<PAGE> 1
NATIONWIDE LIFE INSURANCE COMPANY
Modified Single Premium Deferred Variable Annuity Contracts
Issued by Nationwide Life Insurance Company through its
Nationwide Variable Account-9
The date of this prospectus is May 1, 2000.
- --------------------------------------------------------------------------------
Variable annuities are complex investment products with unique benefits and
advantages that may be particularly useful to many investors in meeting
long-term savings and retirement needs. There are, however, costs and charges
associated with some of these unique benefits - costs and charges that do not
exist or are not present with other investment products. With help from
financial consultants or advisers, investors are encouraged to compare and
contrast the costs and benefits of the variable annuity described in this
prospectus with those of other investment products, including other variable
annuity or variable life insurance products offered by Nationwide Life Insurance
Company and its affiliates. This process will aid in determining whether the
purchase of the contract described in this prospectus is consistent with an
individual's goals, risk tolerance, time horizon, marital status, tax situation,
and other personal characteristics and needs.
THIS PROSPECTUS CONTAINS BASIC INFORMATION YOU SHOULD KNOW ABOUT THE CONTRACTS
BEFORE INVESTING. PLEASE READ THIS PROSPECTUS CAREFULLY AND KEEP IT FOR FUTURE
REFERENCE.
- --------------------------------------------------------------------------------
The following underlying mutual funds are available under the contracts:
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC., A MEMBER OF THE AMERICAN CENTURY(SM)
FAMILY OF INVESTMENTS
- - American Century VP Income & Growth
- - American Century VP International
- - American Century VP Value
DREYFUS
- - Dreyfus Investment Portfolios - European Equity Portfolio
- - The Dreyfus Socially Responsible Growth Fund, Inc.
- - Dreyfus Stock Index Fund, Inc.
- - Dreyfus Variable Investment Fund - Appreciation Portfolio (formerly,
Dreyfus Variable Investment Fund - Capital Appreciation Portfolio)
FEDERATED INSURANCE SERIES
- - Federated Quality Bond Fund II
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
- - VIP Equity-Income Portfolio: Service Class
- - VIP Growth Portfolio: Service Class
- - VIP High Income Portfolio: Service Class*
- - VIP Overseas Portfolio: Service Class
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
- - VIP II Contrafund(R) Portfolio: Service Class
FIDELITY VARIABLE INSURANCE PRODUCT FUND III
- - VIP III Growth Opportunities Portfolio: Service Class
JANUS ASPEN SERIES
- - Capital Appreciation Portfolio: Service Shares
- - Global Technology Portfolio: Service Shares
- - International Growth Portfolio: Service Shares
MORGAN STANLEY
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (FORMERLY, MORGAN STANLEY DEAN WITTER
UNIVERSAL FUNDS, INC.)
- - Emerging Markets Debt Portfolio
- - Mid Cap Growth Portfolio
VAN KAMPEN LIFE INVESTMENT TRUST
- - Morgan Stanley Real Estate Securities Portfolio
NATIONWIDE SEPARATE ACCOUNT TRUST
- - Capital Appreciation Fund
- - Government Bond Fund
- - Money Market Fund
- - Total Return Fund
- - Nationwide Balanced Fund* (subadviser: J.P. Morgan Investment
Management, Inc.)
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- - Nationwide Equity Income Fund (subadviser: Federated Investment
Counseling)
- - Nationwide Global 50 Fund (formerly, Nationwide Global Equity Fund)
(subadviser: J.P. Morgan Investment Management, Inc.)
- - Nationwide High Income Bond Fund* (subadviser: Federated Investment
Counseling)
- - Nationwide Mid Cap Index Fund (formerly, Nationwide Select Advisers Mid
Cap Fund) (subadviser: The Dreyfus Corporation)
- - Nationwide Multi Sector Bond Fund* (subadviser: Miller, Anderson &
Sherrerd, LLP)
- - Nationwide Small Cap Growth Fund (formerly, Nationwide Select Advisers
Small Cap Growth Fund) (subadvisers: Franklin Advisers, Inc., Miller,
Anderson & Sherrerd, LLP, Neuberger Berman, LLC.)
- - Nationwide Small Cap Value Fund (subadviser: The Dreyfus Corporation)
- - Nationwide Small Company Fund (subadvisers: The Dreyfus Corporation,
Neuberger Berman, LLC., Lazard Asset Management and Strong Capital
Management, Inc.)
- - Nationwide Strategic Growth Fund (subadviser: Strong Capital
Management, Inc.)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
- - AMT Guardian Portfolio
- - AMT Mid-Cap Growth Portfolio*
- - AMT Partners Portfolio
OPPENHEIMER VARIABLE ACCOUNT FUNDS
- - Oppenheimer Aggressive Growth Fund/VA (formerly, Oppenheimer Capital
Appreciation Fund)
- - Oppenheimer Capital Appreciation Fund/VA (formerly, Oppenheimer Growth
Fund)
- - Oppenheimer Global Securities Fund/VA
- - Oppenheimer Main Street Growth & Income Fund/VA (formerly, Oppenheimer
Growth & Income Fund)
STRONG OPPORTUNITY FUND II, INC.
VAN ECK WORLDWIDE INSURANCE TRUST
- - Worldwide Emerging Markets Fund
- - Worldwide Hard Assets Fund
VICTORY VARIABLE INSURANCE FUNDS
- - Diversified Stock Fund: Class A
- - Small Company Opportunity Fund: Class A
* These underlying mutual funds may invest in lower quality debt securities
commonly referred to as junk bonds.
Purchase payments not invested in the underlying mutual fund options of the
Nationwide Variable Account-9 ("variable account") may be allocated to the fixed
account or the Guaranteed Term Options (Guaranteed Term Options may not be
available in every jurisdiction - refer to your contract for specific
information).
The Statement of Additional Information (dated May 1, 2000) which contains
additional information about the contracts and the variable account has been
filed with the Securities and Exchange Commission ("SEC") and is incorporated
herein by reference. The table of contents for the Statement of Additional
Information is on page 60.
For general information or to obtain FREE copies of the:
- - Statement of Additional Information;
- - prospectus, annual report or semi-annual report for any underlying
mutual fund;
- - prospectus for the Guaranteed Term Options; or
- - required Nationwide forms,
call: 1-800-848-6331
TDD 1-800-238-3035
or write:
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, 01-05-P1
COLUMBUS, OHIO 43215
The Statement of Additional Information and other material incorporated by
reference can be found on the SEC website at:
www.sec.gov
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Information about this and other Best of America products can be found at:
www.bestofamerica.com
THIS ANNUITY IS NOT:
- - A BANK DEPOSIT - FEDERALLY INSURED
- - ENDORSED BY A BANK - AVAILABLE IN
OR GOVERNMENT AGENCY EVERY STATE
Investors assume certain risks when investing in the contracts, including the
possibility of losing money.
These contracts are offered to customers of various financial institutions and
brokerage firms. No financial institution or brokerage firm is responsible for
the guarantees under the contracts. Guarantees under the contracts are the sole
responsibility of Nationwide.
In the future, additional underlying mutual funds managed by certain financial
institutions, brokerage firms or their affiliates may be added to the variable
account. These additional underlying mutual funds may be offered exclusively to
purchasing customers of the particular financial institution or brokerage firm.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, NOR HAS THE
SEC PASSED UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
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GLOSSARY OF SPECIAL TERMS
ACCUMULATION UNIT- An accounting unit of measure used to calculate the contract
value allocated to the variable account before the annuitization date.
ANNUITIZATION DATE- The date on which annuity payments begin.
ANNUITY COMMENCEMENT DATE- The date on which annuity payments are scheduled to
begin. This date may be changed by the contract owner with Nationwide's consent.
ANNUITY UNIT- An accounting unit of measure used to calculate the variable
annuity payments.
CONTRACT VALUE- The total value of all accumulation units in a contract plus any
amount held in the fixed account and any amount held under Guaranteed Term
Options.
CONTRACT YEAR- Each year the contract is in force beginning with the date the
contract is issued.
ERISA- The Employee Retirement Income Security Act of 1974, as amended.
FIXED ACCOUNT- An investment option that is funded by the general account of
Nationwide.
GENERAL ACCOUNT- All assets of Nationwide other than those of the variable
account or in other separate accounts that have been or may be established by
Nationwide.
INDIVIDUAL RETIREMENT ACCOUNT- An account that qualifies for favorable tax
treatment under Section 408(a) of the Internal Revenue Code, but does not
include Roth IRAs.
INDIVIDUAL RETIREMENT ANNUITY- An annuity contract that qualifies for favorable
tax treatment under Section 408(b) of the Internal Revenue Code, but does not
include Roth IRAs.
INVESTMENT-ONLY CONTRACT- A contract purchased by a Qualified Pension,
Profit-Sharing or Stock Bonus Plan as defined by Section 401(a) of the Internal
Revenue Code.
NATIONWIDE- Nationwide Life Insurance Company.
NON-QUALIFIED CONTRACT- A contract which does not qualify for favorable tax
treatment as a Qualified Plan, Individual Retirement Annuity, Roth IRA, SEP IRA,
Simple IRA, or Tax Sheltered Annuity.
QUALIFIED PLANS- Retirement plans which receive favorable tax treatment under
Section 401 or 403(a) of the Internal Revenue Code.
ROTH IRA- An annuity contract which qualifies for favorable tax treatment under
Section 408A of the Internal Revenue Code.
SEP IRA- An annuity contract which qualifies for favorable tax treatment under
Section 408(k) of the Internal Revenue Code.
SIMPLE IRA- An annuity contract which qualifies for favorable tax treatment
under Section 408(p) of the Internal Revenue Code.
SUB-ACCOUNTS- Divisions of the variable account for which accumulation units and
annuity units are separately maintained - each sub-account corresponds to a
single underlying mutual fund.
TAX SHELTERED ANNUITY- An annuity that qualifies for favorable tax treatment
under Section 403(b) of the Internal Revenue Code.
VALUATION PERIOD- Each day the New York Stock Exchange is open for business.
VARIABLE ACCOUNT- Nationwide Variable Account-9, a separate account of
Nationwide that contains variable account allocations. The variable account is
divided into sub-accounts, each of which invests in shares of a separate
underlying mutual fund.
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TABLE OF CONTENTS
GLOSSARY OF SPECIAL TERMS.........................4
SUMMARY OF STANDARD CONTRACT EXPENSES.............7
ADDITIONAL CONTRACT OPTIONS.......................8
UNDERLYING MUTUAL FUND ANNUAL EXPENSES...........10
EXAMPLE..........................................13
SYNOPSIS OF THE CONTRACTS........................16
FINANCIAL STATEMENTS.............................17
NATIONWIDE LIFE INSURANCE COMPANY................17
NATIONWIDE INVESTMENT SERVICES
CORPORATION.................................17
TYPES OF CONTRACTS...............................18
Non-Qualified Annuity Contracts
Individual Retirement Annuities (IRAs)
Simplified Employee Pension IRAs (SEP IRAs)
Simple IRAs
Roth IRAs
Tax Sheltered Annuities
Qualified Plans
INVESTING IN THE CONTRACT........................20
The Variable Account and Underlying Mutual
Funds
Guaranteed Term Options
The Fixed Account
STANDARD CHARGES AND DEDUCTIONS..................23
Mortality and Expense Risk Charge
Contingent Deferred Sales Charge
Premium Taxes
OPTIONAL CONTRACT BENEFITS, CHARGES AND
DEDUCTIONS.....................................24
Reduced Purchase Payment Option
CDSC Options and Charges
Death Benefit Options
Guaranteed Minimum Income Benefit Option
Extra Value Option
CONTRACT OWNERSHIP...............................28
Joint Ownership
Contingent Ownership
Annuitant
Beneficiary and Contingent Beneficiary
OPERATION OF THE CONTRACT........................30
Minimum Initial and Subsequent Purchase Payments
Pricing
Allocation of Purchase Payments
Determining the Contract Value
Transfers Prior to Annuitization
Transfers After Annuitization
Transfer Requests
RIGHT TO REVOKE..................................33
SURRENDER (REDEMPTION)...........................34
Partial Surrenders (Partial Redemptions)
Full Surrenders (Full Redemptions)
Surrenders Under a Texas Optional Retirement Program or a Louisiana
Optional Retirement Plan
Surrenders Under a Tax Sheltered Annuity
LOAN PRIVILEGE...................................35
Minimum & Maximum Loan Amounts
Loan Processing Fee
How Loan Requests are Processed
Loan Interest
Loan Repayment
Distributions & Annuity Payments
Transferring the Contract
Grace Period & Loan Default
ASSIGNMENT.......................................37
CONTRACT OWNER SERVICES..........................37
Asset Rebalancing
Dollar Cost Averaging
Systematic Withdrawals
ANNUITY COMMENCEMENT DATE........................39
ANNUITIZING THE CONTRACT.........................39
Annuitization Date
Annuitization
Fixed Payment Annuity
Variable Payment Annuity
Frequency and Amount of Annuity Payments
5
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Guaranteed Minimum Income Benefit Option ("GMIB")
Annuity Payment Options
DEATH BENEFITS...................................44
Death of Contract Owner - Non-Qualified Contracts
Death of Annuitant - Non-Qualified Contracts
Death of Contract Owner/Annuitant
Death Benefit Payment
REQUIRED DISTRIBUTIONS...........................46
Required Distributions for Non-Qualified Contracts
Required Distributions for Tax Sheltered Annuities
Required Distributions for Individual Retirement Annuities, SEP IRAs and
Simple IRAs
Required Distributions for Roth IRAs
FEDERAL TAX CONSIDERATIONS.......................49
Federal Income Taxes
Withholding
Non-Resident Aliens
Federal Estate, Gift, and Generation Skipping Transfer Taxes
Charge for Tax
Diversification
Tax Changes
STATEMENTS AND REPORTS...........................53
LEGAL PROCEEDINGS................................54
ADVERTISING AND SUB-ACCOUNT PERFORMANCE SUMMARY..55
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL
INFORMATION......................................60
APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL
FUNDS............................................61
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SUMMARY OF STANDARD CONTRACT EXPENSES
The expenses listed below are charged to all contracts unless:
- - the contract owner meets an available exception under the contract; or
- - a contract owner has replaced a standard benefit with an available
option for an additional charge.
CONTRACT OWNER TRANSACTION EXPENSES
Maximum Contingent Deferred Sales
Charge ("CDSC") (as a percentage of
purchase payments surrendered)....................7%(1)
Range of CDSC over time:
- -------------------------------- ------------------------
Number of Completed Years from CDSC
Date of Purchase Payment Percentage
- -------------------------------- ------------------------
0 7%
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 0%
(1) Each contract year, the contract owner may withdraw without a CDSC the
greater of:
(a) 10% of all purchase payments made to the contract; or
(b) any amount withdrawn to meet minimum distribution requirements under
the Internal Revenue Code This free withdrawal privilege is
non-cumulative. Free amounts not taken during any given contract year
cannot be taken as free amounts in a subsequent contract year (see
"Contingent Deferred Sales Charge").
Withdrawals may be restricted for contracts issued as Tax Sheltered Annuities
due to Internal Revenue Code restrictions.
VARIABLE ACCOUNT CHARGES(2)
(as a percentage of the daily net assets of the variable account)
Mortality and Expense Risk Charges............0.95%
Total Variable Account Charges...........0.95%(3)
(2) These charges apply only to sub-account allocations. They do not apply to
allocations made to the fixed account or to the Guaranteed Term Options.
They are charged on a daily basis at the annual rate noted above.
(3) Charges shown include the Five-Year Reset Death Benefit that is standard to
every contract (see "Death Benefit Payment").
Nationwide may assess a loan processing fee at the time each new loan is
processed. Loans are only available for contracts issued as Tax Sheltered
Annuities. Loans are not available in all states. In addition, some states may
not permit Nationwide to assess a loan processing fee (see "Loan Privilege").
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ADDITIONAL CONTRACT OPTIONS
For an additional charge, the following options are available to contract owners
(upon approval by state insurance authorities). These options must be elected at
the time of application and will replace the corresponding standard contract
benefits.
If the contract owner chooses one or more of the following optional benefits, a
corresponding charge will be deducted. Charges for the optional benefits are IN
ADDITION TO the standard variable account charges. Except as otherwise noted,
optional benefit charges will only apply to allocations made to the variable
account and are charged as a percentage of the average variable account value.
REDUCED PURCHASE PAYMENT OPTION
For an additional charge at an annualized rate of 0.25% of the daily net assets
of the variable account, Nationwide will lower an applicant's minimum initial
purchase payment to $1,000 and subsequent purchase payments to $25. This option
in not available to contracts issued as Investment-only Contracts.
Reduced Purchase Payment Option....................0.25%
Total Variable Account Charges
(including Reduced Purchase Payment Option).....1.20%
FIVE YEAR CDSC OPTION
For an additional charge at an annualized rate of 0.15% of the daily net assets
of the variable account, an applicant can receive a five year CDSC schedule,
instead of the standard seven year CDSC schedule.
Five Year CDSC Option .......................0.15%
Total Variable Account Charges
(including Five Year CDSC Option)..........1.10%
Range of Five-Year CDSC over time:
Number of Completed Years from CDSC
Date of Purchase Payment Percentage
- -------------------------------- ---------------------
0 7%
1 7%
2 6%
3 4%
4 2%
5 0%
For contracts issued in the State of New York, this option is available only for
contracts issued as Roth IRAs and is not available when the Extra Value Option
is elected.
CDSC WAIVER OPTIONS
ADDITIONAL WITHDRAWAL WITHOUT CHARGE AND DISABILITY WAIVER
For an additional charge at an annualized rate of 0.10% of the daily net
assets of the variable account, an applicant can receive an additional 5%
CDSC-free withdrawal privilege, which also includes a disability waiver. This
5% is in addition to the standard 10% CDSC-free withdrawal privilege that
applies to every contract (see "CDSC Options and Charges").
Additional Withdrawal Without
Charge and Disability Waiver ..............0.10%
Total Variable Account Charges
(including Additional Withdrawal
Without Charge and Disability Waiver)..1.05%
ADDITIONAL CDSC WAIVER OPTIONS FOR TAX SHELTERED ANNUITIES
Tax Sheltered Annuity applicants may also elect two additional CDSC waiver
options (see "CDSC Options and Charges").
10 Year and Disability Waiver..............0.05%
Total Variable Account Charges
(including 10 Year and
Disability Waiver) ......................1.00%
Hardship Waiver............................0.15%
Total Variable Account Charges
(including Hardship Waiver)............1.10%
DEATH BENEFIT OPTIONS
An applicant may choose among the following death benefits as a replacement for
the Five-Year Reset Death Benefit that is standard to every contract. The
optional death benefits are:
Optional One-Year Step Up
Death Benefit................................0.05%
Total Variable Account Charges
(including One Year Step Up
Death Benefit).............................1.00%
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Optional 5% Enhanced Death
Benefit......................................0.10%
Total Variable Account Charges
(including 5% Enhanced Death
Benefit)...................................1.05%
GUARANTEED MINIMUM INCOME BENEFIT OPTION
For an additional charge at an annualized rate of 0.45% of the daily net assets
of the variable account, an applicant may elect the Guaranteed Minimum Income
Benefit option (see "Guaranteed Minimum Income Benefit Option").
Guaranteed Minimum Income Benefit Option.....0.45%
Total Variable Account Charges
(including a Guaranteed Minimum
Income Benefit option).....................1.40%
EXTRA VALUE OPTION
For an additional charge at an annualized rate of 0.45% of the daily net assets
of the variable account, Nationwide will credit 3% of the purchase payment(s)
made to the contract during the first 12 months the contract is in force.
Nationwide will discontinue deducting this charge seven years from the date the
contract was issued (see "Extra Value Option").
Extra Value Option...........................0.45%
Total Variable Account Charges
(including Extra Value Option)...........1.40%
The charge for the Extra Value Option will be assessed against the fixed account
and the Guaranteed Term Option allocations during the first seven contract years
in the form of crediting rates that may be up to 0.45% less than the crediting
rates available when the Extra Value Option is not elected (see "Fixed Account"
and "Guaranteed Term Options").
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UNDERLYING MUTUAL FUND ANNUAL EXPENSES
(AS A PERCENTAGE OF UNDERLYING MUTUAL FUND NET ASSETS,
AFTER EXPENSE REIMBURSEMENT)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Underlying
Fees Expenses Fees Mutual Fund
Expenses
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Century Variable Portfolios, Inc. - American 0.70% 0.00% 0.00% 0.70%
Century VP Income & Growth
American Century Variable Portfolios, Inc. - American 1.34% 0.00% 0.00% 1.34%
Century VP International
American Century Variable Portfolios, Inc. - American 1.00% 0.00% 0.00% 1.00%
Century VP Value
Dreyfus Investment Portfolios - European Equity Portfolio 1.00% 0.25% 0.00% 1.25%
The Dreyfus Socially Responsible Growth Fund, Inc. 0.75% 0.04% 0.00% 0.79%
Dreyfus Stock Index Fund, Inc. 0.25% 0.01% 0.00% 0.26%
Dreyfus Variable Investment Fund - Appreciation Portfolio 0.43% 0.35% 0.00% 0.78%
(formerly, Dreyfus Variable Investment Fund - Capital
Appreciation Portfolio)
Federated Insurance Series - Federated Quality Bond Fund II 0.00% 0.68% 0.00% 0.68%
Fidelity VIP Equity-Income Portfolio: Service Class 0.48% 0.08% 0.10% 0.66%
Fidelity VIP Growth Portfolio: Service Class 0.58% 0.07% 0.10% 0.75%
Fidelity VIP High Income Portfolio: Service Class 0.58% 0.11% 0.10% 0.79%
Fidelity VIP Overseas Portfolio: Service Class 0.73% 0.15% 0.10% 0.98%
Fidelity VIP II Contrafund(R) Portfolio: Service Class 0.58% 0.07% 0.10% 0.75%
Fidelity VIP III Growth Opportunities Portfolio: Service 0.58% 0.10% 0.10% 0.78%
Class
Janus Aspen Series - Capital Appreciation Portfolio: 0.65% 0.04% 0.25% 0.94%
Service Shares*
Janus Aspen Series - Global Technology Portfolio: Service 0.65% 0.13% 0.25% 1.03%
Shares*
Janus Aspen Series - International Growth Portfolio: 0.65% 0.11% 0.25% 1.01%
Service Shares*
NSAT Capital Appreciation Fund 0.60% 0.14% 0.00% 0.74%
NSAT Government Bond Fund 0.50% 0.15% 0.00% 0.65%
NSAT Money Market Fund 0.39% 0.15% 0.00% 0.54%
NSAT Total Return Fund 0.58% 0.14% 0.00% 0.72%
NSAT Nationwide Balanced Fund 0.75% 0.15% 0.00% 0.90%
NSAT Nationwide Equity Income Fund 0.80% 0.15% 0.00% 0.95%
NSAT Nationwide Global 50 Fund (formerly, NSAT Nationwide 1.00% 0.20% 0.00% 1.20%
Global Equity Fund)
NSAT Nationwide High Income Bond Fund 0.80% 0.15% 0.00% 0.95%
NSAT Nationwide Mid Cap Index Fund (formerly, NSAT 0.88% 0.15% 0.00% 1.03%
Nationwide Select Advisers Mid Cap Fund)
NSAT Nationwide Multi-Sector Bond Fund 0.75% 0.15% 0.00% 0.90%
NSAT Nationwide Small Cap Growth Fund (formerly, NSAT 1.10% 0.20% 0.00% 1.30%
Nationwide Select Advisers Small Cap Growth Fund)
NSAT Nationwide Small Cap Value Fund 0.90% 0.15% 0.00% 1.05%
NSAT Nationwide Small Company Fund 0.98% 0.17% 0.00% 1.15%
NSAT Nationwide Strategic Growth Fund 0.90% 0.10% 0.00% 1.00%
Neuberger Berman AMT Guardian Portfolio 0.85% 0.15% 0.00% 1.00%
Neuberger Berman AMT Mid-Cap Growth Portfolio 0.85% 0.15% 0.00% 1.00%
Neuberger Berman AMT Partners Portfolio 0.80% 0.07% 0.00% 0.87%
</TABLE>
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<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Underlying
Fees Expenses Fees Mutual Fund
Expenses
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oppenheimer Variable Account Funds - Oppenheimer Aggressive 0.66% 0.01% 0.00% 0.67%
Growth Fund/VA (formerly, Oppenheimer Variable Account Funds
- Oppenheimer Capital Appreciation Fund)
Oppenheimer Variable Account Funds - Oppenheimer Capital 0.68% 0.02% 0.00% 0.70%
Appreciation Fund/VA (formerly, Oppenheimer Variable
Accounts Funds - Oppenheimer Growth Fund)
Oppenheimer Variable Account Funds - Oppenheimer Global 0.67% 0.02% 0.00% 0.69%
Securities Fund/VA
Oppenheimer Variable Account Funds - Oppenheimer Main Street 0.73% 0.05% 0.00% 0.78%
Growth & Income Fund/VA (formerly, Oppenheimer Variable
Account Funds - Oppenheimer Growth & Income Fund)
Strong Opportunity Fund II, Inc. 1.00% 0.14% 0.00% 1.14%
The Universal Institutional Funds, Inc. - Emerging Markets 0.45% 0.98% 0.00% 1.43%
Debt Portfolio (formerly, Morgan Stanley Dean Witter
Universal Funds, Inc. - Emerging Markets Debt Portfolio)
The Universal Institutional Funds, Inc. - Mid Cap Growth 0.00% 1.05% 0.00% 1.05%
Portfolio
Van Eck Worldwide Insurance Trust - Worldwide Emerging 1.00% 0.34% 0.00% 1.34%
Markets Fund
Van Eck Worldwide Insurance Trust - Worldwide Hard Assets 1.00% 0.26% 0.00% 1.26%
Fund
Van Kampen Life Investment Trust - Morgan Stanley Real 0.97% 0.13% 0.00% 1.10%
Estate Securities Portfolio
Victory Variable Insurance Funds - Diversified Stock Fund: 0.00% 0.78% 0.00% 0.78%
Class A
Victory Variable Insurance Funds - Small Company Opportunity 0.00% 0.75% 0.00% 0.75%
Fund: Class A
</TABLE>
* Expenses are based on the estimated expenses that the new Service Shares
class of each Portfolio expects to incur in its initial fiscal year.
The expenses shown above are deducted by the underlying mutual fund before it
provides Nationwide with the daily net asset value. Nationwide then deducts
applicable variable account charges from the net asset value in calculating the
unit value of the corresponding sub-account. The management fees and other
expenses are more fully described in the prospectus for each underlying mutual
fund. Information relating to the underlying mutual funds was provided by the
underlying mutual funds and not independently verified by Nationwide.
Some underlying mutual funds are subject to fee waivers and expense
reimbursements. The following chart shows what the expenses would have been for
such funds without fee waivers and expense reimbursements:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Underlying
Fees Expenses Fees Mutual Fund
Expenses
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Federated Insurance Series - Federated Quality Bond Fund 0.60% 0.89% 0.25% 1.74%
II
Fidelity VIP Equity-Income Portfolio: Service Class 0.48% 0.09% 0.10% 0.67%
Fidelity VIP Growth Portfolio: Service Class 0.58% 0.09% 0.10% 0.77%
Fidelity VIP Overseas Portfolio: Service Class 0.73% 0.18% 0.10% 1.01%
Fidelity VIP II Contrafund(R) Portfolio: Service Class 0.58% 0.10% 0.10% 0.78%
</TABLE>
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<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Underlying
Fees Expenses Fees Mutual Fund
Expenses
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Fidelity VIP III Growth Opportunities Portfolio: Service 0.58% 0.11% 0.10% 0.79%
Class
NSAT Nationwide Balanced Fund 0.75% 0.25% 0.00% 1.00%
NSAT Nationwide Equity Income Fund 0.80% 0.29% 0.00% 1.09%
NSAT Nationwide Global 50 Fund (formerly, NSAT 1.00% 0.54% 0.00% 1.54%
Nationwide Global Equity Fund)
NSAT Nationwide High Income Bond Fund 0.80% 0.50% 0.00% 1.30%
NSAT Nationwide Mid Cap Index Fund (formerly, NSAT 0.88% 0.86% 0.00% 1.74%
Nationwide Select Advisers Mid Cap Fund)
NSAT Nationwide Multi Sector Bond Fund 0.75% 0.27% 0.00% 1.02%
NSAT Nationwide Small Cap Growth Fund (formerly, NSAT 1.10% 1.30% 0.00% 2.40%
Nationwide Select Advisers Small Cap Growth Fund)
NSAT Nationwide Small Cap Value Fund 0.90% 0.37% 0.00% 1.27%
NSAT Nationwide Strategic Growth Fund 0.90% 0.33% 0.00% 1.23%
Neuberger Berman AMT Mid-Cap Growth Portfolio 0.93% 0.15% 0.00% 1.08%
The Universal Institutional Funds, Inc. - Emerging 0.80% 0.98% 0.00% 1.78%
Markets Debt Portfolio (formerly, Morgan Stanley Dean
Witter Universal Funds, Inc. - Emerging Markets Debt
Portfolio)
The Universal Institutional Funds, Inc. - Mid Cap Growth 0.75% 7.31% 0.00% 8.06%
Portfolio
Van Eck Worldwide Insurance Trust - Worldwide Emerging 1.00% 0.54% 0.00% 1.54%
Markets Fund
Van Kampen Life Investment Trust - Morgan Stanley Real 1.00% 0.13% 0.00% 1.13%
Estate Securities Portfolio
Victory Variable Insurance Funds - Diversified Stock 0.30% 6.68% 0.00% 6.98%
Fund: Class A
Victory Variable Insurance Funds - Small Company 0.30% 9.33% 0.00% 9.63%
Opportunity Fund: Class A
</TABLE>
12
<PAGE> 13
EXAMPLE
The following chart shows the expenses (in dollars) that would be incurred under
this contract assuming a $1,000 investment, 5% annual return, and no change in
underlying mutual fund expenses. These dollar figures are illustrative only and
should not be considered a representation of past or future expenses. Actual
expenses may be greater or less than those shown below.
The example reflects expenses of both the variable account and the underlying
mutual funds. The example reflects the 7 year CDSC schedule and an assumed
variable account charge of 2.70% which is the maximum charge for the maximum
number of rider options.
For those contracts that do not elect the maximum number of rider options, the
expenses are reduced. Deductions for premium taxes are not reflected but may
apply.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
If you surrender your contract If you do not surrender your If you annuitize your
at the end of the applicable contract at the end of the contract
time period applicable time period at the end of the applicable
time period
- --------------------------------------------------------------------------------------------------------------------------
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
American Century Variable 99 163 220 381 36 109 184 381 * 109 184 381
Portfolios, Inc. - American
Century VP Income & Growth
American Century Variable 105 182 251 439 42 128 215 439 * 128 215 439
Portfolios, Inc. - American
Century VP International
American Century Variable 102 172 235 409 39 118 199 409 * 118 199 409
Portfolios, Inc. - American
Century VP Value
Dreyfus Investment Portfolios 104 179 247 431 41 125 211 431 * 125 211 431
- - European Equity Portfolio
The Dreyfus Socially 100 165 224 389 37 111 188 389 * 111 188 389
Responsible Growth Fund, Inc.
Dreyfus Stock Index Fund, Inc. 94 149 197 339 31 95 161 339 * 95 161 339
Dreyfus Variable Investment 100 165 224 388 37 111 188 388 * 111 188 388
Fund - Appreciation Portfolio
(formerly, Dreyfus Variable
Investment Fund - Capital
Appreciation Portfolio)
Federated Insurance Series - 98 162 219 379 35 108 183 379 * 108 183 379
Federated Quality Bond Fund II
Fidelity VIP Equity-Income 98 161 218 377 35 107 182 377 * 107 182 377
Portfolio: Service Class
Fidelity VIP Growth 99 164 222 386 36 110 186 386 * 110 186 386
Portfolio: Service Class
Fidelity VIP High Income 100 165 224 389 37 111 188 389 * 111 188 389
Portfolio: Service Class
Fidelity VIP Overseas 102 171 234 407 39 117 198 407 * 117 198 407
Portfolio: Service Class
Fidelity VIP II Contrafund(R) 99 164 222 386 36 110 186 386 * 110 186 386
Portfolio: Service Class
</TABLE>
13
<PAGE> 14
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
If you surrender your contract If you do not surrender your If you annuitize your
at the end of the applicable contract at the end of the contract
time period applicable time period at the end of the applicable
time period
- --------------------------------------------------------------------------------------------------------------------------
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP III Growth 100 165 224 388 37 111 188 388 * 111 188 388
Opportunities Portfolio:
Service Class
Janus Aspen Series - Capital 101 170 232 403 38 116 196 403 * 116 196 403
Appreciation Portfolio:
Service Shares
Janus Aspen Series - Global 102 173 236 411 39 119 200 411 * 119 200 411
Technology Portfolio:
Service Shares
Janus Aspen Series - 102 172 235 409 39 118 199 409 * 118 199 409
International Growth
Portfolio: Service Shares
NSAT Capital Appreciation Fund 99 164 222 385 36 110 186 385 * 110 186 385
NSAT Government Bond Fund 98 161 217 376 35 107 181 376 * 107 181 376
NSAT Money Market Fund 97 158 212 366 34 104 176 366 * 104 176 366
NSAT Total Return Fund 99 163 221 383 36 109 185 383 * 109 185 383
NSAT Nationwide Balanced Fund 101 169 230 399 38 115 194 399 * 115 194 399
NSAT Nationwide Equity Income 101 170 232 404 38 116 196 404 * 116 196 404
Fund
NSAT Nationwide Global 50 104 178 244 427 41 124 208 427 * 124 208 427
Fund (formerly, NSAT
Nationwide Global Equity Fund)
NSAT Nationwide High Income 101 170 232 404 38 116 196 404 * 116 196 404
Bond Fund
NSAT Nationwide Mid Cap Index 102 173 236 411 39 119 200 411 * 119 200 411
Fund (formerly, NSAT
Nationwide Select Advisers
Mid Cap Fund)
NSAT Nationwide Multi Sector 101 169 230 399 38 115 194 399 * 115 194 399
Bond Fund
NSAT Nationwide Small Cap 105 181 249 435 42 127 213 435 * 127 213 435
Growth Fund (formerly, NSAT
Nationwide Select Advisers
Small Cap Growth Fund)
NSAT Nationwide Small Cap 102 173 237 413 39 119 201 413 * 119 201 413
Value Fund
NSAT Nationwide Small Company 103 176 242 422 40 122 206 422 * 122 206 422
Fund
NSAT Nationwide Strategic 102 172 235 409 39 118 199 409 * 118 199 409
Growth Fund
Neuberger Berman AMT Guardian 102 172 235 409 39 118 199 409 * 118 199 409
Portfolio
Neuberger Berman AMT Mid-Cap 102 172 235 409 39 118 199 409 * 118 199 409
Growth Portfolio
Neuberger Berman AMT Partners 100 168 228 397 37 114 192 397 * 114 192 397
Portfolio
</TABLE>
14
<PAGE> 15
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
If you surrender your contract If you do not surrender your If you annuitize your
at the end of the applicable contract at the end of the contract
time period applicable time period at the end of the applicable
time period
- --------------------------------------------------------------------------------------------------------------------------
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oppenheimer Variable Account 98 162 218 378 35 108 182 378 * 108 182 378
Funds - Oppenheimer
Aggressive Growth Fund/VA
(formerly, Oppenheimer
Variable Account Funds -
Oppenheimer Capital
Appreciation Fund)
Oppenheimer Variable Account 99 163 220 381 36 109 184 381 * 109 184 381
Funds - Oppenheimer Capital
Appreciation Fund/VA
(formerly, Oppenheimer
Variable Account Funds -
Oppenheimer Growth Fund)
Oppenheimer Variable Account 99 162 219 380 36 108 183 380 * 108 183 380
Funds - Oppenheimer Global
Securities Fund/VA
Oppenheimer Variable Account 100 165 224 388 37 111 188 388 * 111 188 388
Funds - Oppenheimer Main
Street Growth & Income
Fund/VA (formerly,
Oppenheimer Variable Account
Funds - Oppenheimer Growth &
Income Fund)
Strong Opportunity Fund II, 103 176 242 421 40 122 206 421 * 122 206 421
Inc.
The Universal Institutional 106 185 256 447 43 131 220 447 * 131 220 447
Funds, Inc. - Emerging
Markets Debt Portfolio
(formerly, Morgan Stanley
Dean Witter Universal Funds,
Inc. - Emerging Markets Debt
Portfolio)
The Universal Institutional 102 173 237 413 39 119 201 413 * 119 201 413
Funds, Inc. - Mid Cap Growth
Portfolio
Van Eck Worldwide Insurance 105 182 251 439 42 128 215 439 * 128 215 439
Trust - Worldwide Emerging
Markets Fund
Van Eck Worldwide Insurance 105 180 247 432 42 126 211 432 * 126 211 432
Trust - Worldwide Hard Assets
Fund
Van Kampen Life Investment 103 175 240 418 40 121 204 418 * 121 204 418
Trust - Morgan Stanley Real
Estate Securities Portfolio
Victory Variable Insurance 100 165 224 388 37 111 188 388 * 111 188 388
Funds - Diversified Stock
Fund: Class A
Victory Variable Insurance 99 164 222 386 36 110 186 386 * 110 186 386
Funds - Small Company
Opportunity Fund: Class A
</TABLE>
* The contracts sold under this prospectus do not permit annuitization during
the first two contract years.
15
<PAGE> 16
SYNOPSIS OF THE CONTRACTS
The contracts described in this prospectus are modified single purchase payment
contracts. The contracts may be issued as either individual or group contracts.
In those states where contracts are issued as group contracts, references
throughout this prospectus to "contract(s)" will also mean "certificate(s)."
The contracts can be categorized as:
- - Investment-only;
- - Non-Qualified;
- - Individual Retirement Annuities with contributions rolled over or
transferred from certain tax-qualified plans*;
- - Roth IRAs;
- - Tax Sheltered Annuities with contributions rolled over or transferred
from other Tax Sheltered Annuity plans*;
- - Charitable Remainder Trusts;
- - SEP IRAs; and
- - Simple IRAs.
* Contributions are not required to be rolled over or transferred if the
contract owner elects the Reduced Purchase Payment Option.
For more detailed information with regard to the differences in contract types,
please see "Types of Contracts" later in this prospectus.
MINIMUM INITIAL AND SUBSEQUENT PURCHASE PAYMENTS
- -------------------- ----------------- ------------------
MINIMUM INITIAL MINIMUM
CONTRACT PURCHASE PAYMENT SUBSEQUENT
TYPE PAYMENTS
- -------------------- ----------------- ------------------
Investment-only $15,000 $1,000
Non-Qualified $15,000 $1,000
IRA $15,000 $1,000
Roth IRA $15,000 $1,000
Tax Sheltered $15,000 $1,000
Annuity
Charitable $15,000 $1,000
Remainder Trust
SEP IRA $15,000 $1,000
Simple IRA $15,000 $1,000
If the contract owner elects the Reduced Purchase Payment Option, minimum
initial and subsequent purchase payments will be reduced accordingly.
If the contract owner elects the Extra Value Option, amounts credited to the
contract in excess of total purchase payments may not be used to meet the
minimum initial and subsequent purchase payment requirements.
Guaranteed Term Options
Guaranteed Term Options are separate investment options under the contract. The
minimum amount that may be allocated to a Guaranteed Term Option is $1,000.
CHARGES AND EXPENSES
Nationwide deducts a Mortality and Expense Risk Charge equal to an annual rate
of 0.95% of the daily net assets of the variable account. Nationwide assesses
this charge in return for bearing certain mortality and expense risks, and for
administrative expenses.
Nationwide does not deduct a sales charge from purchase payments upon deposit
into the contract. However, Nationwide may deduct a CDSC if any amount is
withdrawn from the contract. This CDSC reimburses Nationwide for sales expenses.
The amount of the CDSC will not exceed 7% of purchase payments surrendered.
There are several CDSC options that are available to contract owners, each with
different characteristics and costs. The charge associated with each option is
charged as a percentage of the daily net assets of the variable account. They
are as follows:
- ---------------------------- ------------- ------------
OPTION CONTRACT CHARGE
TYPE
- ---------------------------- ------------- ------------
Five Year CDSC Option All* 0.15%
Additional Withdrawal All 0.10%
Without Charge and
Disability Waiver
10 Year and Disability Tax 0.05%
Waiver Sheltered
Annuities
Hardship Waiver Tax 0.15%
Sheltered
Annuities
* In the State of New York, this option is available only for contracts
issued as Roth IRAs and is not available when the Extra Value Option is
elected.
If the contract owner elects the Reduced Purchase Payment Option, Nationwide
will
16
<PAGE> 17
reduce the minimum initial purchase payment to $1,000 and subsequent purchase
payments to $25. In return for the reduction, Nationwide will deduct an
additional charge of 0.25% of the daily net assets of the variable account. This
option is not available for contracts issued as Investment-only contracts.
Two optional death benefits are available under the contract. Nationwide will
deduct 0.05% if the One-Year Step Up Death Benefit is elected, or 0.10% if the
5% Enhanced Death Benefit is elected.
A Guaranteed Minimum Income Benefit option is available under the contract. If
the contract owner elects the Guaranteed Minimum Income Benefit option,
Nationwide will deduct an additional charge of an annualized rate of 0.45% of
the daily net assets of the variable account (see "Guaranteed Minimum Income
Benefit").
An Extra Value Option is available under the contract. The Extra Value Option is
only available at the time of application. If the contract owner elects the
Extra Value Option on the application, Nationwide will apply a credit of 3% of
the purchase payment(s) made during the first 12 months the contract is in
force. In exchange, Nationwide will deduct an additional charge at an annualized
rate of 0.45% of the daily net assets of the variable account. Nationwide will
discontinue deducting this charge seven years from the date the contract was
issued. Once the Extra Value Option is elected, it may not be revoked (see
"Extra Value Option").
Upon annuitization of the contract, any amounts assessed for any rider options
elected will be waived and only those charges applicable to the base contract
will be assessed.
ANNUITY PAYMENTS
Annuity payments begin on the annuitization date. The payments will be based on
the annuity payment option chosen at the time of application (see "Annuity
Payment Options").
TAXATION
How a contract is taxed depends on the type of contract issued and the purpose
for which the contract is purchased. Nationwide will charge against the contract
any premium taxes levied by any governmental authority (see "Federal Tax
Considerations" and "Premium Taxes").
TEN DAY FREE LOOK
Contract owners may return the contract for any reason within ten days of
receipt and Nationwide will refund the contract value or other amounts required
by law (see "Right to Revoke").
FINANCIAL STATEMENTS
Financial statements for the variable account and Nationwide are located in the
Statement of Additional Information. A current Statement of Additional
Information may be obtained, without charge, by contacting Nationwide's home
office at the telephone number listed on page 2 of this prospectus.
NATIONWIDE LIFE INSURANCE COMPANY
Nationwide is a stock life insurance company organized under Ohio law in March,
1929 with its home office at One Nationwide Plaza, Columbus, Ohio 43215.
Nationwide is a provider of life insurance, annuities and retirement products.
It is admitted to do business in all states, the District of Columbia and Puerto
Rico.
NATIONWIDE INVESTMENT SERVICES CORPORATION
The contracts are distributed by the general distributor, Nationwide Investment
Services Corporation ("NISC"), Two Nationwide Plaza, Columbus, Ohio 43215. (For
contracts issued in the State of Michigan, all references to NISC shall mean
Nationwide Investment Svcs. Corporation.) NISC is a wholly owned subsidiary of
Nationwide.
TYPES OF CONTRACTS
The contracts described in this prospectus are classified according to the tax
treatment they are
17
<PAGE> 18
subject to under the Internal Revenue Code. The following is a general
description of the various types of contracts. Eligibility requirements, tax
benefits (if any), limitations, and other features of the contracts will differ
depending on the type of contract.
NON-QUALIFIED ANNUITY CONTRACTS
A Non-Qualified Annuity Contract is a contract that does not qualify for certain
tax benefits under the Internal Revenue Code, and which is not an IRA, a Roth
IRA, a SEP IRA, a Simple IRA, or a Tax Sheltered Annuity.
Upon the death of the owner of a Non-Qualified Annuity Contract, mandatory
distribution requirements are imposed to ensure distribution of the entire
balance in the contract within a required statutory period.
Non-Qualified Annuity contracts that are owned by natural persons allow for the
deferral of taxation on the income earned in the contract until it is
distributed or deemed to be distributed.
INDIVIDUAL RETIREMENT ANNUITIES (IRAS)
Individual Retirement Annuities are contracts that are issued by insurance
companies and satisfy the following requirements:
- - the contract is not transferable by the owner;
- - the premiums are not fixed;
- - the annual premium cannot exceed $2,000 (although rollovers of greater
amounts from qualified plans, tax-sheltered annuities and other IRAs
can be received);
- - certain minimum distribution requirements must be satisfied after the
owner attains the age of 70 1/2;
- - the entire interest of the owner in the contract is nonforfeitable; and
- - after the death of the owner, additional distribution requirements may
be imposed to ensure distribution of the entire balance in the contract
within the statutory period of time.
Depending on the circumstance of the owner, all or a portion of the
contributions made to the account may be deducted for federal income tax
purposes.
Failure to make the mandatory distributions can result in an additional penalty
tax of 50% of the excess of the amount required to be distributed over the
amount that was actually distributed.
IRAs may receive rollover contributions from other Individual Retirement
Accounts and Individual Retirement Annuities, from Tax Sheltered Annuities, and
from qualified retirement plans, including 401(k) plans.
For further details regarding IRAs, please refer to the disclosure statement
provided when the IRA was established.
SIMPLIFIED EMPLOYEE PENSION IRAS (SEP IRAS)
A SEP IRA is a written plan established by an employer for the benefit of
employees which permits the employer to make contributions to an IRA established
for the benefit of each employee.
An employee may make deductible contributions to a SEP IRA in the same way, and
with the same restrictions and limitations, as for an IRA. In addition, the
employer may make contributions to the SEP IRA, subject to dollar and percentage
limitations imposed by both the Internal Revenue Code and the written plan.
A SEP IRA plan established by an employer must satisfy certain requirements:
- - minimum participation rules;
- - top-heavy contribution rules;
- - nondiscriminatory allocation rules; and
- - requirements regarding a written allocation formula.
In addition, the plan cannot restrict withdrawals of non-elective contributions,
and must restrict withdrawals of elective contributions before March 15th of the
following year.
SIMPLE IRAS
18
<PAGE> 19
A Simple IRA is an individual retirement annuity which is funded exclusively by
a qualified salary reduction arrangement and satisfies the following:
- - vesting requirements,
- - participation requirements; and
- - administrative requirements.
The funds contributed to a Simple IRA cannot be commingled with funds in IRAs or
SEP IRAs.
A Simple IRA cannot receive rollover distributions except from another Simple
IRA.
ROTH IRAS
Roth IRA contracts are contracts that are issued by insurance companies and
satisfy the following requirements:
- - the contract is not transferable by the owner;
- - the premiums are not fixed;
- - the annual premium cannot exceed $2,000 (although rollovers of greater
amounts from other Roth IRAs and IRAs can be received);
- - the entire interest of the owner in the contract is nonforfeitable; and
- - after the death of the owner, certain distribution requirements may be
imposed to ensure distribution of the entire balance in the contract
within the statutory period of time.
A Roth IRA can receive a rollover from an IRA; however, the amount rolled over
from the IRA to the Roth IRA is required to be included in the owner's federal
gross income at the time of the rollover, and will be subject to federal income
tax.
There are income limitations on eligibility to participate in a Roth IRA and
additional income limitations for eligibility to roll over amounts from an IRA
to a Roth IRA. For further details regarding Roth IRAs, please refer to the
disclosure statement provided when the Roth IRA was established.
TAX SHELTERED ANNUITIES
Certain tax-exempt organizations (described in section 501(c)(3) of the Internal
Revenue Code) and public school systems may establish a plan under which annuity
contracts can be purchased for their employees. These annuity contracts are
often referred to as Tax Sheltered Annuities.
Purchase payments made to Tax Sheltered Annuities are excludible from the income
of the employee, up to statutory maximum amounts. These amounts should be set
forth in the plan adopted by the employer.
The owner's interest in the contract is nonforfeitable (except for failure to
pay premiums) and cannot be transferred. Certain minimum distribution
requirements must be satisfied after the owner attains the age of 70 1/2, and
after the death of the owner. Additional distribution requirements may be
imposed to ensure distribution of the entire balance in the contract within the
required period of time.
QUALIFIED PLANS
Contracts that are owned by Qualified Plans are not intended to confer tax
benefits on the beneficiaries of the plan; they are used as investment vehicles
for the plan. The income tax consequences to the beneficiary of a Qualified Plan
are controlled by the operation of the plan, not by operation of the assets in
which the plan invests.
Beneficiaries of Qualified Plans should contact their employer and/or trustee of
the plan to obtain and review the plan, trust, summary plan description and
other documents for the tax and other consequences of being a participant in a
qualified plan.
19
<PAGE> 20
INVESTING IN THE CONTRACT
THE VARIABLE ACCOUNT AND UNDERLYING MUTUAL FUNDS
Nationwide Variable Account-9 is a variable account that invests in the
underlying mutual funds listed in Appendix A. Nationwide established the
variable account on May 22, 1997, pursuant to Ohio law. Although the variable
account is registered with the SEC as a unit investment trust pursuant to the
Investment Company Act of 1940 ("1940 Act"), the SEC does not supervise the
management of Nationwide or the variable account.
Income, gains, and losses credited to, or charged against, the variable account
reflect the variable account's own investment experience and not the investment
experience of Nationwide's other assets. The variable account's assets are held
separately from Nationwide's assets and are not chargeable with liabilities
incurred in any other business of Nationwide. Nationwide is obligated to pay all
amounts promised to contract owners under the contracts.
The variable account is divided into sub-accounts, each corresponding to a
single underlying mutual fund. Nationwide uses the assets of each sub-account to
buy shares of the underlying mutual funds based on contract owner instructions.
There are two sub-accounts for each underlying mutual fund. One sub-account
contains shares attributable to accumulation units under Non-Qualified
Contracts. The other contains shares attributable to accumulation units under
Investment-only Contracts, Individual Retirement Annuities, Simple IRAs, SEP
IRAs, Roth IRAs, and Tax Sheltered Annuities.
Each underlying mutual fund's prospectus contains more detailed information
about that fund. Prospectuses for the underlying mutual funds should be read in
conjunction with this prospectus.
Underlying mutual funds in the variable account are NOT publicly traded mutual
funds. They are only available as investment options in variable life insurance
policies or variable annuity contracts issued by life insurance companies, or in
some cases, through participation in certain qualified pension or retirement
plans.
The investment advisers of the underlying mutual funds may manage publicly
traded mutual funds with similar names and investment objectives. However, the
underlying mutual funds are NOT directly related to any publicly traded mutual
fund. Contract owners should not compare the performance of a publicly traded
fund with the performance of underlying mutual funds participating in the
variable account. The performance of the underlying mutual funds could differ
substantially from that of any publicly traded funds.
Voting Rights
Contract owners who have allocated assets to the underlying mutual funds are
entitled to certain voting rights. Nationwide will vote contract owner shares at
special shareholder meetings based on contract owner instructions. However, if
the law changes and Nationwide is allowed to vote in its own right, it may elect
to do so.
Contract owners with voting interests in an underlying mutual fund will be
notified of issues requiring the shareholders' vote as soon as possible before
the shareholder meeting. Notification will contain proxy materials and a form
with which to give Nationwide voting instructions. Nationwide will vote shares
for which no instructions are received in the same proportion as those that are
received.
The number of shares which a contract owner may vote is determined by dividing
the cash value of the amount they have allocated to an underlying mutual fund by
the net asset value of that underlying mutual fund. Nationwide will designate a
date for this determination not more than 90 days before the shareholder
meeting.
Material Conflicts
The underlying mutual funds may be offered through separate accounts of other
insurance companies, as well as through other separate accounts of Nationwide.
Nationwide does not
20
<PAGE> 21
anticipate any disadvantages to this. However, it is possible that a conflict
may arise between the interests of the variable account and one or more of the
other separate accounts in which these underlying mutual funds participate.
Material conflicts may occur due to a change in law affecting the operations of
variable life insurance policies and variable annuity contracts, or differences
in the voting instructions of the contract owners and those of other companies.
If a material conflict occurs, Nationwide will take whatever steps are necessary
to protect contract owners and variable annuity payees, including withdrawal of
the variable account from participation in the underlying mutual fund(s)
involved in the conflict.
Substitution of Securities
Nationwide may substitute, eliminate, or combine shares of another underlying
mutual fund for shares already purchased or to be purchased in the future if
either of the following occurs:
(1) shares of a current underlying mutual fund are no longer available
for investment; or
(2) further investment in an underlying mutual fund is inappropriate.
No substitution, elimination, or combination of shares may take place without
the prior approval of the SEC.
GUARANTEED TERM OPTIONS
Guaranteed Term Options are separate investment options under the contract. A
Guaranteed Term Option prospectus should be read along with this prospectus. The
minimum amount that may be allocated to a Guaranteed Term Option is $1,000.
Allocations to the Guaranteed Term Options are not subject to variable account
charges.
Guaranteed Term Options provide a guaranteed rate of interest over four
different maturity durations: three (3), five (5), seven (7) or ten (10) years.
Note: The guaranteed term may last for up to 3 months beyond the 3, 5, 7, or 10
year period since every guaranteed term will end on the final day of a calendar
quarter.
For the duration selected, Nationwide will declare a guaranteed interest rate.
For contract owners that elect the Extra Value Option, allocations made to the
Guaranteed Term Options for the first seven contract years will be credited a
guaranteed interest rate of 0.45% less than the guaranteed interest rate that
applies to the Guaranteed Term Options if the Extra Value Option is not elected.
That rate will be credited to amounts allocated to the Guaranteed Term Option
UNLESS a distribution is taken before the maturity date. If a distribution
occurs before the maturity date, the amount distributed will be subject to a
market value adjustment. A market value adjustment can increase or decrease the
amount distributed depending on current interest rate fluctuations. No market
value adjustment will be applied if Guaranteed Term Option allocations are held
to maturity.
Because a market value adjustment can affect the value of a distribution, its
effects should be carefully considered before surrendering or transferring from
Guaranteed Term Options. When actual interest rates are higher than the
guaranteed rate, a market value adjustment would reduce the value of the amount
distributed. When actual interest rates are lower than the guaranteed rate, the
value of the amount distributed would increase.
Guaranteed Term Options are available only during the accumulation phase of a
contract. They are not available after the annuitization date. In addition,
Guaranteed Term Options are not available for use with asset rebalancing, Dollar
Cost Averaging, or systematic withdrawals.
Guaranteed Term Options may not be available in every state.
THE FIXED ACCOUNT
The fixed account is an investment option that is funded by assets of
Nationwide's general account. The general account contains all of Nationwide's
assets other than those in other Nationwide separate accounts. It is used to
support Nationwide's annuity and insurance
21
<PAGE> 22
obligations and may contain compensation for mortality and expense risks. The
general account is not subject to the same laws as the variable account and the
SEC has not reviewed material in this prospectus relating to the fixed account.
However, information relating to the fixed account is subject to federal
securities laws relating to accuracy and completeness of prospectus disclosure.
Purchase payments will be allocated to the fixed account by election of the
contract owner.
The investment income earned by the fixed account will be allocated to the
contracts at varying guaranteed interest rate(s) depending on the following
categories of fixed account allocations:
- - New Money Rate - The rate credited on the fixed account allocation when the
contract is purchased or when subsequent purchase payments are made.
Subsequent purchase payments may receive different New Money Rates than the
rate when the contract was issued, since the New Money Rate is subject to
change based on market conditions.
- - Variable Account to Fixed Rate - Allocations transferred from any of the
underlying investment options in the variable account to the fixed account
may receive a different rate. The rate may be lower than the New Money
Rate. There may be limits on the amount and frequency of movements from the
variable account to the fixed account.
- - Renewal Rate - The rate available for maturing fixed account allocations
which are entering a new guarantee period. The contract owner will be
notified of this rate in a letter issued with the quarterly statements when
any of the money in the contract owner's fixed account matures. At that
time, the contract owner will have an opportunity to leave the money in the
fixed account and receive the Renewal Rate or the contract owner can move
the money to any of the other underlying mutual fund options.
- - Dollar Cost Averaging Rate - From time to time, Nationwide may offer a more
favorable rate for an initial purchase payment into a new contract when
used in conjunction with a Dollar Cost Averaging program.
For contract owners that elect the Extra Value Option, payments or transfers
made to the fixed account will, for the first seven contract years, be credited
a guaranteed interest rate of 0.45% less than the crediting rate that applies to
the fixed account if the Extra Value Option is not elected. Nationwide
guarantees, however, that the rate will not be less than 3.0% for any given
year.
All of these rates are subject to change on a daily basis; however, once applied
to the fixed account, the interest rates are guaranteed until the end of the
calendar quarter during which the12 month anniversary of the fixed account
allocation occurs.
Credited interest rates are annualized rates - the effective yield of interest
over a one year period. Interest is credited to each contract on a daily basis.
As a result, the credited interest rate is compounded daily to achieve the
stated effective yield.
The guaranteed rate for any purchase payment will be effective for not less than
twelve months. Nationwide guarantees that the rate will not be less than 3.0%
per year.
Any interest in excess of 3.0% will be credited to fixed account allocations at
Nationwide's sole discretion. The contract owner assumes the risk that interest
credited to fixed account allocations may not exceed the minimum guarantee of
3.0% for any given year.
Nationwide guarantees that the fixed account contract value will not be less
than the amount of the purchase payments allocated to the fixed account, plus
interest credited as described above, less any surrenders and any applicable
charges including CDSC.
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STANDARD CHARGES AND DEDUCTIONS
MORTALITY AND EXPENSE RISK CHARGE
Nationwide deducts a Mortality and Expense Risk Charge from the variable
account. This amount is computed on a daily basis and is equal to an annual rate
of 0.95% of the daily net assets of the variable account.
The Mortality Risk Charge compensates Nationwide for guaranteeing the annuity
purchase rates of the contracts. This guarantee ensures that the annuity
purchase rates will not change regardless of the death rates of annuity payees
or the general population. The Mortality Risk Charge also compensates Nationwide
for risks assumed in connection with the standard death benefit, but only
partially compensates Nationwide in connection with the two optional death
benefits, for which there are separate charges.
The Expense Risk Charge compensates Nationwide for guaranteeing that charges
will not increase regardless of actual expenses.
If the Mortality and Expense Risk Charge is insufficient to cover actual
expenses, the loss is borne by Nationwide.
CONTINGENT DEFERRED SALES CHARGE
No sales charge deduction is made from the purchase payments when amounts are
deposited into the contracts. However, if any part of the contract is
surrendered, Nationwide will deduct a CDSC. The CDSC will not exceed 7% of
purchase payments surrendered.
The CDSC is calculated by multiplying the applicable CDSC percentage (noted
below) by the amount of purchase payments surrendered. For purposes of
calculating the CDSC, surrenders are considered to come first from the oldest
purchase payment made to the contract, then the next oldest purchase payment,
and so forth. Earnings are not subject to the CDSC, but may not be distributed
prior to the distribution of all purchase payments. (For tax purposes, a
surrender is usually treated as a withdrawal of earnings first.)
The CDSC applies as follows:
- ----------------------------- ---------------------------
Number of Years from Date CDSC
of Purchase Payment Percentage
- ----------------------------- ---------------------------
0 7%
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 0%
The CDSC is used to cover sales expenses, including commissions (maximum of 6%
of purchase payments), production of sales material, and other promotional
expenses. If expenses are greater than the CDSC, the shortfall will be made up
from Nationwide's general assets, which may indirectly include portions of the
variable account charges, since Nationwide may generate a profit from these
charges.
All or a portion of any withdrawal may be subject to federal income taxes.
Contract owners taking withdrawals before age 59 1/2 may be subject to a 10%
penalty tax.
Waiver of Contingent Deferred Sales Charge
Each contract year, the contract owner may withdraw without a CDSC the greater
of:
(a) 10% of all purchase payments; or
(b) any amount withdrawn to meet minimum distribution requirements under
the Internal Revenue Code.
This CDSC-free privilege is non-cumulative. Free amounts not taken during any
given contract year cannot be taken as free amounts in a subsequent contract
year.
In addition, no CDSC will be deducted:
(1) upon the annuitization of contracts which have been in force for at
least two years;
(2) upon payment of a death benefit; or
(3) from any values which have been held under a contract for at least 7
years.
No CDSC applies to transfers among sub-accounts or between or among the
Guaranteed Term Options, the fixed account, or the variable account. Nationwide
may waive the CDSC if a contract described in this prospectus is
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exchanged for another Nationwide contract (or a contract of any of its
affiliated insurance companies). A CDSC may apply to the contract received in
the exchange.
A contract held by a Charitable Remainder Trust may withdraw CDSC-free the
greater of (a) or (b), where:
(a) is the amount which would otherwise be available for withdrawal
without a CDSC; and
(b) is the difference between the total purchase payments made to the
contract as of the date of the withdrawal (reduced by previous
withdrawals) and the contract value at the close of the day prior to
the date of the withdrawal.
The CDSC will not be eliminated if to do so would be unfairly discriminatory or
prohibited by state law.
PREMIUM TAXES
Nationwide will charge against the contract value any premium taxes levied by a
state or other government entity. Premium tax rates currently range from 0% to
5.0%. This range is subject to change. The method used to assess premium tax
will be determined by Nationwide at its sole discretion in compliance with state
law.
If applicable, Nationwide will deduct premium taxes from the contract either at:
(1) the time the contract is surrendered;
(2) annuitization; or
(3) such earlier date as Nationwide becomes subject to premium taxes.
Premium taxes may be deducted from death benefit proceeds.
OPTIONAL CONTRACT BENEFITS, CHARGES AND DEDUCTIONS
REDUCED PURCHASE PAYMENT OPTION
If the contract owner chooses the Reduced Purchase Payment Option, Nationwide
will deduct an additional charge equal to an annualized rate of 0.25% of the
daily net assets of the variable account. In return, the minimum initial
purchase payment for that contract will be $1,000 and minimum subsequent
purchase payment will be $25. This option is not available for Investment-only
Contracts.
The contract owner may elect to terminate this option if, throughout a period of
at least two years and continuing until such election, the total of all purchase
payments, less surrenders and withdrawals, is maintained at $25,000 or more.
This election must be submitted in writing on a form provided by Nationwide.
Termination of the rider will occur as of the date on the election form, and the
charge for this rider will no longer be assessed. Subsequent purchase payments,
if any, will be subject to the terms of the contract and must be at least
$1,000.
CDSC OPTIONS AND CHARGES
Five Year CDSC Option
For an additional charge at an annualized rate of 0.15% of the daily net assets
of the variable account, the contract owner may choose the Five Year CDSC
Option.
Under this option, CDSC will not exceed 7% of purchase payments surrendered.
The Five Year CDSC Option applies as follows:
---------------------------------------------------
Number of Years from Date of CDSC
Purchase Payment Percentage
---------------------------------------------------
0 7%
1 7%
2 6%
3 4%
4 2%
5 0%
For contracts issued in the State of New York, this option is available only for
contracts issued as Roth IRAs and is not available when the Extra Value Option
is elected.
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Additional Withdrawal without Charge and Disability Waiver
Each contract has a standard 10% CDSC-free withdrawal privilege each year. For
an additional charge at an annualized rate of 0.10% of the daily net assets of
the variable account, the contract owner can withdraw an additional 5% of total
purchase payments each year without incurring a CDSC. This would allow the
contract owner to withdraw a total of 15% of the total of all purchase payments
each year free of CDSC. Like the standard 10% CDSC-free privilege, this
additional withdrawal benefit is non-cumulative.
This option also contains a disability waiver. Nationwide will waive CDSC if a
contract owner (or annuitant if the contract is owned by a non-natural owner) is
disabled after the contract is issued but before reaching age 65. If this waiver
becomes effective due to disability, no additional purchase payments may be made
to the contract.
Additional CDSC Waiver Options for Tax Sheltered Annuities
10 Year and Disability Waiver
For an additional charge at an annualized rate of 0.05% of the daily net
assets of the variable account, the contract owner of a Tax Sheltered
Annuity can purchase the 10 Year and Disability Waiver. Under this option,
Nationwide will waive CDSC if two conditions are met:
(1) the contract owner has been the owner of the contract for 10
years; and
(2) the contract owner has made regular payroll deferrals during the
entire contract year for at least 5 of those 10 years.
This option also contains a disability waiver. Nationwide will waive CDSC
if the contract owner is disabled after the contract is issued but before
reaching age 65. If this waiver becomes effective due to disability, no
additional purchase payments may be made to the contract.
Hardship Waiver
For an additional charge at an annualized rate of 0.15% of the daily net
assets of the variable account, the contract owner of a Tax Sheltered
Annuity can purchase the Hardship Waiver. Under this option, Nationwide
will waive CDSC if the contract owner experiences a hardship (as defined
for purposes of Internal Revenue Code Section (401(k)). The contract owner
may be required to provide proof of hardship.
If this waiver becomes effective, no additional purchase payments may be
made to the contract.
DEATH BENEFIT OPTIONS
If the contract owner chooses an optional death benefit, Nationwide will deduct
a charge equal to an annualized rate of either 0.05% (for the One-Year Step Up
Death Benefit) or 0.10% (for the 5% Enhanced Death Benefit) of the daily net
assets of the variable account, depending upon which option was chosen.
Nationwide may lower either of these charges at any time without notifying
contract owners. Further information about these benefits can be found in the
"Death Benefit Payment" provision. All of the following death benefit options
may not be available in every state.
One-Year Step Up Death Benefit
If the annuitant dies before the annuitization date, the death benefit will be
the greatest of:
(1) the contract value;
(2) the total of all purchase payments, less an adjustment for amounts
surrendered; or
(3) the highest contract value on any contract anniversary before the
annuitant's 86th birthday, less an adjustment for amounts subsequently
surrendered, plus purchase payments received after that contract
anniversary.
The adjustment for amounts surrendered will reduce items (2) and (3) above in
the same proportion that the contract value was reduced on the date(s) of the
partial surrender(s).
5% Enhanced Death Benefit
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If the annuitant dies before the annuitization date, the death benefit will be
the greater of:
(1) the contract value; or
(2) the total of all purchase payments, less any amounts surrendered,
accumulated at 5% simple interest from the date of each purchase
payment or surrender to the most recent contract anniversary prior to
the annuitant's 86th birthday, less an adjustment for amounts
subsequently surrendered, plus purchase payments received since that
contract anniversary.
Long Term Care Facility Provisions
If the contract owner chooses an optional death benefit, no CDSC will be charged
if:
- The third contract anniversary has passed; and
- The contract owner has been confined to a long-term care facility or
hospital for a continuous 90-day period that began after the contract
issue date.
Additionally, if the contract owner chooses an optional death benefit, no CDSC
will be charged if:
- The contract owner has been diagnosed by a physician to have a
terminal illness; and
- Nationwide receives and records a letter from that physician
indicating such diagnosis.
Written notice and proof of terminal illness or confinement for 90 days in a
hospital or long term care facility must be received in a form satisfactory to
Nationwide and recorded at Nationwide's home offer prior to waiver of the CDSC.
For those contracts that have a non-natural person as contract owner as an agent
for a natural person, the annuitant may exercise the rights of the contract
owner for the purposes described in this provision. If the non-natural contract
owner does NOT own the contract as an agent for a natural person (e.g., the
contract owner is a corporation or a trust for the benefit of an entity), the
annuitant may NOT exercise the rights described in this provision.
GUARANTEED MINIMUM INCOME BENEFIT OPTION
For an additional charge at an annualized rate of 0.45% of the daily net assets
of the variable account, the contract owner can purchase a Guaranteed Minimum
Income Benefit option at the time of application. The Guaranteed Minimum Income
Benefit option provides for a minimum guaranteed value that may replace the
contract value as the amount to be annuitized under certain circumstances. A
Guaranteed Minimum Income Benefit may afford protection against unfavorable
investment performance.
EXTRA VALUE OPTION
- ---------------------------------------------------------
THE EXTRA VALUE OPTION MAY NOT BE AVAILABLE IN ALL
STATES. APPLICANTS SHOULD BE AWARE OF THE FOLLOWING
PRIOR TO ELECTING THE EXTRA VALUE OPTION:
1. ELECTING THE EXTRA VALUE OPTION WILL BE BENEFICIAL FOR CONTRACT OWNERS
ONLY IF THE INVESTMENT PERFORMANCE OF THE UNDERLYING MUTUAL FUNDS, AND
RATE OF RETURN IN THE FIXED ACCOUNT AND GUARANTEED TERM OPTIONS, IS
GREAT ENOUGH TO COMPENSATE FOR THE REDUCTION IN CONTRACT VALUE DUE TO
THE 0.45% CHARGE;
2. NATIONWIDE MAY MAKE A PROFIT FROM THE CHARGE ASSESSED BY THE EXTRA
VALUE OPTION;
3. BECAUSE THE 0.45% CHARGE ASSOCIATED WITH THE EXTRA VALUE OPTION WILL
BE ASSESSED AGAINST THE ENTIRE VARIABLE ACCOUNT VALUE FOR THE FIRST
SEVEN (7) CONTRACT YEARS, CONTRACT OWNERS WHO ANTICIPATE MAKING
ADDITIONAL PURCHASE PAYMENTS AFTER THE FIRST CONTACT YEAR SHOULD
CAREFULLY EXAMINE THE EXTRA VALUE OPTION AND CONSULT THEIR FINANCIAL
ADVISER REGARDING ITS DESIRABILITY;
4. ONCE THE EXTRA VALUE OPTION IS ELECTED, IT MAY NOT BE REVOKED; AND
5. NATIONWIDE MAY RECAPTURE ALL OR PART OF THE AMOUNT CREDITED IN THE
EVENT OF EARLY SURRENDERS, INCLUDING REVOCATION OF THE CONTRACT DURING
THE CONTRACTUAL FREE-LOOK PERIOD.
For an additional charge at an annualized rate of 0.45% of the daily net assets
of the variable account, the contract owner can purchase an
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Extra Value Option at the time of application. Nationwide may reduce this
charge.
In exchange, Nationwide will apply a credit of 3% of the purchase payment(s)
made during the first 12 months the contract is in force. This credit is funded
from Nationwide's general account. The amount credited will be allocated among
the sub-accounts, the fixed account, and/or the Guaranteed Term Options in the
same proportion that the purchase payment is allocated to the contract.
The option of electing the Extra Value Option allows prospective contract owners
to choose between two different variable account charge structures for the first
seven years of the contract.
If the credit is elected and no additional contract options are elected, the
total variable account charges under the contract will be an annualized rate of
1.40% of the daily net assets of the variable account for the first seven years
of the contract. If the Extra Value Option is not elected, total variable
account charges will be an annualized rate of 0.95% (assuming no other contract
options are elected) of the daily net assets of the variable account for the
first seven years of the contract and thereafter.
Under these circumstances, the decision to elect or decline the Extra Value
Option will depend primarily on whether the prospective contract owner believes
it is more advantageous to have:
(a) a 1.40% variable account charge for the first seven years of the
contract, plus the Extra Value Option credit; or
(b) a 0.95% variable account charge for the first seven years of the
contract, without the Extra Value Option credit.
The following table demonstrates hypothetical rates of return for contracts with
the Extra Value Option and no other optional benefits (total variable account
asset charges of 1.40%) and contracts with no additional contract options
whatsoever (total variable account asset charges of 0.95%). The figures are
based upon:
(a) a $100,000 initial purchase payment with no additional purchase
payments;
(b) the deduction of variable account charges of an annualized rate of
0.95% (base contract) and 1.40% (contract with only the Extra Value
Option) of the daily net asset value; and
(c) an assumed annual rate of return before charges of 7.75% for all years
for a period of 10 years.
7.75% RATE OF RETURN
- ------------------------------------------------------------
Contract Year Base Contract Contract With Extra
(0.95% total asset Value Option (1.40%
charges) total asset charges)
- ------------------------------------------------------------
1 $106,800 $109,541
2 $114,062 $116,496
3 $121,819 $123,894
4 $130,102 $131,761
5 $138,949 $140,128
6 $148,398 $149,026
7 $158,489 $158,489
8 $169,266 $169,266
9 $180,776 $180,776
10 $193,069 $193,069
Generally, the higher the rate of return, the more advantageous the Extra Value
Option becomes and vice versa. The table above assumes no additional purchase
payments are made to the contract after the first contract anniversary. If
subsequent purchase payments are made to the contract after the first contract
anniversary (assuming a rate of return of 7.75%) the number of contract years
needed to "break-even" increases in direct correlation with the amount of
subsequent purchase payments made to the contract after the first contract
anniversary.
Amounts credited to the contract in connection with the Extra Value Option may
be recaptured if:
(a) the contract owner elects to surrender the contract pursuant to the
contractual free-look provisions; or
(b) withdrawals that are subject to a CDSC are taken before the end of the
seventh contract year.
If the contract is surrendered pursuant to the contractual free-look, Nationwide
may recapture
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the full credited amount if the contract value, at the time of the request to
surrender, is equal to or greater than the purchase payments made to the
contract. In such a situation, the contract owner is entitled to keep any
earnings. If, however, the contract value is less than the purchase payments
made to the contract, Nationwide will bear the loss.
After the free look period and before the seventh contract anniversary, any
amounts withdrawn from the contract that are subject to a CDSC subjects a part
of the amount credited to recapture. For example, if a contract owner withdraws
13% of purchase payments made within the first contract year, 3% of the amount
credited will be recaptured by Nationwide, since the contract owner may withdraw
only 10% of purchase payments without a CDSC. This means that the percentage of
the amount credited to be recaptured will be the determined by the percentage of
total purchase payments reflected in the amount surrendered that is subject to
CDSC. The amount recaptured will be taken from the sub-accounts, the fixed
account and/or the Guaranteed Term Options in the same proportion as allocated
by the contract owner at the time of the withdrawal.
For contracts issued in the State of New York, after the free look period and
before the seventh contract anniversary, amounts credited under the contract may
be recaptured whenever withdrawals are made that are subject to a CDSC in
accordance with the following:
- ----------------------- -----------------------------------
(EXTRA VALUE AMOUNT) PERCENTAGE
CONTRACT YEARS OF FIRST YEAR PURCHASE PAYMENTS
----------------------- -----------------------------------
1 and 2 3%
3,4 and 5 2%
6 and 7 1%
After year 7 0%
The percentage of the amount credited to be recaptured will be determined by the
percentage of total purchase payments reflected in the amount surrendered that
is subject to CDSC. The amount recaptured will be taken from the sub-accounts
and the fixed account in the same proportion as allocated by the contract owner
at the same time of the withdrawal.
NO AMOUNT CREDITED WILL BE SUBJECT TO RECAPTURE IF THE WITHDRAWAL IS NOT SUBJECT
TO A CDSC OR IF A DISTRIBUTION IS TAKEN AS A RESULT OF DEATH, ANNUITIZATION, OR
TO MEET MINIMUM DISTRIBUTION REQUIREMENTS UNDER THE INTERNAL REVENUE CODE. IN
ADDITION, NO RECAPTURE WILL TAKE PLACE AFTER THE SEVENTH CONTRACT YEAR.
After the end of the first seven contract years, the 0.45% charge for the Extra
Value Option will no longer be assessed and the amount credited will be fully
vested. Nationwide intends to administer the removal of the 0.45% rider option
charge by decreasing the number of units and increasing the unit value of the
sub-accounts in which the contract owner was invested at the end of the seventh
contract year. The elimination of the 0.45% charge and the adjustment in the
number of units and unit values will not affect contract owners' contract
values.
Upon annuitization of the contract, any amounts assessed for any rider options
elected will be waived and only those charges applicable to the base contract
will be assessed.
CONTRACT OWNERSHIP
The contract owner has all rights under the contract. Purchasers who name
someone other than themselves as the contract owner will have no rights under
the contract.
Contract owners of Non-Qualified Contracts may name a new contract owner at any
time before the annuitization date. Any change of contract owner automatically
revokes any prior contract owner designation. Changes in contract ownership may
result in federal income taxation and may be subject to state and federal gift
taxes.
A change in contract ownership must be submitted in writing and recorded at
Nationwide's home office. Once recorded, the change will be effective as of the
date signed. However, the change will not affect any payments made or actions
taken by Nationwide before it was recorded.
The contract owner may also request a change in the annuitant, contingent
annuitant, contingent owner, beneficiary, or contingent beneficiary
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before the annuitization date. These changes must be:
- - on a Nationwide form;
- - signed by the contract owner; and
- - received at Nationwide's home office before the annuitization date.
Nationwide must review and approve any change requests. If the contract owner is
not a natural person and there is a change of the annuitant, distributions will
be made as if the contract owner died at the time of the change.
On the annuitization date, the annuitant will become the contract owner, unless
the contract owner is a Charitable Remainder Trust.
JOINT OWNERSHIP
Joint owners each own an undivided interest in the contract.
Contract owners can name a joint owner at any time before annuitization subject
to the following conditions:
- - joint owners can only be named for Non-Qualified Contracts;
- - joint owners must be spouses at the time joint ownership is requested,
unless state law requires Nationwide to allow non-spousal joint owners;
- - the exercise of any ownership right in the contract will generally require
a written request signed by both joint owners;
- - an election in writing signed by both contract owners must be made to
authorize Nationwide to allow the exercise of ownership rights
independently by either joint owner; and
- - Nationwide will not be liable for any loss, liability, cost, or expense for
acting in accordance with the instructions of either joint owner.
CONTINGENT OWNERSHIP
The contingent owner is entitled to certain benefits under the contract if a
contract owner who is NOT the annuitant dies before the annuitization date, and
there is no surviving joint owner.
The contract owner may name or change a contingent owner at any time before the
annuitization date. To change the contingent owner, a written request must be
submitted to Nationwide. Once Nationwide has recorded the change, it will be
effective as of the date it was signed, whether or not the contract owner was
living at the time it was recorded. The change will not affect any action taken
by Nationwide before the change was recorded.
ANNUITANT
The annuitant is the person who will receive annuity payments and upon whose
continuation of life any annuity payment involving life contingencies depends.
This person must be age 85 or younger at the time of contract issuance (age 83
or younger if electing a Guaranteed Minimum Income Benefit option), unless
Nationwide approves a request for an annuitant of greater age. The annuitant may
be changed before the annuitization date with Nationwide's consent.
BENEFICIARY AND CONTINGENT BENEFICIARY
The beneficiary is the person who is entitled to the death benefit if the
annuitant dies before the annuitization date and there is no joint owner. The
contract owner can name more than one beneficiary. Multiple beneficiaries will
share the death benefit equally, unless otherwise specified.
The contract owner may change the beneficiary or contingent beneficiary during
the annuitant's lifetime by submitting a written request to Nationwide. Once
recorded, the change will be effective as of the date it was signed, whether or
not the annuitant was living at the time it was recorded. The change will not
affect any action taken by Nationwide before the change was recorded.
OPERATION OF THE CONTRACT
MINIMUM INITIAL AND SUBSEQUENT PURCHASE PAYMENTS
- -------------------- ----------------- ------------------
MINIMUM INITIAL MINIMUM
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CONTRACT PURCHASE PAYMENT SUBSEQUENT
TYPE PAYMENTS
- -------------------- ----------------- ------------------
Investment-only $15,000 $1,000
Non-Qualified $15,000 $1,000
IRA $15,000 $1,000
Roth IRA $15,000 $1,000
Tax Sheltered $15,000 $1,000
Annuity
Charitable $15,000 $1,000
Remainder Trust
SEP IRA $15,000 $1,000
Simple IRA $15,000 $1,000
Subsequent purchase payments are not permitted for contracts issued in the State
of Oregon and may not be permitted in other states under certain circumstances.
If the contract owner elects the Reduced Purchase Payment Option, minimum
initial and subsequent purchase payments will be reduced accordingly.
If the contract owner elects the Extra Value Option, amounts credited to the
contract may not be used to meet the minimum initial and subsequent purchase
payment requirements.
Guaranteed Term Options
Guaranteed Term Options are separate investment options under the contract. The
minimum amount that may be allocated to a Guaranteed Term Option is $1,000.
PRICING
Initial purchase payments allocated to sub-accounts will be priced at the
accumulation unit value determined no later than 2 business days after receipt
of an order to purchase if the application and all necessary information are
complete. If the application is not complete, Nationwide may retain a purchase
payment for up to 5 business days while attempting to complete it. If the
application is not completed within 5 business days, the prospective purchaser
will be informed of the reason for the delay. The purchase payment will be
returned unless the prospective purchaser specifically allows Nationwide to hold
the purchase payment until the application is completed.
Subsequent purchase payments will be priced based on the next available
accumulation unit value after the payment is received. The cumulative total of
all purchase payments under contracts issued by Nationwide on the life of any
one annuitant cannot exceed $1,000,000 without Nationwide's prior consent.
Purchase payments will not be priced when the New York Stock Exchange is closed
or on the following nationally recognized holidays:
- - New Year's Day - Independence
Day
- - Martin Luther King, Jr. - Labor Day
Day
- - Presidents' Day - Thanksgiving
- - Good Friday - Christmas
- - Memorial Day
Nationwide also will not price purchase payments if:
(1) trading on the New York Stock Exchange is restricted;
(2) an emergency exists making disposal or valuation of securities held in the
variable account impracticable; or
(3) the SEC, by order, permits a suspension or postponement for the protection
of security holders.
Rules and regulations of the SEC will govern as to when the conditions described
in (2) and (3) exist. If Nationwide is closed on days when the New York Stock
Exchange is open, contract value may be affected since the contract owner will
not have access to their account.
ALLOCATION OF PURCHASE PAYMENTS
Nationwide allocates purchase payments to sub-accounts, the fixed account,
and/or Guaranteed Term Options as instructed by the contract owner. Shares of
the underlying mutual funds allocated to the sub-accounts are purchased at net
asset value, then converted into accumulation units. Contract owners can change
allocations or make exchanges among the sub-accounts, fixed account or
Guaranteed Term Options. However, no change may be made that would result in an
amount less than 1% of the purchase payments being allocated to any sub-account.
Certain transactions may be subject to conditions imposed by the underlying
mutual funds, as well as those set forth in the contract.
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DETERMINING THE CONTRACT VALUE
The contract value is the sum of:
(1) the value of amounts allocated to the sub-accounts of the variable
account; and
(2) amounts allocated to the fixed account; and
(3) amounts allocated to a Guaranteed Term Option.
If part or all of the contract value is surrendered, or charges are assessed
against the whole contract value, Nationwide will deduct a proportionate amount
from each sub-account, the fixed account and any Guaranteed Term Option based on
current cash values.
Determining Variable Account Value - Valuing an Accumulation Unit
Purchase payments or transfers allocated to sub-accounts are accounted for in
accumulation units. Accumulation unit values (for each sub-account) are
determined by calculating the net investment factor for the underlying mutual
funds for the current valuation period and multiplying that result with the
accumulation unit values determined on the previous valuation period.
Nationwide uses the net investment factor as a way to calculate the investment
performance of a sub-account from valuation period to valuation period. For each
sub-account, the net investment factor shows the investment performance of the
underlying mutual fund in which a particular sub-account invests, including the
charges assessed against that sub-account for a valuation period.
The net investment factor for any particular sub-account is determined by
dividing (a) by (b), and then subtracting (c) from the result, where:
(a) is:
(1) the net asset value of the underlying mutual fund as of the end
of the current valuation period; and
(2) the per share amount of any dividend or income distributions made
by the underlying mutual fund (if the ex-dividend date occurs
during the current valuation period).
(b) is the net asset value of the underlying mutual fund determined as of
the end of the preceding valuation period.
(c) is a factor representing the daily variable account charges, which may
include charges for contract options chosen by the contract owner. The
factor is equal to an annual rate ranging from 0.95% to 2.70% of the
daily net assets of the variable account, depending on which contract
features the contract owner chooses.
Based on the change in the net investment factor, the value of an accumulation
unit may increase or decrease. Changes in the net investment factor may not be
directly proportional to changes in the net asset value of the underlying mutual
fund shares because of the deduction of variable account charges.
Though the number of accumulation units will not change as a result of
investment experience, the value of an accumulation unit may increase or
decrease from valuation period to valuation period.
Determining Fixed Account Value
Nationwide determines the value of the fixed account by:
(1) adding all amounts allocated to the fixed account, minus amounts
previously transferred or withdrawn; and
(2) adding any interest earned on the amounts allocated.
Determining the Guaranteed Term Option Value
Nationwide determines the value of a Guaranteed Term Option by:
(1) adding all amounts allocated to any Guaranteed Term Option, minus
amounts previously transferred or withdrawn (which may be subject to a
market value adjustment); and
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(2) adding any interest earned on the amounts allocated to any Guaranteed
Term Option.
TRANSFERS PRIOR TO ANNUITIZATION
Transfers from the Fixed Account to the Variable Account or a Guaranteed Term
Option
Fixed account allocations may be transferred to the variable account or to a
Guaranteed Term Option only upon reaching the end of an interest rate guarantee
period. Normally, Nationwide will permit 100% of such fixed account allocations
to be transferred to the variable account or a Guaranteed Term Option; however
Nationwide may, under certain economic conditions and at its discretion, limit
the maximum transferable amount. Under no circumstances will the maximum
transferable amount be less than 10% of the fixed account allocation reaching
the end of an interest rate guarantee period. Transfers of the fixed account
allocations must be made within 45 days after reaching the end of an interest
rate guarantee period.
Contract owners who use Dollar Cost Averaging may transfer from the fixed
account to the variable account (but not to Guaranteed Term Options) under the
terms of that program (see "Dollar Cost Averaging").
Transfers to the Fixed Account
Variable account allocations may be transferred to the fixed account at any
time. Normally, Nationwide will not restrict transfers from the variable account
to the fixed account; however, Nationwide may establish a maximum transfer limit
from the variable account to the fixed account. Except as noted below, under no
circumstances will the transfer limit be less than 10% of the current value of
the variable account, less any transfers made in the 12 months preceding the
date the transfer is requested, but not including transfers made prior to the
imposition of the transfer limit. However, where permitted by state law,
Nationwide reserves the right to refuse transfers or purchase payments to the
fixed account (whether from the variable account or a Guaranteed Term Option)
when the fixed account value is greater than or equal to 30% of the contract
value at the time the purchase payment is made or the transfer is requested.
Transfers from a Guaranteed Term Option
Transfers from a Guaranteed Term Option prior to maturity are subject to a
market value adjustment.
Transfers Among the Sub-Accounts
Allocations may be transferred among the sub-accounts once per valuation period.
TRANSFERS AFTER ANNUITIZATION
After annuitization, transfers may only be made on the anniversary of the
annuitization date.
TRANSFER REQUESTS
Nationwide will accept transfer requests in writing or, in those states that
allow them, over the telephone. Nationwide will use reasonable procedures to
confirm that telephone instructions are genuine and will not be liable for
following telephone instructions that it reasonably determined to be genuine.
Nationwide may withdraw the telephone exchange privilege upon 30 days written
notice to contract owners.
Amounts transferred to the variable account will receive the accumulation unit
value next determined after the transfer request is received.
Interest Rate Guarantee Period
The interest rate guarantee period is the period of time that the fixed account
interest rate is guaranteed to remain the same. Within 45 days of the end of an
interest rate guarantee period, transfers may be made from the fixed account to
the variable account or to the Guaranteed Term Options. Nationwide will
determine the amount that may be transferred and will declare this amount at the
end of the guarantee period. This amount will not be less than 10% of the amount
in the fixed account that is maturing.
For new purchase payments allocated to the fixed account, or transfers to the
fixed account from the variable account or a Guaranteed Term Option, this period
begins on the date of deposit or transfer and ends on the one year anniversary
of the deposit or transfer. The guaranteed
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interest rate period may last for up to 3 months beyond the 1 year anniversary
because guaranteed terms end on the last day of a calendar quarter.
The interest rate guarantee period does not in any way refer to interest rate
crediting practices connected with Guaranteed Term Options.
During an interest rate guarantee period, transfers cannot be made from the
fixed account, and amounts transferred to the fixed account must remain on
deposit.
Market Timing Firms
Some contract owners may use market timing firms or other third parties to make
transfers on their behalf. Generally, in order to take advantage of perceived
market trends, market timing firms will submit transfer or exchange requests on
behalf of multiple contract owners at the same time. Sometimes this can result
in unusually large transfers of funds. These large transfers might interfere
with the ability of Nationwide or the underlying mutual fund to process
transactions. This can potentially disadvantage contract owners not using market
timing firms. To avoid this, Nationwide may modify transfer and exchange rights
of contract owners who use market timing firms (or other third parties) to
transfer or exchange funds on their behalf.
The exchange and transfer rights of individual contract owners will not be
modified in any way when instructions are submitted directly by the contract
owner, or by the contract owner's representative (as authorized by the execution
of a valid Nationwide Limited Power of Attorney Form).
To protect contract owners, Nationwide may refuse exchange and transfer
requests:
- - submitted by any agent acting under a power of attorney on behalf of more
than one contract owner; or
- - submitted on behalf of individual contract owners who have executed
pre-authorized exchange forms which are submitted by market timing firms
(or other third parties) on behalf of more than one contract owner at the
same time.
Nationwide will not restrict exchange rights unless Nationwide believes it to be
necessary for the protection of all contract owners.
RIGHT TO REVOKE
Contract owners have a ten day "free look" to examine the contract. The contract
may be returned to Nationwide's home office for any reason within ten days of
receipt and Nationwide will refund the contract value or another amount required
by law. The refunded contract value will reflect the deduction of any contract
charges, unless otherwise required by law. All Individual Retirement Annuity,
SEP IRA, Simple IRA and Roth IRA refunds will be a return of purchase payments.
State and/or federal law may provide additional free look privileges.
Contract owners who have elected the Extra Value Option and subsequently
terminate the contract under the free look provision will forfeit any amounts
credited to the contract. For those jurisdictions that allow a return of
contract value, the contract owner will retain any earnings attributable to the
amount credited; all losses attributable to the amount credited will be incurred
by Nationwide.
Liability of the variable account under this provision is limited to the
contract value in each sub-account on the date of revocation. Any additional
amounts refunded to the contract owner will be paid by Nationwide.
SURRENDER (REDEMPTION)
Contract owners may surrender some or all of their contract value before the
earlier of the annuitization date or the annuitant's death. Surrender requests
must be in writing and Nationwide may require additional information. When
taking a full surrender, the contract must accompany the written request.
Nationwide may require a signature guarantee.
If the Extra Value Option has been elected, and the amount withdrawn is subject
to a CDSC,
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then for the first seven contract years only, a portion of the amount credited
under the Extra Value Option may be recaptured. No recapture will take place
after the seventh contract year. The amount credited will not, however, be
subject to recapture if a withdrawal not subject to the CDSC is being made (see
"Extra Value Option").
Nationwide will pay any amounts surrendered from the sub-accounts within 7 days.
However, Nationwide may suspend or postpone payment when it is unable to price a
purchase payment or transfer.
PARTIAL SURRENDERS (PARTIAL REDEMPTIONS)
Nationwide will surrender accumulation units from the sub-accounts and an amount
from the fixed account and Guaranteed Term Options. The amount withdrawn from
each investment option will be in proportion to the value in each option at the
time of the surrender request.
A CDSC may apply. The contract owner may take the CDSC from either:
(a) the amount requested; or
(b) the contract value remaining after the contract owner has received the
amount requested.
If the contract owner does not make a specific election, any applicable CDSC
will be taken from the contract value remaining after the contract owner has
received the amount requested.
The CDSC deducted is a percentage of the amount requested by the contract owner.
Amounts deducted for CDSC are not subject to subsequent CDSC.
FULL SURRENDERS (FULL REDEMPTIONS)
The contract value upon full surrender may be more or less than the total of all
purchase payments made to the contract. The contract value will reflect variable
account charges, underlying mutual fund charges and the investment performance
of the underlying mutual funds. A CDSC may apply.
SURRENDERS UNDER A TEXAS OPTIONAL RETIREMENT PROGRAM OR A LOUISIANA OPTIONAL
RETIREMENT PLAN
Redemption restrictions apply to contracts issued under the Texas Optional
Retirement Program or the Louisiana Optional Retirement Plan.
The Texas Attorney General has ruled that participants in contracts issued under
the Texas Optional Retirement Program may only take withdrawals if:
- - the participant dies;
- - the participant retires;
- - the participant terminates employment due to total disability; or
- - the participant that works in a Texas public institution of higher education
terminates employment.
A participant under a contract issued under the Louisiana Optional Retirement
Plan may only take distributions from the contract upon retirement or
termination of employment. All retirement benefits under this type of plan must
be paid as lifetime income; lump sum cash payments are not permitted, except for
death benefits.
Due to the restrictions described above, a participant under either of these
plans will not be able to withdraw cash values from the contract unless one of
the applicable conditions is met. However, contract value may be transferred to
other carriers, subject to any CDSC.
Nationwide issues this contract to participants in the Texas Optional Retirement
Program in reliance upon and in compliance with Rule 6c-7 of the Investment
Company Act of 1940. Nationwide issues this contract to participants in the
Louisiana Optional Retirement Plan in reliance upon and in compliance with an
exemptive order that Nationwide received from the SEC on August 22, 1990.
SURRENDERS UNDER A TAX SHELTERED ANNUITY
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Contract owners of a Tax Sheltered Annuity may surrender part or all of their
contract value before the earlier of the annuitization date or the annuitant's
death, except as provided below:
A. Contract value attributable to contributions made under a qualified cash or
deferred arrangement (within the meaning of Internal Revenue Code Section
402(g)(3)(A)), a salary reduction agreement (within the meaning of Internal
Revenue Code Section 402(g)(3)(C)), or transfers from a Custodial Account
(described in Section 403(b)(7) of the Internal Revenue Code), may be
surrendered only:
1. when the contract owner reaches age 59 1/2, separates from service,
dies, or becomes disabled (within the meaning of Internal Revenue Code
Section 72(m)(7)); or
2. in the case of hardship (as defined for purposes of Internal Revenue
Code Section 401(k)), provided that any such hardship surrender may NOT
include any income earned on salary reduction contributions.
B. The surrender limitations described in Section A also apply to:
1. salary reduction contributions to Tax Sheltered Annuities made for
plan years beginning after December 31, 1988;
2. earnings credited to such contracts after the last plan year beginning
before January 1, 1989, on amounts attributable to salary reduction
contributions; and
3. all amounts transferred from 403(b)(7) Custodial Accounts (except that
earnings and employer contributions as of December 31, 1988 in such
Custodial Accounts may be withdrawn in the case of hardship).
C. Any distribution other than the above, including a ten day free look
cancellation of the contract (when available) may result in taxes,
penalties, and/or retroactive disqualification of a Tax Sheltered Annuity.
In order to prevent disqualification of a Tax Sheltered Annuity after a ten day
free look cancellation, Nationwide will transfer the proceeds to another Tax
Sheltered Annuity upon proper direction by the contract owner.
These provisions explain Nationwide's understanding of current withdrawal
restrictions. These restrictions may change.
Distributions pursuant to Qualified Domestic Relations Orders will not violate
the restrictions stated above.
LOAN PRIVILEGE
The loan privilege is ONLY available to owners of Tax Sheltered Annuities. These
contract owners can take loans from the contract value beginning 30 days after
the contract is issued up to the annuitization date. Loans are subject to the
terms of the contract, the plan, and the Internal Revenue Code. Nationwide may
modify the terms of a loan to comply with changes in applicable law.
MINIMUM & MAXIMUM LOAN AMOUNTS
Contract owners may borrow a minimum of $1,000, unless Nationwide is required by
law to allow a lesser minimum amount. Each loan must individually satisfy the
contract minimum amount.
Nationwide will calculate the maximum nontaxable loan amount based upon
information provided by the participant or the employer. Loans may be taxable if
a participant has additional loans from other plans. The total of all
outstanding loans must not exceed the following limits:
- ---------------- ------------ ---------------------------
CONTRACT MAXIMUM OUTSTANDING LOAN
VALUES BALANCE ALLOWED
- ---------------- ------------ ---------------------------
NON-ERISA PLANS up to up to 80% of contract
$20,000 value (not more than
$10,000)
$20,000 up to 50% of contract
and over value (not more than
$50,000*)
ERISA PLANS All up to 50% of contract
value (not more than
$50,000*)
* The $50,000 limits will be reduced by the highest outstanding balance owed
during the previous 12 months.
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For salary reduction Tax Sheltered Annuities, loans may be secured only by the
contract value.
LOAN PROCESSING FEE
Nationwide may charge a loan processing fee at the time each new loan is
processed. If assessed, this fee compensates Nationwide for expenses related to
administering and processing loans. Loans are not available in all states. In
addition, some states may not allow Nationwide to assess a Loan Processing Fee.
The fee is taken from the sub-accounts, fixed account, and Guaranteed Term
Options in proportion to the contract value at the time the loan is processed.
HOW LOAN REQUESTS ARE PROCESSED
All loans are made from the collateral fixed account. Nationwide transfers
accumulation units in proportion to the assets in each sub-account to the
collateral fixed account until the requested amount is reached. If there are not
enough accumulation units available in the contract to reach the requested loan
amount, Nationwide next transfers contract value from the fixed account. Any
remaining required collateral will be transferred from the Guaranteed Term
Options. Transfers from the Guaranteed Term Options may be subject to a market
value adjustment. No CDSC will be deducted on transfers related to loan
processing.
LOAN INTEREST
The outstanding loan balance in the collateral fixed account is credited with
interest until the loan is repaid in full. The interest rate will be 2.25% less
than the loan interest rate fixed by Nationwide. The interest rate is guaranteed
never to fall below 3.0%.
Specific loan terms are disclosed at the time of loan application or issuance.
LOAN REPAYMENT
Loans must be repaid in five years. However, if the loan is used to purchase the
contract owner's principal residence, the contract owner has 15 years to repay
the loan.
Contract owners must identify loan repayments as loan repayments or they will be
treated as purchase payments and will not reduce the outstanding loan. Payments
must be substantially level and made at least quarterly.
Loan repayments will consist of principal and interest in amounts set forth in
the loan agreement. Repayments are allocated to the sub-accounts in accordance
with the contract, unless Nationwide and the contract owner have agreed to amend
the contract at a later date on a case by case basis.
Loan repayments to the Guaranteed Term Options must be at least $1,000. If the
proportional share of the repayment to the Guaranteed Term Option is less than
$1,000, that portion of the repayment will be allocated to the NSAT Money Market
Fund unless the contract owner directs otherwise.
DISTRIBUTIONS & ANNUITY PAYMENTS
Distributions made from the contract while a loan is outstanding will be reduced
by the amount of the outstanding loan plus accrued interest if:
- the contract is surrendered;
- the contract owner/annuitant dies;
- the contract owner who is not the annuitant dies prior to
annuitization; or
- annuity payments begin.
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TRANSFERRING THE CONTRACT
Nationwide reserves the right to restrict any transfer of the contract while the
loan is outstanding.
GRACE PERIOD & LOAN DEFAULT
If a loan payment is not made when due, interest will continue to accrue. A
grace period may be available (please refer to the terms of the loan agreement).
If a loan payment is not made by the end of the applicable grace period, the
entire loan will be treated as a deemed distribution and will be taxable to the
borrower. This deemed distribution may also be subject to an early withdrawal
tax penalty by the Internal Revenue Service.
After default, interest will continue to accrue on the loan. Defaulted amounts,
plus interest, are deducted from the contract value when the participant is
eligible for a distribution of at least that amount. Additional loans are not
available while a previous loan is in default.
ASSIGNMENT
Contract rights are personal to the contract owner and may not be assigned
without Nationwide's written consent.
A Non-Qualified Contract owner may assign some or all rights under the contract.
An assignment must occur before annuitization while the annuitant is alive. Once
proper notice of assignment is recorded by Nationwide's home office, the
assignment will become effective as of the date the written request was signed.
Investment-only Contracts, Individual Retirement Annuities, Roth IRAs, SEP IRAs,
Simple IRAs, and Tax Sheltered Annuities may not be assigned, pledged or
otherwise transferred except where allowed by law.
Nationwide is not responsible for the validity or tax consequences of any
assignment. Nationwide is not liable for any payment or settlement made before
the assignment is recorded. Assignments will not be recorded until Nationwide
receives sufficient direction from the contract owner and the assignee regarding
the proper allocation of contract rights.
Amounts pledged or assigned will be treated as distributions and will be
included in gross income to the extent that the cash value exceeds the
investment in the contract for the taxable year in which it was pledged or
assigned. Amounts assigned may be subject to a tax penalty equal to 10% of the
amount included in gross income.
Assignment of the entire contract value may cause the portion of the contract
value exceeding the total investment in the contract and previously taxed
amounts to be included in gross income for federal income tax purposes each year
that the assignment is in effect.
CONTRACT OWNER SERVICES
ASSET REBALANCING
Asset rebalancing is the automatic reallocation of contract values to the
sub-accounts on a predetermined percentage basis. Asset rebalancing is not
available for assets held in the fixed account or the Guaranteed Term Options.
Requests for asset rebalancing must be on a Nationwide form.
Asset rebalancing occurs every three months or on another frequency if permitted
by Nationwide. If the last day of the three-month period falls on a Saturday,
Sunday, recognized holiday, or any other day when the New York Stock Exchange is
closed, asset rebalancing will occur on the next business day.
Asset rebalancing may be subject to employer limitations or restrictions for
contracts issued to a Tax Sheltered Annuity plan. Contract owners should consult
a financial adviser to discuss the use of asset rebalancing.
Nationwide reserves the right to stop establishing new asset rebalancing
programs. Nationwide also reserves the right to assess a processing fee for this
service.
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DOLLAR COST AVERAGING
Dollar Cost Averaging is a long-term transfer program that allows you to make
regular, level investments over time. It involves the automatic transfer of a
specified amount from the fixed account and/or certain sub-accounts into other
sub-accounts. Nationwide does not guarantee that this program will result in
profit or protect contract owners from loss.
Contract owners direct Nationwide to automatically transfer specified amounts
from the fixed account and the Federated Insurance Series - Federated Quality
Bond Fund II, Fidelity VIP High Income Portfolio, NSAT Government Bond Fund,
NSAT Nationwide High Income Bond Fund, and NSAT Money Market Fund to any other
underlying mutual fund. Dollar Cost Averaging transfers may not be directed to
Guaranteed Term Options.
Transfers occur monthly or on another frequency if permitted by Nationwide.
Nationwide will process transfers until either the value in the originating
investment option is exhausted, or the contract owner instructs Nationwide in
writing to stop the transfers.
Nationwide reserves the right to stop establishing new Dollar Cost Averaging
programs. Nationwide also reserves the right to assess a processing fee for this
service.
Dollar Cost Averaging from the Fixed Account
Transfers from the fixed account must be equal to or less than 1/30th of the
fixed account value at the time the program is requested. A Dollar Cost
Averaging program which transfers amounts from the fixed account to the variable
account is not the same as an Enhanced Rate Dollar Cost Averaging program.
Contract owners that wish to utilize Dollar Cost Averaging from the fixed
account should first inquire whether any Enhanced Rate Dollar Cost Averaging
programs are available.
Enhanced Rate Dollar Cost Averaging
Nationwide may, from time to time, offer Enhanced Rate Dollar Cost Averaging
programs. Contract owners may participate in this program if their contract
value is $10,000 or more. Dollar Cost Averaging transfers for this program may
only be made from the fixed account. Such Enhanced Rate Dollar Cost Averaging
programs allow the contract owner to earn a higher rate of interest on assets in
the fixed account than would normally be credited when not participating in the
program. Each enhanced interest rate is guaranteed for as long as the
corresponding program is in effect. Nationwide will process transfers until
either amounts in the enhanced rate fixed account are exhausted, or the contract
owner instructs Nationwide in writing to stop the transfers. For this program
only, when a written request to discontinue transfers is received, Nationwide
will automatically transfer the remaining amount in the enhanced rate fixed
account to the NSAT Money Market Fund.
SYSTEMATIC WITHDRAWALS
Systematic withdrawals allow contract owners to receive a specified amount (of
at least $100) on a monthly, quarterly, semi-annual, or annual basis. Requests
for systematic withdrawals and requests to discontinue systematic withdrawals
must be in writing.
The withdrawals will be taken from the sub-accounts and the fixed account
proportionately unless Nationwide is instructed otherwise. Systematic
withdrawals are not available from the Guaranteed Term Options.
Nationwide will withhold federal income taxes from systematic withdrawals unless
otherwise instructed by the contract owner. The Internal Revenue Service may
impose a 10% penalty tax if the contract owner is under age 59 1/2 unless the
contract owner has made an irrevocable election of distributions of
substantially equal payments.
If the contract owner takes systematic withdrawals, the maximum amount that can
be withdrawn annually without a CDSC is the greatest of:
(1) 10% of all purchase payments made to the contract as of the withdrawal
date;
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(2) an amount withdrawn to meet minimum distribution requirements under
the Internal Revenue Code; or
(3) a percentage of the contract value based on the contract owner's age,
as shown in the table below:
----------------------------- -----------------------
PERCENTAGE OF
CONTRACT OWNER'S CONTRACT VALUE
AGE
----------------------------- -----------------------
Under age 59 1/2 5%
Age 59 1/2 through age 61 7%
Age 62 through age 64 8%
Age 65 through age 74 10%
Age 75 and over 13%
Contract value and contract owner's age are determined as of the date the
request for the withdrawal program is recorded by Nationwide's home office. For
joint owners, the older joint owner's age will be used.
If total amounts withdrawn in any contract year exceed the CDSC-free amount
described above, those amounts will only be eligible for the 10% of purchase
payment CDSC-free withdrawal privilege described in the "Contingent Deferred
Sales Charge" section. The total amount of CDSC for that contract year will be
determined in accordance with that provision.
The CDSC-free withdrawal privilege for systematic withdrawals is non-cumulative.
Free amounts not taken during any contract year cannot be taken as free amounts
in a subsequent contract year.
Nationwide reserves the right to stop establishing new systematic withdrawal
programs. Nationwide also reserves the right to assess a processing fee for this
service. Systematic withdrawals are not available before the end of the ten-day
free look period (see "Right to Revoke").
ANNUITY COMMENCEMENT DATE
The annuity commencement date is the date on which annuity payments are
scheduled to begin. The contract owner may change the annuity commencement date
before annuitization. This change must be in writing and approved by Nationwide.
ANNUITIZING THE CONTRACT
ANNUITIZATION DATE
The annuitization date is the date that annuity payments begin. It will be the
first day of a calendar month unless otherwise agreed, and must be at least 2
years after the contract is issued. If the contract is issued to fund a Tax
Sheltered Annuity, annuitization may occur during the first 2 years subject to
Nationwide's approval.
ANNUITIZATION
Annuitization is the period during which annuity payments are received. It is
irrevocable once payments have begun. Upon arrival of the annuitization date,
the annuitant must choose:
(1) an annuity payment option; and
(2) either a fixed payment annuity, variable payment annuity, or an
available combination.
Nationwide guarantees that each payment under a fixed payment annuity will be
the same throughout annuitization. Under a variable payment annuity, the amount
of each payment will vary with the performance of the underlying mutual funds
chosen by the contract owner.
FIXED PAYMENT ANNUITY
A fixed payment annuity is an annuity where the amount of the annuity payments
remains level.
The first payment under a fixed payment annuity is determined on the
annuitization date on an "age last birthday" basis by:
(1) deducting applicable premium taxes from the total contract value; then
(2) applying the contract value amount specified by the contract owner to
the fixed payment annuity table for the annuity payment option
elected.
Subsequent payments will remain level unless the annuity payment option elected
provides
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otherwise. Nationwide does not credit discretionary interest during
annuitization.
VARIABLE PAYMENT ANNUITY
A variable payment annuity is an annuity where the amount of the annuity
payments will vary depending on the performance of the underlying mutual funds
selected.
- --------------------------------------------------------------------------------
A VARIABLE PAYMENT ANNUITY MAY NOT BE ELECTED WHEN EXERCISING THE GUARANTEED
MINIMUM INCOME BENEFIT OPTION.
- --------------------------------------------------------------------------------
The first payment under a variable payment annuity is determined on the
annuitization date on an "age last birthday" basis by:
(1) deducting applicable premium taxes from the total contract value; then
(2) applying the contract value amount specified by the contract owner to
the variable payment annuity table for the annuity payment option
elected.
The dollar amount of the first payment is converted into a set number of annuity
units that will represent each monthly payment. This is done by dividing the
dollar amount of the first payment by the value of an annuity unit as of the
annuitization date. This number of annuity units remains fixed during
annuitization.
The second and subsequent payments are determined by multiplying the fixed
number of annuity units by the annuity unit value for the valuation period in
which the payment is due. The amount of the second and subsequent payments will
vary with the performance of the selected underlying mutual funds. Nationwide
guarantees that variations in mortality experience from assumptions used to
calculate the first payment will not affect the dollar amount of the second and
subsequent payments.
Assumed Investment Rate
An assumed investment rate is the percentage rate of return assumed to determine
the amount of the first payment under a variable payment annuity. Nationwide
uses the assumed investment rate of 3.5% to calculate the first annuity payment
and to calculate the investment performance of an underlying mutual fund in
order to determine subsequent payments under a variable payment annuity. An
assumed investment rate is the percentage rate of return required to maintain
level variable annuity payments. Subsequent variable annuity payments may be
more or less than the first payment based on whether actual investment
performance of the underlying mutual funds is higher or lower than the assumed
investment rate of 3.5%.
Value of an Annuity Unit
Annuity unit values for sub-accounts are determined by multiplying the net
investment factor for the valuation period for which the annuity unit is being
calculated by the immediately preceding valuation period's annuity unit value,
and multiplying the result by an interest factor to neutralize the assumed
investment rate of 3.5% per annum built into the variable payment annuity
purchase rate basis in the contracts.
Exchanges among Underlying Mutual Funds
Exchanges among underlying mutual funds during annuitization must be in writing.
Exchanges will occur on each anniversary of the annuitization date.
FREQUENCY AND AMOUNT OF ANNUITY PAYMENTS
Payments are made based on the annuity payment option selected, unless:
- the amount to be distributed is less than $5,000, in which case
Nationwide may make one lump sum payment of the contract value; or
- an annuity payment would be less than $50, in which case Nationwide
can change the frequency of payments to intervals that will result in
payments of at least $50. Payments will be made at least annually.
GUARANTEED MINIMUM INCOME BENEFIT OPTION ("GMIB")
What is a GMIB?
A GMIB is a benefit which ensures the availability of a minimum amount when the
contract owner wishes to annuitize the contract.
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This minimum amount, referred to as the Guaranteed Annuitization Value, may be
used at specified times to provide a guaranteed level of determinable lifetime
annuity payments. The GMIB may provide protection in the event of lower contract
values that may result from the investment performance of the contract.
How is the Guaranteed Annuitization Value Determined?
The Guaranteed Annuitization Value is equal to (a) - (b), but will never be
greater than 200% of all purchase payments, where:
(a) is the sum of all purchase payments, plus interest accumulated at a
compounded annual rate of 5% starting at the date of issue and ending
on the contract anniversary occurring immediately prior to the
annuitant's 86th birthday; and
(b) is the reduction to (a) due to surrenders made from the contract. All
such reductions will be proportionately the same as reductions to the
contract value caused by surrenders. For example, a surrender which
reduces the contract value by 25% will also reduce the Guaranteed
Annuitization Value by 25%.
Special Restrictions for a GMIB
After the first contract year, if the value of the contract owner's fixed
account allocation becomes greater than 30% of the contract value in any
contract year due to:
(1) the application of additional purchase payments;
(2) surrenders; or
(3) transfers from the variable account,
then 0% interest will accrue in that contract year for purposes of calculating
the Guaranteed Annuitization Value.
If the contract owner's fixed account allocation becomes greater than 30% of the
contract value solely as a result of fluctuations in the value of the variable
account, then interest will continue to accrue for the purposes of the
Guaranteed Annuitization Value at 5% annually, subject to the other terms and
conditions outlined herein.
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GMIB Illustrations
The following charts illustrate the amount of income that will be provided to an
annuitant if the contract owner annuitizes the contract at the 7th, 10th or 15th
contract anniversary date, using the GMIB.
The illustrations assume the following:
- An initial purchase payment of $100,000 is made to the contract and
allocated to the variable account;
- There are no surrenders from the contract or transfers to the fixed
account (raising the fixed account value to greater than 30% of the
contract value);
- The contract is issued to a MALE at age 55, 65 or 70; and
- A Life Annuity with 120 Months Guaranteed Fixed Payment Annuity Option
is elected.
7 Years in Accumulation
$140,710.04 for GMIB at Annuitization
<TABLE>
<CAPTION>
- ------------------------------- ---------------------------- ---------------------------- ----------------------------
Male Age at Issue Male Age at Annuitization GMIB Purchase Rate* Monthly GMIB
- ------------------------------- ---------------------------- ---------------------------- ----------------------------
<S> <C> <C> <C>
55 62 $4.72 $664.15
65 72 $5.96 $838.63
70 77 $6.79 $955.42
</TABLE>
10 Years in Accumulation
$162,889.46 for GMIB at Annuitization
<TABLE>
<CAPTION>
- ------------------------------- ---------------------------- ---------------------------- ----------------------------
Male Age at Issue Male Age at Annuitization GMIB Purchase Rate* Monthly GMIB
- ------------------------------- ---------------------------- ---------------------------- ----------------------------
<S> <C> <C> <C>
55 65 $5.03 $819.33
65 75 $6.44 $1,049.01
70 80 $7.32 $1,192.35
</TABLE>
15 Years in Accumulation
$200,000.00 for GMIB at Annuitization
<TABLE>
<CAPTION>
- ------------------------------- ---------------------------- ---------------------------- ----------------------------
Male Age at Issue Male Age at Annuitization GMIB Purchase Rate* Monthly GMIB
- ------------------------------- ---------------------------- ---------------------------- ----------------------------
<S> <C> <C> <C>
55 70 $5.66 $1,132.00
65 80 $7.32 $1,464.00
70 85 $8.18 $1,636.00
</TABLE>
* Guaranteed Monthly Benefit per $1,000 applied
The illustrations should be used as a tool to assist an investor in determining
whether purchasing and exercising a GMIB option is right for them. The
guaranteed purchase rates assumed in the illustrations may not apply in some
states, or for contracts issued under an employer sponsored plan. Different
guaranteed purchase rates will apply for females, for males who annuitize at
ages other than the ages shown above, or for annuitizations under other annuity
payment options. Where different guaranteed purchase rates apply, GMIB amounts
shown above will be different. In all cases, the guaranteed purchase rates used
to calculate the GMIB will be the same as the purchase rates guaranteed in the
contract for fixed annuitizations without the GMIB.
The purchase rates available in connection with annuitization options under a
GMIB are minimum guaranteed purchase rates. Alternative purchase rates, which
may be more favorable, may apply to annuitizations which occur without a GMIB
option.
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<PAGE> 43
When May the Guaranteed Annuitization Value be Used?
The contract owner may use the Guaranteed Annuitization Value by annuitizing the
contract during the thirty day period following any contract anniversary:
(1) after the contract has been in effect for seven years; AND
(2) the annuitant has attained age 60.
What Annuity Payment Options May Be Used With the Guaranteed Annuitization
Value?
The contract owner may elect any life contingent FIXED ANNUITY PAYMENT OPTION
calculated using the guaranteed annuity purchase rates set forth in the
contract. Such Fixed Annuity Payment Options include:
- Life Annuity;
- Joint and Last Survivor Annuity; and
- Life Annuity with 120 or 240 Monthly Payments Guaranteed.
Other GMIB Terms and Conditions
**PLEASE READ CAREFULLY**
- The GMIB must be elected at the time of application.
- The annuitant must be age 82 or younger at the time the contract is
issued.
- The GMIB is irrevocable and will remain for as long as the contract
remains in force.
- --------------------------------------------------------------------------------
IMPORTANT CONSIDERATIONS TO KEEP IN MIND REGARDING THE
GMIB OPTION
While a GMIB does provide a Guaranteed Annuitization Value, A GMIB MAY NOT BE
APPROPRIATE FOR ALL INVESTORS and should be understood completely and analyzed
thoroughly before being elected.
- - A GMIB DOES NOT in any way guarantee the performance of any underlying
mutual fund, or any other investment option available under the contract.
- - Once elected, the GMIB is irrevocable, meaning that even if the investment
performance of underlying mutual funds or other available investment
options surpasses the minimum guarantees associated with the GMIB, the GMIB
charges will still be assessed.
- - The GMIB in no way restricts or limits the rights of contract owners to
annuitize the contract at other times permitted under the contract, nor
will it in any way restrict the right to annuitize the contract using
contract values that may be higher than the Guaranteed Annuitization Value.
- - Please take advantage of the guidance of a qualified financial adviser in
evaluating the GMIB options, and all other aspects of the contract.
- - GMIB may not be approved in all state jurisdictions.
- --------------------------------------------------------------------------------
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<PAGE> 44
ANNUITY PAYMENT OPTIONS
Contract owners must elect an annuity payment option before the annuitization
date. The annuity payment options are:
(1) LIFE ANNUITY - An annuity payable periodically, but at least annually, for
the lifetime of the annuitant. Payments will end upon the annuitant's
death. For example, if the annuitant dies before the second annuity payment
date, the annuitant will receive only one annuity payment. The annuitant
will only receive two annuity payments if he or she dies before the third
annuity payment date, and so on.
(2) JOINT AND LAST SURVIVOR ANNUITY - An annuity payable periodically, but at
least annually, during the joint lifetimes of the annuitant and a
designated second individual. If one of these parties dies, payments will
continue for the lifetime of the survivor. As is the case under option 1,
there is no guaranteed number of payments. Payments end upon the death of
the last surviving party, regardless of the number of payments received.
(3) LIFE ANNUITY WITH 120 OR 240 MONTHLY PAYMENTS GUARANTEED - An annuity
payable monthly during the lifetime of the annuitant. If the annuitant dies
before all of the guaranteed payments have been made, payments will
continue to the end of the guaranteed period and will be paid to a designee
chosen by the annuitant at the time the annuity payment option was elected.
The designee may elect to receive the present value of the remaining
guaranteed payments in a lump sum. The present value will be computed as of
the date Nationwide receives the notice of the annuitant's death.
Not all of the annuity payment options may be available in all states. Contract
owners may request other options before the annuitization date. These options
are subject to Nationwide's approval.
No distribution for Non-Qualified Contracts will be made until an annuity
payment option has been elected. Individual Retirement Annuities and Tax
Sheltered Annuities are subject to the "minimum distribution" requirements set
forth in the plan, contract, and the Internal Revenue Code.
DEATH BENEFITS
DEATH OF CONTRACT OWNER - NON-QUALIFIED CONTRACTS
If the contract owner who is not the annuitant dies before the annuitization
date, the joint owner becomes the contract owner. If no joint owner is named,
the contingent owner becomes the contract owner. If no contingent owner is
named, the last surviving contract owner's estate becomes the contract owner.
If the contract owner and annuitant are the same, and the contract
owner/annuitant dies before the annuitization date, the contingent owner will
not have any rights in the contract unless the contingent owner is also the
beneficiary.
Distributions under Non-Qualified Contracts will be made pursuant to the
"Required Distributions for Non-Qualified Contracts" provision.
DEATH OF ANNUITANT - NON-QUALIFIED CONTRACTS
If the annuitant who is not a contract owner dies before the annuitization date,
a death benefit is payable to the beneficiary unless a contingent annuitant is
named. If a contingent annuitant is named, the contingent annuitant becomes the
annuitant and no death benefit is payable.
The beneficiary may elect to receive the death benefit:
(1) in a lump sum;
(2) as an annuity; or
(3) in any other manner permitted by law and approved by Nationwide.
The beneficiary must notify Nationwide of this election within 60 days of the
annuitant's death.
If no beneficiary survives the annuitant, the contingent beneficiary receives
the death benefit. Contingent beneficiaries will share the death benefit
equally, unless otherwise specified.
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<PAGE> 45
If no beneficiaries or contingent beneficiaries survive the annuitant, the
contract owner or the last surviving contract owner's estate will receive the
death benefit.
If the contract owner is a Charitable Remainder Trust and the annuitant dies
before the annuitization date, the death benefit will accrue to the Charitable
Remainder Trust. Any designation in conflict with the Charitable Remainder
Trust's right to the death benefit will be void.
If the annuitant dies after the annuitization date, any benefit that may be
payable will be paid according to the selected annuity payment option.
DEATH OF CONTRACT OWNER/ANNUITANT
If a contract owner who is also the annuitant dies before the annuitization
date, a death benefit is payable according to the "Death of the Annuitant -
Non-Qualified Contracts" provision.
A joint owner will receive a death benefit if a contract owner/annuitant dies
before the annuitization date.
If the contract owner/annuitant dies after the annuitization date, any benefit
that may be payable will be paid according to the selected annuity payment
option.
DEATH BENEFIT PAYMENT
Contract owners may select one of three death benefits available under the
contract at the time of application (not all death benefit options may be
available in all states). If no selection is made at the time of application,
the death benefit will be the Five-Year Reset Death Benefit.
The death benefit value is determined as of the date Nationwide receives:
(1) proper proof of the annuitant's death;
(2) an election specifying the distribution method; and
(3) any state required form(s).
Five-Year Reset Death Benefit (Standard Contractual Death Benefit)
If the annuitant dies before the annuitization date, the death benefit will be
the greatest of:
(1) the contract value;
(2) the total of all purchase payments,less an adjustment for amounts
surrendered; or
(3) the contract value as of the most recent five year contract
anniversary before the annuitant's 86th birthday, less an adjustment
for amounts surrendered, plus purchase payments received after that
five year contract anniversary.
The adjustment for amounts surrendered will reduce items (2) and (3) above in
the same proportion that the contract value was reduced on the date(s) of the
partial surrender(s).
One-Year Step Up Death Benefit
If the annuitant dies before the annuitization date, the death benefit will be
the greatest of:
(1) the contract value;
(2) the total of all purchase payments, less an adjustment for amounts
surrendered; or
(3) the highest contract value on any contract anniversary before the
annuitant's 86th birthday, less an adjustment for amounts subsequently
surrendered, plus purchase payments received after that contract
anniversary.
The adjustment for amounts surrendered will reduce items (2) and (3) above in
the same proportion that the contract value was reduced on the date(s) of the
partial surrender(s).
5% Enhanced Death Benefit
If the annuitant dies before the annuitization date, the death benefit will be
the greater of:
(1) the contract value; or
(2) the total of all purchase payments, less any amounts surrendered,
accumulated at 5% simple interest from the date of each purchase
payment or surrender to the most recent contract anniversary prior to
the annuitant's 86th birthday, less an adjustment for amounts
subsequently surrendered, plus purchase payments received since that
contract anniversary.
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<PAGE> 46
The total accumulated amount will not exceed 200% of the net of purchase
payments and amounts surrendered. The adjustment for amounts subsequently
surrendered after the most recent contract anniversary will reduce the 5%
interest anniversary value in the same proportion that the contract value was
reduced on the date(s) of the partial surrender(s).
REQUIRED DISTRIBUTIONS
REQUIRED DISTRIBUTIONS FOR NON-QUALIFIED CONTRACTS
Internal Revenue Code Section 72(s) requires Nationwide to make certain
distributions when a contract owner dies. The following distributions will be
made according to those requirements:
(1) If any contract owner dies on or after the annuitization date and
before the entire interest in the contract has been distributed, then
the remaining interest must be distributed at least as rapidly as the
distribution method in effect on the contract owner's death.
(2) If any contract owner dies before the annuitization date, then the
entire interest in the contract (consisting of either the death
benefit or the contract value reduced by charges set forth elsewhere
in the contract) will be distributed within 5 years of the contract
owner's death, provided however:
(a) any interest payable to or for the benefit of a natural person
(referred to herein as a "designated beneficiary"), may be
distributed over the life of the designated beneficiary or over a
period not longer than the life expectancy of the designated
beneficiary. Payments must begin within one year of the contract
owner's death unless otherwise permitted by federal income tax
regulations;
(b) if the designated beneficiary is the surviving spouse of the
deceased contract owner, the spouse can choose to become the
contract owner instead of receiving a death benefit. Any
distributions required under these distribution rules will be
made upon that spouse's death.
In the event that the contract owner is NOT a natural person (e.g., a trust or
corporation), then, for purposes of these distribution provisions:
(a) the death of the annuitant will be treated as the death of a contract
owner;
(b) any change of annuitant will be treated as the death of a contract
owner; and
(c) in either case, the appropriate distribution will be made upon the
death or change, as the case may be.
These distribution provisions do not apply to any contract exempt from Section
72(s) of the Internal Revenue Code by reason of Section 72(s)(5) or any other
law or rule.
The designated beneficiary must elect a method of distribution and notify
Nationwide of this election within 60 days of the contract owner's death.
REQUIRED DISTRIBUTIONS FOR TAX SHELTERED ANNUITIES
Distributions from Tax Sheltered Annuities will be made according to the Minimum
Distribution and Incidental Benefit ("MDIB") provisions of Section 401(a)(9) of
the Internal Revenue Code. Distributions will be made to the annuitant according
to the selected annuity payment option over a period not longer than:
(a) the life of the annuitant or the joint lives of the annuitant and the
annuitant's designated beneficiary; or
(b) a period not longer than the life expectancy of the annuitant or the
joint life expectancies of the annuitant and the annuitant's
designated beneficiary.
Required distributions do not have to be withdrawn from this contract if they
are being withdrawn from another Tax Sheltered Annuity of the annuitant.
If the annuitant's entire interest in a Tax Sheltered Annuity will be
distributed in equal or substantially equal payments over a period
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<PAGE> 47
described in a) or b), the payments will begin on the required beginning date.
The required beginning date is the later of:
(a) April 1 of the calendar year following the calendar year in which the
annuitant reaches age 70 1/2; or
(b) the annuitant's retirement date.
Provision (b) does not apply to any employee who is a 5% owner (as defined in
Section 416 of the Internal Revenue Code) with respect to the plan year ending
in the calendar year when the employee attains the age of 70 1/2.
Distribution commencing on the required distribution date must satisfy minimum
distribution and incidental benefit provisions set forth in the Internal Revenue
Code. Those provisions require that distributions cannot be less than the amount
determined by dividing the annuitant's interest in the Tax Sheltered Annuity
determined by the end of the previous calendar year by:
(a) the annuitant's life expectancy; or if applicable,
(b) the joint and survivor life expectancy of the annuitant and the
annuitant's beneficiary.
The life expectancies and joint life expectancies are determined by reference to
Treasury Regulation 1.72-9.
If the annuitant dies before distributions begin, the interest in the Tax
Sheltered Annuity must be distributed by December 31 of the calendar year in
which the fifth anniversary of the annuitant's death occurs unless:
(a) the annuitant names his or her surviving spouse as the beneficiary and
the spouse chooses to receive distribution of the contract in
substantially equal payments over his or her life (or a period not
longer than his or her life expectancy) and beginning no later than
December 31 of the year in which the annuitant would have attained age
70 1/2; or
(b) the annuitant names a beneficiary other than his or her surviving
spouse and the beneficiary elects to receive distribution of the
contract in substantially equal payments over his or her life (or a
period not longer than his or her life expectancy) beginning no later
than December 31 of the year following the year in which the annuitant
dies.
If the annuitant dies after distributions have begun, distributions must
continue at least as rapidly as under the schedule used before the annuitant's
death.
If distribution requirements are not met, a penalty tax of 50% is levied on the
difference between the amount that should have been distributed for that year
and the amount that actually was distributed for that year.
REQUIRED DISTRIBUTIONS FOR INDIVIDUAL RETIREMENT ANNUITIES, SEP IRAS AND SIMPLE
IRAS
Distributions from an Individual Retirement Annuity, SEP IRA or Simple IRA must
begin no later than April 1 of the calendar year following the calendar year in
which the contract owner reaches age 70 1/2. Distribution may be paid in a lump
sum or in substantially equal payments over:
(a) the contract owner's life or the lives of the contract owner and his
or her spouse or designated beneficiary; or
(b) a period not longer than the life expectancy of the contract owner or
the joint life expectancy of the contract owner and the contract
owner's designated beneficiary.
If the contract owner dies before distributions begin, the interest in the
Individual Retirement Annuity, SEP IRA or Simple IRA must be distributed by
December 31 of the calendar year in which the fifth anniversary of the contract
owner's death occurs, unless:
(a) the contract owner names his or her surviving spouse as the
beneficiary and such spouse chooses to:
(1) treat the contract as an Individual Retirement Annuity, SEP IRA
or
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<PAGE> 48
Simple IRA established for his or her benefit; or
(2) receive distribution of the contract in substantially equal
payments over his or her life (or a period not longer than his or
her life expectancy) and beginning no later than December 31 of
the year in which the contract owner would have reached age 70
1/2; or
(b) the contract owner names a beneficiary other than his or her surviving
spouse and such beneficiary elects to receive a distribution of the
contract in substantially equal payments over his or her life (or a
period not longer than his or her life expectancy) beginning no later
than December 31 of the year following the year of the contract
owner's death.
Required distributions do not have to be withdrawn from this contract if they
are being withdrawn from another Individual Retirement Annuity, SEP IRA or
Simple IRA of the contract owner.
If the contract owner dies after distributions have begun, distributions must
continue at least as rapidly as under the schedule being used before the
contract owner's death. However, a surviving spouse who is the beneficiary under
the annuity payment option may treat the contract as his or her own, in the same
manner as is described in section (a)(1) of this provision.
If distribution requirements are not met, a penalty tax of 50% is levied on the
difference between the amount that should have been distributed for that year
and the amount that actually was distributed for that year.
A portion of each distribution will be included in the recipient's gross income
and taxed at ordinary income tax rates. The portion of a distribution which is
taxable is based on the ratio between the amount by which non-deductible
purchase payments exceed prior non taxable distributions and total account
balances at the time of the distribution. The owner of an Individual Retirement
Annuity, SEP IRA or Simple IRA must annually report the amount of non-deductible
purchase payments, the amount of any distribution, the amount by which non
deductible purchase payments for all years exceed non taxable distributions for
all years, and the total balance of all Individual Retirement Annuities, SEP IRA
or Simple IRA.
If the contract owner dies before the entire interest in the contract has been
distributed, the balance will also be included in his or her gross estate.
REQUIRED DISTRIBUTIONS FOR ROTH IRAS
The rules for Roth IRAs do not require distributions to begin during the
contract owner's lifetime.
When the contract owner dies, the interest in the Roth IRA must be distributed
by December 31 of the calendar year in which the fifth anniversary of his or her
death occurs, unless:
(a) the contract owner names his or her surviving spouse as the
beneficiary and the spouse chooses to:
(1) treat the contract as a Roth IRA established for his or her
benefit; or
(2) receive distribution of the contract in substantially equal
payments over his or her life (or a period not longer than his or
her life expectancy) and beginning no later than December 31 of
the year following the year in which the contract owner would
have reached age 70 1/2; or
(b) the contract owner names a beneficiary other than his or her surviving
spouse and the beneficiary chooses to receive distribution of the
contract in substantially equal payments over his or her life (or a
period not longer than his or her life expectancy) beginning no later
than December 31 of the year following the year in which the contract
owner dies.
Distributions from Roth IRAs may be either taxable or nontaxable, depending upon
whether they are "qualified distributions" or "non-
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<PAGE> 49
qualified distributions" (see "Federal Tax Considerations").
FEDERAL TAX CONSIDERATIONS
FEDERAL INCOME TAXES
The tax consequences of purchasing a contract described in this prospectus will
depend on:
- the type of contract purchased;
- the purposes for which the contract is purchased; and
- the personal circumstances of individual investors having interests
in the contracts.
See "Synopsis of the Contracts" for a brief description of the various types of
contracts and the different purposes for which the contracts may be purchased.
Existing tax rules are subject to change, and may affect individuals differently
depending on their situation. Nationwide does not guarantee the tax status of
any contracts or any transactions involving the contracts.
If the contract is purchased as an investment of certain retirement plans (such
as qualified retirement plans, Individual Retirement Accounts, and custodial
accounts as described in Sections 401, 408(a), and 403(b)(7) of the Internal
Revenue Code), tax advantages enjoyed by the contract owner and/or annuitant may
relate to participation in the plan rather than ownership of the annuity
contract. Such plans are permitted to purchase investments other than annuities
and retain tax-deferred status.
The following is a brief summary of some of the federal income tax
considerations related to the contracts. In addition to the federal income tax,
distributions from annuity contracts may be subject to state and local income
taxes. The tax rules across all states and localities are not uniform and
therefore will not be discussed in this prospectus. Tax rules that may apply to
contracts issued in U.S. territories such as Puerto Rico and Guam are also not
discussed. Nothing in this prospectus should be considered to be tax advice.
Contract owners and prospective contract owners are encouraged to consult a
financial consultant, tax advisor or legal counsel to discuss the taxation and
use of the contracts.
The Internal Revenue Code sets forth different income tax rules for the
following types of annuity contracts:
- Individual Retirement Annuities;
- SEP IRAs;
- Simple IRAs;
- Roth IRAs;
- Tax Sheltered Annuities; and
- "Non-Qualified Annuities."
Individual Retirement Annuities, SEP IRAs and Simple IRAs
Distributions from Individual Retirement Annuities, SEP IRAs and Simple IRAs are
generally taxed when received. If any of the amount contributed to the IRA was
nondeductible for federal income tax purposes, then a portion of each
distribution is excludable from income.
If distributions of income from an IRA are made prior to the date that the owner
attains the age of 59 1/2 years, the income is subject to both the regular
income tax and an additional penalty tax of 10%. (For Simple IRAs, the 10%
penalty is increased to 25% if the distribution is made during the 2 year period
beginning on the date that the individual first participated in the Simple IRA.)
The penalty tax can be avoided if the distribution is:
- - made to a beneficiary on or after the death of the owner;
- - attributable to the owner becoming disabled (as defined in the Internal
Revenue Code);
- - part of a series of substantially equal periodic payments made not less
frequently than annually made for the life (or life expectancy) of the
owner, or the joint lives (or joint life expectancies) of the owner and his
or her designated beneficiary;
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<PAGE> 50
- - used for qualified higher education expenses; or
- - used for expenses attributable to the purchase of a home for a qualified
first-time buyer.
Roth IRAs
Distributions of earnings from Roth IRAs are taxable or nontaxable depending
upon whether they are "qualified distributions" or "nonqualified distributions."
A "qualified distribution" is one that satisfies the five-year rule and meets
one of the following requirements:
- - it is made on or after the date on which the contract owner attains age 59
1/2;
- - it is made to a beneficiary (or the contract owner's estate) on or after
the death of the contract owner;
- - it is attributable to the contract owner's disability; or
- - it is used for expenses attributable to the purchase of a home for a
qualified first-time buyer.
The five year rule generally is satisfied if the distribution is not made within
the five taxable year period beginning with the first taxable year in which a
contribution is made to any Roth IRA established for the owner.
A qualified distribution is not included in gross income for federal income tax
purposes.
A non-qualified distribution is not includible in gross income to the extent
that the distribution, when added to all previous distributions, does not exceed
that total amount of contributions made to the Roth IRA. Any non-qualified
distribution in excess of the aggregate amount of contributions will be included
in the contract owner's gross income in the year that is distributed to the
contract owner.
Special rules apply for Roth IRAs that have proceeds received from an IRA prior
to January 1, 1999 if the owner elected the special 4-year income averaging
provisions that were in effect for 1998.
If non-qualified distributions of income from a Roth IRA are made prior to the
date that the owner attains the age of 59 1/2 years, the income is subject to
both the regular income tax and an additional penalty tax of 10%. The penalty
tax can be avoided if the distribution is:
- - made to a beneficiary on or after the death of the owner;
- - attributable to the owner becoming disabled as defined in the Internal
Revenue Code;
- - part of a series of substantially equal periodic payments made not less
frequently than annually made for the life (or life expectancy) of the
owner, or the joint lives (or joint life expectancies) of the owner and his
or her designated beneficiary;
- - for qualified higher education expenses; or
- - used for expenses attributable to the purchase of a home for a qualified
first-time buyer.
If the contract owner dies before the contract is completely distributed, the
balance may be included in the contract owner's gross estate for tax purposes.
Tax Sheltered Annuities
Distributions from Tax Sheltered Annuities are generally taxed when received. A
portion of each distribution is excludable from income based on a formula
established pursuant to the Internal Revenue Code. The formula excludes from
income the amount invested in the contract divided by the number of anticipated
payments until the full investment in the contract is recovered. Thereafter all
distributions are fully taxable.
If a distribution of income is made from a Tax Sheltered Annuity prior to the
date that the owner attains the age of 59 1/2 years, the income is subject to
both the regular income tax and an additional penalty tax of 10%. The penalty
tax can be avoided if the distribution is:
- - made to a beneficiary on or after the death of the owner;
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<PAGE> 51
- - attributable to the owner becoming disabled as defined in the Internal
Revenue Code;
- - part of a series of substantially equal periodic payments made not less
frequently than annually made for the life (or life expectancy) of the
owner, or the joint lives (or joint life expectancies) of the owner and his
or her designated beneficiary;
- - for qualified higher education expenses;
- - used for expenses attributable to the purchase of a home for a qualified
first-time buyer; or
- - made to the owner after separation from service with his or her employer
after age 55.
Non-Qualified Contracts - Natural Persons as Contract Owners
Generally, the income earned inside a Non-Qualified Annuity Contract that is
owned by a natural person is not taxable until it is distributed from the
contract.
Distributions before the annuitization date are taxable to the contract owner to
the extent that the cash value of the contract exceeds the contract owner's
investment at the time of the distribution. Distributions, for this purpose,
include partial surrenders, any portion of the contract that is assigned or
pledged; or any portion of the contract that is transferred by gift. For these
purposes, a transfer by gift may occur upon annuitization if the contract owner
and the annuitant are not the same individual.
With respect to annuity distributions on or after the annuitization date, a
portion of each annuity payment is excludable from taxable income. The amount
excludable is based on the ratio between the contract owner's investment in the
contract and the expected return on the contract. Once the entire investment in
the contract is recovered, all distributions are fully includable in income. The
maximum amount excludable from income is the investment in the contract. If the
annuitant dies before the entire investment in the contract has been excluded
from income, and as a result of the annuitant's death no more payments are due
under the contract, then the unrecovered investment in the contract may be
deducted on his or her final tax return.
In determining the taxable amount of a distribution, all annuity contracts
issued after October 21, 1988 by the same company to the same contract owner
during the same calendar year will be treated as one annuity contract.
A special rule applies to distributions from contracts that have investments
that were made prior to August 14, 1982. For those contracts, distributions that
are made prior to the annuitization date are treated first as a recovery of the
investment in the contract as of that date. A distribution in excess of the
amount of the investment in the contract as of August 14, 1982, will be treated
as taxable income.
The Internal Revenue Code imposes a penalty tax if a distribution is made before
the contract owner reaches age 59 1/2. The amount of the penalty is 10% of the
portion of any distribution that is includible in gross income. The penalty tax
does not apply if the distribution is:
- - the result of a contract owner's death;
- - the result of a contract owner's disability, as defined in the Internal
Revenue Code;
- - one of a series of substantially equal periodic payments made over the
life (or life expectancy) of the contract owner or the joint lives (or
joint life expectancies) of the contract owner and the beneficiary selected
by the contract owner to receive payment under the annuity payment option
selected by the contract owner; or
- - is allocable to an investment in the contract before August 14, 1982.
Non-Qualified Contracts - Non-Natural Persons as Contract Owners
The previous discussion related to the taxation of Non-Qualified Contracts owned
by individuals. Different rules (the so-called "non-natural persons" rules)
apply if the contract owner is not a natural person.
Generally, contracts owned by corporations, partnerships, trusts, and similar
entities are not treated as annuity contracts under the Internal
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<PAGE> 52
Revenue Code. Therefore, income earned under a Non-Qualified Contract that is
owned by a non-natural person is taxed as ordinary income during the taxable
year that it is earned. Taxation is not deferred, even if the income is not
distributed out of the contract. The income is taxable as ordinary income, not
capital gain.
The non-natural persons rules do not apply to all entity-owned contracts. A
contract that is owned by a non-natural person as an agent of an individual is
treated as owned by the individual. This would cause the contract to be treated
as an annuity under the Internal Revenue Code, allowing tax deferral. However,
this exception does not apply when the non-natural person is an employer that
holds the contract under a non-qualified deferred compensation arrangement for
one or more employees.
The non-natural persons rules also do not apply to contracts that are:
- acquired by the estate of a decedent by reason of the death of the
decedent;
- issued in connection with certain qualified retirement plans and
individual retirement plans;
- purchased by an employer upon the termination of certain
qualified retirement plans.
WITHHOLDING
Pre-death distributions from the contracts are subject to federal income tax.
Nationwide will withhold the tax from the distributions unless the contract
owner requests otherwise. If the distribution is from a Tax Sheltered Annuity,
it will be subject to mandatory 20% withholding that cannot be waived, unless:
- the distribution is made directly to another Tax Sheltered Annuity
or IRA; or
- the distribution satisfies the minimum distribution requirements
imposed by the Internal Revenue Code.
In addition, contract owners may not waive withholding if the distribution is
subject to mandatory back-up withholding (if no taxpayer identification number
is given or if the Internal Revenue Service notifies Nationwide that mandatory
back-up withholding is required). Mandatory back-up withholding rates are 31% of
income that is distributed.
NON-RESIDENT ALIENS
Generally, a pre-death distribution from a contract to a non-resident alien is
subject to federal income tax at a rate of 30% of the amount of income that is
distributed. Nationwide is required to withhold this amount and send it to the
Internal Revenue Service. Some distributions to non-resident aliens may be
subject to a lower (or no) tax if a treaty applies. In order to obtain the
benefits of such a treaty, the non-resident alien must:
(1) provide Nationwide with proof of residency and citizenship
(in accordance with Internal Revenue Service requirements); and
(2) provide Nationwide with an individual taxpayer identification number.
If the non-resident alien does not meet the above conditions, Nationwide will
withhold 30% of income from the distribution.
Another way to avoid the 30% withholding is for the non-resident alien to
provide Nationwide with sufficient evidence that:
(1) the distribution is connected to the non-resident alien's conduct of
business in the United States; and
(2) the distribution is includible in the non-resident alien's gross
income for United States federal income tax purposes.
Note that these distributions may be subject to back-up withholding, currently
31%, if a correct taxpayer identification number is not provided.
FEDERAL ESTATE, GIFT, AND GENERATION SKIPPING TRANSFER TAXES
The following transfers may be considered a gift for federal gift tax purposes:
- a transfer of the contract from one contract owner to another; or
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<PAGE> 53
- a distribution to someone other than a contract owner.
Upon the contract owner's death, the value of the contract may subject to estate
taxes, even if all or a portion of the value is also subject to federal income
taxes.
Section 2612 of the Internal Revenue Code may require Nationwide to determine
whether a death benefit or other distribution is a "direct skip" and the amount
of the resulting generation skipping transfer tax, if any. A direct skip is when
property is transferred to, or a death benefit or other distribution is made to:
(a) an individual who is two or more generations younger than the contract
owner; or
(b) certain trusts, as described in Section 2613 of the Internal Revenue
Code (generally, trusts that have no beneficiaries who are not 2 or
more generations younger than the contract owner).
If the contract owner is not an individual, then for this purpose ONLY,
"contract owner" refers to any person:
- - who would be required to include the contract, death benefit, distribution,
or other payment in his or her federal gross estate at his or her death; or
- - who is required to report the transfer of the contract, death benefit,
distribution, or other payment for federal gift tax purposes.
If a transfer is a direct skip, Nationwide will deduct the amount of the
transfer tax from the death benefit, distribution or other payment, and remit it
directly to the Internal Revenue Service.
CHARGE FOR TAX
Nationwide is not required to maintain a capital gain reserve liability on
Non-Qualified Contracts. If tax laws change requiring a reserve, Nationwide may
implement and adjust a tax charge.
DIVERSIFICATION
Internal Revenue Code Section 817(h) contains rules on diversification
requirements for variable annuity contracts. A variable annuity contract that
does not meet these diversification requirements will not be treated as an
annuity, unless:
- - the failure to diversify was accidental;
- - the failure is corrected; and
- - a fine is paid to the Internal Revenue Service.
The amount of the fine will be the amount of tax that would have been paid by
the contract owner if the income, for the period the contract was not
diversified, had been received by the contract owner.
If the violation is not corrected, the contract owner will be considered the
owner of the underlying securities and will be taxed on the earnings of his or
her contract. Nationwide believes that the investments underlying this contract
meet these diversification requirements.
TAX CHANGES
The foregoing tax information is based on Nationwide's understanding of federal
tax laws. It is NOT intended as tax advice. All information is subject to change
without notice. For more details, contact your personal tax and/or financial
advisor.
STATEMENTS AND REPORTS
Nationwide will mail contract owners statements and reports. Therefore, contract
owners should promptly notify Nationwide of any address change.
These mailings will contain:
- - statements showing the contract's quarterly activity;
- - confirmation statements showing transactions that affect the contract's
value. Confirmation statements will not be sent for recurring transactions
(i.e., Dollar Cost Averaging or salary reduction programs). Instead,
confirmation of recurring
53
<PAGE> 54
transactions will appear in the contract's quarterly statements;
- - semi-annual reports as of June 30 containing financial statements for the
variable account; and
- - annual reports as of December 31 containing financial statements for the
variable account.
Contract owners should review statements and confirmations carefully. All errors
or corrections must be reported to Nationwide immediately to assure proper
crediting to the contract. Unless Nationwide is notified within 30 days of
receipt of the statement, Nationwide will assume statements and confirmation
statements are correct.
LEGAL PROCEEDINGS
Nationwide is a party to litigation and arbitration proceedings in the ordinary
course of its business, none of which is expected to have a material adverse
effect on Nationwide.
In recent years, life insurance companies have been named as defendants in
lawsuits, including class action lawsuits, relating to life insurance and
annuity pricing and sales practices. A number of these lawsuits have resulted in
substantial jury awards or settlements.
In November 1997, two plaintiffs, one who was the owner of a variable life
insurance contract and the other who was the owner of a variable annuity
contract, commenced a lawsuit in a federal court in Texas against Nationwide
Life Insurance Company and the American Century group of defendants (Robert
Young and David D. Distad v. Nationwide Life Insurance Company et al.). In this
lawsuit, plaintiffs sought to represent a class of variable life insurance
contract owners and variable annuity contract owners whom they claim were
allegedly misled when purchasing these variable contracts into believing that
the performance of their underlying mutual fund option managed by American
Century, whose shares may only be purchased by insurance companies, would track
the performance of a mutual fund, also managed by American Century, whose shares
are publicly traded. The amended complaint seeks unspecified compensatory and
punitive damages. On April 27, 1998, the District Court denied, in part, and
granted, in part, motions to dismiss the complaint filed by Nationwide and
American Century. The remaining claims against Nationwide allege securities
fraud, common law fraud, civil conspiracy, and breach of contract. The District
Court, on December 2, 1998, issued an order denying plaintiffs' motion for class
certification and the appeals court declined to review the order denying class
certification upon interlocutory appeal. On June 11, 1999, the District Court
denied the plaintiffs' motion to amend their complaint and reconsider class
certification. In January 2000, Nationwide and American Century settled this
lawsuit now limited to the claims of the two named plaintiffs. On February 9,
2000, the court dismissed this lawsuit with prejudice.
On October 29, 1998, Nationwide was named in a lawsuit filed in Ohio state court
related to the sale of deferred annuity products for use as investments in
tax-deferred contributory retirement plans (Mercedes Castillo v. Nationwide
Financial Services, Inc., Nationwide Life Insurance Company and Nationwide Life
and Annuity Insurance Company). On May 3, 1999, the complaint was amended to,
among other things, add Marcus Shore as a second plaintiff. The amended
complaint is brought as a class action on behalf of all persons who purchased
individual deferred annuity contracts or participated in group annuity contracts
sold by Nationwide and the other named Nationwide affiliates which were used to
fund certain tax-deferred retirement plans. The amended complaint seeks
unspecified compensatory and punitive damages. No class has been certified. On
June 11, 1999, Nationwide and the other named defendants filed a motion to
dismiss the amended complaint. On March 8, 2000, the court denied the motion to
dismiss the amended complaint filed by Nationwide and other named defenants.
Nationwide intends to defend this lawsuit vigorously.
There can be no assurance that any litigation relating to pricing or sales
practices will not
54
<PAGE> 55
have a material adverse effect on Nationwide in the future.
The general distributor, NISC, is not engaged in any litigation of any material
nature.
ADVERTISING AND SUB-ACCOUNT PERFORMANCE SUMMARY
ADVERTISING
A "yield" and "effective yield" may be advertised for the NSAT Money Market
Fund. "Yield" is a measure of the net dividend and interest income earned over a
specific seven-day period (which period will be stated in the advertisement)
expressed as a percentage of the offering price of the NSAT Money Market Fund's
units. Yield is an annualized figure, which means that it is assumed that the
NSAT Money Market Fund generates the same level of net income over a 52-week
period. The "effective yield" is calculated similarly but includes the effect of
assumed compounding, calculated under rules prescribed by the SEC. The effective
yield will be slightly higher than yield due to this compounding effect.
Nationwide may advertise the performance of a sub-account in relation to the
performance of other variable annuity sub-accounts, underlying mutual fund
options with similar or different objectives, or the investment industry as a
whole. Other investments to which the sub-accounts may be compared include, but
are not limited to:
- - precious metals;
- - real estate;
- - stocks and bonds;
- - closed-end funds;
- - bank money market deposit accounts and passbook savings;
- - CDs; and
- - the Consumer Price Index.
Market Indexes
The sub-accounts will be compared to certain market indexes, such as:
- - S&P 500;
- - Shearson/Lehman Intermediate Government/Corporate Bond Index;
- - Shearson/Lehman Long-Term Government/Corporate Bond Index;
- - Donoghue Money Fund Average;
- - U.S. Treasury Note Index;
- - Bank Rate Monitor National Index of 2 1/2 Year CD Rates; and
- - Dow Jones Industrial Average.
Tracking & Rating Services; Publications
Nationwide's rankings and ratings are sometimes published by other services,
such as:
- - Lipper Analytical Services, Inc.;
- - CDA/Wiesenberger;
- - Morningstar;
- - Donoghue's;
- - magazines such as:
= Money;
= Forbes;
= Kiplinger's Personal Finance Magazine;
= Financial World;
= Consumer Reports;
= Business Week;
= Time;
= Newsweek;
= National Underwriter; and
= News and World Report;
- - LIMRA;
- - Value;
- - Best's Agent Guide;
- - Western Annuity Guide;
- - Comparative Annuity Reports;
- - Wall Street Journal;
- - Barron's;
- - Investor's Daily;
- - Standard & Poor's Outlook; and
- - Variable Annuity Research & Data Service (The VARDS Report).
These rating services and publications rank the underlying mutual funds'
performance against other funds. These rankings may or may not include the
effects of sales charges or other fees.
Financial Rating Services
Nationwide is also ranked and rated by independent financial rating services,
among
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<PAGE> 56
which are Moody's, Standard & Poor's and A.M. Best Company. Nationwide may
advertise these ratings. These ratings reflect Nationwide's financial strength
or claims-paying ability. The ratings are not intended to reflect the investment
experience or financial strength of the variable account.
Some Nationwide advertisements and endorsements may include lists of
organizations, individuals or other parties that recommend Nationwide or the
contract. Furthermore, Nationwide may occasionally advertise comparisons of
currently taxable and tax deferred investment programs, based on selected tax
brackets, or discussions of alternative investment vehicles and general economic
conditions.
Historical Performance of the Sub-Accounts
Nationwide will advertise historical performance of the sub-accounts. Nationwide
may advertise for the sub-account's standardized average annual total return
("standardized return") calculated in a manner prescribed by the SEC, and
non-standardized average annual total return ("non-standardized return").
Standardized return shows the percentage rate of return of a hypothetical
initial investment of $1,000 for the most recent one, five and ten year periods
(or for a period covering the time the underlying mutual fund has been available
in the variable account if it has not been available for one of the prescribed
periods). This calculation reflects the standard 7 year CDSC schedule and the
charges that could be assessed to a contract if the maximum rider options for a
contract issued as a Tax Sheltered Annuity are chosen (2.70%). Standardized
return does not reflect the deduction of state premium taxes, which may be
imposed by certain states.
Non-standardized return is calculated similarly to standardized return except
non-standardized return assumes an initial investment of $25,000, with variable
account charges of 0.95%. No CDSC is reflected. An assumed initial investment of
$25,000 is used because that amount more accurately reflects the average
contract size.
Both methods of calculation reflect total return for the most recent one, five
and ten year periods (or for a period covering the time the underlying mutual
fund has been in existence). For those underlying mutual funds which have not
been available for one of the prescribed periods, the nonstandardized total
return illustrations will show the investment performance the underlying mutual
funds would have achieved had they been available in the variable account for
one of the periods. If the underlying mutual fund has been available in the
variable account for less than one year (or if the underlying mutual fund has
been effective for less than one year) standardized and non-standardized
performance is not annualized.
The standardized average annual total return and nonstandardized total return
quotations are calculated using data for the period ended December 31, 1999.
However, Nationwide generally provides performance information more frequently.
Information relating to performance of the sub-accounts is based on historical
earnings and does not represent or guarantee future results.
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<PAGE> 57
SUB-ACCOUNT PERFORMANCE SUMMARY
STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
10 Years
or Date Fund
Available in Date Fund
the Variable Available in
1 Year 5 Years Account the Variable
Sub-Account Option to 12/31/99 to 12/31/99 to 12/31/99 Account
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Century Variable Portfolios, Inc. - American 8.57% N/A 17.59% 11/03/97
Century VP Income & Growth
American Century Variable Portfolios, Inc. - American 53.48% N/A 31.44% 11/03/97
Century VP International
American Century Variable Portfolios, Inc. - American -9.59% N/A -2.06% 11/03/97
Century VP Value
Dreyfus Investment Portfolios - European Equity N/A N/A 57.11% 09/27/99
Portfolio
The Dreyfus Socially Responsible Growth Fund, Inc. 20.34% N/A 23.02% 11/03/97
Dreyfus Stock Index Fund, Inc. 11.09% N/A 19.07% 11/03/97
Dreyfus Variable Investment Fund - Appreciation 2.17% N/A 14.98% 11/03/97
Portfolio (formerly, Dreyfus Variable Investment Fund
- Capital Appreciation Portfolio)
Federated Insurance Series - Federated Quality Bond N/A N/A -9.19% 05/03/99
Fund II
Fidelity VIP Equity-Income Portfolio: Service Class -2.90% N/A 4.65% 11/03/97
Fidelity VIP Growth Portfolio: Service Class 27.38% N/A 29.97% 11/03/97
Fidelity VIP High Income Portfolio: Service Class -1.13% N/A -3.10% 11/03/97
Fidelity VIP Overseas Portfolio: Service Class 32.43% N/A 18.70% 11/03/97
Fidelity VIP II Contrafund(R) Portfolio: Service Class 14.56% N/A 19.30% 11/03/97
Fidelity VIP III Growth Opportunities Portfolio: -4.92% N/A 9.67% 11/03/97
Service Class
NSAT Capital Appreciation Fund -4.84% N/A 11.94% 11/03/97
NSAT Government Bond Fund -10.94% N/A -1.66% 11/03/97
NSAT Money Market Fund -4.29% N/A -0.21% 10/31/97
NSAT Total Return Fund -2.24% N/A 7.45% 11/03/97
NSAT Nationwide Balanced Fund -8.03% N/A -0.53% 11/03/97
NSAT Nationwide Equity Income Fund 9.02% N/A 11.12% 11/03/97
NSAT Nationwide Global 50 Fund (formerly, NSAT 13.35% N/A 14.68% 11/03/97
Nationwide Global Equity Fund)
NSAT Nationwide High Income Bond Fund -5.89% N/A -0.06% 11/03/97
NSAT Nationwide Mid Cap Index Fund (formerly, NSAT 11.39% N/A 8.90% 11/03/97
Nationwide Select Advisers Mid Cap Fund)
NSAT Nationwide Multi Sector Bond Fund -7.40% N/A -2.88% 11/03/97
NSAT Nationwide Small Cap Growth Fund (formerly, NSAT N/A N/A 95.29% 05/03/99
Nationwide Select Advisers Small Cap Growth Fund)
NSAT Nationwide Small Cap Value Fund 18.13% N/A 4.31% 11/03/97
NSAT Nationwide Small Company Fund 33.92% N/A 11.59% 11/03/97
NSAT Nationwide Strategic Growth Fund 73.68% N/A 37.52% 11/03/97
Neuberger Berman AMT Guardian Portfolio 5.56% N/A 18.71% 11/03/97
Neuberger Berman AMT Mid-Cap Growth Portfolio 43.58% N/A 47.65% 11/03/97
</TABLE>
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<PAGE> 58
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
10 Years
or Date Fund
Available in Date Fund
the Variable Available in
1 Year 5 Years Account the Variable
Sub-Account Option to 12/31/99 to 12/31/99 to 12/31/99 Account
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Neuberger Berman AMT Partners Portfolio -1.82% N/A 0.76% 11/03/97
Oppenheimer Variable Account Funds - Oppenheimer 72.59% N/A 31.53% 11/03/97
Aggressive Growth Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Capital
Appreciation Fund)
Oppenheimer Variable Account Funds - Oppenheimer 31.63% N/A 23.52% 11/03/97
Capital Appreciation Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Growth Fund)
Oppenheimer Variable Account Funds - Oppenheimer Main 12.17% N/A 8.03% 11/03/97
Street Growth & Income Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Growth & Income
Fund)
The Universal Institutional Funds, Inc. - Emerging 19.65% N/A -6.61% 11/03/97
Markets Debt Portfolio (formerly, Morgan Stanley Dean
Witter Universal Funds, Inc. - Emerging Markets Debt
Portfolio)
Van Eck Worldwide Insurance Trust - Worldwide 88.86% N/A 2.00% 11/03/97
Emerging Markets Fund
Van Eck Worldwide Insurance Trust - Worldwide Hard 11.48% N/A -16.88% 11/03/97
Assets Fund
Van Kampen Life Investment Trust - Morgan Stanley -11.87% N/A -10.09% 11/03/97
Real Estate Securities Portfolio
</TABLE>
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
$25,000 INITIAL INVESTMENT
PLEASE NOTE: THE PERFORMANCE NUMBERS BELOW REFLECT THE DEDUCTION OF THE AMOUNT
ASSESSED FOR THE BASE CONTRACT 0.95% (A CONTRACT WITH NO RIDER OPTIONS). FOR
CONTRACT OWNERS WHO HAVE CHOSEN ONE OR MORE RIDER OPTIONS, THE FUND PERFORMANCE
AS SHOWN WOULD BE REDUCED IN ACCORDANCE TO THE COSTS OF THE RIDER OPTIONS
SELECTED.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
10 Years
to 12/31/99
1 Year 5 Years or Life of Date Fund
Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Century Variable Portfolios, Inc. - American 16.90% N/A 23.53% 10/30/97
Century VP Income & Growth
American Century Variable Portfolios, Inc. - American 62.49% 23.12% 18.94% 05/02/94
Century VP International
American Century Variable Portfolios, Inc. - American -1.79% N/A 12.81% 05/01/96
Century VP Value
Dreyfus Investment Portfolios - European Equity N/A N/A 28.38% 04/30/99
Portfolio
The Dreyfus Socially Responsible Growth Fund, Inc. 28.84% 27.45% 22.93% 10/06/93
Dreyfus Stock Index Fund, Inc. 19.46% 26.64% 16.48% 09/29/89
Dreyfus Variable Investment Fund - Appreciation 10.40% 24.09% 18.75% 04/05/93
Portfolio (formerly, Dreyfus Variable Investment Fund -
Capital Appreciation Portfolio)
Federated Insurance Series - Federated Quality Bond N/A N/A -2.65% 04/22/99
Fund II
</TABLE>
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<PAGE> 59
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
10 Years
to 12/31/99
1 Year 5 Years or Life of Date Fund
Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Fidelity VIP Equity-Income Portfolio: Service Class 5.25% 17.45% 13.39% 10/09/86
Fidelity VIP Growth Portfolio: Service Class 35.98% 28.46% 18.78% 10/09/86
Fidelity VIP High Income Portfolio: Service Class 7.05% 9.76% 11.35% 09/19/85
Fidelity VIP Overseas Portfolio: Service Class 41.11% 16.21% 10.35% 01/28/87
Fidelity VIP II Contrafund(R) Portfolio: Service Class 22.97% N/A 26.18% 01/03/95
Fidelity VIP III Growth Opportunities Portfolio: 3.19% N/A 20.35% 01/03/95
Service Class
NSAT Capital Appreciation Fund 3.29% 23.19% 16.17% 04/15/92
NSAT Government Bond Fund -3.28% 6.45% 6.65% 11/08/82
NSAT Money Market Fund 3.85% 4.23% 4.00% 11/10/81
NSAT Total Return Fund 5.93% 19.56% 13.66% 11/08/82
NSAT Nationwide Balanced Fund -0.09% N/A 3.77% 10/31/97
NSAT Nationwide Equity Income Fund 17.37% N/A 15.25% 10/31/97
NSAT Nationwide Global 50 Fund (formerly, NSAT 21.76% N/A 18.77% 10/31/97
Nationwide Global Equity Fund)
NSAT Nationwide High Income Bond Fund 2.21% N/A 4.22% 10/31/97
NSAT Nationwide Mid Cap Index Fund (formerly, NSAT 19.77% N/A 13.19% 10/31/97
Nationwide Select Advisers Mid Cap Fund)
NSAT Nationwide Multi Sector Bond Fund 0.59% N/A 1.43% 10/31/97
NSAT Nationwide Small Cap Growth Fund (formerly, NSAT N/A N/A 103.72% 05/03/99
Nationwide Select Advisers Small Cap Growth Fund)
NSAT Nationwide Small Cap Value Fund 26.62% N/A 8.54% 10/31/97
NSAT Nationwide Small Company Fund 42.65% N/A 22.06% 10/23/95
NSAT Nationwide Strategic Growth Fund 83.00% N/A 41.46% 10/31/97
Neuberger Berman AMT Guardian Portfolio 13.84% N/A 22.87% 11/03/97
Neuberger Berman AMT Mid-Cap Growth Portfolio 52.43% N/A 51.80% 11/03/97
Neuberger Berman AMT Partners Portfolio 6.35% 19.89% 16.38% 03/22/94
Oppenheimer Variable Account Funds - Oppenheimer 81.86% 28.48% 19.29% 08/15/86
Aggressive Growth Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Capital
Appreciation Fund)
Oppenheimer Variable Account Funds - Oppenheimer 40.31% 29.43% 17.34% 04/03/85
Capital Appreciation Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Growth Fund)
Oppenheimer Variable Account Funds - Oppenheimer Main 20.55% N/A 24.61% 07/05/95
Street Growth & Income Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Growth & Income
Fund)
The Universal Institutional Funds, Inc. - Emerging 28.15% N/A -3.59% 06/19/97
Markets Debt Portfolio (formerly, Morgan Stanley Dean
Witter Universal Funds, Inc. - Emerging Markets Debt
Portfolio)
Van Eck Worldwide Insurance Trust - Worldwide Emerging 98.38% N/A 8.93% 12/21/95
Markets Fund
Van Eck Worldwide Insurance Trust - Worldwide Hard 19.85% 0.52% 2.08% 09/01/89
Assets Fund
Van Kampen Life Investment Trust - Morgan Stanley Real -4.29% N/A 9.45% 07/03/95
Estate Securities Portfolio
</TABLE>
59
<PAGE> 60
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Fund: Service Shares, and the Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no sub-account
performance is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
sub-account performance is available.
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION
PAGE
General Information and History................................1
Services.......................................................1
Purchase of Securities Being Offered...........................2
Underwriters...................................................2
Calculations of Performance....................................2
Annuity Payments...............................................3
Financial Statements...........................................4
60
<PAGE> 61
APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL FUNDS
The underlying mutual funds listed below are designed primarily as investments
for variable annuity contracts and variable life insurance policies issued by
insurance companies.
There is no guarantee that the investment objectives will be met.
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC., A MEMBER OF THE AMERICAN CENTURY(SM)
FAMILY OF INVESTMENTS
American Century Variable Portfolios, Inc. was organized as a Maryland
corporation in 1987. It is a diversified, open-end investment management company
that offers its shares only as investment vehicles for variable annuity and
variable life insurance products of insurance companies. American Century
Variable Portfolios, Inc. is managed by American Century Investment Management,
Inc.
AMERICAN CENTURY VP INCOME & GROWTH
Investment Objective: Dividend growth, current income and capital
appreciation. The Fund seeks to achieve its investment objective by
investing in common stocks. The investment manager constructs the portfolio
to match the risk characteristics of the S&P 500 Stock Index and then
optimizes each portfolio to achieve the desired balance of risk and return
potential. This includes targeting a dividend yield that exceeds that of
the S&P 500. Such a management technique known as "portfolio optimization"
may cause the Fund to be more heavily invested in some industries than in
others. However, the Fund may not invest more than 25% of its total assets
in companies whose principal business activities are in the same industry.
AMERICAN CENTURY VP INTERNATIONAL
Investment Objective: To seek capital growth. The Fund will seek to achieve
its investment objective by investing primarily in securities of foreign
companies that meet certain fundamental and technical standards of
selection and, in the opinion of the investment manager, have potential for
appreciation. Under normal conditions, the Fund will invest at least 65% of
its assets in common stocks or other equity securities of issuers from at
least three countries outside the United States. While securities of United
States issuers may be included in the portfolio from time to time, it is
the primary intent of the manager to diversify investments across a broad
range of foreign issuers. Although the primary investment of the Fund will
be common stocks (defined to include depository receipts for common stock
and other equity equivalents), the Fund may also invest in other types of
securities consistent with the Fund's objective. When the manager believes
that the total capital growth potential of other securities equals or
exceeds the potential return of common stocks, the Fund may invest up to
35% of its assets in such other securities. There can be no assurance that
the Fund will achieve its objectives.
AMERICAN CENTURY VP VALUE
Investment Objective: The investment objective of the Fund is long-term
capital growth; income is a secondary objective. The equity securities in
which the Fund will invest will be primarily securities of well-established
companies with intermediate-to-large market capitalizations that are
believed by management to be undervalued at the time of purchase. Under
normal market conditions, the Fund expects to invest at least 80% of the
value of its total asset in equity securities, including common and
preferred stock, convertible preferred stock and convertible debt
obligations.
DREYFUS INVESTMENT PORTFOLIOS
Dreyfus Investment Portfolios (the "Fund") is an open-end, management investment
company known as a mutual fund. Shares are offered only to variable annuity and
variable life insurance separate accounts established by insurance companies to
fund variable annuity contracts and variable life insurance policies and to
qualified pension and retirement plans. Individuals may not purchase shares
directly
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from the Fund. The Dreyfus Corporation serves as the Fund's investment
adviser.
EUROPEAN EQUITY PORTFOLIO
Investment Objective: The Portfolio seeks long-term capital growth. To
pursue this goal, the Portfolio generally invests at least 80% of its total
assets in stocks included within the universe of the 300 largest European
companies. The Portfolio may invest up to 10% of its total assets in the
stocks of non-European companies. The Portfolio's stock investments may
include common stocks, preferred stocks and convertible securities.
DREYFUS STOCK INDEX FUND, INC.
The Dreyfus Stock Index Fund, Inc. is an open-end, non-diversified, management
investment company incorporated under Maryland law on January 24, 1989 and
commenced operations on September 29, 1989. The Fund offers its shares only as
investment vehicles for variable annuity and variable life insurance products of
insurance companies. The Dreyfus Corporation ("Dreyfus") serves as the Fund's
manager, while Mellon Equity Associates, an affiliate of Dreyfus, serves as the
Fund's index manager. Dreyfus is a wholly owned subsidiary of Mellon Bank, N.A.,
which is a wholly owned subsidiary of Mellon Bank Corporation.
Investment Objective: To provide investment results that correspond to the
price and yield performance of publicly traded common stocks in the
aggregate, as represented by the Standard & Poor's 500 Composite Stock
Price Index. The Fund is neither sponsored by nor affiliated with Standard
& Poor's Corporation.
DREYFUS VARIABLE INVESTMENT FUND
Dreyfus Variable Investment Fund is an open-end, management investment company.
It was organized as an unincorporated business trust under the laws of the
Commonwealth of Massachusetts on October 29, 1986 and commenced operations on
August 31, 1990. The Fund offers its shares only as investment vehicles for
variable annuity and variable life insurance products of insurance companies.
Dreyfus serves as the Fund's manager. Fayez Sarofim & Company serves as the
sub-adviser and provides day-to-day management of the Portfolio.
APPRECIATION PORTFOLIO (FORMERLY, CAPITAL APPRECIATION PORTFOLIO)
Investment Objective: The Portfolio's primary investment objective is to
provide long-term capital growth consistent with the preservation of
capital; current income is a secondary investment objective. This Portfolio
invests primarily in the common stocks of domestic and foreign issuers.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
The Dreyfus Socially Responsible Growth Fund, Inc. is an open-end, diversified,
management investment company incorporated under Maryland law on July 20, 1992
and commenced operations on October 7, 1993. The Fund offers its share only as
investment vehicles for variable annuity and variable life insurance products of
insurance companies. Dreyfus serves as the Fund's investment adviser. NCM
Capital Management Group, Inc. serves as the Fund's sub-investment adviser and
provides day-to-day management of the Fund's portfolio.
Investment Objective: Capital growth through equity investment in companies
that, in the opinion of the Fund's advisers, not only meet traditional
investment standards, but which also show evidence that they conduct their
business in a manner that contributes to the enhancement of the quality of
life in America. Current income is secondary to the primary goal.
FEDERATED INSURANCE SERIES
Federated Insurance Series (the "Trust"), an Open-End Management Investment
Company, was established as a Massachusetts business trust, under a Declaration
of Trust dated September 15, 1993. The Trust offers its shares only as
investment vehicles for variable annuity and variable life insurance products of
insurance companies. Federated Investment Management Company serves as the
investment adviser.
FEDERATED QUALITY BOND FUND II
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Investment Objective: Current income by investing in investment grade fixed
income securities.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
The Fidelity Variable Insurance Products Fund (VIP) is an open-end, diversified,
management investment company organized as a Massachusetts business trust on
November 13, 1981. Shares of VIP are purchased by insurance companies to fund
benefits under variable life insurance policies and variable annuity contracts.
Fidelity Management & Research Company ("FMR") is the manager for VIP and its
portfolios.
VIP EQUITY-INCOME PORTFOLIO: SERVICE CLASS
Investment Objective: Reasonable income by investing primarily in
income-producing equity securities. In choosing these securities FMR also
will consider the potential for capital appreciation. The Portfolio's goal
is to achieve a yield which exceeds the composite yield on the securities
comprising the Standard & Poor's 500 Composite Stock Price Index.
VIP GROWTH PORTFOLIO: SERVICE CLASS
Investment Objective: Capital appreciation. This Portfolio will invest in
the securities of both well-known and established companies, and smaller,
less well-known companies which may have a narrow product line or whose
securities are thinly traded. These latter securities will often involve
greater risk than may be found in the ordinary investment security. FMR's
analysis and expertise plays an integral role in the selection of
securities and, therefore, the performance of the Portfolio. Many
securities which FMR believes would have the greatest potential may be
regarded as speculative, and investment in the Portfolio may involve
greater risk than is inherent in other underlying mutual funds. It is also
important to point out that this Portfolio makes sense for you if you can
afford to ride out changes in the stock market because it invests primarily
in common stocks. FMR can also make temporary investments in securities
such as investment-grade bonds, high-quality preferred stocks and
short-term notes, for defensive purposes when it believes market conditions
warrant.
VIP HIGH INCOME PORTFOLIO: SERVICE CLASS
Investment Objective: High level of current income by investing primarily
in high-risk, lower-rated, high-yielding, fixed-income securities, while
also considering growth of capital. FMR will seek high current income
normally by investing the Portfolio's assets as follows:
- at least 65% in income-producing debt securities and preferred stocks,
including convertible securities
- up to 20% in common stocks and other equity securities when consistent
with the Portfolio's primary objective or acquired as part of a unit
combining fixed-income and equity securities
Higher yields are usually available on securities that are lower-rated or
that are unrated. Lower-rated securities are usually defined as Ba or lower
by Moody's Investor Service, Inc. ("Moody's"); BB or lower by Standard &
Poor's and may be deemed to be of a speculative nature. The Portfolio may
also purchase lower-quality bonds such as those rated Ca3 by Moody's or C-
by Standard & Poor's which provide poor protection for payment of principal
and interest (commonly referred to as "junk bonds"). For a further
discussion of lower-rated securities, please see the "Risks of Lower-Rated
Debt Securities" section of the Portfolio's prospectus.
VIP OVERSEAS PORTFOLIO: SERVICE CLASS
Investment Objective: Long-term capital growth primarily through
investments in foreign securities. This Portfolio provides a means for
investors to diversify their own portfolios by participating in companies
and economies outside the United States.
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FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
The Fidelity Variable Insurance Products Fund II (VIP II) is an open-end,
diversified, management investment company organized as a Massachusetts business
trust on March 21, 1988. VIP II's shares are purchased by insurance companies to
fund benefits under variable life insurance policies and variable annuity
contracts. FMR is the manager of VIP II and its portfolios.
VIP II CONTRAFUND(R) PORTFOLIO: SERVICE CLASS
Investment Objective: To seek capital appreciation by investing primarily
in companies that FMR believes to be undervalued due to an overly
pessimistic appraisal by the public. This strategy can lead to investments
in domestic or foreign companies, small and large, many of which may not be
well known. The Portfolio primarily invests in common stock and securities
convertible into common stock, but it has the flexibility to invest in any
type of security that may produce capital appreciation.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III
The Fidelity Variable Insurance Products Fund III (VIP III) is an open-end,
diversified, management investment company organized as a Massachusetts business
trust on July 14, 1994. VIP III's shares are purchased by insurance companies to
fund benefits under variable life insurance policies and variable annuity
contracts. FMR is the manager of VIP III and it's portfolios.
VIP III GROWTH OPPORTUNITIES PORTFOLIO: SERVICE CLASS
Investment Objective: Capital growth by investing primarily in common
stocks and securities convertible into common stocks. The Portfolio, under
normal conditions, will invest at least 65% of its total assets in
securities of companies that FMR believes have long-term growth potential.
Although the Portfolio invests primarily in common stock and securities
convertible into common stock, it has the ability to purchase other
securities, such as preferred stock and bonds, that may produce capital
growth. The Portfolio may invest in foreign securities without limitation.
JANUS ASPEN SERIES
The Janus Aspen Series is an open-end management investment company whose shares
are offered in connection with investment in and payments under variable annuity
contracts and variable life insurance policies, as well as certain qualified
retirement plans. Janus Capital Corporation serves as investment adviser to each
Portfolio.
CAPITAL APPRECIATION PORTFOLIO: SERVICE SHARES
Investment Objective: Seeks long-term growth of capital by investing
primarily in common stocks selected for their growth potential. The
Portfolio may invest in companies of any size, from larger,
well-established companies to smaller, emerging growth companies.
GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES
Investment Objective: Seeks long-term growth of capital by investing
primarily in equity securities of U.S. and foreign companies selected for
their growth potential. Under normal circumstances, the portfolio invests
at least 65% of its total assets in securities of companies that the
portfolio manager believes will benefit significantly from advances or
improvements in technology.
INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES
Investment Objective: Seeks long-term growth of capital by investing at
least 65% of its total assets in securities of issuers from at least five
different countries, excluding the United States. Although the Portfolio
intends to invest substantially all of its assets in issuers located
outside the United States, it may invest in U.S. issuers and it may at
times invest all of its assets in fewer than five countries, or even a
single country.
NATIONWIDE SEPARATE ACCOUNT TRUST
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Nationwide Separate Account Trust ("NSAT") is a diversified open-end management
investment company created under the laws of Massachusetts. NSAT offers shares
in the mutual funds listed below, each with its own investment objectives.
Shares of NSAT will be sold primarily to separate accounts to fund the benefits
under variable life insurance policies and variable annuity contracts issued by
life insurance companies. The assets of NSAT are managed by Villanova Mutual
Fund Capital Trust ("VMF"), an indirect subsidiary of Nationwide Financial
Services, Inc.
CAPITAL APPRECIATION FUND
Investment Objective: Long-term capital appreciation.
GOVERNMENT BOND FUND
Investment Objective: As high a level of income as is consistent with the
preservation of capital by investing in a diversified portfolio of
securities issued or backed by the U.S. Government, its agencies or
instrumentalities.
MONEY MARKET FUND
Investment Objective: As high a level of current income as is consistent
with the preservation of capital and maintenance of liquidity.
TOTAL RETURN FUND
Investment Objective: To obtain a reasonable, long-term total return on
invested capital.
SUBADVISED NATIONWIDE FUNDS
NATIONWIDE BALANCED FUND
Subadviser: J.P. Morgan Investment Management, Inc.
Investment Objective: Primarily seeks above-average income compared to a
portfolio entirely invested in equity securities. The Fund's secondary
objective is to take advantage of opportunities for growth of capital and
income. The Fund seeks its objective primarily through investments in a
broad variety of securities, including equity securities, fixed-income
securities and short-term obligations. Under normal market conditions, it
is anticipated that the Fund will invest at least 40% of the Fund's total
assets in equity securities and at least 25% in fixed-income senior
securities. The Fund's subadviser will have discretion to invest in the
full range of maturities of fixed-income securities. Generally, most of
the Fund's long-term debt investments will consist of "investment grade"
securities, but the Fund may invest up to 20% of its net assets in
non-convertible fixed-income securities rated below investment grade or
determined by the subadviser to be of comparable quality. These
securities are commonly known as junk bonds. In addition, the Fund may
invest an unlimited amount in convertible securities rated below
investment grade.
NATIONWIDE EQUITY INCOME FUND
Subadviser: Federated Investment Counseling
Investment Objective: Seeks above average income and capital appreciation
by investing at least 65% of its assets in income-producing equity
securities. Such equity securities include common stocks, preferred
stocks, and securities (including debt securities) that are convertible
into common stocks. The portion of the Fund's total assets invested in
each type of equity security will vary according to the Fund's
subadviser's assessment of market, economic conditions and outlook.
NATIONWIDE GLOBAL 50 FUND (FORMERLY, NATIONWIDE GLOBAL EQUITY FUND)
Subadviser: J. P. Morgan Investment Management Inc.
Investment Objective: To provide high total return from a globally
diversified portfolio of equity securities. Total return will consist of
income plus realized and unrealized capital gains and losses. The Fund
seeks its investment objective through country allocation, stock
selection and management of currency exposure. Under normal market
conditions, J.P. Morgan Investment Management Inc. intends to keep the
Fund essentially fully
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invested with at least 65% of the value of its total assets in equity
securities consisting of common stocks and other securities with equity
characteristics such as preferred stocks, warrants, rights, convertible
securities, trust certificates, limited partnership interests and equity
participations. The Fund's primary equity instruments are the common stock
of companies based in the developed countries around the world. The assets
of the Fund will ordinarily be invested in the securities of at least five
different countries.
NATIONWIDE HIGH INCOME BOND FUND
Subadviser: Federated Investment Counseling
Investment Objective: Seeks to provide high current income by investing
primarily in a professionally managed, diversified portfolio of fixed
income securities. To meet its objective, the Fund intends to invest at
least 65% of its assets in lower-rated fixed income securities such as
preferred stocks, bonds, debentures, notes, equipment lease certificates
and equipment trust certificates which are rated BBB or lower by Standard
& Poor's or Fitch Investors Service or Baa or lower by Moody's (or if not
rated, are determined by the Fund's subadviser to be of a comparable
quality). Such investments are commonly referred to as "junk bonds." For
a further discussion of lower-rated securities, please see the "High
Yield Securities" section of the Fund's prospectus.
NATIONWIDE MID CAP INDEX FUND (FORMERLY NATIONWIDE SELECT ADVISERS MID
CAP FUND)
Subadviser: The Dreyfus Corporation
Investment Objective: Capital appreciation. The Fund seeks to match the
performance of the Standard & Poor's MidCap 400 Index. To pursue this
goal, the Fund generally is fully invested in all 400 stocks included in
this index in proportion to their weighting in the index, and in futures
whose performance is tied to the index. The Fund is neither sponsored by
nor affiliated with Standard & Poor's Corporation.
NATIONWIDE MULTI SECTOR BOND FUND
Subadviser: Miller, Anderson & Sherrerd, LLP
Investment Objective: Primarily seeks a high level of current income.
Capital appreciation is a secondary objective. The Fund seeks to achieve
its objectives by investing in a globally diverse portfolio of
fixed-income investments and by giving the subadviser broad discretion to
deploy the Fund's assets among certain segments of the fixed-income
market that the subadviser believes will best contribute to achievement
of the Fund's investment objectives. The Fund reserves the right to
invest predominantly in securities rated in medium or lower categories,
or as determined by the subadviser to be of comparable quality, commonly
referred to as "junk bonds." Although the subadviser has the ability to
invest up to 100% of the Fund's assets in lower-rated securities, the
subadviser does not anticipate investing in excess of 75% of the Fund's
assets in such securities.
NATIONWIDE SMALL CAP GROWTH FUND (FORMERLY, NATIONWIDE SELECT ADVISERS
SMALL CAP GROWTH FUND)
Subadvisers: Franklin Advisers, Inc., Miller Anderson & Sherrerd, LLP,
Neuberger Berman, LLC.
Investment Objective: Seeks capital growth by investing in a broadly
diversified portfolio of equity securities issued by U.S. and foreign
companies with market capitalizations in the range of companies
represented by the Russell 2000, known has small cap companies. Under
normal market conditions, the Fund will invest at least 65% of its total
assets in the equity securities of small cap companies. The balance of
the Fund's assets may be invested in equity securities of larger cap
companies.
NATIONWIDE SMALL CAP VALUE FUND
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Subadviser: The Dreyfus Corporation
Investment Objective: The Fund intends to pursue its investment objective
by investing, under normal market conditions, at least 75% of the Fund's
total assets in equity securities of companies whose equity market
capitalizations at the time of investment are similar to the market
capitalizations of companies in the Russell 2000 Small Stock Index.
NATIONWIDE SMALL COMPANY FUND
Subadvisers: The Dreyfus Corporation, Neuberger Berman, LLC., Lazard
Asset Management and Strong Capital Management, Inc.
Investment Objective: Under normal market conditions, the Fund will
invest at least 65% of its total assets in equity securities of
companies whose equity market capitalizations at the time of
investment are similar to the market capitalizations of companies in
the Russell 2000 Small Stock Index.
NATIONWIDE STRATEGIC GROWTH FUND
Subadviser: Strong Capital Management Inc.
Investment Objective: Capital growth by investing primarily in equity
securities that the Fund's subadviser believes have above-average growth
prospects. The Fund will generally invest in companies whose earnings are
believed to be in a relatively strong growth trend, and to a lesser
extent, in companies in which significant further growth is not
anticipated but whose market value is thought to be undervalued. Under
normal market conditions, the Fund will invest at least 65% of its total
assets in equity securities, including common stocks, preferred stocks,
and securities convertible into common or preferred stocks, such as
warrants and convertible bonds. The Fund may invest up to 35% of its
total assets in debt obligations, including intermediate- to long-term
corporate or U.S. Government debt securities.
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Neuberger Berman Advisers Management Trust ("NB AMT") is an open-end,
diversified management investment company consisting of several series. Shares
of the series of NB AMT are offered in connection with certain variable annuity
contracts and variable life insurance policies issued through life insurance
company separate accounts and are also offered directly to qualified pension and
retirement plans outside of the separate account context.
The Guardian, Partners and Mid-Cap Growth Portfolios of NB AMT invest all of
their investable assets in a corresponding series of Advisers Managers Trust
managed by Neuberger & Berman Management Incorporated ("NB Management"). Each
series then invests in securities in accordance with an investment objective,
policies and limitations identical to those of the Portfolio. This
"master/feeder fund" structure is different from that of many other investment
companies which directly acquire and manage their own portfolios of securities.
(For more information regarding "master/feeder fund" structure, see "Special
Information Regarding Organization, Capitalization, and Other Matters" in the
underlying mutual fund prospectus.) The investment advisor is NB Management.
AMT GUARDIAN PORTFOLIO
Investment Objective: Capital appreciation and secondarily, current income.
The Portfolio and its corresponding series seek to achieve these objectives
by investing in common stocks of long-established, high-quality companies.
NB Management uses a value-oriented investment approach in selecting
securities, looking for low price-to-earnings ratios, strong balance
sheets, solid management, and consistent earnings.
AMT MID-CAP GROWTH PORTFOLIO
Investment Objective: Capital appreciation by investing in equity
securities of medium-sized companies that NB Management believes have the
potential for long-term, above-average capital appreciation.
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Medium-sized companies have market capitalizations form $300 million to $10
billion at the time of investment. The Portfolio and its corresponding
series may invest up to 10% of its net assets, measured at the time of
investment, in corporate debt securities that are below investment grade
or, if unrated, deemed by NB Management to be of comparable quality.
Securities that are below investment grade, as well as unrated securities,
are often considered to be speculative and usually entail greater risk. As
a part of the Portfolio's investment strategy, the Portfolio may invest up
to 20% of its net assets in securities of issuers organized and doing
business principally outside the United States. This limitation does not
apply with respect to foreign securities that are denominated in U.S.
dollars.
AMT PARTNERS PORTFOLIO
Investment Objective: Capital growth by investing primarily in the common
stock of established companies. Its investment program seeks securities
believed to be undervalued based on fundamentals such as low
price-to-earnings ratios, consistent cash flows, and the company's track
record through all parts of the market cycle.
OPPENHEIMER VARIABLE ACCOUNT FUNDS
The Oppenheimer variable account Funds are an open-end, diversified management
investment company organized as a Massachusetts business trust in 1984. Shares
of the Funds are sold to provide benefits under variable life insurance policies
and variable annuity contracts. OppenheimerFunds, Inc. is the investment
adviser.
OPPENHEIMER AGGRESSIVE GROWTH FUND/VA (FORMERLY, OPPENHEIMER CAPITAL
APPRECIATION FUND)
Investment Objective: Capital appreciation by investing in "growth type"
companies. Such companies are believed to have relatively favorable
long-term prospects for increasing demand for their goods or services, or
to be developing new products, services or markets and normally retain a
relatively larger portion of their earnings for research, development and
investment in capital assets. The Fund may also invest in cyclical
industries in "special situations" that OppenheimerFunds, Inc. believes
present opportunities for capital growth.
OPPENHEIMER CAPITAL APPRECIATION FUND/VA (FORMERLY, OPPENHEIMER GROWTH
FUND)
Investment Objective: Capital appreciation by investing in securities of
well-known established companies. Such securities generally have a history
of earnings and dividends and are issued by seasoned companies (companies
which have an operating history of at least five years including
predecessors). Current income is a secondary consideration in the selection
of the Fund's portfolio securities.
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Investment Objective: To seek long-term capital appreciation by investing a
substantial portion of assets in securities of foreign issuers,
"growth-type" companies, cyclical industries and special appreciation
possibilities. These securities may be considered speculative.
OPPENHEIMER MAIN STREET GROWTH & INCOME FUND/VA (FORMERLY, OPPENHEIMER
GROWTH & INCOME FUND)
Investment Objective: High total return, which stocks, preferred stocks,
convertible securities and warrants. Debt investments will include bonds,
participation includes growth in the value of its shares as well as current
income from quality and debt securities. In seeking its investment
objectives, the Fund may invest in equity and debt securities. Equity
investments will include common interests, asset-backed securities,
private-label mortgage-backed securities and CMOs, zero coupon securities
and U.S. debt obligations, and cash and cash equivalents. From time to
time, the Fund may focus on small to medium capitalization issuers, the
securities of which may be subject to greater price
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volatility than those of larger capitalized issuers.
STRONG OPPORTUNITY FUND II, INC.
The Strong Opportunity Fund II, Inc. is a diversified, open-end management
company commonly called a mutual fund. The Strong Opportunity Fund II, Inc. was
incorporated in Wisconsin and may only be purchased by the separate accounts of
insurance companies for the purpose of funding variable annuity contracts and
variable life insurance policies. Strong Capital Management Inc. is the
investment adviser for the Fund.
Investment Objective: To seek capital appreciation through investment in a
diversified portfolio of equity securities.
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (FORMERLY, MORGAN STANLEY DEAN WITTER
UNIVERSAL FUNDS, INC.)
The Universal Institutional Funds, Inc. is a mutual fund designed to provide
investment vehicles for variable annuity contracts and variable life insurance
policies and for certain tax-qualified investors. Its Emerging Markets Debt
Portfolio is managed by Morgan Stanley Dean Witter Investment Management, Inc.
EMERGING MARKETS DEBT PORTFOLIO
Investment Objective: High total return by investing primarily in dollar
and non-dollar denominated fixed income securities of government and
government-related issuers located in emerging market countries, which
securities provide a high level of current income, while at the same time
holding the potential for capital appreciation if the perceived
creditworthiness of the issuer improves due to improving economic,
financial, political, social or other conditions in the country in which
the issuer is located.
MID CAP GROWTH PORTFOLIO
Investment Objective: Long-term capital growth by investing primarily in
common stocks and other equity securities of issuers with equity
capitalizations in the range of the companies represented in the Standard &
Poor's Rating Group ("S&P") MidCap 400 Index. Such range is generally $500
million to $6 billion but the range fluctuates over time with changes in
the equity market. Miller Anderson & Sherrerd, LLP is the Portfolio's
investment adviser.
VAN ECK WORLDWIDE INSURANCE TRUST
Van Eck Worldwide Insurance Trust is an open-end management investment company
organized as a business trust under the laws of the Commonwealth of
Massachusetts on January 7, 1987. Shares of Van Eck Trust are offered only to
separate accounts of insurance companies to fund the benefits of variable life
insurance policies and variable annuity contracts. The investment advisor and
manager is Van Eck Associates Corporation.
WORLDWIDE EMERGING MARKETS FUND
Investment Objective: Seeks long-term capital appreciation by investing
primarily in equity securities in emerging markets around the world. The
Fund emphasizes investment in countries that, compared to the world's major
economies, exhibit relatively low gross national product per capita, as
well as the potential for rapid economic growth.
WORLDWIDE HARD ASSETS FUND
Investment Objective: Long-term capital appreciation by investing primarily
in "Hard Asset Securities." For the Fund's purpose, "Hard Assets" are real
estate, energy, timber, and industrial and precious metals. Income is a
secondary consideration.
VAN KAMPEN LIFE INVESTMENT TRUST
Van Kampen Life Investment Trust is an open-end diversified management
investment company organized as a Delaware business trust. Shares are offered in
separate portfolios which are sold only to insurance companies to provide
funding for variable life insurance policies and variable annuity contracts. Van
Kampen Asset Management Inc. serves as the Fund's investment adviser.
MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO
Investment Objective: Long-term capital growth by investing principally in
a
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diversified portfolio of securities of companies operating in the real
estate industry ("Real Estate Securities"). Current income is a secondary
consideration. Real Estate Securities include equity securities, including
common stocks and convertible securities, as well as non-convertible
preferred stocks and debt securities of real estate industry companies. A
"real estate industry company" is a company that derives at least 50% of
its assets (marked to market), gross income or net profits from the
ownership, construction, management or sale of residential, commercial or
industrial real estate. Under normal market conditions, at least 65% of the
Fund's total assets will be invested in Real Estate Securities, primarily
equity securities of real estate investment trusts. The Portfolio may
invest up to 25% of its total assets in securities issued by foreign
issuers, some or all of which may also be Real Estate Securities.
VICTORY VARIABLE INSURANCE FUNDS
The Victory Variable Insurance Funds (the "Trust") is a Delaware business trust
formed on February 11, 1998. The Trust is offered exclusively through contracts
offered by the separate accounts of participating insurance companies. Key Asset
Management Inc. serves as the investment adviser for each fund offered through
the Trust.
DIVERSIFIED STOCK FUND: CLASS A
Investment Objective: Seeks to provide long-term growth of capital. The
Fund pursues its objective by investing primarily in equity securities and
securities convertible into common stocks traded on U.S. exchanges and
issued by large, established companies.
SMALL COMPANY OPPORTUNITY FUND: CLASS A
Investment Objective: Seeks to provide capital appreciation. The Fund
pursues its objective by investing primarily in common stocks of smaller
companies that show the potential for high earnings growth in relation to
their price-earnings ratio.
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APPENDIX B: CONDENSED FINANCIAL INFORMATION
Accumulation unit values for accumulation units outstanding throughout the
period.
NO OPTIONAL BENEFITS ELECTED (TOTAL 0.95%)
(VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF
THE VARIABLE ACCOUNT)
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
American Century 13.081019 15.291612 16.90% 2,513,258 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.409767 13.081019 25.66% 946,527 1998
10.000000 10.409767 4.10% 5,919 1997
American Century 13.081019 15.291612 16.90% 2,807,167 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.409767 13.081019 25.66% 1,151,139 1998
10.000000 10.409767 4.10% 14,727 1997
American Century 11.866841 19.282175 62.49% 2,360,732 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.088106 11.866841 17.63% 1,214,960 1998
10.000000 10.088106 0.88% 11,451 1997
American Century 11.866841 19.282175 62.49% 2,777,990 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.088106 11.866841 17.63% 1,436,710 1998
10.000000 10.088106 0.88% 27,628 1997
American Century 10.689857 10.498316 -1.79% 945,480 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.296896 10.689857 3.82% 628,798 1998
10.000000 10.296896 2.97% 32,890 1997
American Century 10.689857 10.498316 -1.79% 1,026,094 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.296896 10.689857 3.82% 591,086 1998
10.000000 10.296896 2.97% 24,450 1997
Dreyfus Investment 10.000000 12.898688 28.99% 41,399 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.898688 28.99% 54,269 1999
Portfolios - European
Equity Portfolio - NQ
</TABLE>
71
<PAGE> 72
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 13.034607 16.794438 28.84% 2,490,588 1999
Responsible Growth
Fund, Inc. - Q
10.171132 13.034607 28.15% 863,479 1998
10.000000 10.171132 1.71% 13,265 1997
The Dreyfus Socially 13.034607 16.794438 28.84% 2,097,881 1999
Responsible Growth
Fund, Inc. - NQ
10.171132 13.034607 28.15% 722,724 1998
10.000000 10.171132 1.71% 28,338 1997
Dreyfus Stock Index 13.135997 15.692141 19.46% 13,859,686 1999
Fund, Inc. - Q
10.343734 13.135997 26.99% 6,472,951 1998
10.000000 10.343734 3.44% 167,229 1997
Dreyfus Stock Index 13.135997 15.692141 19.46% 15,204,584 1999
Fund, Inc. - NQ
10.343734 13.135997 26.99% 6,916,295 1998
10.000000 10.343734 3.44% 220,208 1997
Dreyfus Variable 13.220513 14.595134 10.40% 2,336,276 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.249990 13.220513 28.98% 966,816 1998
10.000000 10.249990 2.50% 23,139 1997
Dreyfus Variable 13.220513 14.595134 10.40% 3,182,017 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.249990 13.220513 28.98% 1,623,591 1998
10.000000 10.249990 2.50% 36,467 1997
Federated Insurance 10.000000 9.806807 -1.93% 178,105 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.806807 -1.93% 169,575 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.422130 12.021290 5.25% 7,527,109 1999
Equity-Income
Portfolio: Service
Class - Q
10.338433 11.422130 10.48% 4,636,060 1998
10.000000 10.338433 3.88% 124,825 1997
Fidelity VIP 11.422130 12.021290 5.25% 7,090,189 1999
Equity-Income
Portfolio: Service
Class - NQ
10.338433 11.422130 10.48% 4,426,005 1998
10.000000 10.338433 3.88% 152,449 1997
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
72
<PAGE> 73
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 13.848033 18.830990 35.98% 7,476,227 1999
Portfolio: Service
Class - Q
10.030842 13.848033 38.05% 2,213,917 1998
10.000000 10.030842 0.31% 51,944 1997
Fidelity VIP Growth 13.848033 18.830990 35.98% 7,731,135 1999
Portfolio: Service
Class - NQ
10.030842 13.848033 38.05% 1,956,872 1998
10.000000 10.030842 0.31% 64,880 1997
Fidelity VIP High 9.586675 10.262325 7.05% 4,293,166 1999
Income Portfolio:
Service Class - Q
10.126638 9.586675 -5.33% 2,988,516 1998
10.000000 10.126638 1.27% 90,815 1997
Fidelity VIP High 9.586675 10.262325 7.05% 4,760,656 1999
Income Portfolio:
Service Class - NQ
10.126638 9.586675 -5.33% 3,101,392 1998
10.000000 10.126638 1.27% 114,247 1997
Fidelity VIP Overseas 11.047878 15.589761 41.11% 1,137,825 1999
Portfolio: Service
Class - Q
9.902344 11.047878 11.57% 628,967 1998
10.000000 9.902344 -0.98% 29,834 1997
Fidelity VIP Overseas 11.047878 15.589761 41.11% 1,895,187 1999
Portfolio: Service
Class - NQ
9.902344 11.047878 11.57% 759,889 1998
10.000000 9.902344 -0.98% 32,688 1997
Fidelity VIP II 12.812355 15.755094 22.97% 6,613,280 1999
Contrafund(R) Portfolio:
Service Class - Q
9.954885 12.812355 28.70% 2,855,573 1998
10.000000 9.954885 -0.45% 94,143 1997
Fidelity VIP II 12.812355 15.755094 22.97% 6,834,444 1999
Contrafund(R) Portfolio:
Service Class - NQ
9.954885 12.812355 28.70% 2,984,400 1998
10.000000 9.954885 -0.45% 137,715 1997
Fidelity VIP III Growth 12.826216 13.235715 3.19% 3,585,801 1999
Opportunities
Portfolio: Service
Class - Q
10.400464 12.826216 23.32% 2,008,161 1998
10.000000 10.400464 4.00% 65,917 1997
Fidelity VIP III Growth 12.826216 13.235715 3.19% 3,945,447 1999
Opportunities
Portfolio: Service
Class - NQ
10.400464 12.826216 23.32% 2,027,101 1998
10.000000 10.400464 4.00% 74,836 1997
</TABLE>
73
<PAGE> 74
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
NSAT Capital 13.369463 13.808913 3.29% 7,098,886 1999
Appreciation Fund - Q
10.385596 13.369463 28.73% 4,205,204 1998
10.000000 10.385596 3.86% 76,048 1997
NSAT Capital 13.369463 13.808913 3.29% 6,348,266 1999
Appreciation Fund - NQ
10.385596 13.369463 28.73% 4,692,586 1998
10.000000 10.385596 3.86% 74,609 1997
NSAT Government Bond 10.941842 10.583479 -3.28% 5,965,281 1999
Fund - Q
10.143182 10.941842 7.87% 3,515,365 1998
10.000000 10.143182 1.43% 67,127 1997
NSAT Government Bond 10.941842 10.583479 -3.28% 5,433,963 1999
Fund - NQ
10.143182 10.941842 7.87% 3,219,249 1998
10.000000 10.143182 1.43% 138,589 1997
NSAT Money Market Fund 10.504509 10.909142 3.85% 8,318,964 1999
- - Q*
10.074129 10.504509 4.27% 4,897,425 1998
10.000000 10.074129 0.74% 155,902 1997
NSAT Money Market Fund 10.504509 10.909142 3.85% 7,955,423 1999
- - NQ*
10.074129 10.504509 4.27% 5,506,084 1998
10.000000 10.074129 0.74% 581,682 1997
NSAT Total Return Fund 11.979444 12.689484 5.93% 12,447,397 1999
- - Q
10.242940 11.979444 16.95% 8,192,315 1998
10.000000 10.242940 2.43% 182,146 1997
NSAT Total Return Fund 11.979444 12.689484 5.93% 8,730,211 1999
- - NQ
10.242940 11.979444 16.95% 5,639,031 1998
10.000000 10.242940 2.43% 197,787 1997
NSAT Nationwide 10.844036 10.834304 -0.09% 1,925,779 1999
Balanced Fund - Q
10.130674 10.844036 7.04% 1,031,517 1998
10.000000 10.130674 1.31% 20,941 1997
NSAT Nationwide 10.844036 10.834304 -0.09% 1,728,516 1999
Balanced Fund - NQ
10.130674 10.844036 7.04% 926,279 1998
10.000000 10.130674 1.31% 23,584 1997
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was
4.43%.
74
<PAGE> 75
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.588459 13.600816 17.37% 415,174 1999
Income Fund - Q
10.161693 11.588459 14.04% 236,776 1998
10.000000 10.161693 1.62% 10,838 1997
NSAT Nationwide Equity 11.588459 13.600816 17.37% 528,752 1999
Income Fund - NQ
10.161693 11.588459 14.04% 340,149 1998
10.000000 10.161693 1.62% 27,331 1997
NSAT Nationwide Global 11.921445 14.515197 21.76% 555,584 1999
50 Fund - Q(1)
10.102208 11.921445 18.01% 296,688 1998
10.000000 10.102208 1.02% 15,788 1997
NSAT Nationwide Global 11.921445 14.515197 21.76% 696,878 1999
50 Fund - NQ(1)
10.102208 11.921445 18.01% 382,578 1998
10.000000 10.102208 1.02% 12,998 1997
NSAT Nationwide High 10.701912 10.938415 2.21% 1,036,571 1999
Income Bond Fund - Q
10.212505 10.701912 4.79% 649,669 1998
10.000000 10.212505 2.13% 15,004 1997
NSAT Nationwide High 10.701912 10.938415 2.21% 1,171,043 1999
Income Bond Fund - NQ
10.212505 10.701912 4.79% 709,535 1998
10.000000 10.212505 2.13% 33,703 1997
NSAT Nationwide Mid Cap 10.919701 13.078919 19.77% 282,298 1999
Index Fund- Q(2)
9.949100 10.919701 9.76% 170,630 1998
10.000000 9.949100 -0.51% 3,322 1997
NSAT Nationwide Mid Cap 10.919701 13.078919 19.77% 271,883 1999
Index Fund- NQ(2)
9.949100 10.919701 9.76% 185,038 1998
10.000000 9.949100 -0.51% 5,540 1997
NSAT Nationwide Multi 10.252876 10.313452 0.59% 1,518,522 1999
Sector Bond Fund - Q
10.088793 10.252876 1.63% 915,224 1988
10.000000 10.88793 0.89% 13,658 1997
NSAT Nationwide Multi 10.252879 10.313452 0.59% 1,424,905 1999
Sector Bond Fund - NQ
10.088793 10.252879 1.63% 933,093 1998
10.000000 10.088793 0.89% 41,385 1997
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
75
<PAGE> 76
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.372476 103.72% 117,284 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.372476 103.72% 175,712 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 9.432351 11.943543 26.62% 1,481,928 1999
Cap Value Fund - Q
9.823904 9.432351 -3.99% 912,173 1998
10.000000 9.823904 -1.76% 29,661 1997
NSAT Nationwide Small 9.432351 11.943543 26.62% 1,717,394 1999
Cap Value Fund - NQ
9.823904 9.432351 -3.99% 1,020,607 1998
10.000000 9.823904 -1.76% 42,125 1997
NSAT Nationwide Small 9.617964 13.720318 42.65% 1,803,873 1999
Company Fund - Q
9.613184 9.617964 0.05% 1,257,363 1998
10.000000 9.613184 -3.87% 26,226 1997
NSAT Nationwide Small 9.617964 13.720318 42.65% 1,988,022 1999
Company Fund - NQ
9.613184 9.617964 0.05% 1,253,383 1998
10.000000 9.613184 -3.87% 60,510 1997
NSAT Nationwide 11.582258 21.195607 83.00% 969,074 1999
Strategic Growth Fund -
Q
10.204129 11.582258 13.51% 265,065 1998
10.000000 10.204129 2.04% 7,333 1997
NSAT Nationwide 11.582258 21.195607 83.00% 1,214,402 1999
Strategic Growth Fund -
NQ
10.204129 11.582258 13.51% 223,704 1998
10.000000 10.204129 2.04% 14,559 1997
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
76
<PAGE> 77
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 13.699229 15.595438 13.84% 926,123 1999
Guardian Portfolio - Q
10.504106 13.699229 30.42% 571,944 1998
10.000000 10.504106 5.04% 5,387 1997
Neuberger Berman AMT 13.699229 15.595438 13.84% 972,681 1999
Guardian Portfolio - NQ
10.504106 13.699229 30.42% 609,252 1998
10.000000 10.504106 5.04% 9,331 1997
Neuberger Berman AMT 16.144809 24.609353 52.43% 953,685 1999
Mid-Cap Growth
Portfolio - Q
11.702355 16.144809 37.96% 432,869 1998
10.000000 11.702355 17.02% 24,058 1997
Neuberger Berman AMT 16.144809 24.609353 52.43% 1,108,088 1999
Mid-Cap Growth
Portfolio - NQ
11.702355 16.144809 37.96% 449,661 1998
10.000000 11.702355 17.02% 27,997 1997
Neuberger Berman AMT 10.458607 11.122733 6.35% 3,088,664 1999
Partners Portfolio - Q
10.132434 10.458607 3.22% 3,019,935 1998
10.000000 10.132434 1.32% 123,308 1997
Neuberger Berman AMT 10.458607 11.122733 6.35% 2,945,134 1999
Partners Portfolio - NQ
10.132434 10.458607 3.22% 2,840,958 1998
10.000000 10.132434 1.32% 816,409 1997
Oppenheimer Variable 10.609896 19.295630 81.86% 1,728,692 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
9.533314 10.609896 11.29% 780,153 1998
10.000000 9.533314 -4.67% 17,204 1997
Oppenheimer Variable 10.609896 19.295630 81.86% 1,952,316 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
9.533314 10.609896 11.29% 751,161 1998
10.000000 9.533314 -4.67% 22,088 1997
Oppenheimer Variable 12.070167 16.935851 40.31% 2,387,151 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q2
9.827325 12.070167 22.82% 909,464 1998
10.000000 9.827325 -1.73% 32,359 1997
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
77
<PAGE> 78
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 12.070167 16.935851 40.31% 2,567,398 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
9.827325 12.070167 22.82% 1,091,207 1998
10.000000 9.827325 -1.73% 11,808 1997
Oppenheimer Variable 10.639805 12.826564 20.55% 2,668,902 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.259486 10.639805 3.71% 1,233,877 1998
10.000000 10.259486 2.59% 18,417 1997
Oppenheimer Variable 10.639805 12.826564 20.55% 2,644,668 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.259486 10.639805 3.71% 1,348,779 1998
10.000000 10.259486 2.59% 39,986 1997
The Universal 7.395794 9.477539 28.15% 175,855 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.425451 7.395794 -29.06% 148,936 1998
10.000000 10.425451 4.25% 3,325 1997
The Universal 13.369463 9.477539 28.15% 212,802 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.385596 13.369463 28.73% 152,995 1998
10.000000 10.385596 3.86% 5,093 1997
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
78
<PAGE> 79
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 5.751082 11.409292 98.38% 704,590 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
8.814851 5.751082 -34.76% 217,873 1998
10.000000 8.814851 -11.85% 9,145 1997
Van Eck Worldwide 5.751082 11.409292 98.38% 942,874 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
8.814851 5.751082 -34.76% 279,325 1998
10.000000 8.814851 -11.85% 18,343 1997
Van Eck Worldwide 6.139717 7.358645 19.85% 220,914 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
8.979477 6.139717 -31.63% 82,690 1998
10.000000 8.979477 -10.21% 10,008 1997
Van Eck Worldwide 6.139717 7.358645 19.85% 194,562 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
8.979477 6.139717 -31.63% 115,058 1998
10.000000 8.979477 -10.21% 7,257 1997
Van Kampen Life 9.050353 8.662065 -4.29% 685,275 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.338661 9.050353 -12.46% 646,017 1998
10.000000 10.338661 3.39% 32,778 1997
Van Kampen Life 9.050353 8.662065 -4.29% 759,304 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.338661 9.050353 -12.46% 606,338 1998
10.000000 10.338661 3.39% 27,341 1997
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service
79
<PAGE> 80
Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares
were added to the variable account effective January 27, 2000. Therefore, no
Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
80
<PAGE> 81
OPTIONAL BENEFITS ELECTED (TOTAL 1.00%)
(VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET
ASSETS OF THE VARIABLE ACCOUNT)
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
American Century 13.073386 15.274980 16.84% 1,577,411 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.408936 13.073386 25.60% 580,569 1998
10.000000 10.408936 4.09% 11,674 1997
American Century 13.073386 15.274980 16.84% 1,606,753 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.408936 13.073386 25.60% 612,039 1998
10.000000 10.408936 4.09% 5,571 1997
American Century 11.859906 19.261196 62.41% 1,526,161 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.087297 11.859906 17.57% 666,641 1998
10.000000 10.087297 0.87% 3,170 1997
American Century 11.859906 19.261196 62.41% 1,544,026 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.087297 11.859906 17.57% 793,846 1998
10.000000 10.087297 0.87% 9,299 1997
American Century 10.683601 10.486868 -1.84% 824,442 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.296077 10.683601 3.76% 355,592 1998
10.000000 10.296077 2.96% 42,338 1997
American Century 10.683601 10.486868 -1.84% 896,270 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.296077 10.683601 3.76% 298,758 1998
10.000000 10.296077 2.96% 22,796 1997
Dreyfus Investment 10.000000 12.897004 28.97% 32,116 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.897004 28.97% 45,699 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 13.026995 16.776156 28.78% 2,172,581 1999
Responsible Growth
Fund, Inc. - Q
10.170317 13.026995 28.09% 561,920 1998
10.000000 10.170317 1.70% 21,267 1997
</TABLE>
81
<PAGE> 82
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 13.026995 16.776156 28.78% 1,770,691 1999
Responsible Growth
Fund, Inc. - NQ
10.170317 13.026995 28.09% 535,958 1998
10.000000 10.170317 1.70% 13,946 1997
Dreyfus Stock Index 13.128325 15.675065 19.40% 13,182,601 1999
Fund, Inc. - Q
10.342909 13.128325 26.93% 4,388,390 1998
10.000000 10.342909 3.43% 79,005 1997
Dreyfus Stock Index 13.128325 15.675065 19.40% 14,291,330 1999
Fund, Inc. - NQ
10.342909 13.128325 26.93% 4,086,832 1998
10.000000 10.342909 3.43% 103,007 1997
Dreyfus Variable 13.212796 14.579248 10.34% 2,192,515 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.249171 13.212796 28.92% 617,598 1998
10.000000 10.249171 2.49% 16,809 1997
Dreyfus Variable 13.212796 14.579248 10.34% 2,832,349 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.249171 13.212796 28.92% 689,993 1998
10.000000 10.249171 2.49% 10,034 1997
Federated Insurance 10.000000 9.803523 -1.96% 154,459 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.803523 -1.96% 160,687 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.415454 12.008202 5.19% 7,080,869 1999
Equity-Income
Portfolio: Service
Class - Q
10.337608 11.415454 10.43% 3,162,232 1998
10.000000 10.337608 3.38% 80,230 1997
Fidelity VIP 11.415454 12.008202 5.19% 6,670,337 1999
Equity-Income
Portfolio: Service
Class - NQ
10.337608 11.415454 10.43% 3,555,107 1998
10.000000 10.337608 3.38% 101,670 1997
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
82
<PAGE> 83
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 13.839948 18.810518 35.91% 6,819,978 1999
Portfolio: Service
Class - Q
10.030041 13.839948 37.98% 1,630,266 1998
10.000000 10.030041 0.30% 26,495 1997
Fidelity VIP Growth 13.839948 18.810518 35.91% 6,931,647 1999
Portfolio: Service
Class - NQ
10.030041 13.839948 37.98% 1,448,151 1998
10.000000 10.030041 0.30% 42,184 1997
Fidelity VIP High 9.581067 10.251150 6.99% 3,852,925 1999
Income Portfolio:
Service Class - Q
10.125825 9.581067 -5.38% 1,712,919 1998
10.000000 10.125825 1.26% 28,809 1997
Fidelity VIP High 9.581067 10.251150 6.99% 4,271,795 1999
Income Portfolio:
Service Class - NQ
10.125825 9.581067 -5.38% 1,951,737 1998
10.000000 10.125825 1.26% 38,172 1997
Fidelity VIP Overseas 11.041416 15.572798 41.04% 1,053,858 1999
Portfolio: Service
Class - Q
9.901549 11.041416 11.51% 390,759 1998
10.000000 9.901549 -0.98% 6,886 1997
Fidelity VIP Overseas 11.041416 15.572798 41.04% 1,575,250 1999
Portfolio: Service
Class - NQ
9.901549 11.041416 11.51% 364,389 1998
10.000000 9.901549 -0.98% 13,646 1997
Fidelity VIP II 12.804877 15.737973 22.91% 6,036,330 1999
Contrafund(R)Portfolio:
Service Class - Q
9.954090 12.804877 28.64% 1,739,968 1998
10.000000 9.954090 -0.46% 52,859 1997
Fidelity VIP II 12.804877 15.737973 22.91% 6,134,643 1999
Contrafund(R) Portfolio:
Service Class - NQ
9.954090 12.804877 28.64% 1,750,336 1998
10.000000 9.954090 -0.46% 61,145 1997
Fidelity VIP III Growth 12.818700 13.221287 3.14% 3,502,629 1999
Opportunities
Portfolio: Service
Class - Q
10.399630 12.818700 23.26% 1,566,376 1998
10.000000 10.399630 4.00% 50,299 1997
Fidelity VIP III Growth 12.818700 13.221287 3.14% 3,451,516 1999
Opportunities
Portfolio: Service
Class - NQ
10.399630 12.818700 23.26% 1,701,741 1998
10.000000 10.399630 4.00% 34,840 1997
</TABLE>
83
<PAGE> 84
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
NSAT Capital 13.361662 13.793878 3.23% 6,538,905 1999
Appreciation Fund - Q
10.384765 13.361662 28.67% 2,713,689 1998
10.000000 10.384765 3.85% 42,993 1997
NSAT Capital 13.361662 13.793878 3.23% 5,631,533 1999
Appreciation Fund - NQ
10.384765 13.361662 28.67% 2,066,078 1998
10.000000 10.384765 3.85% 34,299 1997
NSAT Government Bond 10.935440 10.571951 -3.32% 5,669,841 1999
Fund - Q
10.142367 10.935440 7.82% 2,372,619 1998
10.000000 10.142367 1.42% 35,843 1997
NSAT Government Bond 10.935440 10.571951 -3.32% 5,131,486 1999
Fund - NQ
10.142367 10.935440 7.82% 2,154,523 1998
10.000000 10.142367 1.42% 31,348 1997
NSAT Money Market Fund 10.498325 10.897217 3.80% 7,114,834 1999
- - Q*
10.073279 10.498325 4.22% 3,146,858 1998
10.000000 10.073279 0.73% 172,291 1997
NSAT Money Market Fund 10.498325 10.897217 3.80% 6,833,650 1999
- - NQ*
10.073279 10.498325 4.22% 2,859,923 1998
10.000000 10.073279 0.73% 228,200 1997
NSAT Total Return Fund 11.972436 12.675660 5.87% 11,766,972 1999
- - Q
10.242118 11.972436 16.89% 4,776,547 1998
10.000000 10.242118 2.42% 84,236 1997
NSAT Total Return Fund 11.972436 12.675660 5.87% 8,280,792 1999
- - NQ
10.242118 11.972436 16.89% 3,782,609 1998
10.000000 10.242118 2.42% 76,652 1997
NSAT Nationwide 10.837697 10.822502 -0.14% 1,840,068 1999
Balanced Fund - Q
10.129864 10.837697 6.99% 724,101 1998
10.000000 10.129864 1.30% 18,660 1997
NSAT Nationwide 10.837697 10.822502 -0.14% 1,603,952 1999
Balanced Fund - NQ
10.129864 10.837697 6.99% 641,839 1998
10.000000 10.129864 1.30% 7,268 1997
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was
4.38%.
84
<PAGE> 85
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.581699 13.586032 17.31% 389,155 1999
Income Fund - Q
10.160882 11.581699 13.98% 182,603 1998
10.000000 10.160882 1.61% 10,109 1997
NSAT Nationwide Equity 11.581699 13.586032 17.31% 495,033 1999
Income Fund - NQ
10.160882 11.581699 13.98% 263,284 1998
10.000000 10.160882 1.61% 4,986 1997
NSAT Nationwide Global 11.914478 14.499401 21.70% 502,133 1999
50 Fund - Q(1)
10.101401 11.914478 17.95% 209,682 1998
10.000000 10.101401 1.01% 10,785 1997
NSAT Nationwide Global 11.914478 14.499401 21.70% 648,820 1999
50 Fund - NQ(1)
10.101401 11.914478 17.95% 265,967 1998
10.000000 10.101401 1.01% 5,708 1997
NSAT Nationwide High 10.695657 10.926498 2.16% 976,652 1999
Income Bond Fund - Q
10.211688 10.695657 4.74% 563,880 1998
10.000000 10.211688 2.12% 15,211 1997
NSAT Nationwide High 10.695657 10.926498 2.16% 1,112,643 1999
Income Bond Fund - NQ
10.211688 10.695657 4.74% 506,824 1998
10.000000 10.211688 2.12% 7,868 1997
NSAT Nationwide Mid Cap 10.913315 13.064679 19.71% 241,749 1999
Index Fund- Q(2)
9.948304 10.913315 9.70% 124,451 1998
10.000000 9.948304 -0.52% 5,466 1997
NSAT Nationwide Mid Cap 10.913315 13.064679 19.71% 235,446 1999
Index Fund- NQ(2)
9.948304 10.913315 9.70% 125,175 1998
10.000000 9.948304 -0.52% 4,072 1997
NSAT Nationwide Multi 10.246882 10.302225 0.54% 1,405,222 1999
Sector Bond Fund - Q
10.087985 10.246882 1.58% 627,837 1998
10.000000 10.087985 0.88% 22,440 1997
NSAT Nationwide Multi 10.246882 10.302225 0.54% 1,367,549 1999
Sector Bond Fund - NQ
10.087985 10.246882 1.58% 548,001 1998
10.000000 10.087985 0.88% 12,227 1997
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
85
<PAGE> 86
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.365684 103.66% 109,372 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.365684 103.66% 142,521 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 9.426837 11.930542 26.56% 1,270,898 1999
Cap Value Fund - Q
9.823118 9.426837 -4.03% 501,274 1998
10.000000 9.823118 -1.77% 16,510 1997
NSAT Nationwide Small 9.426837 11.930542 26.56% 1,478,150 1999
Cap Value Fund - NQ
9.823118 9.426837 -4.03% 467,220 1998
10.000000 9.823118 -1.77% 20,577 1997
NSAT Nationwide Small 9.612340 13.705373 42.58% 1,677,063 1999
Company Fund - Q
9.612411 9.612340 0.00% 832,015 1998
10.000000 9.612411 -3.88% 30,320 1997
NSAT Nationwide Small 9.612340 13.705373 42.58% 1,813,480 1999
Company Fund - NQ
9.612411 9.612340 0.00% 830,194 1998
10.000000 9.612411 -3.88% 32,541 1997
NSAT Nationwide 11.575478 21.172544 82.91% 859,846 1999
Strategic Growth Fund -
Q
10.203313 11.575478 13.45% 105,819 1998
10.000000 10.203313 2.03% 3,708 1997
NSAT Nationwide 11.575478 21.172544 82.91% 990,154 1999
Strategic Growth Fund -
NQ
10.203313 11.575478 13.45% 115,940 1998
10.000000 10.203313 2.03% 2,921 1997
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
86
<PAGE> 87
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 13.691238 15.578481 13.78% 889,965 1999
Guardian Portfolio - Q
10.503269 13.691238 30.35% 517,002 1998
10.000000 10.503269 5.03% 8,001 1997
Neuberger Berman AMT 13.691238 15.578481 13.78% 915,475 1999
Guardian Portfolio - NQ
10.503269 13.691238 30.35% 425,826 1998
10.000000 10.503269 5.03% 14,929 1997
Neuberger Berman AMT 16.135377 24.582570 52.35% 863,846 1999
Mid-Cap Growth
Portfolio - Q
11.701424 16.135377 37.89% 346,534 1998
10.000000 11.701424 17.01% 56,145 1997
Neuberger Berman AMT 16.135377 24.582570 52.35% 979,386 1999
Mid-Cap Growth
Portfolio - NQ
11.701424 16.135377 37.89% 372,662 1998
10.000000 11.701424 17.01% 16,768 1997
Neuberger Berman AMT 10.452498 11.110632 6.30% 2,922,435 1999
Partners Portfolio - Q
10.131623 10.452498 3.17% 1,949,091 1998
10.000000 10.131623 1.32% 195,515 1997
Neuberger Berman AMT 10.452498 11.110632 6.30% 2,826,527 1999
Partners Portfolio - NQ
10.131623 10.452498 3.17% 1,997,559 1998
10.000000 10.131623 1.32% 133,165 1997
Oppenheimer Variable 10.603692 19.274630 81.77% 1,563,772 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
9.532548 10.603692 11.24% 395,607 1998
10.000000 9.532548 -4.67% 11,021 1997
Oppenheimer Variable 10.603692 19.274630 81.77% 1,713,850 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
9.532548 10.603692 11.24% 445,810 1998
10.000000 9.532548 -4.67% 10,675 1997
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
87
<PAGE> 88
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 12.063121 16.917425 40.24% 2,150,641 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(1)
9.826536 12.063121 22.76% 581,682 1998
10.000000 9.826536 -1.73% 26,012 1997
Oppenheimer Variable 12.063121 16.917425 40.24% 2,383,083 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
9.826536 12.063121 22.76% 591,561 1998
10.000000 9.826536 -1.73% 16,143 1997
Oppenheimer Variable 10.633592 12.812596 20.49% 2,337,156 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.258664 10.633592 3.65% 825,634 1998
10.000000 10.258664 2.59% 15,547 1997
Oppenheimer Variable 10.633592 12.812596 20.49% 2,379,174 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.258664 10.633592 3.65% 1,013,404 1998
10.000000 10.258664 2.59% 15,661 1997
The Universal 7.391460 9.467196 28.08% 153,586 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.424614 7.391460 -29.10% 50,958 1998
10.000000 10.424614 4.25% 4,517 1997
The Universal 7.391460 9.467196 28.08% 183,638 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.424614 7.391460 -29.10% 56,822 1998
10.000000 10.424614 4.25% 4,151 1997
Van Eck Worldwide 5.747723 11.396847 98.28% 592,457 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
8.814146 5.747723 -34.79% 141,469 1998
10.000000 8.814146 -11.86% 30,479 1997
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
88
<PAGE> 89
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 5.747723 11.396847 98.28% 672,210 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
8.814146 5.747723 -34.79% 104,323 1998
10.000000 8.814146 -11.86% 15,119 1997
Van Eck Worldwide 6.136113 7.350618 19.79% 180,231 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
8.978753 6.136113 -31.66% 69,784 1998
10.000000 8.978753 -10.21% 765 1997
Van Eck Worldwide 6.136113 7.350618 19.79% 191,034 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
8.978753 6.136113 -31.66% 36,296 1998
10.000000 8.978753 -10.21% 4,496 1997
Van Kampen Life 9.045055 8.652617 -4.34% 639,967 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.337835 9.045055 -12.89% 372,172 1998
10.000000 10.337835 3.38% 8,443 1997
Van Kampen Life 9.045055 8.652617 -4.34% 675,822 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.337835 9.045055 -12.89% 250,104 1998
10.000000 10.337835 3.38% 23,459 1997
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
89
<PAGE> 90
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
90
<PAGE> 91
OPTIONAL BENEFITS ELECTED (TOTAL 1.05%)
(VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS
OF THE VARIABLE ACCOUNT)
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
American Century 13.065728 15.258324 16.78% 197,680 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.408098 13.065728 25.53% 81,928 1998
10.000000 10.408098 4.08% 832 1997
American Century 13.065728 15.258324 16.78% 322,820 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.408098 13.065728 25.53% 128,629 1998
10.000000 10.408098 4.08% 5,236 1997
American Century 11.852979 19.240268 62.32% 177,980 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.086493 11.852979 17.51% 99,298 1998
10.000000 10.086493 0.86% 698 1997
American Century 11.852979 19.240268 62.32% 314,342 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.086493 11.852979 17.51% 165,809 1998
10.000000 10.086493 0.86% 2,265 1997
American Century 10.677353 10.475442 -1.89% 99,697 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.295249 10.677353 3.71% 75,994 1998
10.000000 10.295249 2.95% 1,336 1997
American Century 10.677353 10.475442 -1.89% 110,453 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.295249 10.677353 3.71% 72,329 1998
10.000000 10.295249 2.95% 8,217 1997
Dreyfus Investment 10.000000 12.895311 28.95% 888 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.895311 28.95% 1,301 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 13.019372 16.757880 28.71% 184,179 1999
Responsible Growth
Fund, Inc. - Q
10.169503 13.019372 28.02% 85,520 1998
10.000000 10.169503 1.70% 4,821 1997
</TABLE>
91
<PAGE> 92
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 13.019372 16.757880 28.71% 321,097 1999
Responsible Growth
Fund, Inc. - NQ
10.169503 13.019372 28.02% 135,100 1998
10.000000 10.169503 1.70% 2,598 1997
Dreyfus Stock Index 13.120640 15.657978 19.34% 1,419,002 1999
Fund, Inc. - Q
10.342079 13.120640 26.87% 774,908 1998
10.000000 10.342079 3.42% 9,203 1997
Dreyfus Stock Index 13.120640 15.657978 19.34% 1,814,349 1999
Fund, Inc. - NQ
10.342079 13.120640 26.87% 913,818 1998
10.000000 10.342079 3.42% 13,090 1997
Dreyfus Variable 13.205079 14.563385 10.29% 341,142 1999
Investment Fund
- -Appreciation Portfolio
- - Q1
10.248351 13.205079 28.85% 127,679 1998
10.000000 10.248351 2.48% 3,777 1997
Dreyfus Variable 13.205079 14.563385 10.29% 488,187 1999
Investment Fund
- -Appreciation Portfolio
- - NQ1
10.248351 13.205079 28.85% 246,123 1998
10.000000 10.248351 2.48% 706 1997
Federated Insurance 10.000000 9.800240 -2.00% 13,067 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.800240 -2.00% 12,939 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.408770 11.995103 5.14% 824,118 1999
Equity-Income
Portfolio: Service
Class - Q
10.336779 11.408770 10.37% 519,240 1998
10.000000 10.336779 3.37% 18,611 1997
Fidelity VIP 11.408770 11.995103 5.14% 1,450,150 1999
Equity-Income
Portfolio: Service
Class - NQ
10.336779 11.408770 10.37% 864,765 1998
10.000000 10.336779 3.37% 36,514 1997
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
92
<PAGE> 93
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 13.831860 18.790040 35.85% 622,310 1999
Portfolio: Service
Class - Q
10.029235 13.831860 37.92% 251,252 1998
10.000000 10.029235 0.29% 4,718 1997
Fidelity VIP Growth 13.831860 18.790040 35.85% 989,940 1999
Portfolio: Service
Class - NQ
10.029235 13.831860 37.92% 343,224 1998
10.000000 10.029235 0.29% 9,713 1997
Fidelity VIP High 9.575458 10.239981 6.94% 755,876 1999
Income Portfolio:
Service Class - Q
10.125013 9.575458 -5.43% 374,496 1998
10.000000 10.125013 1.25% 2,418 1997
Fidelity VIP High 9.575458 10.239981 6.94% 835,175 1999
Income Portfolio:
Service Class - NQ
10.125013 9.575458 -5.43% 597,529 1998
10.000000 10.125013 1.25% 12,697 1997
Fidelity VIP Overseas 11.034969 15.555856 40.97% 146,217 1999
Portfolio: Service
Class - Q
9.900760 11.034969 11.46% 91,010 1998
10.000000 9.900760 -0.99% 887 1997
Fidelity VIP Overseas 11.034969 15.555856 40.97% 210,607 1999
Portfolio: Service
Class - NQ
9.900760 11.034969 11.46% 137,943 1998
10.000000 9.900760 -0.99% 9,071 1997
Fidelity VIP II 12.797393 15.720833 22.84% 508,355 1999
Contrafund(R) Portfolio:
Service Class - Q
9.953285 12.797393 28.57% 214,094 1998
10.000000 9.953285 -0.47% 12,678 1997
Fidelity VIP II 12.797393 15.720833 22.84% 791,389 1999
Contrafund(R) Portfolio:
Service Class - NQ
9.953285 12.797393 28.57% 446,178 1998
10.000000 9.953285 -0.47% 14,306 1997
Fidelity VIP III Growth 12.811215 13.206894 3.09% 427,281 1999
Opportunities
Portfolio: Service
Class - Q
10.398800 12.811215 23.20% 231,430 1998
10.000000 10.398800 3.99% 8,419 1997
Fidelity VIP III Growth 12.811215 13.206894 3.09% 467,420 1999
Opportunities
Portfolio: Service
Class - NQ
10.398800 12.811215 23.20% 295,189 1998
10.000000 10.398800 3.99% 13,599 1997
</TABLE>
93
<PAGE> 94
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
NSAT Capital 13.353842 13.778852 3.18% 618,426 1999
Appreciation Fund - Q
10.383931 13.353842 28.55% 391,203 1998
10.000000 10.383931 3.84% 4,967 1997
NSAT Capital 13.353842 13.778852 3.18% 696,071 1999
Appreciation Fund - NQ
10.383931 13.353842 28.55% 499,622 1998
10.000000 10.383931 3.84% 23,354 1997
NSAT Government Bond 10.929045 10.560422 -3.37% 624,963 1999
Fund - Q
10.141552 10.929045 7.77% 425,444 1998
10.000000 10.141552 1.42% 17,678 1997
NSAT Government Bond 10.929045 10.560422 -3.37% 905,625 1999
Fund - NQ
10.141552 10.929045 7.77% 578,467 1998
10.000000 10.141552 1.42% 21,953 1997
NSAT Money Market Fund 10.492136 10.885293 3.75% 934,453 1999
- - Q*
10.072429 10.492136 4.17% 771,712 1998
10.000000 10.072429 0.72% 109,198 1997
NSAT Money Market Fund 10.492136 10.885293 3.75% 1,260,592 1999
- - NQ*
10.072429 10.492136 4.17% 929,223 1998
10.000000 10.072429 0.72% 61,681 1997
NSAT Total Return Fund 11.965436 12.661861 5.82% 1,017,235 1999
- - Q
10.241300 11.965436 16.84% 695,020 1998
10.000000 10.241300 2.41% 13,269 1997
NSAT Total Return Fund 11.965436 12.661861 5.82% 1,052,685 1999
- - NQ
10.241300 11.965436 16.84% 694,278 1998
10.000000 10.241300 2.41% 37,377 1997
NSAT Nationwide 10.831355 10.810714 -0.19% 152,824 1999
Balanced Fund - Q
10.129053 10.831355 6.93% 121,918 1998
10.000000 10.129053 1.29% 4,261 1997
NSAT Nationwide 10.831355 10.810714 -0.19% 230,363 1999
Balanced Fund - NQ
10.129053 10.831355 6.93% 149,449 1998
10.000000 10.129053 1.29% 13,393 1997
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was
4.33%.
94
<PAGE> 95
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.574924 13.571227 17.25% 59,154 1999
Income Fund - Q
10.160070 11.574924 13.93% 32,573 1998
10.000000 10.160070 1.60% 2,466 1997
NSAT Nationwide Equity 11.574924 13.571227 17.25% 81,119 1999
Income Fund - NQ
10.160070 11.574924 13.93% 46,558 1998
10.000000 10.160070 1.60% 2,603 1997
NSAT Nationwide Global 11.907510 14.483618 21.63% 71,686 1999
50 Fund - Q(1)
10.100588 11.907510 17.89% 52,138 1998
10.000000 10.100588 1.01% 1,682 1997
NSAT Nationwide Global 11.907510 14.483618 21.63% 93,077 1999
50 Fund - NQ(1)
10.100588 11.907510 17.89% 52,521 1998
10.000000 10.100588 1.01% 3,870 1997
NSAT Nationwide High 10.689393 10.914588 2.11% 176,564 1999
Income Bond Fund - Q
10.210867 10.689393 4.69% 166,756 1998
10.000000 10.210867 2.11% 2,873 1997
NSAT Nationwide High 10.689393 10.914588 2.11% 286,727 1999
Income Bond Fund - NQ
10.210867 10.689393 4.69% 196,834 1998
10.000000 10.210867 2.11% 15,172 1997
NSAT Nationwide Mid Cap 10.906928 13.050437 19.65% 42,195 1999
Index Fund-Q(2)
9.947507 10.906928 9.64% 20,280 1998
10.000000 9.947507 -0.52% 2,671 1997
NSAT Nationwide Mid Cap 10.906928 13.050437 19.65% 46,779 1999
Index Fund- NQ(2)
9.947507 10.906928 9.64% 35,289 1998
10.000000 9.947507 -0.52% 1,954 1997
NSAT Nationwide Multi 10.240891 10.290997 0.49% 196,859 1999
Sector Bond Fund - Q
10.087176 10.240891 1.52% 180,699 1998
10.000000 10.087176 0.87% 2,097 1997
NSAT Nationwide Multi 10.240891 10.290997 0.49% 314,788 1999
Sector Bond Fund - NQ
10.087176 10.240891 1.52% 200,225 1998
10.000000 10.087176 0.87% 11,411 1997
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
95
<PAGE> 96
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.358893 103.59% 6,206 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.358893 103.59% 26,356 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 9.421309 11.917534 26.50% 132,145 1999
Cap Value Fund - Q
9.822329 9.421309 -4.08% 72,105 1998
10.000000 9.822329 -1.78% 3,373 1997
NSAT Nationwide Small 9.421309 11.917534 26.50% 226,896 1999
Cap Value Fund - NQ
9.822329 9.421309 -4.08% 149,068 1998
10.000000 9.822329 -1.78% 5,548 1997
NSAT Nationwide Small 9.606706 13.690433 42.51% 135,870 1999
Company Fund - Q
9.611642 9.606706 -0.05% 103,212 1998
10.000000 9.611642 -3.88% 453 1997
NSAT Nationwide Small 9.606706 13.690433 42.51% 236,341 1999
Company Fund - NQ
9.611642 9.606706 -0.05% 182,983 1998
10.000000 9.611642 -3.88% 12,059 1997
NSAT Nationwide 11.568711 21.149503 82.82% 63,606 1999
Strategic Growth Fund -
Q
10.202497 11.568711 13.39% 28,004 1998
10.000000 10.202497 2.02% 201 1997
NSAT Nationwide 11.568711 21.149503 82.82% 96,599 1999
Strategic Growth Fund -
NQ
10.202497 11.568711 13.39% 14,539 1998
10.000000 10.202497 2.02% 3,231 1997
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
96
<PAGE> 97
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 13.683246 15.561518 13.73% 86,496 1999
Guardian Portfolio - Q
10.502434 13.683246 30.29% 64,230 1998
10.000000 10.502434 5.02% 590 1997
Neuberger Berman AMT 13.683246 15.561518 13.73% 196,408 1999
Guardian Portfolio - NQ
10.502434 13.683246 30.29% 161,709 1998
10.000000 10.502434 5.02% 5,754 1997
Neuberger Berman AMT 16.125954 24.555839 52.28% 103,765 1999
Mid-Cap Growth
Portfolio - Q
11.700489 16.125954 37.82% 41,741 1998
10.000000 11.700489 17.00% 3,696 1997
Neuberger Berman AMT 16.125954 24.555839 52.28% 174,869 1999
Mid-Cap Growth
Portfolio - NQ
11.700489 16.125954 37.82% 107,495 1998
10.000000 11.700489 17.00% 6,472 1997
Neuberger Berman AMT 10.446379 11.098514 6.24% 277,649 1999
Partners Portfolio - Q
10.130813 10.446379 3.11% 269,744 1998
10.000000 10.130813 1.31% 9,975 1997
Neuberger Berman AMT 10.446379 11.098514 6.24% 352,607 1999
Partners Portfolio - NQ
10.130813 10.446379 3.11% 330,876 1998
10.000000 10.130813 1.31% 40,357 1997
Oppenheimer Variable 10.597477 19.253639 81.68% 137,594 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
9.531780 10.597477 11.18% 75,188 1998
10.000000 9.531780 -4.68% 3,437 1997
Oppenheimer Variable 10.597477 19.253639 81.68% 196,300 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
9.531780 10.597477 11.18% 118,302 1998
10.000000 9.531780 -4.68% 11,150 1997
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
97
<PAGE> 98
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 12.056049 16.898986 40.17% 256,234 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(1)
9.825746 12.056049 22.70% 110,392 1998
10.000000 9.825746 -1.74% 2,404 1997
Oppenheimer Variable 12.056049 16.898986 40.17% 294,790 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
9.825746 12.056049 22.70% 122,036 1998
10.000000 9.825746 -1.74% 7,972 1997
Oppenheimer Variable 10.627355 12.798619 20.43% 272,722 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.257840 10.627355 3.60% 151,176 1998
10.000000 10.257840 2.58% 1,064 1997
Oppenheimer Variable 10.627355 12.798619 20.43% 459,069 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.257840 10.627355 3.60% 254,947 1998
10.000000 10.257840 2.58% 15,025 1997
The Universal 7.387124 9.456874 28.02% 20,164 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.423780 7.387124 -29.13% 9,703 1998
10.000000 10.423780 4.24% 204 1997
The Universal 7.387124 9.456874 28.02% 24,015 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.423780 7.387124 -29.13% 19,124 1998
10.000000 10.423780 4.24% 1,531 1997
Van Eck Worldwide 5.744349 11.384426 98.18% 66,887 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
8.813437 5.744349 -34.82% 31,317 1998
10.000000 8.813437 -11.87% 733 1997
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
98
<PAGE> 99
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ------------------------- ------------------- ------------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 5.744349 11.384426 98.18% 80,175 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
8.813437 5.744349 -34.82% 46,981 1998
10.000000 8.813437 -11.87% 779 1997
Van Eck Worldwide 6.132522 7.342607 19.73% 33,535 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
8.978030 6.132522 -31.69% 10,468 1998
10.000000 8.978030 -10.22% 206 1997
Van Eck Worldwide 6.132522 7.342607 19.73% 19,917 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
8.978030 6.132522 -31.69% 17,880 1998
10.000000 8.978030 -10.22% 1,789 1997
Van Kampen Life 9.039759 8.643190 -4.39% 52,923 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.337004 9.039759 -12.55% 40,468 1998
10.000000 10.337004 3.37% 416 1997
Van Kampen Life 9.039759 8.643190 -4.39% 80,562 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.337004 9.039759 -12.55% 71,613 1998
10.000000 10.337004 3.37% 10,121 1997
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
99
<PAGE> 100
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
100
<PAGE> 101
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.10%)
(VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
- ---------------------------------------------------------------------------------------------------------------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
American Century
Variable Portfolios, 12.515499 14.608384 16.72% 11,848 1999
Inc. - American Century 10.000000 12.515499 25.15% 0 1998
VP Income & Growth - Q
American Century 12.515499 14.608384 16.72% 17,143 1999
Variable Portfolios, 10.000000 12.515499 25.15% 0 1998
Inc. - American Century
VP Income & Growth - NQ
American Century 12.062037 19.569739 62.24% 1,881 1999
Variable Portfolios, 10.000000 12.062037 20.62% 0 1998
Inc. - American Century
VP International - Q
American Century 12.062037 19.569739 62.24% 14,297 1999
Variable Portfolios, 10.000000 12.062037 20.62% 0 1998
Inc. - American Century
VP International - NQ
American Century 11.279817 11.060928 -1.94% 1,713 1999
Variable Portfolios, 10.000000 11.279817 12.80% 0 1998
Inc. - American Century
VP Value - Q
American Century 11.279817 11.060928 -1.94% 3,204 1999
Variable Portfolios, 10.000000 11.279817 12.80% 0 1998
Inc. - American Century
VP Value - NQ
Dreyfus Investment 10.000000 12.893630 28.94% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.893630 28.94% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 12.784895 16.447766 28.65% 6,911 1999
Responsible Growth 10.000000 12.784895 27.85% 0 1998
Fund, Inc. - Q
</TABLE>
101
<PAGE> 102
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.784895 16.447766 28.65% 15,350 1999
Responsible Growth 10.000000 12.784895 27.85% 0 1998
Fund, Inc. - NQ
Dreyfus Stock Index 12.464249 14.867150 19.28% 40,973 1999
Fund, Inc. - Q 10.000000 12.464249 24.64% 0 1998
Dreyfus Stock Index 12.464249 14.867150 19.28% 48,963 1999
Fund, Inc. - NQ
10.000000 12.464249 24.64% 0 1998
Dreyfus Variable 12.389971 13.657521 10.23% 2,736 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.000000 12.389971 23.90% 0 1998
Dreyfus Variable 12.389971 13.657521 10.23% 7,367 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.000000 12.389971 23.90% 0 1998
Federated Insurance 10.000000 9.796953 -2.03% 2,037 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.796953 -2.03% 3,679 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.809798 12.410474 5.09% 10,095 1999
Equity-Income
Portfolio: Service
Class - Q
10.000000 11.809798 18.10% 0 1998
Fidelity VIP 11.809798 12.410474 5.09% 46,500 1999
Equity-Income
Portfolio: Service
Class - NQ
10.000000 11.809798 18.10% 0 1998
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
</TABLE>
102
<PAGE> 103
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.914475 17.534950 35.78% 29,966 1999
Portfolio: Service
Class - Q
10.000000 12.914475 29.14% 0 1998
Fidelity VIP Growth 12.914475 17.534950 35.78% 33,667 1999
Portfolio: Service
Class - NQ
10.000000 12.914475 29.14% 0 1998
Fidelity VIP High 10.530579 11.255695 6.89% 11,332 1999
Income Portfolio:
Service Class - Q
10.000000 10.530579 5.31% 0 1998
Fidelity VIP High 10.530579 11.255695 6.89% 8,123 1999
Income Portfolio:
Service Class - NQ
10.000000 10.530579 5.31% 0 1998
Fidelity VIP Overseas 12.187321 17.171657 40.90% 722 1999
Portfolio: Service
Class - Q
10.000000 12.187321 21.87% 0 1998
Fidelity VIP Overseas 12.187321 17.171657 40.90% 6,837 1999
Portfolio: Service
Class - NQ
10.000000 12.187321 21.87% 0 1998
Fidelity VIP II 12.797152 15.712599 22.78% 12,569 1999
Contrafund(R) Portfolio:
Service Class - Q
10.000000 12.797152 27.97% 0 1998
Fidelity VIP II 12.797152 15.712599 22.78% 25,288 1999
Contrafund(R) Portfolio:
Service Class - NQ
10.000000 12.797152 27.97% 0 1998
Fidelity VIP III Growth 12.309512 12.683293 3.04% 5,188 1999
Opportunities
Portfolio: Service
Class - Q
10.000000 12.309512 23.10% 0 1998
Fidelity VIP III Growth 12.309512 12.683293 3.04% 13,511 1999
Opportunities
Portfolio: Service
Class - NQ
10.000000 12.309512 23.10% 0 1998
</TABLE>
103
<PAGE> 104
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.439602 12.829034 3.13% 15,721 1999
Appreciation Fund - Q
10.000000 12.439602 24.40% 0 1998
NSAT Capital 12.439602 12.829034 3.13% 23,867 1999
Appreciation Fund - NQ
10.000000 12.439602 24.40% 0 1998
NSAT Government Bond 9.853072 9.515930 -3.42% 14,527 1999
Fund - Q
10.000000 9.853072 -1.47% 0 1998
NSAT Government Bond 9.853072 9.515930 -3.42% 7,566 1999
Fund - NQ
10.000000 9.853072 -1.47% 0 1998
NSAT Money Market Fund 10.095781 10.468792 3.69% 7,371 1999
- - Q*
10.000000 10.095781 0.96% 0 1998
NSAT Money Market Fund 10.095781 10.468792 3.69% 27,548 1999
- - NQ*
10.000000 10.095781 0.96% 0 1998
NSAT Total Return Fund 11.993303 12.684916 5.77% 32,768 1999
- - Q
10.000000 11.993303 19.93% 0 1998
NSAT Total Return Fund 11.993303 12.684916 5.77% 33,223 1999
- - NQ
10.000000 11.993303 19.93% 0 1998
NSAT Nationwide 10.677473 10.651741 -0.24% 3,407 1999
Balanced Fund - Q
10.000000 10.677473 6.77% 0 1998
NSAT Nationwide 10.677473 10.651741 -0.24% 7,053 1999
Balanced Fund - NQ
10.000000 10.677473 6.77% 0 1998
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was
4.28%.
</TABLE>
104
<PAGE> 105
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.846282 13.882376 17.19% 1,139 1999
Income Fund - Q
10.000000 11.846282 18.46% 0 1998
NSAT Nationwide Equity 11.846282 13.882376 17.19% 673 1999
Income Fund - NQ
10.000000 11.846282 18.46% 0 1998
NSAT Nationwide Global 12.212250 14.846771 21.57% 62 1999
50 Fund - Q1
10.000000 12.212250 22.12% 0 1998
NSAT Nationwide Global 12.212250 14.846771 21.57% 1,907 1999
50 Fund - NQ(1)
10.000000 12.212250 22.12% 0 1998
NSAT Nationwide High 10.339812 10.552305 2.06% 278 1999
Income Bond Fund - Q
10.000000 10.339812 3.40% 0 1998
NSAT Nationwide High 10.339812 10.552305 2.06% 164 1999
Income Bond Fund - NQ
10.000000 10.339812 3.40% 0 1998
NSAT Nationwide Mid Cap 12.253848 14.654661 19.59% 78 1999
Index Fund-Q(2)
10.000000 12.253848 22.54% 0 1998
NSAT Nationwide Mid Cap 12.253848 14.654661 19.59% 0 1999
Index Fund- NQ(2)
10.000000 12.253848 22.54% 0 1998
NSAT Nationwide Multi 10.245831 10.290756 0.44% 439 1999
Sector Bond Fund - Q
10.000000 10.245831 2.46% 0 1998
NSAT Nationwide Multi 10.245831 10.290756 0.44% 1,042 1999
Sector Bond Fund - NQ
10.000000 10.245831 2.46% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
105
<PAGE> 106
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.352098 103.52% 16 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.352098 103.52% 0 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 12.964349 16.391038 26.43% 326 1999
Cap Value Fund - Q
10.000000 12.964349 29.64% 0 1998
NSAT Nationwide Small 12.964349 16.391038 26.43% 2,006 1999
Cap Value Fund - NQ
10.000000 12.964349 29.64% 0 1998
NSAT Nationwide Small 12.123056 17.267747 42.44% 2,392 1999
Company Fund - Q
10.000000 12.123056 21.23% 0 1998
NSAT Nationwide Small 12.123056 17.267747 42.44% 1,126 1999
Company Fund - NQ
10.000000 12.123056 21.23% 0 1998
NSAT Nationwide 12.668723 23.148836 82.72% 2,519 1999
Strategic Growth Fund -
Q
10.000000 12.668723 26.69% 0 1998
NSAT Nationwide 12.668723 23.148836 82.72% 3,783 1999
Strategic Growth Fund -
NQ
10.000000 12.668723 26.69% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
106
<PAGE> 107
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 12.887023 14.648600 13.67% 2,098 1999
Guardian Portfolio - NQ
10.000000 12.887023 28.87% 0 1998
Neuberger Berman AMT 14.077949 21.426404 52.20% 817 1999
Mid-Cap Growth
Portfolio - Q
10.000000 14.077949 40.78% 0 1998
Neuberger Berman AMT 14.077949 21.426404 52.20% 2,820 1999
Mid-Cap Growth
Portfolio - NQ
10.000000 14.077949 40.78% 0 1998
Neuberger Berman AMT 11.858021 12.591929 6.19% 3,378 1999
Partners Portfolio - Q
10.000000 11.858021 18.58% 0 1998
Neuberger Berman AMT 11.858021 12.591929 6.19% 3,470 1999
Partners Portfolio - NQ
10.000000 11.858021 18.58% 0 1998
Oppenheimer Variable 13.191805 23.954947 81.59% 2,681 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
10.000000 13.191805 31.92% 0 1998
Oppenheimer Variable 13.191805 23.954947 81.59% 7,186 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
10.000000 13.191805 31.92% 0 1998
Oppenheimer Variable 13.244991 18.556149 40.10% 9,317 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA - Q(2)
10.000000 13.244991 32.45% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
107
<PAGE> 108
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 13.244991 18.556149 40.10% 8,168 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
10.000000 13.244991 32.45% 0 1998
Oppenheimer Variable 12.340636 14.854438 20.37% 6,431 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.000000 12.340636 23.41% 0 1998
Oppenheimer Variable 12.340636 14.854438 20.37% 11,182 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.000000 12.340636 23.41% 0 1998
The Universal 11.395495 14.580968 27.95% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.000000 11.395495 13.95% 0 1998
The Universal 11.395495 14.580968 27.95% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.000000 11.395495 13.95% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
108
<PAGE> 109
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 12.634284 25.026598 98.08% 64 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
10.000000 12.634284 26.34% 0 1998
Van Eck Worldwide 12.634284 25.026598 98.08% 50 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
10.000000 12.634284 26.34% 0 1998
Van Eck Worldwide 9.918535 11.869689 19.67% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
10.000000 9.918535 -0.81% 0 1998
Van Eck Worldwide 9.918535 11.869689 19.67% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
10.000000 9.918535 -0.81% 0 1998
Van Kampen Life 10.411332 9.949557 -4.44% 987 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.000000 10.411332 4.11% 0 1998
Van Kampen Life 10.411332 9.949557 -4.44% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.000000 10.411332 4.11% 0 1998
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
109
<PAGE> 110
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
110
<PAGE> 111
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.15%)
(VARIABLE ACCOUNT CHARGES OF 1.15% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.513926 14.599165 16.66% 108 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.000000 12.513926 25.14% 0 1998
American Century 12.513926 14.599165 16.66% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.000000 12.513926 25.14% 0 1998
American Century 12.060517 19.557409 62.16% 238 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.000000 12.060517 20.61% 0 1998
American Century 12.060517 19.557409 62.16% 1,215 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.000000 12.060517 20.61% 0 1998
American Century 11.278389 11.053935 -1.99% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.000000 11.278389 12.78% 0 1998
American Century 11.278389 11.053935 -1.99% 334 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.000000 11.278389 12.78% 0 1998
Dreyfus Investment 10.000000 12.891928 28.92% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.891928 28.92% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 12.783289 16.437396 28.59% 1,671 1999
Responsible Growth
Fund, Inc. - Q
10.000000 12.783289 27.83% 0 1998
</TABLE>
111
<PAGE> 112
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.783289 16.437396 28.59% 4,361 1999
Responsible Growth
Fund, Inc. - NQ
10.000000 12.783289 27.83% 0 1998
Dreyfus Stock Index 12.462691 14.857773 19.22% 8,746 1999
Fund, Inc. - Q
10.000000 12.462691 24.63% 0 1998
Dreyfus Stock Index 12.462691 14.857773 19.22% 13,688 1999
Fund, Inc. - NQ
10.000000 12.462691 24.63% 0 1998
Dreyfus Variable 12.388419 13.648909 10.17% 1,585 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.000000 12.388419 23.88% 0 1998
Dreyfus Variable 12.388419 13.648909 10.17% 4,871 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.000000 12.388419 23.88% 0 1998
Federated Insurance 10.000000 9.793677 -2.06% 0 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.793677 -2.06% 3,409 1999
Series - Federated
Quality Bond Fund II - NQ
Fidelity VIP 11.808307 12.402631 5.03% 648 1999
Equity-Income
Portfolio: Service
Class - Q
10.000000 11.808307 18.08% 0 1998
Fidelity VIP 11.808307 12.402631 5.03% 5,161 1999
Equity-Income
Portfolio: Service
Class - NQ
10.000000 11.808307 18.08% 0 1998
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
112
<PAGE> 113
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.912859 17.523903 35.71% 1,751 1999
Portfolio: Service
Class - Q
10.000000 12.912859 29.13% 0 1998
Fidelity VIP Growth 12.912859 17.523903 35.71% 8,532 1999
Portfolio: Service
Class - NQ
10.000000 12.912859 29.13% 0 1998
Fidelity VIP High 10.529250 11.248584 6.83% 0 1999
Income Portfolio:
Service Class - Q
10.000000 10.529250 5.29% 0 1998
Fidelity VIP High 10.529250 11.248584 6.83% 3,763 1999
Income Portfolio:
Service Class - NQ
10.000000 10.529250 5.29% 0 1998
Fidelity VIP Overseas 12.185792 17.160838 40.83% 0 1999
Portfolio: Service
Class - Q
10.000000 12.185792 21.86% 0 1998
Fidelity VIP Overseas 12.185792 17.160838 40.83% 28 1999
Portfolio: Service
Class - NQ
10.000000 12.185792 21.86% 0 1998
Fidelity VIP II 12.795546 15.702687 22.72% 3,529 1999
Contrafund(R)Portfolio:
Service Class - Q
10.000000 12.795546 27.96% 0 1998
Fidelity VIP II 12.795546 15.702687 22.72% 5,228 1999
Contrafund(R)Portfolio:
Service Class - NQ
10.000000 12.795546 27.96% 0 1998
Fidelity VIP III Growth 12.307964 12.675276 2.98% 242 1999
Opportunities
Portfolio: Service
Class - Q
10.000000 12.307964 23.08% 0 1998
Fidelity VIP III Growth 12.307964 12.675276 2.98% 4,917 1999
Opportunities
Portfolio: Service
Class - NQ
10.000000 12.307964 23.08% 0 1998
</TABLE>
113
<PAGE> 114
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.438039 12.820934 3.08% 3,353 1999
Appreciation Fund - Q
10.000000 12.438039 24.38% 0 1998
NSAT Capital 12.438039 12.820934 3.08% 7,442 1999
Appreciation Fund - NQ
10.000000 12.438039 24.38% 0 1998
NSAT Government Bond 9.851828 9.509925 -3.47% 151 1999
Fund - Q
10.000000 9.851828 -1.48% 0 1998
NSAT Government Bond 9.851828 9.509925 -3.47% 10,380 1999
Fund - NQ
10.000000 9.851828 -1.48% 0 1998
NSAT Money Market Fund 10.094495 10.462170 3.64% 2,031 1999
- - Q*
10.000000 10.094495 0.94% 0 1998
NSAT Money Market Fund 10.094495 10.462170 3.64% 2,358 1999
- - NQ*
10.000000 10.094495 0.94% 0 1998
NSAT Total Return Fund 11.991803 12.676933 5.71% 2,576 1999
- - Q
10.000000 11.991803 19.92% 0 1998
NSAT Total Return Fund 11.991803 12.676933 5.71% 6,477 1999
- - NQ
10.000000 11.991803 19.92% 0 1998
NSAT Nationwide 10.676123 10.645005 -0.29% 0 1999
Balanced Fund - Q
10.000000 10.676123 6.76% 0 1998
NSAT Nationwide 10.676123 10.645005 -0.29% 0 1999
Balanced Fund - NQ
10.000000 10.676123 6.76% 0 1998
</TABLE>
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was
4.23%.
114
<PAGE> 115
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.844786 13.873607 17.13% 0 1999
Income Fund - Q
10.000000 11.844786 18.45% 0 1998
NSAT Nationwide Equity 11.844786 13.873607 17.13% 835 1999
Income Fund - NQ
10.000000 11.844786 18.45% 0 1998
NSAT Nationwide Global 12.210713 14.837408 21.51% 783 1999
50 Fund - Q(1)
10.000000 12.210713 22.11% 0 1998
NSAT Nationwide Global 12.210713 14.837408 21.51% 277 1999
50 Fund - NQ(1)
10.000000 12.210713 22.11% 0 1998
NSAT Nationwide High 10.338506 10.545637 2.00% 0 1999
Income Bond Fund - Q
10.000000 10.338506 3.39% 0 1998
NSAT Nationwide High 10.338506 10.545637 2.00% 0 1999
Income Bond Fund - NQ
10.000000 10.338506 3.39% 0 1998
NSAT Nationwide Mid Cap 12.252304 14.645409 19.53% 0 1999
Index Fund-Q(2)
10.000000 12.252304 22.52% 0 1998
NSAT Nationwide Mid Cap 12.252304 14.645409 19.53% 30 1999
Index Fund- NQ(2)
10.000000 12.252304 22.52% 0 1998
NSAT Nationwide Multi 10.244538 10.284262 0.39% 0 1999
Sector Bond Fund - Q
10.000000 10.244538 2.45% 0 1998
NSAT Nationwide Multi 10.244538 10.284262 0.39% 2,287 1999
Sector Bond Fund - NQ
10.000000 10.244538 2.45% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
115
<PAGE> 116
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.345317 103.45% 0 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.345317 103.45% 0 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 12.962717 16.380692 26.37% 0 1999
Cap Value Fund - Q
10.000000 12.962717 29.63% 0 1998
NSAT Nationwide Small 12.962717 16.380692 26.37% 1,583 1999
Cap Value Fund - NQ
10.000000 12.962717 29.63% 0 1998
NSAT Nationwide Small 12.121529 17.256864 42.37% 0 1999
Company Fund - Q
10.000000 12.121529 21.22% 0 1998
NSAT Nationwide Small 12.121529 17.256864 42.37% 6,650 1999
Company Fund - NQ
10.000000 12.121529 21.22% 0 1998
NSAT Nationwide 12.667131 23.134244 82.63% 4 1999
Strategic Growth Fund - Q
10.000000 12.667131 26.67% 0 1998
NSAT Nationwide 12.667131 23.134244 82.63% 0 1999
Strategic Growth Fund -
NQ
10.000000 12.667131 26.67% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
116
<PAGE> 117
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 12.885403 14.639366 13.61% 562 1999
Guardian Portfolio - Q
10.000000 12.885403 28.85% 0 1998
Neuberger Berman AMT 12.885403 14.639366 13.61% 682 1999
Guardian Portfolio - NQ
10.000000 12.885403 28.85% 0 1998
Neuberger Berman AMT 14.076184 21.412911 52.12% 196 1999
Mid-Cap Growth
Portfolio - Q
10.000000 14.076184 40.76% 0 1998
Neuberger Berman AMT 14.076184 21.412911 52.12% 0 1999
Mid-Cap Growth
Portfolio - NQ
10.000000 14.076184 40.76% 0 1998
Neuberger Berman AMT 11.856528 12.583972 6.14% 1,898 1999
Partners Portfolio - Q
10.000000 11.856528 18.57% 0 1998
Neuberger Berman AMT 11.856528 12.583972 6.14% 0 1999
Partners Portfolio - NQ
10.000000 11.856528 18.57% 0 1998
Oppenheimer Variable 13.190143 23.939845 81.50% 1,649 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
10.000000 13.190143 31.90% 0 1998
Oppenheimer Variable 13.190143 23.939845 81.50% 219 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
10.000000 13.190143 31.90% 0 1998
Oppenheimer Variable 13.243332 18.544459 40.03% 273 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA - Q(2)
10.000000 13.243332 32.43% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
117
<PAGE> 118
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 13.243332 18.544459 40.03% 4,930 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA - NQ(1)
10.000000 13.243332 32.43% 0 1998
Oppenheimer Variable 12.339083 14.845060 20.31% 2,081 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA - Q(2)
10.000000 12.339083 23.39% 0 1998
Oppenheimer Variable 12.339083 14.845060 20.31% 2,789 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA - NQ(2)
10.000000 12.339083 23.39% 0 1998
The Universal 11.394055 14.571756 27.01% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.000000 11.394055 13.94% 0 1998
The Universal 11.394055 14.571756 27.01% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.000000 11.394055 13.94% 0 1998
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
</TABLE>
118
<PAGE> 119
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 12.632701 25.010854 97.99% 165 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
10.000000 12.632701 26.33% 0 1998
Van Eck Worldwide 12.632701 25.010854 97.99% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
10.000000 12.632701 26.33% 0 1998
Van Eck Worldwide 9.917280 11.862189 19.61% 319 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
10.000000 9.917280 0.83% 0 1998
Van Eck Worldwide 9.917280 11.862189 19.61% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
10.000000 9.917280 0.83% 0 1998
Van Kampen Life 10.410018 9.943271 -4.48% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.000000 10.410018 4.10% 0 1998
Van Kampen Life 10.410018 9.943271 -4.48% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.000000 10.410018 4.10% 0 1998
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
119
<PAGE> 120
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
120
<PAGE> 121
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.20%)
(VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.431326 14.495483 16.60% 6,366 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.000000 12.431326 24.31% 0 1998
American Century 12.431326 14.495483 16.60% 3,669 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.000000 12.431326 24.31% 0 1998
American Century 10.904652 17.674116 62.08% 3,355 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.000000 10.904652 9.05% 0 1998
American Century 10.904652 17.674116 62.08% 3,586 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.000000 10.904652 9.05% 0 1998
American Century 11.497731 11.263216 -2.04% 2,403 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.000000 11.497731 14.98% 0 1998
American Century 11.497731 11.263216 -2.04% 1,203 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.000000 11.497731 14.98% 0 1998
Dreyfus Investment 10.000000 12.890242 28.90% 4 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.890242 28.90% 4 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 12.758878 16.397708 28.52% 13,289 1999
Responsible Growth
Fund, Inc. - Q
10.000000 12.758878 27.59% 0 1998
</TABLE>
121
<PAGE> 122
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.758878 16.397708 28.52% 4,992 1999
Responsible Growth
Fund, Inc. - NQ
10.000000 12.758878 27.59% 0 1998
Dreyfus Stock Index 12.367188 14.736468 19.16% 59,071 1999
Fund, Inc. - Q
10.000000 12.367188 23.67% 0 1998
Dreyfus Stock Index 12.367188 14.736468 19.16% 27,321 1999
Fund, Inc. - NQ
10.000000 12.367188 23.67% 0 1998
Dreyfus Variable 12.207586 13.442893 10.12% 8,970 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.000000 12.207586 22.08% 0 1998
Dreyfus Variable 12.207586 13.442893 10.12% 2,553 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.000000 12.207586 22.08% 0 1998
Federated Insurance 10.000000 9.790385 -2.10% 968 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.790385 -2.10% 310 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.850451 12.440601 4.98% 11,873 1999
Equity-Income
Portfolio: Service
Class - Q
10.000000 11.850451 18.50% 0 1998
Fidelity VIP 11.850451 12.440601 4.98% 8,503 1999
Equity-Income
Portfolio: Service
Class - NQ
10.000000 11.850451 18.50% 0 1998
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
122
<PAGE> 123
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 13.015101 17.653733 35.64% 32,098 1999
Portfolio: Service
Class - Q
10.000000 13.015101 30.15% 0 1998
Fidelity VIP Growth 13.015101 17.653733 35.64% 19,070 1999
Portfolio: Service
Class - NQ
10.000000 13.015101 30.15% 0 1998
Fidelity VIP High 10.384114 11.087928 6.78% 5,437 1999
Income Portfolio:
Service Class - Q
10.000000 10.384114 3.84% 0 1998
Fidelity VIP High 10.384114 11.087928 6.78% 2,342 1999
Income Portfolio:
Service Class - NQ
10.000000 10.384114 3.84% 0 1998
Fidelity VIP Overseas 11.296846 15.900927 40.76% 3,366 1999
Portfolio: Service
Class - Q
10.000000 11.296846 12.97% 0 1998
Fidelity VIP Overseas 11.296846 15.900927 40.76% 2,472 1999
Portfolio: Service
Class - NQ
10.000000 11.296846 12.97% 0 1998
Fidelity VIP II 12.602507 15.457984 22.66% 17,988 1999
Contrafund(R)Portfolio:
Service Class - Q
10.000000 12.602507 26.03% 0 1998
Fidelity VIP II 12.602507 15.457984 22.66% 14,065 1999
Contrafund(R)Portfolio:
Service Class - NQ
10.000000 12.602507 26.03% 0 1998
Fidelity VIP III Growth 12.421717 12.785984 2.93% 6,954 1999
Opportunities
Portfolio: Service
Class - Q
10.000000 12.421717 24.22% 0 1998
Fidelity VIP III Growth 12.421717 12.785984 2.93% 5,560 1999
Opportunities
Portfolio: Service
Class - NQ
10.000000 12.421717 24.22% 0 1998
</TABLE>
123
<PAGE> 124
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.392954 12.767993 3.03% 26,101 1999
Appreciation Fund - Q
10.000000 12.392954 23.93% 0 1998
NSAT Capital 12.392954 12.767993 3.03% 6,688 1999
Appreciation Fund - NQ
10.000000 12.392954 23.93% 0 1998
NSAT Government Bond 10.174058 9.816007 -3.52% 3,655 1999
Fund - Q
10.000000 10.174058 1.74% 0 1998
NSAT Government Bond 10.174058 9.816007 -3.52% 6,828 1999
Fund - NQ
10.000000 10.174058 1.74% 0 1998
NSAT Money Market Fund 10.126097 10.489614 3.59% 25,530 1999
- - Q*
10.000000 10.126097 1.26% 0 1998
NSAT Money Market Fund 10.126097 10.489614 3.59% 4,617 1999
- - NQ*
10.000000 10.126097 1.26% 0 1998
NSAT Total Return Fund 11.968910 12.646339 5.66% 37,667 1999
- - Q
10.000000 11.968910 19.69% 0 1998
NSAT Total Return Fund 11.968910 12.646339 5.66% 11,345 1999
- - NQ
10.000000 11.968910 19.69% 0 1998
NSAT Nationwide 10.772545 10.735723 -0.34% 5,562 1999
Balanced Fund - Q
10.000000 10.772545 7.73% 0 1998
NSAT Nationwide 10.772545 10.735723 -0.34% 3,978 1999
Balanced Fund - NQ
10.000000 10.772545 7.73% 0 1998
</TABLE>
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was
4.18%.
124
<PAGE> 125
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.927845 13.963829 17.07% 1,275 1999
Income Fund - Q
10.000000 11.927845 19.28% 0 1998
NSAT Nationwide Equity 11.927845 13.963829 17.07% 279 1999
Income Fund - NQ
10.000000 11.927845 19.28% 0 1998
NSAT Nationwide Global 11.747364 14.267173 21.45% 1,239 1999
50 Fund - Q(1)
10.000000 11.747364 17.47% 0 1998
NSAT Nationwide Global 11.747364 14.267173 21.45% 716 1999
50 Fund - NQ(1)
10.000000 11.747364 17.47% 0 1998
NSAT Nationwide High 10.558563 10.764664 1.95% 1,611 1999
Income Bond Fund - Q
10.000000 10.558563 5.59% 0 1998
NSAT Nationwide High 10.558563 10.764664 1.95% 399 1999
Income Bond Fund - NQ
10.000000 10.558563 5.59% 0 1998
NSAT Nationwide Mid Cap 12.257790 14.644558 19.47% 591 1999
Index Fund-Q(2)
10.000000 12.257790 22.58% 0 1998
NSAT Nationwide Mid Cap 12.257790 14.644558 19.47% 2,148 1999
Index Fund- NQ(2)
10.000000 12.257790 22.58% 0 1998
NSAT Nationwide Multi 10.475252 10.510552 0.34% 8 1999
Sector Bond Fund - Q
10.000000 10.475252 4.75% 0 1998
NSAT Nationwide Multi 10.475252 10.510552 0.34% 1,528 1999
Sector Bond Fund - NQ
10.000000 10.475252 4.75% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
125
<PAGE> 126
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.338511 103.39% 259 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.338511 103.39% 550 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 12.586199 15.896867 26.30% 2,593 1999
Cap Value Fund - Q
10.000000 12.586199 25.86% 0 1998
NSAT Nationwide Small 12.586199 15.896867 26.30% 3,985 1999
Cap Value Fund - NQ
10.000000 12.586199 25.86% 0 1998
NSAT Nationwide Small 12.016781 17.099098 42.29% 1,372 1999
Company Fund - Q
10.000000 12.016781 20.17% 0 1998
NSAT Nationwide Small 12.016781 17.099098 42.29% 718 1999
Company Fund - NQ
10.000000 12.016781 20.17% 0 1998
NSAT Nationwide 12.463581 22.750997 82.54% 1,256 1999
Strategic Growth Fund - Q
10.000000 12.463581 24.64% 0 1998
NSAT Nationwide 12.463581 22.750997 82.54% 1,581 1999
Strategic Growth Fund -
NQ
10.000000 12.463581 24.64% 0 1998
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
</TABLE>
126
<PAGE> 127
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 12.307946 13.976229 13.55% 629 1999
Guardian Portfolio - Q
10.000000 12.307946 23.08% 0 1998
Neuberger Berman AMT 12.307946 13.976229 13.55% 464 1999
Guardian Portfolio - NQ
10.000000 12.307946 23.08% 0 1998
Neuberger Berman AMT 13.702754 20.834304 52.04% 3,981 1999
Mid-Cap Growth
Portfolio - Q
10.000000 13.702754 37.03% 0 1998
Neuberger Berman AMT 13.702754 20.834304 52.04% 2,641 1999
Mid-Cap Growth
Portfolio - NQ
10.000000 13.702754 37.03% 0 1998
Neuberger Berman AMT 11.821068 12.539993 6.08% 1,177 1999
Partners Portfolio - Q
10.000000 11.821068 18.21% 0 1998
Neuberger Berman AMT 11.821068 12.539993 6.08% 1,352 1999
Partners Portfolio - NQ
10.000000 11.821068 18.21% 0 1998
Oppenheimer Variable 12.961315 23.512658 81.41% 7,841 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
10.000000 12.961315 29.61% 0 1998
Oppenheimer Variable 12.961315 23.512658 81.41% 2,379 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
10.000000 12.961315 29.61% 0 1998
Oppenheimer Variable 12.752843 17.848621 39.96% 11,012 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA - Q(2)
10.000000 12.752843 27.53% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
127
<PAGE> 128
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 112.752843 17.848621 39.96% 5,961 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
10.000000 12.752843 27.53% 0 1998
Oppenheimer Variable 12.149185 14.609212 20.25% 10,894 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.000000 12.149185 21.49% 0 1998
Oppenheimer Variable 12.149185 14.609212 20.25% 7,664 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.000000 12.149185 21.49% 0 1998
The Universal 11.400149 14.572201 27.82% 285 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.000000 11.400149 14.00% 0 1998
The Universal 11.400149 14.572201 27.82% 103 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.000000 11.400149 14.00% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
128
<PAGE> 129
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 12.101814 23.947713 97.89% 818 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
10.000000 12.101814 21.02% 0 1998
Van Eck Worldwide 12.101814 23.947713 97.89% 1,036 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
10.000000 12.101814 21.02% 0 1998
Van Eck Worldwide 10.581149 12.649846 19.55% 64 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
10.000000 10.581149 5.81% 0 1998
Van Eck Worldwide 10.581149 12.649846 19.55% 459 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
10.000000 10.581149 5.81% 0 1998
Van Kampen Life 10.740684 10.253920 -4.53% 108 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.000000 10.740684 7.41% 0 1998
Van Kampen Life 10.740684 10.253920 -4.53% 1,076 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.000000 10.740684 7.41% 0 1998
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
129
<PAGE> 130
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
130
<PAGE> 131
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.25%)
(VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.429254 14.485724 16.55% 3,784 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.000000 12.429254 24.29% 0 1998
American Century 12.429254 14.485724 16.55% 5,709 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.000000 12.429254 24.29% 0 1998
American Century 10.902825 17.662250 62.00% 4,237 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.000000 10.902825 9.03% 0 1998
American Century 10.902825 17.662250 62.00% 1,114 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.000000 10.902825 9.03% 0 1998
American Century 11.495807 11.255628 -2.09% 393 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.000000 11.495807 14.96% 0 1998
American Century 11.495807 11.255628 -2.09% 1,166 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.000000 11.495807 14.96% 0 1998
Dreyfus Investment 10.000000 12.888550 28.89% 85 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.888550 28.89% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 12.756741 16.386683 28.46% 7,517 1999
Responsible Growth
Fund, Inc. - Q
10.000000 12.756741 27.57% 0 1998
</TABLE>
131
<PAGE> 132
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.756741 16.386683 28.46% 2,666 1999
Responsible Growth
Fund, Inc. - NQ
10.000000 12.756741 27.57% 0 1998
Dreyfus Stock Index 12.365124 14.726559 19.10% 39,966 1999
Fund, Inc. - Q
10.000000 12.365124 23.65% 0 1998
Dreyfus Stock Index 12.365124 14.726559 19.10% 23,767 1999
Fund, Inc. - NQ
10.000000 12.365124 23.65% 0 1998
Dreyfus Variable 12.205549 13.433832 10.06% 4,732 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.000000 12.205549 22.06% 0 1998
Dreyfus Variable 12.205549 13.433832 10.06% 863 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.000000 12.205549 22.06% 0 1998
Federated Insurance 10.000000 9.787093 -2.13% 354 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.787093 -2.13% 94 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.848469 12.432231 4.93% 11,049 1999
Equity-Income
Portfolio: Service
Class - Q
10.000000 11.848469 18.48% 0 1998
Fidelity VIP 11.848469 12.432231 4.93% 6,075 1999
Equity-Income
Portfolio: Service
Class - NQ
10.000000 11.848469 18.48% 0 1998
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
</TABLE>
132
<PAGE> 133
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 13.012933 17.641868 35.57% 23,336 1999
Portfolio: Service
Class - Q
10.000000 13.012933 30.13% 0 1998
Fidelity VIP Growth 13.012933 17.641868 35.57% 14,779 1999
Portfolio: Service
Class - NQ
10.000000 13.012933 30.13% 0 1998
Fidelity VIP High 10.382374 11.080460 6.72% 2,229 1999
Income Portfolio:
Service Class - Q
10.000000 10.382374 3.82% 0 1998
Fidelity VIP High 10.382374 11.080460 6.72% 925 1999
Income Portfolio:
Service Class - NQ
10.000000 10.382374 3.82% 0 1998
Fidelity VIP Overseas 11.294949 15.890221 40.68% 1,115 1999
Portfolio: Service
Class - Q
10.000000 11.294949 12.95% 0 1998
Fidelity VIP Overseas 11.294949 15.890221 40.68% 466 1999
Portfolio: Service
Class - NQ
10.000000 11.294949 12.95% 0 1998
Fidelity VIP II 12.600399 15.447579 22.60% 15,619 1999
Contrafund(R)Portfolio:
Service Class - Q
10.000000 12.600399 26.00% 0 1998
Fidelity VIP II 12.600399 15.447579 22.60% 5,804 1999
Contrafund(R)Portfolio:
Service Class - NQ
10.000000 12.600399 26.00% 0 1998
Fidelity VIP III Growth 12.419643 12.777351 2.88% 2,873 1999
Opportunities
Portfolio: Service
Class - Q
10.000000 12.419643 24.20% 0 1998
Fidelity VIP III Growth 12.419643 12.777351 2.88% 2,752 1999
Opportunities
Portfolio: Service
Class - NQ
10.000000 12.419643 24.20% 0 1998
</TABLE>
133
<PAGE> 134
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.390885 12.759401 2.97% 21,882 1999
Appreciation Fund - Q
10.000000 12.390885 23.91% 0 1998
NSAT Capital 12.390885 12.759401 2.97% 10,410 1999
Appreciation Fund - NQ
10.000000 12.390885 23.91% 0 1998
NSAT Government Bond 10.172348 9.809384 -3.57% 4,591 1999
Fund - Q
10.000000 10.172348 1.72% 0 1998
NSAT Government Bond 10.172348 9.809384 -3.57% 2,718 1999
Fund - NQ
10.000000 10.172348 1.72% 0 1998
NSAT Money Market Fund 10.124383 10.482530 3.54% 32,190 1999
- - Q*
10.000000 10.124383 1.24% 0 1998
NSAT Money Market Fund 10.124383 10.482530 3.54% 4,755 1999
- - NQ*
10.000000 10.124383 1.24% 0 1998
NSAT Total Return Fund 11.966903 12.637807 5.61% 21,515 1999
- - Q
10.000000 11.966903 19.67% 0 1998
NSAT Total Return Fund 11.966903 12.637807 5.61% 8,711 1999
- - NQ
10.000000 11.966903 19.67% 0 1998
NSAT Nationwide 10.770735 10.728485 -0.39% 659 1999
Balanced Fund - Q
10.000000 10.770735 7.71% 0 1998
NSAT Nationwide 10.770735 10.728485 -0.39% 1,494 1999
Balanced Fund - NQ
10.000000 10.770735 7.71% 0 1998
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was
4.13%.
134
<PAGE> 135
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.925844 13.954430 17.01% 118 1999
Income Fund - Q
10.000000 11.925844 19.26% 0 1998
NSAT Nationwide Equity 11.925844 13.954430 17.01% 593 1999
Income Fund - NQ
10.000000 11.925844 19.26% 0 1998
NSAT Nationwide Global 11.745400 14.257588 21.39% 534 1999
50 Fund - Q(1)
10.000000 11.745400 17.45% 0 1998
NSAT Nationwide Global 11.745400 14.257588 21.39% 234 1999
50 Fund - NQ(1)
10.000000 11.745400 17.45% 0 1998
NSAT Nationwide High 10.556787 10.757403 1.90% 0 1999
Income Bond Fund - Q
10.000000 10.556787 5.57% 0 1998
NSAT Nationwide High 10.556787 10.757403 1.90% 889 1999
Income Bond Fund - NQ
10.000000 10.556787 5.57% 0 1998
NSAT Nationwide Mid Cap 12.255745 14.634711 19.41% 80 1999
Index Fund-Q(2)
10.000000 12.255745 22.56% 0 1998
NSAT Nationwide Mid Cap 12.255745 14.634711 19.41% 641 1999
Index Fund- NQ(2)
10.000000 12.255745 22.56% 0 1998
NSAT Nationwide Multi 10.473496 10.503468 0.29% 182 1999
Sector Bond Fund - Q
10.000000 10.473496 4.73% 0 1998
NSAT Nationwide Multi 10.473496 10.503468 0.29% 768 1999
Sector Bond Fund - NQ
10.000000 10.473496 4.73% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
135
<PAGE> 136
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.331712 103.32% 681 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.331712 103.32% 48 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 12.584102 15.886176 26.24% 610 1999
Cap Value Fund - Q
10.000000 12.584102 25.84% 0 1998
NSAT Nationwide Small 12.584102 15.886176 26.24% 136 1999
Cap Value Fund - NQ
10.000000 12.584102 25.84% 0 1998
NSAT Nationwide Small 12.014774 17.087592 42.22% 3,094 1999
Company Fund - Q
10.000000 12.014774 20.15% 0 1998
NSAT Nationwide Small 12.014774 17.087592 42.22% 594 1999
Company Fund - NQ
10.000000 12.014774 20.15% 0 1998
NSAT Nationwide 12.461498 22.735718 82.45% 2,266 1999
Strategic Growth Fund -
Q
10.000000 12.461498 24.61% 0 1998
NSAT Nationwide 12.461498 22.735718 82.45% 801 1999
Strategic Growth Fund -
NQ
10.000000 12.461498 24.61% 0 1998
NSAT Nationwide 12.475236 11.941061 -4.28% 0 1999
Strategic Value Fund - Q
10.000000 12.475236 24.75% 0 1998
1997
NSAT Nationwide 12.475236 11.941061 -4.28% 342 1999
Strategic Value Fund -
NQ
10.000000 12.475236 24.75% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
136
<PAGE> 137
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 12.305897 13.966839 13.50% 1,594 1999
Guardian Portfolio - Q
10.000000 12.305897 23.06% 0 1998
Neuberger Berman AMT 12.305897 13.966839 13.50% 435 1999
Guardian Portfolio - NQ
10.000000 12.305897 23.06% 0 1998
Neuberger Berman AMT 13.700471 20.820318 51.97% 1,848 1999
Mid-Cap Growth
Portfolio - Q
10.000000 13.700471 37.00% 0 1998
Neuberger Berman AMT 13.700471 20.820318 51.97% 552 1999
Mid-Cap Growth
Portfolio - NQ
10.000000 13.700471 37.00% 0 1998
Neuberger Berman AMT 11.819096 12.531553 6.03% 2,103 1999
Partners Portfolio - Q
10.000000 11.819096 18.19% 0 1998
Neuberger Berman AMT 11.819096 12.531553 6.03% 784 1999
Partners Portfolio - NQ
10.000000 11.819096 18.19% 0 1998
Oppenheimer Variable 12.959156 23.496887 81.31% 3,914 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
10.000000 12.959156 29.59% 0 1998
Oppenheimer Variable 12.959156 23.496887 81.31% 1,153 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
10.000000 12.959156 29.59% 0 1998
Oppenheimer Variable 12.750719 17.836627 39.89% 5,010 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(2)
10.000000 12.750719 27.51% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
137
<PAGE> 138
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 12.750719 17.836627 39.89% 1,959 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
10.000000 12.750719 27.51% 0 1998
Oppenheimer Variable 12.147153 14.599387 20.19% 4,444 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.000000 12.147153 21.47% 0 1998
Oppenheimer Variable 12.147153 14.599387 20.19% 2,709 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.000000 12.147153 21.47% 0 1998
The Universal 11.398245 14.562396 27.76% 55 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.000000 11.398245 13.98% 0 1998
The Universal 11.398245 14.562396 27.76% 3 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.000000 11.398245 13.98% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
138
<PAGE> 139
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 12.099788 23.931619 97.79% 1,245 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
10.000000 12.099788 21.00% 0 1998
Van Eck Worldwide 12.099788 23.931619 97.79% 345 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
10.000000 12.099788 21.00% 0 1998
Van Eck Worldwide 10.579367 12.641312 19.49% 57 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
10.000000 10.579367 5.79% 0 1998
Van Eck Worldwide 10.579367 12.641312 19.49% 35 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
10.000000 10.579367 5.79% 0 1998
Van Kampen Life 10.738882 10.247016 -4.58% 129 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.000000 10.738882 7.39% 0 1998
Van Kampen Life 10.738882 10.247016 -4.58% 42 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.000000 10.738882 7.39% 0 1998
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
139
<PAGE> 140
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
140
<PAGE> 141
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.30%)
(VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.427175 14.475981 16.49% 14 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.000000 12.427175 24.27% 0 1998
American Century 12.427175 14.475981 16.49% 154 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.000000 12.427175 24.27% 0 1998
American Century 10.901004 17.650383 61.92% 1,265 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.000000 10.901004 9.01% 0 1998
American Century 10.901004 17.650383 61.92% 569 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.000000 10.901004 9.01% 0 1998
American Century 11.493876 11.248045 -2.14% 2 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.000000 11.493876 14.94% 0 1998
American Century 11.493876 11.248045 -2.14% 74 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.000000 11.493876 14.94% 0 1998
Dreyfus Investment 10.000000 12.886864 28.87% 67 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.886864 28.87% 159 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 12.754610 16.375662 28.39% 835 1999
Responsible Growth
Fund, Inc. - Q
10.000000 12.754610 27.55% 0 1998
</TABLE>
141
<PAGE> 142
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.754610 16.375662 28.39% 274 1999
Responsible Growth
Fund, Inc. - NQ
10.000000 12.754610 27.55% 0 1998
Dreyfus Stock Index 12.363055 14.716647 19.04% 6,801 1999
Fund, Inc. - Q
10.000000 12.363055 23.63% 0 1998
Dreyfus Stock Index 12.363055 14.716647 19.04% 1,924 1999
Fund, Inc. - NQ
10.000000 12.363055 23.63% 0 1998
Dreyfus Variable 12.203505 13.424790 10.01% 1,610 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.000000 12.203505 22.04% 0 1998
Dreyfus Variable 12.203505 13.424790 10.01% 0 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.000000 12.203505 22.04% 0 1998
Federated Insurance 10.000000 9.783812 -2.16% 141 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.783812 -2.16% 12 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.846486 12.423854 4.87% 181 1999
Equity-Income
Portfolio: Service
Class - Q
10.000000 11.846486 18.46% 0 1998
Fidelity VIP 11.846486 12.423854 4.87% 1,226 1999
Equity-Income
Portfolio: Service
Class - NQ
10.000000 11.846486 18.46% 0 1998
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
142
<PAGE> 143
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 13.010755 17.630000 35.50% 6,094 1999
Portfolio: Service
Class - Q
10.000000 13.010755 30.11% 0 1998
Fidelity VIP Growth 13.010755 17.630000 35.50% 846 1999
Portfolio: Service
Class - NQ
10.000000 13.010755 30.11% 0 1998
Fidelity VIP High 10.380632 11.072984 6.67% 0 1999
Income Portfolio:
Service Class - Q
10.000000 10.380632 3.81% 0 1998
Fidelity VIP High 10.380632 11.072984 6.67% 654 1999
Income Portfolio:
Service Class - NQ
10.000000 10.380632 3.81% 0 1998
Fidelity VIP Overseas 11.293057 15.879549 40.61% 191 1999
Portfolio: Service
Class - Q
10.000000 11.293057 12.93% 0 1998
Fidelity VIP Overseas 11.293057 15.879549 40.61% 84 1999
Portfolio: Service
Class - NQ
10.000000 11.293057 12.93% 0 1998
Fidelity VIP II 12.598299 15.437189 22.53% 2,450 1999
Contrafund(R)Portfolio:
Service Class - Q
10.000000 12.598299 25.98% 0 1998
Fidelity VIP II 12.598299 15.437189 22.53% 489 1999
Contrafund(R)Portfolio:
Service Class - NQ
10.000000 12.598299 25.98% 0 1998
Fidelity VIP III Growth 12.417568 12.768758 2.83% 547 1999
Opportunities
Portfolio: Service
Class - Q
10.000000 12.417568 24.18% 0 1998
Fidelity VIP III Growth 12.417568 12.768758 2.83% 143 1999
Opportunities
Portfolio: Service
Class - NQ
10.000000 12.417568 24.18% 0 1998
</TABLE>
143
<PAGE> 144
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.388810 12.750810 2.92% 2,082 1999
Appreciation Fund - Q
10.000000 12.388810 23.89% 0 1998
NSAT Capital 12.388810 12.750810 2.92% 542 1999
Appreciation Fund - NQ
10.000000 12.388810 23.89% 0 1998
NSAT Government Bond 10.170644 9.802780 -3.62% 3,686 1999
Fund - Q
10.000000 10.170644 1.71% 0 1998
NSAT Government Bond 10.170644 9.802780 -3.62% 419 1999
Fund - NQ
10.000000 10.170644 1.71% 0 1998
NSAT Money Market Fund 10.122671 10.475448 3.49% 11 1999
- - Q*
10.000000 10.122671 1.23% 0 1998
NSAT Money Market Fund 10.122671 10.475448 3.49% 24 1999
- - NQ*
10.000000 10.122671 1.23% 0 1998
NSAT Total Return Fund 11.964909 12.629301 5.55% 2,856 1999
- - Q
10.000000 11.964909 19.65% 0 1998
NSAT Total Return Fund 11.964909 12.629301 5.55% 1,227 1999
- - NQ
10.000000 11.964909 19.65% 0 1998
NSAT Nationwide 10.768931 10.721257 -0.44% 16 1999
Balanced Fund - Q
10.000000 10.768931 7.69% 0 1998
NSAT Nationwide 10.768931 10.721257 -0.44% 0 1999
Balanced Fund - NQ
10.000000 10.768931 7.69% 0 1998
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999
was 4.07%.
144
<PAGE> 145
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.923848 13.945030 16.95% 0 1999
Income Fund - Q
10.000000 11.923848 19.24% 0 1998
NSAT Nationwide Equity 11.923848 13.945030 16.95% 0 1999
Income Fund - NQ
10.000000 11.923848 19.24% 0 1998
NSAT Nationwide Global 10.743428 14.247974 21.33% 0 1999
50 Fund - Q(1)
10.000000 10.743428 17.43% 0 1998
NSAT Nationwide Global 11.743428 14.247974 21.33% 36 1999
50 Fund - NQ(1)
10.000000 11.743428 17.43% 0 1998
NSAT Nationwide High 11.7433428 14.247974 1.85% 179 1999
Income Bond Fund - Q
10.000000 11.743428 5.55% 0 1998
NSAT Nationwide High 10.555014 10.750149 1.85% 0 1999
Income Bond Fund - NQ
10.000000 10.555014 5.55% 0 1998
NSAT Nationwide Mid Cap 12.253691 14.624858 19.35% 154 1999
Index Fund-Q(2)
10.000000 12.253691 22.54% 0 1998
NSAT Nationwide Mid Cap 12.253691 14.624858 19.35% 18 1999
Index Fund- NQ(2)
10.000000 12.253691 22.54% 0 1998
NSAT Nationwide Multi 10.471735 10.496386 0.24% 8 1999
Sector Bond Fund - Q
10.000000 10.471735 4.72% 0 1998
NSAT Nationwide Multi 10.471735 10.496386 0.24% 0 1999
Sector Bond Fund - NQ
10.000000 10.471735 4.72% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
145
<PAGE> 146
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.324927 103.25% 105 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.324927 103.25% 0 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 12.581999 15.875478 26.18% 26 1999
Cap Value Fund - Q
10.000000 12.581999 25.82% 0 1998
NSAT Nationwide Small 12.581999 15.875478 26.18% 33 1999
Cap Value Fund - NQ
10.000000 12.581999 25.82% 0 1998
NSAT Nationwide Small 12.012761 17.076087 42.15% 773 1999
Company Fund - Q
10.000000 12.012761 20.13% 0 1998
NSAT Nationwide Small 12.012761 17.076087 42.15% 0 1999
Company Fund - NQ
10.000000 12.012761 20.13% 0 1998
NSAT Nationwide 12.459415 22.720430 82.36% 1,225 1999
Strategic Growth Fund -
Q
10.000000 12.459415 24.59% 0 1998
NSAT Nationwide 12.459415 22.720430 82.36% 104 1999
Strategic Growth Fund -
NQ
10.000000 12.459415 24.59% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
146
<PAGE> 147
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 12.303831 13.957433 13.44% 94 1999
Guardian Portfolio - Q
10.000000 12.303831 23.04% 0 1998
Neuberger Berman AMT 12.303831 13.957433 13.44% 0 1999
Guardian Portfolio - NQ
10.000000 12.303831 23.04% 0 1998
Neuberger Berman AMT 13.698179 20.806301 51.89% 144 1999
Mid-Cap Growth
Portfolio - Q
10.000000 13.698179 36.98% 0 1998
Neuberger Berman AMT 13.698179 20.806301 51.89% 62 1999
Mid-Cap Growth
Portfolio - NQ
10.000000 13.698179 36.98% 0 1998
Neuberger Berman AMT 11.817120 12.523110 5.97% 528 1999
Partners Portfolio - Q
10.000000 11.817120 18.17% 0 1998
Neuberger Berman AMT 11.817120 12.523110 5.97% 0 1999
Partners Portfolio - NQ
10.000000 11.817120 18.17% 0 1998
Oppenheimer Variable 12.956986 23.481073 81.22% 1,664 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
10.000000 12.956986 29.57% 0 1998
Oppenheimer Variable 12.956986 23.481073 81.22% 147 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
10.000000 12.956986 29.57% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
147
<PAGE> 148
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 12.748581 17.824624 39.82% 1,770 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(1)
10.000000 12.748581 27.49% 0 1998
Oppenheimer Variable 12.748581 17.824624 39.82% 87 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
10.000000 12.748581 27.49% 0 1998
Oppenheimer Variable 12.145122 14.589572 20.13% 2,097 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.000000 12.145122 21.45% 0 1998
Oppenheimer Variable 12.145122 14.589572 20.13% 488 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.000000 12.145122 21.45% 0 1998
The Universal 11.396332 14.552579 27.70% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.000000 11.393332 13.96% 0 1998
The Universal 11.396332 14.552579 27.70% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.000000 11.393332 13.96% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
148
<PAGE> 149
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 12.097773 23.915562 97.69% 445 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
10.000000 12.097773 20.98% 0 1998
Van Eck Worldwide 12.097773 23.915562 97.69% 227 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
10.000000 12.097773 20.98% 0 1998
Van Eck Worldwide 10.577601 12.632809 19.43% 542 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
10.000000 10.577601 5.78% 0 1998
Van Eck Worldwide 10.577601 12.632809 19.43% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
10.000000 10.577601 5.78% 0 1998
Van Kampen Life 10.737077 10.240102 -4.63% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.000000 10.737077 7.37% 0 1998
Van Kampen Life 10.737077 10.240102 -4.63% 128 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.000000 10.737077 7.37% 0 1998
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
149
<PAGE> 150
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
150
<PAGE> 151
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.35%)
(VARIABLE ACCOUNT CHARGES OF 1.35% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.507622 14.562313 16.43% 466 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.000000 12.507622 25.08% 0 1998
American Century 12.507622 14.562313 16.43% 888 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.000000 12.507622 25.08% 0 1998
American Century 12.054452 19.508116 61.81% 15 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.000000 12.054452 20.54% 0 1998
American Century 12.054452 19.508116 61.81% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.000000 12.054452 20.54% 0 1998
American Century 11.272705 11.026014 -2.19% 19 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.000000 11.272705 12.73% 0 1998
American Century 11.272705 11.026014 -2.19% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.000000 11.272705 12.73% 0 1998
Dreyfus Investment 10.000000 12.885161 28.85% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.885161 28.85% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 12.776857 16.395915 28.33% 165 1999
Responsible Growth
Fund, Inc. - Q
10.000000 12.776857 27.77% 0 1998
</TABLE>
151
<PAGE> 152
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.776857 16.395915 28.33% 89 1999
Responsible Growth
Fund, Inc. - NQ
10.000000 12.776857 27.77% 0 1998
Dreyfus Stock Index 12.456413 14.820270 18.98% 611 1999
Fund, Inc. - Q
10.000000 12.456413 24.56% 0 1998
Dreyfus Stock Index 12.456413 14.820270 18.98% 1,611 1999
Fund, Inc. - NQ
10.000000 12.456413 24.56% 0 1998
Dreyfus Variable 12.382184 13.614453 9.95% 0 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.000000 12.382184 23.82% 0 1998
Dreyfus Variable 12.382184 13.614453 9.95% 0 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.000000 12.382184 23.82% 0 1998
Federated Insurance 10.000000 9.780523 -2.19% 26 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.780523 -2.19% 0 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.802357 12.371310 4.82% 287 1999
Equity-Income
Portfolio: Service
Class - Q
10.000000 11.802357 18.02% 0 1998
Fidelity VIP 11.802357 12.371310 4.82% 52 1999
Equity-Income
Portfolio: Service
Class - NQ
10.000000 11.802357 18.02% 0 1998
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
152
<PAGE> 153
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.906358 17.479679 35.43% 781 1999
Portfolio: Service
Class - Q
10.000000 12.906358 29.06% 0 1998
Fidelity VIP Growth 12.906358 17.479679 35.43% 1,054 1999
Portfolio: Service
Class - NQ
10.000000 12.906358 29.06% 0 1998
Fidelity VIP High 10.523939 11.220168 6.62% 43 1999
Income Portfolio:
Service Class - Q
10.000000 10.523939 5.24% 0 1998
Fidelity VIP High 10.523939 11.220168 6.62% 0 1999
Income Portfolio:
Service Class - NQ
10.000000 10.523939 5.24% 0 1998
Fidelity VIP Overseas 12.179658 17.117558 40.54% 8 1999
Portfolio: Service
Class - Q
10.000000 12.179658 21.80% 0 1998
Fidelity VIP Overseas 12.179658 17.117558 40.54% 180 1999
Portfolio: Service
Class - NQ
10.000000 12.179658 21.80% 0 1998
Fidelity VIP II 12.789109 15.663065 22.47% 9 1999
Contrafund(R)Portfolio:
Service Class - Q
10.000000 12.789109 27.89% 0 1998
Fidelity VIP II 12.789109 15.663065 22.47% 66 1999
Contrafund(R)Portfolio:
Service Class - NQ
10.000000 12.789109 27.89% 0 1998
Fidelity VIP III Growth 12.301762 12.643267 2.78% 0 1999
Opportunities
Portfolio: Service
Class - Q
10.000000 12.301762 23.02% 0 1998
Fidelity VIP III Growth 12.301762 12.643267 2.78% 104 1999
Opportunities
Portfolio: Service
Class - NQ
10.000000 12.301762 23.02% 0 1998
</TABLE>
153
<PAGE> 154
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.431774 12.788549 2.87% 553 1999
Appreciation Fund - Q
10.000000 12.431774 24.32% 0 1998
NSAT Capital 12.431774 12.788549 2.87% 898 1999
Appreciation Fund - NQ
10.000000 12.431774 24.32% 0 1998
NSAT Government Bond 9.846859 9.485894 -3.67% 23 1999
Fund - Q
10.000000 9.846859 -1.535 0 1998
NSAT Government Bond 9.846859 9.485894 -3.67% 211 1999
Fund - NQ
10.000000 9.846859 -1.535 0 1998
NSAT Money Market Fund 10.089342 10.435669 3.43% 0 1999
- - Q*
10.000000 10.089342 0.89% 0 1998
NSAT Money Market Fund 10.089342 10.435669 3.43% 193 1999
- - NQ*
10.000000 10.089342 0.89% 0 1998
NSAT Total Return Fund 11.985762 12.644908 5.50% 47 1999
- - Q
10.000000 11.985762 19.86% 0 1998
NSAT Total Return Fund 11.985762 12.644908 5.50% 260 1999
- - NQ
10.000000 11.985762 19.86% 0 1998
NSAT Nationwide 10.670741 10.618109 -0.49% 201 1999
Balanced Fund - Q
10.000000 10.670741 6.71% 0 1998
NSAT Nationwide 10.670741 10.618109 -0.49% 0 1999
Balanced Fund - NQ
10.000000 10.670741 6.71% 0 1998
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999
was 4.02%.
154
<PAGE> 155
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.838823 13.838584 16.89% 0 1999
Income Fund - Q
10.000000 11.838823 18.39% 0 1998
NSAT Nationwide Equity 11.838823 13.838584 16.89% 0 1999
Income Fund - NQ
10.000000 11.838823 18.39% 0 1998
NSAT Nationwide Global 12.204564 14.799960 21.27% 102 1999
50 Fund - Q(1)
10.000000 12.204564 22.05% 0 1998
NSAT Nationwide Global 12.204564 14.799960 21.27% 0 1999
50 Fund - NQ(1)
10.000000 12.204564 22.05% 0 1998
NSAT Nationwide High 10.333294 10.519004 1.80% 0 1999
Income Bond Fund - Q
10.000000 10.333294 3.33% 0 1998
NSAT Nationwide High 10.333294 10.519004 1.80% 0 1999
Income Bond Fund - NQ
10.000000 10.333294 3.33% 0 1998
NSAT Nationwide Mid Cap 12.246138 14.608445 19.29% 0 1999
Index Fund-Q(2)
10.000000 12.246138 22.46% 0 1998
NSAT Nationwide Mid Cap 12.246138 14.608445 19.29% 0 1999
Index Fund- NQ(2)
10.000000 12.246138 22.46% 0 1998
NSAT Nationwide Multi 10.239367 10.258279 0.18% 25 1999
Sector Bond Fund - Q
10.000000 10.239367 2.39% 0 1998
NSAT Nationwide Multi 10.239367 10.258279 0.18% 0 1999
Sector Bond Fund - NQ
10.000000 10.239367 2.39% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
155
<PAGE> 156
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.318124 103.18% 0 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.318124 103.18% 0 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 12.956203 16.339365 26.11% 86 1999
Cap Value Fund - Q
10.000000 12.956203 29.56% 0 1998
NSAT Nationwide Small 12.956203 16.339365 26.11% 0 1999
Cap Value Fund - NQ
10.000000 12.956203 29.56% 0 1998
NSAT Nationwide Small 12.115436 17.213333 42.08% 0 1999
Company Fund - Q
10.000000 12.115436 21.15% 0 1998
NSAT Nationwide Small 12.115436 17.213333 42.08% 0 1999
Company Fund - NQ
10.000000 12.115436 21.15% 0 1998
NSAT Nationwide 12.660760 23.075929 82.26% 0 1999
Strategic Growth Fund -
Q
10.000000 12.660760 26.61% 0 1998
NSAT Nationwide 12.660760 23.075929 82.26% 0 1999
Strategic Growth Fund -
NQ
10.000000 12.660760 26.61% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
156
<PAGE> 157
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 12.878920 14.602403 13.38% 18 1999
Guardian Portfolio - Q
10.000000 12.878920 28.79% 0 1998
Neuberger Berman AMT 12.878920 14.602403 13.38% 0 1999
Guardian Portfolio - NQ
10.000000 12.878920 28.79% 0 1998
Neuberger Berman AMT 14.069118 21.358908 51.81% 103 1999
Mid-Cap Growth
Portfolio - Q
10.000000 14.069118 40.69% 0 1998
Neuberger Berman AMT 14.069118 21.358908 51.81% 0 1999
Mid-Cap Growth
Portfolio - NQ
10.000000 14.069118 40.69% 0 1998
Neuberger Berman AMT 11.850559 12.552194 5.92% 0 1999
Partners Portfolio - Q
10.000000 11.850559 18.51% 0 1998
Neuberger Berman AMT 11.850559 12.552194 5.92% 0 1999
Partners Portfolio - NQ
10.000000 11.850559 18.51% 0 1998
Oppenheimer Variable 13.183516 23.879534 81.13% 70 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
10.000000 13.183516 31.84% 0 1998
Oppenheimer Variable 13.183516 23.879534 81.13% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
10.000000 13.183516 31.84% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
157
<PAGE> 158
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 13.236669 18.497677 39.75% 0 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(1)
10.000000 13.236669 32.37% 0 1998
Oppenheimer Variable 13.236669 18.497677 39.75% 223 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
10.000000 13.236669 32.37% 0 1998
Oppenheimer Variable 12.332876 14.807604 20.07% 298 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.000000 12.332876 23.33% 0 1998
Oppenheimer Variable 12.332876 14.807604 20.07% 80 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.000000 12.332876 23.33% 0 1998
The Universal 11.388309 14.534892 27.63% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.000000 11.388309 13.88% 0 1998
The Universal 11.388309 14.534892 27.63% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.000000 11.388309 13.88% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
158
<PAGE> 159
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 12.626347 24.947866 97.59% 11 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
10.000000 12.626347 26.26% 0 1998
Van Eck Worldwide 12.626347 24.947866 97.59% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
10.000000 12.626347 26.26% 0 1998
Van Eck Worldwide 9.912267 11.832203 19.37% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
10.000000 9.912267 -0.88% 0 1998
Van Eck Worldwide 9.912267 11.832203 19.37% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
10.000000 9.912267 -0.88% 0 1998
Van Kampen Life 10.404764 9.918143 -4.68% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.000000 10.404764 4.05% 0 1998
Van Kampen Life 10.404764 9.918143 -4.68% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.000000 10.404764 4.05% 0 1998
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service
159
<PAGE> 160
Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares
were added to the variable account effective January 27, 2000. Therefore, no
Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
160
<PAGE> 161
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.40%)
(VARIABLE ACCOUNT CHARGES OF 1.40% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.506047 14.553111 16.37% 6,866 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.000000 12.506407 25.06% 0 1998
American Century 12.506047 14.553111 16.37% 1,803 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.000000 12.506407 25.06% 0 1998
American Century 12.052929 19.495801 61.75% 5,609 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.000000 12.052929 20.53% 0 1998
American Century 12.052929 19.495801 61.75% 2,055 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.000000 12.052929 20.53% 0 1998
American Century 11.271284 11.019041 -2.24% 5,362 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.000000 11.271284 12.71% 0 1998
American Century 11.271284 11.019041 -2.24% 2,563 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.000000 11.271284 12.71% 0 1998
Dreyfus Investment 10.000000 12.883469 28.83% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.883469 28.83% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 12.775247 16.385550 28.26% 2,826 1999
Responsible Growth
Fund, Inc. - Q
10.000000 12.775247 27.75% 0 1998
</TABLE>
161
<PAGE> 162
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.775247 16.385550 28.26% 4,225 1999
Responsible Growth
Fund, Inc. - NQ
10.000000 12.775247 27.75% 0 1998
Dreyfus Stock Index 12.454838 14.810885 18.92% 58,351 1999
Fund, Inc. - Q
10.000000 12.454838 24.55% 0 1998
Dreyfus Stock Index 12.454838 14.810885 18.92% 14,182 1999
Fund, Inc. - NQ
10.000000 12.454838 24.55% 0 1998
Dreyfus Variable 12.380620 13.605834 9.90% 19,504 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.000000 12.380620 23.81% 0 1998
Dreyfus Variable 12.380620 13.605834 9.90% 3,244 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.000000 12.380620 23.81% 0 1998
Federated Insurance 10.000000 9.777237 -2.23% 8 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.777237 -2.23% 174 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.800868 12.363474 4.77% 12,275 1999
Equity-Income
Portfolio: Service
Class - Q
10.000000 11.800868 18.01% 0 1998
Fidelity VIP 11.800868 12.363474 4.77% 7,210 1999
Equity-Income
Portfolio: Service
Class - NQ
10.000000 11.800868 18.01% 0 1998
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
162
<PAGE> 163
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.904732 17.468631 35.37% 33,812 1999
Portfolio: Service
Class - Q
10.000000 12.904732 29.05% 0 1998
Fidelity VIP Growth 12.904732 17.468631 35.37% 11,807 1999
Portfolio: Service
Class - NQ
10.000000 12.904732 29.05% 0 1998
Fidelity VIP High 10.522617 11.213084 6.56% 1,729 1999
Income Portfolio:
Service Class - Q
10.000000 10.522617 5.23% 0 1998
Fidelity VIP High 10.522617 11.213084 6.56% 5,530 1999
Income Portfolio:
Service Class - NQ
10.000000 10.522617 5.23% 0 1998
Fidelity VIP Overseas 12.178128 17.106743 40.47% 730 1999
Portfolio: Service
Class - Q
10.000000 12.178128 21.78% 0 1998
Fidelity VIP Overseas 12.178128 17.106743 40.47% 1,826 1999
Portfolio: Service
Class - NQ
10.000000 12.178128 21.78% 0 1998
Fidelity VIP II 12.787496 15.653161 22.41% 13,606 1999
Contrafund(R)Portfolio:
Service Class - Q
10.000000 12.787496 27.87% 0 1998
Fidelity VIP II 12.787496 15.653161 22.41% 5,351 1999
Contrafund(R)Portfolio:
Service Class - NQ
10.000000 12.787496 27.87% 0 1998
Fidelity VIP III Growth 12.300214 12.635267 2.72% 8,255 1999
Opportunities
Portfolio: Service
Class - Q
10.000000 12.300214 23.00% 0 1998
Fidelity VIP III Growth 12.300214 12.635267 2.72% 2,412 1999
Opportunities
Portfolio: Service
Class - NQ
10.000000 12.300214 23.00% 0 1998
</TABLE>
163
<PAGE> 164
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.430206 12.780450 2.82% 31,154 1999
Appreciation Fund - Q
10.000000 12.430206 24.30% 0 1998
NSAT Capital 12.430206 12.780450 2.82% 15,231 1999
Appreciation Fund - NQ
10.000000 12.430206 24.30% 0 1998
NSAT Government Bond 9.845615 9.479885 -3.71% 5,302 1999
Fund - Q
10.000000 9.845615 -1.54% 0 1998
NSAT Government Bond 9.845615 9.479885 -3.71% 2,731 1999
Fund - NQ
10.000000 9.845615 -1.54% 0 1998
NSAT Money Market Fund 10.088053 10.429048 3.38% 4,116 1999
- - Q*
10.000000 10.088053 0.88% 0 1998
NSAT Money Market Fund 10.088053 10.429048 3.38% 1,374 1999
- - NQ*
10.000000 10.088053 0.88% 0 1998
NSAT Total Return Fund 11.984248 12.636905 5.45% 53,484 1999
- - Q
10.000000 11.984248 19.84% 0 1998
NSAT Total Return Fund 11.984248 12.636905 5.45% 17,353 1999
- - NQ
10.000000 11.984248 19.84% 0 1998
NSAT Nationwide 10.669391 10.611396 -0.54% 2,229 1999
Balanced Fund - Q
10.000000 10.669391 6.69% 0 1998
NSAT Nationwide 10.669391 10.611396 -0.54% 317 1999
Balanced Fund - NQ
10.000000 10.669391 6.69% 0 1998
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999
was 3.97%.
164
<PAGE> 165
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.837331 13.829829 16.83% 654 1999
Income Fund - Q
10.000000 11.837331 18.37% 0 1998
NSAT Nationwide Equity 11.837331 13.829829 16.83% 1,566 1999
Income Fund - NQ
10.000000 11.837331 18.37% 0 1998
NSAT Nationwide Global 12.203027 14.790595 21.20% 0 1999
50 Fund - Q(1)
10.000000 12.203027 22.03% 0 1998
NSAT Nationwide Global 12.203027 14.790595 21.20% 1,502 1999
50 Fund - NQ(1)
10.000000 12.203027 22.03% 0 1998
NSAT Nationwide High 10.331990 10.512337 1.75% 2,780 1999
Income Bond Fund - Q
10.000000 10.331990 3.32% 0 1998
NSAT Nationwide High 10.331990 10.512337 1.75% 84 1999
Income Bond Fund - NQ
10.000000 10.331990 3.32% 0 1998
NSAT Nationwide Mid Cap 12.244601 14.599208 19.23% 871 1999
Index Fund-Q(2)
10.00000 12.244601 22.45% 0 1998
NSAT Nationwide Mid Cap 12.244601 14.599208 19.23% 0 1999
Index Fund- NQ(2)
10.00000 12.244601 22.45% 0 1998
NSAT Nationwide Multi 10.238069 10.251777 0.13% 935 1999
Sector Bond Fund - Q
10.000000 10.238069 2.38% 0 1998
NSAT Nationwide Multi 10.238069 10.251777 0.13% 68 1999
Sector Bond Fund - NQ
10.000000 10.238069 2.38% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
165
<PAGE> 166
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.311328 103.11% 0 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.311328 103.11% 0 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 12.954576 16.329040 26.05% 1,066 1999
Cap Value Fund - Q
10.000000 12.954576 29.55% 0 1998
NSAT Nationwide Small 12.954576 16.329040 26.05% 1,813 1999
Cap Value Fund - NQ
10.000000 12.954576 29.55% 0 1998
NSAT Nationwide Small 12.113907 17.202461 42.01% 1,566 1999
Company Fund - Q
10.000000 12.113907 21.14% 0 1998
NSAT Nationwide Small 12.113907 17.202461 42.01% 0 1999
Company Fund - NQ
10.000000 12.113907 21.14% 0 1998
NSAT Nationwide 12.659167 23.061361 82.17% 2,853 1999
Strategic Growth Fund -
Q
10.000000 12.659167 26.59% 0 1998
NSAT Nationwide 12.659167 23.061361 82.17% 540 1999
Strategic Growth Fund -
NQ
10.000000 12.659167 26.59% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
166
<PAGE> 167
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 12.877297 14.593171 13.32% 1,157 1999
Guardian Portfolio - Q
10.000000 12.877297 28.77% 0 1998
Neuberger Berman AMT 12.877297 14.593171 13.32% 0 1999
Guardian Portfolio - NQ
10.000000 12.877297 28.77% 0 1998
Neuberger Berman AMT 14.067351 21.345408 51.74% 4,508 1999
Mid-Cap Growth
Portfolio - Q
10.000000 14.067351 40.67% 0 1998
Neuberger Berman AMT 14.067351 21.345408 51.74% 1,022 1999
Mid-Cap Growth
Portfolio - NQ
10.000000 14.067351 40.67% 0 1998
Neuberger Berman AMT 11.849067 12.544255 5.87% 4,022 1999
Partners Portfolio - Q
10.000000 11.849067 18.49% 0 1998
Neuberger Berman AMT 11.849067 12.544255 5.87% 752 1999
Partners Portfolio - NQ
10.000000 11.849067 18.49% 0 1998
Oppenheimer Variable 13.181851 23.864429 81.04% 2,246 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
10.000000 13.181851 31.82% 0 1998
Oppenheimer Variable 13.181851 23.864429 81.04% 2,302 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
10.000000 13.181851 31.82% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
167
<PAGE> 168
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 13.235004 18.485985 39.67% 11,468 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA - Q(1)
10.000000 13.235004 32.35% 0 1998
Oppenheimer Variable 13.235004 18.485985 39.67% 6,224 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
10.000000 13.235004 32.35% 0 1998
Oppenheimer Variable 12.331317 14.798240 20.01% 16,965 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.000000 12.331317 23.31% 0 1998
Oppenheimer Variable 12.331317 14.798240 20.01% 5,156 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.000000 12.331317 23.31% 0 1998
The Universal 11.386873 14.525802 27.57% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.000000 11.386873 13.87% 0 1998
The Universal 11.386873 14.525802 27.57% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.000000 11.386873 13.87% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
168
<PAGE> 169
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 12.624752 24.932117 97.49% 1,166 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
10.000000 12.624752 26.25% 0 1998
Van Eck Worldwide 12.624752 24.932117 97.49% 592 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
10.000000 12.624752 26.25% 0 1998
Van Eck Worldwide 9.911011 11.824722 19.31% 2,497 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
10.000000 9.911011 -0.89% 0 1998
Van Eck Worldwide 9.911011 11.824722 19.31% 221 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
10.000000 9.911011 -0.89% 0 1998
Van Kampen Life 10.403446 9.911855 -4.73% 250 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.000000 10.403446 4.03% 0 1998
Van Kampen Life 10.403446 9.911855 -4.73% 889 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.000000 10.403446 4.03% 0 1998
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service
169
<PAGE> 170
Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares
were added to the variable account effective January 27, 2000. Therefore, no
Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
170
<PAGE> 171
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.45%)
(VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.504468 14.543892 16.31% 414 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.000000 12.504468 25.04% 0 1998
American Century 12.504468 14.543892 16.31% 2,924 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.000000 12.504468 25.04% 0 1998
American Century 12.051405 19.483474 61.67% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.000000 12.051405 20.51% 0 1998
American Century 12.051405 19.483474 61.67% 3,787 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.000000 12.051405 20.51% 0 1998
American Century 11.269864 11.012072 -2.29% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.000000 11.269864 12.70% 0 1998
American Century 11.269864 11.012072 -2.29% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.000000 11.269864 12.70% 0 1998
Dreyfus Investment 10.000000 12.881775 28.82% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.881775 28.82% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 12.773638 16.375184 28.20% 4,973 1999
Responsible Growth
Fund, Inc. - Q
10.000000 12.773638 27.74% 0 1998
</TABLE>
171
<PAGE> 172
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.773638 16.375184 28.20% 3,868 1999
Responsible Growth
Fund, Inc. - NQ
10.000000 12.773638 27.74% 0 1998
Dreyfus Stock Index 12.453273 14.801530 18.86% 24,817 1999
Fund, Inc. - Q
10.000000 12.453273 24.53% 0 1998
Dreyfus Stock Index 12.453273 14.801530 18.86% 33,498 1999
Fund, Inc. - NQ
10.000000 12.453273 24.53% 0 1998
Dreyfus Variable 12.379057 13.597232 9.84% 4,035 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.000000 12.379057 23.79% 0 1998
Dreyfus Variable 12.379057 13.597232 9.84% 2,220 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.000000 12.379057 23.79% 0 1998
Federated Insurance 10.000000 9.773948 -2.26% 52 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.773948 -2.26% 0 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.799375 12.355641 4.71% 6,732 1999
Equity-Income
Portfolio: Service
Class - Q
10.000000 11.799375 17.99% 0 1998
Fidelity VIP 11.799375 12.355641 4.71% 20,296 1999
Equity-Income
Portfolio: Service
Class - NQ
10.000000 11.799375 17.99% 0 1998
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
172
<PAGE> 173
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.903107 17.457597 35.30% 11,174 1999
Portfolio: Service
Class - Q
10.000000 12.903107 29.03% 0 1998
Fidelity VIP Growth 12.903107 17.457597 35.30% 11,185 1999
Portfolio: Service
Class - NQ
10.000000 12.903107 29.03% 0 1998
Fidelity VIP High 10.521282 11.205978 6.51% 1,302 1999
Income Portfolio:
Service Class - Q
10.000000 10.521282 5.21% 0 1998
Fidelity VIP High 10.521282 11.205978 6.51% 1,902 1999
Income Portfolio:
Service Class - NQ
10.000000 10.521282 5.21% 0 1998
Fidelity VIP Overseas 12.176593 17.095933 40.40% 1,185 1999
Portfolio: Service
Class - Q
10.000000 12.176593 21.77% 0 1998
Fidelity VIP Overseas 12.176593 17.095933 40.40% 320 1999
Portfolio: Service
Class - NQ
10.000000 12.176593 21.77% 0 1998
Fidelity VIP II 12.785888 15.643260 22.35% 5,156 1999
Contrafund(R)Portfolio:
Service Class - Q
10.000000 12.785888 27.86% 0 1998
Fidelity VIP II 12.785888 15.643260 22.35% 2,495 1999
Contrafund(R)Portfolio:
Service Class - NQ
10.000000 12.785888 27.86% 0 1998
Fidelity VIP III Growth 12.298659 12.627255 2.67% 848 1999
Opportunities
Portfolio: Service
Class - Q
10.000000 12.298659 22.99% 0 1998
Fidelity VIP III Growth 12.298659 12.627255 2.67% 350 1999
Opportunities
Portfolio: Service
Class - NQ
10.000000 12.298659 22.99% 0 1998
</TABLE>
173
<PAGE> 174
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.428639 12.772360 2.77% 5,318 1999
Appreciation Fund - Q
10.000000 12.428639 24.29% 0 1998
NSAT Capital 12.428639 12.772360 2.77% 7,947 1999
Appreciation Fund - NQ
10.000000 12.428639 24.29% 0 1998
NSAT Government Bond 9.844366 9.473867 -3.76% 2,805 1999
Fund - Q
10.000000 9.844366 -1.56% 0 1998
NSAT Government Bond 9.844366 9.473867 -3.76% 25,195 1999
Fund - NQ
10.000000 9.844366 -1.56% 0 1998
NSAT Money Market Fund 10.086763 10.422427 3.33% 17,714 1999
- - Q*
10.000000 10.086763 0.87% 0 1998
NSAT Money Market Fund 10.086763 10.422427 3.33% 9,674 1999
- - NQ*
10.000000 10.086763 0.87% 0 1998
NSAT Total Return Fund 11.982735 12.628895 5.39% 15,219 1999
- - Q
10.000000 11.982735 19.83% 0 1998
NSAT Total Return Fund 11.982735 12.628895 5.39% 19,035 1999
- - NQ
10.000000 11.982735 19.83% 0 1998
NSAT Nationwide 10.668044 10.604669 -0.59% 3,235 1999
Balanced Fund - Q
10.000000 10.668044 6.68% 0 1998
NSAT Nationwide 10.668044 10.604669 -0.59% 1,697 1999
Balanced Fund - NQ
10.000000 10.668044 6.68% 0 1998
1997
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999
was 3.92%.
174
<PAGE> 175
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.835834 13.821079 16.77% 0 1999
Income Fund - Q
10.000000 11.835834 18.36% 0 1998
NSAT Nationwide Equity 11.835834 13.821079 16.77% 230 1999
Income Fund - NQ
10.000000 11.835834 18.36% 0 1998
NSAT Nationwide Global 12.201492 14.781243 21.14% 1,409 1999
50 Fund - Q(1)
10.000000 12.201492 22.01% 0 1998
NSAT Nationwide Global 12.201492 14.781243 21.14% 298 1999
50 Fund - NQ(1)
10.000000 12.201492 22.01% 0 1998
NSAT Nationwide High 10.330681 10.505688 1.69% 1,761 1999
Income Bond Fund - Q
10.000000 10.330681 3.31% 0 1998
NSAT Nationwide High 10.330681 10.505688 1.69% 522 1999
Income Bond Fund - NQ
10.000000 10.330681 3.31% 0 1998
NSAT Nationwide Mid Cap 12.243049 14.589957 19.17% 0 1999
Index Fund-Q(2)
10.000000 12.243049 22.43% 0 1998
NSAT Nationwide Mid Cap 12.243049 14.589957 19.17% 0 1999
Index Fund- NQ(2)
10.000000 12.243049 22.43% 0 1998
NSAT Nationwide Multi 10.236779 10.245290 0.08% 332 1999
Sector Bond Fund - Q
10.000000 10.236779 2.37% 0 1998
NSAT Nationwide Multi 10.236779 10.245290 0.08% 414 1999
Sector Bond Fund - NQ
10.000000 10.236779 2.37% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
175
<PAGE> 176
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.304522 103.05% 56 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.304522 103.05% 1,615 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 12.952944 16.318704 25.98% 2,229 1999
Cap Value Fund - Q
10.000000 12.952944 29.53% 0 1998
NSAT Nationwide Small 12.952944 16.318704 25.98% 489 1999
Cap Value Fund - NQ
10.000000 12.952944 29.53% 0 1998
NSAT Nationwide Small 12.112381 17.191574 41.93% 735 1999
Company Fund - Q
10.000000 12.112381 21.12% 0 1998
NSAT Nationwide Small 12.112381 17.191574 41.93% 107 1999
Company Fund - NQ
10.000000 12.112381 21.12% 0 1998
NSAT Nationwide 12.657572 23.046789 82.08% 4,278 1999
Strategic Growth Fund -
Q
10.000000 12.657572 26.58% 0 1998
NSAT Nationwide 12.657572 23.046789 82.08% 909 1999
Strategic Growth Fund -
NQ
10.000000 12.657572 26.58% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
176
<PAGE> 177
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 12.875671 14.583934 13.27% 1,068 1999
Guardian Portfolio - Q
10.000000 12.875671 28.76% 0 1998
Neuberger Berman AMT 12.875671 14.583934 13.27% 416 1999
Guardian Portfolio - NQ
10.000000 12.875671 28.76% 0 1998
Neuberger Berman AMT 14.065578 21.331920 51.66% 1,230 1999
Mid-Cap Growth
Portfolio - Q
10.000000 14.065578 40.66% 0 1998
Neuberger Berman AMT 14.065578 21.331920 51.66% 1,717 1999
Mid-Cap Growth
Portfolio - NQ
10.000000 14.065578 40.66% 0 1998
Neuberger Berman AMT 11.847572 12.536312 5.81% 4,900 1999
Partners Portfolio - Q
10.000000 11.847572 18.48% 0 1998
Neuberger Berman AMT 11.847572 12.536312 5.81% 1,254 1999
Partners Portfolio - NQ
10.000000 11.847572 18.48% 0 1998
Oppenheimer Variable 13.180191 23.849355 80.95% 1,448 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
10.000000 13.180191 31.80% 0 1998
Oppenheimer Variable 13.180191 23.849355 80.95% 24,045 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
10.000000 13.180191 31.80% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
177
<PAGE> 178
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 13.233333 18.474301 39.60% 3,780 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(1)
10.000000 13.233333 32.23% 0 1998
Oppenheimer Variable 13.233333 18.474301 39.60% 167 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
10.000000 13.233333 32.23% 0 1998
Oppenheimer Variable 12.329765 14.788879 19.94% 6,006 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.000000 12.329765 23.30% 0 1998
Oppenheimer Variable 12.329765 14.788879 19.94% 5,080 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.000000 12.329765 23.30% 0 1998
The Universal 11.385439 14.516616 27.50% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.000000 11.385439 13.85% 0 1998
The Universal 11.385439 14.516616 27.50% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.000000 11.385439 13.85% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
178
<PAGE> 179
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 12.623166 24.916384 97.39% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
10.000000 12.623166 26.23% 0 1998
Van Eck Worldwide 12.623166 24.916384 97.39% 15,963 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
10.000000 12.623166 26.23% 0 1998
Van Eck Worldwide 9.909760 11.817233 19.25% 175 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
10.000000 9.909760 -0.90% 0 1998
Van Eck Worldwide 9.909760 11.817233 19.25% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
10.000000 9.909760 -0.90% 0 1998
Van Kampen Life 10.402138 9.905582 -4.77% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.000000 10.402138 4.02% 0 1998
Van Kampen Life 10.402138 9.905582 -4.77% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.000000 10.402138 4.02% 0 1998
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
179
<PAGE> 180
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
180
<PAGE> 181
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.50%)
(VARIABLE ACCOUNT CHARGES OF 1.50% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.502898 14.534695 16.25% 2,824 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.000000 12.502898 25.03% 0 1998
American Century 12.502898 14.534695 16.25% 2,019 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.000000 12.502898 25.03% 0 1998
American Century 12.049887 19.471172 61.59% 4,198 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.000000 12.049887 20.50% 0 1998
American Century 12.049887 19.471172 61.59% 6,176 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.000000 12.049887 20.50% 0 1998
American Century 11.268440 11.005082 -2.34% 2,908 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.000000 11.268440 12.68% 0 1998
American Century 11.268440 11.005082 -2.34% 3,795 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.000000 11.268440 12.68% 0 1998
Dreyfus Investment 10.000000 12.880083 28.80% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.880083 28.80% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 12.772030 16.364824 28.13% 2,099 1999
Responsible Growth
Fund, Inc. - Q
10.000000 12.772030 27.72% 0 1998
</TABLE>
181
<PAGE> 182
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.772030 16.364824 28.13% 1,156 1999
Responsible Growth
Fund, Inc. - NQ
10.000000 12.772030 27.72% 0 1998
Dreyfus Stock Index 12.451705 14.792159 18.80% 19,107 1999
Fund, Inc. - Q
10.000000 12.451705 24.52% 0 1998
Dreyfus Stock Index 12.451705 14.792159 18.80% 35,114 1999
Fund, Inc. - NQ
10.000000 12.451705 24.52% 0 1998
Dreyfus Variable 12.377494 13.588614 9.78% 4,237 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.000000 12.377494 23.77% 0 1998
Dreyfus Variable 12.377494 13.588614 9.78% 6,661 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.000000 12.377494 23.77% 0 1998
Federated Insurance 10.000000 9.770666 -2.29% 836 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.770666 -2.29% 709 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.797885 12.347825 4.66% 1,744 1999
Equity-Income
Portfolio: Service
Class - Q
10.000000 11.797885 17.98% 0 1998
Fidelity VIP 11.797885 12.347825 4.66% 10,568 1999
Equity-Income
Portfolio: Service
Class - NQ
10.000000 11.797885 17.98% 0 1998
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
182
<PAGE> 183
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.901477 17.446540 35.23% 8,673 1999
Portfolio: Service
Class - Q
10.000000 12.901477 29.01% 0 1998
Fidelity VIP Growth 12.901477 17.446540 35.23% 10,648 1999
Portfolio: Service
Class - NQ
10.000000 12.901477 29.01% 0 1998
Fidelity VIP High 10.519957 11.198884 6.45% 994 1999
Income Portfolio:
Service Class - Q
10.000000 10.519957 5.20% 0 1998
Fidelity VIP High 10.519957 11.198884 6.45% 5,476 1999
Income Portfolio:
Service Class - NQ
10.000000 10.519957 5.20% 0 1998
Fidelity VIP Overseas 12.175055 17.085125 40.33% 1,193 1999
Portfolio: Service
Class - Q
10.000000 12.175055 21.75% 0 1998
Fidelity VIP Overseas 12.175055 17.085125 40.33% 544 1999
Portfolio: Service
Class - NQ
10.000000 12.175055 21.75% 0 1998
Fidelity VIP II 12.784276 15.633362 22.29% 6,769 1999
Contrafund(R)Portfolio:
Service Class - Q
10.000000 12.784276 27.84% 0 1998
Fidelity VIP II 12.784276 15.633362 22.29% 4,958 1999
Contrafund(R)Portfolio:
Service Class - NQ
10.000000 12.784276 27.84% 0 1998
Fidelity VIP III Growth 12.297109 12.619265 2.62% 0 1999
Opportunities
Portfolio: Service
Class - Q
10.000000 12.297109 22.97% 0 1998
Fidelity VIP III Growth 12.297109 12.619265 2.62% 1,052 1999
Opportunities
Portfolio: Service
Class - NQ
10.000000 12.297109 22.97% 0 1998
</TABLE>
183
<PAGE> 184
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.427070 12.764281 2.71% 7,536 1999
Appreciation Fund - Q
10.000000 12.427070 24.27% 0 1998
NSAT Capital 12.427070 12.764281 2.71% 4,510 1999
Appreciation Fund - NQ
10.000000 12.427070 24.27% 0 1998
NSAT Government Bond 9.843122 9.467860 -3.81% 594 1999
Fund - Q
10.000000 9.843122 -1.57% 0 1998
NSAT Government Bond 9.843122 9.467860 -3.81% 13,238 1999
Fund - NQ
10.000000 9.843122 -1.57% 0 1998
NSAT Money Market Fund 10.085474 10.415808 3.28% 19,181 1999
- - Q*
10.000000 10.085474 0.85% 0 1998
NSAT Money Market Fund 10.085474 10.415808 3.28% 35,315 1999
- - NQ*
10.000000 10.085474 0.85% 0 1998
NSAT Total Return Fund 11.981226 12.620906 5.34% 4,117 1999
- - Q
10.000000 11.981226 19.81% 0 1998
NSAT Total Return Fund 11.981226 12.620906 5.34% 12.216 1999
- - NQ
10.000000 11.981226 19.81% 0 1998
NSAT Nationwide 10.666693 10.597955 -0.64% 109 1999
Balanced Fund - Q
10.000000 10.666693 6.67% 0 1998
NSAT Nationwide 10.666693 10.597955 -0.64% 677 1999
Balanced Fund - NQ
10.000000 10.666693 6.67% 0 1998
1997
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999
was 3.87%.
184
<PAGE> 185
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.834345 13.812331 16.71% 3,142 1999
Income Fund - Q
10.000000 11.834345 18.34% 0 1998
NSAT Nationwide Equity 11.843345 13.812331 16.71% 506 1999
Income Fund - NQ
10.000000 11.843345 18.34% 0 1998
NSAT Nationwide Global 12.199950 14.771891 21.08% 0 1999
50 Fund - Q(1)
10.000000 12.199950 22.00% 0 1998
NSAT Nationwide Global 12.199950 14.771891 21.08% 21 1999
50 Fund - NQ(1)
10.000000 12.199950 22.00% 0 1998
NSAT Nationwide High 10.329379 10.499020 1.64% 1,397 1999
Income Bond Fund - Q
10.000000 10.329379 3.29% 0 1998
NSAT Nationwide High 10.329379 10.499020 1.64% 4,125 1999
Income Bond Fund - NQ
10.000000 10.329379 3.29% 0 1998
NSAT Nationwide Mid Cap 12.241505 14.580726 19.11% 0 1999
Index Fund-Q(2)
10.000000 12.241505 22.42% 0 1998
NSAT Nationwide Mid Cap 12.241505 14.580726 19.11% 0 1999
Index Fund- NQ(2)
10.000000 12.241505 22.42% 0 1998
NSAT Nationwide Multi 10.235484 10.238786 0.03% 0 1999
Sector Bond Fund - Q
10.000000 10.235484 2.35% 0 1998
NSAT Nationwide Multi 10.235484 10.238786 0.03% 0 1999
Sector Bond Fund - NQ
10.000000 10.235484 2.35% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
185
<PAGE> 186
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.297724 102.98% 0 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.297724 102.98% 0 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 12.951308 16.308373 25.92% 1,244 1999
Cap Value Fund - Q
10.000000 12.951308 29.51% 0 1998
NSAT Nationwide Small 12.951308 16.308373 25.92% 1,119 1999
Cap Value Fund - NQ
10.000000 12.951308 29.51% 0 1998
NSAT Nationwide Small 12.110854 17.180698 41.86% 1,410 1999
Company Fund - Q
10.000000 12.110854 21.11% 0 1998
NSAT Nationwide Small 12.110854 17.180698 41.86% 4,635 1999
Company Fund - NQ
10.000000 12.110854 21.11% 0 1998
NSAT Nationwide 12.655972 23.032196 81.99% 2,030 1999
Strategic Growth Fund -
Q
10.000000 12.655972 26.56% 0 1998
NSAT Nationwide 12.655972 23.032196 81.99% 493 1999
Strategic Growth Fund -
NQ
10.000000 12.655972 26.56% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
186
<PAGE> 187
'
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 12.874049 14.574691 13.21% 0 1999
Guardian Portfolio - Q
10.000000 12.874049 28.74% 0 1998
Neuberger Berman AMT 12.874049 14.574691 13.21% 202 1999
Guardian Portfolio - NQ
10.000000 12.874049 28.74% 0 1998
Neuberger Berman AMT 14.063808 21.318413 51.58% 1,746 1999
Mid-Cap Growth
Portfolio - Q
10.000000 14.063808 40.64% 0 1998
Neuberger Berman AMT 14.063808 21.318413 51.58% 3,464 1999
Mid-Cap Growth
Portfolio - NQ
10.000000 14.063808 40.64% 0 1998
Neuberger Berman AMT 11.846069 12.528364 5.76% 0 1999
Partners Portfolio - Q
10.000000 11.846069 18.46% 0 1998
Neuberger Berman AMT 11.846069 12.528364 5.76% 76 1999
Partners Portfolio - NQ
10.000000 11.846069 18.46% 0 1998
Oppenheimer Variable 13.178533 23.834283 80.86% 1,127 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
10.000000 13.178533 31.79% 0 1998
Oppenheimer Variable 13.178533 23.834283 80.86% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
10.000000 13.178533 31.79% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
187
<PAGE> 188
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 13.231670 18.462618 39.53% 9,182 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(1)
10.000000 13.231670 32.32% 0 1998
Oppenheimer Variable 13.231670 18.462618 39.53% 1,652 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
10.000000 13.231670 32.32% 0 1998
Oppenheimer Variable 12.328212 14.779520 19.88% 2,195 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.000000 12.328212 23.28% 0 1998
Oppenheimer Variable 12.328212 14.779520 19.88% 2,856 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.000000 12.328212 23.28% 0 1998
The Universal 11.383996 14.507420 27.44% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.000000 11.383996 13.84% 0 1998
The Universal 11.383996 14.507420 27.44% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.000000 11.383996 13.84% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
188
<PAGE> 189
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 12.621572 24.900624 97.29% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
10.000000 12.621572 26.22% 0 1998
Van Eck Worldwide 12.621572 24.900624 97.29% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
10.000000 12.621572 26.22% 0 1998
Van Eck Worldwide 9.908503 11.809742 19.19% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
10.000000 9.908503 -0.91% 0 1998
Van Eck Worldwide 9.908503 11.809742 19.19% 296 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
10.000000 9.908503 -0.91% 0 1998
Van Kampen Life 10.400818 9.899304 -4.82% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.000000 10.400818 4.01% 0 1998
Van Kampen Life 10.400818 9.899304 -4.82% 329 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.000000 10.400818 4.01% 0 1998
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
189
<PAGE> 190
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
190
<PAGE> 191
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.55%)
(VARIABLE ACCOUNT CHARGES OF 1.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.501318 14.525483 16.19% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.000000 12.501318 25.01% 0 1998
American Century 12.501318 14.525483 16.19% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.000000 12.501318 25.01% 0 1998
American Century 12.048368 19.458849 61.51% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.000000 12.048368 20.48% 0 1998
American Century 12.048368 19.458849 61.51% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.000000 12.048368 20.48% 0 1998
American Century 11.267010 10.998104 -2.39% 3,076 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.000000 11.267010 12.67% 0 1998
American Century 11.267010 10.998104 -2.39% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.000000 11.267010 12.67% 0 1998
Dreyfus Investment 10.000000 12.878387 28.78% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.878387 28.78% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 12.770419 16.354471 28.07% 90 1999
Responsible Growth
Fund, Inc. - Q
10.000000 12.770419 27.70% 0 1998
</TABLE>
191
<PAGE> 192
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.770419 16.354471 28.07% 90 1999
Responsible Growth
Fund, Inc. - NQ
10.000000 12.770419 27.70% 0 1998
Dreyfus Stock Index 12.450128 14.782794 18.74% 2,465 1999
Fund, Inc. - Q
10.000000 12.450128 24.50% 0 1998
Dreyfus Stock Index 12.450128 14.782794 18.74% 353 1999
Fund, Inc. - NQ
10.000000 12.450128 24.50% 0 1998
Dreyfus Variable 12.375935 13.580004 9.73% 0 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.000000 12.375935 23.76% 0 1998
Dreyfus Variable 12.375935 13.580004 9.73% 0 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.000000 12.375935 23.76% 0 1998
Federated Insurance 10.000000 9.767363 -2.33% 0 1999
Series - Federated
Quality Bond Fund II -
Q
Federated Insurance 10.000000 9.767363 -2.33% 0 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.796399 12.339995 4.61% 2,679 1999
Equity-Income
Portfolio: Service
Class - Q
10.000000 11.796399 17.96% 0 1998
Fidelity VIP 11.796399 12.339995 4.61% 0 1999
Equity-Income
Portfolio: Service
Class - NQ
10.000000 11.796399 17.96% 0 1998
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
192
<PAGE> 193
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.899854 17.435504 35.16% 2,316 1999
Portfolio: Service
Class - Q
10.000000 12.899854 29.00% 0 1998
Fidelity VIP Growth 12.899854 17.435504 35.16% 129 1999
Portfolio: Service
Class - NQ
10.000000 12.899854 29.00% 0 1998
Fidelity VIP High 10.518622 11.191773 6.40% 0 1999
Income Portfolio:
Service Class - Q
10.000000 10.518622 5.19% 0 1998
Fidelity VIP High 10.518622 11.191773 6.40% 0 1999
Income Portfolio:
Service Class - NQ
10.000000 10.518622 5.19% 0 1998
Fidelity VIP Overseas 12.173522 17.074312 40.26% 0 1999
Portfolio: Service
Class - Q
10.000000 12.173522 21.74% 0 1998
Fidelity VIP Overseas 12.173522 17.074312 40.26% 0 1999
Portfolio: Service
Class - NQ
10.000000 12.173522 21.74% 0 1998
Fidelity VIP II 12.782661 15.623458 22.22% 0 1999
Contrafund(R) Portfolio:
Service Class - Q
10.000000 12.782661 27.83% 0 1998
Fidelity VIP II 12.782661 15.623458 22.22% 0 1999
Contrafund(R)Portfolio:
Service Class - NQ
10.000000 12.782661 27.83% 0 1998
Fidelity VIP III Growth 12.295562 12.611273 2.57% 109 1999
Opportunities
Portfolio: Service
Class - Q
10.000000 12.295562 22.96% 0 1998
Fidelity VIP III Growth 12.295562 12.611273 2.57% 0 1999
Opportunities
Portfolio: Service
Class - NQ
10.000000 12.295562 22.96% 0 1998
</TABLE>
193
<PAGE> 194
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.425504 12.756184 2.66% 1,047 1999
Appreciation Fund - Q
10.000000 12.425504 24.26% 0 1998
NSAT Capital 12.425504 12.756184 2.66% 0 1999
Appreciation Fund - NQ
10.000000 12.425504 24.26% 0 1998
NSAT Government Bond 9.841878 9.461864 -3.36% 139 1999
Fund - Q
10.000000 9.871878 -1.58% 0 1998
NSAT Government Bond 9.841878 9.461864 -3.36% 426 1999
Fund - NQ
10.000000 9.871878 -1.58% 0 1998
NSAT Money Market Fund 10.084183 10.409189 3.22% 0 1999
- - Q*
10.000000 10.084183 0.84% 0 1998
NSAT Money Market Fund 10.084183 10.409189 3.22% 0 1999
- - NQ*
10.000000 10.084183 0.84% 0 1998
NSAT Total Return Fund 11.979709 12.612898 5.29% 3,714 1999
- - Q
10.000000 11.979709 19.80% 0 1998
NSAT Total Return Fund 11.979709 12.612898 5.29% 582 1999
- - NQ
10.000000 11.979709 19.80% 0 1998
NSAT Nationwide 10.665345 10.591234 -0.69% 0 1999
Balanced Fund - Q
10.000000 10.665345 6.65% 0 1998
NSAT Nationwide 10.665345 10.591234 -0.69% 0 1999
Balanced Fund - NQ
10.000000 10.665345 6.65% 0 1998
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999
was 3.82%.
194
<PAGE> 195
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.832846 13.803577 16.65% 0 1999
Income Fund - Q
10.000000 11.832846 18.33% 0 1998
NSAT Nationwide Equity 11.832846 13.803577 16.65% 0 1999
Income Fund - NQ
10.000000 11.832846 18.33% 0 1998
NSAT Nationwide Global 12.198407 14.762540 21.02% 0 1999
50 Fund - Q(1)
10.000000 12.198407 21.98% 0 1998
NSAT Nationwide Global 12.198407 14.762540 21.02% 0 1999
50 Fund - NQ(1)
10.000000 12.198407 21.98% 0 1998
NSAT Nationwide High 10.328064 10.492359 1.59% 0 1999
Income Bond Fund - Q
10.000000 10.328064 3.28% 0 1998
NSAT Nationwide High 10.328064 10.492359 1.59% 327 1999
Income Bond Fund - NQ
10.000000 10.328064 3.28% 0 1998
NSAT Nationwide Mid Cap 12.239965 14.571500 19.05% 2,028 1999
Index Fund-Q(2)
10.000000 12.239965 22.40% 0 1998
NSAT Nationwide Mid Cap 12.239965 14.571500 19.05% 0 1999
Index Fund- NQ(2)
10.000000 12.239965 22.40% 0 1998
NSAT Nationwide Multi 10.234182 10.232296 -0.02% 0 1999
Sector Bond Fund - Q
10.000000 10.234182 2.34% 0 1998
NSAT Nationwide Multi 10.234182 10.232296 -0.02% 0 1999
Sector Bond Fund - NQ
10.000000 10.234182 2.34% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
195
<PAGE> 196
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.290923 102.91% 0 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.290923 102.91% 0 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 12.949678 16.298055 25.86% 0 1999
Cap Value Fund - Q
10.000000 12.949678 29.50% 0 1998
NSAT Nationwide Small 12.949678 16.298055 25.86% 0 1999
Cap Value Fund - NQ
10.000000 12.949678 29.50% 0 1998
NSAT Nationwide Small 12.109325 17.169820 41.79% 0 1999
Company Fund - Q
10.000000 12.109325 21.09% 0 1998
NSAT Nationwide Small 12.109325 17.169820 41.79% 0 1999
Company Fund - NQ
10.000000 12.109325 21.09% 0 1998
NSAT Nationwide 12.654379 23.017640 81.89% 0 1999
Strategic Growth Fund - Q
10.000000 12.654379 26.54% 0 1998
NSAT Nationwide 12.654379 23.017640 81.89% 69 1999
Strategic Growth Fund -
NQ
10.000000 12.654379 26.54% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
196
<PAGE> 197
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 12.872425 14.565469 13.15% 0 1999
Guardian Portfolio - Q
10.000000 12.872425 28.72% 0 1998
Neuberger Berman AMT 12.872425 14.565469 13.15% 0 1999
Guardian Portfolio - NQ
10.000000 12.872425 28.72% 0 1998
Neuberger Berman AMT 14.062035 21.304943 51.51% 1,708 1999
Mid-Cap Growth
Portfolio - Q
10.000000 14.062035 40.62% 0 1998
Neuberger Berman AMT 14.062035 21.304943 51.51% 0 1999
Mid-Cap Growth
Portfolio - NQ
10.000000 14.062035 40.62% 0 1998
Neuberger Berman AMT 11.844579 12.520433 5.71% 0 1999
Partners Portfolio - Q
10.000000 11.844579 18.45% 0 1998
Neuberger Berman AMT 11.844579 12.520433 5.71% 293 1999
Partners Portfolio - NQ
10.000000 11.844579 18.45% 0 1998
Oppenheimer Variable 13.176875 23.819210 80.77% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
10.000000 13.176875 31.77% 0 1998
Oppenheimer Variable 13.176875 23.819210 80.77% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
10.000000 13.176875 31.77% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
197
<PAGE> 198
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 13.230001 18.450922 39.46% 0 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(1)
10.000000 13.230001 32.30% 0 1998
Oppenheimer Variable 13.230001 18.450922 39.46% 0 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
10.000000 13.230001 32.30% 0 1998
Oppenheimer Variable 12.326652 17.770155 19.82% 0 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.000000 12.326652 23.27% 0 1998
Oppenheimer Variable 12.326652 17.770155 19.82% 0 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.000000 12.326652 23.27% 0 1998
The Universal 11.382564 14.498248 27.37% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.000000 11.382564 13.83% 0 1998
The Universal 11.382564 14.498248 27.37% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.000000 11.382564 13.83% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
198
<PAGE> 199
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 12.619986 24.884920 97.19% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
10.000000 12.619986 26.20% 0 1998
Van Eck Worldwide 12.619986 24.884920 97.19% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
10.000000 12.619986 26.20% 0 1998
Van Eck Worldwide 9.907247 11.802251 19.13% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
10.000000 9.907247 -0.93% 0 1998
Van Eck Worldwide 9.907247 11.802251 19.13% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
10.000000 9.907247 -0.93% 0 1998
Van Kampen Life 10.399504 9.893020 -4.87% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.000000 10.399504 4.00% 0 1998
Van Kampen Life 10.399504 9.893020 -4.87% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.000000 10.399504 4.00% 0 1998
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
199
<PAGE> 200
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
200
<PAGE> 201
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.60%)
(VARIABLE ACCOUNT CHARGES OF 1.60% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.499739 14.516288 16.13% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.000000 12.499739 25.00% 0 1998
American Century 12.499739 14.516288 16.13% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.000000 12.499739 25.00% 0 1998
American Century 12.046847 19.446544 61.42% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.000000 12.046847 20.47% 0 1998
American Century 12.046847 19.446544 61.42% 15 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.000000 12.046847 20.47% 0 1998
American Century 11.265587 10.991130 -2.44% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.000000 11.265587 12.66% 0 1998
American Century 11.265587 10.991130 -2.44% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.000000 11.265587 12.66% 0 1998
Dreyfus Investment 10.000000 12.876687 28.77% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.876687 28.77% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 12.768801 16.344103 28.00% 0 1999
Responsible Growth
Fund, Inc. - Q
10.000000 12.768801 27.69% 0 1998
</TABLE>
201
<PAGE> 202
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.768801 16.344103 28.00% 160 1999
Responsible Growth
Fund, Inc. - NQ
10.000000 12.768801 27.69% 0 1998
Dreyfus Stock Index 12.448554 14.773416 18.68% 0 1999
Fund, Inc. - Q
10.000000 12.448554 24.49% 0 1998
Dreyfus Stock Index 12.448554 14.773416 18.68% 1,231 1999
Fund, Inc. - NQ
10.000000 12.448554 24.49% 0 1998
Dreyfus Variable 12.374369 13.571399 9.67% 0 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.000000 12.374369 23.74% 0 1998
Dreyfus Variable 12.374369 13.571399 9.67% 0 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.000000 12.374369 23.74% 0 1998
Federated Insurance 10.000000 9.764075 -2.36% 0 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.764075 -2.36% 0 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.794908 12.332164 4.55% 0 1999
Equity-Income
Portfolio: Service
Class - Q
10.000000 11.794908 17.95% 0 1998
Fidelity VIP 11.794908 12.332164 4.55% 0 1999
Equity-Income
Portfolio: Service
Class - NQ
10.000000 11.794908 17.95% 0 1998
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
202
<PAGE> 203
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.898222 17.424460 35.09% 0 1999
Portfolio: Service
Class - Q
10.000000 12.898222 28.98% 0 1998
Fidelity VIP Growth 12.898222 17.424460 35.09% 1,135 1999
Portfolio: Service
Class - NQ
10.000000 12.898222 28.98% 0 1998
Fidelity VIP High 10.517295 11.184683 6.35% 0 1999
Income Portfolio:
Service Class - Q
10.000000 10.517295 5.17% 0 1998
Fidelity VIP High 10.517295 11.184683 6.35% 0 1999
Income Portfolio:
Service Class - NQ
10.000000 10.517295 5.17% 0 1998
Fidelity VIP Overseas 12.171984 17.063506 40.19% 0 1999
Portfolio: Service
Class - Q
10.000000 12.171984 21.72% 0 1998
Fidelity VIP Overseas 12.171984 17.063506 40.19% 0 1999
Portfolio: Service
Class - NQ
10.000000 12.171984 21.72% 0 1998
Fidelity VIP II 12.781050 15.613554 22.16% 0 1999
Contrafund(R) Portfolio:
Service Class - Q
10.000000 12.781050 27.81% 0 1998
Fidelity VIP II 12.781050 15.613554 22.16% 0 1999
Contrafund(R) Portfolio:
Service Class - NQ
10.000000 12.781050 27.81% 0 1998
Fidelity VIP III Growth 12.294002 12.603267 2.52% 0 1999
Opportunities
Portfolio: Service
Class - Q
10.000000 12.294002 22.94% 0 1998
Fidelity VIP III Growth 12.294002 12.603267 2.52% 0 1999
Opportunities
Portfolio: Service
Class - NQ
10.000000 12.294002 22.94% 0 1998
</TABLE>
203
<PAGE> 204
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.423931 12.748099 2.61% 0 1999
Appreciation Fund - Q
10.000000 12.423931 24.24% 0 1998
NSAT Capital 12.423931 12.748099 2.61% 1,104 1999
Appreciation Fund - NQ
10.000000 12.423931 24.24% 0 1998
NSAT Government Bond 9.840635 9.455873 -3.91% 0 1999
Fund - Q
10.000000 9.840635 -1.59% 0 1998
NSAT Government Bond 9.840635 9.455873 -3.91% 213 1999
Fund - NQ
10.000000 9.840635 -1.59% 0 1998
NSAT Money Market Fund 10.082892 10.402569 3.17% 0 1999
- - Q*
10.000000 10.082892 0.83% 0 1998
NSAT Money Market Fund 10.082892 10.402569 3.17% 0 1999
- - NQ*
10.000000 10.082892 0.83% 0 1998
NSAT Total Return Fund 11.978202 12.604902 5.23% 0 1999
- - Q
10.000000 11.978202 19.78% 0 1998
NSAT Total Return Fund 11.978202 12.604902 5.23% 0 1999
- - NQ
10.000000 11.978202 19.78% 0 1998
NSAT Nationwide 10.663998 10.584515 -0.75% 0 1999
Balanced Fund - Q
10.000000 10.663998 6.64% 0 1998
NSAT Nationwide 10.663998 10.584515 -0.75% 0 1999
Balanced Fund - NQ
10.000000 10.663998 6.64% 0 1998
1997
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999
was 3.77%.
204
<PAGE> 205
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.831350 13.794835 16.60% 0 1999
Income Fund - Q
10.000000 11.831350 18.31% 0 1998
NSAT Nationwide Equity 11.831350 13.794835 16.60% 0 1999
Income Fund - NQ
10.000000 11.831350 18.31% 0 1998
NSAT Nationwide Global 12.196868 14.753188 20.96% 0 1999
50 Fund - Q(1)
10.000000 12.196868 21.97% 0 1998
NSAT Nationwide Global 12.196868 14.753188 20.96% 0 1999
50 Fund - NQ(1)
10.000000 12.196868 21.97% 0 1998
NSAT Nationwide High 10.326759 10.485712 1.54% 0 1999
Income Bond Fund - Q
10.000000 10.326759 6.27% 0 1998
NSAT Nationwide High 10.326759 10.485712 1.54% 131
1999 Income Bond
Fund - NQ
10.000000 10.326759 6.27% 0 1998
NSAT Nationwide Mid Cap 12.238420 14.562264 18.99% 0 1999
Index Fund-Q(2)
10.000000 12.238420 22.38% 0 1998
NSAT Nationwide Mid Cap 12.238420 14.562264 18.99% 0 1999
Index Fund- NQ(2)
10.000000 12.238420 22.38% 0 1998
NSAT Nationwide Multi 10.232888 10.225806 -0.07% 0 1999
Sector Bond Fund - Q
10.000000 10.232888 2.33% 0 1998
NSAT Nationwide Multi 10.232888 10.225806 -0.07% 0 1999
Sector Bond Fund - NQ
10.000000 10.232888 2.33% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
205
<PAGE> 206
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.284124 102.84% 0 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.284124 102.84% 0 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 12.948046 16.287722 25.79% 0 1999
Cap Value Fund - Q
10.000000 12.948046 29.48% 0 1998
NSAT Nationwide Small 12.948046 16.287722 25.79% 68 1999
Cap Value Fund - NQ
10.000000 12.948046 29.48% 0 1998
NSAT Nationwide Small 12.107799 17.158959 41.72% 0 1999
Company Fund - Q
10.000000 12.107799 21.08% 0 1998
NSAT Nationwide Small 12.107799 17.158959 41.72% 0 1999
Company Fund - NQ
10.000000 12.107799 21.08% 0 1998
NSAT Nationwide 12.652786 23.003080 81.80% 0 1999
Strategic Growth Fund -
Q
10.000000 12.652786 26.53% 0 1998
NSAT Nationwide 12.652786 23.003080 81.80% 74 1999
Strategic Growth Fund -
NQ
10.000000 12.652786 26.53% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
206
<PAGE> 207
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 12.870796 14.556239 13.10% 0 1999
Guardian Portfolio - Q
10.000000 12.870796 28.71% 0 1998
Neuberger Berman AMT 12.870796 14.556239 13.10% 0 1999
Guardian Portfolio - NQ
10.000000 12.870796 28.71% 0 1998
Neuberger Berman AMT 14.060269 21.291440 51.43% 0 1999
Mid-Cap Growth
Portfolio - Q
10.000000 14.060269 40.60% 0 1998
Neuberger Berman AMT 14.060269 21.291440 51.43% 0 1999
Mid-Cap Growth
Portfolio - NQ
10.000000 14.060269 40.60% 0 1998
Neuberger Berman AMT 11.843083 12.512486 5.65% 0 1999
Partners Portfolio - Q
10.000000 11.843083 18.43% 0 1998
Neuberger Berman AMT 11.843083 12.512486 5.65% 0 1999
Partners Portfolio - NQ
10.000000 11.843083 18.43% 0 1998
Oppenheimer Variable 13.175212 23.804137 80.67% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
10.000000 13.175212 31.75% 0 1998
Oppenheimer Variable 13.175212 23.804137 80.67% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
10.000000 13.175212 31.75% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
207
<PAGE> 208
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 13.228333 18.439240 39.39% 0 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(1)
10.000000 13.228333 32.28% 0 1998
Oppenheimer Variable 13.228333 18.439240 39.39% 1,078 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
10.000000 13.228333 32.28% 0 1998
Oppenheimer Variable 12.325100 14.760805 19.76% 0 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.000000 12.325100 23.25% 0 1998
Oppenheimer Variable 12.325100 14.760805 19.76% 0 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.000000 12.325100 23.25% 0 1998
The Universal 11.381127 14.489064 27.31% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.000000 11.381127 13.81% 0 1998
The Universal 11.381127 14.489064 27.31% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.000000 11.381127 13.81% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
208
<PAGE> 209
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 12.618390 24.869164 97.09% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
10.000000 12.618390 26.18% 0 1998
Van Eck Worldwide 12.618390 24.869164 97.09% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
10.000000 12.618390 26.18% 0 1998
Van Eck Worldwide 9.905995 11.794757 19.07% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
10.000000 9.905995 -0.94% 0 1998
Van Eck Worldwide 9.905995 11.794757 19.07% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
10.000000 9.905995 -0.94% 0 1998
Van Kampen Life 10.398185 9.886745 -4.92% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.000000 10.398185 3.98% 0 1998
Van Kampen Life 10.398185 9.886745 -4.92% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.000000 10.398185 3.98% 0 1998
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
209
<PAGE> 210
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
210
<PAGE> 211
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.65%)
(VARIABLE ACCOUNT CHARGES OF 1.65% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
FUND VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.498159 14.507084 16.07% 158 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
10.000000 12.498159 24.98% 0 1998
American Century 12.498159 14.507084 16.07% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
10.000000 12.498159 24.98% 0 1998
American Century 12.045328 19.434239 61.34% 160 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
10.000000 12.045328 20.45% 0 1998
American Century 12.045328 19.434239 61.34% 24 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
10.000000 12.045328 20.45% 0 1998
American Century 11.264161 10.984159 -2.49% 113 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
10.000000 11.264161 12.64% 0 1998
American Century 11.264161 10.984159 -2.49% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
10.000000 11.264161 12.64% 0 1998
Dreyfus Investment 10.000000 12.874994 28.75% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.874994 28.75% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 12.767196 16.333747 27.94% 37 1999
Responsible Growth
Fund, Inc. - Q
10.000000 12.767196 27.67% 0 1998
</TABLE>
211
<PAGE> 212
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.767196 16.333747 27.94% 342 1999
Responsible Growth
Fund, Inc. - NQ
10.000000 12.767196 27.67% 0 1998
Dreyfus Stock Index 12.446981 14.764046 18.62% 1,054 1999
Fund, Inc. - Q
10.000000 12.446981 24.47% 0 1998
Dreyfus Stock Index 12.446981 14.764046 18.62% 787 1999
Fund, Inc. - NQ
10.000000 12.446981 24.47% 0 1998
Dreyfus Variable 12.372807 13.562791 9.62% 75 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
10.000000 12.372807 23.73% 0 1998
Dreyfus Variable 12.372807 13.562791 9.62% 76 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
10.000000 12.372807 23.73% 0 1998
Federated Insurance 10.000000 9.760781 -2.39% 0 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.760781 -2.39% 0 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.793413 12.324339 4.50% 312 1999
Equity-Income
Portfolio: Service
Class - Q
10.000000 11.793413 17.93% 0 1998
Fidelity VIP 11.793413 12.324339 4.50% 258 1999
Equity-Income
Portfolio: Service
Class - NQ
10.000000 11.793413 17.93% 0 1998
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
212
<PAGE> 213
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.896602 17.413426 35.02% 678 1999
Portfolio: Service
Class - Q
10.000000 12.896602 28.97% 0 1998
Fidelity VIP Growth 12.896602 17.413426 35.02% 336 1999
Portfolio: Service
Class - NQ
10.000000 12.896602 28.97% 0 1998
Fidelity VIP High 10.515966 11.177582 6.29% 0 1999
Income Portfolio:
Service Class - Q
10.000000 10.515966 5.16% 0 1998
Fidelity VIP High 10.515966 11.177582 6.29% 0 1999
Income Portfolio:
Service Class - NQ
10.000000 10.515966 5.16% 0 1998
Fidelity VIP Overseas 12.170445 17.052691 40.12% 0 1999
Portfolio: Service
Class - Q
10.000000 12.170445 21.70% 0 1998
Fidelity VIP Overseas 12.170445 17.052691 40.12% 17 1999
Portfolio: Service
Class - NQ
10.000000 12.170445 21.70% 0 1998
Fidelity VIP II 12.779434 15.603664 22.10% 357 1999
Contrafund(R) Portfolio:
Service Class - Q
10.000000 12.779434 27.79% 0 1998
Fidelity VIP II 12.779434 15.603664 22.10% 381 1999
Contrafund(R) Portfolio:
Service Class - NQ
10.000000 12.779434 27.79% 0 1998
Fidelity VIP III Growth 12.292450 12.595275 2.46% 307 1999
Opportunities
Portfolio: Service
Class - Q
10.000000 12.292450 22.92% 0 1998
Fidelity VIP III Growth 12.292450 12.595275 2.46% 109 1999
Opportunities
Portfolio: Service
Class - NQ
10.000000 12.292450 22.92% 0 1998
</TABLE>
213
<PAGE> 214
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.422359 12.740010 2.56% 274 1999
Appreciation Fund - Q
10.000000 12.422359 24.22% 0 1998
NSAT Capital 12.422359 12.740010 2.56% 418 1999
Appreciation Fund - NQ
10.000000 12.422359 24.22% 0 1998
NSAT Government Bond 9.839387 9.449856 -3.96% 136 1999
Fund - Q
10.00000 9.839387 -1.61% 0 1998
NSAT Government Bond 9.839387 9.449856 -3.96% 0 1999
Fund - NQ
10.00000 9.839387 -1.61% 0 1998
NSAT Money Market Fund 10.081601 10.395950 3.12% 0 1999
- - Q*
10.000000 10.801601 0.82% 0 1998
NSAT Money Market Fund 10.081601 10.395950 3.12% 0 1999
- - NQ*
10.000000 10.801601 0.82% 0 1998
NSAT Total Return Fund 11.976682 12.596911 5.18% 495 1999
- - Q
10.000000 11.976682 19.77% 0 1998
NSAT Total Return Fund 11.976682 12.596911 5.18% 555 1999
- - NQ
10.000000 11.976682 19.77% 0 1998
NSAT Nationwide 10.662651 10.577794 -0.80% 60 1999
Balanced Fund - Q
10.000000 10.662651 6.63% 0 1998
NSAT Nationwide 10.662651 10.577794 -0.80% 274 1999
Balanced Fund - NQ
10.000000 10.662651 6.63% 0 1998
1997
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999
was 3.72%.
214
<PAGE> 215
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.829585 13.786084 16.54% 0 1999
Income Fund - Q
10.000000 11.829585 18.30% 0 1998
NSAT Nationwide Equity 11.829585 13.786084 16.54% 0 1999
Income Fund - NQ
10.000000 11.829585 18.30% 0 1998
NSAT Nationwide Global 12.195325 14.743816 20.90% 0 1999
50 Fund - Q(1)
10.000000 12.195325 21.95% 0 1998
NSAT Nationwide Global 12.195325 14.743816 20.90% 0 1999
50 Fund - NQ(1)
10.000000 12.195325 21.95% 0 1998
NSAT Nationwide High 10.325454 10.479056 1.49% 0 1999
Income Bond Fund - Q
10.000000 10.325454 3.25% 0 1998
NSAT Nationwide High 10.325454 10.479056 1.49% 321 1999
Income Bond Fund - NQ
10.000000 10.325454 3.25% 0 1998
NSAT Nationwide Mid Cap 12.236869 14.553031 18.93% 0 1999
Index Fund-Q(2)
10.000000 12.236869 22.37% 0 1998
NSAT Nationwide Mid Cap 12.236869 14.553031 18.93% 0 1999
Index Fund- NQ(2)
10.000000 12.236869 22.37% 0 1998
NSAT Nationwide Multi 10.231592 10.219313 -0.12% 0 1999
Sector Bond Fund - Q
10.000000 10.231592 2.32% 0 1998
NSAT Nationwide Multi 10.231592 10.219313 -0.12% 10 1999
Sector Bond Fund - NQ
10.000000 10.231592 2.32% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
215
<PAGE> 216
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.0000000 20.277316 102.77% 0 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.0000000 20.277316 102.77% 0 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 12.946409 16.277398 25.73% 0 1999
Cap Value Fund - Q
10.000000 12.946409 29.46% 0 1998
NSAT Nationwide Small 12.946409 16.277398 25.73% 0 1999
Cap Value Fund - NQ
10.000000 12.946409 29.46% 0 1998
NSAT Nationwide Small 12.106268 17.148084 41.65% 0 1999
Company Fund - Q
10.000000 12.106268 21.06% 0 1998
NSAT Nationwide Small 12.106268 17.148084 41.65% 0 1999
Company Fund - NQ
10.000000 12.106268 21.06% 0 1998
NSAT Nationwide 12.651185 22.988509 81.71% 0 1999
Strategic Growth Fund -
Q
10.000000 12.651185 26.51% 0 1998
NSAT Nationwide 12.651185 22.988509 81.71% 146 1999
Strategic Growth Fund -
NQ
10.000000 12.651185 26.51% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
216
<PAGE> 217
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 12.869170 14.547000 13.04% 0 1999
Guardian Portfolio - Q
10.000000 12.869170 28.69% 0 1998
Neuberger Berman AMT 12.869170 14.547000 13.04% 0 1999
Guardian Portfolio - NQ
10.000000 12.869170 28.69% 0 1998
Neuberger Berman AMT 14.058496 21.277954 51.35% 0 1999
Mid-Cap Growth
Portfolio - Q
10.000000 14.058496 40.58% 0 1998
Neuberger Berman AMT 14.058496 21.277954 51.35% 0 1999
Mid-Cap Growth
Portfolio - NQ
10.000000 14.058496 40.58% 0 1998
Neuberger Berman AMT 11.841583 12.504542 5.60% 0 1999
Partners Portfolio - Q
10.000000 11.841583 18.42% 0 1998
Neuberger Berman AMT 11.841583 12.504542 5.60% 274 1999
Partners Portfolio - NQ
10.000000 11.841583 18.42% 0 1998
Oppenheimer Variable 13.173548 23.789077 80.58% 31 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
10.000000 13.173548 31.74% 0 1998
Oppenheimer Variable 13.173548 23.789077 80.58% 284 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
10.000000 13.173548 31.74% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
217
<PAGE> 218
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 13.226671 18.427568 39.32% 235 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(1)
10.000000 13.226671 32.27% 0 1998
Oppenheimer Variable 13.226671 18.427568 39.32% 205 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
10.000000 13.226671 32.27% 0 1998
Oppenheimer Variable 12.323541 14.751442 19.70% 38 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
10.000000 12.323541 23.24% 0 1998
Oppenheimer Variable 12.323541 14.751442 19.70% 258 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
10.000000 12.323541 23.24% 0 1998
The Universal 11.379681 14.479873 27.24% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
10.000000 11.379681 13.80% 0 1998
The Universal 11.379681 14.479873 27.24% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
10.000000 11.379681 13.80% 0 1998
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
218
<PAGE> 219
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 12.616797 24.853443 96.99% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
10.000000 12.616797 26.17% 0 1998
Van Eck Worldwide 12.616797 24.853443 96.99% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
10.000000 12.616797 26.17% 0 1998
Van Eck Worldwide 9.904737 11.787279 19.01% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
10.000000 9.904737 -0.95% 0 1998
Van Eck Worldwide 9.904737 11.787279 19.01% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
10.000000 9.904737 -0.95% 0 1998
Van Kampen Life 10.396873 9.880471 -4.97% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
10.000000 10.396873 3.97% 0 1998
Van Kampen Life 10.396873 9.880471 -4.97% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
10.000000 10.396873 3.97% 0 1998
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
219
<PAGE> 220
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
220
<PAGE> 221
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.70%)
(VARIABLE ACCOUNT CHARGES OF 1.70% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 10.000000 10.894734 8.95% 48 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
American Century 10.000000 10.894734 8.95% 101 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
American Century 10.000000 15.314929 53.15% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
American Century 10.000000 15.314929 53.15% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
American Century 10.000000 8.780117 -12.20% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
American Century 10.000000 8.780117 -12.20% 49 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
Dreyfus Investment 10.000000 12.873298 28.73% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.873298 28.73% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 10.000000 11.868131 18.68% 256 1999
Responsible Growth
Fund, Inc. - Q
</TABLE>
221
<PAGE> 222
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 10.000000 11.868131 18.68% 19 1999
Responsible Growth
Fund, Inc. - NQ
Dreyfus Stock Index 10.000000 10.794215 7.94% 506 1999
Fund, Inc. - Q
Dreyfus Stock Index 10.000000 10.794215 7.94% 144 1999
Fund, Inc. - NQ
Dreyfus Variable 10.000000 10.184154 1.84% 584 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
Dreyfus Variable 10.000000 10.184154 1.84% 38 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
Federated Insurance 10.000000 9.757496 -2.43% 0 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.757496 -2.43% 0 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 10.000000 9.309967 -6.90% 305 1999
Equity-Income
Portfolio: Service
Class - Q
Fidelity VIP 10.000000 9.309967 -6.90% 46 1999
Equity-Income
Portfolio: Service
Class - NQ
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
222
<PAGE> 223
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 10.000000 12.322268 23.22% 627 1999
Portfolio: Service
Class - Q
Fidelity VIP Growth 10.000000 12.322268 23.22% 150 1999
Portfolio: Service
Class - NQ
Fidelity VIP High 10.000000 9.672582 -3.27% 0 1999
Income Portfolio:
Service Class - Q
Fidelity VIP High 10.000000 9.672582 -3.27% 0 1999
Income Portfolio:
Service Class - NQ
Fidelity VIP Overseas 10.000000 13.058898 30.59% 0 1999
Portfolio: Service
Class - Q
Fidelity VIP Overseas 10.000000 13.058898 30.59% 0 1999
Portfolio: Service
Class - NQ
Fidelity VIP II 10.000000 11.278366 12.78% 89 1999
Contrafund(R)Portfolio:
Service Class - Q
Fidelity VIP II 10.000000 11.278366 12.78% 101 1999
Contrafund(R)Portfolio:
Service Class - NQ
Fidelity VIP III Growth 10.000000 9.869824 -1.30% 122 1999
Opportunities
Portfolio: Service
Class - Q
Fidelity VIP III Growth 10.000000 9.869824 -1.30% 0 1999
Opportunities
Portfolio: Service
Class - NQ
</TABLE>
223
<PAGE> 224
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 10.000000 9.707627 -2.92% 0 1999
Appreciation Fund - Q
NSAT Capital 10.000000 9.707627 -2.92% 42 1999
Appreciation Fund - NQ
NSAT Government Bond 10.000000 9.735132 -2.65% 0 1999
Fund - Q
NSAT Government Bond 10.000000 9.735132 -2.65% 0 1999
Fund - NQ
NSAT Money Market Fund 10.000000 10.209430 2.09% 0 1999
- - Q*
NSAT Money Market Fund 10.000000 10.209430 2.09% 599 1999
- - NQ*
NSAT Total Return Fund 10.000000 9.851989 -1.48% 298 1999
- - Q
NSAT Total Return Fund 10.000000 9.851989 -1.48% 146 1999
- - NQ
NSAT Nationwide 10.000000 9.481422 -5.19% 77 1999
Balanced Fund - Q
NSAT Nationwide 10.000000 9.481422 -5.19% 0 1999
Balanced Fund - NQ
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999
was 3.67%.
224
<PAGE> 225
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 10.000000 10.778958 7.79% 0 1999
Income Fund - Q
NSAT Nationwide Equity 10.000000 10.778958 7.79% 102
1999
Income Fund - NQ
NSAT Nationwide Global 10.000000 11.182210 11.82% 0
1999
50 Fund - Q1
NSAT Nationwide Global 10.000000 11.182210 11.82% 0
1999
50 Fund - NQ1
NSAT Nationwide High 10.000000 9.676620 -3.23% 0 1999
Income Bond Fund - Q
NSAT Nationwide High 10.000000 9.676620 -3.23% 0 1999
Income Bond Fund - NQ
NSAT Nationwide Mid Cap 10.000000 11.447800 14.48% 0
1999
Index Fund-Q2
NSAT Nationwide Mid Cap 10.000000 11.447800 14.48% 0
1999
Index Fund- NQ2
NSAT Nationwide Multi 10.000000 9.897603 -1.02% 0 1999
Sector Bond Fund - Q
NSAT Nationwide Multi 10.000000 9.897603 -1.02% 0 1999
Sector Bond Fund - NQ
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
224
<PAGE> 226
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.270503 102.71% 0 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.270503 102.71% 12 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 10.000000 11.697140 16.97% 0 1999
Cap Value Fund - Q
NSAT Nationwide Small 10.000000 11.697140 16.97% 20 1999
Cap Value Fund - NQ
NSAT Nationwide Small 10.000000 14.124755 41.25% 0 1999
Company Fund - Q
NSAT Nationwide Small 10.000000 14.124755 41.25% 0 1999
Company Fund - NQ
NSAT Nationwide 10.000000 14.658438 46.58% 5 1999
Strategic Growth Fund -
Q
NSAT Nationwide 10.000000 14.658438 46.58% 121 1999
Strategic Growth Fund -
NQ
</TABLE>
1 Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
226
<PAGE> 227
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 10.000000 9.968645 -0.31% 0 1999
Guardian Portfolio - Q
Neuberger Berman AMT 10.000000 9.968645 -0.31% 22 1999
Guardian Portfolio - NQ
Neuberger Berman AMT 10.000000 15.26119 52.64% 19 1999
Mid-Cap Growth
Portfolio - Q
Neuberger Berman AMT 10.000000 15.26119 52.64% 99 1999
Mid-Cap Growth
Portfolio - NQ
Neuberger Berman AMT 10.000000 9.504551 -4.95% 0 1999
Partners Portfolio - Q
Neuberger Berman AMT 10.000000 9.504551 -4.95% 23 1999
Partners Portfolio - NQ
Oppenheimer Variable 10.000000 16.070617 60.71% 429 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 10.000000 16.070617 60.71% 15 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
227
<PAGE> 228
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 10.000000 12.759449 27.59% 485 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(1)
Oppenheimer Variable 10.000000 12.759449 27.59% 118 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
Oppenheimer Variable 10.000000 10.784586 7.85% 0 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
Oppenheimer Variable 10.000000 10.784586 7.85% 0 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
The Universal 10.000000 11.210825 12.11% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
The Universal 10.000000 11.210825 12.11% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
228
<PAGE> 229
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 10.0000000 15.596564 55.97% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
Van Eck Worldwide 10.0000000 15.596564 55.97% 16 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
Van Eck Worldwide 10.000000 9.987144 -0.13% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
Van Eck Worldwide 10.000000 9.987144 -0.13% 23 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
Van Kampen Life 10.000000 9.012565 -9.87% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
Van Kampen Life 10.000000 9.012565 -9.87% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
229
<PAGE> 230
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
230
<PAGE> 231
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.75%)
(VARIABLE ACCOUNT CHARGES OF 1.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 10.000000 10.891060 8.91% 375 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
American Century 10.000000 10.891060 8.91% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
American Century 10.000000 15.309779 53.10% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
American Century 10.000000 15.309779 53.10% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
American Century 10.000000 8.777154 -12.23% 132 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
American Century 10.000000 8.777154 -12.23% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
Dreyfus Investment 10.000000 12.871598 28.72% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.871598 28.72% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 10.000000 11.864126 18.64% 194 1999
Responsible Growth
Fund, Inc. - Q
</TABLE>
231
<PAGE> 232
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 10.000000 11.864126 18.64% 0 1999
Responsible Growth
Fund, Inc. - NQ
Dreyfus Stock Index 10.000000 10.790571 7.91% 820 1999
Fund, Inc. - Q
Dreyfus Stock Index 10.000000 10.790571 7.91% 0 1999
Fund, Inc. - NQ
Dreyfus Variable 10.000000 10.180717 1.81% 192 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
Dreyfus Variable 10.000000 10.180717 1.81% 0 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
Federated Insurance 10.000000 9.754195 -2.46% 0 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.754195 -2.46% 0 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 10.000000 9.306820 -6.93% 0 1999
Equity-Income
Portfolio: Service
Class - Q
Fidelity VIP 10.000000 9.306820 -6.93% 0 1999
Equity-Income
Portfolio: Service
Class - NQ
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
232
<PAGE> 233
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 10.000000 12.318116 23.18% 205 1999
Portfolio: Service
Class - Q
Fidelity VIP Growth 10.000000 12.318116 23.18% 0 1999
Portfolio: Service
Class - NQ
Fidelity VIP High 10.000000 9.669314 -3.31% 0 1999
Income Portfolio:
Service Class - Q
Fidelity VIP High 10.000000 9.669314 -3.31% 0 1999
Income Portfolio:
Service Class - NQ
Fidelity VIP Overseas 10.000000 13.054491 30.54% 0 1999
Portfolio: Service
Class - Q
Fidelity VIP Overseas 10.000000 13.054491 30.54% 0 1999
Portfolio: Service
Class - NQ
Fidelity VIP II 10.000000 11.274564 12.75% 153 1999
Contrafund(R)Portfolio:
Service Class - Q
Fidelity VIP II 10.000000 11.274564 12.75% 118 1999
Contrafund(R)Portfolio:
Service Class - NQ
Fidelity VIP III Growth 10.000000 9.866489 -1.34% 133 1999
Opportunities
Portfolio: Service
Class - Q
Fidelity VIP III Growth 10.000000 9.866489 -1.34% 0 1999
Opportunities
Portfolio: Service
Class - NQ
</TABLE>
233
<PAGE> 234
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 10.000000 9.704353 -2.96% 0 1999
Appreciation Fund - Q
NSAT Capital 10.000000 9.704353 -2.96% 0 1999
Appreciation Fund - NQ
NSAT Government Bond 10.000000 9.731842 -2.68% 235
1999
Fund - Q
NSAT Government Bond 10.000000 9.731842 -2.68% 0
1999
Fund - NQ
NSAT Money Market Fund 10.00000 10.205942 2.06% 0
1999
- - Q*
NSAT Money Market Fund 10.00000 10.205942 2.06% 0
1999
- - NQ*
NSAT Total Return Fund 10.000000 9.848668 -1.51% 0 1999
- - Q
NSAT Total Return Fund 10.000000 9.848668 -1.51% 81 1999
- - NQ
NSAT Nationwide 10.000000 9.478218 -5.22% 0 1999
Balanced Fund - Q
NSAT Nationwide 10.000000 9.478218 -5.22% 0 1999
Balanced Fund - NQ
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999
was 3.62%.
234
<PAGE> 235
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 10.000000 10.775320 7.75% 191 1999
Income Fund - Q
NSAT Nationwide Equity 10.000000 10.775320 7.75% 0 1999
Income Fund - NQ
NSAT Nationwide Global 10.000000 11.178438 11.78% 0 1999
50 Fund - Q(1)
NSAT Nationwide Global 10.000000 11.178438 11.78% 0 1999
50 Fund - NQ(1)
NSAT Nationwide High 10.000000 9.673363 -3.27% 0 1999
Income Bond Fund - Q
NSAT Nationwide High 10.000000 9.673363 -3.27% 0 1999
Income Bond Fund - NQ
NSAT Nationwide Mid Cap 10.000000 11.443936 14.44% 0 1999
Index Fund-Q(2)
NSAT Nationwide Mid Cap 10.000000 11.443936 14.44% 0 1999
Index Fund- NQ(2)
NSAT Nationwide Multi 10.000000 9.894260 -1.06% 0 1999
Sector Bond Fund - Q
NSAT Nationwide Multi 10.000000 9.894260 -1.06% 0 1999
Sector Bond Fund - NQ
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
235
<PAGE> 236
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.263696 102.64% 0 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.263696 102.64% 0 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 10.000000 11.693190 16.93% 0 1999
Cap Value Fund - Q
NSAT Nationwide Small 10.000000 11.693190 16.93% 0 1999
Cap Value Fund - NQ
NSAT Nationwide Small 10.000000 14.120006 41.20% 0 1999
Company Fund - Q
NSAT Nationwide Small 10.000000 14.120006 41.20% 0 1999
Company Fund - NQ
NSAT Nationwide 10.000000 14.653509 46.54% 0 1999
Strategic Growth Fund -
Q
NSAT Nationwide 10.000000 14.653509 46.54% 0 1999
Strategic Growth Fund -
NQ
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
236
<PAGE> 237
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 10.000000 9.965276 -0.35% 0 1999
Guardian Portfolio - Q
Neuberger Berman AMT 10.000000 9.965276 -0.35% 0 1999
Guardian Portfolio - NQ
Neuberger Berman AMT 10.000000 15.258987 52.59% 0 1999
Mid-Cap Growth
Portfolio - Q
Neuberger Berman AMT 10.000000 15.258987 52.59% 0 1999
Mid-Cap Growth
Portfolio - NQ
Neuberger Berman AMT 10.000000 9.501339 -4.99% 0 1999
Partners Portfolio - Q
Neuberger Berman AMT 10.000000 9.501339 -4.99% 0 1999
Partners Portfolio - NQ
Oppenheimer Variable 10.000000 16.065210 60.65% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 10.000000 16.065210 60.65% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
237
<PAGE> 238
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 10.000000 12.755147 27.55% 183 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(1)
Oppenheimer Variable 10.000000 12.755147 27.55% 0 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
Oppenheimer Variable 10.000000 10.780952 7.81% 41 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
Oppenheimer Variable 10.000000 10.780952 7.81% 0 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
The Universal 10.000000 11.207054 12.07% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
The Universal 10.000000 11.207054 12.07% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
238
<PAGE> 239
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 10.000000 15.591319 55.91% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
Van Eck Worldwide 10.000000 15.591319 55.91% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
Van Eck Worldwide 10.000000 9.983781 -0.16% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
Van Eck Worldwide 10.000000 9.983781 -0.16% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
Van Kampen Life 10.000000 9.009528 -9.90% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
Van Kampen Life 10.000000 9.009528 -9.90% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
239
<PAGE> 240
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
240
<PAGE> 241
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.80%)
(VARIABLE ACCOUNT CHARGES OF 1.80% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
American Century 10.000000 10.887381 8.87% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
American Century 10.000000 10.887381 8.87% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
American Century 10.000000 15.304624 53.05% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
American Century 10.000000 15.304624 53.05% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
American Century 10.000000 8.774191 -12.26% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
American Century 10.000000 8.774191 -12.26% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
Dreyfus Investment 10.000000 12.869896 28.70% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.869896 28.70% 0 1999
Portfolios - European
Equity Portfolio - NQ
The Dreyfus Socially 10.000000 11.860138 18.60% 0 1999
Responsible Growth
Fund, Inc. - Q
</TABLE>
241
<PAGE> 242
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 10.000000 11.860138 18.60% 0 1999
Responsible Growth
Fund, Inc. - NQ
Dreyfus Stock Index 10.000000 10.786928 7.87% 23 1999
Fund, Inc. - Q
Dreyfus Stock Index 10.000000 10.786928 7.87% 0 1999
Fund, Inc. - NQ
Dreyfus Variable 10.000000 10.177277 1.77% 0 1999
Investment Fund
- -Appreciation Portfolio
- - Q(1)
Dreyfus Variable 10.000000 10.177277 1.77% 0 1999
Investment Fund
- -Appreciation Portfolio
- - NQ(1)
Federated Insurance 10.000000 9.750926 -2.49% 0 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.750926 -2.49% 0 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 10.000000 9.303685 -6.96% 0 1999
Equity-Income
Portfolio: Service
Class - Q
Fidelity VIP 10.000000 9.303685 -6.96% 0 1999
Equity-Income
Portfolio: Service
Class - NQ
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
242
<PAGE> 243
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 10.000000 12.313961 23.14% 48 1999
Portfolio: Service
Class - Q
Fidelity VIP Growth 10.000000 12.313961 23.14% 0 1999
Portfolio: Service
Class - NQ
Fidelity VIP High 10.000000 9.666051 -3.34% 0 1999
Income Portfolio:
Service Class - Q
Fidelity VIP High 10.000000 9.666051 -3.34% 0 1999
Income Portfolio:
Service Class - NQ
Fidelity VIP Overseas 10.000000 13.050088 30.50% 0 1999
Portfolio: Service
Class - Q
Fidelity VIP Overseas 10.000000 13.050088 30.50% 0 1999
Portfolio: Service
Class - NQ
Fidelity VIP II 10.000000 11.270766 12.71% 0 1999
Contrafund(R)Portfolio:
Service Class - Q
Fidelity VIP II 10.000000 11.270766 12.71% 0 1999
Contrafund(R)Portfolio:
Service Class - NQ
Fidelity VIP III Growth 10.000000 9.863165 -1.37% 0 1999
Opportunities
Portfolio: Service
Class - Q
Fidelity VIP III Growth 10.000000 9.863165 -1.37% 0 1999
Opportunities
Portfolio: Service
Class - NQ
</TABLE>
243
<PAGE> 244
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 10.000000 9.701077 -2.99% 0 1999
Appreciation Fund - Q
NSAT Capital 10.000000 9.701077 -2.99% 0 1999
Appreciation Fund - NQ
NSAT Government Bond 10.000000 9.728561 -2.71% 0
1999
Fund - Q
NSAT Government Bond 10.000000 9.728561 -2.71% 0
1999
Fund - NQ
NSAT Money Market Fund 10.000000 10.202456 2.02% 0
1999
- - Q*
NSAT Money Market Fund 10.000000 10.202456 2.02% 0 1999
- - NQ*
NSAT Total Return Fund 10.000000 9.845340 -1.55% 30 1999
- - Q
NSAT Total Return Fund 10.000000 9.845340 -1.55% 0 1999
- - NQ
NSAT Nationwide 10.000000 9.475017 -5.25% 0 1999
Balanced Fund - Q
NSAT Nationwide 10.000000 9.475017 -5.25% 0 1999
Balanced Fund - NQ
</TABLE>
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999
was 3.57%.
244
<PAGE> 245
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 10.000000 10.771674 7.72% 0 1999
Income Fund - Q
NSAT Nationwide Equity 10.000000 10.771674 7.72% 0 1999
Income Fund - NQ
NSAT Nationwide Global 10.000000 11.174665 11.75% 0 1999
50 Fund - Q(1)
NSAT Nationwide Global 10.000000 11.174665 11.75% 0 1999
50 Fund - NQ(1)
NSAT Nationwide High 10.000000 9.670105 -3.30% 0 1999
Income Bond Fund - Q
NSAT Nationwide High 10.000000 9.670105 -3.30% 0 1999
Income Bond Fund - NQ
NSAT Nationwide Mid Cap 10.000000 11.440076 14.40% 0 1999
Index Fund-Q(2)
NSAT Nationwide Mid Cap 10.000000 11.440076 14.40% 0 1999
Index Fund- NQ(2)
NSAT Nationwide Multi 10.000000 9.890927 -1.09% 0 1999
Sector Bond Fund - Q
NSAT Nationwide Multi 10.000000 9.890927 -1.09% 0 1999
Sector Bond Fund - NQ
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
245
<PAGE> 246
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 20.256891 102.57% 0 1999
Cap Growth Fund - Q(1)
NSAT Nationwide Small 10.000000 20.256891 102.57% 0 1999
Cap Growth Fund - NQ(1)
NSAT Nationwide Small 10.000000 11.689250 16.89% 0 1999
Cap Value Fund - Q
NSAT Nationwide Small 10.000000 11.689250 16.89% 0 1999
Cap Value Fund - NQ
NSAT Nationwide Small 10.000000 14.115240 41.15% 0 1999
Company Fund - Q
NSAT Nationwide Small 10.000000 14.115240 41.15% 0 1999
Company Fund - NQ
NSAT Nationwide 10.000000 14.648576 46.49% 0 1999
Strategic Growth Fund -
Q
NSAT Nationwide 10.000000 14.648576 46.49% 0 1999
Strategic Growth Fund -
NQ
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
246
<PAGE> 247
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 10.000000 9.961920 -0.38% 0 1999
Guardian Portfolio - Q
Neuberger Berman AMT 10.000000 9.961920 -0.38% 0 1999
Guardian Portfolio - NQ
Neuberger Berman AMT 10.000000 15.253837 52.54% 0 1999
Mid-Cap Growth
Portfolio - Q
Neuberger Berman AMT 10.000000 15.253837 52.54% 0 1999
Mid-Cap Growth
Portfolio - NQ
Neuberger Berman AMT 10.000000 9.498133 -5.02% 0 1999
Partners Portfolio - Q
Neuberger Berman AMT 10.000000 9.498133 -5.02% 0 1999
Partners Portfolio - NQ
Oppenheimer Variable 10.000000 16.059802 60.60% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 10.000000 16.059802 60.60% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
247
<PAGE> 248
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 10.000000 12.750840 27.51% 0 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
Q(1)
Oppenheimer Variable 10.000000 12.750840 27.51% 0 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA -
NQ(1)
Oppenheimer Variable 10.000000 10.777319 7.77% 0 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - Q(2)
Oppenheimer Variable 10.000000 10.777319 7.77% 0 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- - NQ(2)
The Universal 10.000000 11.203280 12.03% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(3)
The Universal 10.000000 11.203280 12.03% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(3)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth &
Income Fund.
(3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
248
<PAGE> 249
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION
BEGINNING OF PERIOD VALUE UNITS AT END OF
PERIOD PERIOD
<S> <C> <C> <C> <C> <C>
Van Eck Worldwide 10.0000000 15.586071 55.86% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
Van Eck Worldwide 10.0000000 15.586071 55.86% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
Van Eck Worldwide 10.000000 9.980406 -0.20% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
Van Eck Worldwide 10.000000 9.980406 -0.20% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
Van Kampen Life 10.000000 9.006481 -9.94% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
Van Kampen Life 10.000000 9.006481 -9.94% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
</TABLE>
Contracts were first available October 27, 1997. Therefore, the Condensed
Financial Information reflects the period from October 27, 1997 to December 31,
1997.
The Federated Insurance Series - Federated Quality Bond Fund II and NSAT
Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999.
Therefore, the Condensed Financial Information reflects the period from May 1,
1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account September 27, 1999. Therefore, the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
249
<PAGE> 250
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid
Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund:
Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund:
Class A were added to the variable account effective May 1, 2000. Therefore, no
Condensed Financial Information is available.
