SECURITIES AND EXCHANGE COMMISSION
Washington DC 20549
FORM N-8B-2
REGISTRATION STATEMENT OF UNIT INVESTMENT TRUST
WHICH ARE CURRENTLY ISSUING SECURITIES
Dated October ____, 1997
Pursuant to Section 8(b) of the Investment Company Act of 1940
TRANSAMERICA LIFE INSURANCE SEPARATE ACCOUNT VUL-1
(Name of Unit Investment Trust)
1150 South Olive StreetLos Angeles, CA 90015
(Address of Principal Office of Registrant)
Issuer of periodic payment plan certificates only for purposes of
information provided herein.
<PAGE>
I I. ORGANIZATION AND GENERAL INFORMATION
1. (a) Furnish name of the trust and the Internal Revenue Service
Employer Identification Number.
The trust is theTransamerica Life Insurance Separate
Account VUL-1 (the "Separate Account VUL-1"). The
Separate Account VUL-1 is a separate investment
account of Transamerica Occidental Life Insurance
Company (the "Company") and has no employer
identification number.
(b) Furnish title of each class or series of securities
issued by the trust.
The securities are individual flexible payment
variable life insurance policies (the "Policies").
2. Furnish name and principal business address and Zip Code and
the Internal Revenue Service Employer Identification Number of
each depositor of the trust.
Transamerica Occidental Life Insurance Company
1150 South Olive Street
Los Angeles, California 90015
FEIN: 95-1060502
3. Furnish name and principal business address and Zip Code and
the Internal Revenue Service Employer Identification Number of
each custodian or trustee of the trust indicating for which
class or series of securities each custodian or trustee is
acting.
The Company will hold in its own custody all of the
securities.
4. Furnish name and principal business address and Zip Code and
the Internal Revenue Service Employer Identification Number of
each principal underwriter currently distributing securities
of the trust.
Distribution of the Policies has not yet commenced. When
distribution commences, the principal underwriter will be:
Transamerica Securities Sales Corporation1150 South Olive
Street Los Angeles, California 90015
FEIN: 95-4044525
5. Furnish name of state or other sovereign power, the laws of
which govern with respect to the organization of the trust.
California.
6. (a) Furnish the dates of execution and termination of
agreement currently in effect under the terms of
which the trust was organized and issued or proposes
to issue securities.
The Separate Account VUL-1 was established under
California law pursuant to a resolution of the Board
of Directors of the Company on June 11, 1996.
(b) Furnish the dates of execution and termination of any
indenture or agreement currently in effect pursuant
to which the proceeds of payments on securities
issued or to be issued by the trust are held by the
custodian or trustee.
None.
7. Furnish in chronological order the following information with
respect to each change of name of the trust since January 1,
1930. If the name has never been changed, so state.
The name of the Separate Account VUL-1 has never been changed.
8. State the date on which the fiscal year of the trust ends.
December 31.
Material Litigation
9. Furnish a description of any pending legal proceedings,
material with respect to the security holders of the trust by
reason of the nature of the claim or the amount thereof, to
which the trust, the depositor, or the principal underwriter
is a party or of which the assets of the trust
are the subject, including the substance of the claims
involved in such proceeding and the title of the proceeding.
Furnish a similar statement with respect to any pending
administrative proceeding commenced by a governmental
authority or any such proceeding or legal proceeding known
to be contemplated by a governmental authority. Include any
proceedings which, although immaterial itself, is
representative of, or one of, a group which in the aggregate
is material.
There are no current or pending legal or administrative
proceedings to which Separate Account VUL-1, the Company, or
principal underwriter, Transamerica Securities Sales
Corporation, is a party, which are material with respect to
the security holders of the Separate Account VUL-1.
II. GENERAL DESCRIPTION OF THE TRUST AND SECURITIES OF THE TRUST
Except for terms defined in this Form N-8B-2, terms used in
this Form N-8B-2 have the same meaning as such terms are
defined in the prospectus (the "Prospectus") filed with the
Securities and Exchange Commission ("SEC") on October 8, 1997
by Transamerica Occidental Life Separate Account VUL-1 as part
of a Registration Statement, as amended from time to time, on
Form S-6 under the Securities Act of 1933 (the "Registration
Statement"), describing the Policies.
General Information Concerning the Securities of the Trust and the
Rights of Holders.
10. Furnish a brief statement with respect to the following
matters for each class or series of securities issued by the
trust.
(a) Whether the securities are of the registered or
bearer type.
The Policies are variable life insurance policies
and, as such, are "registered" in the name of the
owner of a Policy (the "Policy owner") and the
records concerning the Policy owner are maintained by
or on behalf of the Company.
(b) Whether the securities are of the cumulative or
distributive type. The Policies are of the cumulative
type, providing for no distribution of income,
dividends or capital gains except in connection with
a voluntary surrender or partial withdrawal of Policy
value by a Policy owner, or in connection with the
payment of death benefits.
(c) The rights of security holders with respect to withdrawal
or redemption.
A Policy may be surrendered at any time, subject to
the possible imposition of a
surrender charge. See Item 13(a) "Surrender Charge"
and Item 17(a) "Surrender."
After the first Policy year, partial withdrawals in a
minimum amount of $500 may be made from the Policy
value at any time upon written request filed at the
Company's Variable Life Service Center. A transaction
fee, which is the smaller of 2% of the amount
withdrawn or $25.00, will be assessed in all cases. A
partial withdrawal charge may also be deducted. The
partial withdrawal charge will not exceed the
surrender charge, and the outstanding surrender
charge will be reduced by the amount of the partial
withdrawal charges. See Item 13(a) "Charges on
Partial Withdrawal" and Item 17(a) "Partial
Withdrawal."
(d) The rights of security holders with respect to
conversion, transfer, partial-redemption, and similar
matters.
TRANSFER - The Policies permit net payments to be
allocated either to the Fixed Account, which is part
of the Company's General Account, or to the
sub-accounts of the Separate Account VUL-1. Each
sub-account invests exclusively in a corresponding
mutual fund investment portfolio ("portfolio").
Subject to the consent of the Company, the Policy
owner may transfer amounts among all of the
sub-accounts and between the sub-accounts and the
Fixed Account, subject to certain restrictions, but
at no time may have allocations in more than seven
sub-accounts.
CONVERSION PRIVILEGE - During the first 24 Policy
months after the date of issue, subject to certain
restrictions, the Policy owner may convert the Policy
to a fixed Policy by transferring all Policy value in
the sub-accounts to the Fixed Account and by
simultaneously changing the allocation of future
payments to the Fixed Account. A similar conversion
privilege is in effect for 24 Policy months after the
effective date of an increase in face amount, under
which the Policy owner may convert by transferring
all of the Policy value in the sub-accounts to the
Fixed Account and by simultaneously changing the
allocation of all or part of future payments to the
Fixed Account.
FREE LOOK PRIVILEGE - The Policy provides for an
initial Free Look Period. The Policy owner generally
may cancel the Policy by the later of (a) 45 days
after the application for the Policy is signed, or
(b) 10 days after the Policy owner receives the
Policy.Policy owner (The 10 day period may be longer
depending upon state law.) Upon returning the Policy,
the Policy owner generally will be sent within 7 days
a refund equal to the sum of (1) the difference
between any payments made, including fees or other
charges, and any amounts allocated to the Separate
Account VUL-1; (2) the value of the amounts allocated
to the Separate Account VUL-1 on the date the
returned Policy is received at the Company's Variable
Life Service Center; and (3) any fees or charges
imposed on the amounts allocated to the Separate
Account VUL-1. Where required by state insurance
laws, the Company will refund the entire premiums
paid, in lieu of the above. The refund of any premium
paid by check, however, may be delayed until the
check has cleared the Policy owner's bank.
A free look privilege also applies following a
requested increase in face amount. The Policy owner
generally has the right to cancel the increase by the
later of (a) 45 days after the application for the
increase is signed, or (b) 10 days after receipt of
the new specification pages issued for the increase
(unless state law requires a longer period). Upon
canceling the increase, the Policy owner will receive
a credit to the Policy value of charges which would
not have been deducted but for the increase. The
amount to be credited will be refunded if the Policy
owner so requests. The Company will also waive any
surrender charge calculated for the increase.
The Policy owner may make surrenders and partial
withdrawals as described in Items 10(c), 13(a) and
17(a).
(e) If the trust is the issuer of periodic payment plan
certificates the substance of the provisions of any
indenture or agreements with respect to lapses or
defaults by security holders in making principal
payments, and with respect to reinstatement.
POLICY LAPSE AND REINSTATEMENT - The failure to make
payments will not itself cause a Policy to lapse
unless: (1) the surrender value is insufficient to
cover the next monthly insurance protection charge,
plus loan interest accrued, or (2) the outstanding
loan exceeds the Policy value less surrender charges.
If the Policy becomes in default because of (1) or
(2), above, the Policy owner will have a 62-day grace
period to make a sufficient payment to prevent
termination. Except for the situation described in
(2), above, if, during the first 48 months after the
date of issue or the effective date of an increase in
face amount, payment is made to the Company of a net
amount at least equal to the sum of minimum monthly
payments (a monthly premium amount calculated as the
monthly average cost of the expected charges under
the Policy) for the number of months the Policy,
increase or Policy change which causes a change in
the minimum monthly payment has been in force, the
Policy will not lapse during the period. A Policy
change which causes a change in the minimum monthly
payment is a change in the face amount or the
addition or deletion of a rider. Subject to certain
conditions (including evidence of insurability
satisfactory to the Company) and the payment of
sufficient net premium, a Policy may be reinstated at
any time within three years after the expiration of
the grace period and before the final payment date.
See Item 17(c) for a more detailed description of
these rights.
GUARANTEED DEATH BENEFIT - If the Policy owner elects
the Guaranteed Death Benefit Rider, and the rider has
not previously been terminated, the Company
guarantees that the Policy will not lapse provided
the following test is met. On each Policy
anniversary, the Company compares (a) the sum of
payments made to the Policy, less amounts withdrawn,
including withdrawal charges, and less any
outstanding loan, to (b) the annual guaranteed death
benefit premiums times the number of Policy years
since the date of issue. If (a) is equal to or
greater than (b), then the Policy will not lapse. The
guaranteed death benefit premiums are currently equal
to 90% of the guideline level premium if the Level
Death Benefit Option was elected or 75% of the
guideline level premium if the Adjustable Death
Benefit Option was elected.
(f) The substance of the provisions of any indenture or
agreements with respect to voting rights, together
with the names of any persons other than security
holders given the right to exercise voting rights
pertaining to the trust's securities or the
underlying securities and the relationship of such
persons to the trust.
To the extent required by law, the Company will vote
shares held by each sub-account in accordance with
instructions received from the Policy owners with
Policy value in such sub-account. Each person having
a voting interest will be provided with proxy
materials together with an appropriate form with
which to give voting instructions to the Company.
Shares held in each sub-account for which no timely
instructions are received will be voted in proportion
to the instructions received from all persons with an
interest in the sub-account furnishing instructions
to the Company with respect to the portfolios. The
Company will also vote shares held in the Separate
Account VUL-1 that it owns and which are not
attributable to the Policies in the same proportion.
The number of votes which a Policy owner may cast
will be determined by the Company as of the record
date established for theportfolio. The number of
shares held in each sub-account deemed attributable
to each Policy owner is determined by dividing Policy
value in the sub-account, if any, by the net asset
value of one share in the corresponding portfolio in
which the assets of the sub-account are invested.
Fractional votes will be counted.
If the 1940 Act or any rules thereunder should be
amended or if the present interpretation of the 1940
Act or such rules should change, and as a result the
Company determines that it is permitted to vote
shares of the portfolio in its own right, whether or
not such shares are attributable to the Policies, the
Company reserves the right to do so.
The Company may, when required by state insurance
regulatory authorities, disregard voting instructions
if the instructions require that the shares be voted
so as (1) to cause a change in the sub-classification
or investment objective of one or more of the
portfolio or (2) to approve or disapprove an
investment advisory contract for theportfolio. In
addition the Company may disregard voting
instructions calling for a change in the investment
policies, any investment adviser or principal
underwriter of any portfolio which may be initiated
by Policy owners, provided the Company's disapproval
of the change is reasonable and, in the case of a
change in investment policies or investment adviser,
based on a good faith determination that such change
would be contrary to state law or otherwise
inappropriate in light of the portfolio's objectives
and purposes. In the event the Company does disregard
voting instructions, a summary of that action and the
reasons for that action will be included in the next
periodic report to Policy owners.
(g) Whether security holders must be given notice of any
changes in:
(1) the composition of the assets of the trust.
The Company reserve the right, subject to
applicable law, to make additions to,
deletions from, or substitutions for the
shares that are held in the sub-accounts of
the Separate Account VUL-1 or that the
sub-accounts of the Separate Account VUL-1
may purchase. If the shares of a portfolio
are no longer available for investment or if
in the Company's judgment further investment
in any portfolio should become inappropriate
in view of the purposes of the Separate
Account VUL-1 or the affected sub-account,
the Company may redeem the shares of that
underlying portfolio and substitute shares
of another registered open-end management
company. The Company will not substitute any
shares attributable to a Policy interest in
a sub-account without notice and prior
approval of the SEC and state insurance
authorities, to the extent required by the
1940 Act or other applicable law.
The Company also reserves the right to
establish additional sub-accounts of the
Separate Account VUL-1, each of which would
invest in shares corresponding to a new
underlying portfolio or in shares of another
investment company having a specified
investment objective. Subject to applicable
law and any required Commission approval,
the Company may, in our sole discretion,
establish new sub-accounts or eliminate one
or more sub-accounts if marketing needs, tax
considerations or investment conditions
warrant. Any new sub-accounts may be made
available to existing Policy owners on a
basis to be determined by the Company.
If any of these substitutions or changes are
made, the Company may by appropriate
endorsement change the Policy to reflect the
substitution or change and will notify
Policy owners of all such changes. If the
Company deems it to be in the best interest
of Policy owners, and subject to any
approvals that may be required under
applicable law, the Separate Account VUL-1
or any sub-account(s) may be operated as a
management company under the 1940 Act, may
be deregistered under that Act if
registration is no longer required, or may
be combined with other sub-accounts or other
separate accounts of the Company.
(2) the terms and conditions of the securities issued
by the trust.
No change in the terms and conditions of the
Policies that affect the Policy owner's
rights will be made without notice to Policy
owner to the extent required by law.
(3) the provisions of any indenture or agreement of
the trust.
No notice to or consent from Policy owners
is required for any change in the Company's
resolution establishing the Separate Account
VUL-1.
(4) the identity of the depositor, trustee or
custodian.
The depositor of the Separate Account VUL-1
cannot be changed.
The Separate Account VUL-1 has no Trustees.
Notice to Policy owners need not be given
for the custodian to be changed.
(h) Whether the consent of security holders is
required in order for action to be taken concerning
any change in:
(1) the composition of the assets of the trust.
The Policies do not require consent of the
Policy owners when changing the underlying
securities of the Separate Account VUL-1,
except as may be required by currently
applicable law or regulation.
(2) the terms and conditions of the securities issued
by the trust.
Except as appropriate to comply with federal
or state law or regulation the terms and
conditions of a Policy cannot be changed
without the consent of the Policy owner.
(3) the provisions of any indenture or agreement of
the trust.
No consent is required.
(4) the identity of the depositor, trustee or
custodian.
The depositor of the Separate Account VUL-1
cannot be changed.
The Separate Account VUL-1 has no Trustees
and no custodian.
(i) Any other principal feature of the securities issued
by the trust or any other principal right, privilege
or obligation not covered by subdivisions (a) to (g)
or by any other item in this form.
(1) Payments - See Items 14 and 15.
-------- ---
(2) Death Benefits - As long as the Policy
remains in force, the Company will, upon
receipt of due proof of the Insured's death,
pay the Death Benefits of the Policy to the
named beneficiary. The Company will normally
pay the Death Benefits within seven days of
receiving due proof of the Insured's death,
but the Company may delay payments under
certain circumstances. The Death Benefits
may be received by the beneficiary in cash
or under one or more of the payment options
set forth in the Policy.
The net death benefit if the insured dies on
or before the Final Payment Date and before
the paid-up insurance option is exercised
is: (a) the death benefit provided under
either of two death benefit options, the
Level Option or Adjustable Option, whichever
is elected and in effect on the date of
death; plus (b) any additional insurance on
the Insured's life that is provided by
rider; minus (c) any outstandingloan, any
partial withdrawals and partial withdrawal
charges, and any monthly insurance
protection charges due and unpaid through
the Policy month in which the Insured dies.
The amount of the net death benefit payable
will be determined as of the date of the
Company's receipt of due proof of the
Insured's death.
The Policy provides two death benefit
options before the Final Payment Date: the
Level Option and the Adjustable Option, as
described below. (These options are not
available once the paid-up insurance option
is exercised.) The Policy owner designates
the desired option in the application. The
Policy owner may change the option once per
Policy year by written request. There is no
charge for a change in option. The effective
date of any such change will be the monthly
payment date on or following the date of
receipt of the request.
Under the Level Option, the death benefit is
equal to the greater of the face amount of
insurance or the Guideline MinimumSum
Insured.
Under the Adjustable Option, the death
benefit is equal to the greater of: (a) the
face amount of insurance plus the Policy
value, or (b) the Guideline MinimumSum
Insured.
The Guideline Minimum Sum Insured is equal
to a percentage of the Policy value as set
forth in the Policy. The Guideline Minimum
Sum Insured is determined in accordance with
the Internal Revenue Code regulations to
ensure that the Policy qualifies as a life
insurance contract and that the insurance
proceeds will be excluded from the gross
income of the beneficiary. After attained
age 93, the Guideline Minimum Sum Insured
under the Policy is 101% of the Policy
Value. If the insured dies after the paid-up
insurance option is exercised, then the net
death benefit will be the paid-up insurance
amount less any outstanding loan.
If the insured dies after the Final Payment
Date, the net death benefit will be, except
as provided otherwise under the Guaranteed
Death Benefit Rider, 101% of the Policy
Value on the date we receive due proof of
death less any outstanding loan and any
partial withdrawals and withdrawal charges
due and unpaid. If the Policy owner elected
the Guaranteed Death Benefit Rider, and if
the Rider was not previously terminated,
then the net death benefit when the insured
dies after the Final Payment Date is the
greater of (a) the face amount of the policy
on the Final Payment Date, or (b) 101% of
the Policy Value on the date we receive due
proof of the insured's death less any
outstanding loan. (A partial withdrawal
taken after the Final Payment Date
terminates the Guaranteed Death Benefit
Rider.)
(3) Calculation of Cash Value - See Items 44(a),
44(c), and 46(a).
(4) Loan Provisions. See Item 21.
(5) Payment Options - Upon written request, the
surrender value or all or part of the net
death benefits may be placed under one or
more of the payment options offered by the
Company. If the Policy owner does not make
an election, the Company will pay the
benefits in a single sum. A certificate will
be provided to the payee describing the
payment option selected.
If a payment option is selected, the
beneficiary may pay to the Company an amount
that would otherwise be deducted from the
death benefit.
The amount applied under any one payment
option for any one payee must be at least
$5,000. The periodic payments for any one
payee must be at least $50.
(6) Optional Insurance Benefit - Subject to
certain requirements, one or more of the
following additional insurance benefits may
be added by rider: Waiver of Payment Rider,
Guaranteed Insurability Rider, Children's
Insurance Rider, Living Benefits Rider, and
Guaranteed Death Benefit Rider. The cost of
these optional insurance benefits will be
deducted from Policy value as part of the
monthly insurance protection charges, except
that there is a one-time only charge for the
Guaranteed Death Benefit Rider which charge
will be deducted from the first payment.
Information Concerning the Securities Underlying the Trust's Securities
11. Describe briefly the kind or type of securities comprising the
unit of specified securities in which security holders have an
interest.
The Policies permit net payments to be allocated either to the
Fixed Account, which is part of the Company's General Account,
or to the Separate Account VUL-1. Seventeen investment
divisions ("sub-accounts") are currently offered under the
Policies. Each sub-account invests exclusively in a
correspondingportfolio, which is a no-load, management
investment company. Each of the portfolios operates pursuant
to different investment objectives, which are summarized
below:
Transamerica Variable Insurance Fund: Growth Portfolio seeks
long-term capital growth. Common stock, list and unlisted, is
the basic form of investment. Although the portfolio invests
the majority of its assets in common stocks, the portfolio may
also invest in debt securities and preferred stocks (both
having a call on common stocks by means of a conversion
privilege or attached warrants) and warrants or other rights
to purchase common stocks. Unless market conditions would
indicate otherwise, the Growth portfolio will be invested
primarily in such equity-type securities. When in the judgment
of Investment Services market conditions warrant, the Growth
portfolio may, for temporary defensive purposes, hold part or
all of its assets in cash, debt or money market instruments.
Transamerica Variable Insurance Fund: Money Market seeks to
achieve as high a level of current income as is consistent
with the preservation of capital and the maintenance of
liquidity. It seeks to achieve its objective by investing in
short-term money market instruments. This portfolio is neither
insured nor guaranteed by the United States Government, and
there can be no assurance that it will be able to maintain a
stable net asset value of $1.00 per share.
12. If the trust is the issuer of periodic payment plan
certificates and if any underlying securities were issued by
another investment company, furnish information for each such
company:
(a) Name of Company.
The sub-accounts of the Separate Account VUL-1 invest
in a number of corresponding portfolios managed by a
number of investment advisers.
<TABLE>
<CAPTION>
(a) (b) (c) (d) (e)
<S> <C> <C> <C> <C>
Name of Company Address of Depositor Custodian Underwriter Period
Transamerica Occidental 1150 South Olive Street State Street Bank none 11-1-96
Life Insurance Company is Los Angeles, CA 90015 and Trust Company
depositor for TVIF Growth P.O. Box 9110
Portfolio Boston, MA 02209
Transamerica Occidental 1150 South Olive Street State Street Bank none N/A
Life Insurance Company is Los Angeles, CA 90015 and Trust Company
depositor for TVIF Money P.O. Box 9110
Market Portfolio Boston, MA 02209
</TABLE>
Information Concerning Loads, Fees, Charges and Expenses
13. (a) Furnish the following information with respect to
each load, fee, expense or charge to which (1)
principal payments; (2) underlying securities; (3)
distributions; (4) cumulated or reinvested
distributions or income; and (5) redeemed or
liquidated assets of the trust's securities are
subject:
(A) the nature of such load, fee, expense or charge;
(B) the amount thereof:
(C) the name of the person to whom such amounts
are paid and his relationship to the trust:
(D) the nature of the services performed by such
person in consideration for such load, fee,
expense or charge.
(1) Under the Policies
PAYMENT EXPENSE CHARGE - A payment expense
charge of 4.0% of each payment will be
deducted for premium taxes imposed by
various states and local jurisdictions for
federal taxes ("DAC taxes") to compensate
the Company for its increased federal income
tax as a result of payment received in
connection with the Policy and for sales
expenses. The Company may increase this
charge if the taxes we pay for premium taxes
and/or for federal taxes described above
also increase.
MONTHLY INSURANCE PROTECTION CHARGES
DEDUCTED FROM POLICY VALUE - On the date of
issue and each monthly payment date
thereafter, insurance protection charges
will be deducted from the Policy value of
each Policy. The monthly insurance
protection charge deducted from Policy value
consists of a charge retained by the Company
for cost of insurance and a charge for the
cost of any additional benefits provided by
rider. Monthly insurance protection charges
will be deducted from a particular
sub-account in accordance with instructions
received from the Policy owner. If no
allocation is made by the Policy owner,
charges will be deducted pro rata from the
sub-accounts and from the Fixed Account.
The monthly insurance protection charge will
be affected by any changes in the face
amount and will be calculated separately for
the initial face amount, for any increases
in face amount, and for any benefits
provided by rider.
If the Policy owner selected the Adjustable
Option, the monthly insurance protection
charge for the initial face amount will be
equal to the applicable cost of insurance
rate multiplied by the initial face amount.
If the Policy owner selected the Level
Option, however, the applicable cost of
insurance rate will be multiplied by the
initial face amount less the Policy value
(minus charges for rider benefits) at the
beginning of the Policy month.
If the Adjustable Option is selected, the
cost of insurance for each increase in face
amount (other than an increase caused by a
change in option) will be equal to the cost
of insurance rate applicable to that
increase multiplied by the increase in face
amount. If the Level Option is selected, the
applicable cost of insurance rate will be
multiplied by the increase in the face
amount reduced by any Policy value (minus
rider charges) in excess of the initial face
amount at the beginning of the Policy month.
If the Guideline Minimum Sum Insured is in
effect under either death benefit option, a
monthly insurance protection charge will
also be calculated for that portion of the
Death Benefit which exceeds the current face
amount. This charge will be calculated by
multiplying the cost of insurance rate
applicable to the initial face amount times
the Guideline Minimum Sum Insured (Policy
value times the applicable percentage) less
the greater of the face amount or the Policy
value if the Policy owner selected the Level
Option, or less the face amount plus the
Policy value if the Policy owner selected
the Adjustable Option. When the Guideline
Minimum Sum Insured is in effect, the cost
of insurance charge for the initial face
amount and for any increases will be
calculated as set forth in the preceding two
paragraphs.
The monthly insurance protection charge will
also be adjusted for any decreases in face
amount.
Monthly insurance protection charges for the
Policies will not be the same for all Policy
owners. The insurance principals of pooling
and distribution of mortality risks is based
on the assumption that each Policy owner
pays a cost of insurance charge commensurate
with the Insured's mortality risk.
Cost of insurance rates are actually based
on the sex (male, female, or unisex), age
and underwriting class of the Insured at the
date of issue, the effective date of an
increase or date of rider, as applicable.
The cost of insurance rates are determined
at the beginning of each Policy year for the
initial face amount and for each increase in
the face amount. The cost of insurance rates
generally increase as the Insured's age
increases. The actual monthly cost of
insurance rates will be based on the
Company's expectations as to future
mortality experience. They will not,
however, be greater than the guaranteed cost
of insurance rates set forth in the Policy.
These guaranteed rates are based on the 1980
Commissioners Standard Ordinary Mortality
Tables and the Insured's sex and age. The
Tables used for this purpose set forth
different mortality estimates for males and
females and for smokers and non-smokers. Any
change in the cost of insurance rates will
apply to all persons of the same insuring
age, sex, and underwriting class whose
Policies have been in force for the same
length of time.
The underwriting class of an Insured affects
the cost of insurance rate. If the Company
places an Insured into a standard
underwriting class, the cost of insurance
will be higher than that of an underwriting
class with a lower mortality risk, and lower
than that of an underwriting class with a
higher mortality risk.
TRANSFER CHARGES - The first twelve
transfers in a Policy year will be free of
charge. Thereafter, a transfer charge of $10
will be imposed by the Company for each
transfer request. The Company reserves the
right to increase the charge, but it will
never exceed $25.00.
CHARGE FOR INCREASE IN FACE AMOUNT - For
each increase in face amount, a transaction
charge of $40 will be deducted pro-rata from
Policy value by the Company for
administrative costs. This charge is
guaranteed not to increase.
SURRENDER CHARGE - A surrender charge is
computed on the date of issued for the
initial face amount. The surrender charge
applies for ten years from the date of
issue. We impose the surrender charge only
if, during the time the charge is effective,
you request a full surrender of your Policy
or a decrease in face amount.
A new surrender charge is computed for any
increase in face amount. The surrender
charge for a face increase applies for ten
years from the date the increase is
effective. The new surrender charge computed
for an increase in face amount applies only
to the face increase.
We compute the surrender charges based on a
rate per $1,000 of face amount. The rate
which applies to your Policy is based on
whether the insured is male or female (males
rates are used if the Policy is used using
unisex rates); the insured's age; and the
number of years during which the surrender
charge has been effective. The surrender
charge decreases each Policy year with
respect to the initial face amount, and,
with respect to an increase in face amount,
on each 12-month anniversary of the
effective date of the face amount increase.
We determine the insured's age as of the
date of issue for the initial face amount
for the Policy. If there is an increase in
the face amount, we determine the insured's
age on the effective date of the increase.
CHARGES ON PARTIAL WITHDRAWAL - After the
first Policy year (and before the paid-up
insurance option is exercised), partial
withdrawals in a minimum amount of $500 may
be made from the Policy value. A transaction
charge which is the smaller of 2% of the
amount withdrawn or $25.00 will be assessed
in all cases.
A partial withdrawal charge may also be
imposed upon a partial withdrawal. For each
partial withdrawal the Policy owner may
withdraw an amount equal to 10% of the
Policy value on the date the written
withdrawal request is received by the
Company less the total of any prior
withdrawals in that Policy year which were
not subject to the partial withdrawal
charge, without incurring a partial
withdrawal charge. Any partial withdrawal in
excess of this amount ("excess withdrawal")
will be subject to the partial withdrawal
charge. The partial withdrawal charge is
equal to 5% of the excess withdrawal up to
the amount of the surrender charge(s) on the
date of withdrawal. There will be no partial
withdrawal charge if there is no surrender
charge on the date of withdrawal (i.e., 10
years have passed from the date of issue and
from the effective date of any increase in
the face amount).
The Policy's outstanding surrender charge
will be reduced by the amount of the partial
withdrawal charge deducted. The partial
withdrawal charge deducted will decrease
existing surrender charges in the following
order:
1. The surrender charge for the most
recent increase in face amount;
2. The surrender charges for the next
most recent increases successively;
and
3. Last, the surrender charge for the
initial face amount.
CHARGES AGAINST THE SEPARATE ACCOUNT VUL-1 -
A daily charge currently equivalent to an
annual rate of 0.80% of the average daily
net asset value of each sub-account of the
Separate Account VUL-1 is imposed to
compensate the Company for its assumption of
certain mortality and expense risks and for
administrative costs associated with the
Separate Account VUL-1. The rate is
currently 0.65% (never to exceed 0.80%) for
the mortality and expense risk charge and
0.15% for the administration charge.
Currently, the administration charge is
waived after the tenth policy year. The
administration charge is guaranteed to be
eliminated after the twentieth Policy year.
No charges are currently made against the
sub-accounts for federal or state income
taxes. Should the Company determine that
taxes will be imposed, the Company may make
deductions from the sub-account to pay such
taxes. The imposition of such taxes would
result in a reduction of the Policy value in
the sub-accounts.
(2) Underlying Securities
In addition to the charges described above,
certain management fees and other expenses
are deducted from the assets of the
underlying portfolios. The level of fees and
expenses vary among the portfolios. The
following table shows the management fees
and other expenses of the portfolios for
1996. For more information concerning these
fees and expenses, see the prospectus of the
portfolios.
Transamerica Growth Portfolio:
.75% management fee; .10% other expenses; .85%
total expenses.
Transamerica Money Market Portfolio: N/A
(3) Distributions
No distributions are made to Policy owners
except voluntary surrenders or partial
withdrawals, and upon payment of death
proceeds. Surrenders and partial withdrawals
may be subject to the surrender and partial
withdrawal charges described in 13(a)(1),
above. Also See Item 21.
(4) Cumulated or Reinvested Distributions or Income
Distributions from the portfolios are
reinvested by sub-accounts of the Separate
Account VUL-1 in additional shares of the
respective portfolios, without charge, at
net asset value.
(5) Redeemed or Liquidated Assets of the Trust's
Securities
See "Surrender Charge" and "Charges on
Partial Withdrawals" under Item 13(a)(1)
above.
(b) For each installment payment type of periodic payment
plan certificate of the trust, furnish information
with respect to sales load and other deductions from
principal payments.
A payment expense charge of 4.0% of each premium will
be deducted for premium taxes imposed by various
states and local jurisdictions for federal taxes
("DAC taxes") to compensate The Company for its
increased federal income tax as a result of payment
received in connection with the Policy and for sales
expenses. No other deductions are made from premiums
prior to allocation to the Fixed Account or the
Separate Account VUL-1. All other charges and
deductions are made from Policy value, net assets of
the Separate Account VUL-1, or upon certain
surrenders, partial withdrawals, and decreases in
face amount.
(c) State (1) the amount of sales load as a percentage of
the net amount invested, and (2) the amount of total
deductions as a percentage of the net amount invested
for each type of security issued by the trust.
The only deduction from payments is the 4.0%
deduction for payment expense charges as described in
(b), above. A surrender charge is calculated at
issuance of the Policy and for increases in face
amounts, but is deducted if at all, only upon
surrender or decreases in face amount within 10
Policy years or less, depending upon issue age. Also,
a transaction charge and partial withdrawal charge
may be deducted on partial withdrawals.
(d) Explain fully the reasons for any difference in the
price at which securities are offered for any class
of transactions to any class or group of officers,
including officers, directors or employees of the
deposition trustee, custodian or principal
underwriter.
Not Applicable.
(e) Furnish a brief description of any loads, fees,
expenses or charges not covered in Item 13(a) which
may be paid by security holders in connection with
the trust or its securities.
The Company reserves the right to impose a charge for
changing the net payment allocation instructions, for
changing the allocation of the monthly insurance
protection charges, or for a projection of values. No
such charges are currently imposed and any such
charge is guaranteed not to exceed $25.00.
(f) State whether the depositor, principal underwriter,
custodian or trustee, or any affiliated person of the
foregoing, may receive profits or other benefits not
included in answer to Item 13(a) or 13(d) through the
sale or purchase of the trust's securities or
interests in such securities, or underlying
securities or interests in underlying securities, and
describe fully the nature and extent of such profits
or benefits.
Neither the Company, Transamerica Securities Sales
Corporation nor any affiliated person of the
foregoing may receive any profit or any other benefit
from payments under the Policy or tie investments
held in the Separate Account VUL-1 not included in
the answer to Item 13(a) or (d) through the sale of
purchase of the Policy or shares of the portfolios,
except that (1) the Company may receive a profit to
the extent that the cost of insurance built into the
Policy exceeds the actual cost of insurance needed to
pay benefits; (2) favorable mortality or expense
experience may cause the insurance provided to be
profitable to the Company; (3) the Company will
compensate certain others including the company
agents, for services rendered in connection with the
distribution of the Policy, as described in Item 38,
but such payments will be made from the Fixed
Account; and (4) the investment advisers of the
respective portfolios will receive an advisory fee,
as described in Item 13(a)(2).
(g) State the percentage that the aggregate annual
charges and deductions for maintenance and other
expenses of the trust bear to the dividend and
interest income from the trust property during the
period covered by the financial statements filed
herewith.
Not Applicable. The Separate Account VUL-1 has no
assets as of the date of this filing.
Information Concerning the Operations of the Trust
14. Describe the procedure with respect to the applications (if
any) and the issuance and authentication of the trust's
securities, and state the substance of the provisions of any
indenture or agreement pertaining thereto.
Individuals wishing to purchase a Policy must submit a
completed application to an authorized registered agent or to
the Company'sVariable Life Service Center. The Company
generally will issue a Policy only on the lives of Insureds
age 80 and under, who supply evidence of insurability
satisfactory to the Company. Acceptance is subject to the
Company's underwriting rules, and the Company reserves the
right to reject an application for any reason.
Within limits, applicants may choose the amount of the initial
premium desired and the initial face amount of the Policy. The
Company may limit the face amount which we will issue.
Currently, the minimum specified face amount of insurance for
which a Policy may be issued is $100,000.
The Policy will be effective on the date of issue only after
all outstanding delivery requirements are satisfied and the
Company has received a sufficientpayment. The date of issue is
the date used to determine all future periodic transactions
under the Policy, e.g., monthly payment date, Policy months
and Policy years. Within limits, the Company may establish an
earlier date of issue.
If a payment equivalent to at least one minimum monthly
payment is received with the application, and there has been
no material misrepresentation on the application, fixed,
conditional insurance of up to the amount applied for but not
to exceed$25,000 for persons age 16 to 65 and insurable as an
underwriting class, and up to $100,000 for all other ages and
underwriting classes will start as of the date of the
application. If a medical examination of a person to be
Insured is required by the Company's underwriting rules,
coverage on that person will not start until completion of the
examination. In no event will a death benefit be provided
under the conditional insurance agreement if death is by
suicide.
If the application is approved, the date of issue will be the
date the terms of the conditional insurance agreement were
met. If payments are made before the date of issuance and
acceptance, the payments will be allocated initially to the
Fixed Account. If the Applicant does not wish to make any
payment until the Policy is issued, or if the amount of money
paid on a prepaid application is not sufficient to place the
Policy in force, the Company will require submission upon
delivery of the Policy of sufficient payment to place the
Policy in force upon delivery of the Policy. If the Policy is
not issued, the applicant will receive the greater of the
payments made or the net value of the amount allocated to the
Money Marketsub-account. No Policy will be in force until
sufficient payment is paid.
15. Describe the procedure with respect to the receipt of payments
from purchasers of the trust's securities and the handling of
the proceeds thereof, and state the substance of the
provisions of any indenture or agreement pertaining thereto.
PAYMENTS - Payments are payable only to the Company, and may
be mailed to the Company's Variable Life Service Center or
paid through an authorized agent of the Company. All payments
after the initial payment are credited to the Separate Account
VUL-1 or Fixed Account as of date of receipt at theVariable
Life Service Center.
The Policy owner may establish a schedule of planned payments
which will be billed by the Company at regular intervals.
Failure to pay plannedpayments, however, will not itself cause
the Policy to lapse. The Policy owner may also make
unscheduled payments at any time or skip planned premium
payments subject to the maximum and minimum payment
limitations described below.
The Policy owner may also elect to make payments by means of a
monthly automatic payment ("MAP") procedure. Under a MAP
procedure, amounts will be deducted each month, generally on
the Monthly Processing Date, from the Policy owner's checking
account and applied as a payment under a Policy. The minimum
payment permitted under MAP is $50.
Payments are not limited as to frequency and number. However,
no payment may be less than $100 without the Company's
consent. Moreover, payments must be sufficient to provide a
positive surrender value at the end of each Policy month, or
the Policy may lapse.
The total of all payments paid can never exceed the
then-current maximum payment limitation determined by Internal
Revenue Service rules. Thus, the Company may limit the
payments received in any Policy year to an amount not less
than the "guideline level premium" determined by the Company
with respect to the Policy. In addition, the sum of the
payments paid, less any partial withdrawals, may not exceed
the greater of the guideline single premium or the sum of the
guideline level premiums to the date of payment. The guideline
premium amounts will change whenever there is any change in
the face amount, the addition or deletion of a rider, or a
change in the death benefit option. These payment limitations
do not apply to the extent necessary to prevent lapse of the
Policy during a Policy year.
If at any time a payment is paid that would result in total
payments exceeding the then current maximum premium
limitation, the Company will accept only that portion of the
payment that would make total premiums equal the maximum
limitation. Payments in excess of that amount will be applied
first to reduce any outstanding debt on the Policy and then
will be refunded to the Policy owner, and no further payments
will be accepted until allowed by the current maximum premium
limitation prescribed by Internal Revenue Service rules.
If the application is approved and the Policy is issued and
accepted, the Company will allocate the Policy Value on
issuance and acceptance according to the Policy owner's
instructions. However, if the Policy provides for a full
refund of the initial payment under its "Right to Examine
Policy" provision as required in the Policy owner's state, the
Company will initially allocate the fund investments to the
Money Market sub-account. This allocation to the Money Market
sub-account will be for 14 days from issuance and acceptance
(24 days from issuance and acceptance for replacements in
states with an extended right to examine and 34 days from
issuance and acceptance for California citizens age 60 and
older, who have an extended right to examine). After this, we
will allocate all amounts according to the Policy owner's
investment choices.
16. Describe the procedure with respect to the acquisition of
underlying securities and the disposition thereof, and state
the substance of the provisions of any indenture or agreement
pertaining thereto.
Each sub-account of the Separate Account VUL-1 invests its
assets in shares of a corresponding portfolio. Purchases and
redemptions of such shares are made at net asset value, with
no deduction for sales load.
Amounts of net payments allocated to a sub-account, transfers
to that sub-account, and reserve adjustment transfers, if any,
will be netted as of each valuation date against amounts
withdrawn from the sub-account in connection with Policy
surrenders, partial withdrawals, transfers, and death
benefits, as well as the asset charge and amounts paid to the
Company in lieu of taxes, if any. A net purchase or sale of
portfolio shares will be made for a sub-account at net asset
value. All income, dividends and realized gain distributions
of a portfolio will be reinvested in shares of the respective
portfolio at net asset value. Valuation dates currently occur
on each day on which the New York Stock Exchange is open for
trading, and on such other days where there is a sufficient
degree of trading in a portfolio's securities such that the
current net asset value of the sub-accounts may be materially
affected.
17. (a) Describe the procedure with respect to withdrawal or
redemption by security holders.
SURRENDER - A Policy owner may at any time surrender
the Policy and receive its surrender value (i.e.,
Policy value, less any outstanding loan and
applicable surrender charges) upon written request
signed by the Policy owner and return of the Policy
to the Principal Office. The surrender value will be
based on the Policy value as of the valuation date on
which the request and Policy are received at the
Principal Office. A surrender charge may be deducted
when a Policy is surrendered. See Item 13(a),
"Surrender."
The surrender value is normally payable within seven
days following the Company's receipt of the surrender
request. The Company reserves the right to defer
surrenders and partial withdrawals of amounts funded
by each sub-account during any period when (1)
trading on the New York Stock Exchange is restricted
as determined by the SEC or such Exchange is closed
for other than weekends and holidays, (2) the SEC has
by order permitted such suspension, or (3) an
emergency, as determined by the SEC, exists such that
disposal of portfolio securities or valuation of
assets of each sub-account is not reasonably
practicable.
The right is reserved by the Company to defer
surrenders and partial withdrawal of amounts
allocated to the Fixed Account for a period not to
exceed six months.
PARTIAL WITHDRAWAL - At any time after the first
Policy year (and before the paid-up insurance option
is exercised), a Policy owner may redeem a portion of
the Policy value of his or her Policy, subject to the
limits stated below, upon written request signed by
the Policy owner and filed at the Variable Life
Service Center. Where allocations have been made to
more than one account, a percentage of the partial
withdrawal may be allocated to each such account. The
written request must indicate the dollar amount the
Policy owner wishes to receive and the account from
which such amount is to be redeemed.
The Policy owner may allocate the amount withdrawn
among the sub-accounts and the Fixed Account. If no
allocation instructions are provided, the Company
will make a pro rata allocation.
A partial withdrawal from a sub-account will result
in cancellation of a number of Accumulation Units
equivalent in value to the amount withdrawn, computed
as of the valuation date that the request is received
at the Company'sVariable Life Service Center. The
amount withdrawn equals the amount requested by the
Policy owner plus any applicable charges. The Company
will normally pay the amount of the partial
withdrawal within seven days, but may delay payment
under certain circumstances described above under
"Surrender." Each partial withdrawal must be in a
minimum amount of $500, or the entire amount in a
sub-account, if less. See Item 13(a), "Partial
Withdrawals."
(b) Furnish the names of any persons who may redeem or
repurchase, or are required to redeem or repurchase,
the trust's securities or underlying securities from
security holders, and the substance of the provisions
of any indenture or agreement pertaining thereto.
The Company is required to process all surrender and
partial withdrawal requests as described in Item
17(a). The portfolios will redeem their shares upon
the Company's request in accordance with the
Investment Company Act of 1940. Redeemed shares may
later be reissued.
(c) Indicate whether repurchased or redeemed securities will
be canceled or may be resold.
If a Policy is surrendered, the Policy will be
canceled and may not be reissued.
If a Policy terminates due to lapse or foreclosure,
the Policy may be reinstated as provided below.
TERMINATION - The failure to make payments will not
cause the Policy to lapse unless: (a) the surrender
value is insufficient to cover the next monthly
insurance protection charge plus loan interest
accrued; or (b) if Outstanding Loan exceeds the
Policy value less surrender charges. If one of these
situations occurs, the Policy will be in default. The
Policy owner will then have a grace period of 62
days, measured from the date of default, to make
sufficient payments to prevent termination. On the
date of default, the Company will send a notice to
the Policy owner and to any assignee of record. The
notice will state the amount of payment due and the
date on which it is due. Failure to make a sufficient
payment within the grace period will result in
termination of the Policy without any Policy value.
If the Insured dies during the grace period, the
Death Benefit will still be payable, but any monthly
insurance protection charges due and unpaid through
the Policy month in which the Insured dies and any
other overdue charge will be deducted from the
DeathBenefit . Except for the situation described in
(b) above, if, during the first 48 months after the
date of issue or the effective date of an increase in
face amount, the Policy owner makes payments, lessany
outstanding loans, partial withdrawal charges, at
least equal to the sum of the minimum monthly
payments for the number of months the Policy,
increase or Policy change which causes a change in
the minimum monthly payment has been in force, the
Policy is guaranteed not to lapse during that period.
A Policy change which causes a change in the minimum
monthly payment is a change in the face amount or the
addition or deletion of a rider. Except for the first
48 months after the date of issue or the effective
date of an increase, payments equal to the minimum
monthly payment do not guarantee that the Policy will
remain in force.
REINSTATEMENT - If the Policy has not been
surrendered and the Insured is alive, the terminated
Policy may be reinstated anytime within three years
after the date of default by submitting the following
to the Company: (1) a written application for
reinstatement; (2) evidence of insurability showing
the Insured is insurable according to the Company's
underwriting rules; and (3) a payment that, after the
deduction of the tax expense charges, is large enough
to cover the minimum amount payable, as described
below.
Minimum Amount Payable - If reinstatement is
requested less than 48 months either after the date
of issue of the Policy or the effective date of an
increase in the face amount, the Policy owner must
pay the lesser of the amount shown in A or B:
Under A, the minimum amount payable is the monthly
payment for the three-month period beginning on the
date of reinstatement.
Under B, the minimum amount payable is the sum of
o the amount by which the surrender charge as
of the date of reinstatement
exceeds the Policy value on the date of
default; plus
o monthly insurance protection charges for the
three-month period beginning on the date of
reinstatement.
If reinstatement is requested after 48 monthly
processing dates from the date of issue of the Policy
or an increase in the face amount, the Policy owner
must pay the amount shown in B above.
Surrender Charge - The surrender charge on the date
of reinstatement is the surrender charge which would
have been in effect had the Policy remained in force
from the date of issue. The Policy value less any
outstanding loan on the date of default will be
restored to the Policy to the extent it does not
exceed the surrender charge on the date of
reinstatement. Any Policy value less any outstanding
loan as of the date of default which exceeds the
surrender charge on the date of reinstatement will
not be restored.
Policy Value on Reinstatement - The Policy value on
the date of reinstatement is:
o the net payment paid to reinstate the Policy
increased by interest from the date the
payment was received at the Company's
Principal Office;
o plus an amount equal to the Policy value
less any outstanding loan on the date of
default to the extent it does not exceed the
surrender charge on the date of
reinstatement;
o minus the monthly insurance protection
charges due on the date of reinstatement.
The Policy owner may not reinstate any outstanding
loan on the date of default or foreclosure.
18. (a) Describe the procedure with respect to the
receipt, custody and disposition of the income and
other distributable funds of the trust and state the
substance of the provisions of any indenture or
agreement pertaining thereto.
Distributions with respect to the shares of a
portfolio held by a sub-account are reinvested in
shares of that portfolio at net asset value. Such
shares are added to the assets of the respective
sub-account.
(b) Describe the procedure, if any, with respect to the
reinvestment of distributions to security holders and
state the substance of the provisions of any
indenture or agreement pertaining thereto.
No distributions are made to Policy owners other than
in connection with a death benefit or with a Policy
owner-initiated loan, partial withdrawal or surrender
of the Policy.
See Items 13(a) and 21.
(c) If any reserves or special funds are created out of
income or principal, state with respect to each such
reserve or fund the purpose and ultimate disposition
thereof, and describe the manner of handling same.
Net payments placed in the Separate Account VUL-1
constitute certain reserves for benefits under the
Policy.
(d) Submit a schedule showing the periodic and special
distributions which have been made to
security holders during the three years covered by
the financial statements filed
herewith. State for each such distribution the
aggregate amount and amount per share.
If distributions from sources other than current
income have been made, identify each
such other source and indicate whether such
distribution represents the return of
principal payments to security holders. If payments
other than cash were made, describe
the nature thereof, the account charged and the
basis of determining the amount of such
charge.
Not Applicable. The Separate Account VUL-1 has not
begun business operations.
19. Describe the procedure with respect to the keeping of
records and accounts of the Trust, the making of reports and
the furnishing of information to security holders, and the
substance of the provisions of any indenture or agreement
pertaining thereto.
The Company will maintain the records and books of the
Separate Account VUL-1. The Company will also maintain records
for each Policy, including the number and value of units of
each sub-account credited to each Policy and the value of
accumulations in the Fixed Account.
Issuance and transfer of portfolio shares will be by book
entry only. Stock certificates will not be issued to the
Company or Separate Account VUL-1. Shares ordered from the
portfolios will be recorded in an appropriate title for the
Separate Account VUL-1 or appropriate sub-account.
Policy owners will be sent promptly statements of significant
transactions such as payments (other than payments made
pursuant to the MAP payment procedure), changes in specified
face amount, change in death benefit option, transfers among
sub-accounts and the Fixed Account, partial withdrawals,
increases in loan amount by the Policy owner, loan repayments,
lapse, termination for any reason, and reinstatement. An
annual statement will also be sent to the Policy owner. The
annual statement will summarize all of the above transactions
and deductions of charges during the Policy year. It will also
set forth the status of the death benefit, Policy value,
surrender value, amounts in the sub-accounts and Fixed
Account, and any Policy loan(s).
In addition, the Policy owner will be sent semi-annual reports
containing financial statements and other information for the
Separate Account VUL-1 as required by the 1940 Act.
20. State the substance of the provisions of any indenture or
agreement concerning the trust with respect to the following:
(a) Amendments to such indenture or agreement.
Not Applicable.
(b) The extension or termination of such indenture or
agreement.
Not Applicable.
(c) The removal or resignation of the trustee or
custodian, or the failure of the trustee or custodian
to perform its duties, obligations and functions.
The Company will act as custodian of assets of the
Separate Account VUL-1. The Company may appoint
another custodian. In such event, the custodial
agreement will provide that the assets owned by the
Separate Account VUL-1 shall be delivered directly by
the Company to a successor custodian.
(d) The appointment of a successor trustee and the
procedure if a successor trustee is not appointed.
Not Applicable.
(e) The removal or resignation of the depositor, or the
failure of the depositor to perform its duties,
obligations and functions.
There is no such provision in an indenture or
agreement. Under California law, the Company may not
abrogate its obligation under the Policies.
(f) The appointment of a successor depositor and the
procedure if a successor depositor is not appointed.
There is no such provision in any indenture or
agreement.
21. (a) State the substance of the provisions of any
indenture or agreement with respect to loans to
security holders.
Loans may be obtained by request to the Company on
the sole security of the Policy. The total amount of
laws which may be outstanding at any time is the loan
value. In the first Policy year, the loan value is
75% of an amount equal to the Policy value less
surrender charges, unpaid monthly insurance
protection charges, and interest on Debt to the end
of the Policy year. The loan value in the second
Policy year and thereafter is 90% of an amount equal
to Policy value minus surrender charges.
A Policy loan may be allocated among the Fixed
Account and one or more sub-accounts. If the Policy
owner does not make an allocation, the Company will
allocate the loan among the accounts in the same
proportion that the Policy value in the Fixed Account
and the Policy value in each sub-account bear to the
total Policy value on the date the Company receives
the loan request. Policy value in each sub-account
equal to the Policy loan allocated to such
sub-account will be transferred to the Fixed Account,
and the number of Units equal to Policy value so
transferred will be canceled. Amounts transferred to
or held in the Fixed Account to secure Debt will earn
interest at a rate equal to an effective annual yield
of at least 6% (7.5% for "preferred loans").
After due and unpaid interest is added to loan
amount, if the new loan amount exceeds the Policy
value in the Fixed Account, the Company will transfer
Policy value equal to that excess Debt from each
sub-account to the Fixed Account as security for the
excess Debt. The Company will allocate the amount
transferred among the sub-accounts in the same
proportion that the Policy value in each sub-account
bears to the total Policy value in all sub-accounts.
LOAN INTEREST CHARGED - Interest accrues daily and is
payable in arrears at the annual rate of 8%. Interest
is payable at the end of each Policy year or on a pro
rata basis for such shorter period as the loan may
exist. Interest not paid when due will be added to
the loan principal and bear interest at the same rate
of interest.
REPAYMENT OF OUTSTANDING LOAN- Loans may be repaid at
any time prior to the lapse of the Policy. Upon
repayment ofany outstanding loan, the portion of the
Policy value that is in the Fixed Account securing
any outstanding loan will be transferred to the
various sub-accounts and increase the Policy value in
such accounts in accordance with the Policy owner's
instructions. If the Policy owner does not make a
repayment allocation, the Company will allocate
Policy value in accordance with the Policy owner's
most recent payment allocation instructions;
provided, however, that loan repayments allocated to
the Separate Account VUL-1 cannot exceed Policy value
previously transferred from the Separate Account
VUL-1 to secure theoutstanding loan.
FORECLOSURE - If any outstanding loan exceeds the
surrender value of the Policy, the Policy will
terminate. A notice of such pending termination will
be mailed to the last known address of the Policy
owner and any assignee. If the excess outstanding
loan is not paid within 62 days after this notice is
mailed, the Policy will terminate with no value. A
Policy may be reinstated following loan foreclosure.
(b) Furnish a brief description of any procedure or
arrangement by which loans are made available to
security holders by the depositor, principal
underwriter, trustee or custodian, or any affiliated
person of the foregoing.
See Items 10(i) and 21(a), above. No other loans are
made, except under the terms of life insurance
policies which may be issued by the depositor or
affiliated insurance companies.
(c) If such loans are made, furnish the aggregate amount
of loans outstanding at the end of the last fiscal
year, the amount of interest collected during the
last fiscal year allocated to the depositor,
principal underwriter, trustee or custodian or
affiliated person of the foregoing, aggregate amount
of loans in default at the end of the last fiscal
year covered by financial statements filed herewith.
Not Applicable.
22. State the substance of the provisions of any indenture or
agreement with respect to limitations on the liabilities of
the depositor, trustee or custodian, or any other party to
such indenture or agreement.
The Policies provide that the Company shall not be charged
with notice of any assignment of the Policy unless it is in
writing and filed at the Company'sVariable Life Service
Center. The Company assumes no liability for the validity of
any assignment.
23. Describe any bonding arrangement for officers, directors,
partners or employees of the depositor or principal
underwriter of the trust, including the amount of coverage and
the type of bond.
DIRECTORS AND PRINCIPAL OFFICERS OF
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
Thomas J. Cusack* Director, Chairman, President and Chief Executive
Officer of TOLIC since 1997.
Director, President and Chief
Executive Officer of TOLIC since
1995. Senior Vice President of
Transamerica Corporation from 1993
to 1995. Vice President of Corporate
Development of General Electric
Company from 1989 to 1993.
Nooruddin S. Veerjee, FSA* Director, President
of Group Pension Division of TOLIC
since 1993. Senior Vice President of
TOLIC from 1992 to 1993. Vice
President of TOLIC from 1990 to
1992.
James W. Dederer, CLU* Director, Executive Vice President,
General Counsel and Corporate
Secretary of TOLIC since 1988.
David E. Gooding* Director, Executive Vice President and Chief
Information Officer of TOLIC since 1992.
T. Desmond Sugrue* Director and Executive Vice President of TOLIC
since 1997. Senior Vice President of TOLIC from
1996 to 1997. Self-employed - Consulting from
1994 to 1996. Employed at Bank of America
from 1988 to 1993.
Robert Abeles* Director, Executive Vice
President and Chief Financial
Officer of TOLIC since 1996.
Executive Vice President and Chief
Financial Officer of First
Interstate Bank of California from
1990 to 1996.
Nicki Bair* Senior Vice President of TOLIC
since 1996. Vice President of TOLIC
from 1991 to 1996.
Roy Chong-Kit* Senior Vice President and
Actuary of TOLIC since 1997. Vice
President and Actuary of TOLIC from
1995 to 1997. Actuary of TOLIC from
1988 to 1995.
Bruce Clark* Senior Vice President and
Chief Actuary of TOLIC since 1996.
Vice President and Actuary of TOLIC
from 1994 to 1996. Vice President
and Associate Actuary of TOLIC from
1988 to 1994.
Daniel E. Jund, FLMI* Senior Vice President of TOLIC since 1988.
Karen MacDonald* Director, Senior Vice President and Corporate
Actuary of TOLIC since 1995. Senior
Vice President and Corporate Actuary
from 1992 to 1995.
William N. Scott, CLU, FLMI** Senior Vice
President of TOLIC since 1993. Vice
President of TOLIC from 1988 to
1993.
Claude W. Thau, FSA** Senior Vice President
of TOLIC since 1996. Vice President
of TOLIC from 1985 to 1996.
Ron F. Wagley* Senior Vice President and
Chief Agency Officer of TOLIC since
1993. Vice President of TOLIC from
1989 to 1993.
William R. Wellnitz, FSA*** Senior Vice
President and Actuary of TOLIC since
1996. Vice President and Reinsurance
Actuary of TOLIC from 1988 to 1996.
*The business address is 1150 South Olive Street, Los Angeles,
California 90015. **The business address is 1100 Walnut Street, 23rd
Floor, Kansas City, Missouri 64106. ***The business address is 401
North Tryon Street, Charlotte, North Carolina 28202.
The depositor is insured under a broad manuscript fidelity bond program
with coverage limits of $40,000,000. The lead underwriter is
Continental Casualty Company of Chicago, Illinois.
24. State the substance of any other material provisions of any
indenture or agreement concerning the trust or its securities
and a description of any other material functions or duties of
the depositor, trustee or custodian not stated in Item 10 or
Items 14 to 23 inclusive.
Participation Agreement. The Company and the portfolios will
enter into Participation Agreements
which define the terms under which the sub-accounts of
Separate Account VUL-1 invest in the portfolios.
POLICY OWNER - The Policy owner is the Insured unless another
Policy owner has been named in the application for the Policy.
The Policy owner is generally entitled to exercise all rights
under a Policy while the Insured is alive, subject to the
consent of any irrevocable beneficiary (the consent of a
revocable beneficiary is not required). The consent of the
Insured is required whenever the face amount of insurance is
increased.
BENEFICIARY - The beneficiary is the person or persons to whom
the insurance proceeds are payable upon the Insured's death.
Unless otherwise stated in the Policy, the beneficiary has no
rights in the Policy before the death of the Insured. While
the Insured is alive, you may change any beneficiary unless
you have declared a beneficiary to be irrevocable. If no
beneficiary is alive when the Insured dies, the owner (or the
owner's estate) will be the beneficiary. If more than one
beneficiary is alive when the Insured dies, they will be paid
in equal shares, unless you have chosen otherwise. Where there
is more than one beneficiary, the interest of a beneficiary
who dies before Insured will pass to surviving beneficiaries
proportionally.
INCONTESTABILITY - The Company will not contest the validity
of a Policy after it has been in force during the Insured's
lifetime for two years from the date of issue. The Company
will not contest the validity of any increase in the face
amount after such increase or rider has been in force during
the Insured's lifetime for two years from its effective date.
SUICIDE - The Death Benefits will not be paid if the Insured
commits suicide, while sane or insane, generally within two
years from the date of issue. Instead, the Company will pay
the beneficiary an amount equal to all payments paid for the
Policy, without interest, less any outstanding loan and less
any partial withdrawals. If the Insured commits suicide, while
sane or insane, generally within two years from the effective
date of any increase in the death benefit, the Company's
liability with respect to such increase will be limited to a
refund of the cost thereof. The beneficiary will receive the
administrative charges and insurance charges paid for such
increase.
AGE AND SEX - If the Insured's age or sex as-stated in the
application for a Policy is not correct, benefits under a
Policy will be adjusted to reflect the correct age and sex.
The adjusted benefit will be that which the most recent cost
of insurance charge would have purchased for the correct age
and sex. In no event will the death benefit be reduced to less
than the Guideline Minimum Death Benefit. In the case of a
Policy issued on a unisex basis, this provision as it relates
to misstatement of sex does not apply.
ASSIGNMENT - The Policy owner may assign a Policy as
collateral or make an absolute assignment of the Policy. All
rights under the Policy will be transferred to the extent of
the assignee's interest. When recorded, the assignment will
take effect as of the date the written request was signed. The
Company is not bound by an assignment or release thereof,
unless it is in writing and is recorded at the Company's
Principal Office. Any rights created by the assignment will be
subject to any payments made or actions taken by the Company
before the assignment is recorded. The Company is not
responsible for the validity of any assignment or release.
III. ORGANIZATION, PERSONNEL AND AFFILIATED PERSONS OF DEPOSITOR
Organization and Operations of Depositor
25. State the form of organization of the depositor of the trust,
the name of the state or other sovereign power under the laws
of which the depositor was organized and the date of
organization.
The Company is a stock life insurance company incorporated
under the laws of the state of California in 1906.
26. (a) Furnish the following information with respect to
all fees received by the depositor of the trust in
connection with the exercise of any functions or
duties concerning securities. of the trust during the
period covered by the financial statements filed
herewith:
Not Applicable.
(b) Furnish the following information with respect to any
fee or any participation in fees received by the
depositor from any underlying investment company or
any affiliated person or investment adviser of such
company:
The Company has not received any such fee or
participation.
(1) The nature of such fee or participation.
Not Applicable.
(2) The name of the person making payments.
Not Applicable.
(3) The nature of the services rendered in
consideration for such fee or participation.
Not Applicable.
(4) The aggregate amount received during the
last fiscal year covered by the financial
statements filed herewith.
Not Applicable.
27. Describe the general character of the business engaged in by
the depositor including a statement as to any business other
than that of depositor of the trust. If the depositor acts or
has acted in any capacity with respect to any investment
company or companies other than the trust, state the name or
names of such company or companies, their relationship, if
any, to the trust, and the nature of the depositor's
activities therewith. If the depositor has ceased to act in
such named capacity, state the date of and circumstances
surrounding such cessation.
The Company is a California life insurance company licensed to
sell life insurance in the District of Columbia, Puerto Rice,
Virgin Islands and Guam and all states except New York.
The Company offers registered variable life and annuity
policies through other separate accounts registered as unit
investment trusts and, one, Separate Account Fund B, as a
management investment company. The Company serves as
investment adviser to Separate Account Fund B.
Officials and Affiliated Persons of Depositor
28. (a) Furnish as at latest practicable date the
following information with respect to the depositor
of the trust, with respect to each officer, director,
or partner of the depositor, and with respect to each
natural person directly or indirectly owing or
holding with power to vote 5% or more of the
outstanding voting securities of the depositor.
(i) name and principal business address.
(ii) nature of relationship or affiliation with
depositor of the trust; (iii) ownership of all
securities of the depositor; (iv) ownership of all
securities of the trust; (v) other companies of which
each person named above is presently officer,
director or partner.
See 28(b) and 29, below.
(b) Furnish a brief statement of the business
experience during the last five years of
each officer, director or partner of the
depositor.
The principal occupations and business
experience for the last five years of
Directors and Executive Officers of the
Company are as follows:
DIRECTORS AND PRINCIPAL OFFICERS OF
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
Thomas J. Cusack* Director, Chairman, President and Chief Executive
Officer of TOLIC since 1997.
Director, President and Chief
Executive Officer of TOLIC since
1995. Senior Vice President of
Transamerica Corporation from 1993
to 1995. Vice President of Corporate
Development of General Electric
Company from 1989 to 1993.
Nooruddin S. Veerjee, FSA* Director, President
of Group Pension Division of TOLIC
since 1993. Senior Vice President of
TOLIC from 1992 to 1993. Vice
President of TOLIC from 1990 to
1992.
James W. Dederer, CLU* Director, Executive Vice President,
General Counsel and Corporate
Secretary of TOLIC since 1988.
David E. Gooding* Director, Executive Vice President and Chief
Information Officer of TOLIC since 1992.
T. Desmond Sugrue* Director and Executive Vice President of TOLIC
since 1997. Senior Vice President of TOLIC from
1996 to 1997. Self-employed - Consulting from
1994 to 1996. Employed at Bank of America
from 1988 to 1993.
Robert Abeles* Director, Executive Vice
President and Chief Financial
Officer of TOLIC since 1996.
Executive Vice President and Chief
Financial Officer of First
Interstate Bank of California from
1990 to 1996.
Nicki Bair* Senior Vice President of TOLIC
since 1996. Vice President of TOLIC
from 1991 to 1996.
Roy Chong-Kit* Senior Vice President and
Actuary of TOLIC since 1997. Vice
President and Actuary of TOLIC from
1995 to 1997. Actuary of TOLIC from
1988 to 1995.
Bruce Clark* Senior Vice President and
Chief Actuary of TOLIC since 1996.
Vice President and Actuary of TOLIC
from 1994 to 1996. Vice President
and Associate Actuary of TOLIC from
1988 to 1994.
Daniel E. Jund, FLMI* Senior Vice President of TOLIC since 1988.
Karen MacDonald* Director, Senior Vice President and Corporate
Actuary of TOLIC since 1995. Senior
Vice President and Corporate Actuary
from 1992 to 1995.
William N. Scott, CLU, FLMI** Senior Vice
President of TOLIC since 1993. Vice
President of TOLIC from 1988 to
1993.
Claude W. Thau, FSA** Senior Vice President
of TOLIC since 1996. Vice President
of TOLIC from 1985 to 1996.
Ron F. Wagley* Senior Vice President and
Chief Agency Officer of TOLIC since
1993. Vice President of TOLIC from
1989 to 1993.
William R. Wellnitz, FSA*** Senior Vice
President and Actuary of TOLIC since
1996. Vice President and Reinsurance
Actuary of TOLIC from 1988 to 1996.
*The business address is 1150 South Olive Street, Los Angeles, California 90015.
**The business address is 1100 Walnut Street, 23rd Floor, Kansas City, Missouri
64106. ***The business address is 401 North Tryon Street, Charlotte, North
Carolina 28202.
<PAGE>
Companies Owning Securities of Depositor
29. Furnish as at latest practicable date the following
information with respect to each company which directly or
indirectly owns, controls or holds with power to vote 5% or
more of the outstanding voting securities of depositor.
The Company is a wholly-owned subsidiary of Transamerica
Insurance Corporation of California, 1150 South Olive Street,
Los Angeles, which in turn is a wholly-owned subsidiary
ofTransamerica Corporation 600 Montgomery Street, San
Francisco, California. Transamerica Corporation is organized
under the laws of the state of Delaware.
Controlling Persons
30. Furnish as at latest practicable date the following
information with respect to any person other than those
covered by Items 28, 29, and 42 who directly or indirectly
controls the depositor.
None.
Compensation of Officers and Directors
Compensation of Officers of Depositor
31. Furnish the following information with respect to the
remuneration for services paid by the depositor during the
last fiscal year covered financial statements filed herewith;
(a) directly to each of the
officers or partners or the
depositor directly receiving
the three highest amounts of
remuneration;
None. No person received
compensation for services
rendered to the trust
(separate account).
(b) directly to all officers or
---------------------------
partners of the depositor as a
------------------------------
group exclusive of persons
--------------------------
whose remuneration is included
------------------------------
under Item 31(a), stating
-------------------------
separately the aggregate
------------------------
amount paid by the depositor
----------------------------
itself and the aggregate
------------------------
amount paid by all the
----------------------
subsidiaries;
-------------
None. No person received
compensation for services
rendered to the trust
(separate account).
(c) indirectly or through
subsidiaries to each of the
officers or partners of the
depositor;
None. No person received
compensation for services
rendered to the trust
(separate account).
Compensation of Directors
32. Furnish the following information with respect to the
remuneration for services, exclusive of remuneration reported
under Item 31, paid by the depositor during the last fiscal
year covered by financial statements filed herewith:
(a) the aggregate direct
remuneration to directors;
None.
(b) indirectly or through
subsidiaries to directors.
Not Applicable.
Compensation to Employees
33. (a) Furnish the following
-----------------------------
information with respect to the
--------------------------------
aggregate amount of remuneration
--------------------------------
for services of all employees of
--------------------------------
the depositor (exclusive of
-------------------------------
persons whose remuneration is
--------------------------------
reported in Items 31 and 32) who
--------------------------------
received remuneration in excess
--------------------------------
of $10,000 during the last
-------------------------------
fiscal year covered by financial
--------------------------------
statements filed herewith from
--------------------------------
the depositor and any of its
--------------------------------
subsidiaries.
------------
Not applicable.
(b) Furnish the following services
------------------------------
paid directly during the last
-----------------------------
fiscal year covered by financial
--------------------------------
statements filed herewith to the
--------------------------------
following classes of persons
----------------------------
(exclusive of those persons
---------------------------
covered by Item 33(a)): (1)
---------------------------
Sales managers, branch managers,
--------------------------------
district managers and other
---------------------------
persons supervising the sale of
-------------------------------
registrant's securities; (2)
----------------------------
Salesmen, sales agents,
-----------------------
canvassers and other persons
----------------------------
making solicitations but not in
-------------------------------
supervisory capacity; (3)
-------------------------
Administrative and clerical
---------------------------
employees; and (4) others
-------------------------
(specify). If a person is
--------------------------
employed in more than one
-------------------------
capacity, classify according to
-------------------------------
predominant type of work.
------------------------
Not Applicable.
Compensation to Other Persons
34. Furnish the following information with
--------------------------------------
respect to the aggregate amount of
----------------------------------
compensation for services paid any person
-----------------------------------------
(exclusive of persons whose remuneration
----------------------------------------
is reported in Items 31, 32 and 33),
------------------------------------
whose aggregate compensation in
-------------------------------
connection with services rendered with
--------------------------------------
respect to the trust in all capacities
--------------------------------------
exceed $10,000 during the last fiscal
-------------------------------------
year covered by financial statements
------------------------------------
filed herewith from the depositor and any
-----------------------------------------
of its subsidiaries.
-------------------
Not Applicable.
IV. DISTRIBUTION AND REDEMPTION OF SECURITIES
Distribution of Securities
35. Furnish the names of the states in which sales of the trust's
securities (a) are currently being made, (b) are presently
proposed to made, and (c) have been discontinued, indicating by
appropriate letter the status with respect to each state.
(a) Sale of the Policies has not
commenced in any state.
(b) Following the effectiveness of
the Separate Account VUL-1's
registration statement under the
Securities Act of 1933, and
obtaining required approvals
under state law, the Company
proposes issuing the Policies in
the District of Columbia, Virgin
Islands, and Puerto Rico and in
all states except New York and
Hawaii.
(c) Not Applicable.
36. If sales of the trust's securities have at any time since
January 1, 1936 been suspended for more than a month, describe
briefly the reasons for such suspension.
Not Applicable.
37. (a) Furnish the following
---------------------
information with respect to each
--------------------------------
instance where subsequent to
----------------------------
January 1, 1937, any federal or
-------------------------------
state governmental officer,
---------------------------
agency, or regulatory body
--------------------------
denied authority to distribute
------------------------------
securities of the trust,
------------------------
excluding a denial which was
----------------------------
merely a procedural step prior
------------------------------
to any determination by such
----------------------------
officer, etc., and which denial
-------------------------------
was subsequently rescinded.
--------------------------
(1) Name of officer, agency
or body
None.
(2) Date of denial
Not Applicable.
(3) Brief statement of
reasons given for denial
Not Applicable.
(b) Furnish the following
---------------------
information with regard to each
-------------------------------
instance where, subsequent to
-----------------------------
January 1, 1937, the authority
------------------------------
to distribute securities of the
-------------------------------
trust has been revoked by any
-----------------------------
federal or state governmental
-----------------------------
officer, agency or regulatory
-----------------------------
body.
----
(1) Name of officer, agency
or body
None.
(2) Date of revocation
Not Applicable.
(3) Brief statement of
reasons given for
revocation
Not Applicable.
38. (a) Furnish a general description of the method of
distribution of securities of the trust.
Transamerica Securities Sales Corporation, an affiliate
of Company, will act as principal underwriter of the
Policies pursuant to a Distribution Agreement with the
Company and the Separate Account VUL-1. Transamerica
Securities Sales Corporation is a broker-dealer and a
member of the National Association of Securities
Dealers, Inc. The policies will be sold by agents of
the Company who are registered representatives of
independent broker-dealers.
(b) State the substance of any
--------------------------
current selling agreement
-------------------------
between each principal
----------------------
underwriter and the trust or the
--------------------------------
depositor, including a statement
--------------------------------
as to the inception and
-----------------------
termination dates of the
------------------------
agreement, any renewal and
--------------------------
termination provisions, and my
------------------------------
assignment provisions.
---------------------
The Company and Separate Account VUL-1 will execute a
Distribution Services Agreement ("Agreement")
withTransamerica Securities Sales Corporation, its
principal underwriter. Unless otherwise terminated, the
Agreement shall continue in effect from year to year.
The Agreement maybe terminated by any party at any time
upon giving 60 days' written notice to the other
parties, and terminates automatically in the event of
its assignment.
(c) State the substance of any
--------------------------
current agreements or
---------------------
arrangements of each principal
------------------------------
underwriter with dealers,
-------------------------
agents, salesmen, etc., with
----------------------------
respect to commissions and
--------------------------
overriding commissions,
-----------------------
territories, franchises,
------------------------
qualifications, and
-------------------
revocations. If the trust is
-----------------------------
the issuer of periodic payment
------------------------------
plan certificates, furnish
--------------------------
schedules of commissions and the
--------------------------------
bases thereof. In lieu of a
----------------------------
statement concerning schedules
------------------------------
of commissions, such schedules
------------------------------
of commissions may be filed as
------------------------------
Exhibit A(3)(c).
----------------
Information Concerning Principal Underwriter
39. (a) State the form of organization
------------------------------
of each principal underwriter of
--------------------------------
securities of the trust, the
----------------------------
name of the state or other
--------------------------
sovereign power under the laws
------------------------------
of which each underwriter was
-----------------------------
organized and the date of
-------------------------
organization.
------------
The principal underwriter of the policies, Transamerica
Securities Sales Corporation was incorporated under the
laws of Maryland, February 26, 1986.
(b) State whether any principal
underwriter currently
distributing securities of the
trust is a member of the
National Association of
Securities Dealers, Inc. (NASD).
The Policies will be distributed only by broker-dealers
which are members of the NASD.
40. (a) Furnish the following
---------------------
information with respect to all
-------------------------------
fees received by each principal
-------------------------------
underwriter of the trust from
-----------------------------
the sale of securities of the
-----------------------------
trust and any other functions in
--------------------------------
connection therewith exercised
------------------------------
by such underwriter in such
---------------------------
capacity or otherwise during the
--------------------------------
period covered by the financial
-------------------------------
statement filed herewith.
------------------------
None.
(b) Furnish the following
---------------------
information with respect to any
-------------------------------
fee or any participation in fees
--------------------------------
received by each principal
--------------------------
underwriter from any underlying
-------------------------------
investment company or any
-------------------------
affiliated person or investment
-------------------------------
adviser of such company:
-----------------------
None.
(1) The nature of such fee or
participation.
None.
(2) The name of the person making payment.
None.
(3) The nature of the services rendered in
consideration for such fee or participation.
None.
(4) The aggregate amount received during the last
fiscal year covered by the financial statements
filed herewith.
None.
41. (a) Describe the general character
------------------------------
of the business principal
-------------------------
underwriter, including a
------------------------
statement as to any business
----------------------------
other than the distribution of
------------------------------
securities of the trust. If a
------------------------------
principal underwriter acts or
-----------------------------
has acted in any capacity with
------------------------------
respect to any investment
-------------------------
company or companies other than
-------------------------------
the trust, state the name or
----------------------------
names of such company or
------------------------
companies, their relationship,
------------------------------
if any, to the trust and the
----------------------------
nature of such activities. If a
--------------------------------
principal underwriter has ceased
--------------------------------
to act in such named capacity,
------------------------------
state the date of and
---------------------
circumstances surrounding such
------------------------------
cessation.
---------
Transamerica Securities Sales Corporation is a
registered broker-dealer and a member of the NASD.
Transamerica Securities Sales Corporation acts as
principal underwriter of variable annuity and variable
life contracts issued by separate accounts of the
Company and of variable annuities issued by
Transamerica Life Insurance and Annuity Company and of
Premier Funds, Inc. The variable contracts issued by
the Company are sold through registered representatives
of affiliated broker-dealers independent broker-dealers
who are also licensed as insurance agents of the
Company.
(b) Furnish as at latest practicable
--------------------------------
date the address of each branch
-------------------------------
office of each principal
------------------------
underwriter currently selling
-----------------------------
securities of the trust and
---------------------------
furnish the name and residence
------------------------------
address of the person in charge
-------------------------------
of such office.
--------------
Not Applicable. The Separate
Account VUL-1 is not yet issuing
securities.
(c) Furnish the number of individual
--------------------------------
salesmen of each principal
--------------------------
underwriter through whom any of
-------------------------------
the securities of the trust were
--------------------------------
distributed for the last fiscal
-------------------------------
year of the trust covered by the
--------------------------------
financial statements filed
--------------------------
herewith and furnish the
------------------------
aggregate amount of compensation
--------------------------------
received by such salesmen in
----------------------------
such year.
---------
Not Applicable. The Policies
have not yet been issued.
42. Furnish as at latest practicable date the following information
with respect to each principal underwriter currently
distributing securities of the trust and with respect to each of
the officers, directors or partners of such underwriter
(ownership of securities of the Trust).
Not Applicable. The Policies have not
yet been issued.
43. Furnish, for the last fiscal year covered
-----------------------------------------
by the financial statements filed
---------------------------------
herewith, the amount of brokerage
---------------------------------
commissions received by any principal
-------------------------------------
underwriter who is a member of a national
-----------------------------------------
securities exchange and who is currently
----------------------------------------
distributing the securities of the trust
----------------------------------------
or effecting transactions for the trust
---------------------------------------
in the portfolio securities of the trust.
----------------------------------------
Not Applicable.
Offering Price or Acquisition Valuation of
Securities of the Trust
44. (a) Furnish the following
---------------------
information with respect to the
-------------------------------
method of valuation used by the
-------------------------------
trust for the purposes of
-------------------------
determining the offering price
------------------------------
to the public of securities
---------------------------
issued the trust or the
-----------------------
valuation of shares or interests
--------------------------------
in the underlying securities
----------------------------
acquired by the holder of a
---------------------------
periodic payment plan
---------------------
certificate.
The net payment equals the payment made less the 4.0
payment expense charge. Each net payment is allocated
to the Fixed Account of the Company or to the
sub-account(s) selected by the Policy owner.
Allocations to the sub-accounts are credited to the
Policy in the form of Units. Units are credited
separately for each sub-account. The number of Units of
each sub-account credited to the Policy is equal to the
portion of the net payment allocated to the
sub-account, divided by the dollar value of the
applicable Unit as of the valuation date the payment is
received at the Company'sVariable Life Service Center.
The number of Units resulting from each net premium
will remain fixed unless changed by a subsequent split
of Unit value, transfer, partial withdrawal or
surrender. In addition, if the Company deducts the
monthly insurance protection charges or other charges
from Policy Value in a sub-account (as a result of
Policy owner instructions or the pro rata allocation of
charges if the Policy owner has given no instruction),
each such deduction will result in cancellation of a
number of Units equal in value to the charge allocated
to the sub-account. The dollar value of an Unit of each
sub-account varies from valuation date to valuation
date based on the investment experience of that
sub-account. That experience, in turn, will reflect the
investment performance, expenses and charges of the
respective underlying portfolios. The value of aUnit is
set at $1.00 on the first Valuation Date of each
sub-account.
Net Investment Factor - The net investment factor
measures the investment performance of a sub-account of
the Separate Account VUL-1 during the valuation period
just ended. The net investment factor for each
sub-account is equal to 1.0000 plus the number arrived
at by dividing (a) by (b) and subtracting (c) and (d)
from the result, where
(a) is the investment income
of that sub-account for
the valuation period,
plus capital gains,
realized or unrealized,
credited during the
valuation period; minus
capital losses, realized
or unrealized, charged
during the valuation
period; adjusted for
provisions made for
taxes, if any;
(b) is the value of that sub-account's assets at the
beginning of the valuation period;
(c) is a charge for mortality
and expense risks for
each day in the valuation
period currently equal to
.65%, on an annualized
basis, of the
sub-account's assets
(which may be increased
or decreased by the
Company, but may not
exceed 0.90%); and
(d) is the Separate Account
VUL-1 administration
charge for each day in
the valuation period
equal on an annual basis
to 0.15% of the daily net
asset value of that
sub-account (applicable
only during the first ten
Policy years).
The net investment factor may be greater or less than
one. Therefore, the value of a Unit may increase or
decrease. The Policy owner bears the investment risk.
Allocations to the Fixed Account are not converted into
Units, but are credited interest at a rate periodically
set by the Company.
(b) Furnish a specimen schedule showing the components of
the offering price of the trust's securities as of the
latest practicable date.
No Policies have been issued or offered for sale to the
public.
(c) If there is any variation in
----------------------------
offering price of the trust's
------------------------------
securities to any person or
---------------------------
classes of persons other than
-----------------------------
underwriters, state the nature
------------------------------
and amount of such variation and
--------------------------------
indicate the person or classes
------------------------------
of persons to whom such offering
--------------------------------
is made.
-------
At any time, the "price" of a Unit of a sub-account
will be the same for all Policy owners. However, the
cost of insurance charges for the Policies will not be
the same for all Policy owners. The insurance
principles of pooling and distribution of mortality
risks is based upon the assumption that each Policy
owner pays a cost of insurance charge commensurate with
the Insured's mortality risk, which is actuarially
determined based upon factors such as age, sex, health
and occupation. In the context of life insurance, a
uniform mortality charge (the "cost of insurance
charge") for all Insureds would discriminate unfairly
in favor of those Insureds representing greater
mortality risks to the disadvantage of those
representing lesser risks. Accordingly, there will be a
different "price" for each actuarial category of Policy
owners because different cost of insurance rates will
apply. The "price" will also vary based on net amount
at risk. The Policies will be offered and sold pursuant
to this cost of insurance schedule, the Company's
underwriting standards, and in accordance with state
insurance laws. Such laws prohibit unfair
discrimination among Insureds, but recognize that
premiums must be based upon factors such as age, health
and occupation. Tables showing the maximum cost of
insurance charges will be delivered as part of the
Policy.
45. Furnish the following information with respect to any suspension
of the redemption rights of the securities issued by the trust
during the three fiscal years covered by the financial
statements filed herewith:
Not Applicable.
(a) by whose action redemption
rights were suspended.
Not Applicable.
(b) the number of days' written notice given to security
holders prior to suspension of redemption rights.
Not Applicable.
(c) reason for suspension.
Not Applicable.
(d) period during which suspension was in effect.
Not Applicable.
46. (a) Furnish the following
information with respect to the
method of determining the
redemption or withdrawal
valuation of securities issued
by the trust:
(1) The source of quotations used to determine the
value of portfolio securities.
The sub-accounts invest only in shares of the
portfolios. Shares of each are sold and redeemed
at their net asset value as next computed after
receipt of the purchase or redemption order.
Each purchase or redemption is confirmed in a
written statement of the number of shares
purchased or redeemed and the aggregate number
of shares currently held by the
respective-sub-accounts. See Item 44(a).
(2) Whether opening, closing, bid, asked or any
other price is used.
See 44(a) and 46(a)(1), above.
(3) Whether price is as of the day of sale or as of
any other time.
See 44(a) and 46(a)(1), above.
(4) A brief description of
----------------------
the methods used by
-------------------
registrant for
--------------
determining other assets
------------------------
and liabilities including
-------------------------
accrual for expenses and
------------------------
taxes (including taxes on
-------------------------
unrealized appreciation).
------------------------
Policy Value and Surrender Value - The Policy
value is the total amount available for
investment and is equal to the sum of the
accumulation in the Fixed Account and the value
of the Units in the sub-accounts. The Policy
value is used in determining the surrender value
(the Policy value less any outstanding loan and
applicable surrender charges). There is no
guaranteed minimum Policy value. Because Policy
value on any date depends upon a number of
variables, it cannot be predetermined. Policy
value and surrender value will reflect frequency
and amount of net premiums paid, interest
credited to accumulations in the Fixed Account,
the investment performance of the chosen
sub-accounts of the Separate Account VUL-1, any
partial withdrawals, any loans, any loan
repayments, any loan interest paid or credited,
and any charges assessed in connection with the
Policy.
Calculation of Policy Value - The Policy value
is determined first on the date of issue and
thereafter on each valuation date. On the date
of issue, the Policy value will be the net
payments received, plus any interest earned
during the period when payments are held in the
Fixed Account (before being transferred to the
Separate Account VUL-1) less any monthly
insurance protection charges due. On each
valuation date after the date of issue the
Policy value will be:
(a) the aggregate of
the values in each
of the sub-accounts
on the valuation
date, determined
for each
sub-account by
multiplying the
value of a Unit in
that sub-account on
that date by the
number of such
Units allocated to
the Policy; plus
----
(b) the value in the Fixed Account (including
any amounts transferred to the Fixed
Account with respect to a loan).
Thus, the Policy value is determined by
multiplying the number of Units in each
sub-account by the value of the applicable Units
on the particular valuation date, adding the
products, and adding the amount of the
accumulations in the Fixed Account, if any. Also
see Item 44(a), above.
Because of its current tax status, the Company
does not expect to incur any federal income tax
liabilities that would be charged to the
Separate Account VUL-1, and the company does not
intend to make a charge for federal income
taxes. The Company may, however, incur state and
local taxes (in addition to premium taxes) in
several states. At present, these taxes are not
significant. If there is a material change in
state or local tax laws, charges for such taxes,
if any, attributable to the Separate Account
VUL-1 may be made.
(5) Other items which registrant deducts from the
net asset value in computing redemption value of
its securities.
Units of the sub-accounts
will be redeemed at net
asset value. However,
under the Policies, a
surrender or partial
redemption may be subject
to Surrender charges.
See 13(a), "SURRENDER
CHARGES" and "PARTIAL
WITHDRAWAL"
(6) Whether adjustments are made for fractions.
No adjustments are made for fractions.
(b) Furnish a specimen schedule showing the components of
the redemption price to the holders of the trust's
securities as of the latest practicable date.
No policies have been issued or offered for sale to the
public.
Purchase and sale of interests in underlying
securities from and to Security Holders
47. Furnish a statement as to the procedure
---------------------------------------
with respect to the maintenance of a
------------------------------------
position in the underlying securities or
----------------------------------------
interests in the underlying securities,
---------------------------------------
the extent and nature thereof and the
-------------------------------------
person who maintains such a position.
-------------------------------------
Include a description of the procedure
--------------------------------------
with respect to the purchase of
-------------------------------
underlying securities or interests in the
-----------------------------------------
underlying securities from security
-----------------------------------
holders who exercise redemption or
----------------------------------
withdrawal rights and the sale of such
--------------------------------------
underlying securities and interests in
--------------------------------------
the underlying securities to other
----------------------------------
security holders. State whether the
------------------------------------
method of valuation of such underlying
--------------------------------------
securities or interests in underlying
-------------------------------------
securities differs from that set forth in
-----------------------------------------
Items 44 and 46. If any item of
--------------------------------
expenditure included in the determination
-----------------------------------------
of the valuation is not or may not
----------------------------------
actually be incurred or expended, explain
-----------------------------------------
the nature of such item and who may
-----------------------------------
benefit from the transaction.
----------------------------
All purchases and redemptions of shares of the portfolios are at
net asset value. The Company will redeem sufficient shares of
the portfolios to pay certain life insurance proceeds, benefits
at maturity, or surrender proceeds, or for other purposes
contemplated by the Policy.
V. INFORMATION CONCERNING THE TRUSTEE OR CUSTODIAN
48. Furnish the following information as to each trustee or
custodian of the trust.
The Company maintains custody of all
securities of the Separate Account VUL-1. The Separate
Account VUL-1 has no trustees. See Item 3.
(a) Name and principal address:
Transamerica Occidental Life
Insurance Company
1150 South Olive Street
Los Angeles, CA 90015
(b) Form of organization:
Stock life insurance company.
(c) State or other sovereign power
under the laws of which the
trustee or custodian was
organized.
Incorporated under the laws ofCalifornia.
(d) Name of governmental supervising or examining
authority.
California Department of
Insurance.. The Company is also
subject to examination by the
insurance departments of each
state in which it does business.
49. State the basis for payment of fees or
--------------------------------------
expenses of the trustee or custodian for
----------------------------------------
services rendered with respect to the
-------------------------------------
trust and its securities, and the amount
----------------------------------------
thereof for the last fiscal year.
---------------------------------
Indicate the person paying such fees or
---------------------------------------
expenses. If any fees or expenses are
--------------------------------------
prepaid, state the unearned amounts.
-----------------------------------
The Company is not paid a separate fee for expenses or services
rendered as custodian of the Separate Account VUL-1.
A daily charge currently equivalent to an effective annual rate
of 0.65% of the daily net asset value of each sub-account is
imposed to compensate the Company for its assumption of certain
mortality and expense risks. Such expense risks include the
risks of increased costs associated with the custodian function.
Additionally, during the first twenty Policy years, we assess a
charge on an annual basis of 0.15% of the daily net asset value
in each sub-account for administration costs associated with the
Separate Account VUL-1. Currently, we waive this charge after
the tenth Policy year.
The contingent surrender charge (See 13(a)) includes a component
for administrative services, which may be deemed to include
custodial services.
As the Separate Account VUL-1 has not begun business operations,
no fees have been paid.
50. State whether the trustee or custodian or any other person has
or may create a lien on the assets of the trust, and, if so,
give full particulars, outlining the substance of the provisions
of any indenture or agreement with respect thereto.
None. Under California law, the assets supporting Policy
reserves in the Separate Account VUL-1 may not be charged with
any liabilities arising out of any other business of the
Company.
VI. INFORMATION CONCERNING INSURANCE OF HOLDERS OF
SECURITIES
51. Furnish the following information with respect to insurance of
holders of securities:
Interests in the Separate Account VUL-1 are sold only to fund
the Policies. Other than the Policies themselves, no insurance
is sold to Policy owners with interests in the sub-accounts, in
connection with such interests.
(a) The name and address of the
insurance company.
Transamerica Occidental Life
Insurance Company
1150 South Olive Street
Los Angeles, CA 90015
(b) The types of policies and
whether individual or group
policies.
The Policies are individual flexible payment variable
life insurance policies.
(c) The types of risks Insured and excluded.
The Policies are offered to individuals age 80 and
under, subject to our underwriting standards. We assume
the risk that the deduction made for mortality and
expense risks will prove inadequate to cover actual
insurance costs and expenses.
(d) The coverage of the policies.
The Policies provide insurance coverage on the life of
the Insured. The minimum death benefit is stated in
each Policy. Death Benefits will be reduced by any
outstanding loans and any due and unpaid monthly
insurance protection charges.
(e) The beneficiaries of such
policies and the uses to which
the proceeds of policies must be
put.
The beneficiary is named by the Policy owner to receive
the death benefits. The interest of any beneficiary
will be subject to any assignment made by the Policy
owner. The Policy owner may declare a beneficiary to be
revocable (changed any time by written request) or
irrevocable (may be changed only with the written
consent of the beneficiary). The interest of a
beneficiary who dies before the Insured will pass to
surviving beneficiaries. If all beneficiaries die
before the Insured, the death benefits will pass to the
Policy owner.
(f) The terms and manner of cancellation and of
reinstatement. See Item 17(a) for the manner of
cancellation and reinstatement.
(g) The method of determining the amount of premiums to be
paid by holders of securities.
See answers to Item 13(a) for amount of charges imposed
and 44(a) and 44(c) for the manner in which the
payments are determined.
(h) The amount of aggregate premiums paid to the insurance
company during the last fiscal year.
We have not yet begun issuing the Policies.
(i) Whether any person other than the insurance company
receives any part of such premiums, the name of each
such person and the amounts involved, and the nature of
the services rendered therefor.
No person other than the Company receives any part of
the amounts deducted for assumption of mortality and
expense risks. However, the Company may from time to
time enter into reinsurance agreements with State
Mutual or other insurance companies under which certain
insurance risks, premium income and related expenses
are assumed by State Mutual or such other insurance
companies.
(j) The substance of any other material provisions of any
indenture or agreement of the trust relating to
insurance.
None.
VII. POLICY OF REGISTRANT
52. (a) Furnish the substance of the
----------------------------
provisions of any indenture or
------------------------------
agreement with respect to the
-----------------------------
conditions upon which and the
-----------------------------
method of selection by which
----------------------------
particular portfolio securities
-------------------------------
must or may be eliminated from
------------------------------
the assets of the trust or must
-------------------------------
or may be replaced by other
---------------------------
portfolio securities. If an
----------------------------
investment adviser or other
---------------------------
person is to be employed in
---------------------------
connection with such selection,
-------------------------------
elimination or substitution,
----------------------------
state the name of such person,
------------------------------
the nature of any affiliation to
--------------------------------
the depositor, trustee or
-------------------------
custodian, and any principal
----------------------------
underwriter, and the amount of
------------------------------
remuneration to be received for
-------------------------------
such services. If any
----------------------
particular person is not
------------------------
designated in the indenture or
------------------------------
agreement, describe briefly the
-------------------------------
method of selection of such
---------------------------
person.
------
The investment Policy of each sub-account of the
Separate Account VUL-1 is to invest in a particular
portfolio.
The Company reserves the right, subject to applicable
law, to make additions to, deletions from, or
substitutions for the shares that are held in the
sub-accounts of the Separate Account VUL-1 or that the
sub-accounts of the Separate Account VUL-1 may
purchase. If the shares of an portfolio are no longer
available for investment or if in the Company's
judgment further investment in any portfolio should
become inappropriate in view of the purposes of the
Separate Account VUL-1 or the affected sub-account, the
Company may redeem the shares of that portfolio and
substitute shares of another registered open-end
management company. The Company will not substitute any
shares attributable to a Policy interest in a
sub-account without notice and prior approval of the
SEC and state insurance authorities, to the extent
required by the 1940 Act or other applicable law.
The Company also reserves the right to establish
additional sub-accounts of the Separate Account VUL-1,
each of which would invest in shares corresponding to a
new portfolio or in shares of another investment
company having a specified investment objective.
Subject to applicable law and any required SEC
approval, the Company may, in its sole discretion,
establish new sub-accounts or eliminate one or more
sub-accounts if marketing needs, tax considerations or
investment conditions warrant. Any new sub-accounts may
be deemed available to existing Policy owners on a
basis to be determined by the Company. If the Company
deems it to be in the best interest of Policy owners,
and subject to any approvals that may be required under
applicable law, the Variable Account or sub-account may
be operated as a management company under the 1940 Act,
may be deregistered if registration is no longer
required, or may be combined with other separate
accounts of the company.
If any of these substitutions or changes are made, the
Company way by appropriate endorsement change the
Policy to reflect the substitution or change.
(b) Furnish the following information with respect to each
transaction involving the elimination of any underlying
security during the period covered by the financial
statements filed herewith.
Not Applicable.
(c) Describe the policy of the trust with respect to the
substitution and elimination of the underlying
securities of the trust with respect to:
(1) the grounds for
elimination and
substitution;
See 52(a), above.
(2) the type of securities
which may be substituted
for any underlying
security;
See 52(a), above.
(3) whether the acquisition
-----------------------
of such substituted
-------------------
security or securities
----------------------
would constitute the
--------------------
concentration of
----------------
investment in a
---------------
particular industry or
----------------------
group of industries or
----------------------
would conform to a policy
-------------------------
of concentration of
-------------------
investment in a
---------------
particular; industry or
-----------------------
group of industries;
-------------------
Not Applicable.
(4) whether such substituted
securities may be the
securities of any other
investment company; and
See 52(a), above.
(5) the substance of the
--------------------
provisions of any
-----------------
indenture or agreement
----------------------
which authorize or
------------------
restrict the policy of
----------------------
the registrant in this
----------------------
regard.
------
See 52(a) above.
(d) Furnish a description of any (exclusive of policies
covered by paragraph (a) and (b) herein) of the trust
which is deemed a matter of fundamental policy and
which is elected to be treated as such.
None.
Regulated Investment Company
53. (a) State the taxable status of the
trust.
Because of its current tax status, the Company does not
expect to incur any federal income tax liabilities that
would be charged to the Separate Account VUL-1, and the
Company does not intend to make a charge for federal
income taxes. The Company may, however, incur state and
local taxes (in addition to premium taxes) in several
states. At present, these taxes are not significant. If
there is a material change in state or local tax laws,
charges for such taxes, if any, attributable to the
Separate Account VUL-1 may be made.
See also 46(a), above.
(b) State whether the trust
-----------------------
qualified for the last taxable
------------------------------
as a regulated investment
-------------------------
company as defined in Section
-----------------------------
851 of the Internal Revenue Code
--------------------------------
of 1954, and state its present
------------------------------
intention with respect to such
------------------------------
qualification during the current
--------------------------------
taxable year.
------------
Not Applicable.
VIII. FINANCIAL AND STATISTICAL INFORMATION
54. If the trust is not the issuer of periodic payment plan
certificates, furnish the following information with respect to
each class or series of its securities.
Not Applicable.
55. If the trust is the issuer of periodic
--------------------------------------
payment plan certificates, a transcript
---------------------------------------
of a hypothetical account shall be filed
----------------------------------------
in approximately the following form on
--------------------------------------
the basis of the certificate calling for
----------------------------------------
the smallest amount of payments. The
-------------------------------------
schedule shall cover a certificate of the
-----------------------------------------
type currently being sold assuming that
---------------------------------------
such certificate had been sold at a date
----------------------------------------
approximately ten years prior to the date
-----------------------------------------
of registration or to the approximate
-------------------------------------
date of organization of the trust.
---------------------------------
Not Applicable.
56. If the trust is the issuer of periodic
--------------------------------------
payment plan certificates, furnish by
-------------------------------------
years for the period covered by the
-----------------------------------
financial statements filed herewith in
--------------------------------------
respect of certificates sold during such
----------------------------------------
period, the following information for
-------------------------------------
each fully paid type and each installment
-----------------------------------------
payment type of periodic payment plan
-------------------------------------
certificate currently being issued by the
-----------------------------------------
trust.
-----
Not Applicable.
57. If the trust is the issuer of periodic payment plan
certificates, furnish by years for the period covered by
financial statements filed herewith the following information
for each installment payment type of periodic payment plan
certificate currently being issued by the trust.
Not Applicable.
58. If the trust is the issuer of periodic plan certificates furnish
the following information for each installment periodic payment
plan certificate outstanding as at the latest practicable date.
Not Applicable.
59. Financial Statements:
Financial Statements of the Separate
Account VUL-1
Financial statements, if any, will be contained in a
pre-effective amendment to the registration statement for the
Policy on Form S-6 filed under the Securities Act of 1933. They
are incorporated
herein by reference.
Financial Statements of the Depositor
The Financial Statements of the Company will be contained in a
pre-effective amendment to the registration statement on Form
S-6 filed by the Registrant pursuant the Securities Act of 1933.
They are incorporated herein by reference.
IX. EXHIBITS
A. Furnish the most recent form of the
following:
(1) Indenture
Certified Copy of vote of Board of Directors of
Transamerica Occidental Life Insurance Company
datedDecember 6, 1997, establishing the Transamerica
Occidental Life Separate Account VUL-1.
(2) Not Applicable.
(3) (a) Form of Sales and
Administrative Services
Agreement.*
(b) Registered Representative
Agreement.*
(4) Not Applicable.
(5) Form of Policy and Policy riders.
(6) Organizational documents of the
Company.
(7) Not applicable.
(8) (a) Forms of Participation
Agreements
(9) Not applicable.
(10) Form of Application for Policy.
B. (1) None.
(2) None.
C. None.
*To be added by pre-effective amendment to the Form S-6 registration
statement filed by the Separate Account VUL-1 and incorporated.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Act of 1933, the registrant,
Transamerica Occidental Life Separate Account VUL-1, has duly caused this
registration statement to be signed on its behalf by the undersigned thereunto
duly authorized, and its seal to be hereunto affixed and attested, all in the
City of Los Angeles, and the State of California, on this ___ day of October,
1997.
Transamerica
Occidental Life Separate Account VUL-1
(Registrant)
(SEAL)
Attest:___________________________
By:__________________________________________
(Title)
(Name) Aldo Davanzo
(Title) Vice President and Assistant Secretary
Transamerica Occidental Life Insurance Company
Pursuant to the requirements of the Securities Act of 1933, Transamerica
Occidental Life Insurance Company has duly caused this registration statement to
be signed on its behalf by the undersigned thereunto duly authorized, and its
seal to be hereunto affixed and attested, all in the City of Los Angeles and the
State of California, on the ____ day of October, 1997.
Transamerica
Occidental Life Insurance Company
(SEAL)
Attest:___________________________
By:__________________________________________
(Title)
(Name) Aldo Davanzo
(Title) Vice President and Assistant Secretary
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this registration
statement has been signed below by the following persons in the capacities
indicated on the date(s) set forth below.
Signatures Titles
Date
______________________* Director,
Executive Vice President October 8, 1997
Robert Abeles and
Chief Financial Officer
______________________* President,
Chief Executive Officer October 8, 1997
Thomas J. Cusack and Director
______________________* Director
October 8, 1997
Richard I. Finn
______________________* Director
October 8, 1997
David E. Gooding
______________________* Director
October 8, 1997
Edgar H. Grubb
______________________* Director
October 8, 1997
Frank C. Herringer
______________________* Director
October 8, 1997
Richard N. Latzer
______________________* Director
October 8, 1997
Karen MacDonald
______________________* Director
October 8, 1997
Gary U. Rolle'
______________________* Director
October 8, 1997
T. Desmond Sugrue
______________________* Director
October 8, 1997
Nooruddin S. Veerjee
______________________* Director
October 8, 1997
Robert A. Watson
/s/Aldo Davanzo On
October 9, 1997 as Attorney-in-Fact pursuant to
*By: Aldo Davanzo powers
of attorney previously filed and
filed herewith, and in his own
capacity as Vice President and
Assistant Secretary.
<PAGE>
Exhibit Table
Exhibit 1(1) Resolution of the Board
of Directors of the Company
establishing the Separate Account
Exhibit 1(5) Proposed Form of Policy
and Policy Riders
Exhibit 1(10) Form of Application
Exhibit 1(1) Resolution of the Board of Directors of the Company
Establishing the Separate Account
<PAGE>
CERTIFICATE
I, Aldo Davanzo, Assistant Secretary of Transamerica Occidental Life
Insurance Company, do hereby certify that the attached is a full, true and
correct copy of a resolution - SEPARATE ACCOUNTS - duly passed and adopted at a
regular meeting of the Board of Directors of Transamerica Occidental Life
Insurance Company on the 6th day of December, 1996 at which meeting a quorum of
directors was present. I further certify that said resolution is now in full
force and effect.
WITNESS my hand and seal of Transamerica Occidental Life Insurance
Company this 18th day of September, 1997.
<PAGE>
EXCERPTS FROM THE MINUTES OF A MEETING OF THE BOARD OF DIRECTORS OF
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY HELD DECEMBER 6, 1996.
SEPARATE ACCOUNTS
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
WHEREAS, this Corporation adopted a resolution authorizing its proper officers
to enter into, make, perform and carry out contracts pursuant to Section 10506
of the California Insurance Code; and
WHEREAS, this Corporation desires to continue entering into, making, performing
and carrying out contracts pursuant to Section 10506 et seq. of the California
Insurance Code, and specifically at this time to authorize its proper officers
to establish additional separate accounts under Section 10506 et seq. of the
California Insurance Code without further action of approval of this Board of
Directors;
THEREFORE IT IS RESOLVED, that this Corporation reaffirms that through its
proper officers, be and hereby is authorized (1) to enter into, make, perform
and carry out contracts of every sort and kind which may be necessary, suitable
or convenient to the conduct of business pursuant to Section 10506 et seq. of
the California Insurance Code, which permits a life insurance company to
allocate to one more separate accounts, in accordance with the terms of a
written agreement approved by the Insurance Commissioner of California, any
amounts that are paid to the Company under a pension, retirement or
profit-sharing plan, or program for one or more persons and that are to be
applied in payment of proceeds or benefits under the Company's policies,
contracts, or agreements in fixed or variable dollar amounts, or both, and (2)
to do all and everything necessary, suitable or convenient to the conduct of
such business, including any act or thing incidental to, or growing out of, or
connected with the conduct of such business and further including, but not
limited to, the power to establish new separate accounts, both pooled and
non-pooled, without further action or approval by this Board of Directors; and
FURTHER RESOLVED, that 1) the income, if any, and gains and losses, realized and
unrealized, in each separate account shall be credited to or charged against
such separate account without regard to other gains or losses of the Company's
general account or other separate accounts; and 2) no separate account shall be
chargeable with liabilities arising out of any other business of the Company.
2
<PAGE>
Exhibit 1(5) Proposed Form of Policy and Policy Riders
1
Form TA1031-97
- -------------------------------------------------------------------
[GRAPHIC OMITTED]
- -------------------------------------------------------------------
Here Is Your
Transamerica Occidental Life Insurance Policy
From Transamerica Occidental Life Insurance Company
Please Read it Carefully
This flexible premium variable life insurance policy is a legal contract between
you ("the owner") and Transamerica Occidental Life Insurance Company ("we" and
"the Company"). If you pay the required premiums, we will pay your beneficiary
the net death benefit when the person you are insuring ("the insured") dies
prior to the Maturity Date or, if the insured is alive on the Maturity Date, we
will pay the surrender value to the owner on the Maturity Date.
You may change the amount of insurance as well as the payments you make subject
to provisions of this policy. Except as otherwise provided in the paid-up
insurance option, you may direct your net payments into an account that has a
guaranteed minimum interest rate, and into as many as [seven] sub-accounts (if
available) of an account that has a rate of return that will vary.
These two accounts are called the Fixed and Variable Accounts.
The value of the Variable Account may increase or decrease according to its
investment results. For more details, please see the Variable Account Policy
Value provision on page 13.
The value in the Fixed Account will accumulate interest at a rate set by us
which will not be less than 4% a year.
The amount of the death benefit may be variable or fixed. The length of time
this policy will remain in force will be variable. Please refer to the Death
Benefit provisions and the Policy Value provisions in this policy for additional
information.
There may be little or no surrender value remaining on the final payment date.
Your Right to Examine
This Policy
You have the right to void this policy by returning it to our Variable Life
Service Center at 440 Lincoln Street, P.O. Box 3800, Worcester, MA 01653, or to
one of our authorized representatives by the later of:
o ten days after receiving it, or
o 45 days after you sign the application.
If you return the policy, it will be void from the date of its issue, and you
will receive a refund equal to the total of:
o the difference between any payments made, including fees or other charges,
and the amounts allocated to the Variable Account, and
o the value of the amounts in the Variable Account on the date the returned
policy is received at our Variable Life Service Center,
and
o any fees or other charges imposed on amounts in the Variable Account.
Signed for the Company at Los Angeles, California, on the date of issue.
- ----------------------------------------------------
[GRAPHIC OMITTED]
- ----------------------------------------------------
Executive Vice President, General Counsel and Corporate
Secretary
- ---------------------------------------------------
[GRAPHIC OMITTED]
- ---------------------------------------------------
President and CEO
Transamerica Occidental Life Insurance Company
Home Office: 1150 South Olive Street
Los Angeles, CA 90015
Variable Life Service Center: 440 Lincoln Street
P.O. Box 3800
Worcester, MA 01653
<PAGE>
Table of Contents
Cover Page..................................................1
Specifications Page...................................3
Riders/Endorsements...............................3
Monthly Insurance Protection Charges....5
Important Definitions...............................7
General Provisions ....................................8
Information About You and
the Beneficiary.........................................9
What You Should Know About
the Premiums..........................................10
Information About the Value
of Your Policy........................................11
What You Should Know About
the Variable Account..............................13
What You Should Know About
the Fixed Account..................................14
What You Should Know About
Transfers...................................................15
If You Want to Borrow from Your
Policy........................................................16
Details on Surrender and
Partial Withdrawals..................................16
What You Should Know About
the Death Benefit...................................18
Paid-Up Insurance Option......................20
Payment of Benefits...............................21
Alphabetical Index
Addition, Deletion or Substitution
of Investments.........................................14
Allocation of Payments..........................11
Assignment..............................................9
Basis of Value of Fixed Account...........15
Beneficiary...............................................9
Decrease in Face Amount......................20
Entire Contract........................................8
Fixed Account.......................................14
Fixed Account Policy Value..................15
Foreclosure............................................16
Increase in Face Amount.......................19
Lapse......................................................10
Loans on Policy.....................................16
Misstatement of Age or Sex.....................8
Monthly Insurance Protection Charge.....5
Net Death Benefit................................18
Net Investment Factor............................13
Owner......................................................9
Paid-Up Insurance Option......................20
Partial Withdrawals................................17
Payment Options....................................21
Policy Value...........................................11
Postponement of Payment......................17
Preferred Loan Option...........................16
Premium Grace Period......................... 10
Premiums................................................10
Protection of Benefits...............................8
Reinstatement.........................................11
Right to Contest Policy...........................8
Right to Examine....................................1
Suicide Exclusion....................................8
Surrender..............................................16
Transfers...............................................15
Valuation Dates and Periods.................14
Variable Account.................................13
Variable Account Policy Value............13
<PAGE>
Form 9031-97 TA
4
Form 9031-97 TA
<PAGE>
Who is Insured and For How
Much?
- ---------------------
Owner's Name: John Doe
Insured's Name: John Doe
Insured's Age at Issue: 35
Underwriting Class: Standard Male Non-Smoker
Policy Number: 12345
Initial Face Amount: $100,000
Date of Issue: June 1, 1997
Monthly Processing Date: On the 1st day of each month
Your Final Payment Date: June 1,
2062. Coverage will expire prior
to the final payment date if the
surrender value is insufficient
to continue coverage to such
date. Please refer to the
Premium Grace Period and Policy
Lapse provision on page 10 for
more information.
The Death Benefit Option You Have Chosen:
Level Death Benefit Option - The
death benefit will be the face
amount of your policy if the
insured dies on or before the
Final Payment Date. As the
policy value increases, the
insurance protection amount
decreases, keeping the death
benefit level. ( But, see
Required Minimum Amount of Death
Benefit provision on page 19.)
- -
Additional Insurance Benefits
Living Benefits Rider
Waiver of Payment Rider
Children's Insurance Rider
Guaranteed Insurability Rider
Guaranteed Death Benefit Rider
Your Maximum Payment
Federal tax laws limit the amount you may pay into
your policy. These limits are based upon the amount
Guideline Single Premium: $14,733.71
of your insurance coverage and your age, sex, and
underwriting class at the date the policy is issued.
Guideline Level Premium: $1,289.52
They are called Guideline Premiums. Your payments may not exceed the
greater of the guideline single premium or the total of the guideline
level premiums.
<PAGE>
The Charges You Will Pay
Payment Expense Charge: [ 4%] of each payment to cover federal, state and
local taxes, and certain sales and administrative costs; see page 11. We
reserve the right to increase or decrease this charge to reflect changes in
federal, state and local taxes.
Monthly Insurance Protection Charge: See pages 5 and 12.
Surrender Charge for Initial Face Amount: If you surrender this policy
during the first 10 policy years, you will be charged a surrender charge as
shown below:
Year Surrender Charge
--------------------------- ----------------------------
1 $1,276
2 $1,148
3 $1,020
4 $893
5 $765
6 $638
7 $510
8 $382
9 $255
--------------------------- ----------------------------
10 $127
Partial Withdrawal Transaction Charges: If you withdraw part of your funds,
you will pay a transaction charge of $25 or 2% of the amount withdrawn,
whichever is less. You may also pay a charge of 5% on any "excess"
withdrawal; this charge will not be higher than the surrender charge; see
page 16.
Change in Face Amount: If you increase the face amount of this policy, you
will pay a $40 transaction charge. If you decrease the face amount of this
policy, you will pay $40 plus part of the surrender charge; see page 19.
Statement of Projected Values Charge: You may be charged a fee of u
to $25 if you request a statement of
projected values.
Allocation Change Charges: You may be charged a fee of up to $25 if you
change the sub-accounts from which monthly insurance protection charges are
deducted. You may also be charged a fee of up to $25 if you change your
allocations for net payments.
Transfer Charge: You may make 12 transfers in any policy year free of
charge. After 12 transfers, you may be charged up to $25 to transfer funds
from one account to another; see page 15.
Variable Account Mortality and Expense Risk Charge: You will be assessed a
daily charge on the daily net asset value of the Variable Account for the
mortality and expense risks assumed by us. This daily charge is currently
at a rate equivalent to [.65%] on an annual basis and may not exceed a rate
equivalent to .80% on an annual basis.
Variable Account Administration Charge: You will be charged a daily charge
at a rate equivalent to .15% on an annual basis on the daily net asset
value of the Variable Account for a period not to exceed 20 policy years.
Minimum Monthly Payment: A monthly amount of $43.40 is used to determine if
your policy will lapse within 48 months of the date of issue of your
policy. If you increase or decrease the face amount, add or delete a rider,
or change the smoking class of the policy this monthly amount will change.
The new amount will be used to determine if your policy will lapse within
48 months of the date of issue, except that if you increase the face amount
of the policy, the new amount will be used to determine if your policy will
lapse within 48 months of the date of the face amount increase.
<PAGE>
Your Monthly Insurance Protection Charges are Guaranteed
Never to Go Higher Than the Following:
<TABLE>
<CAPTION>
Insurance Waiver of Insurance Waiver of
Protection Rate ($) Per Payment Protection Rate ($) Per Payment
Age $1,000 Rate ($) Per $1,000 Age $1,000 Rate ($) Per $1,000
- ----------- -------------------------- ------------------------- ----------- -------------------------- -------------------------
- ----------- -------------------------- ------------------------- ----------- -------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
[35 0.14 0.05 70 2.94
36 0.14 0.05 71 3.26
37 0.15 0.05 72 3.63
38 0.16 0.05 73 4.05
39 0.17 0.05 74 4.54
40 0.19 0.05 75 5.06
41 0.20 0.06 76 5.62
42 0.22 0.06 77 6.21
43 0.23 0.06 78 6.83
44 0.25 0.06 79 7.49
45 0.27 0.06 80 8.22
46 0.29 0.07 81 9.05
47 0.32 0.07 82 9.99
48 0.34 0.08 83 11.07
49 0.37 0.08 84 12.26
50 0.41 0.09 85 13.55
51 0.44 0.10 86 14.91
52 0.48 0.11 87 16.34
53 0.53 0.12 88 17.80
54 0.59 0.13 89 19.33
55 0.65 0.15 90 20.94
56 0.72 0.17 91 22.66
57 0.79 0.18 92 24.57
58 0.87 0.20 93 26.76
59 0.96 0.22 94 29.63
60 1.06 0.14 95 33.93
61 1.17 0.14 96 41.27
62 1.29 0.14 97 56.03
63 1.43 0.14 98 83.33
64 1.60 0.14 99 83.33]
65 1.78
66 1.97
67 2.18
68 2.41
69 2.66
- ----------- -------------------------- ------------------------- ----------- --------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Paid Up Insurance Table
Table of Guaranteed Net Single Premiums
Per $1,000 of Insurance
----------------------------- ------------------------------ ------------------------------ ------------------------------
Age Net Single Premium ($) Age Net Single Premium ($)
----------------------------- ------------------------------ ------------------------------ ------------------------------
----------------------------- ------------------------------ ------------------------------ ------------------------------
<S> <C> <C> <C> <C>
[35 197.08 70 624.87
36 204.57 71 639.93
37 212.41 72 654.65
38 220.53 73 669.34
39 228.93 74 683.74
40 237.63 75 697.71
41 246.55 76 711.28
42 255.81 77 724.44
43 265.32 78 737.25
44 275.20 79 749.77
45 285.38 80 762.04
46 295.87 81 774.03
47 306.69 82 785.69
48 317.79 83 796.94
49 329.27 84 807.66
50 341.07 85 817.83
51 353.13 86 827.45
52 366.57 87 836.59
53 378.32 88 845.35
54 391.35 89 853.90
55 404.60 90 862.38
56 418.12 91 870.99
57 431.87 92 879.97
58 445.87 93 889.58
59 460.11 94 900.15
60 474.57 95 911.96
61 489.21 96 925.13
62 504.03 97 939.68
63 519.02 98 955.52
64 534.12 99 973.33]
65 549.22
66 564.33
67 579.47
68 594.62
69 609.75
----------------------------- ------------------------------ ------------------------------ ------------------------------
</TABLE>
<PAGE>
21
Form TA1031-97
Important Definitions
<PAGE>
Age means how old the insured is on the birthday closest to the date of issue
and, subsequently, to the policy anniversary.
Assignee is the person to whom you have transferred your ownership of this
policy.
Company means Transamerica Occidental Life Insurance Company, also referred to
as we, our, and us. Our telephone number is [1-800-782-8315].
Date of issue is stated on page 3. Policy months, years and anniversaries are
measured from this date.
Evidence of insurability is the information, including medical information, that
we use to decide whether to issue the requested coverage, to determine the
underwriting class for the person insured, or to determine whether the policy
may be reinstated.
Face amount is the amount of insurance you elect to buy in the application or
enrollment form and which we agree to issue. The face amount is shown on page 3
of the policy. The death benefit is based on the face amount; see the Net Death
Benefit provisions beginning on page 18.
Final payment date is the policy anniversary nearest the insured's 100th
birthday. No payments may be made by you after this date. No monthly insurance
protection charges will be deducted from the policy value after this date.
Generally, the net death benefit after this date will equal 101% of the policy
value minus any outstanding loan, except as otherwise provided in the Guaranteed
Death Benefit Rider.
Insurance protection amount is the death benefit minus the policy value.
Maturity Date is the policy anniversary nearest age 115.
Monthly insurance protection charge is the amount of money we deduct from the
policy value each month to pay for the insurance and any riders; see page 12 for
more details.
Monthly processing date is the day of the month the monthly insurance protection
charge is deducted from the policy value. This date is shown on page 3.
Net payment is your payment to us less the payment expense charge shown on page
4.
Outstanding loan means all unpaid policy loans plus interest due or accrued on
such loans.
Policy change means any change in the face amount, the underwriting class, the
addition or deletion of a rider, or a change in the death benefit option.
Policy value is the sum of the values in the Variable Account and the Fixed
Account.
Premium means a payment you must make to keep the policy in force.
Variable Life Service Center means our office located at 440 Lincoln St., P.O.
Box 3800, Worcester, MA 01653.
Pro rata refers to an allocation among the sub-accounts of the Variable Account
and the Fixed Account. A pro rata allocation will be in the same proportion that
the policy value in each sub-account of the Variable Account and the policy
value in the Fixed Account have to the total policy value net of any outstanding
loans.
Rider is an optional benefit which may be added to your policy and which may
require an additional charge.
Specification pages contain information specific to your policy, and are located
after the Table of Contents in your policy.
Sub-accounts are subdivisions of the Variable Account investing exclusively in
the shares of one or more Funds.
Surrender Value is the policy value less any surrender charges and less any
outstanding loans.
Underwriting class means the insurance risk classification that we assign to the
insured based on the information in the application or enrollment form and any
other evidence of insurability we obtain. The insured's underwriting class
affects the monthly insurance protection charge and the amount of the payments
required to keep the policy in force.
Written request is a request you make in writing in a form which is satisfactory
to us and which is filed at our Variable Life Service Center.
You or your means the owner of this policy as shown in the application or in the
latest change filed with us.
<PAGE>
General Provisions
<PAGE>
Entire Contract: We have issued this policy in consideration of the application
and your initial premium payment. A copy of the application is attached and is a
part of this policy. The entire contract also includes: a copy of any
application to increase the face amount or to change to a different underwriting
class; any new specification pages; and any supplemental pages. The policy,
including the application and any endorsements and riders, forms our contract
with you.
All statements made by or for the insured will be considered representations and
not warranties. We will not use any statements made by or for the insured to
deny a claim unless the statement is in an application and an application is
attached to this policy when it is issued or delivered. Our representatives are
not permitted to change this policy or extend the time for paying premiums. Only
our President or a Vice President together with our Secretary may change the
provisions of this policy, and then only in writing.
Our Right to Contest the Policy is Limited: A contest is any action taken by us
to cancel your insurance or deny a claim based on untrue or incomplete answers
in your application. Except for fraud or nonpayment of premiums, this policy
will be incontestable after it has been in force during the lifetime of the
insured for two years from the date of issue. This provision does not apply to
any riders providing benefits specifically for disability or death by accident.
If the policy's total face amount is increased, or the underwriting class is
changed at your request, we cannot contest the increase or change after it has
been in force for 2 years from the effective date and the insured is alive.
Nonparticipating: No insurance dividends will be paid on this policy.
Adjustment of Cost Factors: We determine the monthly insurance protection charge
and Fixed Account interest rates which are used to calculate the policy value,
subject to the guarantees noted in this policy.
We will determine the rate for the monthly insurance protection charge for each
policy month on the monthly processing date for that policy month. The monthly
insurance protection rates will depend on: the insured's gender; the insured's
smoking status; the insured's class of risk; the number of years that the policy
has been in force; and the insured's age.
A table of guaranteed maximum monthly insurance protection charge rates for the
base policy is shown on page 5. We may use rates lower than the guaranteed
maximum monthly
insurance protection charge rates. We will never use higher
rates.
Any change in the rates for monthly insurance protection charges will apply to
all policies in the same underwriting class, will be prospective, and will be
based on our expectations as to future cost factors. Such cost factors may
include, but are not limited to: mortality expenses, interest, persistency, and
any applicable federal, state and local taxes.
Suicide Exclusion: If the insured dies by suicide, while sane or insane, within
two years from the date of issue, we will be liable only for the amount of
payments made to us less any outstanding loans and amounts withdrawn. If the
face amount is increased at your request, and then the insured commits suicide
within two years, while sane or insane, we will not pay the increased amount.
Instead the beneficiary will receive the monthly insurance protection charges
paid for this increase, plus any net death benefit otherwise payable.
Misstatement of Age or Sex: If the insured's age or sex is not correctly
stated, we will adjust the death benefit.
This amount will be:
o the policy value, plus
o the insurance protection amount that would have been purchased by the last
monthly insurance protection charge using the correct age and sex.
No adjustment will be made if:
o the insured dies after the final payment date; or
o the underwriting class is unisex and there has been a misstatement only
of sex.
Protection of Benefits: To the extent allowed by law, the benefits provided by
this policy cannot be reached by the beneficiary's creditors. No beneficiary may
assign, transfer, anticipate or encumber the policy value or benefit unless you
give them this right.
Periodic Report: We will mail a report to you at your last known address
at least once a year. This report will
provide the following information:
o death benefit;
policy values in each sub-account and in the Fixed Account;
the value of the policy if it is surrendered;
payments made by you and the monthly insurance protection charges
deducted by us since the last report; and
o outstanding loan and any other information required
by law.
Termination of Policy -- This policy will terminate at the earliest of:
1. The date we receive your written request to surrender or
terminate;
2. The Maturity Date; or
3. The date of lapse or foreclosure.
<PAGE>
Information About You and the Beneficiary
<PAGE>
Owner: The insured is the owner of this policy unless another person (which
could include a trust, corporation, partnership, etc.) is named as owner in the
application. The owner may change the ownership of this policy without the
consent of any beneficiary. Whenever the face amount of insurance is increased,
the insured must agree.
Assignment: You may change the ownership of this policy by sending us a
written request. An absolute assignment will
transfer ownership of the policy from you to another person called the assignee.
You may also assign this policy as collateral to a collateral assignee. The
limitations on your ownership rights while a collateral assignment is in effect
are specified in the assignment.
We will not be bound by an assignment unless it has been recorded at our
Variable Life Service Center. When recorded, it will take place as of the date
it was signed by you. Any rights created by the assignment will be subject to
any payments made or actions taken by us before the change is recorded. We are
not responsible for assuring that any assignment or any assignee's interest is
valid.
Beneficiary: The beneficiary is the person you name to receive the net death
benefit. The beneficiary's interest will be affected by any assignment you make.
If you assign this policy as collateral, all or a portion of the net death
benefit will first be paid to the collateral assignee; any money left over from
the amount due the assignee will go to those otherwise entitled to it.
Your choice of beneficiary may be revocable or irrevocable. You may change a
revocable beneficiary at any time by written request; but an irrevocable
beneficiary must agree to any change in writing. You will also need an
irrevocable beneficiary's permission to exercise other rights and options
granted by this policy. Unless you have asked otherwise, this policy's
beneficiary will be revocable.
Any change of the beneficiary must be made while the insured is living. This
change will take place on the date the request is signed, even if the insured is
not living on the day we receive it. Any rights created by the change will be
subject to any payments made, or actions taken, before we receive the written
request.
If a beneficiary dies before the insured, his or her interest in this policy
will pass to any surviving beneficiaries in proportion to their share in the net
death benefit, unless you have requested otherwise. If all beneficiaries die
before the insured, the net death benefit will pass to you or your estate.
Common Disaster Option: The common disaster option may be elected in the
application or later by written request. If the common disaster option is in
effect on the date of the insured's death, the beneficiary must be alive a
certain number of days following the insured's date of death in order to be
entitled to receive a benefit; otherwise we will pay the net death benefit as
though the beneficiary died before the insured. The number of days which the
beneficiary must live after the insured's death is selected by you when you
elect the common disaster option.
<PAGE>
What You Should Know About the Premiums
<PAGE>
Premiums: This policy will not be in force until the first full premium is paid
to us. Additional payments may be made to us at any time through the final
payment date, but before the date of death of the insured or the date the
paid-up insurance option is exercised. Payments must be sent either to our
Variable Life Service Center or to our authorized representative.
If you request it in writing, we will send you a signed receipt after payment.
The payment amount which must be paid to keep the policy in force is described
in the Premium Grace Period and Policy Lapse provision.
Maximum Payment Limits: We may limit the amount you pay to us in any policy
year. This limit will not be less than the guideline level premium; however, the
sum of all payments made from the issue date, minus any partial withdrawals, may
not be more than the greater of:
o the guideline single premium, or
o the sum of the guideline level premiums on the date of payment.
The guideline premium limits are shown on page 3. These premium limitations will
not apply if they prevent you from paying us enough to keep the policy in force.
Guideline premium limits are determined according to rules in the federal tax
law, and will be adjusted as that law changes.
If the payments made exceed the amount allowable for this policy to continue to
qualify as a life insurance contract under Section 7702 of the Internal Revenue
Code and the regulations thereunder, as applicable to this policy from time to
time, we will remove the excess amount of payments made from the policy, with
interest. Such an excess amount could occur, for example, as a result of a
partial withdrawal or other change in the benefits or terms of the policy, since
the guideline premium limit allowable for the policy may be reduced. The portion
of the payment that cannot be accepted as premium will be applied first against
any outstanding policy loans. We will refund to you any excess amount (including
interest) not later than 60 days after the end of that policy year.
The amount refundable will not exceed the surrender value of the policy. If the
entire surrender value is refunded, we will treat the transaction as a full
surrender of your policy.
Premium Grace Period and Policy Lapse: We will send you a notice if your
payments and surrender value are not enough to keep the policy in force. Your
policy will continue for 62 days from the date contained in the notice, which is
the grace period.
The first day of the grace period is called the date of default. We will send
the notice to your last known address, or to the person you name to receive this
notice, showing the due date and the amount of premium you must pay to keep the
policy in force.
The date when the grace period begins and the amount you must pay depends on how
long the policy has been in force and whether there have been any increases in
the face amount.
Beginning on the date this policy is issued or the effective date of any
increase in the face amount, whichever is later, and continuing for the next 47
monthly processing dates, the grace period will begin when both the following
conditions occur:
(a) the surrender value is less than the amount needed to pay the next
monthly insurance protection charge; and
(b) the sum of the payments made minus any outstanding loans, partial
withdrawals and withdrawal charges since the latest of the following three
dates:
o the date this policy is issued, or
o the effective date of any increase in the face amount, or
o the date of any policy change which changes the
minimum monthly payment;
is less than the minimum monthly payment multiplied by the number of
months which have elapsed since that date.
Thereafter, the grace period will begin if the surrender value on a monthly
processing date is less than the amount needed to pay the next monthly insurance
protection charge plus any loan interest accrued.
The minimum monthly payment, which is shown on page 4, may change if the policy
is changed; it will be listed in new specification pages provided to you.
The death benefit during the grace period will be reduced by any overdue
charges. The policy will lapse if the amount shown in the notice remains unpaid
at the end of the grace period. The policy terminates on the date of lapse.
Reinstatement: If this policy has lapsed or has been foreclosed for failure to
pay loan interest, and has not been surrendered, it may be restored (called
"reinstated" in this policy) within three years after the date of default or
foreclosure and before the Maturity Date. We will reinstate the policy on the
monthly processing date following the day we receive all of the following items:
o a written application for reinstatement,
o evidence of insurability satisfactory to us, and
o a payment large enough to keep the policy in force for three months.
You may repay or reinstate any outstanding loan on the date of default or
foreclosure.
Your reinstatement premium will be allocated to the Fixed Account until we
approve your application, at which time we will transfer the reinstatement
premium, plus accrued interest, as you directed in your last payment allocation
request.
The date of reinstatement is the later of the date we approve the reinstatement
application or the date the payment required to reinstate this policy is
received by us. The policy value on the reinstatement date is:
o the net payment to reinstate the policy, including the interest
earned from the date we received your
payment; plus
o an amount equal to the policy value less any outstanding loan on the default
date, to the extent that the outstanding loan is less than the surrender charge
on the reinstatement date; less
o the monthly insurance protection charge due on thereinstatement date.
The surrender charge on the reinstatement date is the charge which would have
been in effect if the policy had remained in force from the date it was issued.
Reinstatement of Paid-Up Insurance: If this policy is in force as paid-up
insurance and later terminates for failure to pay policy loan interest, the
paid-up insurance may be reinstated during the insured's lifetime, but no more
than three years after the date of foreclosure and before the Maturity Date, by
providing us with the following:
o evidence of insurability satisfactory to us; and
o payment or reinstatement of the outstanding loan on the date of the default.
Interest is payable on this outstanding loan from the date of termination to the
date of reinstatement at the interest rate of 8% per year.
The date of reinstatement is the later of the date we approve the reinstatement
application or the date the payment required to reinstate this policy is
received by us. The death benefit of the reinstated paid-up insurance will be
the same as the death benefit on the date of termination.
<PAGE>
Information About the Value of Your Policy
<PAGE>
Net Payment and Allocation of New Payments: A net payment is a payment made to
us reduced by the payment expense charge. This charge is based, in part, on
local, state and federal taxes we must pay. The charge is shown on page 4.
Each net payment will be added to the policy value. The policy value consists of
the total of the values in the Variable Account and the Fixed Account.
You may allocate the net payment to:
o any of the sub-accounts which are available at the time the payment
is made; and/or
o the Fixed Account.
The Company reserves the right to limit the number of sub-
accounts which are available at one time, but in no event will this be less than
7. All percentage allocations must be in whole numbers, with the total
allocation to all selected accounts equaling 100%. A processing charge may be
made for changing the net payment allocation. The maximum charge allowed is
shown on page 4, " Allocation Change Charges."
Allocation of Initial Payments: If you make a payment with your application or
at any time before the policy is approved for issue by us, we may put that net
payment into the Fixed Account on the date we receive it at our Variable Life
Service Center. Not later than two days after the date this policy is approved
for issue by us, the policy value you elected to allocate to the Variable
Account will be transferred from the Fixed Account to either the sub-accounts
you have selected or to the Money Market sub-account. In any event, we will
transfer any Variable Account policy values from the Money Market sub-account to
the sub-accounts you have selected not later than the expiration of the period
during which you may exercise your right to examine this policy and request a
refund of your payments.
Monthly Insurance Protection Charge: Beginning on the date this policy is
issued, and through the final payment date, we will deduct a monthly insurance
protection charge from the policy value. Except as otherwise prescribed in the
paid-up insurance option, you may choose a sub-account from which this monthly
charge will be deducted. If you do not make a choice, we will deduct the charge
pro rata. If the sub-account you choose does not have enough funds to cover the
charge, we will deduct the charge as if you had not made any choice. We reserve
the right to charge for changes made to the sub-accounts from which monthly
insurance protection charges are deducted. The maximum charge allowed is shown
on page 4, "Allocation Change Charges."
Charges allocated to the Fixed Account will be deducted on a last-in, first-out
basis. This means that we use the most recent payments to pay the fees.
The monthly insurance protection charge equals the sum of the charges that apply
to:
o the initial face amount, plus
o each increase in the face amount, plus
o any rider benefits.
We will determine the monthly insurance protection charge each month. Any
changes in this charge will apply to all policies in the same underwriting
class. If you decrease the face amount of the policy, we will adjust the monthly
insurance protection charge according to the Benefit Change provision on page
19.
The monthly insurance protection charge for the initial face amount will not be
more than (1) multiplied by (2) where:
(1) is the insurance protection rate shown for the insured's age in the
Table on page 5; and
(2) is the initial face amount divided by 1,000.
For the purposes of this calculation, if the Level Death Benefit Option (see
page 19) is in effect, the initial face amount will be reduced by the policy
value, minus charges for rider benefits at the beginning of the month, but not
less than zero.
If you increase the face amount, the monthly insurance protection charge for the
amount of the increase will not be more than (3) multiplied by (4) where:
(3) is the insurance protection rate applicable to the increased face
amount for the insured's age; and
(4) is the amount of the increase in the face amount divided by 1,000.
For purposes of this calculation, if the Level Death Benefit Option is in effect
and the policy value is higher than the initial face amount, the excess policy
value, minus charges for rider benefits at the beginning of the month, will be
used to reduce any increases in the face amount in the order in which the
increases were issued.
If the death benefit is the "guideline minimum death benefit" required for the
policy to qualify as life insurance under the federal tax law ( see page 19),
the monthly insurance protection charge for the portion of the death benefit
which exceeds the face amount (i.e., initial face amount plus any increases)
will not be higher than (5) multiplied by (6) divided by 1,000 where:
(5) is the insurance protection rate applicable to the initial face amount;
and
(6) is the death benefit less:
o the greater of the face amount or the policy value
if the Level Death Benefit Option is in
effect, or
o the face amount plus the policy value, if the
Adjustable Death Benefit Option (see page 19)
is in effect.
Insurance Protection Rates: The cost of insurance rate includes an expense
factor and a mortality factor. The expense factor covers a portion of our
acquisition costs, taxes, and administrative expenses. The mortality factor is
based on the insured's:
o age,
o sex (unless this policy is issued in a unisex class as
indicated on the specification pages); and
o underwriting class.
The guaranteed rates are based on:
o the Commissioners Ultimate 1980 Standard Ordinary Mortality Table, Male, or
Female, or Table B for unisex risks (Smoker or Non-Smoker versions of these
tables are used if the insured is over 17 years of age on the date of issue),
and
o appropriate increases in such tables for non-standard risks.
The insurance protection rates actually charged will never be higher than the
guaranteed rates. We will review the actual insurance protection rates for this
policy whenever we change .
these rates for new policies. In any event, rates will be
reviewed not more often than once each year, but not less than
once in a five-year period.
<PAGE>
What You Should Know About the Variable Account
<PAGE>
Variable Account: The value of your policy will vary if it is funded through
investments in the sub-accounts of the Variable Account. This account is
separate from our Fixed Account. We have exclusive and absolute ownership and
control of all assets, including those in the Variable Account. However, the
portion of assets in the Variable Account equal to the reserves and liabilities
of the policies which are supported by this account will not be charged with
liabilities that come from any other business we conduct.
This account, which we established to support variable life insurance policies,
is registered with the Securities and Exchange Commission (SEC) as a unit
investment trust under the Investment Company Act of 1940. It is also governed
by the laws of the State of California.
This account has several sub-accounts. Each sub-account invests its assets in a
separate series of a registered investment company (called a "Fund"). We reserve
the right, when the law allows, to change the name of the Variable Account or
any of its sub-accounts. You will find a list in your application of the
sub-accounts in which you may invest.
Variable Account Policy Value: Not later than two days after the date this
policy is approved for issue by us, the policy value you elected to allocate to
the Variable Account may be transferred from the Fixed Account to either the
sub-accounts you have selected or to the Money Market sub-account. We will
transfer the Variable Account policy values from the Money Market sub-account to
the sub-accounts you have selected not later than the expiration of the period
during which you may exercise your right to examine this policy and request a
refund of your payments. Net payments made thereafter which are allocated to the
sub-accounts will purchase additional units of the sub-accounts.
The number of units purchased in each sub-account is equal to the portion of the
net payment allocated to the sub-account, divided by the value of the applicable
unit as of the valuation date the payment is received at our Variable Life
Service Center or on the date value is transferred to the sub-account from
another sub-account or the Fixed Account. If we receive your payment on a date
which is not a valuation date, we will use the value of the applicable unit on
the first valuation date following the date we receive your payment to determine
the number of units that the net payment will purchase.
The number of units will remain fixed unless (1) changed by a subsequent split
of unit value, or (2) reduced because of a transfer, policy loan, partial
withdrawal, withdrawal charge, transaction charge, monthly insurance protection
charge deduction, surrender or surrender charge allocated to the sub-account.
Any transaction described in (2) will result in the cancellation of a number of
units which are equal in value to the amount of the transaction. On each
valuation date we will value the assets of each sub-account in which there has
been activity. The policy value in a sub-account at any time is equal to the
number of units this policy then has in that sub-account multiplied by the
sub-account's unit value. The value of a unit for any sub-account for any
valuation period is determined by multiplying that sub-account's unit value for
the immediately preceding valuation period by the net investment factor for the
valuation period for which the unit value is being calculated. The unit value
will reflect the investment advisory fee and other expenses incurred by the
registered investment companies.
Net Investment Factor: This measures the investment performance of a sub-account
during the valuation period that has just ended. The net investment factor is
the result of (a) plus (b), divided by (c), minus (d) and minus (e) where:
(a) is the net asset value per share of a Fund share held in the
sub-account determined at the end of the current valuation period,
(b) is the per share amount of any dividend or capital gain distributions
made by the Fund on shares held in the sub-account if the "ex-dividend" date
occurs during the currenvaluation period,
(c) is the net asset value per share of a Fund share held in the
sub-account determined as of the end of the immediately preceding valuation
period;
(d) is a charge for mortality and expense risks in the valuation period.
The current mortality and expense risk charge is shown on the specification
pages. The mortality and expense risk charge may be increased or decreased,
but it will never exceed the maximum rate shown on the specification pages;
and
<PAGE>
(e) is an administration charge for the valuation period. The current
administration charge is shown on the specification pages. The administration
charge may be decreased, but will never exceed the rate shown on the
specification pages. The administration charge period will not exceed 20 policy
years.
Since the net investment factor may be more or less than one, the unit value may
increase or decrease. You bear the investment risk. We reserve the right
(subject to any required regulatory approvals) to change the method we use to
determine the net investment factor.
Valuation Dates and Periods: A valuation date is each day that the New York
Stock Exchange (NYSE) is open for business and any other day in which there is
enough trading in the Variable Account's underlying portfolio securities to
materially affect the value of the Variable Account. A valuation period is the
period between valuation dates.
Addition, Deletion or Substitution of Investments: We may not change the
investment policy of the Variable Account without the approval of the Insurance
Commissioner of California. This approval process is on file with the Insurance
Commissioner of your state.
We reserve the right, subject to compliance with applicable law, to add to,
delete from, or substitute for the shares of a Fund that are held by the
Variable Account or that the Variable Account may purchase. We also reserve the
right to eliminate the shares of any Fund if they are no longer available for
investment, or if we believe investing more in any eligible Fund is no longer
appropriate for the purposes of the Variable Account.
We will notify you before we substitute any of your shares in the Variable
Account. However, this will not prevent the Variable Account from buying other
shares of underlying securities for other series or classes of policies, or from
permitting a conversion between series or classes of policies or contracts if
holders request it, subject to compliance with any state or federal
requirements.
We reserve the right to establish other sub-accounts, and to make them available
to any class or series of policies as we think appropriate. Each new sub-account
would invest in a new investment company or in shares of another open-end
investment company. We also reserve the right to eliminate or combine existing
sub-accounts of the Variable Account and to transfer the assets between
sub-accounts, when allowed by law.
If we make any substitutions or changes that we believe are necessary or
appropriate, we may make changes in this policy by written notice to reflect the
substitutions or changes. If we think it is in the best interests of our policy
owners, we may operate the Variable Account as a management company under the
Investment Company Act of 1940, or we may de-register it under that Act if the
registration is no longer required. We may also combine it with other separate
accounts.
Federal Taxes: If we must pay taxes on the Variable Account, we will charge you
for that tax. Although the account is not now taxable, we reserve the right to
make a charge for taxes if the account becomes taxable.
Splitting of Units: We reserve the right to split the value of a unit, either to
increase or decrease the number of units. Any splitting of units will have no
material effect on policy benefits.
<PAGE>
What You Should Know About the Fixed Account
<PAGE>
Fixed Account: The Fixed Account is a part of our General Account. The General
Account consists of all assets owned by us, other than those in the Variable
Account and other separate accounts. Except as limited by law, we have sole
control over the investment of these General Account assets. You do not share
directly in the investment experience of the General Account, but are allowed to
allocate and transfer funds into the Fixed Account.
Fixed Account Interest Rates: The interest rates credited to the policy value in
the Fixed Account are set by us, but will never be less than 4% per year. We may
establish higher interest rates, and the initial interest rates and the renewal
interest rates may be different.
o Net payments allocated to the Fixed Account will be credited at the initial
interest rate in effect on the day we receive your payment at our Variable Life
Service Center, and the initial interest rate is guaranteed until the next
policy anniversary unless you borrow from that policy value.
o Funds transferred from a sub-account of the Variable Account to the Fixed
Account will be credited with interest at the initial interest rate in effect on
the valuation date of the transfer, and the initial interest rate is guaranteed
until the next policy anniversary unless you borrow from that policy value.
o Policy values in the Fixed Account on the policy anniversary will be credited
with interest at the renewal interest rate in effect on the policy anniversary,
and the renewal interest rate is guaranteed for one year so long as those values
remain in the Fixed Account and are not borrowed.
<PAGE>
o The interest rate we use for that portion of the policy value that equals the
outstanding loan will be at least 6% per year. The interest rate will be higher
if the policy qualifies under the Preferred Loan provision; see page 16.
Fixed Account Policy Value: On each monthly processing date, the policy value
of the Fixed Account is:
o the policy value in this account on the preceding monthly
processing date increased by one month's interest, plus
o net payments received since the last monthly processing date which are
allocated to the Fixed Account plus the interest accrued from the date the
payments are received by us, plus
o Variable Account policy value transferred to the Fixed Account from any
sub-accounts since the preceding monthly processing date, increased by
interest from the date the policy value is transferred, minus
o policy value transferred from the Fixed Account to a
sub-account since the preceding monthly processing date and interest
accrued on these transfers from the transfer date to the monthly processing
date, minus
o partial withdrawals from the Fixed Account, partial withdrawal transaction
charges and withdrawal charges since the last monthly processing date, and
interest accrued on these withdrawals and charges from the withdrawal date
to the monthly processing date, minus
o any transaction charges allocated to the Fixed Account for any changes in the
face amount since the last monthly processing date and interest accrued on such
charges to the monthly processing date, minus
o the portion of the monthly insurance protection charge allocated to the policy
value in the Fixed Account.
During any policy month, the Fixed Account policy value will be calculated on a
consistent basis. In no event will the Fixed Account policy value be less than
the guaranteed cash value shown in the Paid-Up Insurance Table after the paid-up
option has been exercised.
Basis of Value of the Fixed Account: We base the minimum surrender value in the
Fixed Account on the Commissioners Ultimate 1980 Standard Ordinary Mortality
Table, Male or Female or Table B for unisex risks (or appropriate increases in
such tables for rated risks) with interest at 4% each year, compounded annually;
however, if the insured is over age 17 on the date of issue, the minimum
surrender value is based on the Smoker or Non-Smoker versions of such tables.
Actual policy values are based on interest and insurance protection rates that
we set. We have filed a detailed description of the way we determine this value
with the State Insurance Department. All values equal or exceed the minimums
required by law in the states in which this policy is delivered.
<PAGE>
What You Should Know About Transfers
<PAGE>
While this policy is in force other than as paid-up insurance, you may transfer
amounts between the Fixed Account and the sub-accounts or among sub-accounts, on
request.
You may transfer, without charge, all or part of the policy value in the
Variable Account to the Fixed Account once during the first 24 months after the
policy is issued, and once during the first 24 months after you have increased
the face amount in order to convert to a fixed-only product. If you do so,
future payments will be allocated to the Fixed Account unless you specify
otherwise. All other transfers are subject to the following rules, and will be
permitted with our approval.
We will determine the minimum and maximum amounts that may be transferred
according to the rules that are in effect at the time of the transfer.
We also reserve the right to limit the number of transfers that can be made in
each policy year, and to set other reasonable rules controlling transfers.
If a transfer would reduce the policy value in a sub-account to less than the
current minimum balance required for such accounts, we reserve the right to
include the remaining value in the amount transferred.
You will not be charged for the first twelve transfers in a policy year, but a
transfer charge of up to $25 may be made on each additional transfer. Any
transfer charge will be deducted from the amount that is transferred. Transfers
that result from a policy loan or repayment of a loan are not subject to these
rules.
<PAGE>
If You Want to Borrow from Your Policy
<PAGE>
This policy is the only security you need to borrow from it.
Amount You May Borrow: The total amount of loans you may have outstanding at any
time is the loan value. Except as otherwise provided in the paid-up insurance
option, the loan value in the first policy year is 75% of (a) minus (b) where:
(a) is the policy value minus the surrender charge, and
(b) is the monthly insurance protection charges and interest which will be
due on the loan through the end of the policy year.
The loan value in the second policy year and any year after is 90% of the
result of the policy value minus the surrender
charge.
If you do not specify from which accounts you want to borrow, we will allocate
the loan pro rata.
In order to secure the outstanding loan, we will transfer the policy value in
each sub-account equal to the policy loan allocated to each sub-account to the
Fixed Account.
Loan Interest: You will pay interest on your loan at an annual rate of 8%.
Interest accrues daily, and is payable at the end of each policy year. Any
interest that is not paid on time will be added to the loan principal and bear
interest at the same rate. If this makes the principal higher than the policy
value in the Fixed Account, we will offset this shortfall by transferring funds
from the Variable Account to the Fixed Account. We will allocate the transferred
amount pro rata among the sub-accounts in the same proportion that the value in
each sub-account has to the total value in all of them.
Repaying the Outstanding Loan: You may repay any part of any outstanding loan at
any time while the Insured is living before this policy lapses and before the
Maturity Date. When you repay it, we will transfer the policy value that is in
the Fixed Account to the various sub-accounts and increase the value in
them. You may tell us how to allocate repayments, but if you do not, we will
allocate them according to the most recent payment allocation choices you have
made. Loan repayments made to the Variable Account cannot be higher than the
amounts you transferred from it to secure the outstanding loan.
If you wish to make a loan repayment, you must tell us that the payment you
send us is for that purpose. Unless your payment is clearly marked as a loan
repayment, we will assume it is a premium payment unless it is received after
the final payment date. When we receive a loan repayment, we will apply it to
the portion of the policy value that secures the loan. If the
loan payment exceeds the loan balance, we will apply the balance as a premium
payment.
Foreclosure: If at any time the amount of the outstanding loan is higher than
the policy value, minus the surrender charge, we will terminate the policy. We
will mail a notice of this termination to the last known address of you and any
assignee. If the excess outstanding loan is not paid within 62 days from the
date contained in the notice, the policy will terminate with no value. You may
reinstate this policy according to the Reinstatement provision on page 11.
Preferred Loan Option: The preferred loan option is available after the 10th
policy year. The guaranteed annual interest rate credited to the portion of the
policy value securing a preferred loan is 7.5%.
After the 10th policy year, any outstanding loan will be treated as a preferred
loan from that date forward, unless you revoke the preferred loan option on that
outstanding loan. The interest credited to the portion of the policy value
securing the non-preferred loans will not be less than 6% per year.
This option may be revoked by you at any time.
This option will be canceled if the Paid-Up Life Insurance Option is elected.
<PAGE>
Details on Surrender and Partial Withdrawals
<PAGE>
Surrender: You may cancel this policy and receive its surrender value as long as
the insured is living on the date we receive your written request in our
Variable Life Service Center. The policy will be canceled on that day. You may
choose to receive the surrender value in a lump sum or under a payment option.
Surrender Value: Except as otherwise provided in the paid-up
insurance option, the surrender value equals the policy value minus the
outstanding loan and surrender charges.
You will find the surrender charge for the initial face amount on page 4. Any
changes in this charge when you increase or decrease the face amount will be
shown in new specification pages.
<PAGE>
Partial Withdrawals: Partial withdrawals are not allowed during the first policy
year or if your policy is in force as paid-up insurance. After the first policy
year, you may withdraw part of the surrender value on written request. Each
withdrawal must be at least $500. We will deduct a 2% partial withdrawal
transaction charge (maximum $25) from the policy value each time you make a
partial withdrawal.
We also may deduct a withdrawal charge from the policy value. However, a portion
of the partial withdrawal will not be subject to the withdrawal charge. This
amount equals (a) minus (b), where:
(a) is 10% of the policy value on the date we receive the written request
at our Variable Life Service Center, and
(b) is the total of the withdrawals (or portions of them) made in the same
policy year which were exempt from the withdrawal charge.
We will charge you on the balance of the withdrawal, called the "excess
withdrawal." This charge is calculated by multiplying the excess withdrawal
amount by 5%. The charge will never exceed the surrender charge in effect on the
withdrawal date.
Your policy's surrender charge will be reduced by any withdrawal charges
previously paid. There will be no "excess withdrawal" charge if no surrender
charge applies to the policy on the withdrawal date.
The withdrawal charge will decrease existing surrender charges in the following
order:
o first, the most recent increase's surrender charge,
second, the next most recent increase's surrender charges in succession,
and
o last, the initial face amount's surrender charge.
If you elected the Level Death Benefit Option, the face amount and policy value
will be reduced by the amount of the partial withdrawal, and the policy value
will be further reduced by the partial withdrawal transaction and withdrawal
charges. The face amount will be decreased in the following order:
o first, the most recent increase,
o second, the next most recent increases in succession, and
o last, the initial face amount.
If you elected the Adjustable Death Benefit Option, the policy value will be
reduced by the amount of the partial withdrawal, plus the partial withdrawal
transaction and withdrawal charges.
We will not permit a partial withdrawal if it reduces the face amount to less
than $50,000.
If you do not allocate a partial withdrawal and its charges among the Fixed
Account and each sub-account, we will allocate that amount pro rata.
Postponement of Payment: We may postpone any transfer from the Variable
Account, or payment of any amount payable on:
o surrender, o partial withdrawal, o transfer, o policy loan, or o death of the
insured.
The postponement will continue during any period when:
o trading on the NYSE is restricted as determined by the SEC, or the NYSE is
closed for days other than weekends and holidays,
or
o the SEC by order has permitted such suspension, or
o the SEC has determined that such an emergency exists that disposal of
portfolio securities or valuation of assets is not reasonably practical.
We may also postpone any transfer from the Fixed Account or payment of any
portion of the amount payable on surrender, partial withdrawal or policy loan
from the Fixed Account for not more than six months from the day we receive your
written request and, if it is required, your policy. If we postpone those
payments for 30 days or more, the amount postponed will earn interest during
that period at a rate of not less than 3% per year or such higher rate as
required by law. We will not postpone payments to pay premiums on our policies.
<PAGE>
.
<PAGE>
What You Should Know About the Death Benefit
Guideline Minimum Sum Insured Table
Attained Attained
Age Percentage Age Percentage
40 or less 250% 60 130%
41 243% 61 128%
42 236% 62 126%
43 229% 63 124%
44 222% 64 122%
45 215% 65 120%
46 209% 66 119%
47 203% 67 118%
48 197% 68 117%
49 191% 69 116%
50 185% 70 115%
51 178% 71 113%
52 171% 72 111%
53 164% 73 109%
54 157% 74 107%
55 150% 75 - 90 105%
56 146% 91 104%
57 142% 92 103%
58 138% 93 102%
59 134% 94-115 101%
Net Death Benefit: If the insured dies before the
Maturity Date and before the policy is terminated, we
will pay the net death benefit. The net death benefit
is equal to the death benefit reduced by certain
amounts, as described below. The death benefit is
determined as of the date we receive due proof of the
insured's death at our Variable Life Service Center.
Due proof of death is a valid death certificate or
other evidence satisfactory to us.
The amount of the net death benefit depends upon: (1)
whether the date the insured dies is after, or on or
before, the final payment date; (2) whether the paid-up
insurance option is in effect on the date of the
insured's death; and (3) which death benefit option is
in effect on the date of death of the insured.
If the insured dies on or before the final payment date
and the paid-up insurance option has not been
exercised, then the net death benefit is determined by
deducting from the death benefit under the Level Death
Benefit Option or the Adjustable Death Benefit Option
(which are described later) the following: any
outstanding loan and monthly insurance protection
charges due and unpaid through the policy month in which the insured dies, as
well as any partial withdrawals and withdrawal charges.
If the paid- up insurance option has been exercised before the insured's
death, then the net death benefit is the paid-up insurance death benefit
minus any outstanding loan; (see page 20).
Except as otherwise provided in the Guaranteed Death Benefit Rider, if the
insured dies after the final payment date and the paid-up insurance option
has not been exercised, then the net death benefit will be equal to 101% of
the policy value, minus any outstanding loan and minus any partial
withdrawals and withdrawal charges.
If the net death benefit is paid in a lump sum, interest will be earned at
our declared interest rate for sums held on deposit, but not less than 2.5%
per year, beginning on the date we receive notice of death at our Variable
Life Service Center. We will pay a higher interest rate if required by state
law. We will credit interest from an earlier date (for example, from the date
of the insured's death) if required by state law.
<PAGE>
Required Minimum Amount of Death Benefit: This
policy is intended to qualify under Section 7702 of the Internal Revenue Code as
a life insurance contract for federal tax purposes. The provisions of this
policy (including any rider or endorsement) shall be interpreted to ensure such
tax qualification, regardless of any language to the contrary.
At no time will the amount of the death benefit under the policy ever be less
than the amount needed to ensure such tax qualification. To the extent that the
death benefit is increased, appropriate adjustments will be made in any monthly
insurance protection charges or supplemental benefits as of that time,
retroactively or otherwise, that are consistent with such an increase. Such
adjustments may be made by right of setoff against any death benefits payable.
The death benefit under this policy will not be less than the Guideline Minimum
Sum Insured as specified in the tax code. This is calculated by multiplying the
policy value by the percentage shown in the preceding table. The guideline
minimum sum insured varies by attained age. The amounts shown in the table are
determined to provide a death benefit at least as great as those in the federal
tax law, and will be adjusted according to any changes in that law applicable to
this policy.
Death Benefit Options: You have two options for determining the amount of the
death benefit. The option you elected in your application is shown on page 3.
These options are not available after the final payment date or if the policy is
in force as paid-up insurance.
Under the Level Death Benefit Option, the death benefit is the greater of:
o the face amount, or
o the guideline minimum sum insured.
Under the Adjustable Death Benefit Option, the death benefit is the greater of:
o the face amount plus the policy value on the date we receive proof of death
(we will refund monthly insurance protection charges deducted from the policy
value after the insured's date of death), or
o the guideline minimum sum insured.
You may change the death benefit option by making a written request. That change
will be made on the next monthly processing date after we receive your request.
o If you change from the Level Death Benefit Option to the Adjustable Death
Benefit Option, the face amount under the Adjustable Death Benefit Option will
be equal to the death benefit under the Level Death Benefit Option, minus the
policy value on the date of change.
o If you change from the Adjustable Death Benefit Option to the Level Death
Benefit Option, the face amount will be equal to the death benefit under the
Adjustable Death Benefit Option on the date of change.
You may not change your death benefit option more than once in any policy year,
or if the change reduces the face amount to less than $50,000.
Benefit Change: You may increase or decrease the face amount of insurance
if you make a written request during the insured's
lifetime.
You may not change the face amount if it does not meet the minimum death benefit
requirement set by federal tax law.
Increase: To increase the face amount:
o you must complete our application and provide us with evidence of
insurability satisfactory to us; and
o the insured's age must not be over our maximum issue age for new
insurance; and
o you must pay a $40 transaction charge, plus the net premium sufficient to keep
the policy in force for two months if the surrender value is less than this
amount.
This increased face amount will become effective on the first monthly processing
date on, or following, the date that all the conditions are met. We will deduct
the $40 transaction charge from the policy value on the effective date of
increase. You may choose the sub-account from which these charges will be
deducted; but if you do not choose, we will allocate the charges pro-rata. We
will provide you new specification pages, including a Supplemental Monthly
Insurance Protection Charge Table if the insured's underwriting class changes.
These pages will include the following information:
o effective date of the increase,
o amount of the increase,
o underwriting class,
o new minimum monthly payment,
o new guideline premiums, and
o new surrender charges applicable to the entire policy.
<PAGE>
We reserve the right to set a limit on the minimum amount of an increase in the
face amount. No increase may be less than our minimum limit in effect on the
date we receive your request.
You may return the new specification pages to us by the later of ten days after
receiving them or 45 days after you complete the "Application Form" which shows
the amount of the increase. If you return these pages within the period
described above, we will consider the increase void from the beginning. We will
add the charges back to the policy value unless you request otherwise.
We will also cancel any surrender charge for the increase.
Decrease: You may decrease the face amount of the policy at any time. It will be
effective on the first monthly processing date after we receive your written
request. You must pay a $40 transaction charge. The face amount will be
decreased or eliminated in the following order:
o first, the most recent increase,
second, the next most recent increases successively, and
o last, the initial face amount.
We will deduct a $40 transaction charge and a surrender charge from the policy
value on the date of the decrease. The surrender charge will be the surrender
charge for the face amounts which are decreased or eliminated in the order as
noted above.
You may choose the sub-account from which these charges will be deducted; but if
you do not choose, we will allocate the charges pro rata.
We will provide you with new specification pages. These pages will include the
following information:
effective date of the decrease,
amount of the decrease and the face amount remaining in force,
new minimum monthly payment, if any,
new guideline premiums, and
new surrender charges applicable to the entire policy.
You may not decrease the face amount to less than $50,000. We reserve the
right to establish a minimum limit on the amount of
any decrease.
<PAGE>
Paid-Up Insurance Option
<PAGE>
Benefit: This is insurance, usually having a reduced face amount for the
lifetime of the insured with no further premiums due. The amount of paid-up
insurance is the amount that the surrender value can provide as a net single
premium applied at the insured's age and underwriting class on the date this
option is exercised. The paid-up insurance death benefit may not exceed the
death benefit in effect on the date this option is exercised. In the event that
the surrender value exceeds the net single premium for the death benefit on the
date this option is exercised, the excess surrender value will be paid to you.
Basis of Values: The policy value and net single premium of the paid-up
insurance meet the minimum standards which are set by state law. The net single
premium is based on the Commissioners Ultimate 1980 Standard Ordinary Mortality
Table, Smoker or Non-Smoker; Male or Female or Table B for unisex risks (or
appropriate increases in such tables for non-standard risks). Interest will not
be less than 4 1/2%. See page 6 for the table showing the guaranteed net single
premiums per $1,000 of insurance.
Exercise of Option: The paid-up insurance option may be exercised by you on
written request. Policy value in the Variable Account will be transferred to the
Fixed Account on the date your written request to exercise this option is
received in our Variable Life Service Center. We will issue supplemental
specification pages that show the policy is paid- up effective as of the monthly
processing date following receipt of the written request.
The supplemental specification pages will show:
o the effective date of paid-up insurance,
o the paid-up death benefit,
o guaranteed cash surrender values, and
o riders.
<PAGE>
Effect on the Policy: After the policy becomes paid-up, no further payments may
be made by you. You may not increase or decrease the face amount. You may not
make partial withdrawals or transfer funds to the Variable Account; however, you
may make policy loans or surrender the policy for its net cash value. Riders
will continue only with our consent.
The guaranteed cash value of the paid-up insurance equals the net single premium
for the paid-up insurance at the insured's attained age. The net single premium
is determined on the same basis as is used for the purchase price of the paid-up
insurance. The net cash value is the cash value less any outstanding loan. The
loan value of paid-up insurance is the amount that, with interest at 8% per
year, equals the cash value of the paid-up policy as of the next policy
anniversary.
<PAGE>
24
Form TA1031-97
Payment of Benefits
<PAGE>
Payment Options: Upon written request, the surrender value or all or part of the
net death benefit may be placed under one or more of the payment options offered
by us at the time the request is made. If you make no election, we will pay the
benefit in a single sum.
A certificate will be provided to the payee describing the payment option
selected.
If a payment option is selected, the beneficiary, when filing proof of claim,
may pay us any amount that otherwise would be deducted from the net death
benefit.
The amounts payable under these options are paid from the General Account. The
options are not based on the investment experience of the Variable Account.
The amount applied under any one option for any one payee must be at least
$5,000. The periodic payment for any one payee must be at
least $50.
Subject to the Owner and Beneficiary provisions, you may change any option
selection before the net death benefit becomes payable. If you make no
selection, the beneficiary may select an option when the proceeds become
payable.
<PAGE>
Summary:
Flexible Premium Variable Life Insurance Policy
Adjustable Sum Insured
Death Proceeds Payable at Death of Insured
Flexible Premiums Payable to the Final Payment Date
Coverage to the Maturity Date and Amount of Policy Value Not Guaranteed
Nonparticipating.
<PAGE>
9
<PAGE>
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
CHILDREN'S INSURANCE RIDER
This rider is part of the policy to which it is attached if it is shown in the
specification pages. The insured under the policy is the insured under this
rider. "Insured Child" is defined below.
Benefit
<PAGE>
Benefit - The Company will pay the children's insurance benefit upon receipt of
due proof that an Insured Child died while this rider was in force. The amount
of the children's insurance benefit is shown in the specification pages. Unless
requested otherwise, the beneficiary under this rider is the owner.
Insured Child Description - "Acquired" means born, legally adopted or attained
the status of stepchild.
"Insured Child" means an acquired child of the insured who:
o is named in the application for this rider and on the date of the
application has not reached his or her 18th birthday; or
o is acquired during the insured's lifetime after the date of the application
but before such child's 18th birthday.
No child can be an Insured Child while under the age of 14 days. A person will
cease to be an Insured Child on the policy anniversary nearest the earlier of
the Insured Child's 25th birthday and/or the insured's 65th birthday.
Period of Term Insurance - The term insurance on each Insured Child will begin
on the date of coverage under this rider if the child is an Insured Child on
such date; otherwise the term insurance will begin on the date the Insured Child
is acquired and is 14 days old. The term insurance will expire on the date the
child ceases to be an Insured Child.
Paid-Up Term Insurance - If the insured dies while this rider is in force, the
term insurance in force on each Insured Child will be converted to paid-up term
insurance. The paid-up term insurance on each child will terminate on the date
the child ceases to be an Insured Child. This rider may be surrendered at any
time while the paid-up term insurance is in force for its net reserve on the
date of surrender. However, if this rider is surrendered within 30 days after a
policy anniversary, the value will not be less than the net reserve on such
anniversary. We will furnish a statement of the values for this rider upon
request.
<PAGE>
Conversion
<PAGE>
Conversion - You may convert the insurance on the life of an Insured Child if
such request is made:
o within 60 days before the term insurance on the life of an Insured Child
expires;
o during the Insured Child's lifetime; and
o while the rider is in force.
You may convert to a new policy issued by Transamerica Occidental Life Insurance
Company. Evidence of insurability will not be required.
New Policy Description - The new policy will be issued:
o on any form of individual life insurance, other than term, being issued
by us on the date of issue of the new policy;
o on the life of the Insured Child only; and
o at the Insured Child's age and for the premium rates in effect on the
date of issue of the new policy.
<PAGE>
(Over)
Form TA1096-97
Conversion (continued)
<PAGE>
The sum insured may not be less than our minimum issue limit for the new policy.
The sum insured may be up to 5 times the amount of insurance under this rider on
the Insured Child. The new policy will not become binding unless the first
premium is paid during the lifetime of the Insured Child and within 31 days
after the expiration of the term insurance under this rider.
The date of issue of the new policy will be the day after the expiration of the
term insurance under this rider.
The new policy will be subject to any assignments outstanding against this
rider. Riders will be available on the new policy subject to evidence of
insurability and consent of the Company. The time periods of the suicide and
incontestability provisions of the new policy will expire on the same date as
such provision in this rider would have expired.
<PAGE>
General
<PAGE>
Incontestability - Except for fraud or failure to pay the charges, this rider
cannot be contested after it has been in force, during the insured's lifetime,
for two years from its date of issue. The insurance on any Insured Child named
in the application cannot be contested after it has been in force, during the
Insured Child's lifetime, for two years from the date of issue of this rider.
Misstatement of Age - If the age of a child has been misstated and if the child
would not have been an Insured Child upon his or her death if the age had been
correctly stated, no benefit will be payable if the child dies. Any benefit paid
to the beneficiary because of the death of such child shall be repaid to the
Company. If the age of the insured has been misstated, the termination date of
the Insured Child's coverage will be based upon the insured's correct age.
Termination - Coverage under the rider will terminate on the first to occur of:
o the end of the grace period of a required premium in default; or
o the termination or maturity of the policy except as provided in the
Paid-Up Term Insurance provision; or
o the day before the policy anniversary nearest the insured's age 65; or
o the last day of the policy month in which you request the termination.
General - The specification pages (see page 3 of the policy) will show the date
of issue of this rider.
Charges for this rider are payable as part of the monthly insurance protection
charges due under this policy. The monthly charge is shown on page 5.
Except as otherwise provided, all conditions and provisions of the policy apply
to this rider.
<PAGE>
Signed for Transamerica Occidental Life Insurance Company at Los Angeles,
California and effective on the date of issue of the policy to which this rider
is attached, unless a different date is shown here.
- -------------------------------------------------------------------------
[GRAPHIC OMITTED]
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
[GRAPHIC OMITTED]
- -------------------------------------------------------------------------
Executive Vice President, General Counsel President and CEO
and Corporate Secretary
Form TA1096-97
<PAGE>
10
<PAGE>
Form TA1097-97
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
Guaranteed Insurability Rider
This rider is a part of the policy to which it is attached if it is shown in the
specification pages of the policy. The insured under the policy is the insured
under this rider.
<PAGE>
Benefit - Subject to the terms of this rider, on each option date you may
increase the face amount of insurance without evidence of insurability if
written request is made:
during the lifetime of the insured; and
while this rider and policy are in force.
Option Dates - The first option date for this rider is shown in the
specification pages of the policy. Option dates will then occur on every second
anniversary of the first option date until the policy anniversary nearest age 40
or until the fifth option date, whichever is later.
Exercise of Increase Option - Options may be exercised on the life of the
insured not earlier than 60 days prior to, nor later than 31 days after, an
option date. The specification pages of the policy show the "option amount" and
the "total option amount". The total option amount is the maximum aggregate face
amount of insurance which may be purchased through this rider. Each time the
option to increase the face amount of insurance is exercised, the total option
amount is reduced by the amount of the insurance purchased. The face amount
which may be purchased at one time may not exceed the option amount or, if less,
the total option amount remaining. The increased face amount may not be less
than $10,000.
The insurance protection charges for the increased face amount will be
calculated in the same manner as the charges for other increases in the face
amount. The guaranteed insurance protection charges will not exceed the
guaranteed charges in effect on the date of issue of this rider.
Supplemental specification pages will be issued. They will include the following
information:
the effective date of the increased face amount;
the amount of the increase; and
the surrender charge.
The supplemental specification pages will also show a new minimum monthly
payment and new guideline premiums which will apply to the entire policy. There
is no administrative charge for the exercise of this option.
If the surrender value on the date of issue of an increase is less than the
insurance protection charges due on the policy you must pay the grace period
premium to us. The effective date of the increase in face amount will be the
monthly processing date following the date of the written request. If the
insured dies after the date of the written request and before the increased face
amount takes effect, we will refund any premium paid to exercise this option.
The time periods in the suicide and incontestable clauses for the increased face
amount will be measured from the date of issue of this rider.
Waiver of Payments - If this policy contains a waiver of payment rider on the
effective date of the increased face amount, the waiver of payment benefit may
be increased without evidence of insurability. If waiver of payment benefits are
being paid on the increase date, the increased benefit will become payable on
the increase date.
If on the effective date of an increase the waiver of payment benefit is
designated in the specification pages as the monthly insurance protection
charges, this benefit will be increased by the insurance protection charges for
the increased face amount.
If the waiver of payment benefit on an increase date is shown in the
specification pages as a dollar amount, this benefit will be increased by the
smaller of:
the waiver of payment benefit on the option date minus 1/12 of the sum of
the payments made by you over the last 12 months; or the amount shown in
the waiver of payment benefit table.
- ------------------------------------------------------
Waiver of Payment Benefit Table
- ------------------------------------------------------
- --------------- --------------------------------------
Monthly Benefit
Attained Increase Per $1,000
Ages Face Amount Increased:*
- --------------- --------------------------------------
- --------------- --------------------------------------
18-19 $ .50
20-29 .63
30-39 1.00
40-49 1.50
50-54 2.00
55-59 2.75
- --------------- --------------------------------------
- ------------------------------------------------------
*In no event may the waiver of payment benefit be
increased to exceed the monthly equivalent of your
periodic payment.
- ------------------------------------------------------
Incontestability - Except for fraud or failure to pay the monthly insurance
protection charges, this rider cannot be contested after it has been in force
for two years from its date of issue.
Termination - This rider will terminate on the first to occur of:
the end of the grace period of a premium in default; or
the end of the policy month following a request for termination; or
the last option date; or
the date of issue of an increase which, when added to the sum of all prior
increases under this rider, reduces the total option amount remaining to
less than $10,000.
General - The specification pages (see page 3 of the policy) will show for this
rider:
the date of issue;
the first option date;
the option amount; and
the total option amount.
Except as otherwise provided, any additional benefits or riders will not be
added or increased without our prior consent.
Reinstatement of this rider will not revive any option date which occurred
during the period of lapse.
Charges for this rider are payable as a part of the monthly insurance protection
charges due under this policy. The monthly insurance protection charge for this
rider is shown on page 5 of the policy.
Except as otherwise provided, all conditions and provisions of the policy apply
to this rider.
<PAGE>
Signed for Transamerica Occidental Life Insurance Company at Los Angeles,
California and effective on the date of issue of the policy to which this rider
is attached, unless a different date is shown here.
- ---------------------------------------------------
[GRAPHIC OMITTED]
- ---------------------------------------------------
- ---------------------------------------------------
[GRAPHIC OMITTED]
- ---------------------------------------------------
Executive Vice President, General Counsel President and CEO
and Corporate Secretary
11
<PAGE>
1
Form TA1093-97
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
Option To Accelerate Death Benefits
(Living Benefits Rider)
This rider is a part of the policy to which it is attached. The insured under
this rider is the insured under the policy. This rider does not apply to any
benefits provided by other riders under this policy.
<PAGE>
Benefit - While this rider is in force, you may elect to receive a portion of
the net death benefit called the "living benefit," prior to the insured's death
under this option subject to the definitions, conditions and limitations in this
rider. This option may only be exercised once.
Definitions - "Option amount" means that portion of the death benefit which you
elect to apply under this option. The option amount must be at least $25,000 and
may not exceed the least of:
one-half of the death benefit on the date the option is elected; or
the amount that would reduce the face amount to our minimum issue limit
for this policy; or
$250,000.
"Option percentage" is the option amount divided by the death benefit.
"Living benefit" is the option amount which has been reduced for interest and
other factors. It is equal to the lump sum benefit under this rider, and is the
amount used to determine the monthly benefit. The living benefit will not be
less than the surrender value of the policy multiplied by the option percentage.
The following factors will be used to calculate the living benefit:
age;
sex, unless the policy is issued on a unisex basis;
life expectancy;
policy value;
outstanding loan;
rate of interest currently being credited to the Fixed Account including
those values which are subject to outstanding loan;
face amount;
death benefit option;
current cost of insurance rates; and
an expense charge of $150.
An amount equal to the outstanding loan multiplied by the option percentage will
be deducted from the living benefit. The remaining outstanding loan will
continue in force.
The assumptions we use to calculate the living benefit may change from time to
time. The factors used to compute the living benefit will be set and changed
only prospectively; that is, based on changes in future expectations. We will
not change these factors to recoup any prior losses or distribute past gains
under the rider.
"Proof of claim satisfactory to us" shall include:
a request signed by the insured and owner to disclose all facts
concerning the insured's health;
records of the attending physician, including a prognosis of the insured;
and
if we request, a medical examination of the insured at our expense
conducted by a physician we choose.
Conditions - Upon written request you may elect to receive payment under the
accelerated death benefit option subject to the following conditions:
the policy is in force;
a written consent has been given by any collateral assignee, irrevocable
beneficiary and the insured if you are not the insured; if the policy was
delivered in a community property state, we may require your spouse to
sign the consent; and
the insured qualifies for the option.
Exercising the Option - If you provide proof of claim and a certification of a
qualified physician satisfactory to us that the insured has an illness or
physical condition which can reasonably be expected to result in death in 12
months or less, you may elect to receive the living benefit in equal monthly
payments for 12 months. For each $1,000 of living benefit, each payment will be
at least $85.21. This assumes an annual interest rate of 5%.
If the insured dies before all the payments have been made, we will pay the
beneficiary in one sum the present value of the remaining payments due under
this rider calculated at the interest rate we use to determine those payments.
<PAGE>
If you do not wish to receive monthly payments, you may elect to receive the
living benefit in a lump sum.
Effect on Policy - The policy's death benefit will be decreased by the option
amount. Such decrease will be effective on the monthly processing date following
the date of the written request.
Existing insurance will be decreased or eliminated in the following order:
first, the most recent increase;
second, the next most recent increases successively; and
last, the initial face amount.
Any surrender charge applicable to the decrease in the face amount will be
waived. The amount of the charge which is waived will be:
the surrender charge applicable to any increased face amount which is
eliminated in the order set forth above; plus
a pro rata share of the surrender charge applicable to a partial
reduction in an increase or in the original face amount.
New specification pages will be issued. These pages will include the following
information:
the effective date of the decrease;
the amount of the decrease and the benefit remaining in force;
the revised surrender charge;
the revised minimum monthly payment, if any; and
the new guideline premiums.
The policy value will be reduced in the same proportion as the reduction in the
death benefit. Riders will continue in force.
Exclusion - No benefit will be paid under this rider if a claim results,
directly or indirectly, from a suicide attempt or a self-inflicted injury (while
sane or insane) for any period during which a suicide exclusion is applicable.
Termination - This rider will terminate on the first to occur of:
the date the living benefit is paid or the first monthly installment of
the living benefit is paid; or
the end of the grace period of a premium in default; or
the termination or maturity of the policy while the insured is alive; or
at any time on your written request.
General - The specification pages (see page 3 of the policy) will show the date
of issue of this rider.
The living benefit will be made available to you on a voluntary basis only.
Accordingly:
(a) If you are required by law to exercise this option to satisfy the claim of
creditors, whether in bankruptcy or otherwise, you are not eligible for this
benefit.
(b) If you are required by a government agency to exercise this option in order
to apply for, obtain, or retain a government benefit or entitlement, you are not
eligible for this benefit.
Except as otherwise provided, all conditions and provisions of the policy apply
to this rider.
TAX QUALIFICATION: This rider is intended to provide a qualified accelerated
death benefit that is excludable from gross income for federal income tax
purposes. To that end, the provisions of this rider and the policy are to be
interpreted to ensure or maintain such tax qualification, notwithstanding any
other provisions to the contrary. Whether any tax liability may be incurred when
benefits are paid under this rider could depend on whether the owner is also the
insured and on how the Internal Revenue Service interprets applicable provisions
of the Internal Revenue Code. As with any tax matter, the owner and any other
recipient of this benefit should each consult his own tax advisor to evaluate
any tax impact of this benefit.
<PAGE>
Signed for Transamerica Occidental Life Insurance Company at Los Angeles,
California and effective on the date of issue of the policy to which this rider
is attached, unless a different date is shown here.
- --------------------------------------------------------
[GRAPHIC OMITTED]
- --------------------------------------------------------
- --------------------------------------------------------
[GRAPHIC OMITTED]
- --------------------------------------------------------
Executive Vice President, General Counsel President and CEO
and Corporate Secretary
<PAGE>
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
CHILDREN'S INSURANCE RIDER
This rider is part of the policy to which it is attached if it is shown in the
specification pages. The insured under the policy is the insured under this
rider. "Insured Child" is defined below.
Benefit
Benefit - The Company will pay the children's insurance benefit upon receipt of
due proof that an Insured Child died while this rider was in force. The amount
of the children's insurance benefit is shown in the specification pages. Unless
requested otherwise, the beneficiary under this rider is the owner.
Insured Child Description - "Acquired" means born, legally adopted or attained
the status of stepchild.
"Insured Child" means an acquired child of the insured who:
o is named in the application for this rider and on the date
of the application has not reached his or her 18th
birthday; or
o is acquired during the insured's lifetime after the date of the application
but before such child's 18th birthday.
No child can be an Insured Child while under the age of 14 days. A person will
cease to be an Insured Child on the policy anniversary nearest the earlier of
the Insured Child's 25th birthday and/or the insured's 65th birthday.
Period of Term Insurance - The term insurance on each Insured Child will begin
on the date of coverage under this rider if the child is an Insured Child on
such date; otherwise the term insurance will begin on the date the Insured Child
is acquired and is 14 days old. The term insurance will expire on the date the
child ceases to be an Insured Child.
Paid-Up Term Insurance - If the insured dies while this rider
is in force, the term insurance in force on each Insured Child
will be converted to paid-up term insurance. The paid-up term
insurance on each child will terminate on the date the child
ceases to be an Insured Child. This rider may be surrendered
at any time while the paid-up term insurance is in force for its
net reserve on the date of surrender. However, if this rider is
surrendered within 30 days after a policy anniversary, the
value will not be less than the net reserve on such anniversary.
We will furnish a statement of the values for this rider upon request.
-------------------------------
Conversion -------------------------------
Conversion - You may convert the insurance on the life of an Insured Child if
such request is made:
o within 60 days before the term insurance on the life of an
Insured Child expires;
o during the Insured Child's lifetime; and
o while the rider is in force.
You may convert to a new policy issued by Transamerica
Occidental Life Insurance Company. Evidence of insurability
will not be required.
New Policy Description - The new policy will be issued:
o on any form of individual life insurance, other than term,
being issued by us on the date of issue of the new policy;
o on the life of the Insured Child only; and
o at the Insured Child's age and for the premium rates in
effect on the date of issue of the new policy.
(Over)
Form TA1096-97
<PAGE>
-------------------------------
Conversion (continued)
-------------------------------
The sum insured may not be less than our minimum issue limit for the new policy.
The sum insured may be up to 5 times the amount of insurance under this rider on
the Insured Child. The new policy will not become binding unless the first
premium is paid during the lifetime of the Insured Child and within 31 days
after the expiration of the term insurance under this rider.
The date of issue of the new policy will be the day after the expiration of the
term insurance under this rider.
The new policy will be subject to any assignments outstanding against this
rider. Riders will be available on the new policy subject to evidence of
insurability and consent of the Company. The time periods of the suicide and
incontestability provisions of the new policy will expire on the same date as
such provision in this rider would have expired.
General
Incontestability - Except for fraud or failure to pay the charges, this rider
cannot be contested after it has been in force, during the insured's lifetime,
for two years from its date of issue. The insurance on any Insured Child named
in the application cannot be contested after it has been in force, during the
Insured Child's lifetime, for two years from the date of issue of this rider.
Misstatement of Age - If the age of a child has been misstated and if the child
would not have been an Insured Child upon his or her death if the age had been
correctly stated, no benefit will be payable if the child dies. Any benefit paid
to the beneficiary because of the death of such child shall be repaid to the
Company. If the age of the insured has been misstated, the termination date of
the Insured Child's coverage will be based upon the insured's correct age.
Termination - Coverage under the rider will terminate on the first to occur of:
o the end of the grace period of a required premium in
default; or
o the termination or maturity of the policy except as
provided in the Paid-Up Term Insurance provision; or
o the day before the policy anniversary nearest the insured's
age 65; or
o the last day of the policy month in which you request the
termination.
General - The specification pages (see page 3 of the policy) will show the date
of issue of this rider.
Charges for this rider are payable as part of the monthly
insurance protection charges due under this policy. The
monthly charge is shown on page 5.
Except as otherwise provided, all conditions and provisions of the policy apply
to this rider.
Signed for Transamerica Occidental Life Insurance Company at Los Angeles,
California and effective on the date of issue of the policy to which this rider
is attached, unless a different date is shown here.
[GRAPHIC OMITTED]
[GRAPHIC OMITTED]
Executive Vice President, General Counsel President and CEO
and Corporate Secretary
Form TA1096-97
<PAGE>
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
-------------------------------
Waiver of Payment Rider ---------------------------------
This rider is part of the policy to which it is attached if it is shown in the
specification pages of the policy. The insured
under the policy is the insured under this rider.
Benefit - On each monthly processing date, while the insured is totally
disabled, we will add to the policy value the waiver of payment benefit. This
benefit is the largest of:
o the amount shown in the specification pages; or
o the minimum monthly payment for the face amount covered by this rider during
a period when the minimum monthly payment applies; or
o the monthly insurance protection charges applicable to the face amounts and
other riders covered by this rider.
The waiver of payment benefit is subject to:
o our receipt of due proof of such total disability; and
o evidence the total disability:
o began while this rider was in force; and
o began before the policy anniversary nearest
insured's age 65; and
o has continued for at least 4 months; and
o the other terms and conditions of this rider.
The benefit will begin with the policy month following the date total disability
begins or the policy anniversary nearest the insured's age 5, if later. The
benefit will not be provided for any period more than one year prior to the date
we received written notice of claim. We will credit the policy value with any
benefit which applies to the time during which benefits are payable.
Each monthly benefit will be allocated in accordance with the payment allocation
in effect on the date each benefit is credited to the policy value.
If the insured's total disability occurs before the policy anniversary nearest
the insured's age 60, the benefit will end when total disability ends. If the
total disability occurs on or after the policy anniversary nearest the insured's
age 60, the benefit will continue during such total disability but not beyond
the policy anniversary nearest the insured's age 65 or two years, whichever is
longer.
Benefits will cease on the next monthly processing date following the end of a
period of total disability.
Definitions of Total Disability - Total disability means the insured is unable
to engage in any occupation as a result of disease or bodily injury.
"Occupation" means attendance at school if the insured is not old enough to
legally end his or her formal education. Otherwise "occupation" means any
occupation for which the insured is or becomes reasonably fitted by training,
education or experience.
Total loss of the following as a result of disease or bodily injury shall be
deemed total disability:
o speech
o hearing in both ears; or
o the sight of both eyes; or
o the use of both hands; or
o the use of both feet; or
o the use of one hand and one foot.
Risks Not Covered - No benefit will be provided if total disability results,
directly or indirectly, from:
o an act of war, whether such war is declared or
undeclared, and the insured is a member of the armed
forces of a country or combination of countries; or
o any bodily injury occurring or disease first manifesting itself prior to the
date of issue of this rider. However, no claim for total disability
commencing after two years from the date of issue will be denied on the
ground that the disease or impairment not excluded from coverage by name or
specific description existed prior to the date of issue of this rider.
(over)
Form TA1094-97
<PAGE>
Notice and Proof of Claim - Written notice of claim must be sent to our Variable
Life Service Center:
o during the lifetime of the insured; and
o while the insured is totally disabled; and
o not later than 12 months after this rider terminates.
Proof of claim must be sent to our Variable Life Service Center within 6 months
of the notice of claim. Failure to give notice and proof within the time
required will not void or reduce any claim if it can be shown that notice and
proof were given as soon as was reasonably possible.
Proof of continued total disability must be furnished at our request. Failure to
do so will end the benefit. Such proof will include an authorization to disclose
facts concerning the insured's health, and may include medical exams of the
insured conducted by physicians chosen by us. Such medical exams will be at our
expense. After total disability has continued for 24 months, proof will not be
required more than once a year, nor after the policy anniversary nearest age 65.
Benefit Changes - The benefit may be changed on written request. An increase
will only be allowed if the insured is under age 60 and we receive:
o evidence of insurability that is satisfactory to us; and
o payment to us of the premium sufficient to keep the policy in force if the
surrender value is less than all charges due on the policy.
No increase, when added to the existing benefit, shall exceed the following
limits:
Maximum Benefit Table
Monthly Benefit
Attained Per $1,000
Age Face Amount
0-19 $1.00
20-29 1.25
30-39 2.00
40-49 3.00
50-54 4.00
55 and above 5.50
The waiver of payment benefit will be reduced if it exceeds the maximum benefit
after the face amount of the policy is reduced. The monthly benefit may not
exceed the amount shown in the Maximum Benefit Table.
The effective date of the changed benefit will be the first monthly processing
date on or after the date all conditions are met. The changed benefit will be
shown in supplementary specification pages. The charges for an increased benefit
will be shown in a Supplemental Insurance Protection Charge Table if the
insured's underwriting class changes.
Incontestability - Except for fraud or failure to pay the monthly insurance
protection charges, this rider cannot be contested after the end of the
following time periods:
o the initial benefit cannot be contested after the rider has been in force
during the insured's lifetime and without the occurrence of the total
disability of the insured for two years from the date of issue; and
o an increase in the benefit cannot be contested after the increased benefit
has been in force during the insured's lifetime and without the occurrence
of the total disability of the insured for two years from its effective
date.
Termination - This rider will terminate on the first to occur of:
o the end of the grace period of a premium in default; or
o the termination or maturity of the policy; or
o the day before the policy anniversary nearest age 65,
except as provided in the Benefit provision; or
o the end of the policy month following a request for
termination.
Rider Charge - Charges for this rider are paid as a part of the monthly
insurance protection charges due under the policy.
The monthly charge is the waiver charge shown in the
Insurance Protection Charge Table multiplied by the
greater of:
o the monthly insurance protection charges applicable
to the face amount and other riders covered by this
rider; or
o one-half of the waiver of payment benefit shown in the
specification pages.
Form TA1094-97
<PAGE>
General - The specification pages (see page 3 of the policy) will show the date
of issue of this rider.
When an increase in face amount or an additional rider is applied for, waiver of
payment coverage must also be requested. We reserve the right to decline
issuance of the waiver of payment coverage for the increased face amount or
additional rider benefit. If total disability begins during the grace period of
a past due premium, such a premium will be payable.
The waiver of payment benefit will not reduce any amount payable under the
policy.
Except as otherwise provided, all conditions and provisions of the policy apply
to this rider.
Signed for Transamerica Occidental Life Insurance Company at Los Angeles,
California and effective on the date of issue of the policy to which this rider
is attached, unless a different date is shown here.
[GRAPHIC OMITTED]
[GRAPHIC OMITTED]
Executive Vice President, General Counsel President and CEO
and Corporate Secretary
Form TA1094-97
<PAGE>
Exhibit 1(10) Form of Application
Variable Life Application
Transamerica Occidental Life Insurance Company
Home Office, Los Angeles, CA
Variable Life Service Center
440 Lincoln Street
P.O. Box 3800
Worcester, MA 01653
1 Proposed Insured the person upon whose life this insurance coverage is
proposed
First Name Middle Last
Street Address years at this Address
City State Zip
Daytime Telephone Number
Date of Birth: M/ D/ Y/ Sex: M F
Social Security Number/Tax I.D. Number
Driver's License Number
2 Payment the monetary contribution to the policy
Check one
I have enclosed a check for my initial payment of $_____ ($100 minimum) and have
received a conditional receipt. (Please make check payable to Transamerica
Occidental Life Insurance Company.)
My initial payment will be transferred from another insurance company.
Approximate amount $___
Name of transferring company
My Transfer of Assets form is attached yes
My Transfer of Assets form has been sent to
the transferring company. Yes
2a I want to make future payment of $
Annually Semi-Annually Quarterly
Monthly (I have included a voided check and Bank Drafting Form.)
3 proposed Policy owner the person or entity exercising the policy's contractual
rights.
The policy owner is also referred to as "I" or "Me". The insured will be the
policy owner unless a different person or entity is specified here.
Name
Street Address
City State Zip
Social Security Number/Tax I.D. Number
Date of Birth
Relationship to Insured.
3b Payment reminder notices will be sent to the policy owner unless specified
otherwise here:
Name
Street Address
City State Zip
4 Allocation How I want payments allocated.
Complete Section 4a and Section 4b. Future payments will be allocated according
to this selection unless changed by me.
4a. Allocate payment as follows:
Use whole percentages. If dollar cost averaging is used, please
complete a Dollar Cost Averaging Form. Payments may be allocated to no more than
7 of the 17 variable sub-accounts listed below and to the Fixed Account.
YOUR TOTAL ALLOCATION MUST EQUAL 100%
%Janus Aspen Worldwide Growth %Morgan Stanley UF International Magnum
%Dreyfus VIF Small Cap %OCC Accum Trust Small Cap %MFS VIT Emerging
Growth %Alliance VPF Premier Growth %Dreyfus VIF Capital Appreciation
%MFS VIT Research %Transamerica VIF Growth %Alger American Income &
Growth %Alliance VPF Growth & Income %MFS VIT Growth with Income %Janus
Aspen Balanced Portfolio %OCC Accum Trust Managed Portfolio %Morgan
Stanley UF High Yield %Morgan Stanley UF Fixed Income %Transamerica VIF
Money Market %Fixed Account 100 % Total
4b Deductions of all charges will be made pro rata according to the value of
each sub-account and the Fixed Account.
OR
Deduct all charges from _______________ (Enter any single sub-account; may not
be the Fixed Account)
5 Insurance How much life insurance I want
5a Policy form applied for
5b I want $ in life insurance coverage
5c I want insurance coverage to be: (Choose one)
Level - Insurance coverage remains constant.
Adjustable - Insurance coverage changes with the value of the policy
5d I want the following additional insurance benefits:
Waiver of payment upon disability
Living Benefits Rider
Children's Insurance Rider
Guaranteed Insurability Rider $
Guaranteed Death Benefit Rider
5e The application is for a standard class of risk unless noted otherwise here:
6 Beneficiary
The primary beneficiary is the person or entity who will receive the policy
proceeds. The contingent beneficiary is the person or entity who will receive
the policy proceeds should the primary beneficiary not survive the insured
Name of primary beneficiary Relationship to insured
Name of contingent beneficiary Relationship to insured
10=day common disaster clause*
_____-day Common Disaster Clause* (30 day maximum)
*A common Disaster Clause requires that the beneficiary survive the insured for
a specified length of time before becoming entitled to the policy proceeds. This
may assure that the contingent beneficiary will receive the policy proceeds
rather than the estate of the primary beneficiary.
7 Replacement of Other Contracts
7a May insurance, including annuities in any company be replaced if the proposed
policy is issued?
Yes No
IF yes, list company name and policy amount.
7b Is any application for life insurance on the proposed insured pending in any
other company?
Yes No
If yes, give company name, amount applied for, and total amount to be placed
8 Information About the Proposed Insured
8a Current Employment
Title
Industry and Duties
8b Income.
Annual earned income is $
Annual unearned income is $
Net worth is $
8c Has an illness or injury during the past six months prevented the proposed
insured from working five consecutive days?
Yes No If yes, please explain:
8d During the past two years has the proposed insured participated in or intends
to participate in:
Yes No Aeronautics (including hang-gliding, sky diving, ballooning,
etc.)?
Yes No Powered racing or competitive vehicles (Including motorcycles,
automobiles and motor boats, etc.)?
Yes No Recreational vehicles over open terrain, trails, sand, snow or ice
(including snowmobiles and dirt bikes, etc.)?
Yes No Skin or scuba diving, mountain climbing, competitive skiing?
(If yes, complete Avocation and Sports Questionnaire with dates last
participated.)
8f During the past two years has the proposed insured flown as or intends
to fly as a trainee, pilot or
crew member?
Yes No
(If yes, complete Aviation Questionnaire.)
8g Has the proposed insured used tobacco during the past 2 years?
Yes No
Cigarettes Cigars Pipes Chewing Tobacco
Other tobacco product
(Specify date last used)
8h Will the proposed insured be traveling outside of the United States or Canada
in the next two years except for purely vacation travel? Yes No If yes, give
destination, length of stay, and number of trips per year.
Transamerica Occidental Life
Transamerica Occidental Life Insurance Company
Home Office: Los Angeles, CA
Variable Life Service Center
440 Liincoln Street
P.O. Box 3800
Worcester, MA 01653
Authorization to Obtain Information
Name of Proposed Insured
Authorization To Obtain Information
To all physicians, medical professionals, hospitals, clinics, other health care
providers, employers, Medical Information Bureau, Inc. (MIB), consumer reporting
agencies, other insurance support organizations, the United States Internal
Revenue Service, the Puerto Rico Bureau of Income Tax, and other persons who
have the types of information described below about the proposed insured:
I authorize you to give Transamerica Occidental Life Insurance Company
("Company"), its reinsurers, or its agent; (a) all information you have as to
illness, injury, medical history, diagnosis, treatment, and prognosis (including
any drug or alcohol abuse condition or treatment or any HIV related test results
or disorders, or other dread disease) with respect to any physical or mental
condition of the proposed insured; and (b) any non-medical information,
including but not limited to, an investigative consumer report, which the
Company believes it needs to perform the business functions described below. I
also authorize the Company to give MIB health or non-medical information it has
about me and that of any minor member of my family aplying for insurance.
The information obtained will be used to determine if the proposed insured is
eligible for: (a) the insurance requested; or (b) benefits under a policy which
is in force. It will also be used for any other business purpose which relates
to the insurance requested or the policy which is in force. This authorization
will be valid for 30 months. I know that under Federal Regulations, I may revoke
this authorization as it applies to drug or alcohol abuse treatment at any time;
but my revocation will not affect any information that has been released prior
thereto. I know that I may request a copy of this form. I agree that a photocopy
is as valid as the original. I have received the Insurance Information Practices
notice.
Signature of Proposed Insured
(if proposed insured is a minor, signature of legal guardian) Signature of
Proposed Owner (if other than proposed insured) Date
Name of Minor Child if to Be Covered
Name of Minor Child if to Be Covered
Personal History Interview Information
Proposed Insured's Professional Title
Application For
Adust Juvenile Amount $
Home Telephone: (Area Code) and No.
Business Telephone: (Area Code) and No.
Driver's License Information
No. State
Transamerica Occidental Life may be contacting you to discuss this application.
The best time for us to call you
is at (Eastern Time):
Home Business
1st Choice
2nd Choice
Broker Dealer Firm
Registered Representative
Form Home Office use Only
Date Received in P.H.I. Unit
Attempts to Call
Date/Time Date/Time
Date/Time Date/Time
Date/Time Date/Time
Date Call Completed Time AM PM
Remarks
9 TELEPHONE ACCESS
I will automatically be able to transfer sub-account and or Fixed Account values
and change the allocation of future investments by telephone or fax unless I
check the blx below.
I do not accept this Telephone Access privilege.
(Please see additional information in the fourth paragraph of the section
below.)
ACKNOWLEDGEMENTS AND SIGNATURES
I acknowledge receipt of current Prospectuses describing the Transamerica
Occidental Life Insurance Company ("Company") policy I am applying for, and the
underlying Funds.
I (or "We" if propsoed policy owner and proposed insured are not the same)
understand that any death benefits in excess of the face amount and any policy
value of the flexible premium variable life insurance policy applied for, may
increase or decrease to reflect the investment experience of the sub-accounts of
the variable account. The policy value allocated to the Fixed Account will
accumulate interest at a rate set by the Company which will not be less than the
minimum guaranteed rate of 4% annually. There is no guaranteed minimum policy
value. The policy value may decrease to the point where the policy will lapse
and provide no further death benefit without additional premium payments.
It is agreed that: (1) The application consists of this application form, the
medical questionnaire and the supplemental applications to apply for insurance
on family members, if it applies; (2) The representations are true and complete
to the best of my (our) knowledge and belief; (3) Except as provided in the
conditional receipt if issued with the same number as this application, no
liability exists and the insurance applied for will not take effect until the
policy is delivered and the premium is paid during the lifetime of the proposed
insured(s) and then only if the proposed insured(s) has (have) not consulted or
been treated by any physician or practitioner of any healing art nor had any
tests listed in the application since its completion; and (4) No registered
representative or broker is authorized to amend, alter, or modify the terms of
this agreement.
Unless I did not accept the Telephone Access privilege in section 9 above, I
understand that Transamerica Occidental Lfie Insurance Company is authorized to
honor telephone requests by me, or by individuals authorized by me, to transfer
values among sub-accounts and to change the allocation of my future payments. I
also understand that the withdrawal of funds from my policy cannot be transacted
by telephone or fax instructions.
I (We) understand that omissions or misstatements in the application could cause
an otherwise valid claim to be denied under any policy issued from the
application.
Signed at City State
Signature of Proposed Insured Date
Signature of Owner (if other than Proposed Insured) Date
Signed at City State
If the owner is a corporation, an authorized officer, other than the proposed
insured, must sign as policy
owner. Give corporate title and full name of corporation.
Corporate Title
Name of Corporation
FOR FINANCIAL ADVISERUSE ONLY
Does the policy appleid for replace any existing annuity or life insurance
policy?
Yes No
If yes, attach replacement forms as required.
as Registered Representative, I certify sitnessing the signature of the
applicant and that the information in this application has been accurately
recorded, to the best of my knowledge and belief. Based on the information
furnished by the proposed owner or proposed isnured in this application, I
certify that I have reasonable grounds for believing the purchase of the policy
applied for is suitable for the owner. I further certify that the Prospectuses
were delivered and that no written sales materials other than those furnished or
approved by the Company were used. Signature of Registered Representative Date
Print Name of Registered Representative REG REP # Telephone Fax Signature of
Registered Representative Date Print Name of Registered Representative REG REP #
Signature of Registered Representative Date
print Name of Registered Representative REG REP #
Name of Broker/Dealer Branch #
Branch Office Street Address
City State Zip
Remarks
FOR HOME OFFICE USE ONLY
6
