as a unit investment trust in accordance
with the provisions of the 1940 Act to serve as a segregated asset account for
the Contracts, or (2) if the Account is exempt from registration as an
investment company under Section 3(c) of the 1940 Act, the Company will make
every effort to maintain such exemption and will notify the Trust and the
Adviser immediately upon having a reasonable basis for believing that such
exemption no longer applies or might not apply in the future.
3.3 The Company represents and warrants that, with respect to each
Contract, (1) the Contract will be registered under the 1933 Act, or (2) if the
Contract is exempt from registration under Section 3(a)(2) of the 1933 Act or
under Section 4(2) and Regulation D of the 1933 Act, the Company will make every
effort to maintain such exemption and will notify the Trust and the Adviser
immediately upon having a reasonable basis for believing that such exemption no
longer applies or might not apply in the future. The Company further represents
and warrants that the Contracts will be sold by broker-dealers, or their
registered representatives, who are registered with the SEC under the 1934 Act
and who are members in good standing of the NASD; the Contracts will be issued
and sold in compliance in all material respects with all applicable federal and
state laws; and the sale of the Contracts shall comply in all material respects
with state insurance suitability requirements.
For any unregistered Accounts which are exempt from registration under the
`40 Act in reliance upon Sections 3(c)(1) or 3(c)(7) thereof, the Company
represents and warrants that:
(a) each Account and sub-account thereof has a principal underwriter which
is registered as a broker-dealer under the Securities Exchange Act of
1934, as amended;
(b) Trust shares are and will continue to be the only investment
securities held by the corresponding Account sub-accounts; and
(c) with regard to each Portfolio, the Company, on behalf of the
corresponding sub-account, will:
(1) seek instructions from all Contract owners with regard to the
voting of all proxies with respect to Trust shares and vote such
proxies only in accordance with such instructions or vote such
shares held by it in the same proportion as the vote of all other
holders of such shares; and
(2) refrain from substituting shares of another security for such
shares unless the SEC has approved such substitution in the
manner provided in Section 26 of the `40 Act.
3.4 The Trust represents and warrants that it is duly organized and validly
existing under the laws of the State of Massachusetts and that it does and will
comply in all material respects with the 1940 Act and the rules and regulations
thereunder.
3.5 The Trust represents and warrants that the Portfolio shares offered and
sold pursuant to this Agreement will be registered under the 1933 Act and the
Trust shall be registered under the 1940 Act prior to and at the time of any
issuance or sale of such shares. The Trust shall amend its registration
statement 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 Trust shall register
and qualify its shares for sale in accordance with the laws of the various
states only if and to the extent deemed advisable by the Trust or the
Underwriter.
3.6 The Trust represents and warrants that the investments of each
Portfolio will comply with the diversification requirements for variable
annuity, endowment or life insurance contracts set forth in Section 817(h) of
the Internal Revenue Code of 1986, as amended ("Code"), and the rules and
regulations thereunder, including without limitation Treasury Regulation
1.817-5, and will notify the Company immediately upon having a reasonable basis
for believing any Portfolio has ceased to comply or might not so comply and will
in that event immediately take all reasonable steps to adequately diversify the
Portfolio to achieve compliance within the grace period afforded by Regulation
1.817-5.
3.7 The Trust represents and warrants that it is currently qualified as a
"regulated investment company" under Subchapter M of the Code, that it will make
every effort to maintain such qualification and will notify the Company
immediately upon having a reasonable basis for believing it has ceased to so
qualify or might not so qualify in the future.
3.8 The Trust represents and warrants that should it ever desire to make
any payments to finance distribution expenses pursuant to Rule 12b-1 under the
1940 Act, the Trustees, including a majority who are not "interested persons" of
the Trust under the 1940 Act ( "disinterested Trustees" ), will formulate and
approve any plan under Rule 12b-1 to finance distribution expenses.
3.9 The Trust represents and warrants that it, its directors, officers,
employees and others dealing with the money or securities, or both, of a
Portfolio shall at all times be covered by a blanket fidelity bond or similar
coverage for the benefit of the Trust in an amount not less that the minimum
coverage required by Rule 17g-1 or other regulations under the 1940 Act. Such
bond shall include coverage for larceny and embezzlement and be issued by a
reputable bonding company.
3.10 The Company represents and warrants that all of its directors,
officers, employees, investment advisers, and other individuals or entities
dealing with the money and/or securities of the Trust are and shall be at all
times covered by a blanket fidelity bond or similar coverage for the benefit of
the Trust, in an amount not less than $5 million. The aforesaid bond shall
include coverage for larceny and embezzlement and shall be 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 Trust and the Underwriter in the event that such coverage
no longer applies.
3.11 The Underwriter represents that each Adviser is duly organized and
validly existing under applicable corporate law and that it is registered and
will during the term of this Agreement remain registered as an investment
adviser under the Advisers Act.
3.12 The Trust currently intends for one or more Classes to make payments
to finance its distribution expenses, including service fees, pursuant to a Plan
adopted under Rule 12b-1 under the 1940 Act ("Rule 12b-1"), although it may
determine to discontinue such practice in the future. To the extent that any
Class of the Trust finances its distribution expenses pursuant to a Plan adopted
under Rule 12b-1, the Trust undertakes to comply with any then current SEC and
SEC staff interpretations concerning Rule 12b-1 or any successor provisions.
ARTICLE IV.
Potential Conflicts
4.1 The parties acknowledge that a Portfolio's shares may be made available
for investment to other Participating Insurance Companies. In such event, the
Trustees will monitor the Trust for the existence of any material irreconcilable
conflict between the interests of the contract owners of all Participating
Insurance Companies. 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 annuity contract and variable life insurance contract owners; or (f) a
decision by an insurer to disregard the voting instructions of contract owners.
The Trust shall promptly inform the Company of any determination by the Trustees
that an irreconcilable material conflict exists and of the implications thereof.
4.2 The Company agrees to promptly report any potential or existing
conflicts of which it is aware to the Trustees. The Company will assist the
Trustees in carrying out their responsibilities under the Shared Funding
Exemptive Order by providing the Trustees with all information reasonably
necessary for the Trustees to consider any issues raised including, but not
limited to, information as to a decision by the Company to disregard Contract
owner voting instructions. All communications from the Company to the Trustees
may be made in care of the Trust.
4.3 If it is determined by a majority of the Trustees, or a majority of the
disinterested Trustees, that a material irreconcilable conflict exists that
affects the interests of Contract owners, the Company shall, in cooperation with
other Participating Insurance Companies whose contract owners are also affected,
at its own expense and to the extent reasonably practicable (as determined by
the Trustees) take whatever steps are necessary to remedy or eliminate the
irreconcilable material conflict, which steps could include: (a) withdrawing the
assets allocable to some or all of the Accounts from the Trust or any Portfolio
and reinvesting such assets in a different investment medium, including (but not
limited to) another Portfolio of the Trust, or submitting the question of
whether or not such withdrawal should be implemented to a vote of all affected
Contract owners and, as appropriate, withdrawal of 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 withdrawal, or offering to the affected Contract owners the option
of making such a change; and (b) establishing a new registered management
investment company or managed separate account.
4.4 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 Trust's election, to withdraw the affected Account's
investment in the Trust and terminate this Agreement with respect to such
Account; 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 Trustees. Any such withdrawal
and termination must take place within six (6) months after the Trust gives
written notice that this provision is being implemented. Until the end of such
six (6) month period, the Trust shall continue to accept and implement orders by
the Company for the purchase and redemption of shares of the Trust.
4.5 If a material irreconcilable conflict arises because a particular state
insurance regulator's decision applicable to the Company conflicts with a
majority of other state regulators, then the Company will withdraw the affected
Account's investment in the Trust and terminate this Agreement with respect to
such Account within six (6) months after the Trustees inform 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 Trustees. Until the
end of such six (6) month period, the Trust shall continue to accept and
implement orders by the Company for the purchase and redemption of shares of the
Trust.
4.6 For purposes of Sections 4.3 through 4.6 of this Agreement, a majority
of the disinterested Trustees shall determine whether any proposed action
adequately remedies any irreconcilable material conflict, but in no event will
the Trust be required to establish a new funding medium for the Contracts. In
the event that the Trustees determine that any proposed action does not
adequately remedy any irreconcilable material conflict, then the Company will
withdraw the Account's investment in the Trust and terminate this Agreement
within six (6) months after the Trustees inform the Company in writing of the
foregoing determination; provided, however, that such withdrawal and termination
shall be limited to the extent required by any such material irreconcilable
conflict as determined by a majority of the disinterested Trustees.
4.7 The Company shall at least annually submit to the Trustees such
reports, materials or data as the Trustees may reasonably request so that the
Trustees may fully carry out the duties imposed upon them by the Shared Funding
Exemptive Order, and said reports, materials and data shall be submitted more
frequently if reasonably deemed appropriate by the Trustees.
4.8 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 the Trust 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.
ARTICLE V.
Indemnification
5.1 Indemnification By the Company
(a) The Company agrees to indemnify and hold harmless the
Underwriter, the Trust and each of its Trustees, officers,
employees and agents and each person, if any, who controls the
Trust within the meaning of Section 15 of the 1933 Act
(collectively, the "Indemnified Parties" and individually the
"Indemnified Party" for purposes of this Article V) against any
and all losses, claims, damages, liabilities (including amounts
paid in settlement with the written consent of the Company, which
consent shall not be unreasonably withheld) or expenses
(including the reasonable costs of investigating or defending any
alleged loss, claim, damage, liability or expense and reasonable
legal counsel fees incurred in connection therewith)
(collectively, "Losses"), to which the Indemnified Parties may
become subject under any statute or regulation, or at common law
or otherwise, insofar as such Losses are related to the sale or
acquisition of Trust 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
a disclosure document for the Contracts or in the Contracts
themselves or in sales literature generated or approved by
the Company on behalf of the Contracts or Accounts (or any
amendment or supplement to any of the foregoing)
(collectively, "Company Documents" for the purposes of this
Article V), 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
indemnity 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 was accurately
derived from written information furnished to the Company by
or on behalf of the Trust for use in Company Documents or
otherwise for use in connection with the sale of the
Contracts or Trust shares; or
(ii) arise out of or result from statements or representations
(other than statements or representations contained in and
accurately derived from Trust Documents as defined in
Section 5.2 (a)(i)) or wrongful conduct of the Company or
persons under its control, with respect to the sale or
acquisition of the Contracts or Trust shares; or
(iii)arise out of or result from any untrue statement or alleged
untrue statement of a material fact contained in Trust
Documents as defined in Section 5.2(a)(i) 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 statement or omission was
made in reliance upon and accurately derived from written
information furnished to the Trust by or on behalf of the
Company; or
(iv) arise out of or result from any failure by the Company to
provide the services or furnish the materials required 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.
(b) The Company shall not be liable under this
indemnification provision with respect to any Losses to
which an Indemnified Party would otherwise be subject
by reason of 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 or to
the Trust or Underwriter, whichever is applicable. The
Company shall also 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.
(c) 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 Trust shares or the
Contracts or the operation of the Trust.
5.2 Indemnification By The Underwriter
(a) The Underwriter agrees to indemnify and hold harmless the
Company, the underwriter of the Contracts 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 an
"Indemnified Party" for purposes of this Section 5.2) against any
and all losses, claims, damages, liabilities (including amounts
paid in settlement with the written consent of the Underwriter,
which consent shall not be unreasonably withheld) or expenses
(including the reasonable costs of investigating or defending any
alleged loss, claim, damage, liability or expense and reasonable
legal counsel fees incurred in connection therewith)
(collectively, "Losses") to which the Indemnified Parties may
become subject under any statute, at common law or otherwise,
insofar as such Losses are related to the sale or acquisition of
the Trust'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, prospectus or sales literature
of the Trust (or any amendment or supplement to any of the
foregoing) (collectively, the "Trust Documents") 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 of such alleged statement or omission
was made in reliance upon and in conformity with information
furnished to the Underwriter or Trust by or on behalf of the
Company for use in the Registration Statement or prospectus
for the Trust or in sales literature (or any amendment or
supplement) or otherwise for use in connection with the sale
of the Contracts or Trust shares; or
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the
disclosure documents or sales literature for the Contracts
not supplied by the Underwriter or persons under its
control) or wrongful conduct of the Trust, Adviser or
Underwriter or persons under their control, with respect to
the sale or distribution of the Contracts or Trust shares;
or
(iii)arise out of any untrue statement or alleged untrue
statement of a material fact contained in a disclosure
document 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 Trust; or
(iv) arise as a result of any failure by the Trust to provide the
services and furnish the materials under the terms of this
Agreement (including a failure, whether unintentional or in
good faith or otherwise, to comply with the qualification
representation specified in Section 3.7 of this Agreement
and the diversification requirements specified in Section
3.6 of this Agreement); or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Underwriter in
this Agreement or arise out of or result from any other
material breach of this Agreement by the Underwriter; as
limited by and in accordance with the provisions of Sections
5.2(b) and 5.2(c) hereof.
(b) The Underwriter shall not be liable under this indemnification
provision with respect to any Losses to which an Indemnified
Party would otherwise be subject by reason of 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 or to each Company or the Account,
whichever is applicable.
(c) The Underwriter 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
Underwriter 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
Underwriter of any such claim shall not relieve the Underwriter
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 Underwriter will be
entitled to participate, at its own expense, in the defense
thereof. The Underwriter also shall be entitled to assume the
defense thereof, with counsel satisfactory to the party named in
the action. After notice from the Underwriter to such party of
the Underwriter's election to assume the defense thereof, the
Indemnified Party shall bear the expenses of any additional
counsel retained by it, and the Underwriter 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.
(d) The Company agrees promptly to notify the Underwriter 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.
5.3 Indemnification By The Trust
(a) The Trust 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 (collectively, the "Indemnified Parties" for purposes of this
Section 5.3) against any and all losses, claims, damages,
liabilities (including amounts paid in settlement with the
written consent of the Trust, which consent shall not be
unreasonably withheld) or litigation (including legal and other
expenses) to which the Indemnified Parties may become subject
under any statute, 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 Trust, and arise
out of or result from any material breach of any representation
and/or warranty made by the Trust in this Agreement or arise out
of or result from any other material breach of this Agreement by
the Trust; as limited by and in accordance with the provisions of
Section 5.3(b) and 5.3(c) hereof. It is understood and expressly
stipulated that neither the holders of shares of the Trust nor
any Trustee, officer, agent or employee of the Trust shall be
personally liable hereunder, nor shall any resort to be had to
other private property for the satisfaction of any claim or
obligation hereunder, but the Trust only shall be liable.
(b) The Trust shall not be liable under this indemnification
provision with respect to any losses, claims, damages,
liabilities or litigation incurred or assessed against any
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 or to the Company, the Trust, the
Underwriter or each Account, whichever is applicable.
(c) The Trust 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 Trust
in writing within a reasonable time after the summons or other
first legal process giving information of the nature of the
claims 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 Trust
of any such claim shall not relieve the Trust 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 Trust will be entitled to
participate, at its own expense, in the defense thereof. The
Trust also shall be entitled to assume the defense thereof, with
counsel satisfactory to the party named in the action. After
notice from the Trust to such party of the Trust'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 Trust 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.
(d) The Company and the Underwriter agree promptly to notify the
Trust 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 the Account,
or the sale or acquisition of share of the Trust.
ARTICLE VI.
Termination
6.1 This Agreement may be terminated by any party in its entirety or with
respect to one, some or all Portfolios or any reason by sixty (60) days advance
written notice delivered to the other parties, and shall terminate immediately
in the event of its assignment, as that term is used in the 1940 Act.
6.2 This Agreement may be terminated immediately by either the Trust or the
Underwriter following consultation with the Trustees upon written notice to the
Company if :
(a) the Company notifies the Trust or the Underwriter that the
exemption from registration under Section 3(c) of the 1940 Act no
longer applies, or might not apply in the future, to the
unregistered Accounts, or that the exemption from registration
under Section 4(2) or Regulation D promulgated under the 1933 Act
no longer applies or might not apply in the future, to interests
under the unregistered Contracts; or
(b) either one or both of the Trust or the Underwriter respectively,
shall determine, in their sole judgment exercised in good faith,
that the Company 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
(c) the Company gives the Trust and the Underwriter the written
notice specified in Section 1.10 hereof and at the same time such
notice was given there was no notice of termination outstanding
under any other provision of this Agreement; provided, however,
that any termination under this Section 6.2(c) shall be effective
forty-five (45) days after the notice specified in Section 1.10
was given; or
6.3 If this Agreement is terminated for any reason, except under Article IV
(Potential Conflicts) above, the Trust shall, at the option of the Company,
continue to make available additional shares of any Portfolio and redeem shares
of any Portfolio pursuant to all of the terms and conditions of this Agreement
for all Contracts in effect on the effective date of termination of this
Agreement. If this Agreement is terminated pursuant to Article IV, the
provisions of Article IV shall govern.
6.4 The provisions of Articles II (Representations and Warranties) and V
(Indemnification) shall survive the termination of this Agreement. All other
applicable provisions of this Agreement shall survive the termination of this
Agreement, as long as shares of the Trust are held on behalf of Contract owners
in accordance with Section 6.3, except that the Trust and the Underwriter shall
have no further obligation to sell Trust shares with respect to Contracts issued
after termination.
6.5 The Company shall not redeem Trust shares attributable to the Contracts
(as opposed to Trust shares attributable to the Company's assets held in the
Account) except (i) as necessary to implement Contract owner initiated or
approved transactions, (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 SEC pursuant to Section 26(b) of the 1940 Act. Upon
request, the Company will promptly furnish to the Trust and the Underwriter the
opinion of counsel for the Company (which counsel shall be reasonably
satisfactory to the Trust and the Underwriter) 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 Trust or
the Underwriter 90 days notice of its intention to do so.
ARTICLE VII.
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 Trust or the Underwriter:
Templeton Variable Products Series Fund or
Franklin Templeton Distributors, Inc.
500 E. Broward Boulevard
Fort Lauderdale, FL 33394-3091
Attention: Barbara J. Green, Trust Secretary
WITH A COPY TO
Franklin Resources, Inc.
777 Mariners Island Boulevard
San Mateo, CA 94404
Attention:Karen L. Skidmore, Senior Corporate Counsel
If to the Company:
Glenbrook Life and Annuity Company
Dept. J5B
3100 Sanders Road
Northbrook, IL 60062
Attention: David Stone, Esq.
ARTICLE VIII.
Miscellaneous
8.1 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.
8.2 This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together shall constitute one and the same
instrument.
8.3 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.
8.4 This Agreement shall be construed and the provisions hereof interpreted
under and in accordance with the laws of the State of Florida. It shall also be
subject to the provisions of the federal securities laws and the rules and
regulations thereunder and to any orders of the SEC granting exemptive relief
therefrom and the conditions of such orders. Copies of any such orders shall be
promptly forwarded by the Trust to the Company.
8.5 The parties to this Agreement acknowledge and agree that all
liabilities of the Trust arising, directly or indirectly, under this Agreement,
of any and every nature whatsoever, shall be satisfied solely out of the assets
of the Trust and that no Trustee, officer, agent or holder of shares of
beneficial interest of the Trust shall be personally liable for any such
liabilities.
8.6 Each party shall cooperate with each other party and all appropriate
governmental authorities (including without limitation the SEC, the NASD, 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.
8.7 Each party hereto shall treat as confidential the names and addresses
of the Contract owners and all information reasonably identified as confidential
in writing by any other party hereto, and, except as permitted by this Agreement
or as required by legal process or regulatory authorities, shall not disclose,
disseminate, or utilize such names and addresses and other confidential
information until such time as they may come into the public domain, without the
express written consent of the affected party. Without limiting the foregoing,
no party hereto shall disclose any information that such party has been advised
is proprietary, except such information that such party is required to disclose
by any appropriate governmental authority (including, without limitation, the
SEC, the NASD, and state securities and insurance regulators).
8.8 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.
8.9 The parties to this Agreement acknowledge and agree that this Agreement
shall not be exclusive in any respect, except as provided in Section 1.10.
8.10 Neither this Agreement nor any rights or obligations hereunder may be
assigned by either party without the prior written approval of the other party.
8.11 No provisions of this Agreement may be amended or modified in any
manner except by a written agreement properly authorized and executed by both
parties.
IN WITNESS WHEREOF, the parties have caused their duly authorized officers
to execute this Participation Agreement as of the date and year first above
written. The Company: Glenbrook Life and Annuity Company By its authorized
officer
By:
Name:
Title:
The Trust:
Templeton Variable Products Series Fund
By its authorized officer
By:
Name: Karen L. Skidmore
Title: Assistant Vice President, Assistant Secretary
The Underwriter:
Franklin Templeton Distributors, Inc.
By its authorized officer
By:
Name: Deborah R. Gatzek
Title: Senior Vice President, Assistant Secretary
GLENBROOK LIFE AND ANNUITY COMPANY
LAW AND REGULATION DEPARTMENT
3100 Sanders Road, J5B
Northbrook, Illinois 60062
Direct Dial Number 847 402-2400
Facsimile 847 402-4371
Michael J. Velotta Please direct reply to:
Vice President, Secretary Post Office Box 3005
and General Counsel Northbrook, Illinois 60065-3005
January 21, 2000
TO: GLENBROOK LIFE AND ANNUITY COMPANY
NORTHBROOK, ILLINOIS 60062
FROM: MICHAEL J. VELOTTA
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
RE: FORM N-4 REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT
AND THE INVESTMENT COMPANY ACT OF 1940
FILE NO. 333-00999, 811-7541
With reference to the Registration Statement on Form N-4 filed by Glenbrook Life
and Annuity Company (the "Company"), as depositor, and Glenbrook Life
Multi-Manager Variable Account, as registrant, with the Securities and Exchange
Commission covering the Flexible Premium Deferred Variable Annuity Contracts, I
have examined such documents and such laws as I have considered necessary and
appropriate, and on the basis of such examination, it is my opinion that as of
January 21, 2000:
1. The Company is duly organized and existing under the laws of the State of
Arizona and has been duly authorized to do business by the Director of
Insurance of the State of Arizona.
2. The securities registered by the above Registration Statement when issued
will be valid, legal and binding obligations of the Company.
I hereby consent to the filing of this opinion as an exhibit to the above
referenced Registration Statement and to the use of my name under the caption
"Legal Matters" in the Prospectus constituting a part of the Registration
Statement.
Sincerely,
/s/ MICHAEL J. VELOTTA
- ----------------------
Michael J. Velotta
Vice President, Secretary and
General Counsel
Exhibit 10(a)
Independent Auditors' Consent
We consent to the incorporation by reference in this Post-effective Amendment
No. 7 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 19, 1999, appearing in the Annual Report on Form 10-K of
Glenbrook Life and Annuity Company for the year ended December 31, 1998 and to
the reference to us under the heading "Experts" in the Prospectus, which is part
of such Registration Statement.
We also consent to the use of our report dated February 19, 1999, related to
Glenbrook Life and Annuity Company, and to the use of our report dated March 18,
1999, related to Glenbrook Life Multi-Manager Variable Account, and to the
reference to us under the heading "Experts", which appear in the Statement of
Additional Information, which is part of such Registration Statement.
/s/ DELOITTE & TOUCHE LLP
Chicago, Illinois
January 21, 2000
<PAGE>
Exhibit 10(b)
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. 7 to the Form N-4
Registration Statement of Glenbrook Life Multi-Manager Variable Account (File
No. 333-00999).
/s/ FREEDMAN, LEVY, KROLL & SIMONDS
- ------------------------------------
Washington, D.C.
January 19, 2000
<TABLE>
<CAPTION>
1yr ago: 12/31/98
Date: 12/31/99
VIP II Index 500
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
<S> <C> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.391952 119.16179
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 119.09121 1190.9121
1.000
FORMULA: 1000*(1+T)= 1190.9121
= 1148.412116
T = 14.84% 19.09%
R = 14.84% 19.09%
VIP Overseas
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.090289 141.03797
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 140.96740 1409.6740
1.000
FORMULA: 1000*(1+T)= 1409.6740
= 1367.173988
T = 36.72% 40.97%
R = 36.72% 40.97%
Multiple Strategies
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.048142 110.51993
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 110.44935 1104.4935
1.000
FORMULA: 1000*(1+T)= 1104.4935
= 1061.99352
T = 6.20% 10.45%
R = 6.20% 10.45%
Growth & Income
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 #N/A #N/A
1 FEE 31-Dec-99 0.705758 10.001257 0.07057 0.06
RESULTING VALUE 31-Dec-99 10.001257 #N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
International Equity
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.296622 107.56595
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 107.49538 1074.9538
1.000
FORMULA: 1000*(1+T)= 1074.9538
= 1032.453767
T = 3.25% 7.50%
R = 3.25% 7.50%
Investment Grade Bond
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 10.293942 97.14451
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 97.07394 970.7394
1.000
FORMULA: 1000*(1+T)= 970.7394
= 928.2393893
T = -7.18% -2.93%
R = -7.18% -2.93%
Mid-Cap Equity
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.886708 112.52761
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 112.45703 1124.5703
1.000
FORMULA: 1000*(1+T)= 1124.5703
= 1082.070329
T = 8.21% 12.46%
R = 8.21% 12.46%
Quality Stock Growth
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 #N/A #N/A
1 FEE 31-Dec-99 0.705758 10.001257 0.07057 0.06
RESULTING VALUE 31-Dec-99 10.001257 #N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Small-Cap Equity
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 10.623489 94.13103
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 94.06046 940.6046
1.000
FORMULA: 1000*(1+T)= 940.6046
= 898.1045782
T = -10.19% -5.94%
R = -10.19% -5.94%
Templeton Bond
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.853454 101.48726
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 101.41668 1014.1668
1.000
FORMULA: 1000*(1+T)= 1014.1668
= 971.6667935
T = -2.83% 1.42%
R = -2.83% 1.42%
</TABLE>
<PAGE>
Date: 12/31/99
1 yr ago: 12/31/98
2 yr ago: 12/31/97
3 yr ago: 12/31/96
4 yr Ago: 12/29/95
5 Yr. ago: 12/31/94
<TABLE>
<CAPTION>
VIP II Index 500
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
<S> <C> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 3.066515 326.10308
1 FEE 29-Dec-95 0.705758 4.158670 0.16971
2 FEE 31-Dec-96 0.705758 5.043544 0.13993
3 FEE 31-Dec-97 0.705758 6.623774 0.10655
4 FEE 31-Dec-98 0.705758 8.391952 0.08410
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 325.53222 3255.3222
5.000
FORMULA: 1000*(1+T)= 3255.3222
= 3246.822196
T = 26.56% 26.62%
R = 224.68% 225.53%
VIP Overseas
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 4.765992 209.81991
1 FEE 29-Dec-95 0.705758 5.171176 0.13648
2 FEE 31-Dec-96 0.705758 5.785160 0.12199
3 FEE 31-Dec-97 0.705758 6.371662 0.11077
4 FEE 31-Dec-98 0.705758 7.090289 0.09954
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 209.28055 2092.8055
5.000
FORMULA: 1000*(1+T)= 2092.8055
= 2084.305542
T = 15.82% 15.92%
R = 108.43% 109.28%
Multiple Strategies
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 5.406529 184.96155
1 FEE 29-Dec-95 0.705758 6.486522 0.10880
2 FEE 31-Dec-96 0.705758 7.405574 0.09530
3 FEE 31-Dec-97 0.705758 8.581749 0.08224
4 FEE 31-Dec-98 0.705758 9.048142 0.07800
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 184.52663 1845.2663
5.000
FORMULA: 1000*(1+T)= 1845.2663
= 1836.766329
T = 12.93% 13.03%
R = 83.68% 84.53%
Growth & Income
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 #N/A #N/A
2 FEE 31-Dec-96 0.705758 #N/A #N/A
3 FEE 31-Dec-97 0.705758 #N/A #N/A
4 FEE 31-Dec-98 0.705758 #N/A #N/A
5 FEE 31-Dec-99 0.705758 10.001257 0.07057 0.02
RESULTING VALUE 31-Dec-99 10.001257 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
International Equity
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 #N/A #N/A
2 FEE 31-Dec-96 0.705758 7.348192 0.09605
3 FEE 31-Dec-97 0.705758 8.487245 0.08316
4 FEE 31-Dec-98 0.705758 9.296622 0.07592
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Investment Grade Bond
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 8.748645 0.08067
2 FEE 31-Dec-96 0.705758 8.843818 0.07980
3 FEE 31-Dec-97 0.705758 9.517543 0.07415
4 FEE 31-Dec-98 0.705758 10.293942 0.06856
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Mid-Cap Equity
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 6.042801 0.11679
2 FEE 31-Dec-96 0.705758 6.932216 0.10181
3 FEE 31-Dec-97 0.705758 8.376323 0.08426
4 FEE 31-Dec-98 0.705758 8.886708 0.07942
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Quality Stock Growth
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 #N/A #N/A
2 FEE 31-Dec-96 0.705758 #N/A #N/A
3 FEE 31-Dec-97 0.705758 #N/A #N/A
4 FEE 31-Dec-98 0.705758 #N/A #N/A
5 FEE 31-Dec-99 0.705758 10.001257 0.07057 0.02
RESULTING VALUE 31-Dec-99 10.001257 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Small-Cap Equity
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 #N/A #N/A
2 FEE 31-Dec-96 0.705758 #N/A #N/A
3 FEE 31-Dec-97 0.705758 12.237380 0.05767
4 FEE 31-Dec-98 0.705758 10.623489 0.06643
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Templeton Bond
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 7.464677 133.96427
1 FEE 29-Dec-95 0.705758 8.360830 0.08441
2 FEE 31-Dec-96 0.705758 9.177253 0.07690
3 FEE 31-Dec-97 0.705758 9.299915 0.07589
4 FEE 31-Dec-98 0.705758 9.853454 0.07163
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 133.58486 1335.8486
5.000
FORMULA: 1000*(1+T)= 1335.8486
= 1327.348641
T = 5.83% 5.96%
R = 32.73% 33.58%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
1yr ago: 12/31/98
Date: 12/31/99
VIP II Index 500
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
<S> <C> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.428421 118.64619
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 118.57561 1185.7561
1.000
FORMULA: 1000*(1+T)= 1185.7561
= 1143.256095
T = 14.33% 18.58%
R = 14.33% 18.58%
VIP Overseas
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.120656 140.43650
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 140.36592 1403.6592
1.000
FORMULA: 1000*(1+T)= 1403.6592
= 1361.159233
T = 36.12% 40.37%
R = 36.12% 40.37%
Multiple Strategies
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.088021 110.03496
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 109.96438 1099.6438
1.000
FORMULA: 1000*(1+T)= 1099.6438
= 1057.143812
T = 5.71% 9.96%
R = 5.71% 9.96%
Growth & Income
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 #N/A #N/A
1 FEE 31-Dec-99 0.705758 10.001738 0.07056 0.06
RESULTING VALUE 31-Dec-99 10.001738 #N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
International Equity
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.337606 107.09383
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 107.02326 1070.2326
1.000
FORMULA: 1000*(1+T)= 1070.2326
= 1027.732553
T = 2.77% 7.02%
R = 2.77% 7.02%
Investment Grade Bond
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 10.339340 96.71797
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 96.64740 966.4740
1.000
FORMULA: 1000*(1+T)= 966.4740
= 923.9739655
T = -7.60% -3.35%
R = -7.60% -3.35%
Mid-Cap Equity
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.925878 112.03380
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 111.96322 1119.6322
1.000
FORMULA: 1000*(1+T)= 1119.6322
= 1077.132208
T = 7.71% 11.96%
R = 7.71% 11.96%
Quality Stock Growth
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 #N/A #N/A
1 FEE 31-Dec-99 0.705758 10.001738 0.07056 0.06
RESULTING VALUE 31-Dec-99 10.001738 #N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Small-Cap Equity
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 10.670336 93.71776
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 93.64719 936.4719
1.000
FORMULA: 1000*(1+T)= 936.4719
= 893.9718531
T = -10.60% -6.35%
R = -10.60% -6.35%
Templeton Bond
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.896922 101.04152
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 100.97094 1009.7094
1.000
FORMULA: 1000*(1+T)= 1009.7094
= 967.2093996
T = -3.28% 0.97%
R = -3.28% 0.97%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Date: 12/31/99
1 yr ago: 12/31/98
2 yr ago: 12/31/97
3 yr ago: 12/31/96
4 yr Ago: 12/29/95
5 Yr. ago: 12/31/94
VIP II Index 500
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
<S> <C> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 3.133491 319.13288
1 FEE 29-Dec-95 0.705758 4.231349 0.16679
2 FEE 31-Dec-96 0.705758 5.109367 0.13813
3 FEE 31-Dec-97 0.705758 6.681393 0.10563
4 FEE 31-Dec-98 0.705758 8.428421 0.08374
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 318.56801 3185.6801
5.000
FORMULA: 1000*(1+T)= 3185.6801
= 3177.180133
T = 26.01% 26.08%
R = 217.72% 218.57%
VIP Overseas
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 4.870863 205.30243
1 FEE 29-Dec-95 0.705758 5.261956 0.13412
2 FEE 31-Dec-96 0.705758 5.860956 0.12042
3 FEE 31-Dec-97 0.705758 6.427009 0.10981
4 FEE 31-Dec-98 0.705758 7.120656 0.09911
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 204.76839 2047.6839
5.000
FORMULA: 1000*(1+T)= 2047.6839
= 2039.183853
T = 15.32% 15.41%
R = 103.92% 104.77%
Multiple Strategies
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 5.526810 180.93620
1 FEE 29-Dec-95 0.705758 6.601814 0.10690
2 FEE 31-Dec-96 0.705758 7.503950 0.09405
3 FEE 31-Dec-97 0.705758 8.657583 0.08152
4 FEE 31-Dec-98 0.705758 9.088021 0.07766
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 180.50549 1805.0549
5.000
FORMULA: 1000*(1+T)= 1805.0549
= 1796.554921
T = 12.43% 12.54%
R = 79.66% 80.51%
Growth & Income
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 #N/A #N/A
2 FEE 31-Dec-96 0.705758 #N/A #N/A
3 FEE 31-Dec-97 0.705758 #N/A #N/A
4 FEE 31-Dec-98 0.705758 #N/A #N/A
5 FEE 31-Dec-99 0.705758 10.001738 0.07056 0.02
RESULTING VALUE 31-Dec-99 10.001738 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
International Equity
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 #N/A #N/A
2 FEE 31-Dec-96 0.705758 7.445789 0.09479
3 FEE 31-Dec-97 0.705758 8.562229 0.08243
4 FEE 31-Dec-98 0.705758 9.337606 0.07558
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Investment Grade Bond
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 8.904198 0.07926
2 FEE 31-Dec-96 0.705758 8.961311 0.07876
3 FEE 31-Dec-97 0.705758 9.601663 0.07350
4 FEE 31-Dec-98 0.705758 10.339340 0.06826
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Mid-Cap Equity
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 6.150201 0.11475
2 FEE 31-Dec-96 0.705758 7.024299 0.10047
3 FEE 31-Dec-97 0.705758 8.450340 0.08352
4 FEE 31-Dec-98 0.705758 8.925878 0.07907
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Quality Stock Growth
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 #N/A #N/A
2 FEE 31-Dec-96 0.705758 #N/A #N/A
3 FEE 31-Dec-97 0.705758 #N/A #N/A
4 FEE 31-Dec-98 0.705758 #N/A #N/A
5 FEE 31-Dec-99 0.705758 10.001738 0.07056 0.02
RESULTING VALUE 31-Dec-99 10.001738 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Small-Cap Equity
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 #N/A #N/A
2 FEE 31-Dec-96 0.705758 #N/A #N/A
3 FEE 31-Dec-97 0.705758 12.345578 0.05717
4 FEE 31-Dec-98 0.705758 10.670336 0.06614
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Templeton Bond
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 7.629980 131.06194
1 FEE 29-Dec-95 0.705758 8.511982 0.08291
2 FEE 31-Dec-96 0.705758 9.298989 0.07590
3 FEE 31-Dec-97 0.705758 9.381963 0.07522
4 FEE 31-Dec-98 0.705758 9.896922 0.07131
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 130.68602 1306.8602
5.000
FORMULA: 1000*(1+T)= 1306.8602
= 1298.360213
T = 5.36% 5.50%
R = 29.84% 30.69%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
1yr ago: 12/31/98
Date: 12/31/99
VIP II Index 500
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 31-Dec-98 1000.00 8.410165 118.90373
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 118.83316 1188.3316
1.000
FORMULA: 1000*(1+T)= 1188.3316
= 1145.831556
T = 14.58% 18.83%
R = 14.58% 18.83%
VIP Overseas
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.105457 140.73690
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 140.66633 1406.6633
1.000
FORMULA: 1000*(1+T)= 1406.6633
= 1364.163254
T = 36.42% 40.67%
R = 36.42% 40.67%
Multiple Strategies
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.068066 110.27710
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 110.20652 1102.0652
1.000
FORMULA: 1000*(1+T)= 1102.0652
= 1059.565219
T = 5.96% 10.21%
R = 5.96% 10.21%
Growth & Income
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 #N/A #N/A
1 FEE 31-Dec-99 0.705758 10.001497 0.07057 0.06
RESULTING VALUE 31-Dec-99 10.001497 #N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
International Equity
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.317091 107.32964
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 107.25906 1072.5906
1.000
FORMULA: 1000*(1+T)= 1072.5906
= 1030.090618
T = 3.01% 7.26%
R = 3.01% 7.26%
Investment Grade Bond
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 10.316614 96.93103
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 96.86045 968.6045
1.000
FORMULA: 1000*(1+T)= 968.6045
= 926.1045217
T = -7.39% -3.14%
R = -7.39% -3.14%
Mid-Cap Equity
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.906274 112.28040
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 112.20982 1122.0982
1.000
FORMULA: 1000*(1+T)= 1122.0982
= 1079.598234
T = 7.96% 12.21%
R = 7.96% 12.21%
Quality Stock Growth
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 #N/A #N/A
1 FEE 31-Dec-99 0.705758 10.001497 0.07057 0.06
RESULTING VALUE 31-Dec-99 10.001497 #N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Small-Cap Equity
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 10.646895 93.92410
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 93.85352 938.5352
1.000
FORMULA: 1000*(1+T)= 938.5352
= 896.0352134
T = -10.40% -6.15%
R = -10.40% -6.15%
Templeton Bond
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.875160 101.26418
1 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.06
RESULTING VALUE 31-Dec-99 10.000000 101.19361 1011.9361
1.000
FORMULA: 1000*(1+T)= 1011.9361
= 969.4360627
T = -3.06% 1.19%
R = -3.06% 1.19%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Date: 12/31/99
1 yr ago: 12/31/98
2 yr ago: 12/31/97
3 yr ago: 12/31/96
4 yr Ago: 12/29/95
5 Yr. ago: 12/31/94
VIP II Index 500
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 31-Dec-94 1000.00 3.099820 322.59938
1 FEE 29-Dec-95 0.705758 4.194848 0.16824
2 FEE 31-Dec-96 0.705758 5.076346 0.13903
3 FEE 31-Dec-97 0.705758 6.652518 0.10609
4 FEE 31-Dec-98 0.705758 8.410165 0.08392
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 322.03152 3220.3152
5.000
FORMULA: 1000*(1+T)= 3220.3152
= 3211.815222
T = 26.28% 26.35%
R = 221.18% 222.03%
VIP Overseas
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 4.818142 207.54889
1 FEE 29-Dec-95 0.705758 5.216367 0.13530
2 FEE 31-Dec-96 0.705758 5.822934 0.12120
3 FEE 31-Dec-97 0.705758 6.399276 0.11029
4 FEE 31-Dec-98 0.705758 7.105457 0.09933
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 207.01220 2070.1220
5.000
FORMULA: 1000*(1+T)= 2070.1220
= 2061.62196
T = 15.57% 15.66%
R = 106.16% 107.01%
Multiple Strategies
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 5.466345 182.93759
1 FEE 29-Dec-95 0.705758 6.543926 0.10785
2 FEE 31-Dec-96 0.705758 7.454610 0.09467
3 FEE 31-Dec-97 0.705758 8.619588 0.08188
4 FEE 31-Dec-98 0.705758 9.068066 0.07783
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 182.50479 1825.0479
5.000
FORMULA: 1000*(1+T)= 1825.0479
= 1816.547872
T = 12.68% 12.79%
R = 81.65% 82.50%
Growth & Income
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 #N/A #N/A
2 FEE 31-Dec-96 0.705758 #N/A #N/A
3 FEE 31-Dec-97 0.705758 #N/A #N/A
4 FEE 31-Dec-98 0.705758 #N/A #N/A
5 FEE 31-Dec-99 0.705758 10.001497 0.07057 0.02
RESULTING VALUE 31-Dec-99 10.001497 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
International Equity
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 #N/A #N/A
2 FEE 31-Dec-96 0.705758 7.396829 0.09541
3 FEE 31-Dec-97 0.705758 8.524658 0.08279
4 FEE 31-Dec-98 0.705758 9.317091 0.07575
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Investment Grade Bond
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 8.826070 0.07996
2 FEE 31-Dec-96 0.705758 8.902367 0.07928
3 FEE 31-Dec-97 0.705758 9.559508 0.07383
4 FEE 31-Dec-98 0.705758 10.316614 0.06841
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Mid-Cap Equity
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 6.096266 0.11577
2 FEE 31-Dec-96 0.705758 6.978106 0.10114
3 FEE 31-Dec-97 0.705758 8.413255 0.08389
4 FEE 31-Dec-98 0.705758 8.906274 0.07924
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Quality Stock Growth
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 #N/A #N/A
2 FEE 31-Dec-96 0.705758 #N/A #N/A
3 FEE 31-Dec-97 0.705758 #N/A #N/A
4 FEE 31-Dec-98 0.705758 #N/A #N/A
5 FEE 31-Dec-99 0.705758 10.001497 0.07057 0.02
RESULTING VALUE 31-Dec-99 10.001497 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Small-Cap Equity
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.705758 #N/A #N/A
2 FEE 31-Dec-96 0.705758 #N/A #N/A
3 FEE 31-Dec-97 0.705758 12.291370 0.05742
4 FEE 31-Dec-98 0.705758 10.646895 0.06629
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A #N/A
Templeton Bond
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 7.546868 132.50530
1 FEE 29-Dec-95 0.705758 8.436059 0.08366
2 FEE 31-Dec-96 0.705758 9.237913 0.07640
3 FEE 31-Dec-97 0.705758 9.340843 0.07556
4 FEE 31-Dec-98 0.705758 9.875160 0.07147
5 FEE 31-Dec-99 0.705758 10.000000 0.07058 0.02
RESULTING VALUE 31-Dec-99 10.000000 132.12764 1321.2764
5.000
FORMULA: 1000*(1+T)= 1321.2764
= 1312.776414
T = 5.59% 5.73%
R = 31.28% 32.13%
</TABLE>
