SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form N-8B-2
REGISTRATION STATEMENT OF UNIT INVESTMENT
TRUSTS WHICH ARE CURRENTLY
ISSUING SECURITIES
Pursuant to Section 8(b) of the
Investment Company Act of 1940
NYLIAC CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
SEPARATE ACCOUNT - I
51 Madison Avenue
New York, New York 10010
Issuer of periodic payment plan certificates
only for purposes of information provided herein
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I.
ORGANIZATION AND GENERAL INFORMATION
1. (A) FURNISH NAME OF THE TRUST AND THE INTERNAL REVENUE SERVICE EMPLOYER
IDENTIFICATION NUMBER.
NYLIAC CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE SEPARATE ACCOUNT
- I (the "Separate Account"). The Separate Account has no Internal
Revenue Service Employer Identification Number.
(B) FURNISH TITLE OF EACH CLASS OR SERIES OF SECURITIES ISSUED BY THE
TRUST.
Flexible Premium Corporate Sponsored Variable Universal Life
Insurance Policies (the "Policies")
2. FURNISH NAME AND PRINCIPAL BUSINESS ADDRESS AND ZIP CODE AND THE
INTERNAL REVENUE SERVICE EMPLOYER IDENTIFICATION NUMBER OF EACH
DEPOSITOR OF THE TRUST.
New York Life Insurance and Annuity Corporation
("NYLIAC" or the "Company")
51 Madison Avenue
New York, New York 10010
Internal Revenue Service Employer Identification
Number: 13-3044743
3. FURNISH NAME AND PRINCIPAL BUSINESS ADDRESS AND ZIP CODE AND THE
INTERNAL REVENUE SERVICE EMPLOYER IDENTIFICATION NUMBER OF EACH
CUSTODIAN OR TRUSTEE OF THE TRUST INDICATING FOR WHICH CLASS OR SERIES
OF SECURITIES EACH CUSTODIAN OR TRUSTEE IS ACTING.
Not applicable.
4. FURNISH NAME AND PRINCIPAL BUSINESS ADDRESS AND ZIP CODE AND THE
INTERNAL REVENUE SERVICE EMPLOYER IDENTIFICATION NUMBER OF EACH
PRINCIPAL UNDERWRITER CURRENTLY DISTRIBUTING SECURITIES OF THE
TRUST.
Distribution of the Policies has not commenced. When
distribution commences, the principal underwriter will be:
NYLIFE Distributors Inc., 51 Madison Avenue, New York, New York
10010
Internal Revenue Service Employer Identification Number:
13-3741759
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5. FURNISH NAME OF STATE OR OTHER SOVEREIGN POWER, THE LAWS OF WHICH
GOVERN WITH RESPECT TO THE ORGANIZATION OF THE TRUST.
Delaware
6. (A) FURNISH THE DATES OF EXECUTION AND TERMINATION OF ANY INDENTURE OR
AGREEMENT CURRENTLY IN EFFECT UNDER THE TERMS OF WHICH THE TRUST WAS
ORGANIZED AND ISSUED OR PROPOSES TO ISSUE SECURITIES.
The Separate Account was established on May 24, 1996 under Delaware
law pursuant to resolutions of the NYLIAC Board of Directors. The
Separate Account will continue in existence until the Board of
Directors directs that it be terminated. The Policies will be issued
pursuant to the resolutions.
(B) FURNISH THE DATES OF EXECUTION AND TERMINATION OF ANY INDENTURE OR
AGREEMENT CURRENTLY IN EFFECT PURSUANT TO WHICH THE PROCEEDS OF
PAYMENTS ON SECURITIES ISSUED OR TO BE ISSUED BY THE TRUST ARE HELD
BY THE CUSTODIAN OR TRUSTEE.
Not applicable.
7. FURNISH IN CHRONOLOGICAL ORDER THE FOLLOWING INFORMATION WITH RESPECT
TO EACH CHANGE OF NAME OF THE TRUST SINCE JANUARY 1, 1930.
The name of the Separate Account has never changed.
8. STATE THE DATE ON WHICH THE FISCAL YEAR OF THE TRUST ENDS.
December 31
MATERIAL LITIGATION
9. FURNISH A DESCRIPTION OF ANY PENDING LEGAL PROCEEDINGS, MATERIAL WITH
RESPECT TO THE SECURITY HOLDERS OF THE TRUST BY REASON OF THE NATURE OF
THE CLAIM OR THE AMOUNT THEREOF, TO WHICH THE TRUST, THE DEPOSITOR, OR
THE PRINCIPAL UNDERWRITER IS A PARTY OR OF WHICH THE ASSETS OF THE
TRUST ARE THE SUBJECT, INCLUDING THE SUBSTANCE OF THE CLAIMS INVOLVED
IN SUCH PROCEEDING AND THE TITLE OF THE PROCEEDING. FURNISH A SIMILAR
STATEMENT WITH RESPECT TO ANY PENDING ADMINISTRATIVE PROCEEDING
COMMENCED BY A GOVERNMENTAL AUTHORITY OR ANY SUCH PROCEEDING OR LEGAL
PROCEEDING KNOWN TO BE CONTEMPLATED BY A GOVERNMENTAL AUTHORITY.
INCLUDE ANY PROCEEDING WHICH, ALTHOUGH IMMATERIAL ITSELF, IS
REPRESENTATIVE OF, OR ONE OF, A GROUP WHICH IN THE AGGREGATE IS
MATERIAL.
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The New York State Supreme Court on January 31, 1996 approved the
settlement of a consolidated nationwide class action lawsuit alleging certain
sales practice claims against NYLIAC and New York Life. In entering into the
settlement, NYLIAC specifically denied any wrongdoing. The class consists of
approximately three million policyowners who purchased whole life or
universal life policies from January 1, 1982 through December 31, 1994.
Appeals from the order may be filed within the prescribed statutory period.
Under the terms of the settlement, the class members receive benefits
intended to address the issues presented in the case or an opportunity to
redress individual claims in an alternative dispute resolution process. The
settlement (including awards made in the alternative dispute resolution
process) will not have a material adverse effect upon NYLIAC's financial
position, and NYLIAC believes that, after consideration of provisions made,
the settlement will not have a material adverse effect on operating results.
NYLIAC, its affiliates and its agents have been released from liability to
class members for transactions during the class period relating to the sales
practice claims in the lawsuits.
There are also actions in various jurisdictions by individual
policyowners, many of whom excluded themselves from the settlement of the
nationwide class action. Most of these actions seek substantial or
unspecified compensatory and punitive damages.
NYLIAC is also a defendant in other actions arising from its insurance and
investment operations, including actions involving retail sales practices.
Most of these actions also seek substantial or unspecified compensatory and
punitive damages. NYLIAC is also from time to time involved as a party in
various governmental, administrative and investigative proceedings and
inquiries.
Given the uncertain nature of litigation and regulatory inquiries, the
outcome of the above and other actions pending against NYLIAC cannot be
predicted. NYLIAC nevertheless believes that the ultimate outcome of all
pending litigation should not have a material adverse effect on NYLIAC's
financial position; however, it is possible that settlements or adverse
determinations in one or more actions or other proceedings in the future
could have a material adverse effect on NYLIAC's operating results for a
given year.
II.
GENERAL DESCRIPTION OF THE TRUST
AND SECURITIES OF THE TRUST
GENERAL INFORMATION CONCERNING THE SECURITIES
OF THE TRUST AND THE RIGHTS OF HOLDERS
10. FURNISH A BRIEF STATEMENT WITH RESPECT TO THE FOLLOWING MATTERS FOR
EACH CLASS OR SERIES OF SECURITIES ISSUED BY THE TRUST:
(A) WHETHER THE SECURITIES ARE OF THE REGISTERED OR BEARER TYPE.
The Policies which are to be issued are of the registered type
insofar as the Policies are personal to the Policyowners and the
records concerning the Policyowners are maintained by or on behalf
of the Company. (Terms such as "Policyowners" that are capitalized
but not defined herein have the same meaning as in the Registration
Statement for the Policies on Form S-6.)
(B) WHETHER THE SECURITIES ARE OF THE CUMULATIVE OR DISTRIBUTIVE TYPE.
The Policies are of the cumulative type, providing for no
distribution of income, dividends, or capital gains. Such amounts
are not separately identifiable but are reflected in the Cash Value
under a Policy at any time.
(C) THE RIGHTS OF SECURITY HOLDERS WITH RESPECT TO WITHDRAWAL OR
REDEMPTION.
A Policy may be returned at the election of the Policyowner within
20 days (10 days in New York) after the Policyowner receives it.
Premium payments will be allocated to the Company's General Account
until the Policy is issued. On the Policy Date, Premiums paid less
the sale expenses, premium tax and federal tax charges ("Net
Premiums") will be transferred to the Cash Management Division until
20 days after the Policy Delivery Date (10 days in New York). If the
Policy is
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returned, NYLIAC will refund an amount equal to the greater of the
Policy's Cash Value as of the date the Policy is returned or the
premiums paid, less loans and withdrawals.
A Policyowner may make a partial withdrawal or surrender the Policy
to receive part or all of the Policy's Cash Surrender Value at any
time while the Insured is living. The Cash Surrender Value is the
Cash Value less any applicable surrender charge. Upon a full
surrender, the Cash Surrender Value will be reduced by any
outstanding Policy Debt. Partial withdrawals are not permitted
during the first Policy Year when Life Insurance Benefit Option 1 is
in effect. The minimum partial withdrawal is $500, and at least $500
of Cash Surrender Value, plus any Policy Debt, must remain following
the withdrawal. A partial withdrawal will be prohibited if it would
cause the Face Amount to drop below $25,000. Partial withdrawals
will cause a reduction in the Policy's Face Amount when Life
Insurance Benefit Option 1 is in effect. The withdrawal will be made
on a pro-rata basis from the Fixed Account and each Investment
Division, unless the Policyowner otherwise indicates. Partial
withdrawals and surrenders may be subject to charges.
Since the Policyowner assumes the investment risk with respect to
amounts allocated to the Separate Account and because surrenders are
subject to a surrender charge, the total amount paid upon surrender
of the Policy (taking into account any prior withdrawals) may be
more or less than the total purchase payments made. NYLIAC will
charge a processing fee equal to the lesser of $25 or 2% of the
amount withdrawn for each partial withdrawal. This fee will be
deducted from the Fixed Account and each Investment Division on a
pro-rata basis. The Cash Value and the Cash Surrender Value will be
reduced by the amount of any partial withdrawal.
(D) THE RIGHTS OF SECURITY HOLDERS WITH RESPECT TO CONVERSION, TRANSFER,
PARTIAL REDEMPTION, AND SIMILAR MATTERS.
At any time within 24 months of the Policy Delivery Date, the
Policyowner may exchange the Policy for a Policy on a permanent plan
of life insurance which the Company is offering for this purpose.
NYLIAC will not require evidence of insurability. The date of
exchange will be the later of (a) the Business Day the Policyowner
sends the Company the Policy along with a signed request; or (b) the
Business Day NYLIAC receives
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the necessary payment for the exchange, if any, at its Service Office
or such other location that NYLIAC indicates in writing. Upon an
exchange of the Policy, all riders and benefits will end. The
replacement policy will have the same Policy Date, issue age, risk
classification and initial Face Amount as the original Policy. In order
to exchange the Policy, NYLIAC will require: (a) that the Policy be in
effect on the date of exchange; (b) repayment of any unpaid loan; and
(c) an adjustment, if any, for differences in premiums and cash values
under the Policy and the new policy.
A Policyowner may obtain Policy loans, as described in Item 21.
A Policyowner may make surrenders and withdrawals as described in Item
10(c).
A Policyowner may allocate premiums (described in Item 10(I)) among the
Investment Divisions of the Separate Account and the Fixed Account, as
described in Item 16.
All or part of the Cash Value may be transferred among Investment
Divisions of the Separate Account or to the Fixed Account. The minimum
value of Accumulation Units that may be transferred between Investment
Divisions, or to the Fixed Account, is the lesser of (i) $500 or (ii)
the value of the Accumulation Units in the Investment Division from
which the transfer is being made. If, after an ordered transfer, the
value of the remaining Accumulation Units in an Investment Division or
the Fixed Account Value would be less than $500, the entire value will
be transferred. There is no charge for the first twelve transfers in
any one Policy Year. NYLIAC reserves the right to charge $30 for each
transfer in excess of twelve per year.
Amounts may be transferred from the Fixed Account to the Separate
Account Investment Divisions once each Policy Year, subject to the
following conditions:
1. An amount not greater than 10% of the Fixed Account Value at the
beginning of the Policy Year may be transferred during that
Policy Year.
2. The minimum amount that may be transferred is $500, unless the
Company agrees otherwise.
3. If, after a contemplated transfer, the remaining values in the
Fixed Account would be less than $500, that amount must be
included in the transfer.
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Transfer requests must be in writing on a form approved by
NYLIAC.
(E) IF THE TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES, THE
SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT WITH RESPECT
TO LAPSES OR DEFAULTS BY SECURITY HOLDERS IN MAKING PRINCIPAL PAYMENTS,
AND WITH RESPECT TO REINSTATEMENT.
The Policy does not automatically terminate for failure to pay planned
premiums since payments, other than the initial premium, are not
specifically required. Rather, if on a Monthly Deduction Day, the Cash
Surrender Value is less than the Monthly Deduction Charge for the next
Policy month or there is an excess Policy loan, the Policy will
continue for a late period of 62 days after that Monthly Deduction Day.
NYLIAC will mail a notice to the Policyowner at his or her last known
address, and a copy to the last known assignee on the Company's records
at least 31 days before the end of the late period which sets forth the
premium necessary to cover the overdue monthly deduction and/or excess
Policy loan. During the grace period, the Policy remains in force. If
the Company does not receive the required payment before the end of the
late period, the Policy will end and there will be no Cash Value or
life insurance benefit. If the Insured dies during the late period,
NYLIAC will pay the Death Benefit. However, these proceeds will be
reduced by the amount of any Monthly Deduction Charges for the full
Policy month or months that run from the beginning of the late period
through the Policy month in which the Insured dies or by the amount of
the excess Policy loan.
For a period of five (5) years after termination, the Policyowner can
request that NYLIAC reinstate the Policy during the Insured's lifetime.
NYLIAC will not reinstate the Policy if it has been returned for its
Cash Surrender Value.
Before NYLIAC will reinstate the Policy, NYLIAC must receive the
following:
o A payment in an amount which is sufficient to keep the Policy in
force for at least 2 months. This payment will be in lieu of the
payment of all premiums in arrears.
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o Any unpaid loan must also be repaid, together with loan interest
at 6% compounded once each year from the end of the late period
to the date of reinstatement. If a loan interest rate of less
than 6% is in effect when the Policy is reinstated, the interest
rate for any unpaid loan at the time of reinstatement will be
the same as the loan rate.
o Evidence of insurability satisfactory to NYLIAC if the
reinstatement is requested more than 31 days after termination.
If NYLIAC does reinstate the Policy, the Face Amount for the reinstated
Policy will be the same as it would have been if the Policy had not
terminated. The effective date of reinstatement will be the Monthly
Deduction Day on or following the date NYLIAC approves the request for
reinstatement.
(F) THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT WITH
RESPECT TO VOTING RIGHTS, TOGETHER WITH THE NAMES OF ANY PERSONS OTHER
THAN SECURITY HOLDERS GIVEN THE RIGHT TO EXERCISE VOTING RIGHTS
PERTAINING TO THE TRUST'S SECURITIES OR THE UNDERLYING SECURITIES AND
THE RELATIONSHIP OF SUCH PERSONS TO THE TRUST.
To the extent required by law, the Portfolio shares held in the
Separate Account will be voted by NYLIAC at any shareholder meetings of
a Fund in accordance with instructions received from persons having
voting interests in the corresponding Investment Division. If, however,
the Investment Company Act of 1940 (the "1940 Act") or any regulation
thereunder should change and, as a result, NYLIAC determines that it is
allowed to vote the Portfolio shares in its own right, NYLIAC may elect
to do so.
The number of votes which are available to a Policyowner will be
calculated separately for each Investment Division of the Separate
Account to which his or her Accumulation Value is allocated. That
number will be determined by dividing the Accumulation Value
attributable to an Investment Division by the net asset value per share
of the applicable Eligible Portfolios. Voting instructions will be
solicited by written communication prior to such meeting in accordance
with procedures established by the applicable Fund.
Fund shares as to which no timely instructions are received will be
voted in proportion to the voting
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instructions which are received with respect to all Policies
participating in that Investment Division.
(G) WHETHER SECURITY HOLDERS MUST BE GIVEN NOTICE OF ANY CHANGE IN:
(1) THE COMPOSITION OF THE ASSETS OF THE TRUST.
The Separate Account currently has eleven Investment Divisions, ten of
which invest premiums solely in the corresponding Portfolios of the MFA
Fund and one of which invests premiums solely in the corresponding
Portfolio of the Acacia Fund. NYLIAC may also establish additional
Investment Divisions for the Separate Account. Each additional
Investment Division will purchase shares in a new portfolio of either
Fund or in another mutual fund. New Investment Divisions may be
established when, in the sole discretion of NYLIAC, marketing, tax,
investment or other conditions so warrant. Any new Investment Divisions
will be made available to existing Policyowners on a basis to be
determined by NYLIAC. NYLIAC may also eliminate one or more Investment
Divisions, if, in its sole discretion, marketing, tax, investment or
other conditions warrant.
In the event of any such substitution or change, NYLIAC may, by
appropriate endorsement, make such changes in the Policies as may be
necessary or appropriate to reflect such substitution or change. If
deemed to be in the best interests of persons having voting rights
under the Policies, the Separate Account may be operated as a
management company under the 1940 Act, may be deregistered under such
Act in the event such registration is no longer required, or may be
combined with one or more other separate accounts.
NYLIAC retains the right, subject to any applicable law, to make
additions to, deletions from, or substitutions for, the Portfolio
shares held by any Investment Division. NYLIAC reserves the right to
eliminate the shares of any of the Portfolios and to substitute shares
of another Portfolio of either of the Funds, or of other registered
open-end management investment companies, if the shares of the
Portfolios are no longer available for investment or, if in NYLIAC's
judgment, investment in any Portfolio would become inappropriate in
view of the purposes of the Separate Account. To the extent required by
the 1940 Act, substitutions of shares attributable to a Policyowner's
interest in an Investment Division will not be made until the
Policyowner has been notified of the change. Nothing contained herein
shall prevent the
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Separate Account from purchasing other securities for other series or
classes of policies, or from effecting a conversion between series or
classes of policies on the basis of requests made by Policyowners.
(2) THE TERMS AND CONDITIONS OF THE SECURITIES ISSUED BY THE TRUST.
No changes in terms and conditions of a Policy that affect a
Policyowner's rights will be made without notice to the Policyowner,
except to the extent necessary to comply with changes in the law as
described in Item 10(I)(2) below.
(3) THE PROVISIONS OF ANY INDENTURE OR AGREEMENT OF THE TRUST.
Not applicable.
(4) THE IDENTITY OF THE DEPOSITOR, TRUSTEE OR CUSTODIAN.
NYLIAC is the depositor of the Separate Account. There is no provision
requiring notice to, or consent of, Policyowners with respect to a change
in the identity of the depositor.
(H) WHETHER THE CONSENT OF SECURITY HOLDERS IS REQUIRED IN ORDER FOR ACTION
TO BE TAKEN CONCERNING ANY CHANGE IN:
(1) THE COMPOSITION OF THE ASSETS OF THE TRUST.
Consent of Policyowners is not required when changing the underlying
securities of the Separate Account. However, to change such securities,
approval of the Commission is required by section 26(b) of the 1940 Act.
Except as permitted by Federal or state law or regulation, no action will
be taken by NYLIAC which will adversely affect the rights of Policyowners
without their consent.
(2) THE TERMS AND CONDITIONS OF THE SECURITIES ISSUED BY THE TRUST.
No change in the terms and conditions of a Policy can be made without
consent of the Policyowners.
(3) THE PROVISIONS OF ANY INDENTURE OR AGREEMENT OF THE TRUST.
Not applicable.
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(4) THE IDENTITY OF THE DEPOSITOR, TRUSTEE OR CUSTODIAN.
See Item 10(g)(4).
(I) ANY OTHER PRINCIPAL FEATURE OF THE SECURITIES ISSUED BY THE TRUST OR
ANY OTHER PRINCIPAL RIGHT, PRIVILEGE OR OBLIGATION NOT COVERED BY
SUBDIVISIONS (A) TO (G) OR BY ANY OTHER ITEM IN THIS FORM.
(1) Premium Payments.
The Policyowner selects a planned premium schedule in the
Application. The amount of the planned premium is shown on the
Policy Data Page but the Policyowner is not bound by an
inflexible premium schedule. While the Insured is living,
unplanned premium payments may be made at any time prior to the
Policy Anniversary on which the Insured is age 95, subject to
certain restrictions. If an unplanned premium payment would
result in an increase in the life insurance benefit greater than
the increase in the Cash Value, NYLIAC reserves the right to
require proof of insurability before accepting that payment and
applying it to the Policy. NYLIAC also reserves the right to
limit the number and amount of any unplanned premiums.
There is no penalty if the planned premium is not paid, nor does
payment of this amount guarantee coverage for any period of
time. Instead, the duration of the Policy depends upon the
Policy's Cash Surrender Value, less any Policy Debt. Even if
planned premiums are paid, the Policy terminates when the Cash
Surrender Value less any Policy Debt becomes insufficient to pay
certain monthly charges and a grace period expires without
sufficient payment.
(2) General Description of Policy Benefits.
The Policy provides for a Death Benefit payable to the named
Beneficiary when the Insured dies. The Death Benefit will be
paid in cash or applied under one or more of our payment options
described in (4) below. The amount of the Death Benefit is
determined by whether the Policyowner has chosen Life Insurance
Benefit Option 1 or Life Insurance Benefit Option 2. Option 1
provides a life insurance benefit equal to the greater of (a)
the Face Amount and (b) the Cash Value times the percentage in
the appropriate Code Section 7702 table. Option 2 provides a
life insurance benefit equal to the greater of (a) the Face
Amount plus the
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Cash Value and (b) the Cash Value times the percentage in the
appropriate Code Section 7702 table.
Under either Life Insurance Benefit Option, the Death Benefit
cannot be less than the Policy's Cash Value times a percentage
determined from the appropriate Code Section 7702 table. The
Policyowner may choose either the "CVAT" table or the "Corridor"
table before the Policy is issued. The Death Benefit will vary
depending on which table is selected. If the Policyowner does
not choose a table, the Corridor table will be used. Once the
Policy is issued, the Policyowner may not change to a different
table.
Under Code Section 7702, a Policy will be treated as life
insurance for federal tax purposes if at all times it meets
either (1) a "cash value accumulation" test or (2) both a
"guideline premium" test and a "cash value corridor" test. The
CVAT table is designed to meet the cash value accumulation test,
while the Corridor table is designed to meet the cash value
corridor test. A Policy using the Corridor table must also
satisfy the "guideline premium" test.
Added to the amount determined by the selected Life Insurance
Benefit Option is the value of any additional benefits provided
by rider. NYLIAC pays interest on the Death Benefit from the
date of death to the date the Death Benefit is paid or a payment
option become effective. The interest rate equals the rate
determined under the Interest Payment Option as described in (4)
below. NYLIAC subtracts any outstanding Policy Debt and any
charges incurred but not yet deducted, and then credits the
interest.
Beginning on the Policy Anniversary on which the Insured is age
95, the Face Amount, as shown on the Policy, will no longer
apply. Instead, the life insurance benefit under the Policy will
equal the Cash Value, less outstanding Policy Debt. Also, no
further monthly deductions will be made for cost of insurance.
(3) Loan Provisions.
See Item 21.
(4) Payment of Benefits.
If the Policy has not terminated, payment of the Cash Surrender
Value, loan proceeds or the Death Benefit is made within 7 days
after any required documents are
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received at the Company's Service Office or another location
indicated in writing by the Company.
The Policy may be surrendered for its Cash Surrender Value, less
any unpaid loan, at any time before the Insured dies. Unless a
later effective date is selected, the surrender is effective on
the Business Day NYLIAC receives the Policy and a signed
surrender request in proper form at its Service Office. The Cash
Surrender Value is the Cash Value, less any surrender charges.
Death Benefits will be paid in one sum or, if elected, all or
part of the Death Benefit can be placed under one or more
payment options available under the Policy. If the Company
agrees, the Death Benefit may be placed under some other method
of payment instead. Any Death Benefit paid in one sum will bear
interest compounded each year from the Insured's date of death
to the date of payment. The Company sets the interest rate each
year. This rate will be at least 3% per year, and will not be
less than required by law.
While the Insured is living, the Policyowner can elect or change
an option. He or she can also elect or change one or more
beneficiaries who will be the payee or payees under that option.
After the Insured dies, any person who is to receive proceeds in
one sum (other than an assignee) can elect an option and name
payees. The person who elects an option can also name one or
more successor payees to receive any amount remaining at the
death of the payee. Naming these payees cancels any prior choice
of successor payees. A payee who did not elect the option does
not have the right to advance or assign payments, take the
payments in one sum, or make any other change. However, the
payee may be given the right to do one or more of these things
if the person who elects the option tells NYLIAC in writing and
the Company agrees. If NYLIAC agrees, a payee who has elected a
payment option may later elect to have any amount the Company
still has, or the present value of any elected payments, placed
under another option described in this section. When any payment
under an option would be less than $100, NYLIAC may pay any
unpaid amount or present value in one sum.
The Policy proceeds may be left with the Company at interest.
NYLIAC will set the interest rate each year. This rate will be
at least 3% per year. For the Interest Accumulation Option
(Option 1A), NYLIAC credits interest each year on the amount the
Company still has. This amount can be withdrawn at any time in
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sums of $100 or more. The Company pays interest to the date of
withdrawal on sums withdrawn. For the Interest Payment Option
(Option 1B), NYLIAC pays interest once each month, every 3
months, every 6 months, or once each year, as chosen, based on
the amount the Company still has.
Pursuant to the Life Income Option (Option 2), the Company makes
equal payments each month during the lifetime of the payee or
payees. NYLIAC determines the amount of the monthly payment by
applying the Policy proceeds to purchase a corresponding single
premium life annuity policy which is being issued when the first
payment is due. Payments are based on the appropriately adjusted
annuity premium rate in effect at that time, but will not be
less than the corresponding minimum amount shown in the
appropriate Option 2 Table. These minimum amounts are based on
the 1983 Table "a" with Projection Scale G and with interest
compounded each year at 3%.
When asked, NYLIAC will state in writing what the minimum amount
of each monthly payment would be under this option. It is based
on the sex and adjusted age of the payee. To find the adjusted
age in the year the first payment is due, the Company increases
or decreases the payee's age at that time, as specified in the
Policy. For Option 2, NYLIAC makes a payment each month while
the payee is living. Payments do not change, and are guaranteed
for 10 years, even if that payee dies sooner.
NYLIAC can delay payment of the Cash Surrender Value or any
withdrawal from the Separate Account, loan proceeds attributable
to the Separate Account, or the Death Benefit during any period
during which the New York Stock Exchange is closed (other than
customary week-end and holiday closings), trading is restricted
by the Commission, or the Commission declares that an emergency
exists.
NYLIAC can delay payment of the entire Death Benefit if payment
is contested. NYLIAC investigates all death claims arising
within the two-year contestable period. Upon receiving the
information from a completed investigation, NYLIAC generally
makes a determination within five days as to whether the claim
should be authorized for payment. Payments are made promptly
after authorization. If payment of the Cash Surrender Value or a
withdrawal is delayed for 30 days or more, the Company adds
interest at an annual rate of 3%. NYLIAC adds interest to a
Death Benefit from the date
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of death to the date of payment at the same rate as is paid
under the Interest Payment Option.
INFORMATION CONCERNING THE SECURITIES UNDERLYING THE TRUST'S SECURITIES
11. DESCRIBE BRIEFLY THE KIND OR TYPE OF SECURITIES COMPRISING THE UNIT OF
SPECIFIED SECURITIES IN WHICH SECURITY HOLDERS HAVE AN INTEREST. (IF
THE UNIT CONSISTS OF A SINGLE SECURITY ISSUED BY AN INVESTMENT COMPANY,
NAME SUCH INVESTMENT COMPANY AND FURNISH A DESCRIPTION OF THE TYPE OF
SECURITIES COMPRISING THE PORTFOLIO OF SUCH INVESTMENT COMPANY.)
The Separate Account currently has eleven Investment Divisions which
invest Premiums solely in the corresponding Portfolios of either the
New York Life MFA Series Fund, Inc. (the "MFA Fund"), a diversified
open-end management investment company, or Acacia Capital Corporation
(the "Calvert Fund" and, together with the MFA Fund, the "Funds"), an
open-end management investment company. The MFA Fund currently has ten
Portfolios: the Cash Management Portfolio, the Government Portfolio,
the Capital Appreciation Portfolio, the High Yield Corporate Bond
Portfolio, the International Equity Portfolio, the Value Portfolio, the
Bond Portfolio, the Growth Equity Portfolio, the Indexed Equity
Portfolio, and the Total Return Portfolio. The Calvert Fund currently
has one Portfolio: the Socially Responsible Portfolio. The assets of
each Portfolio are separate from the others and each Portfolio has
different investment objectives and policies. As a result, each
Portfolio operates as a separate investment fund and the investment
performance of one Portfolio has no effect on the investment
performance of any other Portfolio.
12. IF THE TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES AND IF
ANY UNDERLYING SECURITIES WERE ISSUED BY ANOTHER INVESTMENT COMPANY,
FURNISH THE FOLLOWING INFORMATION FOR EACH SUCH COMPANY:
Since underlying securities will currently be issued by two investment
companies, information is provided for each company.
Company No. 1:
(A) NAME OF COMPANY.
New York Life MFA Series Fund, Inc.
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(B) NAME AND PRINCIPAL BUSINESS ADDRESS OF DEPOSITOR.
The Company is the depositor of the trust. See Item 2.
(C) NAME AND PRINCIPAL BUSINESS ADDRESS OF TRUSTEE OR CUSTODIAN.
For the Capital Appreciation Portfolio, the Cash Management Portfolio,
the Government Portfolio, the High Yield Corporate Bond Portfolio, the
International Equity Portfolio, the Total Return Portfolio, the Value
Portfolio, and the Indexed Equity Portfolio, The Bank of New York, 110
Washington Street, New York, New York 10286 is the custodian of the MFA
Fund's assets. For the Bond Portfolio and the Growth Equity Portfolio,
Chemical Bank, 770 Park Avenue, New York, New York 10017 is the
custodian of the MFA Fund's assets.
(D) NAME AND PRINCIPAL BUSINESS ADDRESS OF PRINCIPAL UNDERWRITER.
NYLIFE Distributors Inc.
51 Madison Avenue
New York, New York 10010
(E) THE PERIOD DURING WHICH THE SECURITIES OF SUCH COMPANY HAVE BEEN THE
UNDERLYING SECURITIES.
No underlying securities have yet been acquired by the Separate
Account.
Company No. 2:
(A) NAME OF COMPANY
Acacia Capital Corporation
(B) NAME AND PRINCIPAL BUSINESS ADDRESS OF DEPOSITOR.
The Company is the depositor of the trust. See Item 2.
(C) NAME AND PRINCIPAL BUSINESS ADDRESS OF TRUSTEE OR CUSTODIAN.
State Street Bank & Trust Company
225 Franklin Street
Boston, Massachusetts 02110
(D) NAME AND PRINCIPAL BUSINESS ADDRESS OF PRINCIPAL UNDERWRITER.
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<PAGE>
Calvert Distributors, Inc.
4550 Montgomery Avenue, Suite 1000 N
Bethesda, Maryland 20814
(E) THE PERIOD DURING WHICH THE SECURITIES OF SUCH COMPANY HAVE BEEN THE
UNDERLYING SECURITIES.
No underlying securities have yet been acquired by the Separate
Account.
INFORMATION CONCERNING LOAD, FEES, CHARGES AND EXPENSES
13.(A FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO EACH LOAD, FEE,
EXPENSE OR CHARGE TO WHICH (1) PRINCIPAL PAYMENTS, (2) UNDERLYING
SECURITIES, (3) DISTRIBUTIONS, (4) CUMULATED OR REINVESTED
DISTRIBUTIONS OR INCOME, AND (5) REDEEMED OR LIQUIDATED ASSETS OF
THE TRUST'S SECURITIES ARE SUBJECT:
(A) THE NATURE OF SUCH LOAD, FEE, EXPENSE OR CHARGE;
(B) THE AMOUNT THEREOF;
(C) THE NAME OF THE PERSON TO WHOM SUCH AMOUNTS ARE PAID AND HIS
RELATIONSHIP TO THE TRUST;
(D) THE NATURE OF THE SERVICES PERFORMED BY SUCH PERSON IN CONSIDERATION
FOR SUCH LOAD, FEE, EXPENSE OR CHARGE.
(1) Principal Payments.
NYLIAC deducts certain charges from each Premium. The Sales Expense
Charge component of the premium deduction is currently 2.25%, although
the Company reserves the right to increase this charge up to a maximum
of 4.5% of Premiums. The Company will also deduct a premium tax charge
equal to 2% of each Premium, which is the expected average premium tax.
A deduction of 1.25% of each Premium is also made for Federal tax
charges.
(2) Underlying Securities.
MacKay-Shields Financial Corporation ("MacKay-Shields") is the
investment adviser to the Cash Management, Government, Capital
Appreciation, High Yield Corporate Bond, International Equity, Value
and Total Return Portfolios; Monitor Capital Advisors, Inc. ("Monitor")
is the investment adviser to the Indexed Equity Portfolio; New York
Life Insurance Company is the investment adviser to the Bond and Growth
Equity Portfolios; and Calvert Asset Management Company, Inc. ("Calvert
Asset Management") is the adviser to the
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Socially Responsible Portfolio. MacKay-Shields, Monitor, New York Life
and Calvert Asset Management provide investment advisory services to
the Portfolios in accordance with the policies, programs and guidelines
established by the Board of Directors of each Fund. As compensation for
such services, the MFA Fund pays MacKay-Shields a fee in the form of a
daily charge at an annual rate of .25%, .30%, .36%, .30%, .60%, .36%
and .32% of the aggregate daily net assets of the Cash Management
Portfolio, the Government Portfolio, the Capital Appreciation
Portfolio, High Yield Corporate Bond, International Equity, Value and
the Total Return Portfolio, respectively. The Fund pays New York Life a
fee in the form of a daily charge at an annual rate of .25% of the
daily net assets of the Bond and Growth Equity Portfolios. The Fund
pays Monitor a fee equal to .10% of the daily net assets of the Indexed
Equity Portfolio, and pays Calvert Asset Management a fee equal to .70%
of the daily net assets of the Socially Responsible Portfolio.
(3) Distributions.
No load, fee, expense or charge is assessed in connection with
distributions. For charges associated with surrenders and withdrawals,
see Item 13(d).
(4) Cumulated or Reinvested Distributions or Income.
All dividend and capital gain distributions from Portfolios are
automatically reinvested in shares of the distributing Portfolio at
their net asset value on the payable date.
(5) Redeemed or Liquidated Assets.
For charges associated with surrenders and withdrawals, see Item 13(d).
(B) FOR EACH INSTALLMENT PAYMENT TYPE OF PERIODIC PAYMENT PLAN CERTIFICATE
OF THE TRUST, FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO SALES
LOAD AND OTHER DEDUCTIONS FROM PRINCIPAL PAYMENTS.
Not applicable.
(C) STATE (1) THE AMOUNT OF SALES LOAD AS A PERCENTAGE OF THE NET AMOUNT
INVESTED, AND (2) THE AMOUNT OF TOTAL DEDUCTIONS AS A PERCENTAGE OF THE
NET AMOUNT INVESTED FOR EACH TYPE OF SECURITY ISSUED BY THE TRUST.
Not applicable.
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(D) FURNISH A BRIEF DESCRIPTION OF ANY LOADS, FEES, EXPENSES OR CHARGES NOT
COVERED IN ITEM 13(A) WHICH MAY BE PAID BY SECURITY HOLDERS IN
CONNECTION WITH THE TRUST OR ITS SECURITIES.
(1) SEPARATE ACCOUNT CHARGES
Mortality and Expense Risk Charge.
NYLIAC charges the Separate Account's Investment Divisions for the
mortality and expense risks the Company assumes. For Policy Years one
through ten, NYLIAC deducts a daily charge at an effective annual rate
of .70% of the value of each Investment Division's assets. For Policy
Years eleven and above, the mortality and expense risk charge will
equal, on an annual basis, .30% of the value of each Investment
Division's assets. NYLIAC may change the mortality and expense risk
charge, subject to a guaranteed maximum of .90%.
Other Charges for Federal Income Taxes.
Under current Federal tax laws, the investment income of the Separate
Account is not taxed to NYLIAC, and accordingly, no charge is made to
the Separate Account for Federal income taxes. NYLIAC reserves the
right to charge the Separate Account for Federal income tax liabilities
attributable to them if such taxes are imposed in the future.
(2) CASH VALUE CHARGES
Cost of Insurance Charge.
A charge for the cost of providing insurance protection on the life of
the Insured is deducted on each Monthly Deduction Day and is based on
the gender, smoker class, duration, underwriting class, and issue age
of the Insured. The cost of insurance charge for any month will equal
(1) multiplied by the result of (2) minus (3) where: (1) is the
applicable cost of insurance rate, (2) is the number of thousands of
Face Amount as of the Monthly Deduction Day divided by 1.0032737, and
(3) is the number of thousands of Cash Value as of the Monthly
Deduction Day (before this cost of insurance charge, but after the
monthly contract charge and any charges for riders and flat extras are
deducted). In rated cases, an additional charge may be assessed as part
of the cost of insurance charge. The same cost of insurance rate will
apply to any increases in Face Amount. The charge varies monthly
because it is determined by multiplying the applicable cost of
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insurance rates by the amount at risk each Policy month and then adding
the amount of any applicable flat extra charge. Charges for any flat
extras and optional benefits added by rider are also deducted from the
Cash Value on each Monthly Deduction Day.
Monthly Contract Charge.
There is a monthly charge equal to $90 on an annual basis ($7.50 per
month) to compensate NYLIAC for costs incurred in providing certain
administrative services including Premium collection, recordkeeping,
processing claims and communicating with Policyowners. This charge is
not designed to produce a profit. While this charge may increase or
decrease, it will never exceed $108 on an annual basis.
Cost for Riders.
The Company will deduct a charge on each Monthly Deduction Day to
compensate for the cost for any riders attached to the Policy.
(3) SURRENDER CHARGES
Upon surrender or any transaction which results in a decrease in Face
Amount during the first nine (9) Policy Years, a surrender charge is
assessed. The surrender charge is based on the Policy Year in which the
surrender or decrease in Face Amount is made and will be deducted from
the Investment Divisions and the Fixed Account on a pro-rata basis.
For a surrender, the surrender charge is calculated by multiplying the
applicable percentage shown in the table below by the surrender charge
premium set forth in a Policyowner's Policy.
Percentage of
Surrender
Policy Year Charge Premium
----------- --------------
1-5 . . . . . . . . . . . . . . . . . . . 32.5%
6 . . . . . . . . . . . . . . . . . . . 26.0%
7 . . . . . . . . . . . . . . . . . . . 19.5%
8 . . . . . . . . . . . . . . . . . . . 13.0%
9 . . . . . . . . . . . . . . . . . . . 6.5%
10+ . . . . . . . . . . . . . . . . . . 0%
A requested decrease in Face Amount will result in the imposition of a
surrender charge equal to the difference between the surrender charge
that would have been payable on a complete surrender prior to the
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difference between the surrender charge that would have been payable on
a complete surrender prior to the decrease and the surrender charge
that would be payable on a complete surrender after the decrease.
Requested decreases and increases in Face Amount will cause a
corresponding change in the amount of the surrender charge premium.
The surrender charge is limited to 50% of all Premiums paid to date,
less any sales expense charges deducted from such Premium payments,
less any surrender charge previously deducted.
During the first two Policy Years, the surrender charge is further
limited to the sum of: (i) 30% of all Premium payments made during the
first two Policy Years up to one SEC guideline annual premium, plus
(ii) 10% of all Premium payments in the first two Policy Years in
excess of one guideline annual premium, but not more than two guideline
annual premiums, plus (iii) 9% of all Premium payments in the first two
Policy Years in excess of two guideline annual premiums, less (iv) any
sales expense charges deducted from such Premium payments, less (v) any
surrender charge previously deducted.
(E) STATE WHETHER THE DEPOSITOR, PRINCIPAL UNDERWRITER, CUSTODIAN OR
TRUSTEE, OR ANY AFFILIATED PERSON OF THE FOREGOING MAY RECEIVE PROFITS
OR OTHER BENEFITS NOT INCLUDED IN THE ANSWER TO ITEM 13(A) OR 13(D)
THROUGH THE SALE OR PURCHASE OF THE TRUST'S SECURITIES OR UNDERLYING
SECURITIES OR INTERESTS IN UNDERLYING SECURITIES, AND DESCRIBE FULLY
THE NATURE AND EXTENT OF SUCH PROFITS OR BENEFITS.
Neither NYLIAC nor any affiliated persons of the Company may receive
any profit or any other benefit from Premium payments under the
Policies or the investments held in the Separate Account not included
in the answer to Item 13(a) or (d) through the sale or purchase of the
Policies or shares of the Funds, except that (1) the Company may
receive a profit to the extent that the cost of insurance charge under
the Policy exceeds the actual amounts needed to pay benefits, (2)
favorable mortality or expense experience may cause the insurance
provided under a Policy to be profitable to the Company, and (3) the
Company will compensate certain other persons, including Company
agents, for services rendered in connection with the distribution of a
Policy, as described in Item 38, but such payments will be made from
the Company's general account.
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<PAGE>
(F) STATE THE PERCENTAGE THAT THE AGGREGATE ANNUAL CHARGES AND DEDUCTIONS
FOR MAINTENANCE AND OTHER EXPENSES OF THE TRUST BEAR TO THE DIVIDEND
AND INTEREST INCOME FROM THE TRUST PROPERTY DURING THE PERIOD COVERED
BY THE FINANCIAL STATEMENT FILED HEREWITH.
Not applicable.
INFORMATION CONCERNING THE OPERATIONS OF THE TRUST
14. DESCRIBE THE PROCEDURE WITH RESPECT TO APPLICATIONS (IF ANY) AND THE
ISSUANCE AND AUTHENTICATION OF THE TRUST'S SECURITIES, AND STATE THE
SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT PERTAINING
THERETO.
Individuals wishing to purchase a Policy must complete an
Application. The Policy is available as a Non- Qualified Policy,
and provides insurance protection for group or sponsored
arrangements. The minimum Face Amount of a Policy is $25,000.
The Insured may not be older than age 85 as of the Policy Date
or the date of any increase in Face Amount. Before issuing any
Policy the Company will require satisfactory evidence of
insurability. For certain eligible groups, the Policy may be
issued based on guaranteed issue or simplified underwriting
rules and procedures defined by the Company.
The Face Amount of a Policy may be increased. An increase in
coverage is subject to the Company's maximum retention limits.
Evidence of insurability which is satisfactory to the Company is
required for an increase. If this evidence results in a change
of underwriting class, a new Policy will be issued for the
amount of the increase. Increases will take effect on the next
Monthly Deduction Day on or after approval. The Company reserves
the right to limit increases.
The Face Amount of a Policy may be decreased on or after the
first Policy Anniversary. The Face Amount will be reduced and
the appropriate surrender charge will be deducted from the Cash
Value. A decrease in Face Amount is effective on the next
Monthly Deduction Day following the receipt of a written
request. The Face Amount may not be decreased to less than
$25,000. The Company may terminate the option of decreasing the
Face Amount in the future.
Interests in the Investment Divisions of the Separate Account
may also be acquired by transfers, as described in Item 10(d).
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15. DESCRIBE THE PROCEDURE WITH RESPECT TO THE RECEIPT OF PAYMENTS FROM
PURCHASERS OF THE TRUST'S SECURITIES AND THE HANDLING OF THE PROCEEDS
THEREOF, AND STATE THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR
AGREEMENT PERTAINING THERETO.
The Policyowner selects a Premium payment schedule in the Application.
The amount and interval of any planned Premiums is shown on the Policy
Data Page. A planned Premium does not have to be paid to keep the
Policy in force if the Cash Surrender Value, less any Policy Debt, is
sufficient to cover the charges made on the Monthly Deduction Day. The
amount of any planned Premium may be increased or decreased subject to
the limits the Company sets. The frequency of Premiums may also be
changed subject to our minimum Premium rules. Planned Premiums end on
the Policy Anniversary on which the Insured is age 95.
While the Insured is living, he or she may make unplanned Premium
payments at any time prior to the Policy Anniversary on which the
Insured is age 95. If an unplanned Premium payment would result in an
increase in the Death Benefit greater than the increase in the Cash
Value, NYLIAC reserves the right to require proof of insurability
before accepting that payment and applying it to the Policy. NYLIAC
also reserves the right to limit the number and amount of any unplanned
Premiums.
When a Premium payment is received, the Company will deduct a Sales
Expense Charge, as well as Premium Tax and Federal Tax Charges. Initial
Premium payments will be allocated to the Company's General Account
until the Policy is issued. On the Policy Date, Net Premiums will be
transferred to the Cash Management Investment Division until 20 days
after the Policy Delivery Date (10 days in New York). Thereafter,
Premiums will be allocated in accordance with the Policyowner's
instructions. Net Premiums will be applied to the Separate Account at
the Accumulation Unit Value determined at the end of the Valuation
Period, and to the Fixed Account in accordance with a Policyowner's
allocation election in effect at that time, and before any other
charges that may be due are deducted.
16. DESCRIBE THE PROCEDURE WITH RESPECT TO THE ACQUISITION OF UNDERLYING
SECURITIES AND THE DISPOSITION THEREOF, AND STATE THE SUBSTANCE OF THE
PROVISIONS OF ANY INDENTURE OR AGREEMENT PERTAINING THERETO.
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Net Premiums will be applied to the Investment Divisions of the
Separate Account and the Fixed Account in accordance with a
Policyowner's allocation election in effect at that time. The Separate
Account Investment Divisions invest Premium payments solely in the
corresponding Portfolios of the Funds. NYLIAC has the right, subject to
any applicable law, to make additions to, deletions from, or
substitutions for, the Portfolio shares held by any Investment
Division. NYLIAC reserves the right to eliminate the shares of any of
the Portfolios and to substitute shares of another portfolio of the
Funds, or of another registered open-end management investment company,
if the shares of the Portfolios are no longer available for investment
or, if in NYLIAC's judgment, investment in any Portfolio would become
inappropriate in view of the purposes of the Separate Account.
17.(A) DESCRIBE THE PROCEDURE WITH RESPECT TO WITHDRAWAL OR REDEMPTION BY
SECURITY HOLDERS.
The procedures with respect to surrenders or redemptions by security
holders are described in response to Items 10(c), (d), (e) and (I).
(B) FURNISH THE NAMES OF ANY PERSONS WHO MAY REDEEM OR REPURCHASE, OR ARE
REQUIRED TO REDEEM OR REPURCHASE, THE TRUST'S SECURITIES OR UNDERLYING
SECURITIES FROM SECURITY HOLDERS, AND THE SUBSTANCE OF THE PROVISIONS
OF ANY INDENTURE OR AGREEMENT PERTAINING THERETO.
NYLIAC is required to process all surrender requests as described in
Item 19(c). The Funds will redeem their shares upon the Company's
request in accordance with the 1940 Act.
(C) INDICATE WHETHER REPURCHASED OR REDEEMED SECURITIES WILL BE CANCELED OR
MAY BE RESOLD.
A Policy, once totally surrendered, may not be resold.
18.(A) DESCRIBE THE PROCEDURE WITH RESPECT TO THE RECEIPT, CUSTODY AND
DISPOSITION OF THE INCOME AND OTHER DISTRIBUTABLE FUNDS OF THE TRUST
AND STATE THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT
PERTAINING THERETO.
All dividends and capital gain distributions from Portfolios are
automatically reinvested in shares of the distributing Portfolio at
their net asset value on the payable date.
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(B) DESCRIBE THE PROCEDURE, IF ANY, WITH RESPECT TO THE REINVESTMENT OF
DISTRIBUTIONS TO SECURITY HOLDERS AND STATE THE SUBSTANCE OF THE
PROVISIONS OF ANY INDENTURE OR AGREEMENT PERTAINING THERETO.
Not applicable.
(C) IF ANY RESERVES OR SPECIAL FUNDS ARE CREATED OUT OF INCOME OR
PRINCIPAL, STATE WITH RESPECT TO EACH SUCH RESERVE OR FUND THE PURPOSE
AND ULTIMATE DISPOSITION THEREOF, AND DESCRIBE THE MANNER OF HANDLING
OF SAME.
Premiums placed in the Separate Account constitute reserves for
benefits under the Policies.
(D) SUBMIT A SCHEDULE SHOWING THE PERIODIC AND SPECIAL DISTRIBUTIONS WHICH
HAVE BEEN MADE TO SECURITY HOLDERS DURING THE THREE YEARS COVERED BY
THE FINANCIAL STATEMENTS FILED HEREWITH. STATE FOR EACH SUCH
DISTRIBUTION THE AGGREGATE AMOUNT AND AMOUNT PER SHARE. IF
DISTRIBUTIONS FROM SOURCES OTHER THAN CURRENT INCOME HAVE BEEN MADE,
IDENTIFY EACH SUCH OTHER SOURCE AND INDICATE WHETHER SUCH DISTRIBUTION
REPRESENTS THE RETURN OF PRINCIPAL PAYMENTS TO SECURITY HOLDERS. IF
PAYMENTS OTHER THAN CASH WERE MADE, DESCRIBE THE NATURE THEREOF, THE
ACCOUNT CHARGED AND THE BASIS OF DETERMINING THE AMOUNT OF SUCH CHARGE.
No distributions have been made.
19. DESCRIBE THE PROCEDURE WITH RESPECT TO THE KEEPING OF RECORDS AND
ACCOUNTS OF THE TRUST, THE MAKING OF REPORTS AND THE FURNISHING OF
INFORMATION TO SECURITY HOLDERS, AND THE SUBSTANCE OF THE PROVISIONS OF
ANY INDENTURE OR AGREEMENT PERTAINING THERETO.
All records and accounts relating to the Separate Account and the Fixed
Account are maintained by New York Life or NYLIAC. Each year NYLIAC
will mail each Policyowner a report showing his or her Cash Value, Cash
Surrender Value and Policy Debt as of the latest Policy Anniversary.
This report contains any additional information required by any
applicable law or regulation.
20. STATE THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT
CONCERNING THE TRUST WITH RESPECT TO THE FOLLOWING:
(A) AMENDMENTS TO SUCH INDENTURE OR AGREEMENT.
Not applicable.
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(B) THE EXTENSION OR TERMINATION OF SUCH INDENTURE OR AGREEMENT.
Not applicable.
(C) THE REMOVAL OR RESIGNATION OF THE TRUSTEE OR CUSTODIAN, OR THE FAILURE
OF THE TRUSTEE OR CUSTODIAN TO PERFORM ITS DUTIES, OBLIGATIONS AND
FUNCTIONS.
Not applicable.
(D) THE APPOINTMENT OF A SUCCESSOR TRUSTEE AND THE PROCEDURE IF A SUCCESSOR
TRUSTEE IS NOT APPOINTED.
The Separate Account has no trustee.
(E) THE REMOVAL OR RESIGNATION OF THE DEPOSITOR, OR THE FAILURE OF THE
DEPOSITOR TO PERFORM ITS DUTIES, OBLIGATIONS AND FUNCTIONS.
NYLIAC acts as depositor of the trust. There are no provisions relating
to the removal or resignation of the depositor or the failure of the
depositor to perform its duties, obligations and functions.
(F) THE APPOINTMENT OF A SUCCESSOR DEPOSITOR AND THE PROCEDURE IF A
SUCCESSOR DEPOSITOR IS NOT APPOINTED.
There are no provisions relating to the appointment of a successor
depositor and the procedure if a successor depositor is not appointed.
21.(A) STATE THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT
WITH RESPECT TO LOANS TO SECURITY HOLDERS.
Using the Policy as sole security, a Policyowner can borrow any amount
up to the loan value of the Policy, which on any given date, is equal
to 90% of the Cash Surrender Value, less any Policy Debt.
The Loan Account secures Policy Debt and is part of the Company's
General Account. When a loan is requested, an amount is transferred to
the Loan Account from the Investment Divisions and the Fixed Account
(on a pro-rata basis unless a Policyowner requests otherwise) equal to:
(1) the requested loan amount; plus (2) any Policy Debt; plus (3) the
interest to the next Policy Anniversary on the requested loan amount
and on any Policy Debt; minus (4) the amount in the Loan Account. On
each Policy Anniversary, the Loan Account will be increased by an
amount equal to the loan interest to the next Policy Anniversary on any
outstanding loan.
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The effective date of the loan is the Business Day the Company makes
payment.
On each Policy Anniversary, if the amount in the Loan Account exceeds
the amount of any outstanding loans plus interest to the next Policy
Anniversary, the excess will be transferred from the Loan Account to
the Investment Divisions and to the Fixed Account. Amounts transferred
will first be transferred to the Fixed Account up to an amount equal to
the total amounts transferred from the Fixed Account to the Loan
Account. Any subsequent amounts transferred will be allocated according
to the Policyowner's Premium allocation in effect at the time of
transfer unless the Policyowner tells the Company otherwise.
The Loan Account Value earns interest at a rate of not less than the
greater of 4% per year and the effective annual loan interest rate less
2%. Interest accrues daily and is credited on each Monthly Deduction
Day.
Unless NYLIAC sets a lower rate for any period, the effective annual
loan interest rate is 6%, which is payable in arrears. Loan interest
accrues each day and is compounded annually. Loan interest not paid in
cash as of the Policy Anniversary will be charged as a new loan. An
amount may need to be transferred to the Loan Account to cover this
increased loan amount.
On the date of death, the date the Policy ends, the date of a loan
repayment, or on any other date the Company specifies, the Company will
make any adjustment in the loan that is required to reflect any
interest paid for any period beyond that date.
If the loan interest rate is lower than 6% per year, any subsequent
increase in the interest rate will be subject to the following
conditions:
(1) The effective date of any increase in the interest rate shall
not be earlier than one year after the effective date of the
establishment of the previous rate.
(2) The amount by which the interest rate may be increased will not
exceed one percent per year, but the rate of interest shall in
no event ever exceed 6%.
(3) NYLIAC will give notice of the interest rate in effect when a
loan is made and when sending notice of loan interest due.
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(4) If a loan is outstanding 40 days or more before the effective
date of an increase in the interest rate, NYLIAC will notify the
Policyowner of that increase at least 30 days prior to the
effective date of the increase.
(5) NYLIAC will give notice of any increase in the interest rate
when a loan is made during the 40 days before the effective date
of the increase.
All or part of an unpaid loan can be repaid before the Insured's
death or before the Policy is surrendered. Loan repayments are
credited to the Loan Account. Excess amounts in the Loan Account
will be transferred in accordance with the procedures described
above in paragraph 2 of this Item 21(a). If a loan is
outstanding when the life insurance or surrender proceeds become
payable, NYLIAC will deduct the amount of any Policy Debt from
these proceeds. In addition, if an unpaid loan exceeds the Cash
Surrender Value of the Policy, NYLIAC will mail a notice to the
Policyowner at his or her last known address, and a copy to the
last known assignee on the Company's records. All insurance will
end 31 days after the date on which NYLIAC mails that notice if
the excess amount is not paid within that 31 days.
(B) FURNISH A BRIEF DESCRIPTION OF ANY PROCEDURE OR ARRANGEMENT BY WHICH
LOANS ARE MADE AVAILABLE TO SECURITY HOLDERS BY THE DEPOSITOR,
PRINCIPAL UNDERWRITER, TRUSTEE OR CUSTODIAN, OR ANY AFFILIATED PERSON
OF THE FOREGOING.
If the Policy has not terminated, payment of loan proceeds is made
within seven (7) days after NYLIAC receives any required documents at
the Company's Service Office or any other location indicated in writing
by the Company. NYLIAC can delay payment of loan proceeds attributable
to the Separate Account during any period that:
o It is not reasonably practicable to determine the amount because
the New York Stock Exchange is closed (other than customary
week-end and holiday closings), trading is restricted by the
Commission, or the Commission declares that an emergency exists;
or
o The Commission, by order, permits NYLIAC to delay payment in
order to protect Policyowners.
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NYLIAC may delay paying any loan proceeds on the Fixed Account
for up to 6 months from the date the request is received at its
Service Office.
(C) IF SUCH LOANS ARE MADE, FURNISH THE AGGREGATE AMOUNT OF LOANS
OUTSTANDING AT THE END OF THE LAST FISCAL YEAR, THE AMOUNT OF INTEREST
COLLECTED DURING THE LAST FISCAL YEAR ALLOCATED TO THE DEPOSITOR,
PRINCIPAL UNDERWRITER, TRUSTEE OR CUSTODIAN OR AFFILIATED PERSON OF THE
FOREGOING AND THE AGGREGATE AMOUNT OF LOANS IN DEFAULT AT THE END OF
THE LAST FISCAL YEAR COVERED BY FINANCIAL STATEMENTS FILED HEREWITH.
Not applicable.
22. STATE THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT WITH
RESPECT TO LIMITATIONS ON THE LIABILITIES OF THE DEPOSITOR,
TRUSTEE OR CUSTODIAN, OR ANY OTHER PARTY TO SUCH INDENTURE OR
AGREEMENT.
There is no such indenture or agreement.
23. DESCRIBE ANY BONDING ARRANGEMENT FOR OFFICERS, DIRECTORS, PARTNERS OR
EMPLOYEES OF THE DEPOSITOR OR PRINCIPAL UNDERWRITER OF THE TRUST,
INCLUDING THE AMOUNT OF COVERAGE AND THE TYPE OF BOND.
A fidelity bond is maintained providing $15,000,000 in coverage for
officers, directors and employees of both NYLIAC and NYLIFE
Distributors. This bond has a $1,500,000 deductible.
In addition, a fidelity bond is maintained providing $10,000,000 in
coverage for officers, directors and employees, including general
agents and agents, of NYLIFE Distributors Inc. ("NYLIFE Distributors").
This bond has a $10,000 deductible.
24. STATE THE SUBSTANCE OF ANY OTHER MATERIAL PROVISIONS OF ANY INDENTURE
OR AGREEMENT CONCERNING THE TRUST OR ITS SECURITIES AND A DESCRIPTION
OF ANY OTHER MATERIAL FUNCTIONS OR DUTIES OF THE DEPOSITOR, TRUSTEE OR
CUSTODIAN NOT STATED IN ITEM 10 OR ITEMS 14 TO 23 INCLUSIVE.
The Policyowner may change the Life Insurance Benefit Option of the
Policy on or after the first Policy Anniversary. The change will take
effect on the Monthly Deduction Day on or after the Business Day the
Company approves a signed request at its Service Office or such other
location indicated in writing by the Company. If the change is from
Option 1 to Option 2, the Face Amount of the Policy will be decreased
by the Cash Value and a surrender charge will be assessed. If the
change is from Option 2 to Option 1, the Face Amount
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will be increased by the Cash Value. The surrender charge premium will
not be affected by changes in the Life Insurance Benefit Option.
The Beneficiary may be changed during the Insured's lifetime by writing
to NYLIAC's Service Office or such other location indicated in writing
by the Company. Generally, the change will take effect as of the date
the request is signed. If no Beneficiary is living when the Insured
dies, unless provided otherwise, the Death Benefit is paid to the
Policyowner or, if deceased, the Policyowner's estate.
A successor Policyowner can be named in the application, or in a signed
notice that gives NYLIAC the facts it needs. The successor Policyowner
will become the new Policyowner when the current Policyowner dies, if
the current Policyowner dies before the Insured. If no successor
Policyowner survives the current Policyowner and the current
Policyowner dies before the Insured, the current Policyowner's estate
becomes the new Policyowner.
A Policyowner can also change the Policyowner in a signed notice that
gives NYLIAC the facts it needs. When this change takes effect, all
rights of ownership in that Policy will pass to the new Policyowner.
When NYLIAC records a change of Policyowner or successor Policyowner,
these changes will take effect as of the date of the Policyowner's
signed notice, subject to any payments NYLIAC made or action NYLIAC
took before recording these changes. NYLIAC may require that these
changes be endorsed in the Policy. Changing the Policyowner or naming a
new successor Policyowner cancels any prior choice of Policyowner or
successor Policyowner, respectively, but does not change the
Beneficiary.
While the Insured is living, the Policy may be assigned as collateral
for a loan or other obligation. For any assignment to be binding on
NYLIAC, NYLIAC must receive a signed copy of it at its Service Office
or such other location indicated in writing by the Company. NYLIAC is
not responsible for the validity of any assignment.
Except for any increases in Face Amount, NYLIAC must bring any legal
action to contest the validity of a Policy within two years from its
Policy Date. After that NYLIAC cannot contest its validity, except for
failure to pay Premiums. For any increase in the Face Amount, NYLIAC
must bring legal action to contest that increase within two years from
the effective date of the increase.
If the Insured's age or sex is misstated in the Policy application, the
Death Benefit payable under the Policy will
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be adjusted based on what the Policy would provide according to the
most recent mortality charge for the correct date of birth or correct
sex.
If the Insured commits suicide within two years from the Policy Date or
less where required by law (or with respect to an increase in Face
Amount, the effective date of the increase), and while the Policy is in
force, the Policy will end, and the only amount payable to the
Beneficiary will be the Premiums paid, less any Policy Debt and any
Partial Withdrawals.
NYLIAC reserves the right to substitute, add or remove any Investment
Division, or combine the Separate Account with one or more other
separate accounts. NYLIAC may create new separate accounts or transfer
the assets of the Separate Account to one or more other separate
accounts. NYLIAC may also operate the Separate Account as a management
investment company under the 1940 Act or in any other form permitted by
law or deregister the Separate Account under the 1940 Act. It may
manage the Separate Account under the direction of a committee or
discharge such committee at any time and may restrict or eliminate any
of the voting rights of Policyowners or other persons who have voting
rights as to the Separate Account.
NYLIAC also reserves the right to change the name of the Separate
Account.
The Policy can include additional benefits that NYLIAC approves based
on its standards and limits for issuing insurance and classifying
risks. None of these benefits depends on the investment performance of
the Separate Account or the Fixed Account. An additional benefit is
provided by a rider and is subject to the terms of both the Policy and
the rider. The following rider is available:
Adjustable Term Insurance Rider. This rider provides term insurance
coverage on the Insured. The initial term amount is set forth in the
Policy. A Policyowner can elect to change the initial term amount at
any time. Evidence of insurability, satisfactory to the Company, must
be furnished in connection with any request to increase the term
amount.
III.
ORGANIZATION, PERSONNEL AND AFFILIATED PERSONS
OF DEPOSITOR
ORGANIZATION AND OPERATIONS OF DEPOSITOR
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25. STATE THE FORM OR ORGANIZATION OF THE DEPOSITOR OF THE TRUST, THE NAME
OF THE STATE OR OTHER SOVEREIGN POWER UNDER THE LAWS OF WHICH THE
DEPOSITOR WAS ORGANIZED AND THE DATE OF ORGANIZATION.
NYLIAC is a stock life insurance company incorporated in Delaware in
1980. NYLIAC is a wholly owned subsidiary of New York Life Insurance
Company ("New York Life"), a mutual life insurance company founded in
New York in 1845.
26.(A) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO ALL FEES RECEIVED
BY THE DEPOSITOR OF THE TRUST IN CONNECTION WITH THE EXERCISE OF ANY
FUNCTIONS OR DUTIES CONCERNING SECURITIES OF THE TRUST DURING THE
PERIOD COVERED BY THE FINANCIAL STATEMENTS FILED HEREWITH.
Not applicable.
(B) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO ANY FEE OR ANY
PARTICIPATION IN FEES RECEIVED BY THE DEPOSITOR FROM ANY UNDERLYING
INVESTMENT COMPANY OR ANY AFFILIATED PERSON OR INVESTMENT ADVISER OF
SUCH COMPANY.
Not applicable.
27. DESCRIBE THE GENERAL CHARACTER OF THE BUSINESS ENGAGED IN BY THE
DEPOSITOR INCLUDING A STATEMENT AS TO ANY BUSINESS OTHER THAN THAT OF
DEPOSITOR OF THE TRUST. IF THE DEPOSITOR ACTS OR ACTED IN ANY CAPACITY
WITH RESPECT TO ANY INVESTMENT COMPANY OR COMPANIES OTHER THAN THE
TRUST, STATE THE NAME OR NAMES OF SUCH COMPANY OR COMPANIES, THEIR
RELATIONSHIP, IF ANY, TO THE TRUST, AND THE NATURE OF THE DEPOSITOR'S
ACTIVITIES THEREWITH. IF THE DEPOSITOR HAS CEASED TO ACT IN SUCH NAMED
CAPACITY, STATE THE DATE OF AND CIRCUMSTANCES SURROUNDING SUCH
CESSATION.
NYLIAC is licensed to sell life, accident and health insurance and
annuities in the District of Columbia and all states. In addition to
the Policies, NYLIAC offers other life insurance policies and
annuities. New York Life is authorized to do business in all states,
the District of Columbia and the Commonwealth of Puerto Rico.
28.(A) FURNISH AS AT LATEST PRACTICABLE DATE THE FOLLOWING INFORMATION
WITH RESPECT TO THE DEPOSITOR OF THE TRUST, WITH RESPECT TO EACH
OFFICER, DIRECTOR, OR PARTNER OF THE DEPOSITOR, AND WITH RESPECT TO
EACH NATURAL PERSON DIRECTLY OR INDIRECTLY OWNING, CONTROLLING OR
HOLDING WITH POWER TO VOTE 5% OR MORE OF THE OUTSTANDING VOTING
SECURITIES OF THE DEPOSITOR.
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<PAGE>
(I) NAME AND PRINCIPAL BUSINESS ADDRESS;
(II) NATURE OF RELATIONSHIP OR AFFILIATION WITH DEPOSITOR
OF THE TRUST;
(III) OWNERSHIP OF ALL SECURITIES OF THE DEPOSITOR;
(IV) OWNERSHIP OF ALL SECURITIES OF THE TRUST;
(V) OTHER COMPANIES OF WHICH EACH PERSON NAMED ABOVE IS
PRESENTLY OFFICER, DIRECTOR, OR PARTNER.
See the table below.
(B) FURNISH A BRIEF STATEMENT OF THE BUSINESS EXPERIENCE DURING THE LAST
FIVE YEARS OF EACH OFFICER, DIRECTOR OR PARTNER OF THE DEPOSITOR.
See the table below.
DIRECTORS AND PRINCIPAL OFFICERS OF NYLIAC
DIRECTORS:
Seymour Sternberg President and Chief Operating Officer of
New York Life from October 1995 to date;
Vice Chairman and President Elect from
February 1995 to October 1995; Executive
Vice President prior thereto. President
of NYLIAC from November 1995 to date.
Jay S. Calhoun, III Vice President and Treasurer of New York
Life from November 1992 to date; Vice
President and Associate Treasurer from
March 1992 to November 1992; Corporate
Vice President prior thereto. Vice
President and Treasurer of NYLIAC from
January 1993 to date.
Lee M. Gammill, Jr. Vice Chairman of New York Life from
February 1995 to date; Executive Vice
President prior thereto. President of
NYLIAC from July 1991 to November 1995.
Richard M. Kernan, Jr. Executive Vice President and Chief
Investment Officer of New York Life from
March 1991 to date.
Gary R. McPhail Executive Vice President of New York Life
from August 1995 to date. Executive Vice
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<PAGE>
President of NYLIAC from November 1995 to
date. Executive Vice President in charge National
Corporation, prior thereto.
Robert D. Rock Senior Vice President in charge of the
Individual Annuity Department of New York
Life from March 1992 to date; Vice
President in charge of the Individual
Annuity Department from November 1991 to
March 1992; Vice President prior thereto.
Senior Vice President of NYLIAC from
April 1992 to date; Vice President prior
thereto.
Frederick J. Sievert Executive Vice President of New York Life
from February 1995 to date; Senior Vice
President and Chief Financial Officer--
Individual Operations from January 1992
to February 1995. Executive Vice
President of NYLIAC from November 1995 to
date; Senior Vice President from June
1992 to November 1995. Senior Vice
President, Individual Insurance Division,
Royal Maccabees Life Insurance Company,
prior thereto.
Stephen N. Steinig Senior Vice President and Chief Actuary
of New York Life from February 1994 to
date; Chief Actuary and Controller from
January 1992 to February 1994; Senior
Vice President and Chief Actuary prior
thereto. Senior Vice President and Chief
Actuary of NYLIAC from May 1991 to date.
OFFICERS:
Michael Gallo Senior Vice President in charge of the
Individual Life Department of New York
Life from July 1995 to date; Senior Vice
President--Northeastern Agencies from
February 1994 to July 1995; Vice
President prior thereto. Senior Vice
President of NYLIAC from August 1995 to
date.
Solomon Goldfinger Senior Vice President in charge of
Financial Management of New York Life
from July 1995 to date; Senior Vice
President in charge of the Individual
Life Department from March 1992 to July
1995; Vice President and Actuary in
charge of the Individual Life Department
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<PAGE>
prior thereto. Senior Vice President of
NYLIAC from April 1992 to date; Vice
President from February 1992 to April
1992; Vice President and Actuary prior
thereto.
Maryann L. Ingenito Vice President of New York Life from
April 1990 to date. Vice President and
Controller (Principal Accounting Officer)
of NYLIAC from December 1994 to date;
Vice President and Assistant Controller
prior thereto.
Robert A. Slepicka Senior Vice President of New York Life
from March 1996 to date; Vice President
prior thereto. Vice President of NYLIAC
from March 1993 to date.
Lawrence R. Stoehr Vice President of New York Life from
March 1993 to date; Corporate Vice
President prior thereto. Vice President
of NYLIAC from July 1994 to date;
Corporate Vice President prior thereto.
COMPANIES OWNING SECURITIES OF DEPOSITOR
29. FURNISH AS AT LATEST PRACTICABLE DATE THE FOLLOWING INFORMATION WITH
RESPECT TO EACH COMPANY WHICH DIRECTLY OR INDIRECTLY OWNS, CONTROLS OR
HOLDS POWER TO VOTE 5% OR MORE OF THE OUTSTANDING VOTING SECURITIES OF
THE DEPOSITOR: (A) NAME AND PRINCIPAL BUSINESS ADDRESS; (B) NATURE OF
BUSINESS; (C) OWNERSHIP OF ALL SECURITIES OF THE DEPOSITOR.
The Company, NYLIAC, is a stock life insurance company whose principal
business address is 51 Madison Avenue, New York, New York 10010. NYLIAC
is a wholly owned subsidiary of New York Life Insurance Company, which
is a mutual insurance company whose principal address is 51 Madison
Avenue, New York, New York 10010.
CONTROLLING PERSONS
30. FURNISH AS AT LATEST PRACTICABLE DATE THE FOLLOWING INFORMATION WITH
RESPECT TO ANY PERSON, OTHER THAN THOSE COVERED BY ITEMS 28, 29 AND 42
WHO DIRECTLY OR INDIRECTLY CONTROLS THE DEPOSITOR.
None.
COMPENSATION OF OFFICERS AND DIRECTORS OF DEPOSITOR
COMPENSATION OF OFFICERS OF DEPOSITOR
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<PAGE>
31. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE REMUNERATION FOR
SERVICES PAID BY THE DEPOSITOR DURING THE LAST FISCAL YEAR COVERED BY
FINANCIAL STATEMENTS FILED HEREWITH:
(A) DIRECTLY TO EACH OF THE OFFICERS OR PARTNERS OF THE DEPOSITOR DIRECTLY
RECEIVING THE THREE HIGHEST AMOUNTS OF REMUNERATION;
(B) DIRECTLY TO ALL OFFICERS OR PARTNERS OF THE DEPOSITOR AS A GROUP
EXCLUSIVE OF PERSONS WHOSE REMUNERATION IS INCLUDED UNDER ITEM 31(A),
STATING SEPARATELY THE AGGREGATE AMOUNT PAID BY THE DEPOSITOR ITSELF
AND THE AGGREGATE AMOUNT PAID BY ALL THE SUBSIDIARIES;
(C) INDIRECTLY OR THROUGH SUBSIDIARIES TO EACH OF THE OFFICERS OR PARTNERS
OF THE DEPOSITOR.
Not applicable. As of this date, the Separate Account has not yet
commenced operations.
COMPENSATION OF DIRECTORS
32. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE REMUNERATION FOR
SERVICES EXCLUSIVE OF REMUNERATION REPORTED UNDER ITEM 31, PAID BY THE
DEPOSITOR DURING THE LAST FISCAL YEAR COVERED BY FINANCIAL STATEMENTS
FILED HEREWITH:
(A) THE AGGREGATE DIRECT REMUNERATION TO DIRECTORS;
(B) INDIRECTLY OR THROUGH SUBSIDIARIES TO DIRECTORS.
Not applicable. See Item 31.
COMPENSATION TO EMPLOYEES
33. (A) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE AGGREGATE
AMOUNT OF REMUNERATION FOR SERVICES OF ALL EMPLOYEES OF THE DEPOSITOR
(EXCLUSIVE OF PERSONS WHOSE REMUNERATION IS REPORTED IN ITEMS 31 AND
32) WHO RECEIVED REMUNERATION IN EXCESS OF $10,000 DURING THE LAST
FISCAL YEAR COVERED BY FINANCIAL STATEMENTS FILED HEREWITH FROM THE
DEPOSITOR AND ANY OF ITS SUBSIDIARIES.
Not applicable. See Item 31.
(B) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE REMUNERATION FOR
SERVICES PAID DIRECTLY DURING THE LAST FISCAL YEAR COVERED BY FINANCIAL
STATEMENTS FILED HEREWITH TO THE FOLLOWING CLASSES OF PERSONS
(EXCLUSIVE OF THOSE PERSONS COVERED BY ITEM 33(A)): (1) SALES MANAGERS,
BRANCH MANAGERS, DISTRICT MANAGERS AND OTHER
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<PAGE>
PERSONS SUPERVISING THE SALE OF REGISTRANT'S SECURITIES; (2) SALESMEN,
SALES AGENTS, CANVASSERS AND OTHER PERSONS MAKING SOLICITATIONS BUT NOT
IN SUPERVISORY CAPACITY; (3) ADMINISTRATIVE AND CLERICAL EMPLOYEES; AND
(4) OTHERS (SPECIFY). IF A PERSON IS EMPLOYED IN MORE THAN ONE
CAPACITY, CLASSIFY ACCORDING TO PREDOMINANT TYPE OF WORK.
Not applicable.
COMPENSATION TO OTHER PERSONS
34. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE AGGREGATE AMOUNT
OF COMPENSATION FOR SERVICES PAID ANY PERSON (EXCLUSIVE OF PERSONS
WHOSE REMUNERATION IS REPORTED IN ITEMS 31, 32 AND 33), WHOSE AGGREGATE
COMPENSATION IN CONNECTION WITH SERVICES RENDERED WITH RESPECT TO THE
TRUST IN ALL CAPACITIES EXCEEDED $10,000 DURING THE LAST FISCAL YEAR
COVERED BY FINANCIAL STATEMENTS FILED HEREWITH FROM THE DEPOSITOR AND
ANY OF ITS SUBSIDIARIES.
Not applicable. See Item 31.
IV.
DISTRIBUTION AND REDEMPTION OF SECURITIES
DISTRIBUTION OF SECURITIES
35. FURNISH THE NAMES OF THE STATES IN WHICH SALES OF THE TRUST'S
SECURITIES (A) ARE CURRENTLY BEING MADE, (B) ARE PRESENTLY PROPOSED TO
BE MADE, AND (C) HAVE BEEN DISCONTINUED, INDICATING BY APPROPRIATE
LETTER THE STATUS WITH RESPECT TO EACH STATE.
No sales are currently being made. It is proposed that Policies will
initially be offered in all jurisdictions where NYLIAC has the
authority to sell the Policies. The sale of Policies has not been
discontinued in any states.
36. IF SALES OF THE TRUST'S SECURITIES HAVE AT ANY TIME SINCE JANUARY 1,
1936 BEEN SUSPENDED FOR MORE THAN A MONTH DESCRIBE BRIEFLY THE REASONS
FOR SUCH SUSPENSION.
Not applicable.
37.(A) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO EACH INSTANCE
WHERE, SUBSEQUENT TO JANUARY 1, 1937, ANY FEDERAL OR STATE GOVERNMENTAL
OFFICERS, AGENCY, OR REGULATORY BODY DENIED AUTHORITY TO DISTRIBUTE
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<PAGE>
SECURITIES OF THE TRUST, EXCLUDING A DENIAL WHICH WAS MERELY A
PROCEDURAL STEP PRIOR TO ANY DETERMINATION BY SUCH OFFICER, ETC. AND
WHICH DENIAL WAS SUBSEQUENTLY RESCINDED.
(1) NAME OF OFFICER, AGENCY OR BODY.
(2) DATE OF DENIAL.
(3) BRIEF STATEMENT OF REASON GIVEN FOR REVOCATION.
Not applicable.
(B) FURNISH THE FOLLOWING INFORMATION WITH REGARD TO EACH INSTANCE WHERE,
SUBSEQUENT TO JANUARY 1, 1937, THE AUTHORITY TO DISTRIBUTE SECURITIES
OF THE TRUST HAS BEEN REVOKED BY ANY FEDERAL OR STATE GOVERNMENTAL
OFFICER, AGENCY OR REGULATORY BODY.
Not applicable.
38.(A) FURNISH A GENERAL DESCRIPTION OF THE METHOD OF DISTRIBUTION OF
SECURITIES OF THE TRUST.
NYLIFE Distributors is the principal underwriter and the distributor of
the Policies. Applications for the Policy will be solicited by
registered representatives of NYLIFE Securities Inc. and other
broker-dealers who have entered into dealer agreements with NYLIFE
Distributors, Inc. Commissions paid to registered representatives
during a Policy's first year will not exceed 35% of the Premiums paid
up to a Policy's surrender charge premium (5% in Policy Years two
through ten) plus 3% of Premiums paid in excess of such amount.
Commissions paid in Policy Years eleven and beyond are 2% of Premiums
paid.
(B) STATE THE SUBSTANCE OF ANY CURRENT SELLING AGREEMENT BETWEEN EACH
PRINCIPAL UNDERWRITER AND THE TRUST OR THE DEPOSITOR, INCLUDING A
STATEMENT AS TO THE INCEPTION AND TERMINATION DATES OF THE AGREEMENT,
ANY RENEWAL AND TERMINATION PROVISIONS, AND ANY ASSIGNMENT PROVISIONS.
To be filed by amendment to the Form S-6 as Exhibit 1.A.(3)(a).
(C) STATE THE SUBSTANCE OF ANY CURRENT AGREEMENTS OR ARRANGEMENTS OF EACH
PRINCIPAL UNDERWRITER WITH DEALERS, AGENTS, SALESMEN, ETC. WITH RESPECT
TO COMMISSIONS AND OVERRIDING COMMISSIONS, TERRITORIES, FRANCHISES,
QUALIFICATIONS AND REVOCATIONS. IF THE TRUST IS THE ISSUER OF PERIODIC
PAYMENT PLAN CERTIFICATES, FURNISH SCHEDULES OF COMMISSIONS AND THE
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BASES THEREOF. IN LIEU OF A STATEMENT CONCERNING SCHEDULES OF
COMMISSIONS, SUCH SCHEDULES OF COMMISSIONS MAY BE FILED AS EXHIBIT
A(3)(C).
To be filed by amendment to the Form S-6 as Exhibit 1.A.(3)(b).
INFORMATION CONCERNING PRINCIPAL UNDERWRITER
39.(A) STATE THE FORM OF ORGANIZATION OF EACH PRINCIPAL UNDERWRITER OF
SECURITIES OF THE TRUST, THE NAME OF THE STATE OR OTHER SOVEREIGN POWER
UNDER THE LAWS OF WHICH EACH UNDERWRITER WAS ORGANIZED AND THE DATE OF
ORGANIZATION.
NYLIFE Distributors is the principal underwriter. NYLIFE Distributors
was organized under the laws of the State of Delaware on October 1,
1993 and is an indirect wholly owned subsidiary of New York Life.
(B) STATE WHETHER ANY PRINCIPAL UNDERWRITER CURRENTLY DISTRIBUTING
SECURITIES OF THE TRUST IS A MEMBER OF THE NATIONAL ASSOCIATION OF
SECURITIES DEALERS, INC.
No Policies are currently being offered. NYLIFE Distributors is
presently a member of the National Association of Securities Dealers,
Inc. (the "NASD").
40.(A) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO ALL FEES RECEIVED
BY EACH PRINCIPAL UNDERWRITER OF THE TRUST FROM THE SALE OF SECURITIES
OF THE TRUST AND ANY OTHER FUNCTIONS IN CONNECTION THEREWITH EXERCISED
BY SUCH UNDERWRITER IN SUCH CAPACITY OR OTHERWISE DURING THE PERIOD
COVERED BY THE FINANCIAL STATEMENTS FILED HEREWITH.
Not applicable.
(B) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO ANY FEE OR ANY
PARTICIPATION IN FEES RECEIVED BY EACH PRINCIPAL UNDERWRITER FROM ANY
UNDERLYING INVESTMENT COMPANY OR ANY AFFILIATED PERSON OR INVESTMENT
ADVISER OF SUCH COMPANY:
(1) THE NATURE OF SUCH FEE OR PARTICIPATION.
(2) THE NAME OF THE PERSON MAKING PAYMENT.
(3) THE NATURE OF THE SERVICES RENDERED IN CONSIDERATION FOR SUCH
FEE OR PARTICIPATION.
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<PAGE>
(4) THE AGGREGATE AMOUNT RECEIVED DURING THE LAST FISCAL YEAR
COVERED BY THE FINANCIAL STATEMENTS FILED HEREWITH.
NYLIFE Distributors will not receive fees for its services as
underwriter or distributor.
41.(A) DESCRIBE THE GENERAL CHARACTER OF THE BUSINESS ENGAGED IN BY EACH
PRINCIPAL UNDERWRITER, INCLUDING A STATEMENT AS TO ANY BUSINESS OTHER
THAN THE DISTRIBUTION OF SECURITIES OF THE TRUST. IF A PRINCIPAL
UNDERWRITER ACTS OR HAS ACTED IN ANY CAPACITY WITH RESPECT TO ANY
INVESTMENT COMPANY OR COMPANIES OTHER THAN THE TRUST, STATE THE NAME OR
NAMES OF SUCH COMPANY OR COMPANIES, THEIR RELATIONSHIP, IF ANY, TO THE
TRUST AND THE NATURE OF SUCH ACTIVITIES. IF A PRINCIPAL UNDERWRITER HAS
CEASED TO ACT IN SUCH NAMED CAPACITY, STATE THE DATE OF AND THE
CIRCUMSTANCES SURROUNDING SUCH CESSATION.
NYLIFE Distributors is engaged in the business of underwriting and
distributing shares of the trust and of open-end investment companies.
(B) FURNISH AS AT LATEST PRACTICABLE DATE THE ADDRESS OF EACH BRANCH OFFICE
OF EACH PRINCIPAL UNDERWRITER CURRENTLY SELLING SECURITIES OF THE TRUST
AND FURNISH THE NAME AND RESIDENCE ADDRESS OF THE PERSON IN CHARGE OF
SUCH OFFICE.
Not applicable. The sale of the Policies has not yet commenced.
(C) FURNISH THE NUMBER OF INDIVIDUAL SALESMEN OF EACH PRINCIPAL UNDERWRITER
THROUGH WHOM ANY OF THE SECURITIES OF THE TRUST WERE DISTRIBUTED FOR
THE LAST FISCAL YEAR OF THE TRUST COVERED BY THE FINANCIAL STATEMENTS
FILED HEREWITH AND FURNISH THE AGGREGATE AMOUNT OF COMPENSATION
RECEIVED BY SUCH SALESMEN IN SUCH YEAR.
Not applicable.
42. FURNISH AS AT LATEST PRACTICABLE DATE THE FOLLOWING INFORMATION WITH
RESPECT TO EACH PRINCIPAL UNDERWRITER CURRENTLY DISTRIBUTING SECURITIES
OF THE TRUST AND WITH RESPECT TO EACH OF THE OFFICERS, DIRECTORS OR
PARTNERS OF SUCH UNDERWRITER: (A) NAME AND PRINCIPAL BUSINESS ADDRESS;
(B) POSITION WITH PRINCIPAL UNDERWRITER; (C) OWNERSHIP OF SECURITIES OF
THE TRUST.
Not applicable. The sale of the Policies has not yet commenced.
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<PAGE>
43. FURNISH, FOR THE LAST FISCAL YEAR COVERED BY THE FINANCIAL STATEMENTS
FILED HEREWITH, THE AMOUNT OF BROKERAGE COMMISSIONS RECEIVED BY ANY
PRINCIPAL UNDERWRITER WHO IS A MEMBER OF A NATIONAL SECURITIES EXCHANGE
AND WHO IS CURRENTLY DISTRIBUTING THE SECURITIES OF THE TRUST OR
EFFECTING TRANSACTIONS FOR THE TRUST IN THE PORTFOLIO SECURITIES OF THE
TRUST.
Not applicable.
OFFERING PRICE OR ACQUISITION VALUATION OF SECURITIES OF THE TRUST
44.(A) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE METHOD OF
VALUATION USED BY THE TRUST FOR PURPOSE OF DETERMINING THE OFFERING
PRICE TO THE PUBLIC OF SECURITIES ISSUED BY THE TRUST OR THE VALUATION
OF SHARES OR INTERESTS IN THE UNDERLYING SECURITIES ACQUIRED BY THE
HOLDER OF A PERIODIC PAYMENT PLAN CERTIFICATE:
(1) THE SOURCE OF QUOTATIONS USED TO DETERMINE THE VALUE OF
PORTFOLIO SECURITIES.
Shares of the Funds are valued at net asset value as supplied to
the Company by the Funds or their agents.
(2) WHETHER OPENING, CLOSING, BID, ASKED OR ANY OTHER PRICE IS USED.
See Item 44(a)(1) and Item 15.
(3) WHETHER PRICE IS AS OF THE DAY OF SALE OR AS OF ANY OTHER TIME.
See Item 15.
(4) A BRIEF DESCRIPTION OF THE METHODS USED BY REGISTRANT FOR
DETERMINING OTHER ASSETS AND LIABILITIES INCLUDING ACCRUAL FOR
EXPENSES AND TAXES (INCLUDING TAXES ON UNREALIZED APPRECIATION).
The Separate Account's assets and liabilities are valued in
accordance with generally accepted accounting principles on an
accrual basis. NYLIAC will periodically review the question of a
charge to the Separate Account for the Company's income taxes
attributable to the investments of the Separate Account. The
Company reserves the right to make a deduction from the Separate
Account for taxes should taxes be imposed in the future. The
Company also
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<PAGE>
reserves the right to make a deduction to establish a reserve
for realized or unrealized appreciation in the Separate Account.
A future charge may be imposed if the federal tax treatment of
NYLIAC is determined to be other than what the Company currently
believes it to be, if changes are made affecting the tax
treatment to the Company of variable life insurance contracts,
or if changes occur in the Company's tax status. If imposed,
such charge would be based on the federal income taxes
attributable to the investments of the Separate Account.
(5) OTHER ITEMS WHICH REGISTRANT ADDS TO THE NET ASSET VALUE IN
COMPUTING OFFERING PRICE OF ITS SECURITIES.
Not applicable.
(6) WHETHER ADJUSTMENTS WERE MADE FOR FRACTIONS:
(I) BEFORE ADDING DISTRIBUTOR'S COMPENSATION (LOAD); AND
(II) AFTER ADDING DISTRIBUTOR'S COMPENSATION (LOAD).
Not applicable because the Separate Account does not
compute per-unit values and sales loads in the manner
presupposed by this Item and Item 44(b). Appropriate
adjustments will be made for fractions in all
computations.
(B) FURNISH A SPECIMEN SCHEDULE SHOWING THE COMPONENTS OF THE OFFERING
PRICE OF THE TRUST'S SECURITIES AS AT THE LATEST PRACTICABLE DATE.
No Policies have yet been offered for sale to the public.
(C) IF THERE IS ANY VARIATION IN THE OFFERING PRICE OF THE TRUST'S
SECURITIES TO ANY PERSON OR CLASSES OF PERSONS OTHER THAN UNDERWRITERS,
STATE THE NATURE AND AMOUNT OF SUCH VARIATION AND INDICATE THE PERSON
OR CLASSES OF PERSONS TO WHOM SUCH OFFERING IS MADE.
The Policyowner selects a Premium payment schedule in the Application
and is not bound by an inflexible Premium schedule. While the Policy is
in force, Premiums may be paid at any time while the Insured is living
and before the Policy Anniversary on which the Insured is age 95,
subject to certain restrictions.
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<PAGE>
45. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO ANY SUSPENSION OF THE
REDEMPTION RIGHTS OF THE SECURITIES ISSUED BY THE TRUST DURING THE
THREE FISCAL YEARS COVERED BY THE FINANCIAL STATEMENTS FILED HEREWITH:
(A) BY WHOSE ACTION REDEMPTION RIGHTS WHERE SUSPENDED.
(B) THE NUMBER OF DAYS NOTICE GIVEN TO SECURITY HOLDERS PRIOR TO SUSPENSION
OF REDEMPTION RIGHTS.
(C) REASON FOR SUSPENSION.
(D) PERIOD DURING WHICH SUSPENSION WAS IN EFFECT.
Not applicable.
REDEMPTION VALUATION OF SECURITIES OF THE TRUST
46.(A) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE METHOD OF
DETERMINING THE REDEMPTION OR WITHDRAWAL VALUATION OF SECURITIES ISSUED
BY THE TRUST:
(1) THE SOURCE OF QUOTATIONS USED TO DETERMINE THE VALUE OF
PORTFOLIO SECURITIES.
See Item 44(a)(1).
(2) WHETHER OPENING, CLOSING, BID, ASKED OR ANY OTHER PRICE IS USED.
See Item 44(a)(2).
(3) WHETHER PRICE IS AS OF THE DAY OF SALE OR AS OF ANY OTHER TIME.
At the net asset value next computed after a written request, in
a form satisfactory to the Company, is received at the Company's
Service Office.
(4) A BRIEF DESCRIPTION OF THE METHODS USED BY REGISTRANT FOR
DETERMINING OTHER ASSETS AND LIABILITIES INCLUDING ACCRUAL FOR
EXPENSES AND TAXES (INCLUDING TAXES ON UNREALIZED APPRECIATION).
See Item 44(a)(4) and Item 18(c).
(5) OTHER ITEMS WHICH REGISTRANT DEDUCTS FROM THE NET ASSET VALUE IN
COMPUTING REDEMPTION VALUE OF ITS SECURITIES.
See Item 10(c).
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(6) WHETHER ADJUSTMENTS ARE MADE FOR FRACTIONS.
Not applicable.
(B) FURNISH A SPECIMEN SCHEDULE SHOWING THE COMPONENTS OF THE REDEMPTION
PRICE TO THE HOLDERS OF THE TRUST'S SECURITIES AS AT LATEST PRACTICABLE
DATE.
No Policies have yet been offered for sale to the public.
PURCHASE AND SALE OF INTERESTS IN UNDERLYING SECURITIES
FROM AND TO SECURITY HOLDERS
47. FURNISH A STATEMENT AS TO THE PROCEDURE WITH RESPECT TO THE MAINTENANCE
OF A POSITION IN THE UNDERLYING SECURITIES OR INTERESTS IN THE
UNDERLYING SECURITIES, THE EXTENT AND NATURE THEREOF AND THE PERSON WHO
MAINTAINS SUCH A POSITION. INCLUDE A DESCRIPTION OF THE PROCEDURE WITH
RESPECT TO THE PURCHASE OF UNDERLYING SECURITIES OR INTERESTS IN
UNDERLYING SECURITIES FROM SECURITY HOLDERS WHO EXERCISE REDEMPTION OR
WITHDRAWAL RIGHTS AND THE SALE OF SUCH UNDERLYING SECURITIES AND
INTERESTS IN THE UNDERLYING SECURITIES TO OTHER SECURITY HOLDERS. STATE
WHETHER THE METHOD OF VALUATION OF SUCH UNDERLYING SECURITIES OR
INTEREST IN UNDERLYING SECURITIES DIFFERS FROM THAT SET FORTH IN ITEMS
44 AND 46. IF ANY ITEM OF EXPENDITURE INCLUDED IN THE DETERMINATION OF
THE VALUATION IS NOT OR MAY NOT ACTUALLY BE INCURRED OR EXPENDED,
EXPLAIN THE NATURE OF SUCH ITEM AND WHO MAY BENEFIT FROM THE
TRANSACTION.
NYLIAC will invest premiums in one or more Investment Divisions of the
Separate Account and the Fixed Account according to the allocation
percentages requested in the Application or as subsequently changed by
the Policyowner. Shares of the Funds are not sold directly to the
general public. NYLIAC may redeem sufficient shares of the Portfolios
of the Funds to pay death benefits, benefits at maturity, surrenders,
withdrawals, Policy loans, charges under the Policies. The Separate
Account buys and redeems shares of the Funds at their net asset value
to be determined at the time of the receipt of the purchase order or
redemption request without the imposition of any sales or redemption
charge. In addition, if a Policyowner elects to transfer a portion of
the Cash Value among Investment Divisions, the Company may redeem
shares held in any Investment Division from which a transfer is made
and purchase shares for any Investment Division(s) into which a portion
of Cash Value is transferred.
See Item 10(c).
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V.
INFORMATION CONCERNING THE TRUSTEE
OR CUSTODIAN
48. FURNISH THE FOLLOWING INFORMATION AS TO EACH TRUSTEE OR CUSTODIAN OF
THE TRUST:
(A) NAME AND PRINCIPAL BUSINESS ADDRESS.
(B) FORM OF ORGANIZATION.
(C) STATE OR OTHER SOVEREIGN POWER UNDER THE LAWS OF WHICH THE TRUSTEES OR
CUSTODIAN WAS ORGANIZED.
(D) NAME OF GOVERNMENTAL SUPERVISING OR EXAMINING AUTHORITY.
Not applicable.
49. STATE THE BASIS FOR PAYMENT OF FEES OR EXPENSES OF THE TRUSTEE OR
CUSTODIAN FOR SERVICES RENDERED WITH RESPECT TO THE TRUST AND ITS
SECURITIES, AND THE AGGREGATE AMOUNT THEREOF FOR THE LAST FISCAL YEAR.
INDICATE THE PERSON PAYING SUCH FEES OR EXPENSES. IF ANY FEES OR
EXPENSES ARE PREPAID, STATE THE UNEARNED AMOUNT.
Not applicable.
50. STATE WHETHER THE TRUSTEE OR CUSTODIAN OR ANY OTHER PERSON HAS OR MAY
CREATE A LIEN ON THE ASSETS OF THE TRUST, AND IF SO, GIVE FULL
PARTICULARS, OUTLINING THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE
OR AGREEMENT WITH RESPECT THERETO.
Although the assets of the Separate Account belong to NYLIAC,
these assets are held separately from the other assets of
NYLIAC, and are not chargeable with liabilities incurred in any
other business operations of NYLIAC (except to the extent that
assets in the Separate Account exceed the reserves and other
liabilities of that Account). The income, capital gains and
capital losses incurred on the assets of the Separate Account
are credited to or are charged against the assets of the
Separate Account, without regard to the income, capital gains or
capital losses arising out of any other business NYLIAC may
conduct. Therefore, the investment performance of the Separate
Account is entirely independent of both the investment
performance of the Fixed Account and the performance of any
other separate account.
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VI.
INFORMATION CONCERNING INSURANCE OF
HOLDERS OF SECURITIES
51. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO INSURANCE OF HOLDERS
OF SECURITIES:
(A) THE NAME AND ADDRESS OF THE INSURANCE COMPANY.
The name and address of the Company are set forth in the answer to Item
2.
(B) THE TYPES OF POLICIES AND WHETHER INDIVIDUAL OR GROUP POLICIES.
The Policy is a flexible premium corporate sponsored variable universal
life insurance policy issued on a group or sponsored arrangement basis.
(C) THE TYPES OF RISKS INSURED AND EXCLUDED.
The Company assumes the risk that the deductions made for mortality
risks will prove inadequate to cover actual mortality costs. The
Company also assumes the risk that deductions for expenses may be
inadequate.
(D) THE COVERAGE OF THE POLICIES.
See Paragraph (c) of this Item 51.
(E) THE BENEFICIARIES OF SUCH POLICIES AND THE USES TO WHICH THE PROCEEDS
OF POLICIES MUST BE PUT.
The recipient of the benefits of the insurance undertakings described
in the answer to Item 51(c) is either the Policyowner or the
Beneficiary under a Policy. There are no restrictions on the use of the
proceeds other than those established by a Policyowner.
(F) THE TERMS AND MANNERS OF CANCELLATION AND OF REINSTATEMENT.
The insurance undertakings described in the answer to Item 51(c) are an
integral part of a Policy and may not be terminated while a Policy
remains in effect.
(G) THE METHOD OF DETERMINING THE AMOUNT OF PREMIUMS TO BE PAID BY HOLDERS
OF SECURITIES.
See answer to Items 13(a) and 13(d) for the amount of charges imposed.
See Items 10(c), 10(i) and 44(c) for the manner in which the Premium is
determined.
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(H) THE AMOUNT OF AGGREGATE PREMIUMS PAID TO THE INSURANCE COMPANY DURING
THE LAST FISCAL YEAR.
Not applicable.
(I) WHETHER ANY PERSON OTHER THAN THE INSURANCE COMPANY RECEIVES ANY PART
OF SUCH PREMIUMS, THE NAME OF EACH SUCH PERSON AND THE AMOUNTS
INVOLVED, AND THE NATURE OF THE SERVICES RENDERED THEREFOR.
No person other than the Company receives any part of the amounts
deducted for assumption of mortality and expense risks. The Company
may, from time to time, enter into reinsurance treaties with other
insurers whereby, such insurers may agree to reimburse the Company for
mortality costs and certain expenses. However, any such arrangements or
contracts do not affect the Policies or the benefits paid thereunder.
(J) THE SUBSTANCE OF ANY OTHER MATERIAL PROVISIONS OF ANY INDENTURE OR
AGREEMENT OF THE TRUST RELATING TO INSURANCE.
None.
VII.
POLICY OF REGISTRANT
52.(A) FURNISH THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR
AGREEMENT WITH RESPECT TO THE CONDITIONS UPON WHICH AND THE METHOD OF
SELECTION BY WHICH PARTICULAR PORTFOLIO SECURITIES MUST OR MAY BE
ELIMINATED FROM ASSETS OF THE TRUST OR MUST OR MAY BE REPLACED BY OTHER
PORTFOLIO SECURITIES. IF AN INVESTMENT ADVISER OR OTHER PERSON IS TO BE
EMPLOYED IN CONNECTION WITH SUCH SELECTION, ELIMINATION OR
SUBSTITUTION, STATE THE NAME OF SUCH PERSON, THE NATURE OF ANY
AFFILIATION TO THE DEPOSITOR, TRUSTEE OR CUSTODIAN, AND ANY PRINCIPAL
UNDERWRITER, AND THE AMOUNT OF REMUNERATION TO BE RECEIVED FOR SUCH
SERVICES. IF ANY PARTICULAR PERSON IS NOT DESIGNATED IN THE INDENTURE
OR AGREEMENT, DESCRIBE BRIEFLY THE METHOD OF SELECTION OF SUCH PERSON.
See answers to Items 10(g) and 10(h) as regards the Company's right to
substitute any other investment for shares of any Fund.
(B) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO EACH TRANSACTION
INVOLVING THE ELIMINATION OF ANY UNDERLYING
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SECURITY DURING THE PERIOD COVERED BY THE FINANCIAL STATEMENTS FILED
HEREWITH:
(1) TITLE OF SECURITY.
(2) DATE OF ELIMINATION.
(3) REASONS FOR ELIMINATION.
(4) THE USE OF THE PROCEEDS FROM THE SALE OF THE ELIMINATED
SECURITY.
(5) TITLE OF SECURITY SUBSTITUTED, IF ANY.
(6) WHETHER DEPOSITOR, PRINCIPAL UNDERWRITER, TRUSTEE OR CUSTODIAN
OR ANY AFFILIATED PERSON OF THE FOREGOING WERE INVOLVED IN THE
TRANSACTION.
(7) COMPENSATION OR REMUNERATION RECEIVED BY EACH SUCH PERSON
DIRECTLY OR INDIRECTLY AS A RESULT OF THE TRANSACTION.
Not applicable.
(C) DESCRIBE THE POLICY OF THE TRUST WITH RESPECT TO THE SUBSTITUTION AND
ELIMINATION OF THE UNDERLYING SECURITIES OF THE TRUST WITH RESPECT TO:
(1) THE GROUNDS FOR ELIMINATION AND SUBSTITUTION;
(2) THE TYPE OF SECURITIES WHICH MAY BE SUBSTITUTED;
(3) WHETHER THE ACQUISITION OF SUCH SUBSTITUTED SECURITY OR
SECURITIES WOULD CONSTITUTE THE CONCENTRATION OF INVESTMENT IN A
PARTICULAR INDUSTRY OR GROUP OF INDUSTRIES OR WOULD CONFORM TO A
POLICY OF CONCENTRATION OF INVESTMENT IN A PARTICULAR INDUSTRY
OR GROUP OF INDUSTRIES;
(4) WHETHER SUCH SUBSTITUTED SECURITIES MAY BE THE SECURITIES OF
ANOTHER INVESTMENT COMPANY; AND
(5) THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT
WHICH AUTHORIZE OR RESTRICT THE POLICY OF THE REGISTRANT IN THIS
REGARD.
See answer to Items 10(g) and 10(h).
(D) FURNISH A DESCRIPTION OF ANY POLICY (EXCLUSIVE OF POLICIES COVERED BY
PARAGRAPHS (A) AND (B) HEREIN) OF THE TRUST WHICH IS DEEMED A MATTER OF
FUNDAMENTAL POLICY AND WHICH IS ELECTED TO BE TREATED AS SUCH.
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<PAGE>
None.
53.(A) STATE THE TAXABLE STATUS OF THE TRUST.
The Company is taxed as a life insurance company in accordance with
Subchapter L of the Internal Revenue Code of 1986 (the "Code"). The
Separate Account is not a separate taxable entity from NYLIAC and its
operations are taken into account by NYLIAC in determining its income
tax liability. All investment income and realized net capital gains on
the assets of the Separate Account are reinvested and taken into
account in determining Policy Cash Values and are automatically applied
to increase the book reserves associated with the Policies. Under
existing federal income tax law, neither the investment income nor any
net capital gains of the Separate Account, are taxed to NYLIAC to the
extent those items are applied to increase reserves associated with the
Policies. NYLIAC believes that the Policies meet the statutory
definition of life insurance under Code Section 7702 and that the
Policyowner and Beneficiary of any Policy will receive the same federal
tax treatment as that accorded to owners and beneficiaries of fixed
benefit life insurance.
(B) STATE WHETHER THE TRUST QUALIFIED FOR THE LAST TAXABLE YEAR AS A
REGULATED INVESTMENT COMPANY AS DEFINED IN SECTION 851 OF THE INTERNAL
REVENUE CODE OF 1954, AND STATE ITS PRESENT INTENTION WITH RESPECT TO
SUCH QUALIFICATIONS DURING THE CURRENT TAXABLE YEAR.
Not applicable. See answer to Item 53(a).
VIII.
FINANCIAL AND STATISTICAL INFORMATION
54. IF THE TRUST IS NOT THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES,
FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO EACH CLASS OR SERIES
OF ITS SECURITIES.
Not applicable.
55. IF THE TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES, A
TRANSCRIPT OF A HYPOTHETICAL ACCOUNT SHALL BE FILED IN APPROXIMATELY
THE FOLLOWING FORM ON THE BASIS OF THE CERTIFICATE CALLING FOR THE
SMALLEST AMOUNT OF PAYMENTS. THE SCHEDULE SHALL COVER A CERTIFICATE OF
THE TYPE CURRENTLY BEING SOLD ASSUMING THAT SUCH CERTIFICATE HAD BEEN
SOLD AT A DATE APPROXIMATELY TEN YEARS PRIOR TO THE DATE OF
- 48 -
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REGISTRATION OR AT THE APPROXIMATE DATE OF ORGANIZATION OF THE TRUST.
Not applicable.
56. IF THE TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES,
FURNISH BY YEARS FOR THE PERIOD COVERED BY THE FINANCIAL STATEMENTS
FILED HEREWITH IN RESPECT OF CERTIFICATES SOLD DURING EACH PERIOD, THE
FOLLOWING INFORMATION FOR EACH FULLY PAID TYPE AND EACH INSTALLMENT
PAYMENT TYPE OF PERIODIC PAYMENT PLAN CERTIFICATE CURRENTLY BEING
ISSUED BY THE TRUST.
Not applicable.
57. IF THE TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES,
FURNISH BY YEARS FOR THE PERIOD COVERED BY THE FINANCIAL STATEMENTS
FILED HEREWITH THE FOLLOWING INFORMATION FOR EACH INSTALLMENT PAYMENT
TYPE OF PERIODIC PAYMENT PLAN CERTIFICATE CURRENTLY BEING ISSUED BY THE
TRUST.
Not applicable.
58. IF THE TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES,
FURNISH THE FOLLOWING INFORMATION FOR EACH INSTALLMENT PAYMENT TYPE OF
PERIODIC PAYMENT PLAN CERTIFICATE OUTSTANDING AS AT THE LATEST
PRACTICABLE DATE.
Not applicable.
59. FINANCIAL STATEMENTS:
FINANCIAL STATEMENTS OF THE TRUST
No financial statements are filed for the Separate Account since (1) it
has not commenced operation; (2) it has no assets or liabilities; (3)
it has received no income; and (4) it has no expenses.
FINANCIAL STATEMENTS OF THE DEPOSITOR
The financial statements of the Company will be contained in a
pre-effective amendment to the registration statement on Form S-6 filed
by the Registrant pursuant to the Securities Act of 1933. At that
point, they will be incorporated herein by reference.
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IX.
EXHIBITS
The following exhibits to the Separate Account's Registration Statement
on Form S-6 (File No. 33-_____) as filed or when filed are incorporated by
reference:
A. (1) (a) Resolution of the Board of Directors of the Company authorizing
the establishment of the Separate Account.
(2) Not applicable.
(3)(a) Distribution Agreement between NYLIFE Distributors, Inc. and
the Company.
(b) Form of Sales Agreement between NYLIFE Distributors Inc., the
Company and independent brokers with respect to the sale of the
Policy.
(c) Not applicable.
(4) Not applicable.
(5) Form of Flexible Premium Corporate Owned Variable Universal Life
Insurance Policy.
(6)(a) Amended and Restated Certificate of Incorporation of the
Company.
(b) By-laws of the Company.
(7) Not applicable.
(8) Not applicable.
(9)(a) Stock Sale Agreement between the Company and New York Life
MFA Series Fund, Inc.
(b) Participation Agreement among Acacia Capital Corporation,
Calvert Asset Management Company, Inc. and the Company, as
amended.
(10) Form of Application for Policy.
The following exhibits are not incorporated by reference to any other
document:
B. (1) Not applicable.
(2) Not applicable.
C. Not applicable.
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SIGNATURE
Pursuant to the requirements of the Investment Company Act of 1940, the
depositor of the registrant has caused this registration statement to be duly
signed on behalf of the registrant in the City and State of New York on the
3rd day of July, 1996.
NYLIAC CORPORATE SPONSORED VARIABLE
UNIVERSAL LIFE SEPARATE ACCOUNT-I
(Registrant)
By: /s/ Robert A. Slepicka
Robert A. Slepicka
Senior Vice President
NEW YORK LIFE INSURANCE AND
ANNUITY CORPORATION
(Depositor)
By: /s/ Robert A. Slepicka
Robert A. Slepicka
Senior Vice President
Attest: /s/ Lawrence Stoehr
Lawrence Stoehr
Vice President
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