<PAGE>
PROSPECTUS
December 31, 1998
SIMPLE BY DESIGN
CLARITY
VARIABLE ANNUITY
<PAGE>
BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA
DECEMBER 31, 1998
PROFILE OF THE FIXED AND VARIABLE ANNUITY CONTRACT
THIS PROFILE IS A SUMMARY OF SOME OF THE MORE IMPORTANT POINTS THAT YOU
SHOULD CONSIDER AND KNOW BEFORE PURCHASING THE CONTRACT. THE CONTRACT IS MORE
FULLY DESCRIBED IN THE FULL PROSPECTUS WHICH ACCOMPANIES THIS PROFILE. PLEASE
READ THE PROSPECTUS CAREFULLY.
1. THE ANNUITY CONTRACT: The fixed and variable annuity contract offered
by BMA is a contract between you, the owner, and Business Men's Assurance
Company of America (BMA), an insurance company. The Contract provides a means
for investing on a tax-deferred basis in 2 fixed account options of BMA and 17
investment portfolios. The Contract is intended for retirement savings or other
long-term investment purposes and provides for a death benefit and guaranteed
income options.
We offer 2 fixed accounts (Fixed Account I and Fixed Account II). The fixed
accounts offer interest rates that are guaranteed by the insurance company, BMA.
For Fixed Account I, an interest rate is set at the time of each purchase
payment or transfer to Fixed Account I. This initial interest rate is guaranteed
for 12 months. For Fixed Account II, currently there are 3 different guarantee
periods available, each with its own interest rate. If you make a withdrawal or
transfer from Fixed Account II before the end of the guarantee period, it may be
subject to an interest adjustment. While your money is in either fixed account,
the interest your money will earn as well as your principal is guaranteed by
BMA.
This Contract also offers 17 investment portfolios which are listed in
Section 4. The returns on these portfolios are NOT guaranteed. You can lose
money.
You can put money into any or all of the investment portfolios, Fixed
Account I and/or any currently available guarantee period of Fixed Account II.
You can transfer between accounts up to 12 times a year without charge or tax
implications during the accumulation phase and 4 times each year without charge
or tax implications during the income phase. There are certain limitations on
the amounts that can be transferred to or from the Fixed Accounts. After 12
transfers each year during the accumulation period and four transfers each year
during the income phase, the charge is $25 per transfer.
The Contract, like all deferred annuity contracts, has two phases: the
accumulation phase and the income phase. During the accumulation phase, earnings
accumulate on a tax-deferred basis and are taxed as income when you make a
withdrawal. The income phase occurs when you begin receiving regular payments
from your Contract.
The amount of money you are able to accumulate in your account during the
accumulation phase will determine, in part, the amount of income payments during
the income phase.
2. ANNUITY PAYMENTS (THE INCOME PHASE): If you want to receive regular
income from your annuity, you can choose one of four options: (1) monthly
payments for your life (assuming you are the annuitant); (2) monthly payments
for your life, but with payments continuing to the beneficiary for 10 or 20
years (as you select) if you die before the end of the selected period; (3)
monthly payments for your life and for the life of another person (usually your
spouse) selected by you; and (4) monthly payments for your life and for the life
of another person (usually your spouse), but if you and the other person die
before payments have been made for the 10 or 20 year period, payments will
continue for the remainder of the period. Once you begin receiving regular
payments, you cannot change your payment plan.
During the income phase, you can choose from the same investment options you
had during the accumulation phase. You can choose to have payments come from our
general account, the investment portfolios or both. If you choose to have any
part of your payments come from the investment portfolios, the dollar amount of
your payments may go up or down.
3. PURCHASE: You can buy this Contract with $10,000 or more under most
circumstances. You can add $1,000 or more any time you like during the
accumulation phase. Your registered representative can help you fill out the
proper forms.
4. INVESTMENT OPTIONS: You can put your money in any or all of these
investment portfolios which are described in the prospectuses for the funds:
MANAGED BY STANDISH, AYER & WOOD, INC.
Intermediate Fixed Income Portfolio
Mid Cap Equity Portfolio
Money Market Portfolio
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MANAGED BY STANDISH INTERNATIONAL MANAGEMENT COMPANY, L.P.
Global Fixed Income Portfolio
MANAGED BY STEIN ROE & FARNHAM, INCORPORATED
Small Cap Equity Portfolio
Large Cap Growth Portfolio
MANAGED BY DAVID L. BABSON & CO., INC.
Large Cap Value Portfolio
MANAGED BY LORD, ABBETT & CO.
Growth & Income Portfolio
MANAGED BY KORNITZER CAPITAL MANAGEMENT, INC.
Balanced Portfolio
MANAGED BY BBOI WORLDWIDE LLC
Berger/BIAM IPT--International Fund
MANAGED BY AMERICAN CENTURY
INVESTMENT MANAGEMENT, INC.
VP Income & Growth
VP Value
MANAGED BY THE DREYFUS CORPORATION
Dreyfus Stock Index Fund
Dreyfus Variable Investment Fund--Disciplined Stock Portfolio
MANAGED BY INVESCO FUNDS GROUP, INC.
INVESCO VIF--High Yield Portfolio
INVESCO VIF--Industrial Income Portfolio
MANAGED BY LAZARD ASSET MANAGEMENT
Lazard Retirement Small Cap Portfolio
Depending upon market conditions, you can make or lose money in any of these
portfolios.
5. EXPENSES: The Contract has insurance features and investment features,
and there are costs related to each.
Each year BMA deducts a $35 contract maintenance charge from your Contract.
During the accumulation phase, BMA currently waives this charge if the value of
your Contract is at least $100,000. BMA also deducts a coverage charge which is
equal to 1.40% annually of the average daily value of your Contract allocated to
the investment portfolios if your initial purchase payment (excluding amounts
you select to be allocated to Fixed Account II) is less than $75,000 and 1.25%
annually if your initial purchase payment (excluding amounts you select to be
allocated to Fixed Account II) is $75,000 or more. In certain states, the lower
coverage charge (1.25%) may not be available even though your initial purchase
payment was $75,000 or more. Check with your registered representative regarding
availability.
If you take your money out, BMA may assess a withdrawal charge against each
purchase payment withdrawn. The withdrawal charge is equal to:
<TABLE>
<CAPTION>
NUMBER OF COMPLETE YEARS FROM
DATE OF PURCHASE PAYMENT WITHDRAWAL CHARGE
- ----------------------------- -----------------------
<S> <C>
0 7%
1 6%
2 5%
3 4%
4 3%
5 2%
6 1%
7 and thereafter 0%
</TABLE>
Under some circumstances BMA may waive the withdrawal charge.
When you begin receiving regular income payments from your annuity, BMA may
assess a state premium tax charge which ranges from 0% - 4%, depending upon the
state. In South Dakota, BMA will deduct the premium tax charge from each
purchase payment.
There are also daily investment charges which range, on an annual basis,
from .28% to 1.50% of the average daily value of the investment portfolio
depending upon the investment portfolio.
The following charts are designed to help you to understand the expenses in
the Contract. There are two charts below. Chart 1 assumes your initial purchase
payment is less than $75,000. Chart 2 assumes your initial purchase payment is
$75,000 or more (excluding amounts you select to be allocated
2
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to Fixed Account II). The column "Total Annual Expenses" in Chart 1 shows the
total of the $35 contract maintenance charge (which has been converted to a
percentage and is represented as .14% below), the 1.40% coverage charge and the
investment expenses for each investment portfolio. The column "Total Annual
Expenses" in Chart 2 shows the total of the $35 contract maintenance charge
(which has been converted to a percentage and is represented as .04% below), the
1.25% coverage charge and the investment expenses for each investment portfolio.
The next two columns in each chart show you two examples of the expenses, in
dollars, you would pay under a Contract. The examples assume that you invested
$1,000 in a Contract which earns 5% annually and that you withdraw your money:
(1) at the end of year 1, and (2) at the end of year 10. For year 1, the Total
Annual Expenses are assessed as well as the withdrawal charge. For year 10, the
example shows the aggregate of all the annual expenses assessed for the 10
years, but there is no withdrawal charge.
The premium tax is assumed to be 0% in the examples.
3
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CHART 1 (INITIAL PURCHASE PAYMENT IS LESS THAN $75,000)
<TABLE>
<CAPTION>
EXAMPLES:
TOTAL TOTAL ANNUAL
TOTAL ANNUAL ANNUAL TOTAL EXPENSES AT END OF:
INSURANCE PORTFOLIO ANNUAL (1) (2)
CHARGES EXPENSES EXPENSES 1 YEAR 10 YEARS
------------- ----------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C>
MANAGED BY STANDISH, AYER & WOOD, INC.
Intermediate Fixed Income Portfolio....................... 1.54% .80% 2.34% $ 94.25 $ 272.59
Mid Cap Equity Portfolio.................................. 1.54% .90% 2.44% $ 95.27 $ 282.79
Money Market Portfolio.................................... 1.54% .50% 2.04% $ 91.16 $ 241.30
MANAGED BY STANDISH INTERNATIONAL MANAGEMENT COMPANY, L.P.
Global Fixed Income Portfolio............................. 1.54% 1.00% 2.54% $ 96.30 $ 292.89
MANAGED BY STEIN ROE & FARNHAM, INCORPORATED
Small Cap Equity Portfolio................................ 1.54% 1.05% 2.59% $ 96.81 $ 297.89
Large Cap Growth Portfolio................................ 1.54% .90% 2.44% $ 95.27 $ 282.79
MANAGED BY DAVID L. BABSON & CO., INC.
Large Cap Value Portfolio................................. 1.54% .90% 2.44% $ 95.27 $ 282.79
MANAGED BY LORD, ABBETT & CO.
Growth & Income Portfolio................................. 1.54% .90% 2.44% $ 95.27 $ 282.79
MANAGED BY KORNITZER CAPITAL MANAGEMENT, INC.
Balanced Portfolio........................................ 1.54% .90% 2.44% $ 95.27 $ 282.79
MANAGED BY BBOI WORLDWIDE LLC
Berger/BIAM IPT--International Fund....................... 1.54% 1.20% 2.74% $ 98.35 $ 312.75
MANAGED BY AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.
VP Value.................................................. 1.54% 1.00% 2.54% $ 96.30 $ 292.89
VP Income & Growth........................................ 1.54% 0.70% 2.24% $ 93.22 $ 262.27
MANAGED BY THE DREYFUS CORPORATION
Dreyfus Stock Index Fund.................................. 1.54% 0.28% 1.82% $ 88.89 $ 217.69
Dreyfus Variable Investment Fund--Disciplined Stock
Portfolio................................................ 1.54% 1.02% 2.56% $ 96.50 $ 294.89
MANAGED BY INVESCO FUNDS GROUP, INC.
INVESCO VIF--High Yield Portfolio......................... 1.54% 0.87% 2.41% $ 94.97 $ 279.74
INVESCO VIF--Industrial Income Portfolio.................. 1.54% 0.95% 2.49% $ 95.79 $ 287.85
MANAGED BY LAZARD ASSET MANAGEMENT
Lazard Retirement Small Cap Portfolio..................... 1.54% 1.50% 3.04% $ 101.41 $ 341.73
</TABLE>
4
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CHART 2 (INITIAL PURCHASE PAYMENT IS $75,000+, EXCLUDING AMOUNTS YOU SELECT TO
BE ALLOCATED TO FIXED ACCOUNT II)
<TABLE>
<CAPTION>
EXAMPLES:
TOTAL TOTAL ANNUAL
TOTAL ANNUAL ANNUAL TOTAL EXPENSES AT END OF:
INSURANCE PORTFOLIO ANNUAL (1) (2)
CHARGES EXPENSES EXPENSES 1 YEAR 10 YEARS
------------- ----------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C>
MANAGED BY STANDISH, AYER & WOOD, INC.
Intermediate Fixed Income Portfolio........................ 1.29% .80% 2.09% $ 91.71 $ 246.88
Mid Cap Equity Portfolio................................... 1.29% .90% 2.19% $ 92.73 $ 257.35
Money Market Portfolio..................................... 1.29% .50% 1.79% $ 88.61 $ 214.76
MANAGED BY STANDISH INTERNATIONAL MANAGEMENT COMPANY, L.P.
Global Fixed Income Portfolio.............................. 1.29% 1.00% 2.29% $ 93.76 $ 267.71
MANAGED BY STEIN ROE & FARNHAM, INCORPORATED
Small Cap Equity Portfolio................................. 1.29% 1.05% 2.34% $ 94.27 $ 272.85
Large Cap Growth Portfolio................................. 1.29% .90% 2.19% $ 92.73 $ 257.35
MANAGED BY DAVID L. BABSON & CO., INC.
Large Cap Value Portfolio.................................. 1.29% .90% 2.19% $ 92.73 $ 257.35
MANAGED BY LORD, ABBETT & CO.
Growth & Income Portfolio.................................. 1.29% .90% 2.19% $ 92.73 $ 257.35
MANAGED BY KORNITZER CAPITAL MANAGEMENT, INC.
Balanced Portfolio......................................... 1.29% .90% 2.19% $ 92.73 $ 257.35
MANAGED BY BBOI WORLDWIDE LLC
Berger/BIAM IPT--International Fund........................ 1.29% 1.20% 2.49% $ 95.81 $ 288.10
MANAGED BY AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.
VP Value................................................... 1.29% 1.00% 2.29% $ 93.76 $ 267.71
VP Income & Growth......................................... 1.29% 0.70% 1.99% $ 90.68 $ 236.29
MANAGED BY THE DREYFUS CORPORATION
Dreyfus Stock Index Fund................................... 1.29% 0.28% 1.57% $ 86.34 $ 190.54
Dreyfus Variable Investment Fund--Disciplined Stock
Portfolio................................................. 1.29% 1.02% 2.31% $ 93.97 $ 269.77
MANAGED BY INVESCO FUNDS GROUP, INC.
INVESCO VIF--High Yield Portfolio.......................... 1.29% 0.87% 2.16% $ 92.42 $ 254.22
INVESCO VIF--Industrial Income Portfolio................... 1.29% 0.95% 2.24% $ 93.25 $ 262.55
MANAGED BY LAZARD ASSET MANAGEMENT
Lazard Retirement Small Cap Portfolio...................... 1.29% 1.50% 2.79% $ 98.88 $ 317.85
</TABLE>
5
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The expenses in both charts above reflect the expense reimbursements or fee
waivers by the fund managers. For the newly formed Portfolios, the expenses have
been estimated. For more detailed information, see the Fee Table in the
prospectus for the Contract.
6. TAXES: Your earnings are not taxed until you take them out. If you take
money out during the accumulation phase, earnings come out first and are taxed
as income. If you are younger than 59 1/2 when you take money out, you may be
charged a 10% federal tax penalty on the earnings. Payments during the income
phase are considered partly a return of your original investment. That part of
each payment is not taxable as income.
7. ACCESS TO YOUR MONEY: You can take money out at any time during the
accumulation phase. Each purchase payment you add to your Contract has its own 7
year withdrawal charge period. After BMA has had a payment for 7 years, there is
no charge for withdrawals. So long as you have not made another withdrawal
during the same Contract year, a withdrawal of up to 10% of the Contract value
withdrawn is not subject to a withdrawal charge. Withdrawals in excess of that
will be charged a withdrawal charge which ranges from 7% in the first year and
declines to 0% after the seventh year. Of course, you may also have to pay
income tax and a tax penalty on any money you take out.
8. PERFORMANCE: The value of the Contract will vary up or down depending
upon the investment performance of the investment portfolios you choose. BMA may
provide total return figures for each investment portfolio. The total return
figures are based on historical data and are not intended to indicate future
performance. Performance is not shown here because the investment portfolios did
not have a complete calendar year of performance as of December 31, 1997.
9. DEATH BENEFIT: If you die before moving to the income phase, the
beneficiary will receive a death benefit. During the first Contract year, this
death benefit will be the greater of: (1) the payments you have made, less any
money you have taken out and related withdrawal charges; or (2) the value of
your Contract. During the second and subsequent years, the death benefit will be
the greater of: (1) the payments you have made, less any money you have taken
out and related withdrawal charges; or (2) the value of your Contract; or (3)
the highest value of your Contract on the last day of any Contract year prior to
your 81st birthday, plus payments you have made, less withdrawals (and related
withdrawal charges) since that day. If you are 80 or older on the day we issue
your Contract, different rules apply. This death benefit may not be available in
your state in which case the death benefit will be the greater of (1) the
payments you have made, less any money you have taken out and related withdrawal
charges, or (2) the value of your Contract.
10. OTHER INFORMATION:
FREE-LOOK. If you cancel the Contract within 10 days after receiving it (or
whatever period is required in your state), we will send your money back without
assessing a withdrawal charge. You will receive whatever your Contract is worth
on the day we receive your request. This may be more or less than your original
payment. If we are required by law to return your original payment or if you
have purchased the Contract as an Individual Retirement Annuity (IRA), you will
receive back the greater of your purchase payment (less withdrawals), or the
Contract value and we will put your money in the Money Market Portfolio during
the free-look period.
NO PROBATE. In most cases, when you die, the beneficiary will receive the
death benefit without going through probate. However, the avoidance of probate
does not mean that the beneficiary will not have tax liability as a result of
receiving the death benefit.
WHO SHOULD PURCHASE THE CONTRACT? This Contract is designed for people
seeking long-term tax-deferred accumulation of assets, generally for retirement
or other long-term purposes. The tax-deferred feature is most attractive to
people in high federal and state tax brackets. You should not buy this Contract
if you are looking for a short-term investment or if you cannot take the risk of
getting back less money than you put in.
ADDITIONAL FEATURES. The Contract has additional features you might be
interested in. These include:
- You can arrange to have money automatically sent to you (monthly,
quarterly, semi-annually or annually) while your Contract is still in the
accumulation phase. Of course, you'll have to pay
6
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taxes on money you receive. You may also have to pay a penalty tax on money you
receive. We call this feature the Automatic Withdrawal Program.
- If you purchased the Contract under an Individual Retirement Annuity, you
can arrange to have money sent to you periodically to meet certain required
distribution requirements imposed by the Internal Revenue Code. We call this
feature the Minimum Distribution Program.
- You can arrange to have a regular amount of money automatically
transferred from the Money Market Portfolio or Fixed Account I to the investment
portfolios each month, theoretically giving you a lower average cost per unit
over time than a single one time purchase. We call this feature the Dollar Cost
Averaging Option.
- BMA will automatically readjust the money between investment portfolios
periodically to keep the blend you select. We call this feature the Asset
Rebalancing Option.
- Under certain circumstances, BMA will give you your money without a
withdrawal charge if you are in a nursing home, or become totally disabled,
terminally ill, involuntarily unemployed or divorced. Of course, you'll have to
pay taxes on money you receive. You may also have to pay a penalty tax on the
money you receive.
These features may not be available in your state and may not be suitable
for your particular situation.
11. INQUIRIES: If you need more information about buying a Contract,
please contact us at our service center:
BMA
PO Box 412879
Kansas City, Missouri 64141-2879
1-888-262-8131
7
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THE FIXED AND VARIABLE ANNUITY
ISSUED BY
BMA VARIABLE ANNUITY ACCOUNT A
AND
BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA
This prospectus describes the Fixed and Variable Annuity Contract offered by
Business Men's Assurance Company of America (BMA).
The annuity contract has 19 investment choices--2 FIXED ACCOUNT options and
17 INVESTMENT PORTFOLIOS listed below. The 17 INVESTMENT PORTFOLIOS are part of
Investors Mark Series Fund, Inc., Berger Institutional Products Trust, American
Century Variable Portfolios, Inc., Dreyfus Stock Index Fund, Dreyfus Variable
Investment Fund, INVESCO Variable Investment Funds, Inc. and Lazard Retirement
Series, Inc. You can put your money in Fixed Account I, any currently available
GUARANTEE PERIOD of Fixed Account II and/or any of these INVESTMENT PORTFOLIOS.
INVESTORS MARK SERIES FUND, INC.
MANAGED BY STANDISH, AYER & WOOD, INC.
Intermediate Fixed Income Portfolio
Mid Cap Equity Portfolio
Money Market Portfolio
MANAGED BY STANDISH INTERNATIONAL MANAGEMENT COMPANY, L.P.
Global Fixed Income Portfolio
MANAGED BY STEIN ROE & FARNHAM, INCORPORATED
Small Cap Equity Portfolio
Large Cap Growth Portfolio
MANAGED BY DAVID L. BABSON & CO., INC.
Large Cap Value Portfolio
MANAGED BY LORD, ABBETT & CO.
Growth & Income Portfolio
MANAGED BY KORNITZER CAPITAL MANAGEMENT, INC.
Balanced Portfolio
BERGER INSTITUTIONAL PRODUCTS TRUST
MANAGED BY BBOI WORLDWIDE LLC
Berger/BIAM IPT--International Fund
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
MANAGED BY AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.
VP Income & Growth
VP Value
DREYFUS STOCK INDEX FUND
MANAGED BY THE DREYFUS CORPORATION
DREYFUS VARIABLE INVESTMENT FUND
MANAGED BY THE DREYFUS CORPORATION
Disciplined Stock Portfolio
INVESCO VARIABLE INVESTMENT FUNDS, INC.
MANAGED BY INVESCO FUNDS GROUP, INC.
INVESCO VIF--High Yield Portfolio
INVESCO VIF--Industrial Income Portfolio
LAZARD RETIREMENT SERIES, INC.
MANAGED BY LAZARD ASSET MANAGEMENT
Lazard Retirement Small Cap Portfolio
Please read this prospectus before investing and keep it on file for future
reference. It contains important information about the BMA Fixed and Variable
Annuity Contract.
To learn more about the BMA Fixed and Variable Annuity Contract, you can
obtain a copy of the Statement of Additional Information (SAI) dated December
31, 1998. The SAI has been filed with the Securities and Exchange Commission
(SEC) and is legally a part of the prospectus. The SEC has a web site
(http://www.sec.gov) that contains the SAI, material incorporated by reference,
and other information regarding companies that file electronically with the SEC.
The Table of Contents of the SAI is on Page 25 of this prospectus. For a free
copy of the SAI, call us at 1-800-423-9398 or write us at: 9735 Landmark Parkway
Drive, St. Louis, MO 63127-1690.
INVESTMENT IN A VARIABLE ANNUITY CONTRACT IS SUBJECT TO RISKS, INCLUDING THE
POSSIBLE LOSS OF PRINCIPAL. THE CONTRACTS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY FINANCIAL INSTITUTION AND ARE NOT FEDERALLY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD,
OR ANY OTHER AGENCY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
December 31, 1998.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
INDEX OF SPECIAL TERMS.................................................... 1
FEE TABLE................................................................. 2
EXAMPLES.................................................................. 4
1. THE ANNUITY CONTRACT.................................................. 9
2. ANNUITY PAYMENTS (THE INCOME PHASE)................................... 9
3. PURCHASE.............................................................. 11
Purchase Payments.................................................... 11
Allocation of Purchase Payments...................................... 11
Accumulation Units................................................... 11
4. INVESTMENT OPTIONS.................................................... 12
Transfers............................................................ 14
Dollar Cost Averaging Option......................................... 15
Asset Rebalancing Option............................................. 15
Asset Allocation Option.............................................. 16
Voting Rights........................................................ 16
Substitution......................................................... 16
5. EXPENSES.............................................................. 16
Coverage Charge...................................................... 16
Contract Maintenance Charge.......................................... 17
Withdrawal Charge.................................................... 17
Waiver of Withdrawal Charge Benefits................................. 18
Reduction or Elimination of the Withdrawal Charge.................... 18
Premium Taxes........................................................ 18
Transfer Fee......................................................... 18
Income Taxes......................................................... 18
Investment Portfolio Expenses........................................ 18
6. TAXES................................................................. 18
Annuity Contracts in General......................................... 19
Qualified and Non-Qualified Contracts................................ 19
Withdrawals--Non-Qualified Contracts................................. 19
Withdrawals--Qualified Contracts..................................... 19
Death Benefits....................................................... 19
Diversification...................................................... 20
7. ACCESS TO YOUR MONEY.................................................. 20
Automatic Withdrawal Program......................................... 20
Minimum Distribution Program......................................... 21
8. PERFORMANCE........................................................... 21
9. DEATH BENEFIT......................................................... 21
Upon Your Death...................................................... 21
Death of Annuitant................................................... 22
10. OTHER INFORMATION..................................................... 22
BMA.................................................................. 22
Year 2000............................................................ 23
The Separate Account................................................. 23
Distributor.......................................................... 23
Administration....................................................... 23
Ownership............................................................ 23
Beneficiary.......................................................... 24
Assignment........................................................... 24
Suspension of Payments or Transfers.................................. 24
Financial Statements................................................. 24
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION.............. 25
APPENDIX--CONDENSED FINANCIAL INFORMATION................................. 26
</TABLE>
i
<PAGE>
INDEX OF SPECIAL TERMS
We have tried to make this prospectus as readable and understandable for you
as possible. By the very nature of the contract, however, certain technical
words or terms are unavoidable. We have identified the following as some of
these words or terms. They are identified in the text in italic and the page
that is indicated here is where we believe you will find the best explanation
for the word or term.
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Accumulation Phase........................................................ 9
Accumulation Unit......................................................... 11
Annuitant................................................................. 9
Annuity Date.............................................................. 9
Annuity Options........................................................... 9
Annuity Payments.......................................................... 10
Annuity Unit.............................................................. 11
Beneficiary............................................................... 24
Fixed Account............................................................. 9
Guarantee Period.......................................................... 9
Income Phase.............................................................. 9
Investment Portfolios..................................................... 12
Joint Owner............................................................... 23
Non-Qualified............................................................. 19
Owner..................................................................... 23
Purchase Payment.......................................................... 11
Qualified................................................................. 19
Tax Deferral.............................................................. 9
</TABLE>
1
<PAGE>
FEE TABLE
OWNER TRANSACTION EXPENSES
Withdrawal Charge (as a percentage of PURCHASE PAYMENT withdrawn) (See Note
2 below)
<TABLE>
<CAPTION>
NUMBER OF COMPLETE YEARS
FROM DATE OF PURCHASE PAYMENT WITHDRAWAL CHARGE
- ----------------------------- -----------------
<S> <C>
0 7%
1 6%
2 5%
3 4%
4 3%
5 2%
6 1%
7 and thereafter 0%
</TABLE>
Transfer Fee (see Note 3 below)
No charge for first 12 transfers in a contract year during
the ACCUMULATION PHASE and no charge for four transfers in a
contract year during the INCOME PHASE; thereafter, the fee is
$25 per transfer.
CONTRACT MAINTENANCE CHARGE (see Note 4 below) . . . $35 per contract per year
SEPARATE ACCOUNT ANNUAL EXPENSES
(as a percentage of average account value)
<TABLE>
<CAPTION>
IF INITIAL IF INITIAL
PURCHASE PAYMENT PURCHASE PAYMENT
IS LESS THAN IS $75,000
$75,000 OR MORE
-------------------- --------------------
<S> <C> <C>
Mortality and Expense Risk Fees and Account Fees
and Expenses (See Note 5 below).................. 1.40% 1.25%
--- ---
Total Separate Account Annual Expenses............ 1.40% 1.25%
</TABLE>
INVESTMENT PORTFOLIO EXPENSES
(as a percentage of the average daily net assets of an INVESTMENT PORTFOLIO)
<TABLE>
<CAPTION>
TOTAL ANNUAL
OTHER EXPENSES PORTFOLIO EXPENSES
(AFTER EXPENSE (AFTER EXPENSE
REIMBURSEMENT REIMBURSEMENT
12b-1 WITH RESPECT TO WITH RESPECT TO
MANAGEMENT FEES FEES CERTAIN PORTFOLIOS) CERTAIN PORTFOLIOS)
--------------- ----------- ------------------- --------------------
<S> <C> <C> <C> <C>
INVESTORS MARK SERIES FUND, INC.(a)
MANAGED BY STANDISH, AYER & WOOD, INC.
Intermediate Fixed Income Portfolio... .60% -- .20% .80%
Mid Cap Equity Portfolio.............. .80% -- .10% .90%
Money Market Portfolio................ .40% -- .10% .50%
MANAGED BY STANDISH INTERNATIONAL
MANAGEMENT COMPANY, L.P.
Global Fixed Income Portfolio......... .75% -- .25% 1.00%
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
TOTAL ANNUAL
OTHER EXPENSES PORTFOLIO EXPENSES
(AFTER EXPENSE (AFTER EXPENSE
REIMBURSEMENT REIMBURSEMENT
12b-1 WITH RESPECT TO WITH RESPECT TO
MANAGEMENT FEES FEES CERTAIN PORTFOLIOS) CERTAIN PORTFOLIOS)
--------------- ----------- ------------------- --------------------
<S> <C> <C> <C> <C>
MANAGED BY STEIN ROE & FARNHAM,
INCORPORATED
Small Cap Equity Portfolio............ .95% -- .10% 1.05%
Large Cap Growth Portfolio............ .80% -- .10% .90%
MANAGED BY DAVID L. BABSON & CO., INC.
Large Cap Value Portfolio............. .80% -- .10% .90%
MANAGED BY LORD, ABBETT & CO.
Growth & Income Portfolio............. .80% -- .10% .90%
MANAGED BY KORNITZER CAPITAL MANAGEMENT,
INC.
Balanced Portfolio.................... .80% -- .10% .90%
BERGER INSTITUTIONAL PRODUCTS TRUST
MANAGED BY BBOI WORLDWIDE LLC
Berger/BIAM IPT--International
Fund(b)............................. .00% -- 1.20% 1.20%
AMERICAN CENTURY VARIABLE PORTFOLIOS,
INC.
MANAGED BY AMERICAN CENTURY INVESTMENT
MANAGEMENT, INC.
VP Value.............................. 1.00% -- .00% 1.00%
VP Income & Growth.................... .70% -- .00% .70%
DREYFUS STOCK INDEX FUND................ .25% -- .03% .28%
MANAGED BY THE DREYFUS CORPORATION
DREYFUS VARIABLE INVESTMENT FUND
MANAGED BY THE DREYFUS CORPORATION
Disciplined Stock Portfolio........... .75% -- .27% 1.02%
INVESCO VARIABLE INVESTMENT FUNDS, INC.
MANAGED BY INVESCO FUNDS GROUP, INC.
INVESCO VIF--High Yield
Portfolio(c)........................ .60% -- .27% .87%
INVESCO VIF--Industrial Income
Portfolio(c)........................ .75% -- .20% .95%
LAZARD RETIREMENT SERIES, INC.
MANAGED BY LAZARD ASSET MANAGEMENT
Lazard Retirement Small Cap
Portfolio(d)........................ .75% .25% .50% 1.50%
</TABLE>
a. Investors Mark Advisors, LLC has voluntarily agreed to reimburse expenses of
each Portfolio of Investors Mark Series Fund, Inc. through April 30, 1999 so
that the annual expenses do not exceed the amounts set forth above under
"Total Annual Portfolio Expenses" for each Portfolio. Absent such expense
reimbursement, the Total Annual Portfolio Expenses are estimated to be:
2.04% for the
3
<PAGE>
Intermediate Fixed Income Portfolio; 1.10% for the Mid Cap Equity Portfolio;
1.15% for the Money Market Portfolio; 2.04% for the Global Fixed Income
Portfolio; 1.25% for the Small Cap Equity Portfolio; 1.02% for the Large Cap
Growth and Large Cap Value Portfolios; and 1.10% for the Growth & Income and
Balanced Portfolios.
b. BBOI Worldwide LLC has voluntarily agreed to waive its advisory fee and
expects to voluntarily reimburse the Berger/BIAM IPT--International Fund for
additional expenses to the extent that normal operating expenses in any
fiscal year, including the management fee but excluding brokerage
commissions, interest, taxes and extraordinary expenses, of the Fund exceed
1.20% of the Fund's average daily net assets. Absent the voluntary waiver
and reimbursement, the management fee for the Fund would be .90% and its
"Total Annual Portfolio Expenses" are estimated to be 3.83%.
c. Certain expenses are being absorbed voluntarily by the investment adviser.
In the absence of such voluntary expense limitation, the Other Expenses and
Total Operating Expenses for the fiscal period ended December 31, 1997 would
have been .34% and .94% for the INVESCO VIF--High Yield Portfolio and .22%
and .97% for the INVESCO--VIF Industrial Income Portfolio. With respect to
the INVESCO VIF--Industrial Income Portfolio and the INVESCO VIF--High Yield
Portfolio, certain fund expenses are absorbed voluntarily by INVESCO Funds
Group, Inc. (IFG) pursuant to a commitment to limit the INVESCO
VIF--Industrial Income Portfolio's annual expenses to no more than .90% of
the Fund's average net assets prior to July 6, 1998 and to no more than
1.15% of the Fund's average net assets effective July 6, 1998 and to limit
the INVESCO VIF--High Yield Portfolio's annual expenses to no more than .80%
of the Fund's average net assets prior to July 6, 1998 and to no more than
1.05% of the Fund's average net assets effective July 6, 1998. The Fund
reimburses IFG for its costs in providing, or assuring that participating
insurance companies provide, certain services in an amount up to $10,000 per
year (base fee), plus .015% of the net assets of the Fund, plus effective
July 6, 1998, an additional .25% of gross new assets (new sales of shares,
exchanges into the Fund and reinvestment of dividends and capital gains
distributions) of the Fund (incremental fees). IFG may pay all or a portion
of the base fee and the incremental fees to other companies that assist in
providing the services. If the additional 0.25% administrative services fee
had been charged during the fiscal year ended December 31, 1997, the Fund
estimates that "Other Expenses" and "Total Operating Expenses" would have
been .59% and 1.19%, respectively for the INVESCO VIF--High Yield Portfolio
and .47% and 1.22%, respectively for the INVESCO VIF-- Industrial Income
Portfolio.
It should be noted that the Portfolios' actual expenses were lower than the
figures shown because the Portfolios' custodian fees and pricing expenses
were reduced under expense offset arrangements. However, as a result of an
SEC requirement for mutual funds to state their total operating expenses
without crediting any such expense offsetting arrangements, the figures
shown above do not reflect these reductions.
d. The Investment Manager has agreed to voluntarily reimburse expenses to the
extent total Fund expenses exceed, on an annual basis, 1.50% of the Fund's
average net assets. The Investment Manager has advised BMA that it will
continue its voluntary expense reimbursement arrangement through May 1,
1999. Fees and expenses for the Lazard Retirement Small Cap Portfolio are
based on estimates for the current fiscal year. Absent such arrangement, the
expenses for the Lazard Retirement Small Cap Portfolio for the current
fiscal year are estimated to be 13.19%.
EXAMPLES
There are two sets of examples below. The first set assumes your initial
PURCHASE PAYMENT is less than $75,000. The second set assumes your initial
PURCHASE PAYMENT (excluding amounts you select to be allocated to Fixed Account
II) is $75,000 or more.
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on assets and assuming your initial PURCHASE PAYMENT is less than
$75,000:
(a) upon surrender at the end of each time period;
(b) if the contract is not surrendered or is annuitized with a life
ANNUITY OPTION or another ANNUITY OPTION with an ANNUITY PAYMENT
period of more than 5 years.
4
<PAGE>
<TABLE>
<CAPTION>
TIME PERIODS
----------------------
1 YEAR 3 YEARS
---------- ----------
<S> <C> <C>
INVESTORS MARK SERIES FUND, INC.
MANAGED BY STANDISH, AYER & WOOD, INC.
Intermediate Fixed Income Portfolio....................... a) $ 94.25 a) $119.23
b) $ 24.25 b) $ 74.63
Mid Cap Equity Portfolio.................................. a) $ 95.27 a) $122.33
b) $ 25.27 b) $ 77.71
Money Market Portfolio.................................... a) $ 91.16 a) $109.89
b) $ 21.16 b) $ 65.33
MANAGED BY STANDISH INTERNATIONAL
MANAGEMENT COMPANY, L.P.
Global Fixed Income Portfolio............................. a) $ 96.30 a) $125.42
b) $ 26.30 b) $ 80.78
MANAGED BY STEIN ROE & FARNHAM, INCORPORATED
Small Cap Equity Portfolio................................ a) $ 96.81 a) $126.96
b) $ 26.81 b) $ 82.31
Large Cap Growth Portfolio................................ a) $ 95.27 a) $122.33
b) $ 25.27 b) $ 77.71
MANAGED BY DAVID L. BABSON & CO., INC.
Large Cap Value Portfolio................................. a) $ 95.27 a) $122.33
b) $ 25.27 b) $ 77.71
MANAGED BY LORD, ABBETT & CO.
Growth & Income Portfolio................................. a) $ 95.27 a) $122.33
b) $ 25.27 b) $ 77.71
MANAGED BY KORNITZER CAPITAL MANAGEMENT, INC.
Balanced Portfolio........................................ a) $ 95.27 a) $122.33
b) $ 25.27 b) $ 77.71
BERGER INSTITUTIONAL PRODUCTS TRUST
MANAGED BY BBOI WORLDWIDE LLC
Berger/BIAM IPT--International Fund....................... a) $ 98.35 a) $131.56
b) $ 28.35 b) $ 86.90
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
MANAGED BY AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.
VP Value.................................................. a) $ 96.30 a) $125.42
b) $ 26.30 b) $ 80.78
VP Income & Growth........................................ a) $ 93.22 a) $116.13
b) $ 23.22 b) $ 71.54
DREYFUS STOCK INDEX FUND.................................... a) $ 88.89 a) $102.98
b) $ 18.89 b) $ 58.46
MANAGED BY THE DREYFUS CORPORATION
DREYFUS VARIABLE INVESTMENT FUND
MANAGED BY THE DREYFUS CORPORATION
Disciplined Stock Portfolio............................... a) $ 96.50 a) $126.03
b) $ 26.50 b) $ 81.39
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
TIME PERIODS
----------------------
1 YEAR 3 YEARS
---------- ----------
<S> <C> <C>
INVESCO VARIABLE INVESTMENT FUNDS, INC.
MANAGED BY INVESCO FUNDS GROUP, INC.
INVESCO VIF--High Yield Portfolio......................... a) $ 94.97 a) $121.40
b) $ 24.97 b) $ 76.79
INVESCO VIF--Industrial Income Portfolio.................. a) $ 95.79 a) $123.88
b) $ 25.79 b) $ 79.25
LAZARD RETIREMENT SERIES, INC.
MANAGED BY LAZARD ASSET MANAGEMENT
Lazard Retirement Small Cap Portfolio..................... a) $101.41 a) $140.71
b) $ 31.41 b) $ 96.00
</TABLE>
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on assets and assuming your initial PURCHASE PAYMENT is $75,000 or
more:
(a) upon surrender at the end of each time period;
(b) if the contract is not surrendered or is annuitized with a life
ANNUITY OPTION or another ANNUITY OPTION with an ANNUITY PAYMENT
period of more than 5 years.
<TABLE>
<CAPTION>
TIME PERIODS
-----------------
1 YEAR 3 YEARS
------- -------
<S> <C> <C>
INVESTORS MARK SERIES FUND, INC.
MANAGED BY STANDISH, AYER & WOOD, INC.
Intermediate Fixed Income Portfolio.................................................. a) $91.71 a) $111.54
b) $21.71 b) $66.98
Mid Cap Equity Portfolio............................................................. a) $92.73 a) $114.66
b) $22.73 b) $70.08
Money Market Portfolio............................................................... a) $88.61 a) $102.13
b) $18.61 b) $57.62
MANAGED BY STANDISH INTERNATIONAL
MANAGEMENT COMPANY, L.P.
Global Fixed Income Portfolio........................................................ a) $93.76 a) $117.76
b) $23.76 b) $73.17
MANAGED BY STEIN ROE & FARNHAM, INCORPORATED
Small Cap Equity Portfolio........................................................... a) $94.27 a) $119.31
b) $24.27 b) $74.71
Large Cap Growth Portfolio........................................................... a) $92.73 a) $114.66
b) $22.73 b) $70.08
MANAGED BY DAVID L. BABSON & CO., INC.
Large Cap Value Portfolio............................................................ a) $92.73 a) $114.66
b) $22.73 b) $70.08
MANAGED BY LORD, ABBETT & CO.
Growth & Income Portfolio............................................................ a) $92.73 a) $114.66
b) $22.73 b) $70.88
MANAGED BY KORNITZER CAPITAL MANAGEMENT, INC.
Balanced Portfolio................................................................... a) $92.73 a) $114.66
b) $22.73 b) $70.08
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
TIME PERIODS
-----------------
1 YEAR 3 YEARS
------- -------
<S> <C> <C>
BERGER INSTITUTIONAL PRODUCTS TRUST
MANAGED BY BBOI WORLDWIDE LLC
Berger/BIAM IPT--International Fund.................................................. a) $95.81 a) $123.95
b) $25.81 b) $79.32
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
MANAGED BY AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.
VP Value............................................................................. a) $93.76 a) $117.76
b) $23.76 b) $73.17
VP Income & Growth................................................................... a) $90.68 a) $108.41
b) $20.68 b) $63.86
DREYFUS STOCK INDEX FUND............................................................... a) $86.34 a) $95.17
b) $16.34 b) $50.70
MANAGED BY THE DREYFUS CORPORATION
DREYFUS VARIABLE INVESTMENT FUND
MANAGED BY THE DREYFUS CORPORATION
Disciplined Stock Portfolio.......................................................... a) $93.97 a) $118.38
b) $23.97 b) $73.78
INVESCO VARIABLE INVESTMENT FUNDS, INC.
MANAGED BY INVESCO FUNDS GROUP, INC.
INVESCO VIF--High Yield Portfolio.................................................... a) $92.42 a) $113.72
b) $22.42 b) $69.15
INVESCO VIF--Industrial Income Portfolio............................................. a) $93.25 a) $116.21
b) $23.25 b) $71.62
LAZARD RETIREMENT SERIES, INC.
MANAGED BY LAZARD ASSET MANAGEMENT
Lazard Retirement Small Cap Portfolio................................................ a) $98.88 a) $133.16
b) $28.88 b) $88.48
</TABLE>
EXPLANATION OF FEE TABLE AND EXAMPLES
1. The purpose of the Fee Table is to show you the various expenses you will
incur directly or indirectly with the contract. The Fee Table reflects
expenses of the Separate Account as well as the INVESTMENT PORTFOLIOS.
2. After BMA has had a PURCHASE PAYMENT for 7 years, there is no charge by BMA
for a withdrawal of that PURCHASE PAYMENT. You may also have to pay income
tax and a tax penalty on any money you take out. After the first contract
year, the first 10% of contract value withdrawn is not subject to a
withdrawal charge, unless you have already made another withdrawal during
that same contract year.
3. BMA will not charge you the transfer fee even if there are more than 12
transfers in a year during the ACCUMULATION PHASE if the transfer is for the
Dollar Cost Averaging Option, the Asset Allocation Option or Asset
Rebalancing Option.
4. During the ACCUMULATION PHASE, BMA will not charge the contract maintenance
charge if the value of your contract is $100,000 or more. If you make a
complete withdrawal and the contract value is less than $100,000, BMA will
charge the contract maintenance charge. If you own more than one BMA
7
<PAGE>
contract, we will determine the total value of all the contracts. If the
total value of all the contracts is more than $100,000, we will not assess
the contract maintenance charge. During the INCOME PHASE, BMA will deduct
the contract maintenance charge from each ANNUITY PAYMENT on a pro rata
basis.
5. The coverage charge is an aggregate charge which consists of mortality and
expense risk fees and account fees and expenses which is referred to as a
coverage charge throughout this prospectus and in your contract. The amount
of the coverage charge for your contract depends upon the amount of your
initial PURCHASE PAYMENT (excluding amounts you select to be allocated to
Fixed Account II). In certain states, the lower coverage charge (1.25%) may
not be available. Check with your registered representative regarding
availability.
6. Premium taxes are not reflected. Premium taxes may apply depending on the
state where you live.
7. The assumed average contract size is $25,000 in Chart 1 and $100,000 in
Chart 2.
8. THE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
There is an ACCUMULATION UNIT value history contained in the Appendix--Condensed
Financial Information.
8
<PAGE>
1. THE ANNUITY CONTRACT
This prospectus describes the Fixed and Variable Annuity Contract offered by
BMA.
An annuity is a contract between you, the owner, and an insurance company
(in this case BMA), where the insurance company promises to pay you an income,
in the form of ANNUITY PAYMENTS, beginning on a designated date that's at least
one year after we issue your contract. Until you decide to begin receiving
ANNUITY PAYMENTS, your annuity is in the ACCUMULATION PHASE. Once you begin
receiving ANNUITY PAYMENTS, your contract switches to the INCOME PHASE.
The contract benefits from TAX DEFERRAL. TAX DEFERRAL means that you are not
taxed on earnings or appreciation on the assets in your contract until you take
money out of your contract.
The contract is called a variable annuity because you can choose among 17
INVESTMENT PORTFOLIOS and, depending upon market conditions, you can make or
lose money in any of these portfolios. If you select the variable annuity
portion of the contract, the amount of money you are able to accumulate in your
contract during the ACCUMULATION PHASE depends upon the investment performance
of the INVESTMENT PORTFOLIO(S) you select. The amount of the ANNUITY PAYMENTS
you receive during the INCOME PHASE from the variable annuity portion of the
contract also depends upon the investment performance of the INVESTMENT
PORTFOLIOS you select for the INCOME PHASE.
The contract also contains two FIXED ACCOUNT options (Fixed Account I and
Fixed Account II). The FIXED ACCOUNTS offer interest rates that are guaranteed
by BMA. For Fixed Account I, an interest rate is set at the time of each
PURCHASE PAYMENT or transfer to the account. This initial interest rate is
guaranteed for 12 months. Fixed Account II offers different GUARANTEE PERIODS. A
GUARANTEE PERIOD is the time period for which an interest rate is credited in
Fixed Account II. Currently, the following GUARANTEE PERIODS are available:
three years, five years, and seven years. Each PURCHASE PAYMENT or transfer to a
GUARANTEE PERIOD has its own interest rate. BMA guarantees that the interest
credited to the FIXED ACCOUNT options will not be less than 3% per year. If you
make a withdrawal, transfer or if your contract switches to the INCOME PHASE
before the end of the GUARANTEE PERIOD you have selected, an interest adjustment
will be made to the value of your contract. If you select either FIXED ACCOUNT
option, your money will be placed with the other general assets of BMA. If you
select either FIXED ACCOUNT, the amount of money you are able to accumulate in
your contract during the ACCUMULATION PHASE depends upon the total interest
credited to your contract. The amount of the ANNUITY PAYMENTS you receive during
the INCOME PHASE from the general account will remain level for the entire
INCOME PHASE.
As OWNER of the contract, you exercise all rights under the contract. You
can change the OWNER at any time by notifying BMA in writing. You and your
spouse can be named JOINT OWNERS. We have described more information on this in
Section 10-Other Information.
2. ANNUITY PAYMENTS (THE INCOME PHASE)
Under the contract you can receive regular income payments. You can choose
the date on which those payments begin. We call that date the ANNUITY DATE. Your
first ANNUITY PAYMENT will be made one month (or one modal period if you do not
choose monthly payments) after the ANNUITY DATE. Currently, the amount of each
payment is determined ten business days prior to the payment date. You can also
choose among income plans. We call those ANNUITY OPTIONS.
We ask you to choose your ANNUITY DATE when you purchase the contract. You
can change it at any time before the ANNUITY DATE with 30 days notice to us.
Your ANNUITY DATE cannot be any earlier than one year after we issue the
contract. ANNUITY PAYMENTS must begin by the later of the first day of the first
calendar month after the ANNUITANT'S 95th birthday or 10 years after we issue
your contract (or the maximum date allowed under state law). The ANNUITANT is
the person whose life we look to when we make ANNUITY PAYMENTS.
9
<PAGE>
You can select and/or change an ANNUITY OPTION at any time prior to the
ANNUITY DATE (with 30 days notice to us). If you do not choose an ANNUITY
OPTION, we will assume that you selected Option 2 which will provide a life
annuity with 120 monthly payments guaranteed.
At the ANNUITY DATE, you can choose whether payments will come from a FIXED
ACCOUNT, referred to as a fixed annuity, or from the INVESTMENT PORTFOLIO(s)
available, referred to as a variable annuity, or a combination of both. If you
choose to have any portion of your ANNUITY PAYMENTS come from the FIXED
ACCOUNTS, Fixed Accounts I and II will be terminated, and the fixed annuity
payments will be made from BMA's general account. The general account of BMA
contains all of our assets except the assets of the Separate Account and other
separate accounts we may have. The dollar amount of each fixed annuity payment
will be determined in accordance with the annuity tables in the contract. If, on
the ANNUITY DATE, we are using annuity payment tables for similar fixed annuity
contracts which would provide a larger ANNUITY PAYMENT, we will use those
tables. Once determined, the amount of the fixed annuity payment will not
change, unless you transfer a portion of your variable annuity payment into the
fixed annuity. Up to four times each contract year you may increase the amount
of your fixed annuity payment by a transfer of all or portion of your variable
annuity payment to the fixed annuity payment. After the ANNUITY DATE, you may
not transfer any portion of the fixed annuity into the variable annuity payment.
If you choose to have any portion of your ANNUITY PAYMENTS come from the
INVESTMENT PORTFOLIO(s), the dollar amount of the initial variable annuity
payment will depend upon the value of your contract in the INVESTMENT
PORTFOLIO(s) and the annuity tables in the contract. The dollar amount of this
variable annuity payment is not guaranteed to remain level. Each variable
annuity payment will vary depending on the investment performance of the
INVESTMENT PORTFOLIO(s) you have selected. A 3.5% annual investment rate is used
in the annuity tables in the contract. If the actual performance of the
INVESTMENT PORTFOLIO(s) you have selected equals 3.5%, then the variable annuity
payments will remain level. If the actual performance of the INVESTMENT
PORTFOLIO(s) you have selected exceeds the 3.5% assumption, the variable annuity
payments will increase, and conversely, if the performance is less than the
3.5%, the payments will decrease.
ANNUITY PAYMENTS are made monthly unless you have less than $10,000 to apply
toward a payment. In that case, BMA may provide your ANNUITY PAYMENT in a single
lump sum. Likewise, if your ANNUITY PAYMENTS would be or become less than $250 a
month, BMA has the right to change the frequency of payments so that your
ANNUITY PAYMENTS are at least $250.
You can choose one of the following ANNUITY OPTIONS. Any other ANNUITY
OPTION acceptable to us may also be selected. After ANNUITY PAYMENTS begin, you
cannot change the ANNUITY OPTION.
OPTION 1. LIFE ANNUITY. Under this option, we will make an ANNUITY PAYMENT
each month so long as the ANNUITANT is alive. After the ANNUITANT dies, we stop
making ANNUITY PAYMENTS.
OPTION 2. LIFE ANNUITY WITH 10 OR 20 YEARS GUARANTEED. Under this option,
we will make an ANNUITY PAYMENT each month so long as the ANNUITANT is alive.
However, if, when the ANNUITANT dies, we have made ANNUITY PAYMENTS for less
than the selected guaranteed period, we will then continue to make ANNUITY
PAYMENTS for the rest of the guaranteed period to the BENEFICIARY. If the
BENEFICIARY does not want to receive ANNUITY PAYMENTS, he or she can ask us for
a single lump sum.
OPTION 3. JOINT AND LAST SURVIVOR ANNUITY. Under this option, we will make
ANNUITY PAYMENTS each month so long as the ANNUITANT and a second person are
both alive. When either of these people dies, we will continue to make ANNUITY
PAYMENTS, so long as the survivor continues to live. The amount of the ANNUITY
PAYMENTS we will make to the survivor can be equal to 100%, 75% or 50% of the
amount that we would have paid if both were alive.
OPTION 4. JOINT AND LAST SURVIVOR ANNUITY WITH 10 OR 20 YEARS GUARANTEED.
Under this option, we will make ANNUITY PAYMENTS each month so long as the
ANNUITANT and a second person (joint ANNUITANT) are both alive. However, if when
the last ANNUITANT dies, we have made ANNUITY PAYMENTS for less than the
selected guaranteed period, we will then continue to make ANNUITY PAYMENTS for
the rest of
10
<PAGE>
the guaranteed period to the BENEFICIARY. If the BENEFICIARY does not want to
receive ANNUITY PAYMENTS, he or she can ask us for a single lump sum.
3. PURCHASE
PURCHASE PAYMENTS
A PURCHASE PAYMENT is the money you give us to buy the contract. The minimum
we will accept for a NON-QUALIFIED contract is $10,000. If you buy the contract
as part of an Individual Retirement Annuity (IRA), the minimum PURCHASE PAYMENT
we will accept is $2,000. The maximum we accept is $1 million without our prior
approval. You can make additional PURCHASE PAYMENTS of $1,000 or more.
ALLOCATION OF PURCHASE PAYMENTS
When you purchase a contract, we will allocate your PURCHASE PAYMENT to
Fixed Account I, any currently available GUARANTEE PERIOD of Fixed Account II
and/or one or more of the INVESTMENT PORTFOLIOS you have selected. If you make
additional PURCHASE PAYMENTS, we will allocate them in the same way as your
first PURCHASE PAYMENT unless you tell us otherwise. Any allocation to Fixed
Account I or to any GUARANTEE PERIOD of Fixed Account II must be at least
$5,000. Any allocation to an INVESTMENT PORTFOLIO must be at least $1,000.
Allocation percentages need to be in whole numbers. Each allocation must be at
least 1%. BMA reserves the right to decline any PURCHASE PAYMENT.
At its discretion, BMA may refuse PURCHASE PAYMENTS into Fixed Account I or
Fixed Account II if the total value of Fixed Accounts I and II is greater than
or equal to 30% of the value of your contract at the time of the PURCHASE
PAYMENT.
If you change your mind about owning the contract, you can cancel it within
10 days after receiving it, or the period required in your state (free-look
period). When you cancel the contract within this time period, BMA will not
assess a withdrawal charge. You will receive back whatever your contract is
worth on the day we receive your request. In certain states, or if you have
purchased the contract as an IRA, we will refund the greater of your PURCHASE
PAYMENT (less withdrawals) or the value of your contract if you decide to cancel
your contract within 10 days after receiving it (or whatever period is required
in your state). If that is the case, we will put your PURCHASE PAYMENT in the
Money Market Portfolio for 15 days beginning when we allocate your first
PURCHASE PAYMENT. (In some states, the period may be longer.) At the end of that
period, we will re-allocate those funds as you selected.
Once we receive your PURCHASE PAYMENT and the necessary information, we will
issue your contract and allocate your first PURCHASE PAYMENT within 2 business
days. If you do not give us all of the information we need, we will contact you
to get it. If for some reason we are unable to complete this process within 5
business days, we will either send back your money or get your permission to
keep it until we get all of the necessary information. If you add more money to
your contract by making additional PURCHASE PAYMENTS, we will credit these
amounts to your contract within one business day. Our business day closes when
the New York Stock Exchange closes, usually 4:00 P.M. Eastern time.
ACCUMULATION UNITS
The value of the variable annuity portion of your contract will go up or
down depending upon the investment performance of the INVESTMENT PORTFOLIO(S)
you choose. In order to keep track of the value of your contract, we use a unit
of measure we call an ACCUMULATION UNIT. (An ACCUMULATION UNIT works like a
share of a mutual fund.) During the INCOME PHASE of the contract we call the
unit an ANNUITY UNIT.
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Every business day we determine the value of an ACCUMULATION UNIT for each
of the INVESTMENT PORTFOLIOS by multiplying the ACCUMULATION UNIT value for the
previous business day by a factor for the current business day. The factor is
determined by:
1. dividing the value of an INVESTMENT PORTFOLIO share at the end of the
current business day by the value of an INVESTMENT PORTFOLIO share for
the previous business day; and
2. multiplying it by one minus the daily amount of the coverage charge and
any charges for taxes.
The value of an ACCUMULATION UNIT may go up or down from day to day.
When you make a PURCHASE PAYMENT, we credit your contract with ACCUMULATION
UNITS. The number of ACCUMULATION UNITS credited is determined by dividing the
amount of the PURCHASE PAYMENT allocated to an INVESTMENT PORTFOLIO by the value
of the ACCUMULATION UNIT for that INVESTMENT PORTFOLIO.
We calculate the value of an ACCUMULATION UNIT for each INVESTMENT PORTFOLIO
after the New York Stock Exchange closes each day and then credit your contract.
EXAMPLE:
On Monday we receive an additional PURCHASE PAYMENT of $4,000 from you. You
have told us you want this to go to the Balanced Portfolio. When the New York
Stock Exchange closes on that Monday, we determine that the value of an
ACCUMULATION UNIT for the Balanced Portfolio is $12.70. We then divide $4,000 by
$12.70 and credit your contract on Monday night with 314.960630 ACCUMULATION
UNITS for the Balanced Portfolio.
4. INVESTMENT OPTIONS
The contract offers 17 INVESTMENT PORTFOLIOS which are listed below.
Additional INVESTMENT PORTFOLIOS may be available in the future.
YOU SHOULD READ THE PROSPECTUSES FOR THESE FUNDS CAREFULLY BEFORE INVESTING.
COPIES OF THESE PROSPECTUSES ARE ATTACHED TO THIS PROSPECTUS. CERTAIN PORTFOLIOS
CONTAINED IN THE FUND PROPECTUSES MAY NOT BE AVAILABLE WITH YOUR CONTRACT.
INVESTORS MARK SERIES FUND, INC.
Investors Mark Series Fund, Inc. is managed by Investors Mark Advisors, LLC
(Adviser), which is an affiliate of BMA. Investors Mark Series Fund, Inc. is a
mutual fund with multiple portfolios. Each INVESTMENT PORTFOLIO has a different
investment objective. The Adviser has engaged sub-advisers to provide investment
advice for the individual INVESTMENT PORTFOLIOS. The following INVESTMENT
PORTFOLIOS are available under the contract.
STANDISH, AYER & WOOD, INC. IS THE SUB-ADVISER TO THE FOLLOWING PORTFOLIOS:
Intermediate Fixed Income Portfolio
Mid Cap Equity Portfolio
Money Market Portfolio
STANDISH INTERNATIONAL MANAGEMENT COMPANY, L.P. IS THE SUB-ADVISER TO THE
FOLLOWING PORTFOLIO:
Global Fixed Income Portfolio
STEIN ROE & FARNHAM, INCORPORATED IS THE SUB-ADVISER TO THE FOLLOWING
PORTFOLIOS:
Small Cap Equity Portfolio
Large Cap Growth Portfolio
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DAVID L. BABSON & CO., INC. IS THE SUB-ADVISER TO THE FOLLOWING PORTFOLIO:
Large Cap Value Portfolio
LORD, ABBETT & CO. IS THE SUB-ADVISER TO THE FOLLOWING PORTFOLIO:
Growth & Income Portfolio
KORNITZER CAPITAL MANAGEMENT, INC. IS THE SUB-ADVISER TO THE FOLLOWING
PORTFOLIO:
Balanced Portfolio
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger Institutional Products Trust is a mutual fund with multiple
portfolios, one of which, the Berger/ BIAM IPT--International Fund, is managed
by BBOI Worldwide LLC. BBOI Worldwide LLC has retained Bank of Ireland Asset
Management (U.S.) Limited ("BIAM") as subadviser. The following INVESTMENT
PORTFOLIO is available under the contract:
Berger/BIAM IPT--International Fund
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
American Century Variable Portfolios, Inc. is a series of funds managed by
American Century Investment Management, Inc. The following INVESTMENT PORTFOLIOS
are available under the contract:
VP Income & Growth
VP Value (Long-term capital growth with income as a secondary objective)
DREYFUS STOCK INDEX FUND
The Dreyfus Corporation serves as the Fund's manager. Dreyfus has hired its
affiliate, Mellon Equity Associates, to serve as the Fund's index fund manager
and provide day-to-day management of the Fund's investments.
DREYFUS VARIABLE INVESTMENT FUND
The Dreyfus Variable Investment Fund is a mutual fund with multiple
portfolios. The Dreyfus Corporation serves as the Investment Adviser. The
following INVESTMENT PORTFOLIO is available under the contract:
Disciplined Stock Portfolio (seeks to outperform the total return
performance of the Standard and Poor's 500 Composite Stock Price Index)
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO Variable Investment Funds, Inc. is a mutual fund with multiple
portfolios. INVESCO Funds Group, Inc. is the investment adviser. The following
INVESTMENT PORTFOLIOS are available under the contract.
INVESCO VIF--High Yield Portfolio
INVESCO VIF--Industrial Income Portfolio (seeks high current income with
capital appreciation as a secondary goal)
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LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Series, Inc. is a mutual fund with multiple portfolios.
Lazard Asset Management, a division of Lazard Freres & Co. LLC, is the
investment manager for each portfolio. The following INVESTMENT PORTFOLIO is
available under the contract:
Lazard Retirement Small Cap Portfolio
Shares of the portfolios may be offered in connection with certain variable
annuity contracts and variable life insurance policies of various life insurance
companies which may or may not be affiliated with BMA. Certain portfolios may
also be sold directly to qualified plans. The funds do not believe that offering
their shares in this manner will be disadvantageous to you.
TRANSFERS
You can transfer money among the FIXED ACCOUNTS and the 17 INVESTMENT
PORTFOLIOS.
You can make transfers by telephone. If you own the contract with a JOINT
OWNER, unless BMA is instructed otherwise, BMA will accept instructions from
either you or the other OWNER. BMA will use reasonable procedures to confirm
that instructions given us by telephone are genuine. If BMA fails to use such
procedures, we may be liable for any losses due to unauthorized or fraudulent
instructions. BMA tape records all telephone instructions.
TRANSFERS DURING THE ACCUMULATION PHASE
You can make 12 transfers every year during the ACCUMULATION PHASE without
charge. We measure a year from the anniversary of the day we issued your
contract. You can make a transfer to or from the FIXED ACCOUNTS and to or from
any INVESTMENT PORTFOLIO. If you make more than 12 transfers in a year, there is
a transfer fee deducted. The fee is $25 per transfer. The transfer fee is
deducted from the amount which is transferred. The following apply to any
transfer during the ACCUMULATION PHASE:
1. The minimum amount which you can transfer from the INVESTMENT PORTFOLIO,
Fixed Account I or any GUARANTEE PERIOD of Fixed Account II is $250 or your
entire interest in the INVESTMENT PORTFOLIO, Fixed Account I or GUARANTEE PERIOD
of Fixed Account II, if less.
2. We reserve the right to restrict the maximum amount which you can
transfer from any FIXED ACCOUNT option (unless the transfer is from a GUARANTEE
PERIOD of Fixed Account II just expiring) to 25% of the amount in Fixed Account
I or any GUARANTEE PERIOD of Fixed Account II. Currently, BMA is waiving this
restriction. This requirement is waived if the transfer is part of the Dollar
Cost Averaging, Asset Allocation or Asset Rebalancing options. This requirement
is also waived if the transfer is to switch your contract to the INCOME PHASE.
3. At its discretion, BMA may refuse transfers to Fixed Account I or Fixed
Account II if the total value of Fixed Accounts I and II is greater than or
equal to 30% of the value of your contract at the time of the transfer.
4. The minimum amount which must remain in any INVESTMENT PORTFOLIO after a
transfer is $1,000. The minimum amount which must remain in Fixed Account I or
any GUARANTEE PERIOD of Fixed Account II after a transfer is $5,000.
5. You may not make a transfer until after the end of the free-look period.
6. We reserve the right to restrict the number of transfers per year and to
restrict transfers made on consecutive business days.
Your right to make transfers may be modified if we determine, in our sole
opinion, that the exercise of the transfer right by one or more OWNERS is, or
would be, harmful to other OWNERS.
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TRANSFERS DURING THE INCOME PHASE
Each year, during the INCOME PHASE, you can make 4 transfers between the
INVESTMENT PORTFOLIO(s). We measure a year from the anniversary of the day we
issued your contract. You can also make 4 transfers each contract year from the
INVESTMENT PORTFOLIOS to the general account. You may not make a transfer from
the general account to the INVESTMENT PORTFOLIOS. These four transfers each
contract year during the INCOME PHASE are free. If you make more than 4
transfers in a year during the INCOME PHASE, a transfer fee of $25 per transfer
(after the 4 free) will be charged.
DOLLAR COST AVERAGING OPTION
The Dollar Cost Averaging Option allows you to systematically transfer a set
amount each month from the Money Market Portfolio or Fixed Account I to any of
the other INVESTMENT PORTFOLIO(s). By allocating amounts on a regular schedule
as opposed to allocating the total amount at one particular time, you may be
less susceptible to the impact of market fluctuations.
The minimum amount which can be transferred each month is $250. The value of
your contract must be at least $10,000 in order to participate in Dollar Cost
Averaging.
All Dollar Cost Averaging transfers will be made on the 15th day of the
month unless that day is not a business day. If it is not, then the transfer
will be made the next business day. You must participate in Dollar Cost
Averaging for at least 6 months.
If you participate in Dollar Cost Averaging, the transfers made under this
option are not taken into account in determining any transfer fee.
No Automatic Withdrawals and Minimum Distributions will be allowed if you
are participating in Dollar Cost Averaging.
ASSET REBALANCING OPTION
Once your money has been allocated among the INVESTMENT PORTFOLIOS, the
performance of each portfolio may cause your allocation to shift. If the value
of your contract is at least $10,000, you can direct us to automatically
rebalance your contract each quarter to return to your original percentage
allocations by selecting our Asset Rebalancing Option. The program will ignore
any new PURCHASE PAYMENTS or transfers allocated to portfolios other than the
original (or most current) rebalancing portfolio allocations. You may change
your allocations to incorporate new PURCHASE PAYMENTS or transfers by contacting
the BMA Service Center. The minimum period to participate in this program is 6
months. The transfer date will be the 15th of the month unless that day is not a
business day. If it is not, then the transfer will be made the next business
day. The FIXED ACCOUNT options are not part of asset rebalancing. If you
participate in the Asset Rebalancing Option, the transfers made under the
program are not taken into account in determining any transfer fee.
EXAMPLE:
Assume that you want your initial PURCHASE PAYMENT split between 2
INVESTMENT PORTFOLIOS. You want 40% to be in the Intermediate Fixed Income
Portfolio and 60% to be in the Mid Cap Equity Portfolio. Over the next 2 1/2
months the bond market does very well while the stock market performs poorly. At
the end of the first quarter, the Intermediate Fixed Income Portfolio now
represents 50% of your holdings because of its increase in value. If you had
chosen to have your holdings rebalanced quarterly, on the first day of the next
quarter, BMA would sell some of your units in the Intermediate Fixed Income
Portfolio to bring its value back to 40% and use the money to buy more units in
the Mid Cap Equity Portfolio to increase those holdings to 60%.
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ASSET ALLOCATION OPTION
BMA recognizes the value to certain OWNERS of having available, on a
continuous basis, advice for the allocation of your money among the investment
options available under the contract.
Even though BMA may allow the use of approved Asset Allocation Programs, the
contract was not designed for professional market timing organizations. Repeated
patterns of frequent transfers are disruptive to the operations of the
INVESTMENT PORTFOLIOS, and should BMA become aware of such disruptive practices,
we may modify the transfer provisions of the contract.
If you participate in an approved Asset Allocation Program, the transfers
made under the program will not be taken into account in determining any
transfer fee.
VOTING RIGHTS
BMA is the legal owner of the INVESTMENT PORTFOLIO shares. However, BMA
believes that when an INVESTMENT PORTFOLIO solicits proxies in conjunction with
a vote of shareholders, it is required to obtain from you and other OWNERS
instructions as to how to vote those shares. When we receive those instructions,
we will vote all of the shares we own in proportion to those instructions. This
will also include any shares that BMA owns on its own behalf. Should BMA
determine that it is no longer required to comply with the above, we will vote
the shares in our own right.
SUBSTITUTION
BMA may be required to substitute one of the INVESTMENT PORTFOLIOS you have
selected with another portfolio. We would not do this without the prior approval
of the Securities and Exchange Commission. We will give you notice of our intent
to do this.
5. EXPENSES
There are charges and other expenses associated with the contracts that
reduce the return on your investment in the contract. These charges and expenses
are:
COVERAGE CHARGE
Each day, BMA makes a deduction for its coverage charge. BMA does this as
part of its calculation of the value of the ACCUMULATION UNITS and the ANNUITY
UNITS. The amount of the charge depends upon the amount of your initial PURCHASE
PAYMENT (excluding amounts you select to be allocated to Fixed Account II). If
you make additional PURCHASE PAYMENTS to your contract, these amounts are not
used to determine the amount of the coverage charge for your contract. If your
initial PURCHASE PAYMENT is less than $75,000, the coverage charge is equal, on
an annual basis, to 1.40% of the average daily value of the contract invested in
an INVESTMENT PORTFOLIO, after expenses have been deducted. If your initial
PURCHASE PAYMENT is $75,000 or more (excluding amounts you select to be
allocated to Fixed Account II), the coverage charge is equal, on an annual
basis, to 1.25% of the average daily value of the contract invested in an
INVESTMENT PORTFOLIO, after expenses have been deducted. IN CERTAIN STATES, THE
LOWER COVERAGE CHARGE OF 1.25% MAY NOT BE AVAILABLE EVEN THOUGH YOUR INITIAL
PURCHASE PAYMENT WAS $75,000 OR MORE. CHECK WITH YOUR REGISTERED REPRESENTATIVE
REGARDING AVAILABILITY. We reserve the right to increase this charge but it will
never be more than 1.75% of the average daily value of the contract invested in
an INVESTMENT PORTFOLIO, after expenses have been deducted.
This charge is for all the insurance benefits E.G., guarantee of annuity
rates, the death benefit, and for assuming the risk that the current charges
will be insufficient in the future to cover the cost of administering the
contract. This charge is also for administrative expenses, including preparation
of the
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contract, confirmations, annual reports and statements, maintenance of contract
records, personnel costs, legal and accounting fees, filing fees and computer
and system costs and certain distribution expenses.
CONTRACT MAINTENANCE CHARGE
During the ACCUMULATION PHASE, every year on the anniversary of the date
when your contract was issued, BMA deducts $35 from your contract as a contract
maintenance charge. If you make a complete withdrawal from your contract, the
charge will also be deducted. A pro rata portion of the charge will be deducted
if the ANNUITY DATE is other than an anniversary. We reserve the right to
increase this charge but it will never be more than $60 each year. This charge
is for administrative expenses.
BMA will not deduct this charge, if when the deduction is to be made, the
value of your contract is $100,000 or more. If you own more than one BMA
contract, we will determine the total value of all your contracts. If the OWNER
is a non-natural person (E.G., a corporation), we will look to the ANNUITANT to
determine this information. BMA may some time in the future discontinue this
practice and deduct the charge.
After the ANNUITY DATE, the charge will be collected monthly out of each
ANNUITY PAYMENT regardless of the size of the contract.
WITHDRAWAL CHARGE
During the ACCUMULATION PHASE, you can make withdrawals from your contract.
BMA keeps track of each PURCHASE PAYMENT. The first 10% of the contract value
withdrawn (free withdrawal amount) is not subject to the withdrawal charge
(unless you have already made another withdrawal during that same contract
year), if on the day you make your withdrawal, the value of your contract is
$10,000 or more. A withdrawal charge will be assessed against each PURCHASE
PAYMENT withdrawn in excess of the free withdrawal amount and will result in a
reduction in remaining contract value. The withdrawal charge and the free
withdrawal amount are calculated at the time of each withdrawal. The withdrawal
charge compensates us for expenses associated with selling the contract.
The withdrawal charge is:
<TABLE>
<CAPTION>
NUMBER OF COMPLETE YEARS
FROM DATE OF PURCHASE PAYMENT WITHDRAWAL CHARGE
- ----------------------------- -----------------
<S> <C>
0 7%
1 6%
2 5%
3 4%
4 3%
5 2%
6 1%
7 and thereafter 0%
</TABLE>
After BMA has had a PURCHASE PAYMENT for 7 years, there is no charge when
you withdraw that PURCHASE PAYMENT. When the withdrawal is for only part of the
value of your contract, the withdrawal charge is deducted from the remaining
value in your contract.
NOTE: For tax purposes, withdrawals are considered to have come from the
last money into the contract. Thus, for tax purposes, earnings are considered to
come out first.
BMA does not assess the withdrawal charge on any amounts paid out as death
benefits or as ANNUITY PAYMENTS if a life ANNUITY OPTION or another option with
an ANNUITY PAYMENT period of more than 5 years is selected.
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WAIVER OF WITHDRAWAL CHARGE BENEFITS
Under certain circumstances, after the first year, BMA will allow you to
take your money out of the contract without deducting the withdrawal charge: 1)
if you become confined to a long term care facility, nursing facility or
hospital for at least 90 consecutive days; 2) if you become totally disabled; 3)
if you become terminally ill (which means that you are not expected to live more
than 12 months); (4) if you are involuntarily unemployed for at least 90
consecutive days; or (5) if you get divorced. These benefits may not be
available in your state.
REDUCTION OR ELIMINATION OF THE WITHDRAWAL CHARGE
BMA will reduce or eliminate the amount of the withdrawal charge when the
contract is sold under circumstances which reduce its sales expense. Some
examples are: if there is a large group of individuals that will be purchasing
the contract or a prospective purchaser already had a relationship with BMA. BMA
will not deduct a withdrawal charge under a contract issued to an officer,
director or employee of BMA or any of its affiliates.
PREMIUM TAXES
Some states and other governmental entities (E.G., municipalities) charge
premium taxes or similar taxes. BMA is responsible for the payment of these
taxes and will make a deduction from the value of the contract for them. Some of
these taxes are due when the contract is issued, others are due when ANNUITY
PAYMENTS begin. It is BMA's current practice, for all states except South
Dakota, to not charge anyone for these taxes until ANNUITY PAYMENTS begin. In
South Dakota, BMA will assess a charge equal to the amount of the premium tax at
the time each PURCHASE PAYMENT is made.
BMA may some time in the future discontinue this practice and assess the
charge when the tax is due. Premium taxes generally range from 0% to 4%,
depending on the state.
TRANSFER FEE
You can make 12 free transfers every year during the ACCUMULATION PHASE and
4 free transfers every year during the INCOME PHASE. We measure a year from the
day we issue your contract. If you make more than 12 transfers a year during the
ACCUMULATION PHASE or more than 4 transfers a year during the INCOME PHASE, we
will deduct a transfer fee of $25. The transfer fee is for expenses in
connection with transfers.
If the transfer is part of the Dollar Cost Averaging Option, the Asset
Rebalancing Option or an approved Asset Allocation Program, it will not count in
determining the transfer fee.
INCOME TAXES
BMA will deduct from the contract for any income taxes which it incurs
because of the contract. At the present time, we are not making any such
deductions.
INVESTMENT PORTFOLIO EXPENSES
There are deductions from and expenses paid out of the assets of the various
INVESTMENT PORTFOLIOS, which are described in the attached fund prospectuses.
6. TAXES
NOTE: BMA HAS PREPARED THE FOLLOWING INFORMATION ON TAXES AS A GENERAL
DISCUSSION OF THE SUBJECT. IT IS NOT INTENDED AS TAX ADVICE TO ANY INDIVIDUAL.
YOU SHOULD CONSULT YOUR OWN TAX ADVISER ABOUT YOUR OWN CIRCUMSTANCES. BMA HAS
INCLUDED IN THE STATEMENT OF ADDITIONAL INFORMATION AN ADDITIONAL DISCUSSION
REGARDING TAXES.
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ANNUITY CONTRACTS IN GENERAL
Annuity contracts are a means of setting aside money for future needs
usually retirement. Congress recognized how important saving for retirement was
and provided special rules in the Internal Revenue Code (Code) for annuities.
Simply stated, these rules provide that you will not be taxed on the
earnings on the money held in your annuity contract until you take the money
out. This is referred to as TAX DEFERRAL. There are different rules as to how
you will be taxed depending on how you take the money out and the type of
contract (QUALIFIED or NON-QUALIFIED, see the following sections).
You, as the OWNER, will not be taxed on increases in the value of your
contract until a distribution occurs--either as a withdrawal or as ANNUITY
PAYMENTS. When you make a withdrawal you are taxed on the amount of the
withdrawal that is earnings. For ANNUITY PAYMENTS, different rules apply. A
portion of each ANNUITY PAYMENT is treated as a partial return of your PURCHASE
PAYMENTS and will not be taxed. The remaining portion of the ANNUITY PAYMENT
will be treated as ordinary income. How the ANNUITY PAYMENT is divided between
taxable and non-taxable portions depends upon the period over which the ANNUITY
PAYMENTS are expected to be made. ANNUITY PAYMENTS received after you have
received all of your PURCHASE PAYMENTS are fully includible in income.
When a NON-QUALIFIED contract is owned by a non-natural person (E.G.,
corporation or certain other entities other than a trust holding the contract as
an agent for a natural person), the contract will generally not be treated as an
annuity for tax purposes.
QUALIFIED AND NON-QUALIFIED CONTRACTS
If you purchase the contract as an individual and not an Individual
Retirement Annuity (IRA), your contract is referred to as a NON-QUALIFIED
contract.
If you purchase the contract under an IRA, your contract is referred to as a
QUALIFIED contract.
WITHDRAWALS--NON-QUALIFIED CONTRACTS
If you make a withdrawal from your contract, the Code treats such a
withdrawal as first coming from earnings and then from your PURCHASE PAYMENTS.
Such withdrawn earnings are includible in income.
The Code also provides that any amount received under an annuity contract
which is included in income may be subject to a penalty. The amount of the
penalty is equal to 10% of the amount that is includible in income. Some
withdrawals will be exempt from the penalty. They include any amounts: (1) paid
on or after the taxpayer reaches age 59 1/2; (2) paid after you die; (3) paid if
the taxpayer becomes totally disabled (as that term is defined in the Code); (4)
paid in a series of substantially equal payments made annually (or more
frequently) for life or a period not exceeding life expectancy; (5) paid under
an immediate annuity; or (6) which come from PURCHASE PAYMENTS made prior to
August 14, 1982.
WITHDRAWALS--QUALIFIED CONTRACTS
The above information describing the taxation of NON-QUALIFIED contracts
does not apply to QUALIFIED contracts. There are special rules that govern with
respect to QUALIFIED contracts. We have provided a more complete discussion in
the Statement of Additional Information.
DEATH BENEFITS
Any death benefits paid under the contract are taxable to the BENEFICIARY.
The rules governing the taxation of payments from an annuity contract, as
discussed above, generally apply to the payment of death benefits and depend on
whether the death benefits are paid as a lump sum or as ANNUITY PAYMENTS.
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DIVERSIFICATION
The Code provides that the underlying investments for a variable annuity
must satisfy certain diversification requirements in order to be treated as an
annuity contract. BMA believes that the INVESTMENT PORTFOLIOS are being managed
so as to comply with the requirements.
Neither the Code nor the Internal Revenue Service Regulations issued to date
provide guidance as to the circumstances under which you, because of the degree
of control you exercise over the underlying investments, and not BMA, would be
considered the owner of the shares of the INVESTMENT PORTFOLIOS. If you are
considered the owner of the shares, it will result in the loss of the favorable
tax treatment for the contract. It is unknown to what extent under federal tax
law OWNERS are permitted to select INVESTMENT PORTFOLIOS, to make transfers
among the INVESTMENT PORTFOLIOS or the number and type of INVESTMENT PORTFOLIOS
OWNERS may select from without being considered the owner of the shares. If any
guidance is provided which is considered a new position, then the guidance would
generally be applied prospectively. However, if such guidance is considered not
to be a new position, it may be applied retroactively. This would mean that you,
as the OWNER of the contract, could be treated as the OWNER of the INVESTMENT
PORTFOLIOS.
Due to the uncertainty in this area, BMA reserves the right to modify the
contract in an attempt to maintain favorable tax treatment.
7. ACCESS TO YOUR MONEY
You can have access to the money in your contract: (1) by making a
withdrawal (either a partial or a complete withdrawal); (2) by electing to
receive ANNUITY PAYMENTS; or (3) when a death benefit is paid to your
BENEFICIARY. Withdrawals can only be made during the ACCUMULATION PHASE.
When you make a complete withdrawal you will receive the value of the
contract on the day you made the withdrawal less any applicable withdrawal
charge, less any premium tax, less any contract maintenance charge and less an
interest adjustment, if applicable. (See Section 5. Expenses for a discussion of
the charges.)
Unless you instruct BMA otherwise, any partial withdrawal will be made pro
rata from all the INVESTMENT PORTFOLIO(S) and the FIXED ACCOUNT option(s) you
selected. Under most circumstances the amount of any partial withdrawal must be
for at least $1,000 (withdrawals made pursuant to the automatic withdrawal
program and the minimum distribution option are not subject to this minimum).
BMA requires that after a partial withdrawal is made you keep at least $1,000 in
any INVESTMENT PORTFOLIO and $5,000 in Fixed Account I or any GUARANTEE PERIOD
of Fixed Account II. BMA also requires that after a partial withdrawal is made
you keep at least $10,000 in your contract.
We will pay the amount of any withdrawal from the INVESTMENT PORTFOLIOS
within 7 days of a receipt in good order of your request unless the suspension
or deferral of payments or transfers provision is in effect (see Section
10--Other Information--Suspension of Payments or Transfers). Use of a certified
check to purchase the contract may expedite the payment of your withdrawal
request if the withdrawal request is soon after your payment by certified check.
INCOME TAXES AND TAX PENALTIES MAY APPLY TO ANY WITHDRAWAL YOU MAKE.
AUTOMATIC WITHDRAWAL PROGRAM
This program provides periodic payments to you. Each payment must be for at
least $250. You may select to have payments made monthly, quarterly,
semi-annually or annually. The first 10% of the contract value withdrawn is not
subject to the withdrawal charge. A withdrawal charge will be applied to any
withdrawals in excess of the first 10% withdrawn and will result in a reduction
in remaining contract value. If you use this program, you may not make any other
withdrawals (including a partial withdrawal). For a discussion of the withdrawal
charge and the 10% free withdrawal, see Section 5. Expenses.
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All Automatic Withdrawals will be made on the 15th day of the month unless
that day is not a business day. If it is not, then the payment will be the next
business day.
No Minimum Distribution payments and/or Dollar Cost Averaging transfers will
be allowed if you are participating in the Automatic Withdrawal Program.
INCOME TAXES AND TAX PENALTIES MAY APPLY TO AUTOMATIC WITHDRAWALS.
MINIMUM DISTRIBUTION PROGRAM
If you own an IRA contract, you may select the Minimum Distribution Program.
Under this program, BMA will make payments to you from your contract that are
designed to meet the applicable minimum distribution requirements imposed by the
Internal Revenue Code for QUALIFIED plans. BMA will make payments to you
periodically (currently, monthly, quarterly, semi-annually or annually). The
payments will not be subject to the withdrawal charge and will be instead of the
10% single free withdrawal amount each year.
No Dollar Cost Averaging transfers or Automatic Withdrawals will be allowed
if you are participating in the Minimum Distribution Program.
8. PERFORMANCE
BMA may periodically advertise performance of the various INVESTMENT
PORTFOLIOS. BMA will calculate performance by determining the percentage change
in the value of an ACCUMULATION UNIT by dividing the increase (decrease) for
that unit by the value of the ACCUMULATION UNIT at the beginning of the period.
This performance number reflects the deduction of the coverage charge and the
fees and expenses of the INVESTMENT PORTFOLIO. It does not reflect the deduction
of any applicable contract maintenance charge and withdrawal charge. The
deduction of any applicable contract maintenance charge and withdrawal charge
would reduce the percentage increase or make greater any percentage decrease.
Any advertisement will also include average annual total return figures which
will reflect the deduction of the coverage charge, contract maintenance charges,
withdrawal charges as well as the fees and expenses of the INVESTMENT PORTFOLIO.
BMA may also advertise yield information. If it does, it will provide you
with information regarding how yield is calculated.
BMA may, from time to time, include in its advertising and sales materials,
tax deferred compounding charts and other hypothetical illustrations, which may
include comparisons of currently taxable and tax deferred investment programs,
based on selected tax brackets.
More detailed information regarding how performance is calculated is found
in the SAI.
9. DEATH BENEFIT
UPON YOUR DEATH
If you die during the ACCUMULATION PHASE, BMA will pay a death benefit to
your BENEFICIARY (see below). If you have a JOINT OWNER, the death benefit will
be paid when the first of you dies. The surviving JOINT OWNER will be treated as
the BENEFICIARY.
The amount of the death benefit depends on how old you are on the day we
issue your contract. If BMA issues your contract prior to your 80th birthday,
the death benefit will be:
During the first contract year, the greater of: (1) the payments you
have made, less any money you have taken out and related withdrawal charges;
or (2) the value of your contract.
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During the second and subsequent contract years, the greater of: (1) the
payments you have made, less any money you have taken out and related
withdrawal charges; or (2) the value of your contract; or (3) the highest
value of your contract on the last day of any contract year prior to your
81st birthday, plus payments you have made, less withdrawals (and related
withdrawal charges) since that day.
If BMA issues your contract on or after your 80th birthday, the death
benefit will be the greater of: (1) the payments you have made, less any money
you have taken out and related withdrawal charges; or (2) the value of your
contract.
THE ABOVE DEATH BENEFIT MAY NOT BE AVAILABLE IN YOUR STATE, in which case,
the death benefit will be the greater of:
1. Total PURCHASE PAYMENTS, less withdrawals (and any withdrawal charges
paid on the withdrawals);
or
2. The value of your contract at the time the death benefit is to be paid.
The entire death benefit must be paid within 5 years of the date of death
unless the BENEFICIARY elects to have the death benefit payable under an ANNUITY
OPTION. The death benefit payable under an ANNUITY OPTION must be paid over the
BENEFICIARY'S lifetime or for a period not extending beyond the BENEFICIARY'S
life expectancy. Payment must begin within one year of the date of death. If the
BENEFICIARY is the spouse of the OWNER, he/she can continue the contract in
his/her own name and the contract value will become the currently payable death
benefit. Payment to the BENEFICIARY (other than a lump sum) may only be elected
during the 60 day period beginning with the date we receive proof of death. If a
lump sum payment is elected and all the necessary requirements are met, the
payment will be made within 7 days.
If you or any JOINT OWNER dies during the INCOME PHASE (and you are not the
ANNUITANT) any remaining payments under the ANNUITY OPTION chosen will continue
at least as rapidly as under the method of distribution in effect at the time of
death. If you die during the INCOME PHASE, the BENEFICIARY becomes the OWNER.
See Section 6. Taxes--Death Benefits regarding the tax treatment of death
proceeds.
DEATH OF ANNUITANT
If the ANNUITANT, who is not an OWNER or JOINT OWNER, dies during the
ACCUMULATION PHASE, you can name a new ANNUITANT. If no ANNUITANT is named
within 30 days of the death of the ANNUITANT, you will become the ANNUITANT.
However, if the OWNER is a non-natural person (for example, a corporation), then
the death of the ANNUITANT will be treated as the death of the OWNER, and a new
ANNUITANT may not be named.
Upon the death of the ANNUITANT during the INCOME PHASE, the death benefit,
if any, will be as provided for in the ANNUITY OPTION selected. The death
benefits will be paid at least as rapidly as under the method of distribution in
effect at the ANNUITANT'S death.
10. OTHER INFORMATION
BMA
Business Men's Assurance Company of America (BMA), BMA Tower, 700 Karnes
Blvd., Kansas City, Missouri 64108 was incorporated in 1909 under the laws of
the state of Missouri. BMA is licensed in the District of Columbia, Puerto Rico
and all states except New York. BMA is a wholly owned subsidiary of
Assicurazioni Generali S.p.A., which is the largest insurance organization in
Italy.
BMA's obligations arising under the contracts are general obligations of
BMA.
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YEAR 2000
Some of BMA's computer systems were written using two digits rather than
four to define the applicable year. As a result, those computer systems will not
recognize the year 2000 which, if not corrected, could cause disruptions of
operations, including, among other things, an inability to process transactions
or engage in similar normal business activities.
BMA has developed a plan to modify its information technology to be ready
for the year 2000 and has begun converting critical data processing systems. BMA
currently expects the project to be substantially complete by late 1998 which is
prior to any anticipated impact on its operating systems. Based on this plan,
BMA does not believe that the costs to complete such system modifications or
replacement will be material to BMA.
THE SEPARATE ACCOUNT
BMA has established a separate account, BMA Variable Annuity Account A
(Separate Account), to hold the assets that underlie the contracts. The Board of
Directors of BMA adopted a resolution to establish the Separate Account under
Missouri insurance law on September 9, 1996. We have registered the Separate
Account with the Securities and Exchange Commission as a unit investment trust
under the Investment Company Act of 1940.
The assets of the Separate Account are held in BMA's name on behalf of the
Separate Account and legally belong to BMA. However, those assets that underlie
the contracts, are not chargeable with liabilities arising out of any other
business BMA may conduct. All the income, gains and losses (realized or
unrealized) resulting from these assets are credited to or charged against the
contracts and not against any other contracts BMA may issue.
DISTRIBUTOR
Jones & Babson, Inc., acts as the distributor of the contracts. Jones &
Babson, Inc. is a wholly owned subsidiary of BMA.
Commissions will be paid to broker-dealers who sell the contracts.
Broker-dealers will be paid commissions of up to 6% of PURCHASE PAYMENTS.
Sometimes, BMA may enter into an agreement with the broker-dealer to pay the
broker-dealer commissions as a combination of a certain amount of the commission
at the time of sale and a trail commission (which when totaled will not exceed
6% of PURCHASE PAYMENTS). BMA may, from time to time, pay promotional cash
incentives that increase the amount of compensation.
ADMINISTRATION
BMA has hired NAVISYS (formerly GENELCO, Incorporated), 9735 Landmark
Parkway Drive, St. Louis, Missouri to perform certain administrative services
regarding the contracts. The administrative services include issuance of the
contracts and maintenance of contract owners' records.
OWNERSHIP
OWNER. You, as the OWNER of the contract, have all the rights under the
contract. The OWNER is as designated at the time the contract is issued, unless
changed. The BENEFICIARY becomes the OWNER upon the death of the OWNER.
JOINT OWNER. The contract can be owned by JOINT OWNERS. Any JOINT OWNER must
be the spouse of the other OWNER. Upon the death of either JOINT OWNER, the
surviving OWNER will be the primary BENEFICIARY. Any other BENEFICIARY
designation will be treated as a contingent BENEFICIARY unless otherwise
indicated.
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BENEFICIARY
The BENEFICIARY is the person(s) or entity you name to receive any death
benefit. The BENEFICIARY is named at the time the contract is issued unless
changed at a later date. Unless an irrevocable BENEFICIARY has been named, you
can change the BENEFICIARY at any time before you die.
ASSIGNMENT
You can assign the contract at any time during your lifetime. BMA will not
be bound by the assignment until it receives the written notice of the
assignment. BMA will not be liable for any payment or other action we take in
accordance with the contract before we receive notice of the assignment. AN
ASSIGNMENT MAY BE A TAXABLE EVENT.
If the contract is issued pursuant to a QUALIFIED plan, there may be
limitations on your ability to assign the contract.
SUSPENSION OF PAYMENTS OR TRANSFERS
BMA may be required to suspend or postpone payments for withdrawals or
transfers for any period when:
1. the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
2. trading on the New York Stock Exchange is restricted;
3. an emergency exists as a result of which disposal of shares of the
INVESTMENT PORTFOLIOS is not reasonably practicable or BMA cannot
reasonably value the shares of the INVESTMENT PORTFOLIOS;
4. during any other period when the Securities and Exchange Commission, by
order, so permits for the protection of OWNERS.
BMA has reserved the right to defer payment for a withdrawal or transfer
from the FIXED ACCOUNTS for the period permitted by law but not for more than
six months.
FINANCIAL STATEMENTS
The financial statements of BMA and the Separate Account have been included
in the Statement of Additional Information.
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<PAGE>
TABLE OF CONTENTS OF THE
STATEMENT OF ADDITIONAL INFORMATION
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Company................................................................... 3
Experts................................................................... 3
Legal Opinions............................................................ 3
Distributor............................................................... 3
Calculation of Performance Data........................................... 3
Federal Tax Status........................................................ 7
Annuity Provisions........................................................ 13
Mortality and Expense Guarantee........................................... 15
Financial Statements...................................................... 15
</TABLE>
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APPENDIX--CONDENSED FINANCIAL INFORMATION
ACCUMULATION UNIT Value History--The following schedule includes
ACCUMULATION UNIT values for the period from November 24, 1997 [commencement of
operations] to December 31, 1997 and the nine months ended September 30, 1998.
This data has been extracted from the unaudited September 30, 1998 and audited
December 31, 1997 Separate Account's financial statements. This information
should be read in conjunction with the Separate Account's financial statements
and related notes which are included in the Statement of Additional Information.
<TABLE>
<CAPTION>
NINE MONTHS PERIOD ENDED
ENDED 9/30/98 12/31/97
-------------- ------------
<S> <C> <C>
INVESTORS MARK SERIES FUND, INC.:
MONEY MARKET SUB-ACCOUNT
Unit value at beginning of period.............................................. $ 10.3660 $ 10.00
Unit value at end of period.................................................... $ 10.3269 $ 10.3660
No. of ACCUMULATION UNITS Outstanding at end of period......................... 6,020 100
INTERMEDIATE FIXED INCOME SUB-ACCOUNT
Unit value at beginning of period.............................................. $ 10.1029 $ 10.00
Unit value at end of period.................................................... $ 10.5741 $ 10.1029
No. of ACCUMULATION UNITS Outstanding at end of period......................... 17,040 100
GLOBAL FIXED INCOME SUB-ACCOUNT
Unit value at beginning of period.............................................. $ 10.2068 $ 10.00
Unit value at end of period.................................................... $ 10.7412 $ 10.2068
No. of ACCUMULATION UNITS Outstanding at end of period......................... 1,481 100
MID CAP EQUITY SUB-ACCOUNT
Unit value at beginning of period.............................................. $ 10.186 $ 10.00
Unit value at end of period.................................................... $ 9.0396 $ 10.1186
No. of ACCUMULATION UNITS Outstanding at end of period......................... 8,484 543
SMALL CAP EQUITY SUB-ACCOUNT
Unit value at beginning of period.............................................. $ 9.7057 $ 10.00
Unit value at end of period.................................................... $ 7.1366 $ 9.7057
No. of ACCUMULATION UNITS Outstanding at end of period......................... 7,455 507
LARGE CAP GROWTH SUB-ACCOUNT
Unit value at beginning of period.............................................. $ 10.4344 $ 10.00
Unit value at end of period.................................................... $ 10.2003 $ 10.4344
No. of ACCUMULATION UNITS Outstanding at end of period......................... 5,138 345
LARGE CAP VALUE SUB-ACCOUNT
Unit value at beginning of period.............................................. $ 9.6830 $ 10.00
Unit value at end of period.................................................... $ 8.8801 $ 9.6830
No. of ACCUMULATION UNITS Outstanding at end of period......................... 27,499 364
GROWTH & INCOME SUB-ACCOUNT
Unit value at beginning of period.............................................. $ 10.0687 $ 10.00
Unit value at end of period.................................................... $ 9.5331 $ 10.0687
No. of ACCUMULATION UNITS Outstanding at end of period......................... 33,881 353
BALANCED SUB-ACCOUNT
Unit value at beginning of period.............................................. $ 10.0854 $ 10.00
Unit value at end of period.................................................... $ 8.9382 $ 10.0854
No. of ACCUMULATION UNITS Outstanding at end of period......................... 17,783 100
BERGER INSTITUTIONAL PRODUCTS TRUST:
BERGER/BIAM IPT--INTERNATIONAL SUB-ACCOUNT
Unit value at beginning of period.............................................. $ 10.4116 $ 10.00
Unit value at end of period.................................................... $ 9.9878 $ 10.4116
No. of ACCUMULATION UNITS Outstanding at end of period......................... 18,135 482
</TABLE>
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<PAGE>
Detach and mail to:
BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA
9735 LANDMARK PARKWAY DRIVE
ST. LOUIS, MO 63127-1690
<PAGE>
Please send me, at no charge, the Statement of Additional Information
dated December 31, 1998 for the Annuity Contract issued by BMA.
(Please print or type and fill in all information)
- ----------------------------------------------------------------------------
Name
- ----------------------------------------------------------------------------
Address
- ----------------------------------------------------------------------------
City State Zip Code
<PAGE>
BMA-Registered Trademark-
------------------------------
A MEMBER OF THE GENERALI GROUP
Business Men's Assurance Company of America
P.O. Box 412879 / Kansas City, MO 64141
V1013-3 (12/98)
